The Joint Corp. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023. Total revenues for the third quarter increased to $30.2 million, a 2.5% rise from $29.5 million in Q3 2023. For the nine months, revenues reached $90.2 million, up 3.6% from $87.1 million in the prior year. The growth was primarily driven by a 10% increase in royalty fees, which amounted to $23.3 million for the nine months, compared to $21.2 million in 2023.

Despite the revenue growth, the company reported a net loss of $3.2 million for Q3 2024, significantly higher than the loss of $716,273 in Q3 2023. For the nine months, the net loss was $5.8 million, a stark contrast to the net income of $1.3 million reported in the same period last year. The increase in losses was attributed to higher operating expenses, including a $1.5 million litigation expense and increased payroll costs.

The Corporate Clinics segment experienced a decline in revenue, generating $17.5 million in Q3 2024, down from $17.9 million in Q3 2023, while the Franchise Operations segment saw an increase in revenue to $12.7 million from $11.6 million. The overall operating loss for the Corporate Clinics segment widened to $2.7 million, compared to a loss of $931,366 in the prior year.

Total assets decreased to $79.6 million as of September 30, 2024, from $87.2 million at the end of 2023, while total liabilities also fell to $59.1 million from $62.4 million. The company’s cash and cash equivalents increased to $20.7 million, up from $18.2 million at the end of 2023.

Strategically, The Joint Corp. has initiated a re-franchising plan for its corporate-owned clinics, with approximately 60% expected to close within a year. The company also acquired three franchised clinics in California for $1.2 million in May 2023. Additionally, the company is focusing on expanding its franchise operations, with the number of franchised clinics increasing to 838 from 778 year-over-year.

Leadership changes included the resignation of CEO Peter D. Holt on October 10, 2024, and the appointment of Sanjiv Razdan as the new President and CEO on October 14, 2024. The company has also accrued $0.9 million for potential settlement costs related to ongoing litigation.