The Joint Corp. Reports 9% Growth in System-Wide Sales for Fiscal Year 2024

The Joint Corp. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with system-wide sales reaching $530.3 million, up from $488 million in 2023, marking a 9% growth. The company also recorded over 14.7 million patient visits, an increase from 13.6 million the previous year. However, despite these gains, The Joint experienced a net loss of $8.5 million, compared to a loss of $9.8 million in 2023. The losses were attributed to rising operational costs, including a 25.7% increase in selling and marketing expenses, which rose to $10.9 million, and a 13.7% increase in general and administrative expenses, totaling $29.8 million.

The company has undergone strategic changes, including a shift towards a pure-play franchisor model, divesting from company-owned clinics. In 2024, The Joint sold five clinics and received letters of intent for the majority of its company-owned clinics, which are expected to be sold in clusters to larger operators. This refranchising strategy aims to enhance brand equity and streamline operations, allowing the company to focus on supporting its franchise network. As of December 31, 2024, The Joint operated 967 clinics, with 842 being franchised, and had sold 92 additional franchise licenses.

Operationally, The Joint reported an average of 992 new patients per clinic, significantly higher than the industry average of 468 for traditional practices. The company’s clinics are strategically located in retail centers, providing convenient access to patients. The average price per adjustment was approximately $36, which is about 52% lower than the industry average, contributing to increased patient engagement and retention. The company also noted that 36% of new patients in 2024 were first-time chiropractic users, indicating a successful expansion of the chiropractic market.

Looking ahead, The Joint anticipates continued growth despite potential economic challenges, including inflation and labor shortages. The company plans to leverage its existing cash reserves and anticipated cash flows to support its operations and expansion efforts. Management expressed confidence in the long-term viability of its business model, which focuses on affordable, non-insurance-based chiropractic care, and aims to capture a larger share of the growing wellness market. The company expects to navigate the volatile macroeconomic environment while pursuing its strategic objectives.