The Joint Corp. (JYNT) shares have declined 4.2% since the company reported first-quarter 2025 results on May 8. Its weaker-than-expected earnings were caused by increased expenses under different heads, partially offset by higher system-wide sales.JYNT reported an adjusted loss of 3 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the bottom line remained stable year over year.Revenues increased 7% year over year to $13.1 million. The top line surpassed the ...

Five Point Holdings, LLC (NYSE: FPH ) is a deep value play poised for a re-rating as the market misjudges the long-term monetization potential of its California land bank and underestimates the gains from itsAn economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the co ...

Core Viewpoint - ThreeD Capital Inc. has entered into a Joint Operating Agreement with its CEO Sheldon Inwentash to monetize complementary digital assets, specifically HyperCycle tokens and masternodes, aiming to generate income through the HyperCycle decentralized AI computation ecosystem [1][2]. Group 1: Agreement Details - The Joint Operating Agreement involves ThreeD contributing 6,291,456 HyperCycle tokens valued at approximately $550,000 USD, while Mr. Inwentash contributes 12 HyperCycle masternodes of equal value [2]. - Each party retains beneficial ownership of their contributed assets, with ThreeD maintaining control of the HyperCycle tokens and Mr. Inwentash retaining ownership of the masternodes, which will be temporarily managed by ThreeD for operational purposes [3]. - Revenues and expenses from the Joint Operation will be shared equally (50/50) between ThreeD and Mr. Inwentash, with an income cap of $2,000,000 CAD, at which point the operation will terminate and assets will be returned [4]. Group 2: Regulatory and Compliance Aspects - The transaction is classified as a related party transaction under Multilateral Instrument 61-101, with exemptions from formal valuation and minority approval requirements due to the transaction's value being below 25% of the Company's market capitalization [5]. - The transaction is subject to approval from the Canadian Securities Exchange [6]. Group 3: Company Overview - ThreeD Capital Inc. is a publicly-traded Canadian venture capital firm focused on opportunistic investments in junior resources and disruptive technologies, aiming to invest in early-stage companies globally [7].

分组1 - The Joint Corp. reported a quarterly loss of $0.03 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, and a decline from earnings of $0.06 per share a year ago, representing an earnings surprise of -50% [1] - The company posted revenues of $13.08 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.53%, but down from $29.72 million in the same quarter last year [2] - The Joint has not surpassed consensus EPS estimates over the last four quarters, although it has topped consensus revenue estimates three times during that period [2] 分组2 - The stock has underperformed the market, losing about 6.5% since the beginning of the year compared to the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $13.66 million, and for the current fiscal year, it is $0.13 on revenues of $57.48 million [7] - The Medical - HMOs industry, to which The Joint belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue and Income - Total revenues for the three months ended March 31, 2025, were $13,077,590, an increase of 7.3% from $12,184,716 in the same period of 2024[17] - The company reported a net loss from continuing operations of $506,021, compared to a loss of $398,919 in the prior year[17] - Net income for Q1 2025 was $801,430, a decrease of 15.3% compared to $946,979 in Q1 2024[21] - The net income from discontinued operations was $1,307,451, slightly down from $1,345,898 in the same quarter of 2024[17] - The Franchise Operations segment generated total revenue of $13,077,590, an increase of 7.3% from $12,184,716 in the same period of 2024[118] - The Franchise Operations segment reported a segment loss of $506,021 for the three months ended March 31, 2025, compared to a loss of $398,919 in the prior year[118] Expenses - Selling and marketing expenses increased to $3,505,150, compared to $2,237,583 in the previous year, indicating a rise of 57.0%[17] - Stock-based compensation expense for Q1 2025 was $293,941, down from $493,395 in Q1 2024, indicating a reduction of 40.4%[21] - Adjusted General and administrative expenses for the Franchise Operations segment were $6,553,920, a decrease of 3.9% from $6,817,913 in the same period of 2024[118] - The company incurred selling and marketing expenses of $3,505,150, which is a significant increase of 56.8% from $2,237,583 in the same period of 2024[118] Assets and Liabilities - The total liabilities and stockholders' equity amounted to $77,193,993, a decrease from $80,421,458[14] - Cash and cash equivalents at the end of Q1 2025 were $21,918,175, compared to $18,742,884 at the end of Q1 2024, representing a year-over-year increase of 16.1%[21] - The carrying value of assets held for sale as of March 31, 2025, was $34,267,130, down from $36,071,975 as of December 31, 2024[87] - Total assets of discontinued operations as of March 31, 2025, were $37,178,393, down from $40,827,044 as of December 31, 2024[84] - Total liabilities of discontinued operations as of March 31, 2025, were $32,752,879, a decrease from $37,714,200 as of December 31, 2024[84] Clinic Operations - Total clinics in operation increased to 969 by the end of Q1 2025, up from 954 in Q1 2024, reflecting a net increase of 15 clinics[30] - The number of franchised clinics increased to 847 at the end of Q1 2025, up from 819 at the end of Q1 2024, marking a growth of 3.4%[30] - The company had 94 clinic licenses sold but not yet developed as of Q1 2025, down from 117 in Q1 2024, a decrease of 19.7%[30] - The company has transitioned to a single reportable segment, Franchise Operations, following the discontinuation of the Corporate Clinics segment as of December 31, 2024[115] Future Outlook and Strategy - The company plans to continue its rapid expansion of chiropractic clinics in North America and potentially abroad, aiming to become the leading provider in the industry[9] - The company expects 2025 to be a volatile macroeconomic environment, influenced by factors such as inflation and labor shortages[9] - The anticipated cash flows from operations and available credit are expected to be sufficient to fund operating and investment needs for at least the next 12 months[10] - The company is focusing on refranchising its company-owned clinics to leverage its franchise-building capacity for long-term growth[9] Performance Metrics - The company utilizes Net Income, Gross Profit, Operating Income, and Adjusted EBITDA as key performance metrics for resource allocation decisions[117] - The weighted average common shares outstanding increased to 15,186,420 in 2025 from 14,801,354 in 2024, reflecting a growth of approximately 2.6%[62] - The company recognized a basic net income per share of $0.05 for the three months ended March 31, 2025, down from $0.06 in 2024[62] Miscellaneous - The company accrued a settlement of $3.4 million related to a medical injury claim, which was paid in full during the first quarter of 2025[113] - The Company recorded a net loss on disposition or impairment related to discontinued operations of $1,299,723 for the three months ended March 31, 2025, compared to $361,828 for the same period in 2024[48] - The Company recorded an estimated loss on disposal of $1.1 million for the three months ended March 31, 2025, compared to $0.2 million for the same period in 2024[85] - As of March 31, 2025, Mr. Jefferson Gramm holds approximately 26% of the company's outstanding common stock[119]

Financial Data and Key Metrics Changes - System wide sales for Q1 2025 were $132.6 million, up 5% compared to Q1 2024, indicating resilience in the current economic environment [10] - Revenue from continuing operations increased by 7% to $13.1 million compared to $12.2 million in Q1 2024 [29] - Adjusted EBITDA from continuing operations was $46,000, a significant decrease from $425,000 in Q1 2024 [10][29] - Net loss from continuing operations was $506,000, compared to a loss of $399,000 in Q1 2024 [30] Business Line Data and Key Metrics Changes - Comp sales for all clinics open for at least 13 months were up 3% for Q1 2025 and increased to 4% in March 2025 [10][24] - Comp sales for mature clinics (open for at least 48 months) were down 2% [24][82] - The company refranchised two corporate clinics and opened five franchise clinics during Q1 2025, with a total of 969 clinics, of which 847 (87%) are franchise clinics [25][26] Market Data and Key Metrics Changes - The company expects system wide sales for 2025 to be between $550 million and $570 million, compared to $530.3 million in 2024 [32] - Comp sales for clinics open for 13 months or more are expected to be in the mid-single digits for 2025 [32] Company Strategy and Development Direction - The company aims to become a pure play franchisor, with 93% of corporate clinics under Letters of Intent (LOIs) for refranchising [12][51] - The strategy includes dynamic revenue management, strengthening digital marketing, and enhancing patient-facing technology [12][19][22] - The company is focusing on pain-centric messaging to attract new patients, as 74% of new patients cite pain as a reason for visiting [35][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic consumer environment and is closely monitoring the situation while pushing ahead with the transition plan [11] - The company anticipates a transformative financial impact as clinics shift from company-owned to franchise clinics, leading to increased franchise royalties and fees [34] - Economic headwinds, inflation, and volatile consumer sentiment are expected to impact the beginning of 2025, but the company remains optimistic about future profitability [34] Other Important Information - The company has welcomed new executives to enhance legal strategy and operations, aiming to improve clinic quality and economics [41] - The Joint has been recognized as one of the fastest-growing franchises and ranked in the Franchise 500 [41] Q&A Session Summary Question: New patient ad metrics and retention trends - Management noted that new patient volumes have been affected by overall consumer sentiment, but retention rates remain stable [44][46] Question: Metrics on profitability and overhead reduction - Management is not ready to provide specific metrics but expects profitability to improve as G&A expenses are reduced [47][49] Question: Timeline for refranchising process completion - Management intends to exit 2025 as a pure play franchisor and hopes to accelerate the refranchising process [51] Question: Comp sales performance and dynamics - Management did not disclose April comp sales but confirmed a return to 4% in March [57] - Franchise clinic comp performance mirrors consolidated comp, with corporate clinic comp trailing slightly [59] Question: Dynamic pricing opportunities - Management is exploring various pricing models, with potential for double-digit impacts on system wide sales [61] Question: Selling and marketing expenses normalization - Management expects selling and marketing expenses to normalize by Q3 2025 after a dual agency transition [68] Question: Strategies for mature clinics to improve comp sales - Management is implementing operational strategies and marketing tactics aimed at strengthening existing clinics [83][85]

Financial Data and Key Metrics Changes - System wide sales for Q1 2025 were $132.6 million, up 5% compared to Q1 2024, indicating resilience in the current economic environment [10] - Revenue from continuing operations increased by 7% to $13.1 million from $12.2 million in Q1 2024 [27] - Adjusted EBITDA from continuing operations was $46,000, a significant decrease from $425,000 in Q1 2024 [10][29] - Net loss from continuing operations was $506,000, compared to a loss of $399,000 in Q1 2024 [29] Business Line Data and Key Metrics Changes - Comp sales for all clinics open for at least 13 months were up 3% for Q1 2025 and increased to 4% in March 2025 [10][23] - Comp sales for mature clinics (open for at least 48 months) were down 2% [23] - The company refranchised two corporate clinics and opened five franchise clinics during Q1 2025, with a total of 969 clinics, of which 847 (87%) are franchise clinics [25] Market Data and Key Metrics Changes - The company is experiencing a dynamic consumer environment, with consumer sentiment affecting new patient volumes [11][43] - The company anticipates system wide sales for 2025 to be between $550 million and $570 million, compared to $530.3 million in 2024 [31] Company Strategy and Development Direction - The company aims to become a pure play franchisor, with 93% of corporate clinics under Letters of Intent (LOIs) for refranchising [12][49] - The focus is on strengthening core operations, reigniting growth, and improving profitability through dynamic revenue management and enhanced digital marketing strategies [12][18] - The company plans to launch a new marketing campaign centered around pain relief in the second half of the year [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of economic headwinds, inflation, and consumer sentiment on operations but remains optimistic about transitioning to a franchise model [33] - The company expects to see a transformative financial impact as corporate clinics transition to franchise royalties and fees, leading to increased profitability [33] Other Important Information - The company has welcomed new executives to enhance legal strategy and patient experience [39] - The Joint has been recognized as one of the fastest-growing franchises and ranked 37th in the Franchise 500 by Entrepreneur Magazine [40] Q&A Session Summary Question: New patient ad metrics and retention trends - Management noted that new patient volumes have been affected by consumer sentiment, but retention rates remain stable [42][44] Question: Metrics on profitability and overhead reduction - Management is not ready to provide specific metrics but expects profitability to improve as G&A expenses are reduced [45][47] Question: Timeline for refranchising process completion - Management intends to exit 2025 as a pure play franchisor and hopes to accelerate the refranchising process [49] Question: Comp sales performance and strategies for mature clinics - Comp sales for mature clinics have been consistent, and operational strategies will be geared towards strengthening these clinics [80][81] Question: Dynamic pricing impact - Management is exploring various pricing models and anticipates that pricing adjustments could significantly impact total system wide sales [60][62] Question: Selling and marketing expenses normalization - Management expects selling and marketing expenses to normalize by Q3 2025 as the transition to a single marketing agency is completed [66] Question: Cost of the franchisee spring convention - The cost of the convention was lower than previous years, impacting the sales and marketing line [75][76]

Financial Performance - Q1 2025 - Revenue from continuing operations increased by 7% to $131 million compared to $122 million in Q1 2024[33] - Cost of revenue increased by 10% to $30 million [33] - Sales and marketing expenses increased significantly by 57% to $35 million [33] - System-wide sales increased by 5% in Q1 2025 [29] - Comp sales increased by 3% in Q1 2025 [29] - Net loss from continuing operations was $(05) million [33] - Consolidated Adjusted EBITDA was $29 million [33] Liquidity and Cash Flow - Unrestricted cash was $219 million as of March 31 2025 [35] - The company has access to a $20 million line of credit through February 2027 [35, 37] - $37 million was used in operations during the quarter [38] 2025 Guidance - The company reiterates its 2025 guidance for system-wide sales between $550 million and $570 million [39] - The company anticipates mid-single-digit comp sales growth for clinics open 13 months or more [39] - Consolidated Adjusted EBITDA is expected to be between $100 million and $115 million [39]

The Joint Corp. Reports First Quarter 2025 Financial Results - Grew revenue from continuing operations 7% compared to Q1 2024 - - Increased system-wide sales 5% for Q1 2025, demonstrating economic resilience - SCOTTSDALE, Ariz., May 8, 2025 – The Joint Corp. (NASDAQ: JYNT), a national operator, manager, and franchisor of chiropractic clinics, reported its financial results for the quarter ended March 31, 2025. The results of operations of the corporate clinics business segment have been classified as discon ...

Core Insights - The Joint Corp. reported a 7% increase in revenue from continuing operations, reaching $13.1 million in Q1 2025 compared to $12.2 million in Q1 2024, driven by a greater number of franchised clinics [7][8] - System-wide sales increased by 5% to $132.6 million, indicating economic resilience [8] - The company experienced a net loss from continuing operations of $506,000, compared to a loss of $399,000 in the same quarter of the previous year [11] Financial Performance - Adjusted EBITDA for continuing operations was $46,394, down from $424,708 in Q1 2024 [12][37] - Selling and marketing expenses rose to $3.5 million from $2.2 million in Q1 2024, reflecting the costs associated with transitioning to a new marketing team [8][10] - The cost of revenue increased to $3.0 million from $2.7 million, attributed to higher regional developer royalties and commissions [7] Operational Highlights - The company sold 9 franchise licenses in Q1 2025, a decrease from 15 in Q1 2024, due to the refranchising process [9] - Five new franchised clinics were opened, while two corporate clinics were refranchised and one was closed, bringing the total clinic count to 969 [9] - The company aims to enhance its digital marketing and patient experience to drive growth in new clinic openings and system-wide sales [5] Guidance and Future Outlook - The company expects system-wide sales to be between $550 million and $570 million for 2025, compared to $530.3 million in 2024 [19] - Comp sales for clinics open for 13 months or more are projected to be in the mid-single digits, up from 4% in 2024 [19] - Consolidated Adjusted EBITDA is anticipated to be between $10.0 million and $11.5 million, compared to $11.4 million in 2024 [19]