The Joint Corp. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
The Joint Corp. (NASDAQ: JYNT) reported Q1 2026 results: revenue $14.8M (+13% YoY), consolidated net income $1.3M (+34% YoY), and adjusted EBITDA $3.5M (+22% YoY). System-wide sales were $126.1M (down 4.9%) and comp sales were -4.2%. Company repurchased 137,000 shares for $1.1M and continued refranchising, signing a $2.3M sale for 45 clinics in Southern California.
Unrestricted cash was $20.7M; company reiterated 2026 guidance for system-wide sales of $519M–$552M and consolidated adjusted EBITDA $12.5M–$13.5M.
Positive
- Revenue +13% YoY to $14.8M
- Net income +34% YoY to $1.3M
- Adjusted EBITDA +22% YoY to $3.5M
- Repurchased $1.1M of shares (137,000 shares)
- Signed $2.3M sale for 45 Southern California clinics
Negative
- System-wide sales -4.9% to $126.1M
- Comparable sales -4.2%
- Total clinic count down to 943 (from 960)
- Unrestricted cash declined to $20.7M from $23.6M
News Market Reaction – JYNT
On the day this news was published, JYNT gained 0.23%, reflecting a mild positive market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $302K to the company's valuation, bringing the market cap to $131.55M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4/FY 2025 earnings | Positive | +2.3% | Return to profitability in 2025 with higher revenue and Adjusted EBITDA. |
| Nov 06 | Q3 2025 earnings | Positive | -3.9% | Q3 revenue and EBITDA growth alongside additional buyback authorization. |
| Aug 07 | Q2 2025 earnings | Neutral | +0.4% | Modest revenue growth and refranchising; guidance revised for softer trends. |
| Jul 30 | Restatement notice | Negative | -4.0% | Planned restatement and disclosure of material weakness in controls. |
| May 08 | Q1 2025 earnings | Neutral | -5.1% | Revenue and system-wide sales growth but net loss from continuing ops. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings have often been followed by mild selling pressure, even when fundamentals improved.
Recent earnings and related filings show The Joint Corp. steadily shifting to a capital‑light, pure‑play franchisor model with improving profitability. Prior updates highlighted revenue growth, rising Adjusted EBITDA, and extensive refranchising activity. Today’s Q1 2026 results, with higher revenue, net income, and Adjusted EBITDA, extend the trend seen in Q4 2025 while reinforcing the strategic focus on franchising and portfolio optimization.
Key Terms
adjusted EBITDA financial
free cash flow financial
Asset Purchase Agreement regulatory
Management Service Agreements regulatory
Letter of Intent regulatory
line of credit financial
stock repurchase program financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- First Quarter Revenues Grew
Adjusted EBITDA Increased
- Repurchased
SCOTTSDALE, Ariz., May 07, 2026 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), the nation's largest franchisor of chiropractic care through The Joint Chiropractic® network, today reported financial results for the first quarter ended March 31, 2026. The following figures represent continuing operations unless otherwise stated.
First Quarter 2026 Financial Highlights
- Grew revenues to
$14.8 million , a13% increase compared to the first quarter of 2025. - Reported system-wide sales1 of
$126.1 million , a decline of4.9% . - Reported comp sales2 of (4.2)%.
- Net income from consolidated operations improved
34% to$1.3 million from$1.0 million in the first quarter of 2025. Reported net income from continuing operations of$1.1 million compared to a net loss from continuing operations of$506,000 in the first quarter of 2025. - Increased Adjusted EBITDA from consolidated operations
22% to$3.5 million from$2.9 million in the first quarter of 2025. Adjusted EBITDA from continuing operations was$2.2 million , compared to$46,000 in the first quarter of 2025. - Cash flow from operating activities improved to
$(1.5) million compared to$(3.7) million in the first quarter of 2025, and free cash flow (a non-GAAP metric) improved to$(1.7) million compared to$(4.0) million in the first quarter of 2025. - Repurchased 137,000 shares for total consideration of
$1.1 million , at an average of$8.35 per share.
First Quarter 2026 and Recent Operating Highlights
- Total clinic count was 943 at March 31, 2026, compared to 960 at December 31, 2025.
- Opened three clinics and closed 20 clinics for a total of 868 franchised clinics and 75 company-owned or managed clinics at March 31, 2026, compared to 885 franchised clinics and 75 company-owned or managed clinics at December 31, 2025.
- Repurchased the rights to three regional developer territories, two of which were finalized in April.
- Introduced new sales initiative tests across B2B and direct-to-patient channels.
Update on Refranchising Efforts
The net effect of the below refranchising efforts effectively positions the Company as a pure-play franchisor, as only three of its 943 clinics will be company-owned or managed following completion of the transactions.
- April 2026: The Company signed an Asset Purchase Agreement for the sale of 45 company-owned or managed clinics located in Southern California to Elite Chiro Group for
$2.3 million . As of April 27, 2026, Elite Chiro Group assumed business operations of 32 of these clinics under Management Service Agreements that will remain in effect until lease assignments are completed to permit the ownership transfer, and assumed ownership of the remaining 13 company-owned or managed clinics. - March 2026: The Company signed a Letter of Intent for the sale of five company-owned or managed clinics in Northern California.
“During the first quarter of 2026, we continued to build a more efficient and profitable platform, advancing our refranchising efforts, optimizing our clinic portfolio, and tightening our operating structure across the system,” said President and Chief Executive Officer of The Joint Corp., Sanjiv Razdan. “In April, we entered into an agreement for the sale of 45 of our company‑owned or managed clinics, effectively completing our Joint 2.0 refranchising initiative, with fewer than
“We also continued to build momentum across the business with new initiatives that strengthen patient engagement and support top‑line growth, along with disciplined cost management. Together, these efforts drove a
Financial Results for First Quarter Ended March 31, 2026 Compared to March 31, 2025
Revenue totaled
Selling and marketing expenses were
Income tax expense was
Adjusted EBITDA from consolidated operations increased
Balance Sheet and Cash Flow
Unrestricted cash was
During the first quarter of 2026, the company repurchased approximately 137,000 shares for total consideration of
2026 Guidance
The Company reiterated 2026 guidance as originally provided on March 12, 2026, as follows:
- System-wide sales are expected to be between
$519 million and$552 million . - System-wide comp sales for clinics open 13 months or more are expected to be in the range of (3)% to
3% . - Consolidated Adjusted EBITDA is expected to be in the range of
$12.5 million and$13.5 million . - New franchised clinic openings, excluding the impact of refranchised clinics, are expected to be in the range of 30 to 35. The Company is working with franchise owners to optimize the performance of the existing franchised clinic base. This may include closing underperforming clinics this year, which will result in the overall clinic count at 2026 year end being lower than 2025 year end.
Conference Call
The Joint Corp. management will host a conference call at 5:00 p.m. ET on Thursday, May 7, 2026, after the market close. Stockholders and interested participants may listen to a live broadcast of the conference call by dialing (833) 630-0823 or (412) 317-1831 and ask to be joined into the ‘The Joint’ call approximately 15 minutes prior to the start time.
The live webcast of the call with an accompanying slide presentation can be accessed in the IR events section of The Joint’s website at https://ir.thejoint.com/events and will be available for approximately one year. An audio archive can be accessed for one week by dialing (855) 669-9658 or (412) 317-0088 and entering conference ID 6402682.
About The Joint Corp. (NASDAQ: JYNT)
The Joint Corp. (NASDAQ: JYNT) revolutionized access to chiropractic care when it introduced its retail healthcare business model in 2010. Today, it is the nation’s largest operator, manager and franchisor of chiropractic clinics through The Joint Chiropractic network. The Company is making quality care convenient and affordable, while eliminating the need for insurance, for millions of patients seeking pain relief and ongoing wellness. Headquartered in Scottsdale and with over 940 locations nationwide and more than 14 million patient visits annually, The Joint Chiropractic is a key leader in the chiropractic industry. The brand is consistently named to Franchise Times’ annual “Top 400” and “Fast & Serious” list of 40 smartest growing brands. Entrepreneur named The Joint “No. 1 in Chiropractic Services,” and it is regularly ranked on the publication’s “Franchise 500,” the “Fastest-Growing Franchises,” and the “Best of the Best” lists, as well as its “Top Franchise for Veterans” and “Top Brands for Multi-Unit Owners” lists. SUCCESS named the Company as one of the “Top 50 Franchises” in 2024. The Joint Chiropractic is an innovative force, where healthcare meets retail. For more information, visit www.thejoint.com. To learn about franchise opportunities, visit www.thejointfranchise.com.
Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Washington, and West Virginia, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.
Commonly Discussed Performance Metrics
This release includes a presentation of commonly discussed performance metrics. System-wide sales include revenues at all clinics, whether operated by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance because these sales are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.
Non-GAAP Financial Information
This release also includes a presentation of non-GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Free cash flow is presented as a supplemental measure of liquidity. Reconciliation of historical net income/(loss) to EBITDA, Adjusted EBITDA and free cash flow is presented in the tables below. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), net (gain)/loss on disposition or impairment, stock-based compensation expenses, costs related to restatement filings, restructuring costs, and litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the ordinary course of our business). The company defines free cash flow as net cash provided by (used in) operating activities less capital expenditures. EBITDA, Adjusted EBITDA and free cash flow do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States (“GAAP”). While EBITDA and Adjusted EBITDA are used as measures of financial performance and free cash flow is used as a measure of liquidity, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA, Adjusted EBITDA and free cash flow should be reviewed in conjunction with the company’s financial statements filed with the Securities and Exchange Commission (the “SEC”). Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA to the most directly comparable GAAP measure because the company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss).
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Words such as "anticipates," "believes," "continues," "estimates," "expects," "goal," "objective," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. Specific forward-looking statements made in this press release include, among others, our belief that the net effect of the refranchising efforts related to the Asset Purchase Agreement and the Letter of Intent effectively positions the Company as a pure-play franchisor, as only three of its 943 clinics will be company-owned or managed following completion of the transactions; our belief that during the first quarter of 2026, we continued to build a more efficient and profitable platform, advancing our refranchising efforts, optimizing our clinic portfolio, and tightening our operating structure across the system; our belief that we remain active with our capital allocation priorities with continued share repurchases during the first quarter, as well as the recent completion of three regional developer buybacks that further optimize our portfolio economics; our belief that we continued to build momentum across the business with new initiatives that strengthen patient engagement and support top‑line growth, along with disciplined cost management and that, together, these efforts drove a
Investor Contact:
Richard Land, Alliance Advisors IR, thejointinvestor@allianceadvisors.com (212)-838-3777
– Financial Tables Follow –
| THE JOINT CORP. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | (unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 20,684,014 | $ | 23,601,810 | |||
| Restricted cash | 742,730 | 700,058 | |||||
| Accounts receivable, net | 2,343,804 | 2,849,864 | |||||
| Deferred franchise and regional development costs, current portion | 903,009 | 945,933 | |||||
| Prepaid expenses and other current assets | 3,143,125 | 1,744,556 | |||||
| Discontinued operations current assets ( | 21,774,582 | 22,246,318 | |||||
| Total current assets | 49,591,264 | 52,088,539 | |||||
| Property and equipment, net | 3,042,920 | 3,159,226 | |||||
| Operating lease right-of-use asset | 1,513,179 | 1,572,173 | |||||
| Deferred franchise and regional development costs, net of current portion | 3,478,066 | 3,827,129 | |||||
| Deposits and other assets | 296,042 | 319,460 | |||||
| Total assets | $ | 57,921,471 | $ | 60,966,527 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 961,341 | $ | 1,588,665 | |||
| Accrued expenses | 1,613,826 | 1,501,838 | |||||
| Co-op funds liability | 742,730 | 700,058 | |||||
| Payroll liabilities | 2,095,574 | 4,055,752 | |||||
| Operating lease liability, current portion | 280,253 | 194,179 | |||||
| Deferred franchise fee revenue, current portion | 2,487,723 | 2,519,018 | |||||
| Upfront regional developer fees, current portion | 240,468 | 277,394 | |||||
| Other current liabilities | 550,232 | 611,231 | |||||
| Discontinued operations current liabilities ( | 21,198,560 | 21,368,446 | |||||
| Total current liabilities | 30,170,707 | 32,816,581 | |||||
| Operating lease liability, net of current portion | 1,762,036 | 1,815,527 | |||||
| Deferred franchise fee revenue, net of current portion | 10,207,587 | 10,899,271 | |||||
| Upfront regional developer fees, net of current portion | 286,768 | 355,556 | |||||
| Total liabilities | 42,427,098 | 45,886,935 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Series A preferred stock, | — | — | |||||
| Common stock, | 15,739 | 15,471 | |||||
| Additional paid-in capital | 52,343,367 | 52,026,407 | |||||
| Treasury stock 1,471,999 shares and 1,329,089 shares, at cost, respectively | (13,393,663 | ) | (12,192,081 | ) | |||
| Accumulated deficit | (23,496,070 | ) | (24,795,205 | ) | |||
| Total The Joint Corp. stockholders' equity | 15,469,373 | 15,054,592 | |||||
| Non-controlling Interest | 25,000 | 25,000 | |||||
| Total equity | 15,494,373 | 15,079,592 | |||||
| Total liabilities and stockholders' equity | $ | 57,921,471 | $ | 60,966,527 | |||
| THE JOINT CORP. | |||||||
| CONDENSED CONSOLIDATED INCOME STATEMENTS | |||||||
| (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues: | |||||||
| Royalty fees | $ | 8,032,289 | $ | 8,070,985 | |||
| Franchise fees | 1,145,068 | 828,519 | |||||
| Advertising fund revenue | 3,647,083 | 2,307,502 | |||||
| Software fees | 1,534,901 | 1,461,967 | |||||
| Other revenues | 460,892 | 408,617 | |||||
| Total revenues | 14,820,233 | 13,077,590 | |||||
| Cost of revenues: | |||||||
| Franchise and regional development cost of revenues | 2,269,758 | 2,551,235 | |||||
| IT cost of revenues | 452,897 | 420,891 | |||||
| Total cost of revenues | 2,722,655 | 2,972,126 | |||||
| Selling and marketing expenses | 3,716,904 | 3,505,150 | |||||
| Depreciation and amortization | 396,693 | 361,930 | |||||
| General and administrative expenses | 7,084,986 | 6,914,945 | |||||
| Total selling, general and administrative expenses | 11,198,583 | 10,782,025 | |||||
| Net loss on disposition or impairment | 25,327 | 1,973 | |||||
| Income (loss) from continuing operations | 873,668 | (678,534 | ) | ||||
| Other income (loss), net | 240,235 | 185,917 | |||||
| Income (loss) from continuing operations before income tax expense | 1,113,903 | (492,617 | ) | ||||
| Income tax expense (benefit) | 11,112 | 13,404 | |||||
| Net income (loss) from continuing operations | 1,102,791 | (506,021 | ) | ||||
| Discontinued operations: | |||||||
| Income (loss) from discontinued operations before income tax expense | 378,713 | 1,577,229 | |||||
| Income tax (benefit) expense from discontinued operations | 182,369 | 103,412 | |||||
| Net income (loss) from discontinued operations | 196,344 | 1,473,817 | |||||
| Net income (loss) | $ | 1,299,135 | $ | 967,796 | |||
| Net income (loss) from continuing operations per common share: | |||||||
| Basic | $ | 0.08 | $ | (0.03 | ) | ||
| Diluted | $ | 0.08 | $ | (0.03 | ) | ||
| Net income (loss) from discontinued operations per common share: | |||||||
| Basic | $ | 0.01 | $ | 0.10 | |||
| Diluted | $ | 0.01 | $ | 0.10 | |||
| Net income (loss) per common share: | |||||||
| Basic | $ | 0.09 | $ | 0.06 | |||
| Diluted | $ | 0.09 | $ | 0.06 | |||
| Basic weighted average shares | 14,181,109 | 15,186,420 | |||||
| Diluted weighted average shares | 14,185,152 | 15,263,152 | |||||
| THE JOINT CORP. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,299,135 | $ | 967,796 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 404,449 | 388,316 | ||||||
| Net loss on disposition or impairment | 403,090 | 1,135,330 | ||||||
| Net franchise fees recognized upon termination of franchise agreements | (306,594 | ) | (100,118 | ) | ||||
| Provision for credit losses | 85,216 | — | ||||||
| Stock-based compensation expense | 280,000 | 293,941 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 460,366 | 1,462,554 | ||||||
| Prepaid expenses and other current assets | (982,100 | ) | (2,017,426 | ) | ||||
| Deferred franchise costs | 194,015 | 173,864 | ||||||
| Deposits and other assets | 23,278 | 15,914 | ||||||
| Accounts payable | (678,729 | ) | (481,554 | ) | ||||
| Accrued expenses | 527,224 | (2,989,008 | ) | |||||
| Payroll liabilities | (2,122,582 | ) | (1,075,561 | ) | ||||
| Operating leases | (805,391 | ) | (1,278,637 | ) | ||||
| Deferred revenue | (133,506 | ) | (245,129 | ) | ||||
| Upfront regional developer fees | (105,714 | ) | (73,230 | ) | ||||
| Other liabilities | (18,327 | ) | 122,294 | |||||
| Net cash used in operating activities | (1,476,170 | ) | (3,700,654 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of clinics | — | 40,100 | ||||||
| Purchase of property and equipment | (234,600 | ) | (331,505 | ) | ||||
| Net cash used in investing activities | (234,600 | ) | (291,405 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments of finance lease obligation | — | (4,354 | ) | |||||
| Purchases of treasury stock under employee stock plans | (56,528 | ) | (8,440 | ) | ||||
| Purchases of common stock under share repurchase programs | (1,145,054 | ) | — | |||||
| Proceeds from exercise of stock options | 37,228 | 905,976 | ||||||
| Net cash (used in) provided by financing activities | (1,164,354 | ) | 893,182 | |||||
| Decrease in cash, cash equivalents and restricted cash | (2,875,124 | ) | (3,098,877 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 24,301,868 | 25,996,436 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 21,426,744 | $ | 22,897,559 | ||||
| Reconciliation of cash, cash equivalents and restricted cash: | March 31, 2026 | March 31, 2025 | ||||||
| Cash and cash equivalents | $ | 20,684,014 | $ | 21,918,175 | ||||
| Restricted cash | 742,730 | 979,384 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 21,426,744 | $ | 22,897,559 | ||||
| THE JOINT CORP. | |||||||||||||||||||||
| CONSOLIDATED RECONCILIATION FROM GAAP TO NON-GAAP | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||
| from Continuing Operations | from Discontinued Operations | Net Operations | from Continuing Operations | from Discontinued Operations | Net Operations | ||||||||||||||||
| Non-GAAP Financial Data: | |||||||||||||||||||||
| Net income (loss) | $ | 1,102,791 | $ | 196,344 | $ | 1,299,135 | $ | (506,021 | ) | $ | 1,473,817 | $ | 967,796 | ||||||||
| Net interest (income) expense | (241,750 | ) | — | (241,750 | ) | (185,917 | ) | 239 | (185,678 | ) | |||||||||||
| Depreciation and amortization expense | 396,693 | 7,757 | 404,450 | 361,930 | 26,385 | 388,315 | |||||||||||||||
| Income tax expense | 11,112 | 182,369 | 193,481 | 13,404 | 103,412 | 116,816 | |||||||||||||||
| EBITDA | 1,268,846 | 386,470 | 1,655,316 | (316,604 | ) | 1,603,853 | 1,287,249 | ||||||||||||||
| Stock compensation expense | 280,000 | — | 280,000 | 293,941 | — | 293,941 | |||||||||||||||
| Net loss on disposition or impairment | 25,327 | 377,764 | 403,091 | 1,973 | 1,133,358 | 1,135,331 | |||||||||||||||
| Restructuring costs | 626,886 | 81,206 | 708,092 | 67,084 | 71,384 | 138,468 | |||||||||||||||
| Litigation expenses | 25,000 | 409,770 | 434,770 | — | — | — | |||||||||||||||
| Adjusted EBITDA | $ | 2,226,059 | $ | 1,255,210 | $ | 3,481,269 | $ | 46,394 | $ | 2,808,595 | $ | 2,854,989 | |||||||||
| THE JOINT CORP. | ||||||||
| RECONCILIATION OF CASH FLOWS USED IN OPERATING ACTIVITIES TO FREE CASH FLOW(1) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows used in operating activities | $ | (1,476,170 | ) | $ | (3,700,654 | ) | ||
| Purchase of property, plant and equipment | (234,600 | ) | (331,505 | ) | ||||
| Free cash flow | $ | (1,710,770 | ) | $ | (4,032,159 | ) | ||
| (1) Free cash flow represents cash flows provided by (used in) operating activities less capital expenditures. | ||||||||
___________________
1 System-wide sales include revenues at all clinics, whether operated or managed by the company or by franchisees. While franchised sales are not recorded as revenues by the company, management believes the information is important in understanding the company’s financial performance, because these revenues are the basis on which the company calculates and records royalty fees and are indicative of the financial health of the franchisee base.
2 Comp sales include the revenues from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed.
