The Joint Corp.

Good day and welcome to the Joint Corporation Third Quarter 2025 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Richard Land from Alliance Advisors. Please go ahead.

Thank you, Operator, and good afternoon, everyone. This is Richard Land of Alliance Advisors Investor Relations. Joining us on the call today are President and CEO Sanjeev Razdan and CFO Scott Bowman. Please note we are using a slide presentation that can be found at ir.thejoint.com forward slash events. This afternoon, the Joint Corp issued a press release for the third quarter ended September 30, 2025. If you do not already have a copy of this press release, it can be found in the investor relations section of the company's website. As provided on slide two, please be advised that today's discussion, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance and business prospects, and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the risk factors section of the Joint Corps filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Management uses non-GAAP financial measures such as EBITDA, adjusted EBITDA, and system-wide sales. A description of these non-GAAP financial measures is included in the press release issued this afternoon, and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the appendix to the presentation and press release, both of which are available in the Investors tab of our website. Turning to slide three, with that, it's now my pleasure to turn the call over to Sanjeev Razan. Please go ahead.

Thank you, Richard, and I welcome everyone to the call. Today, I will review the third quarter results and recent events. For those new to the call, we provide affordable, accessible, and approachable chiropractic care and help consumers relieve and manage their pain while supporting their ongoing wellness journey. There is a significant need for this with Americans spending $20 billion a year on back pain. To capture a leading share of this market opportunity, we have been strengthening our management team and executing on our strategies to reignite growth and improve profitability. Although the full financial benefit of these strategies will take time to come to fruition, the following initiatives will improve the financial position of our franchisees and stockholders. To drive new patient acquisition, we have shifted our brand marketing campaign to focus on pain relief, which we are amplifying by moving a portion of our advertising spend from local to in-national campaigns. and we are strengthening our digital marketing campaigns with SEO and clinic microsite. To grow system-wide sales, we are conducting a three-tiered pricing pilot for our wellness plan. To elevate our patient experience, we continue to upgrade our patient-facing technology. Recently, we launched a second release of our mobile app with a range of new features. To become a pure-play franchisor, we continue to pursue the re-franchising of our corporate clinic. And to improve new clinic performance, we have implemented robust pre-opening protocols for new clinics to reduce time to break even and ensure a strong early-stage volume. Before I elaborate, for those of you who are new to the joint, we are the largest franchisor of chiropractic care clinics. Our mission is to improve the quality of life through routine and affordable chiropractic care. And our big bold vision is to become America's most accessible health and wellness services company. I'll summarize our Q3 2025 financial results compared to Q3 2024, and our CFO, Scott Coleman, will provide greater detail in a moment. Revenue from continuing operations increased 6%. Consolidated adjusted EBITDA increased 36%. This improvement reflects the impact of work done on right-sizing our costs, which have helped to offset a 1.5% decline in system-wide sales and negative comp sales of 2%. Since our last conference call in August, we have repurchased $5 million of stock, and the board recently authorized an additional $12 million of our stock repurchase plan. At September 30th, 2025, our unrestricted cash and cash equivalents remain strong at $29.7 million. Turning to slide five to discuss refranchising. We have entered into an initial agreement to sell 45 corporate clinics in Southern California for $4.5 million via an asset purchase agreement. We are continuing to negotiate certain terms and will update if and when we align on final terms. While microeconomic headwinds are resulting in a longer lead time due to lender-related dynamics, We are actively negotiating asset purchase agreements with potential buyers for our 33 remaining corporate clinics. Let's review our marketing effort, turning to slide six. For Q3, similar to Q2, our patient attrition was on par with last year and conversions were better. However, Q3 sales comps were less than expected. The main shortfall was due to lower new patient count, which we are addressing by initiating a national marketing refresh, SEO improvements, and advanced pricing test. Our research identifies pain as the biggest trigger to seek chiropractic care. Our patient base proves this to be true with 80% of our new patients citing aches and pains as the reason for coming to the joint. In August, we launched our compelling new brand awareness campaign, Life Unpaused. We have shifted marketing content from broad wellness-focused communications to a message centered on chiropractic care for pain relief. Our goal is to drive stronger new patient demand and lead generation. While brand awareness initiatives tend to take longer to produce results, They are inclined to attract patients who remain with us longer. We are moving a portion of our marketing efforts to target an earlier stage in the sales funnel, shifting from predominantly local spend to one that also leverages our national scale of 962 locations in 43 states and the District of Columbia, which is equivalent to approximately 57% of metro statistical areas in the U.S. This campaign will educate consumers much earlier on and before they experience pain that the joint offers an affordable solution to alleviate pain. The goal is to get individuals at the first sign of discomfort to think, I should visit the joint, it's convenient, affordable, and they can help. As alluded to last quarter, we have been actively engaging our franchisees regarding a new strategy, I am pleased to report in October, the franchisees elected to reallocate $500 or approximately 1% of their gross sales per clinic per month from local advertising to this new national marketing effort. This adjustment does not increase the total amount contributed by franchisees. It simply redirects existing funds to enhance our national brand awareness and patient activations. We are also strengthening our digital strategy through accelerated SEO initiatives designed to improve search visibility, page authority and discovery, including within AI-driven search environments. These are all key drivers of organic traffic and leads to our website. New microsites or localized clinic pages are demonstrating strong early performance. In September, A pilot rollout of 35 clinics averaged a 20% to 40% increase in organic search traffic within the first two weeks of launch. A phase refresh of all remaining clinic pages began earlier this week, with completion expected before end of year. In parallel, enhancements to local Google business profiles are increasing engagements. Together, these efforts are expanding our local search presence and improving conversion pathways from search to clinic. At the same time, updates to national website pages are enhancing visibility among early awareness audiences searching for topics such as back pain, neck pain, and mobility or lifestyle improvement. These tactics are broadening reach bringing new users to our website, and positioning the joint chiropractic as a credible, trusted authority at the beginning of the consumer decision process. Collectively, these initiatives are designed to reach audiences wherever they search and support the full marketing funnel, from awareness to lead generation to wellness plan purchasing. These actions are intended to drive new patient counts, which in turn will help improve costs. Turning to slide seven, we're happy to welcome our new chief marketing officer who will lead their implementation and further fortify our marketing. Debbie Gonzalez started at the beginning of October. She's experienced in transforming global brand strategies and strengthening marketing capabilities across multi-site retail and health and wellness businesses. Debbie has served as Chief Marketing Officer in publicly traded, private, and consulting companies where she drove customer acquisition, brand development, performance marketing, digital initiatives, and innovation. Also, during her tenure at the franchisor Massage Envy, she led the development of the recurring revenue membership model. Turning to slide eight, we have unveiled dynamic revenue management initiatives initiatives to drive sales and long-term profitability. In July, we introduced our new Kick Start plan. Our doctors prescribe tailored treatment plans to meet our patients' specific needs. Often, new patients need multiple adjustments a week during the early phase of their care to get out of acute pain. Kickstart offers an attractively priced pack of four, eight, or 12 adjustments beyond the four included in the standard wellness plan. This offering is a real win-win as it helps patients get rapid relief affordably and generates more revenue for clinics. Already, approximately 25% of new patients are taking advantage of these packages. Now we are expanding our core wellness plan pricing analysis to better understand patient sensitivity for revenue optimization. Our latest pilot launched early November. There are three different levels of price increase in three different diverse demographic areas. We will monitor performance metrics and analyze trends to help determine next steps for the rest of the system. Based on the results of these pilots, we will optimize our nationwide pricing structure and roll out adjustments across our system. Turning to slide nine, we are focused on elevating our patients' experience to improved technology. We believe this will foster referrals and extend the length of time they maintain their wellness plan. In July, we officially launched our patient-facing mobile app with basic in-clinic check-in functionality. We are excited that the adoption rate among our wellness plan holders has reached 18% of new patients at the end of quarter three with over 178,000 downloads. At the end of August, we released a second app version, enabling patients to look up their visit balance, plan type, cycle date, at a glance visit history, treatment plan, and progress report. Download records like receipts and visit notes, and complete a patient experience survey. Upcoming features will enable credit card updates and gamification, such as getting badges for adjustments, check-ins, or watching a video of the stretches that help with your condition. With that, I will turn the call to Scott.