The Joint Corp.

Good day and welcome to the Joint Corp Fourth Quarter 2025 Financial Results Conference Call. All participants will be in 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 a 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, Investor Relations. Please go ahead.

Thank you, Chloe, 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 fourth quarter and full year ended December 31st, 2025. If you do not already have a copy of this press release, it could 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 earlier today, and reconciliations of these non-GAAP financial measures to their 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 my pleasure now to turn the call over to Sanjeev. Razdan, Sanjeev, please go ahead.

Thank you, Richard, and I welcome everyone to the call. Turning to slide four, today I will review the fourth quarter results and provide an update on the progress we have achieved over the last year. On our 2024 fourth quarter results conference call a year ago, I introduced the key strategies underlying Joint 2.0, the first phase of our transformation journey to reignite growth and improve profitability. I noted at that time that completing this first phase would take 18 to 24 months, and I'm pleased to report that we are on track to complete our work on Joint 2.0 on schedule by the end of this year. Among the key progress points we have achieved to date are we have significantly strengthened our management team with six of our senior leaders having extensive healthcare industry experience, and a number of us having franchise management experience. We have made significant progress with our re-franchising efforts, as we now have 48 corporate-owned clinics remaining in our portfolio compared to 135 at the start of this process. We are in active conversations with multiple parties about the re-franchising of the remaining corporate clinics. As evidenced by the better-than-expected adjusted EBITDA performance in Q4 and for the full year, we are making progress with improving our operating leverage. As we complete the transition to a pure-play franchisor model, our operating leverage will continue to significantly improve with scartful review later on this call. We have also focused on strengthening our marketing activities to drive new patient acquisition and strengthen the returns we generate on our marketing investments. Progress on this initiative includes centering our message on chiropractic care for pain relief to improve mobility and get patients back to doing the things they love. And finally, we wanted to optimize our capital allocation, which we are achieving through more diligent return-focused growth investments and opportunistic share repurchases. While the full financial benefit of these strategies will take time, these initiatives are improving the financial position of our franchisees and stockholders. And as we complete our transformation journey, the joint will be a highly efficient, capital-light, pure-play franchisor with more consumer touchpoints and with strong free cash flow generation. Turning to slide five now, I'll summarize our Q4 2025 financial results compared to Q4 2024, and our CFO, Scott Bowman, will provide greater detail in a moment. Revenue from continuing operations increased 3.1%, and consolidated adjusted EBITDA increased 7.8%. This improvement reflects the benefit of right-sizing our costs. In the fourth quarter, we repurchased 1.1 million shares for total consideration of $9 million, and for 2025, we repurchased 1.3 million shares for total consideration of $11.3 million. At December 31st, 2025, our unrestricted cash and cash equivalents remain strong at $23.6 million. Turning to slide six, I will review the progress we have made with re-franchising our remaining company-owned clinics. Towards the end of the 2025 fourth quarter, we signed an asset purchase agreement for the sale of 22 corporate-owned or managed clinics for $1.5 million to three buying groups. The buyers have assumed business operations via management service agreements, pending the completion of the release reassignments, which we expect to be completed in the second quarter. All three of the buying groups are either current franchisees or have several years of experience operating within our system. In March, we entered into a letter of intent for the sale of five corporate-owned or managed clinics This leaves us with 48 remaining company-owned clinics or just 5% of our total clinic portfolio, all but two of which are in California. We continue to be in active dialogue with buyers for the sale of our corporate clinics and remain confident we will complete our re-franchising initiative and become a pure play franchisor this year. Given how close we are to completing this process, later on this call, Scott will provide an overview of what our operating and financial model looks like as a pure play franchisor. Let's review our marketing efforts, turning to slide seven. As we have noted previously, to drive stronger new patient demand and lead generation, we have shifted marketing content from broad wellness-focused communications to a message centered on chiropractic care for pain relief. so that patients can improve their mobility and get back to doing the things they love to do. While brand awareness initiatives take longer to produce results, they are inclined to attract patients who remain with us for longer. As noted on our Q3 call, we have shifted a portion of our marketing investment to target an earlier stage in the sales funnel. We are shifting from predominantly local spend to one that also leverages our national scale. The goal is to increase awareness of the joint so that when individuals first experience discomfort, they are predisposed to think of us to alleviate their pain. This high-impact national media program started in November. We also previously discussed the updates we are making in our digital marketing efforts. These efforts are focused on improving search visibility, including within AI-driven search environments. These are key drivers of organic traffic and leads to our new microsites or localized clinic pages. All of our clinic microsites have now been migrated to the new template and have returned to growth with overall traffic and organic traffic continuing to trend up. Importantly, high intent actions have strengthened with phone calls and overall submissions both also continuing to increase. At the same time, we launched a redesigned national blog in January with fresh content and digital linkage. Overall and organic traffic are reflecting early benefit from our ongoing SEO work and awareness investment. In addition, 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. As a result of shifting to more national advertising and our improving SEO, we have seen improvement in our new patient acquisition trends each month since program launch, indicating that these efforts are driving consideration and new patients, albeit at a rate that remains lower than last year. Turning to slide eight, we are making progress with sales driving initiatives to reignite system-wide sales growth and drive long-term profitability. To recap, we are working to improve comp sales by growing our active member base. This will be accomplished by stronger lead generation, better conversion within our clinics to drive new patients, improved retention of our existing patients, and optimized pricing. For Q4, Similar to the last several quarters, we improved our patient attrition rate through the introduction of an offering for low frequency patients. We are now maintaining patient attrition at a level that provides a solid foundation from which we can drive growth as comp sales begin to improve. That said, Q4 sales comps were lower than expected, largely due to lower new patient count. One of our initiatives targets taking pricing in the near term, To give some perspective on this, we last took meaningful enterprise-wide pricing in 2022. Since November, we have been piloting three different levels of price increases across three diverse demographic areas. We continue to test and optimize pricing in approximately 300 clinics before we roll out adjustments across our systems. We expect CommSales trends will improve during the course of the year as our new national brand awareness campaign continues to roll out as we benefit from improvements to SEO and implement the optimized pricing structure nationally. Turning to slide nine, we are focused on elevating our patients' experience through improved technology. We are continuing to introduce feature updates for our patient-facing mobile app. In addition, More than 23,000 patients have shared app feedback through our survey, giving us an average rating of 4.91 out of 5. 75% of patients reported waiting less than 5 minutes, while 17% waited less than 10. Lastly, our intent to recommend is 9.7 on a 10-point scale, indicating that patients are having consistently positive experiences. With that, I will turn the call to Scott.