Progress on Joint 2.0 and Refranchising
Significant transformation progress toward becoming a pure-play franchisor: corporate-owned clinics reduced from 135 to 48 (now ~5% of portfolio). Signed asset purchase agreement for 22 clinics for $1.5M and an LOI for 5 clinics; management expects refranchising to complete mid-2026 and is in active conversations for remaining clinics.
Improved Consolidated Adjusted EBITDA and Net Income
Q4 consolidated adjusted EBITDA increased 7.8% to $3.6M versus prior-year Q4; full-year consolidated adjusted EBITDA rose 13.9% to $13.0M. Consolidated net income improved by $8.7M year-over-year to $2.9M (vs. $5.8M loss in 2024).
System-wide Sales and Full-Year Stability
Full-year system-wide sales were flat at $532.0M compared to prior year, providing a stable base as operational changes are implemented.
Share Repurchases and Liquidity Position
Q4 repurchased 1.1M shares for $9.0M and repurchased 1.3M shares for $11.3M in 2025 (avg ~$8.7/sh). Unrestricted cash ended Q4 at $23.6M and the company had a $20.0M undrawn revolving credit facility.
Operational and Patient Experience Improvements
New-clinic preopening protocol shortened time to breakeven (half the prior time). Patient app received strong feedback (4.91/5 from >23,000 responses) with intent to recommend 9.7/10; 75% of patients report wait times under five minutes.
Digital Marketing and Lead-Gen Momentum
Launched national media program (Nov) and completed microsite migration; organic traffic and high-intent actions (calls/submissions) are trending up. Early sequential monthly improvement in new-patient acquisition since program launch, supported by improved SEO visibility versus benchmarks.
Run-Rate Financial Targets as Pure-Play Franchisor
Projected post-refranchising run-rate: revenue capture ~11% of system-wide sales (vs 10.3% in 2025); gross margin 83-85%; G&A 40-42% (vs 64% in 2025); CapEx ~3%; free cash flow conversion 60-70%; estimated adjusted EBITDA margin 19-21% (vs 12% in 2025) and net income margin 13-15% (vs 3% in 2025).
2026 Guidance Provided
2026 targets: system-wide sales $540M–$552M; comp sales -3% to +3%; consolidated adjusted EBITDA $12.5M–$13.5M; company expects continuing operations to be more profitable in 2026 as refranchising reduces corporate cost base.