The Joint Earnings Call Transcripts
Fiscal Year 2026
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The meeting confirmed a quorum, elected seven directors, approved executive compensation and auditor appointment, and acknowledged two board retirements. No shareholder questions were received, and final voting results will be filed with the SEC.
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Revenue grew 13% year-over-year to $14.8M, with adjusted EBITDA from continuing operations up sharply and net income turning positive. Major refranchising is nearly complete, transforming the business into a pure-play franchisor, with improved profitability and strong cash flow supporting share repurchases.
Fiscal Year 2025
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Revenue and adjusted EBITDA grew in Q4 2025, driven by cost optimization and refranchising progress. Marketing and pricing initiatives are underway to boost new patient acquisition, with 2026 guidance projecting stable to modestly higher sales and profitability.
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Revenue and Adjusted EBITDA grew year-over-year, driven by cost optimization and refranchising, despite a decline in system-wide and comp sales. National marketing, pricing pilots, and technology upgrades aim to boost new patient growth and profitability.
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Q2 saw refranchising of 37 clinics, 5% revenue growth, and a 52% rise in adjusted EBITDA. Guidance for 2025 was revised downward for sales but raised for adjusted EBITDA, reflecting macro headwinds and cost discipline. Cash position strengthened and a $5M share buyback was authorized.
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The company is transitioning to a pure franchise model, aiming to complete refranchising by the end of 2025 and drive profitability through dynamic pricing, new patient acquisition, and enhanced technology. Strong capital position supports growth and a new stock repurchase program.
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System-wide sales grew 5% to $132.6M in Q1 2025, with revenue up 7% and a net loss of $506K. The transition to a pure-play franchisor is underway, with 93% of corporate clinics under LOI for refranchising and mid-single-digit comp sales growth expected for 2025.
Fiscal Year 2024
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System-wide sales grew 9% in Q4 2024, with 1.9 million unique patients served and a strategic shift to a pure-play franchisor model underway. 2025 guidance anticipates $550–$570 million in system-wide sales and mid-single digit comp growth, with refranchising expected to improve profitability.
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Q3 2024 saw modest revenue growth and a net loss driven by refranchising-related impairments, while adjusted EBITDA declined year-over-year. Strategic focus remains on refranchising, innovation, and expanding market share despite ongoing consumer headwinds.
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Q2 2024 saw 3% revenue growth and a 2% same-store comp increase, but net loss widened due to litigation and refranchising costs. The network reached 960 clinics, with ongoing innovation and refranchising efforts expected to drive future profitability.
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The company is shifting to a franchise-focused model to improve margins and reduce costs, supported by strong digital marketing and a focus on younger, value-conscious customers. Economic headwinds have impacted growth, but capital strength and new marketing initiatives position the business for future expansion.