Driven Brands (NASDAQ:DRVN) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Driven Brands beat earnings expectations with quarterly EPS of $0.34, topping the $0.24 consensus by $0.10. However, revenue came in at $259.6 million, well below the $454.9 million estimate.
• The company completed a broad restatement of prior financial statements tied to lease accounting and balance-sheet issues, and expects $35 million-$45 million of related costs in 2026. Management also updated FY 2026 guidance to 1.15-1.25 EPS.
• Take 5 Oil Change remains the growth driver, marking its 22nd straight quarter of same-store sales growth and adding 161 net new stores in 2025. Driven Brands also said it has made major progress on deleveraging, lowering net leverage to 3.7x and pro forma 3.3x after asset sales.

Driven Brands (NASDAQ:DRVN - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.24 by $0.10, FiscalAI reports. The business had revenue of $259.60 million for the quarter, compared to the consensus estimate of $454.91 million. Driven Brands had a negative net margin of 9.14% and a positive return on equity of 25.31%. Driven Brands updated its FY 2026 guidance to 1.150-1.250 EPS.

Here are the key takeaways from Driven Brands' conference call:

• Driven Brands completed a broad restatement of prior financial statements after identifying issues tied to lease accounting, cash balances at Auto Glass Now, Driven Advantage, accounts payable, and accounts receivable. Management said the adjustments reduced reported revenue and adjusted EBITDA across 2023-2025 and included $35 million-$45 million of non-recurring restatement costs expected in 2026.
• The company said it made major progress on portfolio simplification and deleveraging, including divesting U.S. Car Wash, International Car Wash, and PH Vitra. Driven ended 2025 at 3.7x net leverage and reached a pro forma 3.3x after using International Car Wash sale proceeds to repay more than $470 million of debt.
• Take 5 Oil Change remained the growth engine, posting its 22nd consecutive quarter of same-store sales growth and adding 161 net new stores in 2025. Management highlighted strong unit economics, a development pipeline of about 900 sites, and a long-term target of more than 2,500 locations.
• For 2026, Driven guided to revenue of $1.95 billion-$2.05 billion and adjusted EBITDA of $430 million-$460 million, with the EBITDA range including $35 million-$45 million of restatement-related costs. The company expects same-store sales of flat to 2% and 160-190 net new units.
• Management said it is seeing some moderation in Take 5 traffic among newer and more value-oriented customers, while collision trends appear to be normalizing and Auto Glass Now continues to grow. They said they remain confident in pricing and supply for lubricants and expect free cash flow of $125 million-$145 million in 2026.

Driven Brands Stock Performance

Shares of NASDAQ DRVN opened at $13.23 on Wednesday. The company's fifty day moving average price is $12.36 and its 200 day moving average price is $14.00. Driven Brands has a 1 year low of $9.80 and a 1 year high of $19.74. The company has a market capitalization of $2.18 billion, a PE ratio of -10.67 and a beta of 0.97. The company has a debt-to-equity ratio of 2.44, a quick ratio of 0.80 and a current ratio of 0.90.

Institutional Trading of Driven Brands

A number of hedge funds have recently added to or reduced their stakes in the company. Vident Advisory LLC boosted its holdings in Driven Brands by 8.0% during the fourth quarter. Vident Advisory LLC now owns 19,620 shares of the company's stock worth $291,000 after buying an additional 1,458 shares in the last quarter. Tudor Investment Corp ET AL lifted its holdings in Driven Brands by 212.9% during the fourth quarter. Tudor Investment Corp ET AL now owns 485,000 shares of the company's stock valued at $7,188,000 after purchasing an additional 330,000 shares in the last quarter. Occudo Quantitative Strategies LP purchased a new position in Driven Brands during the fourth quarter valued at $525,000. One Fin Capital Management LP lifted its holdings in Driven Brands by 3.1% during the fourth quarter. One Fin Capital Management LP now owns 1,640,000 shares of the company's stock valued at $24,305,000 after purchasing an additional 50,000 shares in the last quarter. Finally, Millennium Management LLC lifted its holdings in Driven Brands by 51.3% during the fourth quarter. Millennium Management LLC now owns 1,263,464 shares of the company's stock valued at $18,725,000 after purchasing an additional 428,499 shares in the last quarter. 77.08% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Driven Brands in a report on Friday, March 27th. Zacks Research raised shares of Driven Brands from a "strong sell" rating to a "hold" rating in a report on Thursday, March 19th. Robert W. Baird set a $18.00 price objective on shares of Driven Brands in a report on Wednesday. Piper Sandler reaffirmed a "neutral" rating on shares of Driven Brands in a report on Wednesday. Finally, William Blair downgraded shares of Driven Brands from an "outperform" rating to a "hold" rating in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $18.38.

Driven Brands Company Profile

Driven Brands Holdings Inc NASDAQ: DRVN is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company's platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.

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