Driven Brands (NASDAQ:DRVN) Issues Quarterly Earnings Results

Driven Brands (NASDAQ:DRVN) posted its quarterly earnings data on Tuesday. The company reported $0.34 earnings per share (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 Price Performance

Driven Brands stock opened at $13.23 on Wednesday. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44. The stock has a market cap of $2.18 billion, a P/E ratio of -10.67 and a beta of 0.97. The company has a 50-day moving average price of $12.36 and a 200 day moving average price of $14.00. Driven Brands has a 12-month low of $9.80 and a 12-month high of $19.74.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DRVN. Osaic Holdings Inc. grew its holdings in shares of Driven Brands by 82.1% in the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock valued at $37,000 after purchasing an additional 941 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Driven Brands by 744.6% in the second quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock valued at $37,000 after purchasing an additional 1,854 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Driven Brands by 709.3% in the second quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company’s stock valued at $149,000 after purchasing an additional 7,441 shares in the last quarter. Federated Hermes Inc. grew its holdings in shares of Driven Brands by 30.5% in the fourth quarter. Federated Hermes Inc. now owns 8,727 shares of the company’s stock valued at $129,000 after purchasing an additional 2,040 shares in the last quarter. Finally, Amundi acquired a new position in shares of Driven Brands in the fourth quarter valued at approximately $169,000. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Freedom Capital raised shares of Driven Brands to a “strong-buy” rating in a report on Monday, March 23rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Driven Brands in a research report on Friday, March 27th. Zacks Research upgraded shares of Driven Brands from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 19th. William Blair cut shares of Driven Brands from an “outperform” rating to a “hold” rating in a research report on Wednesday, April 22nd. Finally, The Goldman Sachs Group reiterated a “neutral” rating on shares of Driven Brands in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $18.38.

About Driven Brands

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.