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

Driven Brands (NASDAQ:DRVN) issued its quarterly earnings results 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 company had revenue of $259.60 million for the quarter, compared to the consensus estimate of $454.91 million. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%. 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 Down 7.1%

DRVN stock opened at $13.23 on Wednesday. Driven Brands has a twelve month low of $9.80 and a twelve month high of $19.74. The company has a market cap of $2.18 billion, a PE ratio of -10.67 and a beta of 0.97. The business’s 50-day simple moving average is $12.36 and its 200 day simple moving average is $14.00. The company has a quick ratio of 0.80, a current ratio of 0.90 and a debt-to-equity ratio of 2.44.

Institutional Investors Weigh In On Driven Brands

A number of institutional investors have recently added to or reduced their stakes in DRVN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Driven Brands by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,597 shares of the company’s stock valued at $610,000 after purchasing an additional 1,493 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Driven Brands by 22.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 139,321 shares of the company’s stock valued at $2,388,000 after purchasing an additional 25,806 shares in the last quarter. New York State Common Retirement Fund boosted its holdings in Driven Brands by 10.0% during the second quarter. New York State Common Retirement Fund now owns 16,511 shares of the company’s stock valued at $290,000 after purchasing an additional 1,500 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Driven Brands by 95.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 255,156 shares of the company’s stock valued at $4,481,000 after purchasing an additional 124,556 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in Driven Brands by 744.6% during 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. 77.08% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Driven Brands

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Driven Brands beat Q4 earnings estimates, reporting EPS of $0.34 versus $0.24 expected. Article: Driven Brands Holdings Inc. (NASDAQ:DRVN) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Management guided FY 2026 revenue to $2.0 billion-$2.1 billion and EPS to $1.15-$1.25, which was mostly in line to slightly below expectations. Article: Driven Brands Holdings Inc. Reports Fourth Quarter and Fiscal Year 2025 Results
• Negative Sentiment: Revenue missed estimates sharply in Q4, with sales of $259.6 million versus $454.9 million expected, raising concerns about top-line performance. Article: Driven Brands earnings report and conference call
• Negative Sentiment: BTIG Research lowered its price target to $17 from $21, signaling a more cautious view on near-term upside. Article: BTIG Research price target update

Wall Street Analyst Weigh In

DRVN has been the topic of several research analyst reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Driven Brands in a research report on Friday, March 27th. The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Driven Brands in a research report on Wednesday, April 22nd. BTIG Research lowered their price target on Driven Brands from $21.00 to $17.00 and set a “buy” rating on the stock in a research report on Wednesday. Robert W. Baird set a $18.00 price target on Driven Brands in a research report on Wednesday. Finally, Piper Sandler reaffirmed a “neutral” rating on shares of Driven Brands in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus 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.