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

Driven Brands (NASDAQ:DRVN) posted its quarterly earnings data on Tuesday. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.24 by $0.10, FiscalAI reports. The firm had revenue of $259.60 million during the quarter, compared to analyst estimates 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 Down 1.8%

DRVN stock opened at $12.99 on Thursday. The firm’s fifty day simple moving average is $12.41 and its 200-day simple moving average is $13.99. The company has a market capitalization of $2.14 billion, a P/E ratio of 15.65 and a beta of 0.97. The company has a debt-to-equity ratio of 2.44, a current ratio of 0.90 and a quick ratio of 0.80. Driven Brands has a 12 month low of $9.80 and a 12 month high of $19.74.

Key Headlines Impacting Driven Brands

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

• Positive Sentiment: Robert W. Baird upgraded Driven Brands to strong-buy, signaling improved confidence in the company’s outlook. Zacks.com
• Positive Sentiment: BTIG maintained a buy rating and set a new $17 price target, implying meaningful upside from current levels. Driven Brands (NASDAQ:DRVN) Given New $17.00 Price Target at BTIG Research
• Positive Sentiment: Driven Brands beat analyst expectations on EPS for Q4, reporting $0.34 versus estimates of $0.24, which suggests better-than-expected profitability at the bottom line. Earnings report
• Neutral Sentiment: The company guided FY2026 EPS to 1.150-1.250 and revenue to $2.0B-$2.1B, which is broadly in line on sales but slightly below the Street on earnings. BusinessWire results
• Negative Sentiment: Revenue came in well below expectations at $259.6 million versus $454.9 million expected, and multiple reports highlighted analyst forecast cuts after the quarter, reflecting concerns about top-line momentum. Benzinga analyst cuts
• Negative Sentiment: Morgan Stanley cut its price target from $17 to $16 and kept an equal weight view, reinforcing a more cautious stance from part of Wall Street. Driven Brands (NASDAQ:DRVN) Price Target Cut to $16.00 by Analysts at Morgan Stanley

Analyst Upgrades and Downgrades

Several analysts have weighed in on DRVN shares. William Blair downgraded shares of Driven Brands from an “outperform” rating to a “hold” rating in a research report on Wednesday, April 22nd. Royal Bank Of Canada dropped their target price on shares of Driven Brands from $20.00 to $18.00 and set an “outperform” rating on the stock in a research report on Wednesday. Freedom Capital raised shares of Driven Brands to a “strong-buy” rating in a research report on Monday, March 23rd. The Goldman Sachs Group reissued a “neutral” rating and set a $14.75 target price on shares of Driven Brands in a research report on Wednesday. Finally, Morgan Stanley dropped their target price on shares of Driven Brands from $17.00 to $16.00 and set an “equal weight” rating on the stock in a research report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $17.86.

Institutional Trading of Driven Brands

Several large investors have recently made changes to their positions in DRVN. EverSource Wealth Advisors LLC boosted its holdings in shares of Driven Brands by 744.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock valued at $37,000 after acquiring an additional 1,854 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in Driven Brands by 82.1% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock worth $37,000 after buying an additional 941 shares in the last quarter. Federated Hermes Inc. boosted its holdings in Driven Brands by 30.5% during the fourth quarter. Federated Hermes Inc. now owns 8,727 shares of the company’s stock worth $129,000 after buying an additional 2,040 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in Driven Brands by 709.3% during the second quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company’s stock worth $149,000 after buying an additional 7,441 shares in the last quarter. Finally, Amundi purchased a new stake in Driven Brands during the fourth quarter worth $169,000. 77.08% of the stock is owned by hedge funds and other institutional investors.

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.