--Take 5 segment revenue increases 14% with same store sales growth of 7%--
--19th consecutive quarter of growth in same store sales--
--Net leverage ratio improves to 3.8x Adjusted EBITDA--
--Narrows fiscal year 2025 outlook ranges--
CHARLOTTE, N.C.--(BUSINESS WIRE)--November 04, 2025--
Driven Brands Holdings Inc. (NASDAQ: DRVN) ("Driven Brands" or the "Company") today reported financial results for the third quarter ending September 27, 2025.
For the third quarter, Driven Brands delivered revenue of $535.7 million, an increase of 6.6% versus the prior year. System-wide sales increased 4.7% to $1.6 billion, driven by a 2.8% increase in same store sales and 3.5% increase in store count versus the prior year.
Net income from continuing operations was $60.9 million or $0.37 per diluted share versus a net loss from continuing operations of $11.5 million or $(0.07) per diluted share in the prior year. Adjusted Net Income(1) was $56.2 million or $0.34 per diluted share versus $38.1 million or $0.23 per diluted share in the prior year. Adjusted EBITDA(1) was $136.3 million, an increase of $4.3 million versus the prior year.
"Driven Brands delivered another strong quarter, highlighted by continued growth in our Take 5 business," said Danny Rivera, President and Chief Executive Officer. "Same store sales increased for the 19th consecutive quarter, with high single-digit growth in Take 5 driving solid gains in revenue, adjusted EBITDA and adjusted earnings per share."
"As we look to the balance of the year, our narrowed fiscal 2025 outlook reflects continued execution of our Growth and Cash strategy - with expansion from Take 5 Oil Change, reliable cash generation from our franchise and car wash segments, and ongoing progress reducing leverage. While the consumer environment remains dynamic, our resilient, needs-based model and disciplined focus on execution position us well to continue delivering long-term shareholder value," Rivera concluded.
Third Quarter 2025 Key Performance Indicators by Segment
System-wide
Sales (in Store Same Store Revenue Adjusted EBITDA
millions) Count Sales(2) (in millions) (in millions)
------------- -------------- ----- ---------- --------------- -----------------
Take 5 $ 411.6 1,282 6.8% $ 306.4 $ 107.3
------------- ------------- ----- ---- --- ----------- ------ -----
Franchise
Brands 1,091.6 2,676 0.7% 75.3 49.7
------------- ------------- ----- ---- --- ----------- ------ -----
Car Wash 51.4 717 3.9% 54.1 15.0
------------- ------------- ----- ---- --- ----------- ------ -----
Corporate
and
Other 70.8 213 N/A 99.9 (35.8)
------------- ------------- ----- ---- ---- ----------- ------ ----
Total $ 1,625.4 4,888 2.8% $ 535.7 $ 136.3
------------- ------------- ----- ---- --- ----------- ------ -----
Note: Certain columns may not add due to rounding.
Capital and Liquidity
The Company ended the third quarter with a net leverage ratio of 3.8x Adjusted EBITDA and total liquidity of $755.7 million consisting of $162.0 million in cash and cash equivalents and $593.7 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This did not include the additional $135.0 million Series 2022 Class A-1 Notes that expand the Company's variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.
Seller Note Divestiture and Debt Refinancing
As disclosed previously, on July 25, 2025, Driven Brands divested the seller note received in connection with the sale of the former U.S. car wash business for $113.0 million in cash proceeds. Net proceeds were used to pay off all outstanding term loan principal as well as $65.0 million of the drawn balance on its revolving credit facility.
On October 20, 2025, as previously disclosed, the Company completed an offering by certain of its subsidiaries for $500 million of Series 2025 Class A-2 senior notes maturing in October 2055, with an anticipated repayment date in October 2030. Proceeds from the notes, combined with funding from the Company's revolving credit facility, were primarily used to repay the Company's 2019-1 and 2022-1 Fixed Rate Senior Secured Notes.
Fiscal Year 2025 Outlook
The Company narrowed its financial outlook for fiscal year ending December 27, 2025, as follows:
2025 Outlook
------------------------ ----------------------
Revenue $2.10 - $2.12 billion
------------------------ ----------------------
Adjusted EBITDA(1) $525 - $535 million
------------------------ ----------------------
Adjusted Diluted EPS(1) $1.23 - $1.28
------------------------ ----------------------
The Company now expects same store sales growth at the low end of its original range of 1% to 3%; and continues to expect net store growth of approximately 175 to 200.
Note: 2025 Outlook excludes the impact of any potential M&A and divestitures other than the completed sale of the U.S. car wash business.
(1) Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP
financial measures. See "Reconciliation of Non-GAAP Financial Measures"
for additional information on non-GAAP financial measures and a
reconciliation to the most comparable GAAP measures. Forward-looking
estimates of Adjusted EBITDA and Adjusted EPS are made in a manner
consistent with the relevant definitions and assumptions noted herein.
(2) The Company does not provide same store sales results for Corporate and
Other as it is a non-reportable segment. The same store sales results for
any applicable businesses within Corporate and Other are included in the
Company's overall same store sales results.
Conference Call
Driven Brands will host a conference call to discuss third quarter 2025 results today, Tuesday, November 4, 2025, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands' Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months.
About Driven Brands
Driven Brands$(TM)$ , headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change, maintenance and car wash. Driven Brands is the parent company of some of North America's leading automotive service businesses including Take 5 Oil Change$(R)$ , Meineke Car Care Centers(R) , Maaco(R) , 1-800-Radiator & A/C(R) , Auto Glass Now(R) , and CARSTAR(R) . Driven Brands has approximately 4,900 locations across the United States and 13 other countries, and services tens of millions of vehicles annually. Driven Brands' network generates approximately $2.1 billion in annual revenue from approximately $6.3 billion in system-wide sales.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe, " "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target, " "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this Press Release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, trends, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are forward-looking statements. In particular, forward-looking statements include, among other things, statements relating to: (i) potential post-closing obligations and liabilities relating to the sale of our U.S. car wash business; (ii) the current geopolitical environment, including the impact, both direct and indirect, of government actions, such as proposed and enacted tariffs and governmental shutdowns; (iii) our strategy, outlook, and growth prospects; (iv) our operational and financial targets and dividend policy; (v) general economic trends and trends in the industry and markets; (vi) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (vii) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (viii) the competitive environment in which we operate. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 28, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at
www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
-------------------- --------------------------
(in thousands, except per September September September September 28,
share amounts) 27, 2025 28, 2024 27, 2025 2024
--------- --------- ----------- -------------
Net revenue:
Franchise royalties and
fees $ 50,824 $ 49,475 $ 144,714 $ 144,549
Company-operated store
sales 331,259 298,798 978,670 884,944
Independently-operated
store sales 51,410 49,959 189,841 163,286
Advertising
contributions 27,883 26,823 80,249 75,804
Supply and other
revenue 74,308 77,284 209,361 234,544
------- ------- --------- ---------
Total net revenue 535,684 502,339 1,602,835 1,503,127
------- ------- --------- ---------
Operating Expenses:
Company-operated store
expenses 193,129 177,510 565,391 525,529
Independently-operated
store expenses 30,178 29,382 104,713 90,693
Advertising expenses 27,884 26,823 80,249 75,804
Supply and other
expenses 42,552 35,779 116,939 112,531
Selling, general, and
administrative
expenses 145,177 149,789 471,347 393,418
Depreciation and
amortization 34,828 33,418 102,883 97,358
------- ------- --------- ---------
Total operating
expenses 473,748 452,701 1,441,522 1,295,333
------- ------- --------- ---------
Operating income 61,936 49,638 161,313 207,794
------- ------- --------- ---------
Other expenses, net:
Interest expense, net 23,603 43,674 91,496 119,241
Foreign currency
transaction (gain)
loss, net (5,419) 765 (17,406) 5,767
Loss on debt
extinguishment 4,549 205 4,549 205
------- ------- --------- ---------
Other expenses, net 22,733 44,644 78,639 125,213
------- ------- --------- ---------
Income before taxes from
continuing operations 39,203 4,994 82,674 82,581
Income tax (benefit)
expense (21,659) 16,474 (7,487) 45,292
------- ------- --------- ---------
Net income (loss) from
continuing operations $ 60,862 $(11,480) $ 90,161 $ 37,289
Gain on sale of
discontinued operations,
net of tax -- -- 37,367 --
Net loss from discontinued
operations, net of tax -- (3,467) (13,596) (17,816)
------- ------- --------- ---------
Net income (loss) $ 60,862 $(14,947) $ 113,932 $ 19,473
======= ======= ========= =========
Basic earnings (loss)
per share:
Continuing
Operations $ 0.37 $ (0.07) $ 0.55 $ 0.23
Discontinued
Operations -- (0.02) 0.14 (0.11)
------- ------- --------- ---------
Net basic earnings
(loss) per share $ 0.37 $ (0.09) $ 0.69 $ 0.12
======= ======= ========= =========
Diluted earnings (loss)
per share:
Continuing
Operations $ 0.37 $ (0.07) $ 0.55 $ 0.23
Discontinued
Operations -- (0.02) 0.14 (0.11)
------- ------- --------- ---------
Net diluted earnings
(loss) per share $ 0.37 $ (0.09) $ 0.69 $ 0.12
======= ======= ========= =========
Weighted average shares
outstanding
Basic 163,900 159,804 162,434 159,743
Diluted 165,124 159,804 163,686 160,713
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share
and per share amounts) September 27, 2025 December 28, 2024
-------------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 162,028 $ 149,573
Restricted cash 335 358
Accounts and notes
receivable, net 188,208 177,654
Inventory 65,195 66,539
Prepaid and other assets 35,178 37,841
Income tax receivable 16,025 14,294
Advertising fund assets,
restricted 63,617 49,716
Assets held for sale 54,540 77,616
Current assets of
discontinued operations -- 83,847
--------------- --------------
Total current assets 585,126 657,438
Other assets 120,802 125,422
Property and equipment, net 758,874 711,505
Operating lease right-of-use
assets 570,213 524,442
Deferred commissions 7,589 7,246
Intangibles, net 655,792 665,896
Goodwill 1,445,383 1,403,056
Deferred tax assets 9,151 8,206
Non-current assets of
discontinued operations -- 1,158,576
--------------- --------------
Total assets $ 4,152,930 $ 5,261,787
=============== ==============
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable $ 89,355 $ 85,843
Accrued expenses and other
liabilities 226,515 193,638
Income tax payable 13,190 6,860
Current portion of long-term
debt 277,770 32,232
Income tax receivable
liability 22,674 22,676
Advertising fund liabilities 18,644 22,030
Current liabilities of
discontinued operations -- 70,616
--------------- --------------
Total current liabilities 648,148 433,895
Long-term debt 1,936,610 2,656,308
Deferred tax liabilities 72,249 87,485
Operating lease liabilities 541,110 491,282
Income tax receivable
liability 110,907 110,935
Deferred revenue 29,641 31,314
Long-term accrued expenses
and other liabilities 20,775 20,122
Non-current liabilities of
discontinued operations -- 823,112
--------------- --------------
Total liabilities 3,359,440 4,654,453
Preferred Stock $0.01 par
value; 100,000,000 shares
authorized; none issued or
outstanding -- --
Common stock, $0.01 par
value, 900,000,000 shares
authorized: and 164,454,218
and 163,842,248 shares
outstanding; respectively 1,645 1,638
Additional paid-in capital 1,725,174 1,699,851
Accumulated deficit (888,651) (1,002,583)
Accumulated other
comprehensive loss (44,678) (91,572)
--------------- --------------
Total shareholders' equity 793,490 607,334
--------------- --------------
Total liabilities and
shareholders' equity $ 4,152,930 $ 5,261,787
=============== ==============
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
----------------------------------
September 27, September 28,
(in thousands) 2025 2024
--------------- -----------------
Net income $ 113,932 $ 19,473
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 105,109 131,219
Share-based compensation expense 28,269 35,641
(Gain) loss on foreign denominated
transactions (21,560) 8,744
Loss (gain) on foreign currency
derivatives 4,154 (2,977)
(Gain) loss on sale and disposal of
businesses, fixed assets, and sale
leaseback transactions (21,560) 32,998
Loss on fair value of Seller Note 17,000 --
Reclassification of interest rate
hedge to income (5,980) (1,560)
Bad debt expense 13,275 5,759
Asset impairment charges and lease
terminations 19,747 15,008
Amortization of deferred financing
costs and bond discounts 7,441 7,240
Amortization of cloud computing 15,190 3,436
(Benefit) provision for deferred
income taxes (36,628) 13,571
Loss on extinguishment of debt 4,549 205
Other, net (2,500) 3,219
Changes in operating assets and
liabilities, net of acquisitions:
Accounts and notes receivable, net (30,866) (37,752)
Inventory 2,657 1,337
Prepaid and other assets 2,242 7,648
Advertising fund assets and
liabilities, restricted (14,845) (4,209)
Other assets (18,210) (63,015)
Deferred commissions (343) 642
Deferred revenue (1,679) 1,248
Accounts payable (533) 11,504
Accrued expenses and other liabilities 39,296 27,359
Income tax receivable 16,588 (8,230)
---------- ----------
Cash provided by operating activities 234,745 208,508
Cash flows from investing activities:
Capital expenditures (167,384) (219,307)
Cash used in business acquisitions,
net of cash acquired (8,112) (2,759)
Proceeds from sale leaseback
transactions 35,279 17,944
Proceeds from Seller Note 113,000 --
Proceeds from sale or disposal of
businesses and fixed assets 277,062 255,548
---------- ----------
Cash provided by (used in) investing
activities 249,845 51,426
Cash flows from financing activities:
Payment of debt extinguishment and
issuance costs (1,414) (9,646)
Proceeds from the issuance of
long-term debt -- 274,794
Repayment of long-term debt (370,915) (422,492)
Proceeds from revolving lines of
credit and short-term debt 121,000 46,000
Repayment of revolving lines of credit
and short-term debt (236,000) (71,000)
Repayment of principal portion of
finance lease liability (3,581) (4,301)
Payment of Tax Receivable Agreement -- (38,374)
Acquisition of non-controlling
interest -- (644)
Tax obligations for share-based
compensation (3,907) (998)
---------- ----------
Cash used in financing activities (494,817) (226,661)
Effect of exchange rate changes on
cash 4,709 71
---------- ----------
Net change in cash, cash equivalents,
restricted cash, and cash included in
advertising fund assets, restricted (5,518) 33,344
---------- ----------
Cash and cash equivalents, beginning
of period 169,954 176,522
Cash included in advertising fund
assets, restricted, beginning of
period 38,930 38,537
Restricted cash, beginning of period 358 657
---------- ----------
Cash, cash equivalents, restricted
cash, and cash included in
advertising fund assets, restricted,
beginning of period 209,242 215,716
---------- ----------
Cash and cash equivalents, end of
period 162,028 204,181
Cash included in advertising fund
assets, restricted, end of period 41,361 40,465
Restricted cash, end of period 335 4,414
---------- ----------
Cash, cash equivalents, restricted
cash, and cash included in
advertising fund assets, restricted,
end of period $ 203,724 $ 249,060
========== ==========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Non-GAAP Financial Measures in Outlook
Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA") and Adjusted Earnings per Share ("Adjusted EPS") in the Company's Fiscal Year 2025 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC's rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands' core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.
The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three and nine months ended September 27, 2025, compared to the three and nine months ended September 28, 2024.
Net Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)
Three Months Ended Nine Months Ended
-------------------- ----------------------
(in thousands,
except per share September September September September
data) 27, 2025 28, 2024 27, 2025 28, 2024
--------- --------- --------- -----------
Net income (loss)
from continuing
operations $ 60,862 $(11,480) $ 90,161 $ 37,289
Adjustments:
Acquisition
related
costs(a) (214) (393) 784 1,572
Non-core items
and project
costs, net(b) 18,557 6,424 32,770 16,166
Cloud computing
amortization(c) 6,055 1,022 15,191 3,436
Share-based
compensation
expense(d) 5,191 12,798 28,269 35,641
Foreign currency
transaction
(gain) loss,
net(e) (5,419) 765 (17,406) 5,767
Asset sale
leaseback
(gain) loss,
net,
impairment,
notes
receivable
loss, and
closed store
expenses(f) 9,907 29,036 63,387 36,213
Loss on debt
extinguishment
(g) 4,549 205 4,549 205
Amortization
related to
acquired
intangible
assets(h) 4,295 5,375 13,482 17,713
Acceleration of
interest rate
hedge(i) (4,422) -- (4,422) --
Valuation
allowance for
deferred tax
asset(j) (34,275) 7,032 (31,841) 8,287
------- ------- ------- -------
Adjusted net
income before
tax impact of
adjustments 65,086 50,784 194,924 162,289
Tax impact of
adjustments(k) (8,891) (12,703) (35,410) (23,818)
------- ------- ------- -------
Adjusted net income
from continuing
operations $ 56,195 $ 38,081 $159,514 $138,471
======= ======= ======= =======
Basic earnings
(loss) per share
from continuing
operations $ 0.37 $ (0.07) $ 0.55 $ 0.23
Diluted earnings
(loss) per share
from continuing
operations $ 0.37 $ (0.07) $ 0.55 $ 0.23
Adjusted basic
earnings per share
from continuing
operations(1) $ 0.34 $ 0.23 $ 0.97 $ 0.85
Adjusted diluted
earnings per share
from continuing
operations(1) $ 0.34 $ 0.23 $ 0.97 $ 0.85
Weighted average
shares outstanding
Basic 163,900 159,804 162,434 159,743
Diluted 165,124 159,804 163,686 160,713
Weighted average
shares outstanding
for Adjusted Net
Income
Basic 163,900 159,804 162,434 159,743
Diluted 165,124 161,113 163,686 160,713
(1) Adjusted Earnings Per Share is calculated under the two-class method.
Under the two-class method, adjusted earnings per share is calculated
using adjusted net income attributable to common shares, which is
derived by reducing adjusted net income by the amount attributable to
participating securities. Adjusted Net Income attributable to
participating securities used in the basic earnings per share
calculations was less than $1 million and $1 million for the three and
nine months ended September 27, 2025, respectively, and $1 million and
$3 million for the three and nine months ended September 28, 2024,
respectively. Adjusted Net Income attributable to participating
securities used in the diluted earnings per share calculation was less
than $1 million for the three and nine months ended September 27, 2025
and September 28, 2024.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission's ("SEC") rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand's core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period.
Please see the company's Annual Report on Form 10-K for the fiscal year ended December 28, 2024, filed with the SEC on February 26, 2025, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three and nine months ended September 27, 2025, compared to the three and nine months ended September 28, 2024.
Net Income to Adjusted EBITDA Reconciliation (Unaudited)
Three Months Ended Nine Months Ended
-------------------- ----------------------
September September September September
(in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
--------- --------- --------- -----------
Net income (loss)
from continuing
operations $ 60,862 $(11,480) $ 90,161 $ 37,289
Income tax
(benefit)
expense (21,659) 16,474 (7,487) 45,292
Interest expense,
net 23,603 43,674 91,496 119,241
Depreciation and
amortization 34,828 33,418 102,883 97,358
------- ------- ------- -------
EBITDA 97,634 82,086 277,053 299,180
------- ------- ------- -------
Acquisition
related costs(a) (214) (393) 784 1,572
Non-core items and
project costs,
net(b) 18,557 6,424 32,770 16,166
Cloud computing
amortization(c) 6,055 1,022 15,191 3,436
Share-based
compensation
expense(d) 5,191 12,798 28,269 35,641
Foreign currency
transaction
(gain) loss,
net(e) (5,419) 765 (17,406) 5,767
Asset sale
leaseback (gain)
loss, net,
impairment, notes
receivable loss,
and closed store
expenses(f) 9,907 29,036 63,387 36,213
Loss on debt
extinguishment(g) 4,549 205 4,549 205
------- ------- ------- -------
Adjusted EBITDA $136,260 $131,943 $404,597 $ 398,180
======= ======= ======= =======
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes
(a) Consists of acquisition costs as reflected within the consolidated
statements of operations, including legal, consulting and other fees,
and expenses incurred in connection with acquisitions completed during
the applicable period, as well as inventory rationalization expenses
incurred in connection with acquisitions. As acquisitions occur in the
future, we expect to incur similar costs and, under U.S. GAAP, such
costs relating to acquisitions are expensed as incurred and not
capitalized.
(b) Consists of discrete items and project costs, including third-party
professional costs associated with strategic transformation initiatives
as well as non-recurring payroll-related costs and non-ordinary course
legal settlements.
(c) Includes non-cash amortization expenses relating to cloud computing
arrangements.
(d) Represents non-cash share-based compensation expense.
(e) Represents foreign currency transaction (gains) losses, net that
primarily related to the remeasurement of our intercompany loans as
well as gains and losses on cross currency swaps.
(f) Consists of the following items (i) (gains) losses, net on sale
leasebacks, disposal of assets, or sale of business; (ii) net losses
(gains) on sale for assets held for sale; (iii) impairment of certain
fixed assets and operating lease right-of-use assets related to closed
and underperforming locations, lease exit costs and other costs
associated with stores that were closed prior to the respective lease
termination dates; and (iv) loss on fair value of the Seller Note.
(g) Represents charges incurred related to the Company's full repayment of
the Term Loan in conjunction with the sale of the U.S. Car Wash
business in the current year and charges incurred related to the
Company's partial repayment of Senior Secured Notes in conjunction with
the sale of its Canadian distribution business in the prior year.
(h) Consists of amortization related to acquired intangible assets as
reflected within depreciation and amortization in the consolidated
statement of operations.
(i) Consists of the accelerated amortization of an interest rate hedge
associated with the Series 2022-1 Senior Securitization Notes, which
was refinanced in October 2025.
(j) Represents valuation allowances on income tax carryforwards in certain
domestic jurisdictions that are not more likely than not to be
realized.
(k) Represents the tax impact of adjustments associated with the
reconciling items between net income from continuing operations and
Adjusted Net Income, excluding the provision for uncertain tax
positions and valuation allowance for certain deferred tax assets. To
determine the tax impact of the deductible reconciling items, we
utilized statutory income tax rates ranging from 9% to 36% depending
upon the tax attributes of each adjustment and the applicable
jurisdiction.
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
Three Months Ended Nine Months Ended
-------------------- -----------------------
September September September September
(in thousands) 27, 2025 28, 2024 27, 2025 28, 2024
--------- --------- ---------- -----------
Take 5 $107,307 $ 93,287 $ 316,378 $280,583
Franchise
Brands 49,734 50,196 139,560 151,989
Car Wash 15,030 16,000 66,715 56,200
Corporate and
Other (35,811) (27,540) (118,056) (90,592)
------- ------- -------- -------
Adjusted EBITDA $136,260 $131,943 $ 404,597 $398,180
======= ======= ======== =======
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)
Three Months Ended September 27, 2025
-----------------------------------------------------
Franchise Car Corporate
(in thousands) Take 5 Brands Wash and Other Total
-------- ---------- ------- ---------- ----------
System-wide Sales
Franchise stores $155,871 $1,086,892 $ -- $ -- $1,242,763
Company-operated
stores 255,749 4,720 -- 70,790 331,259
Independently
operated stores -- -- 51,410 -- 51,410
------- --------- ------ --------- ---------
Total
System-wide
Sales $411,620 $1,091,612 $51,410 $ 70,790 $1,625,432
======= ========= ====== ========= =========
Store Count (in
whole numbers)
Franchise stores 502 2,663 -- -- 3,165
Company-operated
stores 780 13 -- 213 1,006
Independently
operated stores -- -- 717 -- 717
------- --------- ------ --------- ---------
Total Store
Count 1,282 2,676 717 213 4,888
======= ========= ====== ========= =========
Three Months Ended September 28, 2024
-----------------------------------------------------
Franchise Car Corporate
(in thousands) Take 5 Brands Wash and Other Total
-------- ---------- ------- ---------- ----------
System-wide Sales
Franchise stores $118,846 $1,084,819 $ -- $ -- $1,203,665
Company-operated
stores 231,021 4,674 -- 63,103 298,798
Independently
operated stores -- -- 49,959 -- 49,959
------- --------- ------ --------- ---------
Total
System-wide
Sales $349,867 $1,089,493 $49,959 $ 63,103 $1,552,422
======= ========= ====== ========= =========
Store Count (in
whole numbers)
Franchise stores 425 2,653 -- -- 3,078
Company-operated
stores 695 13 -- 216 924
Independently
operated stores -- -- 719 -- 719
------- --------- ------ --------- ---------
Total Store
Count 1,120 2,666 719 216 4,721
======= ========= ====== ========= =========
Nine Months Ended September 27, 2025
-------------------------------------------------------
Corporate
Franchise and
(in thousands) Take 5 Brands Car Wash Other Total
---------- ---------- -------- --------- ----------
System-wide Sales
Franchise stores $ 441,678 $3,186,848 $ -- $ -- $3,628,526
Company-operated
stores 763,998 13,366 -- 201,306 978,670
Independently
operated stores -- -- 189,841 -- 189,841
--------- --------- ------- -------- ---------
Total System-wide
Sales $1,205,676 $3,200,214 $189,841 $ 201,306 $4,797,037
========= ========= ======= ======== =========
Store Count (in
whole numbers)
Franchise stores 502 2,663 -- -- 3,165
Company-operated
stores 780 13 -- 213 1,006
Independently
operated stores -- -- 717 -- 717
--------- --------- ------- -------- ---------
Total Store Count 1,282 2,676 717 213 4,888
========= ========= ======= ======== =========
Nine Months Ended September 28, 2024
-------------------------------------------------------
Corporate
Franchise and
(in thousands) Take 5 Brands Car Wash Other Total
---------- ---------- -------- --------- ----------
System-wide Sales
Franchise stores $ 340,424 $3,252,714 $ -- $ -- $3,593,138
Company-operated
stores 682,701 14,286 -- 187,957 884,944
Independently
operated stores -- -- 163,286 -- 163,286
--------- --------- ------- -------- ---------
Total System-wide
Sales $1,023,125 $3,267,000 $163,286 $ 187,957 $4,641,368
========= ========= ======= ======== =========
Store Count (in
whole numbers)
Franchise stores 425 2,653 -- -- 3,078
Company-operated
stores 695 13 -- 216 924
Independently
operated stores -- -- 719 -- 719
--------- --------- ------- -------- ---------
Total Store Count 1,120 2,666 719 216 4,721
========= ========= ======= ======== =========
View source version on businesswire.com: https://www.businesswire.com/news/home/20251104850553/en/
CONTACT: Shareholder/Analyst inquiries:
Steve Alexander
stephen.alexander@drivenbrands.com
(972) 467-6180
Media inquiries:
Taylor Blanchard
taylor.blanchard@drivenbrands.com
(704) 644-8129
(END) Dow Jones Newswires
November 04, 2025 07:15 ET (12:15 GMT)