Driven Brands Holdings Inc. has announced a restatement of its previously issued consolidated financial statements for the fiscal years 2024 and 2023, along with interim periods in 2024 and 2025. This decision, made by the Audit Committee after consulting with management, was due to the identification of material errors during the preparation of the 2025 year-end financial statements. The restatement primarily addresses errors related to cash adjustments, accounts payable, accounts receivable, and lease accounting. The impact of the Restatement on net income in 2023, 2024, and through the end of the third quarter of 2025 were reductions of $54 million, $5 million, and $5 million, respectively and reductions of $57 million, $12 million, and $8 million on Adjusted EBITDA in 2023, 2024 and through the end of the third quarter of 2025, respectively.
Driven Brands reported net revenue of $1.9 billion for the year ended December 27, 2025, an increase of 6% compared to $1.8 billion in the prior year. This growth was driven by same-store sales increases of 7.9% and 6.2% in the Auto Glass Now and Take 5 segments, respectively, and the addition of 175 net new stores, primarily within the Take 5 segment. Partially offsetting these gains were the absence of $45 million in revenue from the divested Canadian distribution business and a 1.1% decline in same-store sales within the Franchise Brands segment. The company recognized net income from continuing operations of $132 million, or $0.80 per diluted share, a significant increase from less than $1 million in the previous year.
Strategic shifts included the sale of the U.S. Car Wash business in April 2025 for $385 million, followed by the sale of the International Car Wash (ICW) business in January 2026 for $490 million. These divestitures led to a resegmentation of the company's reporting structure, now comprising Take 5, Franchise Brands, and Auto Glass Now. The company's focus remains on deleveraging its balance sheet, with proceeds from the car wash sales used to reduce debt. As of December 27, 2025, the company had agreements to open over 1,000 new franchised units, which provides visibility into future franchise unit growth.
Key operational developments included a focus on deleveraging the balance sheet and leveraging the strength of the platform to enhance margins for franchised and company-operated locations. The company-operated store strategy involves executing a simple operating model and standardizing practices across brands. As of December 27, 2025, the company employed approximately 7,100 full-time employees. The company also identified material weaknesses in its internal control over financial reporting, including a lack of sufficient accounting resources and ineffective controls related to account reconciliations, leases, intercompany transactions, and manual journal entries.
Looking ahead, Driven Brands anticipates continued unit growth within Take 5, supported by its franchised and company-operated location pipeline. The company also plans to expand and capture additional market share through Auto Glass Now by increasing the number of mobile vans and building additional stores. The company's focus remains on deleveraging the balance sheet by prioritizing debt repayment. The company is also working to remediate the identified material weaknesses in its internal control over financial reporting.
About Driven Brands Holdings Inc.
Driven Brands Holdings Inc. is North America's largest automotive services company, offering a diversified platform of franchise and company-operated locations. Its core activities include vehicle maintenance, paint, collision, glass repair, and car washes, serving retail and commercial customers. The company leverages strong brands, data-driven marketing, procurement scale, and franchise support to deliver consistent revenue, high margins, and growth in a fragmented industry.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.