Driven Brands Holdings Inc. will not meet its April 26 target to file its 2025 annual report and has received a notice of deficiency from Nasdaq, the company said on April 21. The release included preliminary, unaudited results for Q4 and full-year 2025 and for Q1 2026.
It is the first financial information from Driven Brands since its Feb. 23 audit committee conclusion that previously issued financial statements contained material errors, triggering the restatement that has delayed the 10-K. Driven Brands is parent to collision and paint brands CARSTAR, Fix Auto USA, Abra, and Maaco, along with Auto Glass Now.
Preliminary 2025 and Q1 2026 numbers
For fiscal 2025, Driven Brands reported revenue between $1.85 billion and $1.86 billion, adjusted EBITDA between $440 million and $450 million, and net unit growth of 175 locations. Same-store sales across the portfolio excluding Take 5 grew between 0.95% and 1.00% for the year, with Q4 between 0.3% and 0.5%. Take 5 Oil Change, reported as a separate segment, posted full-year same-store sales between 6.1% and 6.2%.
For Q1 2026, non-Take 5 same-store sales grew between 1.9% and 2.1%, on revenue between $475 million and $485 million. Adjusted EBITDA for the quarter will be lower than last year because of restatement expenses.
Cash and cash equivalents totaled approximately $130 million as of March 28, with credit facilities undrawn. Total net debt was approximately $1.6 billion at the end of Q1, down from approximately $2.1 billion at year-end 2025.
All figures exclude the divested U.S. and international car wash businesses.
June 15 deadline replaces April 26 target
Driven Brands had previously targeted April 26 for the 2025 Form 10-K filing, a 15-day extension from the original deadline. It no longer expects to meet that date. Under Nasdaq listing rules, the company has until June 15 to submit a plan to regain compliance and currently expects to file the 10-K on or before that date. The Q1 2026 Form 10-Q will also be late.
Management has identified material weaknesses in its financial reporting and disclosure controls. Further detail is expected in the 2025 Form 10-K when filed.
Ongoing operations and next milestones
The preliminary numbers show modest same-store sales growth across Driven Brands' collision, paint, franchise, and glass operations, with liquidity and debt both improved during Q1. What the final restated numbers will show, and whether the identified material weaknesses touch reporting areas relevant to franchisees, will not be known until the 10-K is filed.
Driven Brands said it will limit communications on the restatement to required public disclosures. The securities class actions filed against the company in March are pending, with a lead plaintiff motion deadline of May 8.
