Driven Brands Holdings Inc. Reports Third Quarter 2025 Results

CHARLOTTE, N.C.--( BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the third quarter ending September 27, 2025.

“Driven Brands delivered another strong quarter, highlighted by continued growth in our Take 5 business,” said Danny Rivera, President and CEO.

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 millions)

Store Count

Same Store

Sales 2

Revenue

(in millions)

Adjusted EBITDA

(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.

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.

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 ™, 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 ®, Meineke Car Care Centers ®, Maaco ®, 1-800-Radiator & A/C ®, Auto Glass Now ®, and CARSTAR ®. 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 share amounts)

September 27,

2025

September 28,

2024

September 27,

2025

September 28,

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

(in thousands)

September 27,

2025

September 28,

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

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 data)

September 27,

2025

September 28,

2024

September 27,

2025

September 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

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

(in thousands)

September 27,

2025

September 28,

2024

September 27,

2025

September 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

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.

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.

Includes non-cash amortization expenses relating to cloud computing arrangements.

Represents non-cash share-based compensation expense.

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.

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.

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.

Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statement of operations.

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.

Represents valuation allowances on income tax carryforwards in certain domestic jurisdictions that are not more likely than not to be realized.

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

(in thousands)

September 27,

2025

September 28,

2024

September 27,

2025

September 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

(in thousands)

Take 5

Franchise

Brands

Car Wash

Corporate 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

—

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

(in thousands)

Take 5

Franchise

Brands

Car Wash

Corporate

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

—

216

924

Independently operated stores

—

719

—

719

Total Store Count

1,120

2,666

719

216

4,721

Nine Months Ended September 27, 2025

(in thousands)

Take 5

Franchise

Brands

Car Wash

Corporate

and 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

—

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

(in thousands)

Take 5

Franchise

Brands

Car Wash

Corporate

and 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

—

216

924

Independently operated stores

—

719

—

719

Total Store Count

1,120

2,666

719

216

4,721