Driven Brands (DRVN) Q1 2026 earnings summary

Executive summary

• Revenue grew 8% year-over-year to $484.4 million in Q1 2026, with system-wide sales up 6% to $1.6 billion and same-store sales up 2%.

• Net income from continuing operations rose to $24 million ($0.14 per diluted share), with Adjusted Net Income at $49 million ($0.30 per share), and Adjusted EBITDA up 2% to $104.1 million.

• Take 5 Oil Change achieved its 23rd consecutive quarter of same-store sales growth, with strong operational execution and margin expansion.

• Net leverage improved to 3.2x Adjusted EBITDA, with a target of 3x by year-end and a focus on strengthening the financial foundation.

• A new Chief Marketing Officer was appointed to centralize and enhance marketing capabilities.

Financial highlights

• Q1 revenue was $484.4 million, up 8.2% year-over-year; system-wide sales reached $1.6 billion, up 5.8%.

• Operating income increased $12.7 million to $67.4 million; adjusted EBITDA rose 1.7% to $104.1 million.

• Adjusted net income from continuing operations was $49 million; adjusted diluted EPS was $0.30.

• Free cash flow for Q1 2026 was $57.2 million, with $804 million in total liquidity at quarter-end.

• Franchise royalties and fees increased 6% to $47 million, company-operated store sales rose 7% to $337 million, and supply and other revenue grew 12% to $71 million.

Outlook and guidance

• Full-year 2026 guidance reiterated: revenue of $1.95–$2.05 billion, adjusted EBITDA of $430–$460 million, same-store sales flat to 2%, and 160–190 net new units.

• Adjusted diluted EPS projected at $1.15–$1.25 for 2026.

• Net capital expenditures expected at approximately 6.5% of revenue; free cash flow projected at $125–$145 million.

• Q2 expected to see moderation in sales growth across brands, with Take 5 same-store sales growth in the mid-3% range.

• Liquidity remains strong with $804 million available, including $133 million in cash and $671 million in undrawn credit capacity.