Driven Brands (DRVN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 6.8% year-over-year to $507.4 million, driven by positive same-store sales growth and continued expansion, especially in Take 5 and Franchise Brands segments.

• Net income from continuing operations increased to $37.3 million ($0.23 per diluted share), up from $16.4 million ($0.10 per diluted share) year-over-year, mainly due to sales growth and lower interest expense.

• Adjusted EBITDA for Q2 2026 was $107 million, down 7% year-over-year, primarily due to $11.8–$12 million in non-recurring restatement-related costs.

• Added 192 net new stores over the last 12 months, growing total footprint by 5% to over 4,300 locations.

• The company reiterated its fiscal year 2026 outlook and remains focused on scaling Take 5, generating cash flow, and reducing leverage.

Financial highlights

• Systemwide sales for Q2 2026 reached $1.63 billion, up 5% year-over-year, with consolidated same-store sales up 1.4%.

• Net income from continuing operations was $37.3 million; adjusted net income was $48.2 million; adjusted diluted EPS was $0.29.

• Adjusted EBITDA for Q2 2026 was $107 million, down from $115 million in Q2 2025, impacted by non-recurring restatement costs.

• Free cash flow for Q2 was $44.7 million, up $13.2 million year-over-year.

• Operating expenses as a percentage of revenue decreased to 85.6% in Q2 2026 from 90.1% in Q2 2025, mainly due to lower SG&A expenses.

Outlook and guidance

• Fiscal year 2026 revenue expected between $1.95 and $2.05 billion; Adjusted EBITDA between $430 and $460 million, trending toward the lower end due to macro pressures and non-recurring costs.

• Adjusted diluted EPS expected at $1.15–$1.25; free cash flow guidance of $125–$145 million.

• Same-store sales growth projected flat to 2%; net new unit growth of 160–190 units.

• Management expects continued pressure from lower-income consumers and macroeconomic uncertainty in the second half of 2026.

• Ongoing non-recurring costs related to the restatement and remediation efforts are anticipated throughout 2026.