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Get filing alertsStanding Risk Factors
- Material Weakness (existing) — Company continues remediation of material weaknesses in internal controls over financial reporting, diverting management resources from strategic priorities.
- Restatement (existing) — Company has restated certain previously issued consolidated financial statements, with Q2 results absorbing $11.8M in non-recurring restatement-related costs.
Driven Brands reports Q2 revenue up 7% to $507M, guides Adjusted EBITDA to low end of range
Filed August 6, 2026 · Period ending August 6, 2026 · ~1 min read
Key Changes
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high
Q2 revenue rose 7% YoY to $507.4M with net income from continuing operations more than doubling to $37.3M ($0.23/share), though Adjusted EBITDA fell 7% to $107M due to $11.8M in restatement-related costs.
Exhibit 99.1 view on EDGAR → -
high
Management now expects FY 2026 Adjusted EBITDA at the low end of $430-$460M range, citing consumer uncertainty, Middle East conflict impacts, and restatement costs expected at the high end of $35-$45M.
Exhibit 99.1 view on EDGAR → -
high
Take 5 delivered 3.6% same-store sales growth in Q2, marking its 24th consecutive quarter of positive comps despite challenging consumer conditions.
Exhibit 99.1 view on EDGAR → -
medium
Net leverage improved to 3.1x Adjusted EBITDA, approaching management's 3x target and reflecting progress on balance sheet deleveraging.
Exhibit 99.1 view on EDGAR → -
medium
Company regained Nasdaq listing compliance on June 12, 2026, following filing of Q1 2026 Form 10-Q, resolving prior non-compliance related to delayed filings.
Exhibit 99.1 view on EDGAR →
Summary
Driven Brands delivered mixed Q2 2026 results, with revenue growth of 7% to $507.4 million and net income from continuing operations more than doubling year-over-year to $37.3 million. However, Adjusted EBITDA declined 7% to $107 million, weighed down by $11.8 million in non-recurring restatement-related costs. The company's flagship Take 5 oil-change business showed resilience with 3.6% same-store sales growth—its 24th consecutive quarter of positive comps—but management now expects full-year Adjusted EBITDA at the low end of guidance due to consumer headwinds and restatement expenses tracking toward the high end of the $35-$45 million range.
The ongoing restatement process and material weaknesses in internal controls remain significant concerns for investors. These issues continue to consume management bandwidth and financial resources that would otherwise support growth initiatives. While the company regained Nasdaq listing compliance in June and improved its net leverage ratio to 3.1x, the combination of elevated restatement costs, persistent internal control deficiencies, and a cautious outlook on consumer spending creates uncertainty around near-term profitability and operational execution.
Section-by-Section Diff
Event · Exhibit 99.1
Driven Brands reported Q2 2026 results with 6.8% revenue growth to $507.4M, 1.4% same-store sales growth, and reiterated full-year guidance.
Added in current filing · view on EDGAR →
For the second quarter, Driven Brands delivered revenue of $507.4 million, an increase of 7% versus the prior year. System-wide sales increased 5% to $1.6 billion, driven by a 1% increase in same store sales and 5% increase in store count versus the prior year.
Net income from continuing operations was $37.3 million or $0.23 per diluted share versus $16.4 million or $0.10 per diluted share in the prior year. Adjusted Net Income ... was $48.2 million or $0.29 per diluted share versus $48.9 million or $0.30 per diluted share in the prior year. Adjusted EBITDA ... , which included $11.8 million of non-recurring, restatement-related costs, was $107.0 million, a decrease of 7% versus the prior year.
Driven Brands reported Q2 2026 revenue of $507.4 million, up 7% year-over-year, with system-wide sales of $1.6 billion. Net income from continuing operations more than doubled to $37.3 million ($0.23 per diluted share) from $16.4 million ($0.10 per diluted share) in the prior year. However, Adjusted EBITDA declined 7% to $107.0 million, impacted by $11.8 million in non-recurring restatement-related costs.
Added in current filing · view on EDGAR → · paraphrased
The Company reiterates its financial outlook ranges for fiscal year 2026 as follows: Revenue ~$1.95 - $2.05 billion, Adjusted EBITDA ~$430 - $460 million, Adjusted Diluted EPS ~$1.15 - $1.25. The Company expects fiscal year 2026 Adjusted EBITDA to be at the low end of its outlook range, reflecting continued uncertainty with lower-income consumers and the conflict in the Middle East, as well as its expectation for the non-recurring, restatement-related costs to come in at the high end of its $35 million to $45 million range.
Driven Brands reiterated its full-year 2026 guidance ranges for revenue ($1.95-$2.05 billion), Adjusted EBITDA ($430-$460 million), and Adjusted Diluted EPS ($1.15-$1.25). However, management now expects Adjusted EBITDA to land at the low end of the range due to consumer uncertainty, Middle East conflict impacts, and restatement-related costs expected at the high end of the $35-$45 million range.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 7, 2026 · How we verify