Driven Brands Holdings Inc. reported financial results for the first quarter ended March 28, 2026, with adjusted earnings per share of $0.30, beating the analyst consensus estimate of $0.25. This represents an 11.11% increase over earnings of $0.27 per share from the same period last year. Revenue increased 8% to $484.4 million, though this figure missed the analyst consensus estimate of $486.480 million by 0.42%. The automotive services company achieved system-wide sales of $1.6 billion, driven by a 2% increase in same store sales and a 5% increase in store count. Net income from continuing operations rose to $23.8 million, or $0.14 per diluted share, compared to $13.5 million, or $0.08 per diluted share, in the prior year.

Adjusted EBITDA increased 2% to $104.1 million, which included $9.1 million of restatement-related, non-recurring costs. The company ended the quarter with a net leverage ratio of 3.2x Adjusted EBITDA and total liquidity of $804 million. Driven Brands reiterated its fiscal year 2026 outlook, projecting revenue of ~$1.95 - $2.05 billion and Adjusted EBITDA of ~$430 - $460 million.

First Quarter 2026 Key Performance Indicators by Segment

Fiscal Year 2026 Outlook

The company continues to expect fiscal 2026 same store sales growth in the range of flat to 2% and net store growth of approximately 160 to 190. Driven Brands expects to generate between $125 million and $145 million of free cash flow in fiscal year 2026.

Driven Brands Holdings Inc. received a notice from The Nasdaq Stock Market LLC on June 1, 2026, indicating it is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Quarterly Report on Form 10-Q for the period ended March 28, 2026. The notice does not immediately affect the listing or trading of the company's common stock. The delay stems from a previously announced restatement of prior period financial statements and the associated delay in filing its 2025 Form 10-K, which was submitted on May 19, 2026.

Compliance Timeline

Nasdaq listing rules require timely filing of all periodic reports with the Securities and Exchange Commission. Driven Brands has 60 calendar days from the notice, or until July 31, 2026, to submit a plan of compliance to Nasdaq. The exchange has the discretion to grant the company up to 180 calendar days from the original due date of the 2026 Form 10-Q, or until November 25, 2026, to regain compliance.

Financial Reporting Status

The company is currently working to complete its financial reporting and expects to file the 2026 Form 10-Q as soon as practicable. The restatement of prior financial statements and the delayed 2025 Form 10-K filing are the primary reasons for the current reporting gap. Driven Brands operates over 4,200 locations across the U.S. and Canada, generating approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales as of the end of fiscal year 2025.