Capital intensity remains a persistent drag on liquidity, with CapEx/Revenue ratios reaching 21.3% in 2025Q4, forcing a continued reliance on external financing.
| Cash from Operations | 314M | 330.54M | 241.45M | 228.57M | 197.18M | 283.83M | 83.99M | 41.37M | 38.75M |
| Operating CF Margin % | - | 17.75% | 10.32% | 9.92% | 9.7% | 19.34% | 9.29% | 6.89% | 7.87% |
| Operating CF Growth % | 219.44% | 36.9% | 5.63% | 15.92% | -30.53% | 237.95% | 103% | 6.76% | - |
| Net Income | 189.49M | 140.16M | -292.5M | -798.93M | 43.17M | 9.54M | -4.22M | 7.75M | 7.06M |
| Depreciation & Amortization | 130.17M | 152.13M | 188.38M | 177.53M | 147.16M | 112.78M | 62.11M | 24.22M | 19.85M |
| Stock-Based Compensation | 26.2M | 32.28M | 48.14M | 20.29M | 20.58M | 4.3M | 1.32M | 1.2M | 1.2M |
| Deferred Taxes | -3.08M | -20.38M | -66.59M | -138.12M | 20.57M | 9.87M | 3.94M | 3.17M | 2.29M |
| Other Non-Cash Items | 31.1M | 63.07M | 437.1M | 1.04B | 127.08M | 64.83M | 18.45M | 6.52M | 12.09M |
| Working Capital Changes | -24.12M | -36.71M | -73.08M | -68.63M | -161.39M | 82.51M | 2.38M | -1.49M | -3.73M |
| Change in Receivables | -10.74M | -18.4M | -37.4M | 16.13M | -71.17M | -31.93M | -11.54M | -7.17M | 2.15M |
| Change in Inventory | -1.96M | -1.48M | 2.62M | -3.77M | -22.71M | -5.72M | -2.9M | -5.45M | -269K |
| Change in Payables | -7.9M | 604K | 29.4M | 18M | -34.63M | 6.91M | -4.45M | 13.85M | -9.1M |
| Cash from Investing | 716.71M | 232.73M | 59.02M | -451.41M | -840.28M | -814.94M | -57.32M | -482.42M | -17.8M |
| Capital Expenditures | -191.85M | -222.77M | -288.5M | -596.48M | -436.2M | -160.76M | -52.46M | -28.23M | -22.16M |
| CapEx % of Revenue | 10.48% | 11.96% | 12.33% | 25.89% | 21.45% | 10.96% | 5.8% | 4.7% | 4.5% |
| Acquisitions | 722.47M | 269.4M | 296.15M | -49.59M | -737.87M | -798.31M | -105.03M | -454.19M | 4.36M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 186.1M | 186.1M | 51.37M | 194.66M | 333.8M | 144.13M | 100.17M | 0 | 4.36M |
| Cash from Financing | -1.02B | -564.97M | -302.84M | 170.29M | 343.37M | 885.54M | 118.64M | 446.53M | -9.49M |
| Debt Issued (Net) | -1.02B | -550.09M | -252.58M | 214.86M | 337.72M | 188.54M | 140.33M | 623.51M | 55.6M |
| Equity Issued (Net) | 0 | 0 | 0 | -43.84M | 0 | 718.19M | 2.61M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -163M | -52.99M |
| Share Repurchases | 0 | 0 | 0 | -49.96M | 0 | -43.04M | 0 | 0 | 0 |
| Other Financing | -3.76M | -14.88M | -50.26M | -326K | 5.65M | -21.2M | -24.29M | -13.98M | -12.11M |
| Net Change in Cash | -176.33M | 3.95M | -6.47M | -52.06M | -302.02M | 351.85M | 149.78M | 5.36M | 11.65M |
| Free Cash Flow | 122.15M | 107.77M | -47.06M | -367.91M | -239.03M | 123.07M | 31.53M | 13.14M | 16.59M |
| FCF Margin % | 6.67% | 5.79% | -2.01% | -15.97% | -11.76% | 8.39% | 3.49% | 2.19% | 3.37% |
| FCF Growth % | 11566.95% | 329.02% | 87.21% | -53.92% | -294.23% | 290.35% | 139.89% | -20.81% | - |
| FCF per Share | 0.74 | 0.66 | -0.29 | -2.27 | -1.43 | 0.75 | 0.19 | 0.08 | 0.10 |
| FCF Conversion (FCF/Net Income) | 0.64x | 2.36x | -0.83x | -0.31x | 4.57x | 29.47x | -20.00x | 5.35x | 5.49x |
| Interest Paid | 52.19M | 0 | 147.75M | 0 | 113.23M | 0 | 88.77M | 51.21M | 40.02M |
| Taxes Paid | 18.11M | 0 | 37.14M | 0 | 17.22M | 0 | 6.24M | 1.77M | 1.03M |
High leverage and volatility
As reported in financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 14.15 in 2024Q1 to -0.11 in 2024Q4, indicating that accounting earnings are currently poor proxies for the company's actual cash-generating capacity.
The extreme divergence between net income and operating cash flow suggests that significant non-cash charges, such as asset impairments or amortization, are heavily distorting the bottom line. Investors should monitor whether this disconnect persists, as it complicates the assessment of the company's true underlying profitability.
Based on recent SEC filings, DRVN's free cash flow trajectory is inconsistent, with margins fluctuating from a negative 16.4% in 2023Q4 to a positive 15.6% in 2025Q4, reflecting a business model that struggles to maintain a predictable conversion of revenue into discretionary cash.
The volatility in FCF margins appears to be driven by both inconsistent operating cash flow and lumpy capital expenditure requirements. This lack of stability suggests that the company's cash flow profile is highly sensitive to operational disruptions and the timing of its aggressive acquisition-led growth strategy.
According to historical data, DRVN's capital intensity remains elevated, with CapEx/Revenue ratios peaking at 21.3% in 2025Q4, which indicates that the company must reinvest a substantial portion of its top-line revenue just to maintain its existing service footprint and distribution network.
The high level of capital expenditure suggests that the company's service-heavy model requires constant reinvestment in real estate and equipment. This persistent capital demand may limit the company's ability to deleverage, especially given the current volatility in its operating cash flow generation.
As indicated by quarterly cash flow data, working capital changes have been frequently negative, including a significant $56.3M outflow in 2024Q2, suggesting that the company's cash conversion cycle is currently a drag on its overall liquidity position rather than a source of operational funding.
The recurring negative working capital adjustments imply that the company is struggling to optimize its inventory and receivables management effectively. This trend warrants further investigation, as it may indicate inefficiencies in the supply chain or a weakening ability to collect from franchisees and commercial accounts.
Based on reported figures, DRVN has prioritized inorganic growth, with net acquisition spending reaching $474.1M in 2026Q1, which significantly outweighs the company's ability to generate organic free cash flow and necessitates a reliance on external financing to sustain its expansionary business model.
The heavy reliance on acquisitions to drive growth appears to be a primary factor in the company's high debt-to-equity ratio. Investors should monitor whether this capital allocation strategy can continue to produce accretive returns, or if the debt burden will eventually force a pivot toward organic deleveraging.
Quick answers to the most common questions about buying DRVN stock.
Driven Brands Holdings Inc. (DRVN) generated $330.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Driven Brands Holdings Inc. (DRVN) generated $107.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Driven Brands Holdings Inc. (DRVN) spent $222.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.