Revenue growth remains highly inconsistent, highlighted by a 54.0% sequential decline in 2025Q4 and a gross margin contraction to -5.2% in the same period.
| Sales/Revenue | 1.83B | 1.86B | 2.34B | 2.3B | 2.03B | 1.47B | 904.2M | 600.27M | 492.71M |
| Revenue Growth % | -16.43% | -20.39% | 1.54% | 13.32% | 38.57% | 62.27% | 50.63% | 21.83% | - |
| Cost of Goods Sold | 1.04B | 1.03B | 1.11B | 1.27B | 1.07B | 742.27M | 346.96M | 223.68M | 286.89M |
| COGS % of Revenue | - | 55.04% | 47.63% | 55.21% | 52.41% | 50.59% | 38.37% | 37.26% | 58.23% |
| Gross Profit | 788.99M | 837.39M | 1.23B | 1.03B | 967.51M | 725.01M | 557.24M | 376.59M | 205.82M |
| Gross Margin % | 43.1% | 44.96% | 52.37% | 44.79% | 47.59% | 49.41% | 61.63% | 62.74% | 41.77% |
| Gross Profit Growth % | - | -31.65% | 18.71% | 6.67% | 33.45% | 30.11% | 47.97% | 82.97% | - |
| Operating Expenses | 522.87M | 606.28M | 1.37B | 1.72B | 767.91M | 547.95M | 462.51M | 306.57M | 147.65M |
| OpEx % of Revenue | - | 32.55% | 58.36% | 74.59% | 37.77% | 37.34% | 51.15% | 51.07% | 29.97% |
| Selling, General & Admin | 568.5M | 496.3M | 656.39M | 559.41M | 489.65M | 367.03M | 280.27M | 212.03M | 200.76M |
| SG&A % of Revenue | - | 26.65% | 28.06% | 24.28% | 24.08% | 25.01% | 31% | 35.32% | 40.75% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 109.98M | 709.01M | 1.16B | 278.26M | 180.92M | 182.25M | 94.54M | 21.89M |
| Operating Income | 266.12M | 231.11M | -140.23M | -686.53M | 199.6M | 177.06M | 94.73M | 70.02M | 58.17M |
| Operating Margin % | 14.54% | 12.41% | -5.99% | -29.8% | 9.82% | 12.07% | 10.48% | 11.66% | 11.81% |
| Operating Income Growth % | - | 264.81% | 79.57% | -443.95% | 12.73% | 86.92% | 35.29% | 20.38% | - |
| EBITDA | 402.34M | 312.97M | 48.15M | -509.31M | 346.76M | 289.84M | 156.84M | 94.24M | 78.01M |
| EBITDA Margin % | 21.98% | 16.8% | 2.06% | -22.11% | 17.05% | 19.75% | 17.35% | 15.7% | 15.83% |
| EBITDA Growth % | 657.32% | 549.97% | 109.45% | -246.88% | 19.64% | 84.8% | 66.43% | 20.8% | - |
| D&A (Non-Cash Add-back) | 136.22M | 81.86M | 188.38M | 177.22M | 147.16M | 112.78M | 62.11M | 24.22M | 19.85M |
| EBIT | 228.17M | 221.79M | -160.68M | -683.46M | 182.44M | 110.81M | 102.8M | 69.43M | 58.17M |
| Net Interest Income | -108.12M | -121.2M | -156.96M | -164.2M | -114.1M | -75.91M | -95.65M | -56.85M | -41.76M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 108.12M | 121.2M | 156.96M | 164.2M | 114.1M | 75.91M | 95.65M | 56.85M | 41.76M |
| Other Income/Expense | -138.17M | -111.88M | -177.41M | -161.12M | -131.26M | -142.17M | -87.57M | -57.44M | -48.3M |
| Pretax Income | 127.95M | 119.23M | -317.64M | -847.65M | 68.34M | 34.89M | 7.16M | 12.58M | 9.87M |
| Pretax Margin % | 6.99% | 6.4% | -13.58% | -36.79% | 3.36% | 2.38% | 0.79% | 2.1% | 2% |
| Income Tax | -10.47M | -12.84M | -25.14M | -102.69M | 25.17M | 25.36M | 11.37M | 4.83M | 2.81M |
| Effective Tax Rate % | -8.18% | -10.77% | 7.92% | 12.11% | 36.83% | 72.67% | 158.92% | 38.39% | 28.43% |
| Net Income | 189.49M | 140.16M | -292.5M | -744.96M | 43.19M | 9.63M | -4.2M | 7.73M | 7.06M |
| Net Margin % | 10.35% | 7.53% | -12.5% | -32.33% | 2.12% | 0.66% | -0.46% | 1.29% | 1.43% |
| Net Income Growth % | 165.06% | 147.92% | 60.74% | -1824.93% | 348.38% | 329.39% | -154.31% | 9.47% | - |
| Net Income (Continuing) | 138.41M | 132.07M | -292.5M | -744.96M | 43.17M | 9.54M | -4.22M | 7.75M | 7.06M |
| Discontinued Operations | 1000K | 8.09M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 644K | 631K | 1.1M | 2.12M | 1.46M | 0 |
| EPS (Diluted) | 1.15 | 0.85 | -1.82 | -4.53 | 0.25 | 0.06 | -0.02 | 0.05 | 0.04 |
| EPS Growth % | 162.77% | 146.7% | 59.82% | -1912% | 316.67% | 342.91% | -152.67% | 9.32% | - |
| EPS (Basic) | - | 0.85 | -1.79 | -4.50 | 0.26 | 0.06 | -0.02 | 0.05 | 0.04 |
| Diluted Shares Outstanding | 164.64M | 163.85M | 160.32M | 161.92M | 166.74M | 164.64M | 169.99M | 164.71M | 164.71M |
| Basic Shares Outstanding | 164.16M | 162.84M | 160.32M | 161.92M | 162.76M | 160.68M | 169.99M | 164.71M | 164.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 2108.39% | 750.31% |
High leverage and volatility
According to reported financial statements, DRVN's revenue trajectory remains highly inconsistent, evidenced by a sharp 54.0% sequential decline in 2025Q4, which suggests that the company's top-line performance is currently struggling to maintain a stable growth cadence amidst ongoing operational adjustments and potential divestiture activity.
The erratic revenue patterns indicate that the company's reliance on a mix of franchised and company-owned units creates significant top-line noise. Investors should monitor whether these fluctuations represent a permanent contraction in the car wash segment or merely a strategic rebalancing of the store portfolio.
Based on the provided income statement data, DRVN experienced a notable gross margin contraction to -5.2% in 2025Q4, a stark departure from the historical 50%+ levels, which warrants further investigation into whether this reflects temporary accounting anomalies or a fundamental erosion of the company's pricing power.
The collapse in gross margin during the most recent period suggests that the cost of goods sold is becoming increasingly difficult to manage against fluctuating revenue. This volatility implies that the company's vertical integration strategy may not be providing the expected insulation against inflationary pressures or operational inefficiencies.
As reported in recent filings, DRVN's operating income has exhibited extreme volatility, swinging from a massive loss of $318.8M in 2024Q4 to a profit of $96.3M in 2026Q1, indicating that the company's cost structure lacks the necessary predictability to support consistent operating leverage.
The wide variance in operating margins suggests that corporate overhead and SG&A expenses are not scaling efficiently with revenue. This lack of operational discipline may indicate that the multi-brand platform is becoming increasingly complex and costly to manage, potentially hindering long-term profitability targets.
Based on the provided figures, DRVN's net income has been subject to significant swings, including a $312.0M loss in 2024Q4, which suggests that non-operating items and potential asset impairments are heavily distorting the underlying earnings quality and making it difficult to assess true recurring profitability.
The persistent use of stock-based compensation, which reached $11.8M in 2025Q1, further complicates the earnings picture by diluting shareholders while the company struggles to maintain consistent bottom-line growth. Investors should be wary of relying on EPS figures until the company demonstrates a period of sustained, non-volatile net income.
Data from the income statement suggests that DRVN's aggressive roll-up strategy may be reaching a point of diminishing returns, as evidenced by the recent revenue contraction and the high debt-to-equity ratio of 3.47, which could limit future growth and increase the risk of financial distress.
Short-sellers may focus on the company's inability to maintain consistent margins across its diverse segments, particularly in the car wash business. The reliance on debt to fuel inorganic growth appears to be a significant vulnerability that could be exacerbated by any further downturn in consumer spending.
Quick answers to the most common questions about buying DRVN stock.
For fiscal year 2025, Driven Brands Holdings Inc. (DRVN) reported total revenue of $1.86B. This represents a 278.0% increase compared to $492.7M in 2018.
Driven Brands Holdings Inc. (DRVN) is profitable, generating $140.2M in net income for the fiscal year ending 2025 with a net profit margin of 7.5%.
Driven Brands Holdings Inc. (DRVN) reported an operating income of $231.1M, resulting in an operating profit margin of 12.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Driven Brands Holdings Inc. (DRVN) generated $837.4M in gross profit for the year, representing a gross profit margin of 45.0%. This demonstrates the company's core pricing power and production efficiency.