Revenue growth is distorted by a $67.0B anomaly in 2026Q2, while underlying quarterly revenues declined from $591.7M in 2024Q3 to $484.4M in 2026Q1, and gross margins swung from 58.8% in 2024Q1 to -5.2% in 2025Q4, indicating severe pricing and cost pressures.
Driven Brands Holdings Inc. (DRVN) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 1.79B | 1.86B | 1.75B | 1.71B | 2.03B | 1.47B | 904.2M | 600.27M | 492.71M |
| Revenue Growth % | -10.16% | 6.27% | 2.48% | -15.89% | 38.57% | 62.27% | 50.63% | 21.83% | - |
| Cost of Goods Sold | 882.52M | 916.27M | 848.68M | 901.52M | 1.07B | 742.27M | 346.96M | 223.68M | 286.89M |
| COGS % of Revenue | - | 49.2% | 48.43% | 52.72% | 52.41% | 50.59% | 38.37% | 37.26% | 58.23% |
| Gross Profit | 904.62M | 946.16M | 903.8M | 808.52M | 967.51M | 725.01M | 557.24M | 376.59M | 205.82M |
| Gross Margin % | 50.62% | 50.8% | 51.57% | 47.28% | 47.59% | 49.41% | 61.63% | 62.74% | 41.77% |
| Gross Profit Growth % | - | 4.69% | 11.78% | -16.43% | 33.45% | 30.11% | 47.97% | 82.97% | - |
| Operating Expenses | 604.27M | 686.93M | 647.44M | 569.53M | 767.91M | 547.95M | 462.51M | 306.57M | 147.65M |
| OpEx % of Revenue | - | 36.88% | 36.94% | 33.3% | 37.77% | 37.34% | 51.15% | 51.07% | 29.97% |
| Selling, General & Admin | 546.98M | 605.07M | 568.45M | 492.95M | 489.65M | 367.03M | 280.27M | 212.03M | 200.76M |
| SG&A % of Revenue | - | 32.49% | 32.44% | 28.83% | 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 | 81.86M | 78.99M | 76.58M | 278.26M | 180.92M | 182.25M | 94.54M | 21.89M |
| Operating Income | 300.35M | 259.24M | 256.36M | 239M | 199.6M | 177.06M | 94.73M | 70.02M | 58.17M |
| Operating Margin % | 16.81% | 13.92% | 14.63% | 13.98% | 9.82% | 12.07% | 10.48% | 11.66% | 11.81% |
| Operating Income Growth % | - | 1.12% | 7.26% | 19.74% | 12.73% | 86.92% | 35.29% | 20.38% | - |
| EBITDA | 420.5M | 411.37M | 448.59M | 416.53M | 346.76M | 289.84M | 156.84M | 94.24M | 78.01M |
| EBITDA Margin % | 23.53% | 22.09% | 25.6% | 24.36% | 17.05% | 19.75% | 17.35% | 15.7% | 15.83% |
| EBITDA Growth % | 23.84% | -8.3% | 7.7% | 20.12% | 19.64% | 84.8% | 66.43% | 20.8% | - |
| D&A (Non-Cash Add-back) | 120.15M | 152.13M | 192.23M | 177.53M | 147.16M | 112.78M | 62.11M | 24.22M | 19.85M |
| EBIT | 257.6M | 240.43M | 182.08M | 119.25M | 182.44M | 110.81M | 102.8M | 69.43M | 58.17M |
| Net Interest Income | -97.55M | -121.2M | -156.99M | -160.4M | -114.1M | -75.91M | -95.65M | -56.85M | -41.76M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 97.55M | 121.2M | 156.99M | 160.4M | 114.1M | 75.91M | 95.65M | 56.85M | 41.76M |
| Other Income/Expense | -140.31M | -140.01M | -231.26M | -280.14M | -131.26M | -142.17M | -87.57M | -57.44M | -48.3M |
| Pretax Income | 160.04M | 119.23M | 25.09M | -41.15M | 68.34M | 34.89M | 7.16M | 12.58M | 9.87M |
| Pretax Margin % | 8.96% | 6.4% | 1.43% | -2.41% | 3.36% | 2.38% | 0.79% | 2.1% | 2% |
| Income Tax | -3.83M | -12.84M | 24.55M | 5.64M | 25.17M | 25.36M | 11.37M | 4.83M | 2.81M |
| Effective Tax Rate % | -2.4% | -10.77% | 97.82% | -13.7% | 36.83% | 72.67% | 158.92% | 38.39% | 28.43% |
| Net Income | 176.17M | 140.16M | -297.45M | -798.93M | 43.19M | 9.63M | -4.2M | 7.73M | 7.06M |
| Net Margin % | 9.86% | 7.53% | -16.97% | -46.72% | 2.12% | 0.66% | -0.46% | 1.29% | 1.43% |
| Net Income Growth % | 167% | 147.12% | 62.77% | -1949.89% | 348.38% | 329.39% | -154.31% | 9.47% | - |
| Net Income (Continuing) | 163.88M | 132.07M | 546K | -46.78M | 43.17M | 9.54M | -4.22M | 7.75M | 7.06M |
| Discontinued Operations | -1000K | 8.09M | -298M | -752.15M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 644K | 631K | 1.1M | 2.12M | 1.46M | 0 |
| EPS (Diluted) | 1.07 | 0.85 | -1.82 | -4.53 | 0.25 | 0.06 | -0.02 | 0.05 | 0.04 |
| EPS Growth % | 162.35% | 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 | 164.94M | 163.85M | 160.32M | 161.92M | 166.74M | 164.64M | 169.99M | 164.71M | 164.71M |
| Basic Shares Outstanding | 164.48M | 162.84M | 160.32M | 161.92M | 162.76M | 160.68M | 169.99M | 164.71M | 164.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 2108.39% | 750.31% |
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 $259.2M, resulting in an operating profit margin of 13.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Driven Brands Holdings Inc. (DRVN) generated $946.2M in gross profit for the year, representing a gross profit margin of 50.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue volatility and negative gross margin
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Instability
Driven Brands' revenue swung from $591.7M in 2024Q3 to $67.0B in 2026Q2, a 120.5% reported growth, but excluding that outlier, quarterly revenues have declined sequentially, suggesting inconsistent demand trends.
The 2026Q2 revenue figure of $67.0B appears anomalous relative to the $484.4M reported in 2026Q1, likely reflecting a data error or a one-time event, as it implies a 13,700% sequential jump. Excluding that outlier, revenues have contracted from $591.7M in 2024Q3 to $484.4M in 2026Q1, a cumulative decline of 18.1%, indicating a decelerating core business. The negative growth rates in 2025Q3 (-9.5%) and 2025Q4 (-54.0%) further suggest that the company is struggling to maintain its top line, possibly due to reduced consumer spending or competitive pressures.
Gross Margin Collapse Signals Pricing Pressure
Gross margin deteriorated from 58.8% in 2024Q1 to -5.2% in 2025Q4, with the latest quarter showing 30.7% but distorted by the $67B revenue figure, indicating severe cost or pricing issues.
The gross margin trend is alarming: it fell from a healthy 58.8% in 2024Q1 to 51.5% in 2026Q1, but the 2025Q4 gross profit was negative at -$13.4M, implying that COGS exceeded revenue by 5.2% of sales. This negative margin suggests either a massive inventory write-down, a one-time cost spike, or a fundamental breakdown in pricing power, which is inconsistent with the peer average gross margin of 35% for Monro. The recovery to 30.7% in 2026Q2 is likely an artifact of the revenue outlier, so investors should treat the underlying margin trend as deteriorating, not improving.
Operating Leverage Inverted by Fixed Costs
Operating income swung from -$318.8M in 2024Q4 to $96.3M in 2026Q1, but the operating margin has been volatile, ranging from -56.5% to 26.9%, indicating that SG&A costs are not scaling with revenue.
The operating leverage is clearly negative: as revenue declined from $591.7M in 2024Q3 to $259.6M in 2025Q4, operating income fell from $39.5M to $69.8M (a gain), but the 2024Q4 operating loss of -$318.8M suggests a massive impairment or restructuring charge that distorted the trend. In 2025Q4, operating income of $69.8M on revenue of $259.6M implies a 26.9% operating margin, which is unusually high and may reflect cost-cutting, but the subsequent 2026Q1 margin of 19.9% is more moderate. The SG&A line has been relatively sticky, ranging from $53.5M to $210.2M, which means that when revenue drops, operating margins compress sharply, as seen in 2025Q2 when SG&A was 38.1% of revenue.
Earnings Quality Clouded by Non-Recurring Items
Net income swung from -$312.0M in 2024Q4 to $9.5B in 2026Q2, but the 2026Q2 figure is implausible given the $67B revenue, and the 2025Q1 net income of $5.5M on $516.2M revenue implies a thin 1.1% net margin.
The earnings quality is poor due to extreme volatility: net income ranged from -$312.0M in 2024Q4 to $60.9M in 2025Q3, with the 2024Q4 loss likely driven by a goodwill impairment or tax valuation allowance, as evidenced by the -55.3% net margin. The 2026Q2 net income of $9.5B is clearly an outlier, likely a data error, and should be disregarded for analysis. Stock-based compensation has been consistently around $4-13M per quarter, which is modest relative to revenue but adds to the dilution pressure, as seen in the EPS swings from -$1.94 to $0.37.
COGS and SG&A Volatility Undermine Cost Discipline
COGS as a percentage of revenue has fluctuated from 41.2% in 2024Q1 to 105.2% in 2025Q4, while SG&A has ranged from 20.6% to 38.1% of revenue, indicating inconsistent cost management.
The cost structure is highly unstable: COGS jumped to 105.2% of revenue in 2025Q4, meaning the company sold products below cost, which is unsustainable and suggests a possible inventory liquidation or supply chain disruption. SG&A expenses have not been well controlled, as they rose to $210.2M in 2025Q2 (38.1% of revenue) from $144.7M in 2024Q2, a 45% increase despite revenue declining, indicating poor overhead discipline. The lack of R&D spending (zero in all quarters) is typical for a service-oriented auto dealership, but the focus on cost control appears to be reactive rather than proactive, given the margin swings.
2024Q4 Loss Marks a Structural Turning Point
The 2024Q4 operating loss of -$318.8M and net loss of -$312.0M represent a clear inflection point, likely driven by a major impairment or restructuring, which reset the company's earnings base.
The 2024Q4 quarter was a watershed: operating income collapsed to -$318.8M from $90.1M in 2024Q2, and the net loss of -$312.0M was the largest in the period, suggesting a one-time charge that may have been a goodwill impairment or asset write-down. This inflection appears to have reset the company's cost base, as subsequent quarters in 2025 showed improved operating margins (11.6% in 2025Q3) but still negative revenue growth. The lasting impact is that the company's earnings power is now lower, with net income in 2025Q1 at just $5.5M, indicating that the pre-2024Q4 profitability levels may not be recoverable without a significant revenue rebound.
Revenue Anomaly Masks Fundamental Weakness
The $67B revenue in 2026Q2 is a clear data anomaly that, if excluded, reveals a company with declining revenue, negative gross margins, and volatile earnings, which short-sellers would target.
The most compelling bear case is that the reported 2026Q2 revenue of $67.0B is not credible, and once removed, the company's revenue has declined for five consecutive quarters, from $591.7M in 2024Q3 to $484.4M in 2026Q1. The negative gross margin in 2025Q4 and the massive operating loss in 2024Q4 suggest that the company may be facing structural demand destruction or competitive pressures that are not yet resolved. Furthermore, the inconsistent cost behavior, with SG&A rising even as revenue falls, indicates that management may be unable to control expenses, leading to margin compression that could persist. Investors should monitor whether the company can stabilize revenue growth and restore gross margins to the 50%+ levels seen in early 2024, as the current trajectory appears unsustainable.