Driven Brands Holdings Inc. Reports Second Quarter 2026 Results

About this update from Driven Brands Holdings Inc.

Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the second quarter ending June 27, 2026. 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 1 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 1 , which included $11.8 million of non-recurring, restatement-related costs, was $107.0 million, a decrease of 7% versus the prior year. “Our results this quarter reflect the strength of our diversified, non-discretionary portfolio,” said Danny Rivera, President and Chief Executive Officer. “Revenue grew 7%, every segment delivered positive same store sales growth, and Take 5 extended its streak to 24 consecutive quarters of positive same store sales growth, including 3.6% growth this quarter. We also moved closer to our 3x leverage target, ending the quarter at 3.1x.” “We are reiterating our full-year 2026 outlook ranges and remain focused on scaling Take 5, generating consistent cash flow, and further reducing leverage. We are operating in a dynamic consumer environment and are managing the business with appropriate discipline. Our resilient portfolio, strong balance sheet, and focus on execution position us well to navigate uncertain market conditions and deliver long-term shareholder value,” Rivera concluded. Note: Prior-period financial information presented herein reflects results inclusive of restatement corrections and has been recast for discontinued operations for the applicable periods. Cash flow statements have not been recast to reflect the impact of discontinued operations. Second Quarter 2026 Key Performance Indicators by Segment   System-wide Sales (in millions) Store Count Same Store Sales Revenue (in millions) Adjusted EBITDA (in millions) Take 5 $ 460.2 1,421 3.6 % $ 334.8 $ 114.9   Franchise Brands   1,095.8 2,696 0.5 %   69.6   41.2   Auto Glass Now   72.7 206 2.6 %   72.9   3.5   Corporate and Other   N/A N/A N/A     30.1   (52.5 ) Total $ 1,628.7 4,323 1.4 % $ 507.4   107.0     Note: Certain columns may not add due to rounding. Capital and Liquidity The Company ended the quarter with a net leverage ratio of 3.1x Adjusted EBITDA and total liquidity of $855 million consisting of $184 million in cash and cash equivalents and $671 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This does not include the additional $135 million 2022-1 Securitization Senior Notes that would expand the Company’s variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met. Fiscal Year 2026 Outlook The Company reiterates its financial outlook ranges for fiscal year 2026 as follows:   2026 Outlook Revenue ~$1.95 - $2.05 billion Adjusted EBITDA 1 ~$430 - $460 million Adjusted Diluted EPS 1 ~$1.15 - $1.25 The Company expects fiscal year 2026 Adjusted EBITDA 1 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. The Company continues to expect fiscal year 2026 same store sales growth in the range of flat to 2%; and net store growth of approximately 160 to 190. The Company continues to expect to generate between $125 million and $145 million of free cash flow 2 in fiscal year 2026. Note: 2026 Outlook excludes the impact of any potential M&A and divestitures other than the completed divestiture of the international car wash business. 1 Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein.   2 Free cash flow is a non-GAAP financial measure defined as cash provided by operating activities less capital expenditures, net of proceeds from sale leaseback transactions. Management believes free cash flow is a useful indicator of the Company’s ability to generate cash that can be used to repay debt, reinvest in the business, and return capital to shareholders. Forward-looking estimates of free cash flow are made in a manner consistent with the relevant definitions and assumptions noted herein. Nasdaq Listing Compliance Following the filing of its Form 10‑Q for the period ended March 28, 2026, the Company received notification from Nasdaq on June 12, 2026, that it had regained compliance with the periodic filing requirements under Listing Rule 5250(c)(1). Conference Call Driven Brands will host a conference call to discuss second quarter 2026 results today, Thursday, August 6, 2026, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months. About Driven Brands Driven Brands ™ , headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including oil change, paint, collision, glass, vehicle repair, and maintenance. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change ® , Meineke Car Care Centers ® , Maaco ® , 1-800-Radiator & A/C ® , Auto Glass Now ® , and CARSTAR ® . As of the end of fiscal year 2025, Driven Brands had over 4,200 locations across the U.S. and Canada, and services tens of millions of vehicles annually. Driven Brands’ network generated approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales.   DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)     Three Months Ended   Six Months Ended (in thousands, except per share amounts) June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025       As Restated and Recast       As Restated and Recast Net revenue:               Franchise royalties and fees $ 51,662     $ 49,180     $ 98,925   $ 93,890   Company-operated store sales   352,604       333,280       689,736     647,411   Advertising contributions   30,098       27,041       58,933     52,366   Supply and other revenue   73,052       65,712       144,263     129,158   Total net revenue   507,416       475,213       991,857     922,825   Operating expenses:               Company-operated store expenses   208,643       192,322       403,900     379,445   Advertising expenses   30,098       27,040       58,933     52,365   Supply and other expenses   43,764       39,153       83,531     74,590   Selling, general, and administrative expenses   129,704       150,520       261,515     275,179   Depreciation and amortization   22,157       19,129       43,488     39,440   Total operating expenses   434,366       428,164       851,367     821,019   Operating income   73,050       47,049       140,490     101,806   Other expenses, net:               Interest expense, net   20,791       31,146       44,243     67,412   Foreign currency transaction loss (gain), net   1,212       (8,659 )     10,142     (9,130 ) Loss on debt extinguishment   —       —       1,820     —   Other expenses, net   22,003       22,487       56,205     58,282   Income before taxes from continuing operations   51,047       24,562       84,285     43,524   Income tax expense   13,773       8,130       23,180     13,584   Net income from continuing operations $ 37,274     $ 16,432     $ 61,105   $ 29,940   (Loss) gain on sale of discontinued operations, net of tax   (3,027 )     38,948       26,259     38,948   Net (loss) income from discontinued operations, net of tax   —       (1,336 )     1,713     (4,918 ) Net income $ 34,247     $ 54,044     $ 89,077   $ 63,970                   Basic earnings per share:               Continuing Operations $ 0.23     $ 0.10     $ 0.37   $ 0.18   Discontinued Operations   (0.02 )     0.23       0.17     0.21   Net basic earnings per share $ 0.21     $ 0.33     $ 0.54   $ 0.39                   Diluted earnings per share:               Continuing Operations $ 0.23     $ 0.10     $ 0.37   $ 0.18   Discontinued Operations   (0.02 )     0.23       0.17     0.21   Net diluted earnings per share $ 0.21     $ 0.33     $ 0.54   $ 0.39                   Weighted average shares outstanding               Basic   164,481       162,833       164,319     161,701   Diluted   164,936       164,150       164,774     162,984   DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)   (in thousands, except share and per share amounts) June 27, 2026   December 27, 2025 Assets       Current assets:       Cash and cash equivalents $ 183,947     $ 102,938   Restricted cash   100       162   Accounts and notes receivable, net   155,245       131,958   Inventory   52,087       52,375   Prepaid and other assets   30,302       50,103   Income tax receivable   48,447       49,266   Advertising fund assets, restricted   72,298       60,826   Assets held for sale   11,522       31,233   Current assets of discontinued operations   —       61,993   Total current assets   553,948       540,854   Other assets   113,264       114,657   Property and equipment, net   496,273       471,804   Operating lease right-of-use assets   548,477       513,458   Deferred commissions   7,824       7,824   Intangibles, net   606,309       617,849   Goodwill   1,209,228       1,218,002   Deferred tax assets   3,917       3,982   Non-current assets of discontinued operations   —       671,490   Total assets $ 3,539,240     $ 4,159,920   Liabilities and shareholders' equity       Current liabilities:       Accounts payable $ 128,468     $ 93,029   Accrued expenses and other liabilities   166,879       198,759   Income tax payable   2,226       2,652   Current portion of long-term debt   26,243       276,691   Tax receivable agreement payable   29,656       56,211   Advertising fund liabilities   23,258       24,670   Current liabilities of discontinued operations   —       73,795   Total current liabilities   376,730       725,807   Long-term debt   1,658,932       1,882,783   Deferred tax liabilities   26,438       13,554   Operating lease liabilities   535,268       501,506   Tax receivable agreement payable   78,615       73,084   Deferred revenue   29,872       30,365   Long-term accrued expenses and other liabilities   94       —   Non-current liabilities of discontinued operations   —       165,619   Total liabilities   2,705,949       3,392,718   Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding   —       —   Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,979,816 and 164,531,712 shares issued and outstanding; respectively   1,650       1,645   Additional paid-in capital   1,745,494       1,736,416   Accumulated deficit   (864,131 )     (953,208 ) Accumulated other comprehensive loss   (49,722 )     (17,651 ) Total shareholders’ equity   833,291       767,202   Total liabilities and shareholders' equity $ 3,539,240     $ 4,159,920   DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)     Six Months Ended (in thousands) June 27, 2026   June 28, 2025       As Restated Net income $ 89,077     $ 63,970   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization   43,488       71,081   Share-based compensation expense   10,816       23,022   Loss (gain) on foreign denominated transactions   7,291       (13,343 ) Loss on foreign currency derivatives   2,851       4,213   Gain on sale and disposal of businesses, fixed assets, and sale leaseback transactions   (25,709 )     (49,535 ) Loss on fair value of seller note receivable   —       17,000   Reclassification of interest rate hedge to income   —       (1,033 ) Bad debt expense   3,410       9,271   Asset impairment charges and lease terminations   —       24,575   Amortization of deferred financing costs and bond discounts   3,777       6,206   Amortization of cloud computing   10,635       5,829   Provision for deferred income taxes   13,932       11,347   Loss on extinguishment of debt   1,820       —   Other, net   (9,077 )     (5,003 ) Changes in operating assets and liabilities, net of acquisitions:       Accounts and notes receivable, net   (26,230 )     (44,295 ) Inventory   211       1,840   Prepaid and other assets   18,073       (3,162 ) Advertising fund assets and liabilities, restricted   (14,046 )     (11,599 ) Other assets   (7,949 )     150   Deferred commissions   (2 )     303   Deferred revenue   (492 )     (934 ) Accounts payable   35,968       29,874   Accrued expenses and other liabilities   (17,520 )     10,140   Income tax receivable   (7,427 )     686   Cash provided by operating activities   132,897       150,603   Cash flows from investing activities:       Capital expenditures   (80,924 )     (124,641 ) Cash used in business acquisitions, net of cash acquired   —       (6,034 ) Proceeds from sale leaseback transactions   23,001       22,810   Proceeds from sale or disposal of businesses and fixed assets, net of cash sold   484,209       266,133   Cash provided by investing activities   426,286       158,268   Cash flows from financing activities:       Payment of debt extinguishment and issuance costs   —       (1,414 ) Repayment of long-term debt   (340,286 )     (305,446 ) Proceeds from revolving lines of credit and short-term debt   107,000       65,000   Repayment of revolving lines of credit and short-term debt   (247,000 )     (75,000 ) Repayment of principal portion of finance lease liability   (3,764 )     (3,140 ) Payment of Tax Receivable Agreement   (21,630 )     —   Tax obligations for share-based compensation   (2,166 )     (2,582 ) Cash used in financing activities   (507,846 )     (322,582 ) Effect of exchange rate changes on cash   (1,494 )     5,464   Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted   49,843       (8,247 ) Cash and cash equivalents, beginning of period   132,682       141,810   Cash included in advertising fund assets, restricted, beginning of period   52,204       38,930   Restricted cash, beginning of period   162       358   Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period   185,048       181,098   Cash and cash equivalents, end of period   183,947       133,079   Cash included in advertising fund assets, restricted, end of period   50,844       39,438   Restricted cash, end of period   100       334   Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period $ 234,891     $ 172,851   Disclosure Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are “forward-looking statements” for the purposes of federal and state securities laws, including, among other things, any statements relating to: (i) the current geopolitical environment, including the impact, both direct and indirect, of global conflicts, government actions, such as proposed and enacted tariffs and governmental shutdowns; (ii) our strategy, outlook, and growth prospects; (iii) our operational and financial targets, dividend policy, and capital allocation strategy; (iv) general economic trends and trends in our industry and markets; (v) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (vi) our internal control over financial reporting; (vii) the proper application of generally accepted accounting principles in the preparation of our financial statements, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (viii) the competitive environment in which we operate; and (ix) potential post-closing obligations and liabilities relating to the sale of our car wash businesses. Forward-looking statements may include, among others, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: our ability to compete with other businesses in the automotive aftermarket industries; advances and changes in automotive technology; changes in consumer preferences, perceptions, and spending patterns; changes in general economic conditions and the geographic concentration of our locations; our ability to timely recruit and retain qualified accounting personnel; the need to rely on third-party service providers, which could result in significant costs; diversion of management’s time, attention and resources from strategic matters due to remediation efforts related to the material weaknesses in our internal control over financial reporting and disclosure controls and procedures; our inability to maintain an effective system of internal controls; our inability to remediate the material weaknesses in our internal control over financial reporting and disclosure controls and procedures or additional material weaknesses or other deficiencies in the future; the restatement of certain of our previously issued consolidated financial statements; the adverse effect of litigation; the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. Forward-looking statements made in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Given these uncertainties, you should not place undue reliance on these forward-looking statements. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies. Non-GAAP Financial Measures in Outlook Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) and Adjusted Earnings per Share (“Adjusted EPS”) in the Company’s Fiscal Year 2026 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC. Adjusted Net Income and Adjusted Earnings Per Share Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands’ core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period. The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three and six months ended June 27, 2026, compared to the three and six months ended June 28, 2025. Net Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)   Three Months Ended   Six Months Ended   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 (in thousands, except per share data)     As Restated       As Restated Net income from continuing operations $ 37,274     $ 16,432     $ 61,105     $ 29,940   Adjustments:               Acquisition related costs (a)   118       983       288       998   Non-core items and project costs, net (b)   1,511       (1,134 )     4,003       2,076   Cloud computing amortization (c)   5,450       3,948       10,635       5,829   Share-based compensation expense (d)   5,101       10,663       11,449       22,923   Foreign currency transaction loss (gain), net (e)   1,212       (8,659 )     10,142       (9,130 ) Impairment, (gain) loss on sale of assets, net, and closed store expenses (f)   (373 )     34,314       733       44,208   Loss on debt extinguishment (g)   —       —       1,820       —   Amortization related to acquired intangible assets (h)   4,650       4,528       9,305       9,180   Adjusted net income before tax impact of adjustments   54,943       61,075       109,480       106,024   Tax impact of adjustments (i)   (6,771 )     (12,171 )     (12,279 )     (18,348 ) Adjusted net income from continuing operations $ 48,172     $ 48,904     $ 97,201     $ 87,676                   Basic earnings per share from continuing operations $ 0.23     $ 0.10     $ 0.37     $ 0.18   Diluted earnings per share from continuing operations $ 0.23     $ 0.10     $ 0.37     $ 0.18                   Adjusted basic earnings per share from continuing operations (1) $ 0.29     $ 0.30     $ 0.59     $ 0.54   Adjusted diluted earnings per share from continuing operations (1) $ 0.29     $ 0.30     $ 0.59     $ 0.54                   Weighted average shares outstanding               Basic   164,481       162,833       164,319       161,701   Diluted   164,936       164,150       164,774       162,984   (1) Adjusted Earnings Per Share is calculated under the two-class method. Under the two-class method, adjusted earnings per share is calculated using adjusted net income attributable to common shares, which is derived by reducing adjusted net income by the amount attributable to participating securities. Adjusted Net Income attributable to participating securities used in the basic earnings per share calculations was less than $1 million for the three and six months ended June 27, 2026, and less than $1 million and $1 million for the three and six months ended June 28, 2025, respectively. Adjusted Net Income attributable to participating securities used in the diluted earnings per share calculations was less than $1 million for the three and six months ended June 27, 2026 and June 28, 2025. Adjusted EBITDA Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (“SEC”) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025, filed with the SEC on May 19, 2026, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three and six months ended June 27, 2026, compared to the three and six months ended June 28, 2025. Net Income to Adjusted EBITDA Reconciliation (Unaudited)   Three Months Ended   Six Months Ended   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 (in thousands)     As Restated       As Restated Net income from continuing operations $ 37,274     $ 16,432     $ 61,105   $ 29,940   Income tax expense   13,773       8,130       23,180     13,584   Interest expense, net   20,791       31,146       44,243     67,412   Depreciation and amortization   22,157       19,129       43,488     39,440   EBITDA   93,995       74,837       172,016     150,376   Acquisition related costs (a)   118       983       288     998   Non-core items and project costs, net (b)   1,511       (1,134 )     4,003     2,076   Cloud computing amortization (c)   5,450       3,948       10,635     5,829   Share-based compensation expense (d)   5,101       10,663       11,449     22,923   Foreign currency transaction loss (gain), net (e)   1,212       (8,659 )     10,142     (9,130 ) Impairment, (gain) loss on sale of assets, net, and closed store expenses (f)   (373 )     34,314       733     44,208   Loss on debt extinguishment (g)   —       —       1,820     —   Adjusted EBITDA $ 107,014     $ 114,952     $ 211,086   $ 217,280     Note: Adjusted EBITDA presented above included restatement-related, non-recurring costs of $11.8 million for the three months ended June 27, 2026, and $20.9 million for the six months ended June 27, 2026. Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes (a) Consists of acquisition costs as reflected within the consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. As acquisitions occur in the future, we expect to incur similar costs and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized. (b) Consists of discrete items and project costs, including third-party professional costs associated with strategic transformation initiatives as well as non-recurring payroll-related costs and non-ordinary course legal reserves and settlements. (c) Includes non-cash amortization expenses relating to cloud computing arrangements. (d) Represents non-cash share-based compensation expense. (e) Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of the intercompany loans as well as gains and losses on cross-currency swaps. (f) Consists of the following items (i) asset impairments, (ii) losses, net on sale leasebacks, disposal of assets, including assets held for sale, or sale of business; and (iii) closed store expenses. (g) Represents charges incurred related to the Company’s partial repayment of the 2020-1 Senior Notes and full repayment of the 2019-2 Senior Notes. (h) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statements of operations. (i) Represents the tax impact of adjustments associated with the reconciling items between net income from continuing operations and Adjusted Net Income, excluding the provision for uncertain tax positions and valuation allowance for certain deferred tax assets. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 21% to 26.5% depending upon the tax attributes of each adjustment and the applicable jurisdiction. DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES ADJUSTED EBITDA RECONCILIATION (UNAUDITED)     Three Months Ended   Six Months Ended   June 27, 2026   June 28, 2025   June 27, 2026   June 28, 2025 (in thousands)     As Restated       As Restated Take 5 $ 114,882     $ 106,538     $ 224,354     $ 202,933   Franchise Brands   41,163       43,549       82,520       86,429   Auto Glass Now   3,482       10,081       9,416       15,398   Corporate and Other   (52,513 )     (45,216 )     (105,204 )     (87,480 ) Adjusted EBITDA $ 107,014     $ 114,952     $ 211,086     $ 217,280     Note: Adjusted EBITDA presented above included restatement-related, non-recurring costs of $11.8 million for the three months ended June 27, 2026, and $20.9 million for the six months ended June 27, 2026. DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)     Three Months Ended June 27, 2026 (in thousands) Take 5   Franchise Brands   Auto Glass Now   Total System-wide Sales               Franchised stores $ 183,099   $ 1,092,957   $ —   $ 1,276,056 Company-operated stores   277,111     2,801     72,692     352,604 Total System-Wide Sales $ 460,210   $ 1,095,758   $ 72,692   $ 1,628,660                 Store Count (in whole numbers)               Franchised stores   569     2,685     —     3,254 Company-operated stores   852     11     206     1,069 Total Store Count   1,421     2,696     206     4,323                   Three Months Ended June 28, 2025   Take 5   Franchise Brands   Auto Glass Now   Total (in thousands) As Restated System-wide Sales               Franchised stores $ 149,119   $ 1,070,582   $ —   $ 1,219,701 Company-operated stores   257,449     4,654     71,177     333,280 Total System-Wide Sales $ 406,568   $ 1,075,236   $ 71,177   $ 1,552,981                 Store Count (in whole numbers)               Franchised stores   485     2,660     —     3,145 Company-operated stores   759     13     214     986 Total Store Count   1,244     2,673     214     4,131     Six Months Ended June 27, 2026 (in thousands)   Take 5   Franchise Brands   Auto Glass Now   Total System-wide Sales                 Franchise stores   $ 353,055   $ 2,152,039   $ —   $ 2,505,094 Company-operated stores     548,823     5,315     135,598     689,736 Total System-wide Sales   $ 901,878   $ 2,157,354   $ 135,598   $ 3,194,830                   Store Count (in whole numbers)                 Franchise stores     569     2,685     —     3,254 Company-operated stores     852     11     206     1,069 Total Store Count     1,421     2,696     206     4,323                       Six Months Ended June 28, 2025     Take 5   Franchise Brands   Auto Glass Now   Total (in thousands)   As Restated System-wide Sales                 Franchise stores   $ 285,807   $ 2,099,956   $ —   $ 2,385,763 Company-operated stores     508,249     8,646     130,516     647,411 Total System-wide Sales   $ 794,056   $ 2,108,602   $ 130,516   $ 3,033,174                   Store Count (in whole numbers)                 Franchise stores     485     2,660     —     3,145 Company-operated stores     759     13     214     986 Total Store Count     1,244     2,673     214     4,131   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805067763/en/

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