tiprankstipranks
Advertisement
Advertisement

Driven Brands Faces Ongoing Filing Delays and Nasdaq Compliance Risks

Story Highlights
  • Driven Brands issued preliminary 2025 and Q1 2026 results, showing modest growth, solid liquidity and lower net debt, but warned that adjusted EBITDA will be dampened by restatement-related costs.
  • The company faces heightened regulatory pressure as material errors in past financials have delayed its 2025 Form 10-K, triggered Nasdaq non-compliance, and forced a restatement and control remediation effort under tight mid-June deadlines.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Driven Brands Faces Ongoing Filing Delays and Nasdaq Compliance Risks

Claim 55% Off TipRanks

The latest update is out from Driven Brands Holdings ( (DRVN) ).

Driven Brands Holdings reported preliminary, unaudited results on April 21, 2026 for the fourth quarter and fiscal year 2025 and for the first quarter of 2026, highlighting modest same-store sales gains at its Take 5 brand, revenue of about $1.85 billion to $1.86 billion for 2025 and net unit growth, while noting that 2026 adjusted EBITDA will be pressured by costs tied to restating prior financials. The company emphasized its liquidity, with about $130 million in cash as of March 28, 2026 and net debt reduced to roughly $1.6 billion from $2.1 billion three months earlier, even as it continues to grapple with material weaknesses in internal controls, delayed SEC filings, and a Nasdaq non-compliance notice that requires it to file its overdue 2025 Form 10-K and a compliance plan by mid-June to avoid potential listing consequences.

Driven Brands’ filing delays stem from material errors in financial statements for 2023, 2024 and parts of 2025 that require restatement, leading the audit committee on February 23, 2026 to conclude that prior reports should not be relied upon. The company now no longer expects to meet its previously indicated April 26, 2026 deadline for the 2025 Form 10-K, does not expect to timely file its first-quarter 2026 Form 10-Q, and plans to limit commentary on these accounting and control issues to required public disclosures until the restatement and remediation work are complete.

The most recent analyst rating on (DRVN) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Driven Brands Holdings stock, see the DRVN Stock Forecast page.

Spark’s Take on DRVN Stock

According to Spark, TipRanks’ AI Analyst, DRVN is a Neutral.

The score is held back primarily by weak financial performance (declining TTM growth, negative profitability, and high leverage). Technicals and recent updates are more supportive—momentum is positive and earnings commentary/corporate actions emphasize Take 5 strength and debt reduction—but valuation remains constrained by losses (negative P/E).

To see Spark’s full report on DRVN stock, click here.

More about Driven Brands Holdings

Driven Brands Holdings, headquartered in Charlotte, N.C., is the largest automotive services company in North America, offering consumer and commercial services including oil changes, paint, collision repair, glass, vehicle repair and maintenance. The company operates well-known brands such as Take 5 Oil Change, Meineke Car Care Centers, Maaco, 1-800-Radiator & A/C, Auto Glass Now and CARSTAR, and has exited its U.S. and international car wash businesses, which are treated as discontinued operations.

Average Trading Volume: 1,887,159

Technical Sentiment Signal: Sell

Current Market Cap: $2.1B

Find detailed analytics on DRVN stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1