$DRVN

Driven Brands Holdings Inc.

CIK:0001804745|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2026	Jun. 28, 2025	Jun. 27, 2026	Jun. 28, 2025
Net revenue:
Total net revenue	$ 507,416	$ 475,213	$ 991,857	$ 922,825
Operating expenses:
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	0	0	1,820	0
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	0	(1,336)	1,713	(4,918)
Net income	$ 34,247	$ 54,044	$ 89,077	$ 63,970
Basic and Diluted earnings per share:
Continuing Operations (in dollars per share)	$ 0.23	$ 0.10	$ 0.37	$ 0.18
Discontinued Operations (in dollars per share)	(0.02)	0.23	0.17	0.21
Net basic earnings per share (in dollars per share)	0.21	0.33	0.54	0.39
Continuing Operations (in dollars per share)	0.23	0.10	0.37	0.18
Discontinued Operations (in dollars per share)	(0.02)	0.23	0.17	0.21
Net diluted earnings per share (in dollars per share)	$ 0.21	$ 0.33	$ 0.54	$ 0.39
Weighted average shares outstanding
Basic (in shares)	164,481	162,833	164,319	161,701
Diluted (in shares)	164,936	164,150	164,774	162,984
Franchise royalties and fees
Net revenue:
Total net revenue	$ 51,662	$ 49,180	$ 98,925	$ 93,890
Company-operated store sales
Net revenue:
Total net revenue	352,604	333,280	689,736	647,411
Operating expenses:
Operating expense	208,643	192,322	403,900	379,445
Advertising contributions
Net revenue:
Total net revenue	30,098	27,041	58,933	52,366
Operating expenses:
Operating expense	30,098	27,040	58,933	52,365
Supply and other revenue
Net revenue:
Total net revenue	73,052	65,712	144,263	129,158
Operating expenses:
Operating expense	$ 43,764	$ 39,153	$ 83,531	$ 74,590

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2026	Jun. 28, 2025
Statement of Cash Flows [Abstract]
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	0	17,000
Reclassification of interest rate hedge to income	0	(1,033)
Bad debt expense	3,410	9,271
Asset impairment charges and lease terminations	0	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	0
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	0	(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	0	(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)	0
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
Supplemental cash flow disclosures - non-cash items:
Capital expenditures included in accrued expenses and other liabilities	2,224	5,468
Deferred consideration included in accrued expenses and other liabilities	263	1,896
Supplemental cash flow disclosures - cash paid for:
Interest	40,600	64,762
Income taxes	$ 5,916	$ 21,236

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 27, 2026	Dec. 27, 2025
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	0	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	0	671,490
Total assets	3,539,240	4,159,920
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	0	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	0
Non-current liabilities of discontinued operations	0	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	0	0
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