Driven Brands 2025 Q2 Earnings Strong Performance as Net Income Surges 57.7%

Driven Brands (DRVN) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025, with results that beat expectations. The company exceeded revenue and adjusted profit forecasts, and it reaffirmed its 2025 guidance in line with expectations. The report highlights continued momentum across key financial metrics and a resilient business model.

Driven Brands reported total revenue of $550.99 million for Q2 2025, a 6.2% increase from $518.80 million in the prior year. Franchise royalties and fees contributed $49.18 million, while company-operated store sales accounted for the largest portion at $333.28 million. Independently-operated store sales added $71.79 million to the revenue mix. Advertising contributions stood at $27.04 million, and supply and other revenue totaled $69.70 million, collectively supporting the company’s diversified income stream.

Earnings per share for the quarter rose 61.1% to $0.29 from $0.18 in the prior year. Net income surged to $47.56 million, representing 57.7% growth compared to $30.16 million in the same period of 2024. The strong EPS and net income performance indicate improved profitability across the company’s operations.

Driven Brands’ stock edged down 0.12% during the latest trading day, gained 2.67% over the past week, and declined 4.10% month-to-date. Despite the positive earnings report, the 30-day post-earnings holding strategy yielded a -28.60% return, underperforming the benchmark. This strategy had a CAGR of -10.98%, a maximum drawdown of 0.00%, and a Sharpe ratio of -0.27, highlighting the high volatility and risk associated with short-term trading around the report.

CEO Daniel R. Rivera emphasized the company’s strong Q2 performance, noting a 6% revenue increase and $143 million in adjusted EBITDA. He highlighted the leadership of Take 5 Oil Change, which delivered 10% adjusted EBITDA growth and 7% same-store sales. Rivera expressed optimism about the company’s model and momentum, with a strategic focus on deleveraging and expanding non-oil services. He also reiterated the company’s confidence in its ability to execute through macroeconomic challenges.

Driven Brands maintained its full-year 2025 guidance, projecting revenue between $2.05 billion and $2.15 billion, adjusted EBITDA of $520 million to $550 million, and adjusted diluted EPS of $1.15 to $1.25. The company expects same-store sales growth of 1% to 3% for the year. It also anticipates 50% of full-year revenue and adjusted EBITDA to come from the back half of the year, with more tempered growth in Q3 due to headwinds. Net store growth is projected between 175 and 200 units, with capital expenditures expected to range between 6.5% and 7.5% of revenue.

Separately, Driven Brands’ stock climbed 3.4% in early trading on Aug 6, 2025, following the release of the Q2 earnings report. The company not only surpassed revenue expectations but also outperformed estimates for adjusted earnings per share, which came in at $0.36. This marked the company’s 18th consecutive quarter of positive same-store sales growth. Although the initial gains subsided slightly, shares closed the day up 2% at $17.35. The stock remains relatively stable with only six moves exceeding 5% over the past year, suggesting the market views the earnings as meaningful but not transformative. Driven Brands is currently trading near its 52-week high and has risen 8.3% since the beginning of the year.