Driven Brands 2025 Q3 Earnings Net Income Surges 507.2% to $60.86M

Driven Brands (DRVN) reported fiscal 2025 Q3 earnings on Nov 6, 2025, with revenue of $535.68 million, surpassing estimates and marking a 6.6% year-over-year increase. The company reversed a prior loss, posting a net income of $60.86 million (EPS $0.37) compared to a $14.95 million loss (EPS -$0.09) in 2024 Q3. Management raised its full-year adjusted EPS guidance to $1.26 at the midpoint, reflecting improved profitability.

Revenue

Driven Brands’ total revenue grew 6.6% year-over-year to $535.68 million in Q3 2025, driven by strong performance across segments. Franchise royalties and fees contributed $50.82 million, while company-operated store sales totaled $331.26 million. Independently-operated store sales added $51.41 million, and advertising contributions reached $27.88 million. Supply and other revenue segments generated $74.31 million, rounding out the net revenue.

Earnings/Net Income

The company returned to profitability with a net income of $60.86 million (EPS $0.37) in Q3 2025, a dramatic turnaround from a $14.95 million loss (EPS -$0.09) in the prior-year period. This represents a 507.2% increase in net income and a 511.1% improvement in EPS, underscoring operational efficiency and strategic adjustments.

Price Action

Shares of DRVN edged down 1.80% during the latest trading day, 2.65% over the week, and 5.45% month-to-date. Despite short-term volatility, the stock surged 8% in the morning session following the earnings report, reflecting investor optimism about the company’s improved performance and guidance.

Post-Earnings Price Action Review

The strategy of buying DRVN shares after revenue beats and holding for 30 days has shown favorable outcomes. Driven Brands’ Q3 revenue of $535.7 million exceeded analyst estimates by $0.68 million, triggering an 8% morning-session jump. This positive reaction aligns with the company’s strategic focus on expanding its Take 5 Oil Change segment and leveraging cash flow from franchise and car wash operations. However, macroeconomic uncertainties in Q4 2025 could introduce short-term volatility, requiring investors to balance optimism with caution.

CEO Commentary

Driven Brands CEO Danny Rivera highlighted the company’s resilience in the Q3 earnings call, stating, “Our continued growth in the Take 5 Oil Change segment and disciplined cost management have driven this turnaround.” Rivera emphasized the importance of same-store sales growth (2.8% year-over-year) and the expansion of high-margin services like car washes. He expressed confidence in the company’s ability to sustain profitability amid market challenges, noting, “We remain focused on operational excellence and leveraging our franchise network for long-term value.”

Guidance

Management raised its full-year 2025 adjusted EPS guidance to $1.26 at the midpoint, a 4.6% increase from prior expectations. The company also reiterated a $2.11 billion revenue target for the year, slightly below analyst estimates. For Q4 2025,DRVN expects continued momentum in its core segments but warned of potential volatility due to macroeconomic headwinds.

Additional News

Driven Brands faced mixed analyst sentiment following the Q3 report, with Piper Sandler lowering its price target to $19.00 and Weiss Ratings maintaining a “sell (d-)” rating. Insider activity included Jonathan G. Fitzpatrick, a director, selling 110,000 shares, reducing his ownership by 4.6%. Institutional investors, including Principal Financial Group and Covey Capital Advisors, acquired new stakes in Q1 2025, signaling cautious confidence in the company’s long-term potential.