Driven Brands' Q2 2025: Unpacking Contradictions in Take 5 Growth, Revenue, and Profitability

Take 5 traffic and ticket growth, non-oil change revenue growth in Take 5, Take 5 franchise growth, and Take 5 revenue growth and profitability expectations are the key contradictions discussed in Driven Brands Holdings Inc.'s latest 2025Q2 earnings call.



Financial Performance and Growth:
- Driven Brands grew revenue by 6% and reported adjusted EBITDA of $143 million for Q2 2025.
- The growth was driven by Take 5 Oil Change's industry-leading 169 net new stores and 10% adjusted EBITDA growth year-over-year, and by strong free cash flow generation from franchise brands.

Take 5 Oil Change Expansion:
- Take 5 Oil Change contributed over 20% of its total sales from non-oil change services, an increase from the previous quarter.
- The expansion was supported by new service offerings like differential fluid service, which added to the company'sAttachment rates and customer loyalty.

Franchise Segment and International Car Wash Performance:
- The Franchise Segment generated $45 million in adjusted EBITDA with adjusted EBITDA margins of 61%, while the International Car Wash business showed same-store sales growth of 19.4%.
- Despite challenging conditions in collision and Maaco, the Car Wash segment benefited from favorable weather and operational improvements.

Debt Reduction and Leverage Goals:
- Driven Brands reduced net leverage to 3.9x by fully retiring its term loan and paying down other debts, following the monetization of a seller note for $113 million.
- This progress is part of a broader strategy to reduce leverage to 3x by the end of 2026, enhancing financial flexibility.