Driven Brands Reports Q2 2025 Revenue Growth, Declines in Net Income and Adjusted EBITDA

Driven Brands Holdings reported Q2 2025 revenue of $551.0 million, a 6.2% increase YoY, with same-store sales growth of 7%. The company's net income from continuing operations fell to $11.8 million, while adjusted EBITDA decreased slightly to $143.2 million. Driven Brands reaffirmed its fiscal year 2025 outlook, projecting revenue between $2.05 billion and $2.15 billion and adjusted EBITDA between $520 million and $550 million. The company remains optimistic about its growth prospects, focusing on driving continued growth, generating robust free cash flow, and reducing leverage.

Driven Brands Holdings Inc. (NASDAQ: DRVN) reported its second-quarter 2025 earnings, showcasing strong revenue growth and a disciplined approach to debt reduction. The company reported total revenue of $551.0 million, representing a 6.2% year-over-year (YoY) increase. Same-store sales growth stood at 7%, indicating robust performance across multiple segments [1].

While net income from continuing operations fell to $11.8 million, adjusted EBITDA decreased slightly to $143.2 million. The company attributed this to the sale of its U.S. car wash seller note, which reduced pro forma net leverage to 3.9x Adj. EBITDA [2]. This strategic move reflects Driven Brands' commitment to financial discipline and long-term value creation.

Danny Rivera, President and CEO, emphasized the company's strong Q2 performance, driven by consistent growth in same store sales, revenue, adjusted EBITDA, and adjusted earnings per share. He noted the progress made in reducing leverage and expressed confidence in the company's ability to sustain its performance [3].

Driven Brands reaffirmed its 2025 full-year outlook, projecting revenue between $2.05 billion and $2.15 billion, adjusted EBITDA between $520 million and $550 million, and adjusted diluted EPS between $1.15 and $1.25. The company also expects same store sales growth of 1% to 3% and net store growth of 175 to 200 locations [1].

The stock initially surged post-earnings but settled with a modest gain, reflecting mixed market reactions. The company remains optimistic about its growth prospects, focusing on driving continued growth, generating robust free cash flow, and reducing leverage.

References:

[1] https://www.ainvest.com/news/driven-brands-2025-q2-earnings-strong-performance-net-income-surges-58-2508/
[2] https://www.marketscreener.com/news/driven-brands-holdings-inc-reports-earnings-results-for-the-second-quarter-and-six-months-ended-jun-ce7c5ed8d881ff22
[3] https://www.businesswire.com/news/home/20250805659164/en/Driven-Brands-Holdings-Inc.-Reports-Second-Quarter-2025-Results