Q3 2025 Driven Brands Holdings Inc Earnings Call Transcript
Key Points
- Driven Brands Holdings Inc (DRVN) reported a 7% increase in revenue and delivered an adjusted EBITDA of $136 million for Q3 2025.
- The company achieved a 5% increase in system-wide sales, supported by the addition of 167 net new stores over the last 12 months.
- Same-store sales rose by 3%, marking the 19th consecutive quarter of positive same-store sales growth.
- Take 5 Oil Change segment delivered its 21st consecutive quarter of same-store sales growth, with a 7% increase in same-store sales and an 18% growth in system-wide sales year over year.
- Driven Brands Holdings Inc (DRVN) reduced its net leverage to 3.8 times and is on track to reach its target of 3 times by the end of 2026.
- The company noted a choppy start to Q4 2025, with macroeconomic uncertainties such as the ongoing government shutdown affecting consumer behavior.
- Adjusted EBITDA margin for Q3 decreased by 85 basis points compared to the previous year, primarily due to increased store expenses and investments in growth initiatives.
- Franchise Brands segment reported a decline in revenue by 2.3% due to a decrease in the weighted average royalty rate.
- The international carwash business experienced moderated growth due to worse weather conditions in Q3 compared to the first half of the year.
- There is ongoing pressure on lower-income consumers, which has been a consistent challenge throughout the year.
Ladies and gentlemen, this is the operator. Today's conference is scheduled to begin momentarily. Until that time, your lines will remain on music hold. Thank you for your patience.
Good morning, ladies and gentlemen, and welcome to the Driven Brands' third quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Tuesday, November 4, 2025.
I would now like to turn the conference over to Steve Alexander. Please go ahead.
Good morning. Welcome to Driven Brands third quarter 2025 earnings conference call. The earnings release and net leverage ratio reconciliation are available for download on our website at investors.drivenbrands.com.
On the call with me today are Danny Rivera, President and Chief Executive Officer; and Mike Diamond, Executive Vice President and Chief Financial Officer. In a moment, Danny and Mike will walk you through our financial and operating performance for the quarter and full year.
Before we begin our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
