Driven Brands Discloses Material Errors In Its FY25, FY24 And FY23 Consolidated Financial Statements, Along With Quarterly And YtD Periods In FY25 And FY24, As Well As Quarterly And YtD Periods Ended June 27, 2026 And March 28, 2026; Delays Q3 Earnings Call and Filing Of Form 10-Q

Driven Brands Holdings Inc. (NASDAQ:DRVN) ("Driven Brands" or the "Company") today announced the Audit Committee of the Company’s Board of Directors, after consultation with the Company’s management, concluded there were material errors in the Company’s previously issued consolidated financial statements for fiscal years ended December 27, 2025, December 28, 2024, and December 30, 2023 contained in the Company’s Annual Report on Form 10-K for the fiscal year 2025, and in its previously issued unaudited condensed consolidated financial statements for each of the quarterly and year-to-date periods within fiscal years 2025 and 2024 as well as the quarterly and year-to-date periods ended June 27, 2026 and March 28, 2026.

As a result, the Audit Committee concluded that such financial statements require restatement and should not be relied upon. The errors identified to date primarily relate to the accounting for fixed assets.

Management Commentary

While preparing for the Company’s Whole Business Securitization ("WBS") subsidiary audits, management identified additional errors primarily in the historical accounting for fixed assets.

The fixed asset errors identified to date fall largely into three categories:

Failure to timely write-off fixed assets, primarily related to sale leaseback transactions;
Misclassification of fixed assets within fixed asset categories; and
Incorrect useful lives across certain fixed asset categories.
"To address these issues, we are continuing to add accounting resources and work with outside accounting advisors to correct the errors we’ve identified, including reconciling our fixed asset records," said Mike Diamond, Chief Financial Officer. "We are also reviewing whether any other areas require adjustment. To date, the adjustments from these issues have a negligible impact on Adjusted EBITDA."

There is no set timeline for completing the restatement, and the Company will provide an update as soon as practicable. Until that time, the Company will limit communications to required public disclosures.

"I understand the frustration this causes our shareholders, lenders, employees, and franchisees as we work through this matter," said Danny Rivera, President and Chief Executive Officer. "Our top priority is to complete the restatement, continue to strengthen our processes and controls, and earn back trust one quarter at a time."

Preliminary Third Quarter 2026 Performance(1)

In light of the ongoing review tied to this restatement, the Company is delaying its third quarter earnings call and will not file its Form 10-Q for the third quarter by the filing deadline. In the interim, the Company is providing the following update on preliminary third quarter performance.

Same Store Sales

Net Unit Growth

Driven Brands

2.0%

(7)

Take 5

4.9%

27

Franchise Brands

0.5%

(34)

Auto Glass Now

6.5%

0