Driven Brands Discovers Inaccuracies in Its Financial Statements Over Past Two Years

Driven Brands recently shared that its financial statements for the past two years may be false, discovering accounting errors that have led to the company not able to provide its financial results for Q4 2025. 

Per a report from The Motley Fool, Driven Brands filed a notice with the SEC stating it discovered “material errors in our previously issued consolidated financial statements for the fiscal year ended December 28, 2024 ... and the fiscal year ended December 30, 2023,” as it was preparing its financial report for Q4 2025.

The company detailed these errors as including an inaccurate record of leases, misclassification of “supply and other expenses,” and “unreconciled differences for cash accounts.”

Driven Brands has planned to request a 15-day extension from the SEC to file its Annual Report for fiscal 2025. The company has said that its financial statements from the past two years “should not be relied upon.” It will need to recalculate its finances and re-release statements for the inaccurate timeframes.

The news caused Driven Brands stock to plummet, with the company not having reported a profit in three years, despite steady sales. The stock also has debt; approximately $2.6 billion net of cash on hand, according to The Motley Fool. While analysts previously predicted Driven Brands to become profitable again in 2025, the news of inaccurate financial statements has called those predictions into question.