Driven Brands Shares Tumble 30% After Cancelling Earnings Call Over Accounting Errors
Driven Brands canceled its pre-market earnings call on February 26 after identifying material accounting errors in fiscal 2023–2024 and quarterly statements through September 2025. Shares plunged over 30% to $11.60 as investors weighed lease recording inaccuracies, unreconciled cash variances and expense misclassifications against its $2.10–2.12 billion 2025 revenue guidance.
1. Earnings Call Cancellation
On February 26 Driven Brands withdrew its scheduled pre-market earnings release and call after discovering material errors in its financial filings for fiscal years 2023 and 2024 and quarterly periods through September 2025.
2. Stock Price Reaction
Shares tumbled over 30% to close at $11.60 as investors reacted to heightened uncertainty and risk following the abrupt cancellation and disclosure of accounting issues.
3. Identified Accounting Errors
The company cited inaccuracies in lease recording, unreconciled variances in cash accounts and misclassifications of supply and other expenses across multiple reporting periods.
4. Revenue Guidance Reaffirmed
Despite the disclosure, Driven Brands maintained its 2025 revenue forecast of $2.10 billion to $2.12 billion, implying a year-on-year decline of 7.8% to 8.7%.