Driven Brands finds significant errors in financial reports for FY 2023 and 2024

Driven Brands’ Board of Directors Audit Committee recently revealed significant inaccuracies in the company’s consolidated financial statements for 2023 and 2024. This enhanced scrutiny caused the postponement of Driven Brands’ Q4 2025 and year-end earnings call scheduled for February 25, 2026. The errors were discovered in the 2024 annual report submitted on Form 10-K and in the unaudited condensed consolidated financial statements for each quarter and year-to-date period within the fiscal year 2024. Furthermore, discrepancies were identified in the reports up to September 27, 2025, June 28, 2025, and March 29, 2025. Subsequent consultations with management led the Audit Committee to conclude that these financial reports are not reliable and necessitate restatement. Likewise, the external accounting firm’s audit report on financial statements and internal financial controls cannot be trusted. The errors encompass lease and cash adjustments, expense classifications, income tax provision, supply and revenue recognition, fixed assets, cloud computing, lease cash application, as well as balance sheet and income statement misclassifications and revenue recognition issues. Driven Brands clarified that the impact of these errors will be incorporated into the 2025 annual report on Form 10-K. Concurrently, Driven Brands acknowledged material deficiencies in its internal financial reporting controls, deeming them ineffective as of December 27, 2025. An assessment regarding the company’s financial statements and internal controls is ongoing, with the possibility of identifying further material errors. In response, Driven Brands requested an extension for filing its 2025 annual report and aims to submit it promptly. The company’s stock experienced a notable decline of approximately 30%, closing at $11.60 per share on February 25, 2026. Conversely, Boyd Group’s stocks observed an upward trend, with a price of roughly $168.71 as of Wednesday, signifying a close to 20% increase from its IPO price of $141 in November. Furthermore, AYAL Capital Advisors disclosed in an SEC filing from February 17 that it initiated a new position in Boyd Group Services during Q4 2025 by acquiring 58,098 shares worth $9.26 million. Through these recent developments, Driven Brands and Boyd Group exemplify contrasting trajectories in the business landscape.