Driven Brands Holdings Inc. Receives Extension for 2025 Financial Reporting Deadlines

Key Highlights

• Driven Brands Holdings Inc. (NASDAQ: DRVN) has announced a significant extension to its 2025 financial reporting deadlines under its key securitization agreements.
• The extension, formalized through a WBS Waiver issued by Midland Loan Services, Inc. (the “Servicer” and Control Party), provides additional time for the delivery of both the annual and quarterly financial statements for fiscal year 2025 and Q1 2026.
• New deadlines:
  • The 2025 audited annual financial statements must now be delivered by June 10, 2026 (previously an earlier date).
  • Q1 2026 quarterly financial statements for Driven Brands Holdings Inc. and relevant securitization entities are due 45 days after the annual financial statements are delivered.
  • Annual accountants’ reports required under the management agreements are due 30 days after the latest delivery of the required annual financial statements by the Company and relevant entities.
• The extension was requested by Driven Brands Inc. (the U.S. Manager) and Driven Brands Canada Shared Services, Inc. (the Canadian Manager), both indirect wholly-owned subsidiaries of Driven Brands Holdings Inc.
• The waiver prevents any default, breach of covenant, or related rapid amortization or manager termination event solely due to the delayed filings, provided the new deadlines are observed.
• Driven Brands expects to deliver its 2025 Form 10-K on or before June 10, 2026.

Details and Implications for Shareholders

On April 22, 2026, Driven Brands Inc. and its Canadian counterpart received a formal waiver from Midland Loan Services, serving as both Servicer and Control Party for the Company’s securitization program. This waiver, referenced as the “WBS Waiver,” allows Driven Brands to delay the delivery of its audited annual and quarterly financial reports for fiscal year 2025 and Q1 2026, as well as the annual accountants’ reports, without triggering a technical default or other negative consequences under its key financing agreements.

What this means for shareholders:

• Delayed Financial Reporting: The Company’s 2025 Form 10-K and related reports, originally due earlier in 2026, are now permitted until June 10, 2026. Any further key financial reporting (such as Q1 2026 quarterly statements) is pushed back in line with this extension.
• No Immediate Default: The waiver ensures that, as long as Driven Brands meets the new deadlines, there will be no negative consequences under its securitization agreements, such as a breach of covenant, rapid amortization event, or manager termination event. This stability is crucial for maintaining the Company’s capital structure and credit profile.
• Consent Fee: Midland Loan Services charged a \$10,000 consent fee for granting the waiver, to be invoiced separately. While not material, this is a standard cost associated with such waivers.
• Potential Price Sensitivity: The delay in financial reporting may be seen as a red flag by some investors, given that timely and transparent reporting is a cornerstone for public company governance. While the Company expects to deliver the 2025 Form 10-K by the new deadline, any further delays or the reasons behind the delay (not specified in the filing) could cause concern about financial or operational issues.
• Forward-Looking Statements: The Company cautions that the timing of the filings is subject to various risks and uncertainties, and that delays could potentially occur.

Shareholder Takeaways

• This waiver prevents a technical default on the Company’s securitization obligations, which would have had serious consequences for the Company’s liquidity and capital structure.
• The delay in reporting is potentially price sensitive, as it may reflect underlying financial reporting or audit challenges. Investors should monitor for the eventual release of the 2025 Form 10-K and Q1 2026 Form 10-Q, and consider any explanations provided by management regarding the delay.
• This event may impact investor sentiment and could affect the trading price of DRVN shares, depending on market perception of the reasons for the delay and the Company’s ability to meet the new deadlines.
• No other waivers or extensions are granted; all other obligations and covenants remain in force.

Exhibit Furnished

• The full text of the WBS Waiver dated April 22, 2026, is attached as Exhibit 99.1 to the 8-K filing.

Forward-Looking Statements & Risks

Driven Brands has included language cautioning that forward-looking statements regarding the timing of the filings are subject to risks and uncertainties, including the possibility of further delays. Investors are reminded that such statements are not guarantees of future results.

Conclusion

This extension is a material development for Driven Brands shareholders, as the timing and completeness of financial reporting are critical to stock valuation, credit risk, and investor confidence. Investors should closely monitor the Company for further updates regarding its financial reporting and any disclosures explaining the reasons for the delay.

Disclaimer: The above article is a summary and analysis of Driven Brands Holdings Inc.’s SEC filing, intended for informational purposes only. It does not constitute investment advice. Investors should perform their own due diligence and consult professional advisors before making any investment decisions. The Company’s actual results and filing timelines may differ from those discussed due to various risks and uncertainties.

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