DRVN

Driven Brands is a genuinely improving operating business that should not be confused with the headline. Core segments are growing — the MD&A reports same-store sales of +7.9% at Auto Glass Now and +6.2% at Take 5, plus 175 net new stores — driving FY2025 revenue to $1.86B (+6.3%). Cash generation is the real strength: operating cash flow rose 35.5% to $331M against $223M of capex (capex itself down 22.8%), and management used that, plus the Canadian distribution and U.S. Car Wash divestitures, to repay debt — long-term debt fell 29.2% to $1.88B, cutting interest expense by $36M. Operating income of $231M (+15.7%) and a 12.4% operating margin show the underlying franchise is solid.

But the eye-catching +147% net income growth to $140M (EPS $0.85) is largely an accounting artifact, not operating momentum. Management's own walk attributes the swing to a $37M deferred-tax valuation-allowance release (OBBBA), a $32M FX tailwind, $28M lower impairments, and $19M less pre-IPO share-based comp — items that do not recur. The cleaner gauges barely moved: Adjusted Net Income rose only to $199M from $175M and Adjusted EBITDA was essentially flat at $449M vs $443M. So pay roughly 11.6x adjusted earnings and ~9x EV/EBITDA for a business growing earnings power in the low single digits, not 147%.