Shares of Charlotte-based car repair and services company Driven Brands Holdings dipped more than 38% in early trading on Wednesday after filing an SEC report outlining “material errors” in its financial statements over the past three years. The decrease wiped out about $1 billion in market value.
Driven discovered the errors while preparing its financial report for 2025 and its audit committee and management “concluded that such financial statements should not be relied upon,” according to the filing. Driven was supposed to release its fourth-quarter and 2025 full-year financial results on Wednesday, but will instead ask for a 15-day extension.
Driven “has identified material weaknesses in the company’s internal control over financial reporting, resulting in the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of Dec. 27, 2025,” the filing states. Errors in financial reports cover 2023, 2024 and 2025.
Driven Brands owns or franchises more than 5,000 locations under such names as Take 5 Oil Change, Meineke Car Care, Maaco and 1-800-Radiator & AC. It has more than 10,000 employees, operates in 13 countries and services about 70 million vehicles per year.
Shares closed Tuesday at $16.61 and opened Wednesday at $9.95 before falling to a 52-week low of $9.80. Shares recovered to near $11 by Wednesday afternoon. Driven has a $1.7 billion market capitalization as of 2 p.m. Wednesday, compared to $2.7 billion on Tuesday. Share volume at 2:30 p.m. Wednesday was more than 9.1 million, compared to average daily volume of 977,300.
Steve Alexander, senior director of investor relations for Driven, said the company would not have any comment beyond its SEC filings.
Errors range from the “completeness and accuracy of recording leases” to “overstatements of cash and revenue and understatement of selling, general and administrative expense,” the filing states.
Driven is discussing its problems with PricewaterhouseCoopers, its independent public accounting firm.
In May, Driven’s chief operating officer, Daniel Rivera, was named president and CEO. He replaced Jonathan Fitzpatrick, who had held the positions since 2012. Fitzpatrick remained on the company board.
In December, Driven announced it would sell IMO, its international car wash business, to New York City-based Franchise Equity Partners for more than $476 million. At the time, Driven reported its network generated approximately $2.1 billion in annual revenue from approximately $6.3 billion in systemwide sales.
