Driven Brands Holdings Inc., parent company of the CARSTAR collision repair network, saw its shares plunge Wednesday after disclosing accounting errors that it said will require restating past financial statements and delaying its annual results.
The company said its audit committee concluded Feb. 23 that there were material errors in previously issued consolidated financial statements for fiscal 2024 and fiscal 2023, and in certain unaudited interim financial statements, and that those statements should not be relied upon.
In a Form 8-K filed Feb. 25, Driven Brands said the issues were identified while preparing its annual report for fiscal 2025, ended Dec. 27, 2025.
The company listed several categories of errors, including lease accounting problems that affect right-of-use assets and liabilities, unreconciled differences in cash accounts affecting cash balances and operating cash flows, and expense classification errors that shifted some supply and other costs into company-operated store expenses. It also cited other errors tied mainly to fiscal 2023 and 2024, including items involving the income tax provision, fixed assets, cloud computing and misclassifications, and said it identified inappropriately recognized revenue in its ATI business primarily related to fiscal 2025.
Driven Brands said management identified material weaknesses in internal controls over financial reporting and concluded internal controls and disclosure controls and procedures were not effective as of Dec. 27, 2025.
In trading on the TSE, the stock fell roughly 30%, to $11.60 per share at close on Wednesday, Feb. 25, 2026. In August 2023, the stock dropped over 40% after missing earnings expectations, resulting in shareholder class action investigations.
The company said it expects to file a Form 12b-25 to seek a 15-day extension to file its annual report for fiscal 2025. It also said its review is ongoing and it may identify further material errors.
Driven Brands’ portfolio includes CARSTAR, MAACO, Meineke Car Care, Take 5 Oil Change and Auto Glass Now.
