Driven Brands Holdings Inc. reported a notable improvement in its financial performance for the three and nine months ended September 28, 2024, compared to the same periods in 2023. The company achieved net revenue of $591.7 million for Q3 2024, reflecting a 2% increase from $581.0 million in Q3 2023. For the nine-month period, total net revenue reached $1.775 billion, up 1% from $1.750 billion in the prior year.

Operating income for Q3 2024 was $39.5 million, a significant turnaround from an operating loss of $906.9 million in Q3 2023. For the nine months, the company reported an operating income of $178.5 million, compared to an operating loss of $732.1 million in the same period last year. Despite these improvements, Driven Brands recorded a net loss of $14.9 million for Q3 2024, a substantial reduction from a net loss of $799.3 million in Q3 2023. For the nine months, the company reported a net income of $19.5 million, contrasting with a net loss of $731.8 million in the previous year.

The company’s comprehensive income also showed improvement, with total comprehensive income of $6.8 million for Q3 2024, compared to a comprehensive loss of $825.7 million in Q3 2023. For the nine-month period, total comprehensive income was $21.2 million, up from a loss of $740.6 million in the prior year.

Driven Brands' cash and cash equivalents increased to $204.2 million as of September 28, 2024, from $176.5 million at the end of 2023. The company’s total assets decreased to $5.76 billion from $5.91 billion, while total liabilities also declined to $4.80 billion from $5.00 billion.

Strategically, Driven Brands made two acquisitions in 2024, totaling less than $2 million, and completed the sale of its Canadian distribution business for approximately $78 million, resulting in a gain of $3 million. The proceeds from this sale were partially used to repay secured senior notes and a portion of the term loan. The company also repurchased $50 million of its common stock under a share repurchase program authorized in August 2023.

In terms of operational metrics, Driven Brands added 121 net new stores in the first nine months of 2024, contributing to a system-wide sales increase of 3% to approximately $4.9 billion. The Maintenance segment was a key driver of growth, with revenue increasing by 14% for the three months ended September 28, 2024, compared to the same period in 2023.