{"url":"https://newsforagent.com/news/2026-11-07/diversified-royalty-q3-2026-revenue","markdown_url":"https://newsforagent.com/news/2026-11-07/diversified-royalty-q3-2026-revenue.md","title":"Diversified Royalty Posts $31.5 Million Q3 Revenue, Up 72.7%","headline":"Diversified Royalty Revenue Jumps 72.7% to $31.5 Million on Mr. Lube + Tires Deal","description":"Diversified Royalty reported $31.5 million in Q3 2026 revenue, up 72.7%, as Mr. Lube + Tires system sales slipped 1.7% and the payout ratio fell to 86.9%.","section":"Earnings & Results","published_at":"2026-11-07T01:07:59+00:00","modified_at":"2026-11-07T01:07:59+00:00","author":"News Desk","key_takeaways":["Diversified Royalty reported Q3 2026 revenue of $31.5 million, up 72.7% from a year earlier.","Mr. Lube + Tires system sales fell 1.7% to $126.4 million in Q3 2026.","The payout ratio was 86.9% on dividends of $0.0716 per share for the quarter."],"companies":[{"name":"Diversified Royalty","is_primary":true,"profile_url":"https://akta.pro/company-profiles/00057l2/diversified-royalty","website":"https://diversifiedroyaltycorp.com"},{"name":"BarBurrito","is_primary":false,"profile_url":"https://akta.pro/company-profiles/000hvjw/barburrito","website":"https://www.barburrito.ca"},{"name":"Mr. Mikes","is_primary":false,"profile_url":"https://akta.pro/company-profiles/000no87/mr-mikes","website":"https://www.mrmikes.ca"}],"source":{"publisher":"GlobeNewswire","title":"Diversified Royalty Corp. Announces Third Quarter 2026 Results","url":"https://www.globenewswire.com/news-release/2026/11/07/3397929/0/en/diversified-royalty-corp-announces-third-quarter-2026-results.html"},"other_sources":[],"tags":["Earnings & Results","Diversified Royalty","BarBurrito","Mr. Mikes"],"body_markdown":"[Diversified Royalty](https://akta.pro/company-profiles/00057l2/diversified-royalty) Corp. reported third-quarter 2026 revenue of $31.5 million, up 72.7% from $18.3 million a year earlier, according to [GlobeNewswire](https://www.globenewswire.com/news-release/2026/11/07/3397929/0/en/diversified-royalty-corp-announces-third-quarter-2026-results.html). The Vancouver-based multi-royalty corporation acquires top-line royalty streams from franchisors across North America and operates the [Mr.](https://akta.pro/company-profiles/000no87/mr-mikes) Lube + Tires franchisor business in Canada.\n\n## Diversified Royalty's Q3 Results and Mr. Lube + Tires\n\nCombined contribution was $24.9 million in Q3 2026, up 27.2% from $19.6 million in Q3 2025. Distributable cash rose 21.9% to $15.5 million, and the payout ratio fell to 86.9% on dividends of $0.0716 per share, compared with 91.9% on dividends of $0.0688 per share a year earlier.\n\nMr. Lube + Tires system sales were $126.4 million in Q3 2026, a 1.7% decrease from $128.5 million in Q3 2025, as reported by Mr. Lube Canada LP. Same-store-sales growth was negative 5.1% for the quarter, compared with 11.2% in the comparative period in 2025. Mr. Lube + Tires adjusted EBITDA contribution to Diversified Royalty was $13.4 million in Q3 2026.\n\nSean Morrison, Chief Executive Officer of Diversified Royalty, said: \"Inflation in fuel and other vehicle operating costs is leading people to drive fewer kilometres, which has reduced demand for oil changes and maintenance services.\" Morrison said Mr. Lube + Tires remains on track to open 18 new locations in 2026 and to meet the previously disclosed estimate of $58.7 million in adjusted EBITDA contribution for the twelve months following the acquisition.\n\n## Mr. Lube + Tires Deal and Funding Figures\n\nDiversified Royalty completed its acquisition of the Mr. Lube + Tires franchisor business on June 16, 2026, according to akta.pro [company records](https://akta.pro/company-data), at a gross purchase price of $235 million. As part of the transaction, management rolled $20.6 million of equity into the purchaser entity and retained approximately 4% interest post-transaction, the same records show.\n\nOn July 6, 2026, Diversified Royalty closed a bought deal public offering of 12,339,500 common shares at $4.66 per share for gross proceeds of approximately $57.5 million. On July 7, 2026, the company used partial net proceeds to make a $38.5 million principal paydown on its Acquisition Facility, reducing the balance to nil.\n\n## Dividends Declared Before the Results\n\nDiversified Royalty announced a $0.02375 per common share cash dividend for October 2026, payable October 30 to shareholders of record as of October 15, equal to $0.285 per share on an annualized basis, the Financial Post reported. The company approved a $0.02375 per common share dividend for September 2026, payable September 29 to shareholders of record as of September 15, Yahoo reported.\n\n## Mr. Lube + Tires' 2027 Location Plans\n\nMr. Lube + Tires is budgeting 16 new locations for 2027 and is considering bolt-on acquisition opportunities, Morrison said. The business added 9 new locations to date, and Diversified Royalty said Mr. Lube + Tires experiences seasonality where the fourth quarter is typically the strongest.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}