Lyft (NASDAQ:LYFT – Get Free Report) released its earnings results on Thursday. The ride-sharing company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.23), FiscalAI reports. The business had revenue of $1.82 billion for the quarter, compared to analysts’ expectations of $1.92 billion. Lyft had a negative return on equity of 1.20% and a net margin of 42.32%. Lyft’s quarterly revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the company earned $0.11 EPS.
Here are the key takeaways from Lyft’s conference call:
- Lyft reported 17% year-over-year gross bookings growth to $5.6 billion and 10% rides growth to 273.5 million. Adjusted EBITDA rose 47% to a record $204 million, or 3.6% of bookings, while active riders reached 31.6 million.
- Management said North American rides growth accelerated for a second consecutive quarter, with a third acceleration expected in Q4; driver hours reached a record and ETAs improved. The company also cited strength in Canada, Europe, bikes and scooters, and partner-related rides.
- Lyft said total cost of revenue declined year over year as it worked to reduce insurance costs, and its latest insurance renewal is expected to have a modest impact, below the industry average. It reported more than $1 billion in trailing 12-month free cash flow for a fifth straight quarter and expects about $500 million of share repurchases for 2026.
- Lyft and DoorDash introduced Lyft Go, offering DashPass members 8% back in credits for rides and delivery. Management said hundreds of thousands had already linked accounts, but it will assess the program’s effect on customer acquisition, frequency, and economics; near-term impact is reflected in Q4 guidance.
- Lyft is expanding its AV partnerships, including fleet-management and marketplace work with Waymo in Nashville and a planned Baidu commercial service in London next year. Management described early progress and expects to expand Nashville’s serviced fleet by year-end, while noting current AV investment is relatively immaterial and future scale may require third-party capital.
Lyft Trading Down 4.2%
Shares of NASDAQ LYFT traded down $0.75 during trading on Friday, hitting $17.09. 23,907,601 shares of the company were exchanged, compared to its average volume of 9,795,465. Lyft has a 12-month low of $12.46 and a 12-month high of $25.54. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 0.59. The company has a fifty day moving average price of $16.20 and a 200-day moving average price of $15.13. The firm has a market capitalization of $6.47 billion, a PE ratio of 2.54, a P/E/G ratio of 1.03 and a beta of 2.06.
More Lyft News
Here are the key news stories impacting Lyft this week:
- Positive Sentiment: Lyft reported record rides and gross bookings for Q3, with coverage also highlighting stronger adjusted EBITDA. The CEO said rider growth has remained in double digits for eight consecutive quarters. Lyft reports record rides and gross bookings
- Positive Sentiment: Lyft launched Lyft Go, a $9.99 monthly membership bundling DoorDash DashPass with ride credits. The offering could encourage customer retention and increase use across both services. Lyft debuts joint membership with DoorDash
- Positive Sentiment: Lyft is expanding its Waymo robotaxi fleet in Nashville, while CEO David Risher said autonomous vehicles are not hurting the company’s business. Partnerships may let Lyft participate in autonomous rides without building its own fleet. Lyft to expand Waymo robotaxi fleet
- Neutral Sentiment: Truist raised its price target to $18 from $16 but kept a Hold rating, suggesting limited near-term conviction despite the higher valuation estimate. Truist rating and target
- Negative Sentiment: Q3 results disappointed on reported figures: Lyft posted a $0.03-per-share loss and $1.82 billion in revenue, below cited consensus estimates. Legal, tax, and regulatory reserve changes and settlements—including a reported $117.9 million charge—dented results, although some coverage emphasized stronger adjusted performance. Lyft posts surprise loss on settlement
- Negative Sentiment: Analysts flagged slowing growth and execution risks. Scotiabank cut its target to $16 from $17, and Rosenblatt lowered its target to $18 from $19; both maintained cautious ratings. Analyst commentary on Lyft
Insider Activity
In related news, CAO Stephen Hope sold 5,982 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $17.34, for a total value of $103,727.88. Following the completion of the sale, the chief accounting officer owned 299,974 shares of the company’s stock, valued at approximately $5,201,549.16. This represents a 1.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lindsay Llewellyn sold 13,204 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $16.64, for a total transaction of $219,714.56. Following the sale, the insider owned 781,152 shares of the company’s stock, valued at approximately $12,998,369.28. The trade was a 1.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 61,586 shares of company stock worth $1,024,326. Insiders own 0.92% of the company’s stock.
Wall Street Analyst Weigh In
A number of equities analysts recently weighed in on the stock. Canaccord Genuity Group boosted their price target on shares of Lyft from $15.00 to $16.00 and gave the stock a “hold” rating in a research report on Monday, August 10th. Jefferies Financial Group upped their price objective on shares of Lyft from $15.00 to $15.50 and gave the company a “hold” rating in a research note on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $17.00 price objective on shares of Lyft in a report on Monday, August 10th. Truist Financial increased their price objective on shares of Lyft from $16.00 to $18.00 and gave the company a “hold” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their target price on shares of Lyft from $18.00 to $19.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Ten equities research analysts have rated the stock with a Buy rating, twenty-five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $19.00.
Read Our Latest Research Report on LYFT
About Lyft
Lyft, Inc is a technology company that operates a transportation network platform in the United States and Canada. Its platform connects passengers with drivers through a mobile application and website, primarily offering on-demand rides in private vehicles, taxis and other transportation options.
The company also provides access to bicycles and scooters in select markets, as well as vehicle rentals and transportation solutions for businesses, healthcare organizations and other institutions.
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