Lyft (NASDAQ:LYFT) Releases Earnings Results, Misses Expectations By $0.23 EPS

Key Points

• Lyft reported a $0.03-per-share loss, missing consensus expectations by $0.23, while revenue of $1.82 billion also fell short of estimates. Revenue nevertheless increased 8.1% year over year; legal, tax and regulatory charges weighed on reported results.
• Operational metrics were stronger: gross bookings grew 17% to $5.6 billion, rides increased 10% to 273.5 million, and adjusted EBITDA rose 47% to a record $204 million.
• Lyft shares fell 4.2% after the results. Analysts’ consensus rating remained “Hold,” with an average price target of $19.

Lyft (NASDAQ:LYFT - Get Free Report) posted its quarterly earnings data on Thursday. The ride-sharing company reported ($0.03) EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.23), FiscalAI reports. Lyft had a net margin of 42.32% and a negative return on equity of 1.20%. The firm had revenue of $1.82 billion during the quarter, compared to the consensus estimate of $1.92 billion. During the same period in the prior year, the company posted $0.11 earnings per share. The company's revenue for the quarter was up 8.1% compared to the same quarter last year.

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 Stock Down 4.2%

LYFT stock traded down $0.75 during midday trading on Friday, hitting $17.09. The company's stock had a trading volume of 23,907,601 shares, compared to its average volume of 9,795,465. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 0.59. Lyft has a 12 month low of $12.46 and a 12 month high of $25.54. The firm's 50-day moving average is $16.20 and its 200-day moving average is $15.13.

Insider Buying and Selling at Lyft

In other news, CAO Stephen Hope sold 5,982 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $17.34, for a total value of $103,727.88. Following the transaction, the chief accounting officer owned 299,974 shares in the company, valued at $5,201,549.16. This represents a 1.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lindsay Llewellyn sold 13,204 shares of Lyft stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $16.64, for a total value of $219,714.56. Following the transaction, the insider directly owned 781,152 shares in the company, 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 sold 61,586 shares of company stock worth $1,024,326. 0.92% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on LYFT. Raymond James Financial restated a "market perform" rating on shares of Lyft in a research note on Friday. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $17.00 price objective on shares of Lyft in a report on Monday, August 10th. Morgan Stanley lifted their target price on Lyft from $17.00 to $18.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. Guggenheim cut shares of Lyft from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $22.00 to $16.00 in a report on Thursday, September 17th. Finally, BTIG Research reissued a "neutral" rating on shares of Lyft in a report on Friday, September 18th. Ten investment analysts have rated the stock with a Buy rating, twenty-five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $19.00.

Key Stories Impacting Lyft

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

Lyft Company Profile

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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