Lyft (NASDAQ:LYFT) Announces Earnings Results

Lyft (NASDAQ:LYFT) posted its quarterly 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. Lyft had a negative return on equity of 1.20% and a net margin of 42.32%. The business had revenue of $1.82 billion for the quarter, compared to analysts’ expectations of $1.92 billion. During the same period in the prior year, the business posted $0.11 earnings per share. The business’s quarterly revenue 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 traded down $0.75 on Friday, hitting $17.09. 23,907,601 shares of the company traded hands, compared to its average volume of 9,795,465. The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 0.33. The company has a 50 day moving average of $16.20 and a 200-day moving average of $15.13. Lyft has a 12-month low of $12.46 and a 12-month high of $25.54.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on LYFT. Roth Capital reissued a “buy” rating and set a $25.00 target price (up from $23.00) on shares of Lyft in a research note on Monday, August 10th. Wells Fargo & Company dropped their target price on shares of Lyft from $19.00 to $17.00 and set an “equal weight” rating for the company in a report on Monday, October 5th. Jefferies Financial Group increased their price target on Lyft from $15.00 to $15.50 and gave the company a “hold” rating in a report on Tuesday, July 14th. Morgan Stanley lifted their target price on shares of Lyft from $17.00 to $18.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 30th. Finally, BTIG Research reaffirmed a “neutral” rating on shares of Lyft in a research note on Friday, September 18th. Ten analysts have rated the stock with a Buy rating, twenty-five have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $19.00.

Lyft News Summary

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

Insiders Place Their Bets

In other Lyft news, Director David Lawee sold 4,613 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $17.33, for a total transaction of $79,943.29. Following the transaction, the director owned 119,124 shares in the company, valued at approximately $2,064,418.92. The trade was a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Stephen Hope sold 5,982 shares of the stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $17.34, for a total value of $103,727.88. Following the completion of the transaction, the chief accounting officer owned 299,974 shares of the company’s stock, valued at $5,201,549.16. The trade was a 1.96% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 61,586 shares of company stock valued at $1,024,326. Corporate insiders own 0.92% of the company’s stock.

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.