Lyft Reports Record Q4 2025 Earnings with Ambitious Growth Targets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy LYFT?
Source: seekingalpha
- Strong Financial Performance: Lyft achieved record free cash flow (FCF) growth in Q4 2025, indicating significant improvements in profitability and cash flow management, which is expected to further enhance shareholder returns.
- Future Target Setting: The company has outlined a goal to reach $25 billion in gross bookings by 2027, demonstrating confidence in future growth while focusing on margin expansion and global market penetration.
- Quarterly Growth Expectations: Lyft anticipates a bookings growth of 17%-20% in Q1 2026, reflecting robust market demand recovery and potentially boosting investor confidence in Lyft's future performance.
- Strategic Focus: Lyft's growth strategy will concentrate on enhancing operational efficiency and expanding market share, aiming to improve customer experience through continuous technological innovation and service optimization to maintain a competitive edge in the ride-sharing market.
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Analyst Views on LYFT
Wall Street analysts forecast LYFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LYFT is 24.06 USD with a low forecast of 16.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
7 Buy
20 Hold
2 Sell
Hold
Current: 16.610
Low
16.00
Averages
24.06
High
32.00
Current: 16.610
Low
16.00
Averages
24.06
High
32.00
About LYFT
Lyft, Inc. is a global mobility platform offering rideshare, taxis, private hire vehicles, car sharing, bikes, and scooters across North America and Europe. It operates across 11 countries and in nearly 1,000 cities, and Lyft Urban Solutions supports bike sharing in 16 countries and more than 86 cities. Its Lyft mobile application (the Lyft App) connects riders with drivers for on-demand ride services and supports a variety of other multimodal mobility solutions. Its offerings on the Lyft App include an expanded set of transportation modes in select cities, such as access to a network of shared bikes and scooters (Light Vehicles) for shorter rides and first-mile and last-mile legs of multimodal trips. FREENOW by Lyft is the European taxi app featuring broad multi-mobility options. Through FREENOW, passengers can access various mobility services within a single app, including taxis, private hire vehicles, car sharing, car rental, e-scooters, e-bikes, e-mopeds, and public transport.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lyft Achieves Record Profitability in Q4 2025
- Record Financial Performance: Lyft achieved its most profitable quarter in Q4 2025, generating over $1.1 billion in cash flow, reflecting the company's ongoing commitment to operational excellence and enhancing its competitive position in the market.
- Booking and Active Rider Growth: Lyft's gross bookings rose 19% year-over-year to $5.1 billion, with active riders increasing by 18%, contributing to a 3% revenue growth to $1.6 billion, surpassing Wall Street estimates and indicating strong market performance.
- Significant Profitability Improvement: Adjusted EBITDA surged 37% to $154.1 million, representing 3% of gross bookings compared to 2.6% a year ago, showcasing the company's enhanced profitability and operational efficiency.
- Future Growth Outlook: Lyft anticipates achieving $25 billion in gross bookings and over $1 billion in adjusted EBITDA by 2027, driven by business travel, partnerships, and autonomous vehicle deployments, indicating strong growth potential in the coming years.
See More
Lyft Reports Record Q4 2025 Earnings with Ambitious Growth Targets
- Strong Financial Performance: Lyft achieved record free cash flow (FCF) growth in Q4 2025, indicating significant improvements in profitability and cash flow management, which is expected to further enhance shareholder returns.
- Future Target Setting: The company has outlined a goal to reach $25 billion in gross bookings by 2027, demonstrating confidence in future growth while focusing on margin expansion and global market penetration.
- Quarterly Growth Expectations: Lyft anticipates a bookings growth of 17%-20% in Q1 2026, reflecting robust market demand recovery and potentially boosting investor confidence in Lyft's future performance.
- Strategic Focus: Lyft's growth strategy will concentrate on enhancing operational efficiency and expanding market share, aiming to improve customer experience through continuous technological innovation and service optimization to maintain a competitive edge in the ride-sharing market.
See More
Teradata Quarterly Earnings Beat Expectations
- Strong Earnings Performance: Teradata reported earnings of 74 cents per share, surpassing the analyst consensus estimate of 56 cents, indicating robust profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $421 million, exceeding the analyst consensus estimate of $400.817 million, suggesting sustained strong market demand that could drive future business expansion.
- Stock Price Surge: Teradata shares jumped 16.5% to $34.07 in pre-market trading, reflecting a positive market reaction to the earnings report, which may attract more investor interest.
- Significant Market Impact: This earnings beat not only lifted the company's stock price but could also positively influence investor sentiment across the industry, further solidifying Teradata's market position in the data analytics sector.
See More
Lyft Reports Record Q4 2025 Profitability and Growth
- Significant Performance Growth: Lyft achieved a 19% year-over-year growth in gross bookings for Q4 2025, with active riders increasing by 18% and cash flow exceeding $1 billion, marking the company's highest profitability ever, reflecting strong market demand and operational efficiency.
- Strategic Expansion Plans: CEO Risher emphasized the company's expansion into the European market and entry into the luxury chauffeur sector, indicating Lyft's proactive positioning in the $1 trillion autonomous vehicle market to enhance market share and competitiveness.
- New Product Launch: The introduction of Lyft Teen targets the U.S. market to attract younger users, further expanding the customer base, while an independent study shows annual savings for users of major rideshare apps, enhancing user loyalty.
- Optimistic Future Outlook: CFO Brewer reaffirmed the 2027 targets, including $25 billion in gross bookings and a 4% adjusted EBITDA margin, demonstrating the company's confidence in future growth, particularly in core markets and ongoing improvements in high-value modes.
See More
Analysis of After-Hours Trading Performance of Multiple Companies
- Robinhood Revenue Decline: Robinhood's Q4 revenue of $1.28 billion fell short of the $1.34 billion expected by analysts, with transaction revenue also missing at $776 million, leading to a 7% drop in stock price, reflecting market concerns over its profitability.
- Lyft's Poor Performance: Lyft's stock dropped 15%, as its Q4 bookings of $5.07 billion met expectations, but its first-quarter adjusted EBITDA guidance of $120 million to $140 million fell short of the $139.8 million consensus, indicating pressure on profitability.
- Mattel's Disappointing Guidance: Mattel's stock plummeted 25%, with full-year adjusted earnings guidance ranging from $1.18 to $1.30 per share, significantly below the $1.77 expected by the market, and Q4 results also missed expectations, highlighting weakness in the toy market.
- Cloudflare's Strong Outlook: Cloudflare's stock surged 10% after projecting Q1 revenue between $620 million and $621 million, exceeding the $614 million consensus, and its Q4 results also surpassed analyst expectations, showcasing strong growth potential in the cloud networking market.
See More
Lyft Announces $1 Billion Share Repurchase Program Amid Disappointing Earnings
- Disappointing Earnings Report: Lyft's fourth-quarter earnings per share were not comparable, with revenue reported at $1.59 billion, falling short of the $1.76 billion expected by analysts, resulting in a 15% drop in stock price during after-hours trading despite a 3% year-over-year growth.
- Lackluster User Metrics: The company reported 29.2 million active riders in the fourth quarter, missing the StreetAccount estimate of 29.5 million, while total rides reached 243.5 million, significantly below the FactSet estimate of 256.6 million, indicating stagnation in user growth.
- Adjusted Profitability Outlook: Lyft anticipates adjusted EBITDA for the current quarter to range between $120 million and $140 million, which is below analysts' expectations of $139.8 million, highlighting pressure on profitability that could affect investor confidence.
- Share Buyback Initiative: The board approved a share repurchase program of up to $1 billion, aimed at enhancing shareholder value; despite the current underperformance, this initiative may help bolster market confidence in the long run.
See More
Lyft Achieves Record Profitability in Q4 2025
- Record Financial Performance: Lyft achieved its most profitable quarter in Q4 2025, generating over $1.1 billion in cash flow, reflecting the company's ongoing commitment to operational excellence and enhancing its competitive position in the market.
- Booking and Active Rider Growth: Lyft's gross bookings rose 19% year-over-year to $5.1 billion, with active riders increasing by 18%, contributing to a 3% revenue growth to $1.6 billion, surpassing Wall Street estimates and indicating strong market performance.
- Significant Profitability Improvement: Adjusted EBITDA surged 37% to $154.1 million, representing 3% of gross bookings compared to 2.6% a year ago, showcasing the company's enhanced profitability and operational efficiency.
- Future Growth Outlook: Lyft anticipates achieving $25 billion in gross bookings and over $1 billion in adjusted EBITDA by 2027, driven by business travel, partnerships, and autonomous vehicle deployments, indicating strong growth potential in the coming years.
See More
Lyft Reports Record Q4 2025 Earnings with Ambitious Growth Targets
- Strong Financial Performance: Lyft achieved record free cash flow (FCF) growth in Q4 2025, indicating significant improvements in profitability and cash flow management, which is expected to further enhance shareholder returns.
- Future Target Setting: The company has outlined a goal to reach $25 billion in gross bookings by 2027, demonstrating confidence in future growth while focusing on margin expansion and global market penetration.
- Quarterly Growth Expectations: Lyft anticipates a bookings growth of 17%-20% in Q1 2026, reflecting robust market demand recovery and potentially boosting investor confidence in Lyft's future performance.
- Strategic Focus: Lyft's growth strategy will concentrate on enhancing operational efficiency and expanding market share, aiming to improve customer experience through continuous technological innovation and service optimization to maintain a competitive edge in the ride-sharing market.
See More
Teradata Quarterly Earnings Beat Expectations
- Strong Earnings Performance: Teradata reported earnings of 74 cents per share, surpassing the analyst consensus estimate of 56 cents, indicating robust profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $421 million, exceeding the analyst consensus estimate of $400.817 million, suggesting sustained strong market demand that could drive future business expansion.
- Stock Price Surge: Teradata shares jumped 16.5% to $34.07 in pre-market trading, reflecting a positive market reaction to the earnings report, which may attract more investor interest.
- Significant Market Impact: This earnings beat not only lifted the company's stock price but could also positively influence investor sentiment across the industry, further solidifying Teradata's market position in the data analytics sector.
See More
Lyft Reports Record Q4 2025 Profitability and Growth
- Significant Performance Growth: Lyft achieved a 19% year-over-year growth in gross bookings for Q4 2025, with active riders increasing by 18% and cash flow exceeding $1 billion, marking the company's highest profitability ever, reflecting strong market demand and operational efficiency.
- Strategic Expansion Plans: CEO Risher emphasized the company's expansion into the European market and entry into the luxury chauffeur sector, indicating Lyft's proactive positioning in the $1 trillion autonomous vehicle market to enhance market share and competitiveness.
- New Product Launch: The introduction of Lyft Teen targets the U.S. market to attract younger users, further expanding the customer base, while an independent study shows annual savings for users of major rideshare apps, enhancing user loyalty.
- Optimistic Future Outlook: CFO Brewer reaffirmed the 2027 targets, including $25 billion in gross bookings and a 4% adjusted EBITDA margin, demonstrating the company's confidence in future growth, particularly in core markets and ongoing improvements in high-value modes.
See More
Analysis of After-Hours Trading Performance of Multiple Companies
- Robinhood Revenue Decline: Robinhood's Q4 revenue of $1.28 billion fell short of the $1.34 billion expected by analysts, with transaction revenue also missing at $776 million, leading to a 7% drop in stock price, reflecting market concerns over its profitability.
- Lyft's Poor Performance: Lyft's stock dropped 15%, as its Q4 bookings of $5.07 billion met expectations, but its first-quarter adjusted EBITDA guidance of $120 million to $140 million fell short of the $139.8 million consensus, indicating pressure on profitability.
- Mattel's Disappointing Guidance: Mattel's stock plummeted 25%, with full-year adjusted earnings guidance ranging from $1.18 to $1.30 per share, significantly below the $1.77 expected by the market, and Q4 results also missed expectations, highlighting weakness in the toy market.
- Cloudflare's Strong Outlook: Cloudflare's stock surged 10% after projecting Q1 revenue between $620 million and $621 million, exceeding the $614 million consensus, and its Q4 results also surpassed analyst expectations, showcasing strong growth potential in the cloud networking market.
See More
Lyft Announces $1 Billion Share Repurchase Program Amid Disappointing Earnings
- Disappointing Earnings Report: Lyft's fourth-quarter earnings per share were not comparable, with revenue reported at $1.59 billion, falling short of the $1.76 billion expected by analysts, resulting in a 15% drop in stock price during after-hours trading despite a 3% year-over-year growth.
- Lackluster User Metrics: The company reported 29.2 million active riders in the fourth quarter, missing the StreetAccount estimate of 29.5 million, while total rides reached 243.5 million, significantly below the FactSet estimate of 256.6 million, indicating stagnation in user growth.
- Adjusted Profitability Outlook: Lyft anticipates adjusted EBITDA for the current quarter to range between $120 million and $140 million, which is below analysts' expectations of $139.8 million, highlighting pressure on profitability that could affect investor confidence.
- Share Buyback Initiative: The board approved a share repurchase program of up to $1 billion, aimed at enhancing shareholder value; despite the current underperformance, this initiative may help bolster market confidence in the long run.
See More
