Lyft Earnings: Record 2025 Results, Soft 2026 Guidance

Lyft reported record fourth-quarter and full-year 2025 results on Feb. 10, 2026, alongside a new $1 billion share buyback program. The company issued first-quarter 2026 bookings guidance below expectations, citing severe winter storms, while emphasizing a strategic shift toward autonomous-vehicle deployments.

Record 2025 Results and Cash Generation

Lyft’s fourth-quarter gross bookings reached $5.1 billion, up 19% year over year, with revenue rising 3% to $1.6 billion. The revenue figure included a $168 million reserve for legal, tax, and regulatory matters, bringing adjusted revenue to $1.8 billion. Adjusted EBITDA, a proxy for operating profit, increased 37% to $154 million, about 3.0% of gross bookings.

Net income surged to $2.8 billion, driven mainly by a $2.9 billion release of a valuation allowance on U.S. federal and state deferred tax assets. This contrasted with $61.7 million in the prior-year quarter and represented roughly 54.3% of gross bookings.

Lyft ended the quarter with 29 million active riders, an 18% increase year over year, and reported 946 million rides for the full year, up 14%. For 2025, gross bookings rose 15% to $18.5 billion, and revenue grew 9% to $6.3 billion; excluding reserves, adjusted revenue totaled $6.5 billion. Adjusted EBITDA for the year was $529 million, about 2.9% of gross bookings. Full-year net income reached $2.8 billion, compared with $22.8 million in 2024.

The company converted strong operations into cash, generating $1.2 billion in net cash from operations and $1.1 billion in free cash flow for 2025. Lyft authorized a $1 billion share-repurchase program to return capital to shareholders.

Guidance, Winter Storms, and Autonomous Vehicle Strategy

Lyft guided first-quarter 2026 gross bookings to a range of $4.9 billion to $5.0 billion, implying 17% to 20% growth, with adjusted EBITDA forecast between $120 million and $140 million, or about 2.5% to 2.8% of bookings. The company said severe U.S. winter storms weighed on the quarter and the near-term outlook.

The reported fourth-quarter revenue fell short of Street estimates, which ranged from roughly $1.75 billion to $1.76 billion.

Management described 2026 as a “transformational phase,” highlighting plans for autonomous vehicle deployments in U.S. metros such as Dallas and Nashville, as well as overseas in London. CEO David Risher said, “2026 will be the year of the AV with deployments.”

The company is scheduled to discuss the quarter’s outlook and autonomous vehicle plans on an earnings conference call later on Feb. 10.