Lyft stock price dropped 14% after Q4 earnings missed expectations

Investing.com - Lyft’s stock declined about 14% in after-hours trading after the ride-hailing company reported Q4 earnings that missed revenue expectations.

Revenue was $1.6 billion, compared to the analyst consensus of $1.76 billion. The company stated that the results included $168 million in legal, tax, and regulatory reserve changes and settlement impacts. Excluding these items, revenue would have been approximately $1.8 billion.

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Lyft announced a new $1 billion share repurchase program, following its first buyback in 2025.

Lyft reported net income of $2.8 billion, a significant increase from $61.7 million in the same period last year. This substantial profit mainly resulted from a one-time gain related to releasing valuation reserves, rather than core operational performance.

From an operational perspective, adjusted EBITDA grew 37% year-over-year to $154.1 million, with profit margin as a percentage of total bookings increasing slightly from 2.6% last year to 3.0%.

For the full year, Lyft achieved total bookings of $18.5 billion, up 15%, and revenue of $6.3 billion, up 9%. Adjusted EBITDA reached $528.8 million, up from $382.4 million in 2024, while free cash flow increased to $1.12 billion. The company stated that it generated over $1.1 billion in cash flow in 2025, a new record high.

Lyft expects first-quarter 2026 total bookings to reach between $4.86 billion and $5 billion, representing growth of 17% to 20%. Adjusted EBITDA is projected to be between $120 million and $140 million, with profit margins roughly flat year-over-year.

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