Lyft, Inc. (Nasdaq: LYFT) has announced exceptional financial results for the fourth quarter and full year ended December 31, 2025. This marks a significant milestone in the company’s recovery trajectory, showcasing robust growth across multiple financial metrics.

1. A Strong Comeback Story

CEO David Risher expressed optimism about the company’s transformation, stating, “2025 was an incredible year in Lyft’s comeback story. Through customer obsession, we’re transforming from your local, ‘out-to-dinner’ rideshare app to a global, hybrid transportation platform." Risher highlighted that 2026 will be pivotal for Lyft, focusing on the deployment of autonomous vehicles (AV) both in the U.S. and internationally.

2. Record Financial Performance

CFO Erin Brewer was equally enthusiastic, noting, “We delivered record financial performance in 2025 across all metrics, including all-time-high cash flow generation exceeding $1.1 billion.” This financial strength, combined with disciplined operational excellence, positions Lyft favorably for future growth and aligns with its long-term targets.

Fourth Quarter Highlights

Gross Bookings: $5.1 billion, a 19% increase year-over-year.

Revenue: $1.6 billion, up 3% year-over-year. Notably, revenue was impacted by $168 million due to legal and regulatory matters; without this, revenue would have reached $1.8 billion.

Net Income: $2.8 billion, significantly higher than $61.7 million in Q4 2024. This remarkable figure includes a benefit from the release of the valuation allowance.

Adjusted EBITDA: Increased by 37% year-over-year to $154.1 million, resulting in an adjusted EBITDA margin of 3.0%, compared to 2.6% in Q4 2024.

Full-Year Financial Highlights

Gross Bookings: Reached $18.5 billion, a 15% year-over-year increase.

Revenue: Totaled $6.3 billion, marking a 9% increase compared to the previous year.

Net Income: Achieved $2.8 billion, a stark contrast to $22.8 million in 2024, with net income as a percentage of gross bookings at 15.4%.

Adjusted EBITDA: Rose to $528.8 million from $382.4 million in 2024, reflecting a margin of 2.9%.

Net Cash from Operating Activities: $1.17 billion, compared to $849.7 million in 2024.

Free Cash Flow: Recorded at $1.12 billion, up from $766.3 million in the previous year.

3. Operational Growth

Lyft achieved significant operational milestones in 2025, including:

Record Rides: Total rides grew 14% year-over-year, totaling 945.5 million, marking the eleventh consecutive quarter of double-digit growth.

Active Riders: Q4 saw an 18% year-over-year increase in active riders, rising to 29.2 million. The total for 2025 reached an all-time high of 51.3 million annual riders.

Product Innovation: The launch of Lyft Teen aims to capture the substantial market of personal vehicle rides for ages 13-17 in the U.S., broadening Lyft's service offerings.

4. New Share Repurchase Program

In a move to enhance shareholder value, Lyft's Board of Directors has approved an additional $1 billion share repurchase program. This initiative follows the company’s inaugural share repurchase program in 2025 and allows for flexibility in executing repurchases based on market conditions and other relevant factors.

5. Q1 2026 Outlook

Looking ahead, Lyft provided guidance for Q1 2026, projecting:

Gross Bookings: Expected between $4.86 billion to $5.00 billion, representing a year-over-year increase of approximately 17% to 20%.

Adjusted EBITDA: Anticipated between $120 million to $140 million, with margins in line with Q1 2025.

6. Conclusion

Lyft's record financial results for Q4 and the full year of 2025 underscore the company's successful recovery and growth trajectory. With an eye toward innovation and expansion into the autonomous vehicle market, Lyft is well-positioned for continued success in the coming years. The robust financial performance, coupled with strategic initiatives, reflects the company's commitment to enhancing value for its shareholders and riders alike.

Original press release