Lyft (NASDAQ: LYFT) reported second-quarter 2025 revenue of $1.59 billion, just shy of FactSet consensus estimates of $1.61 billion.
The news sent Lyft stock down more than 7% in after-hours trading.
CEO David Risher said, “We delivered off-the-charts performance, resulting in our strongest quarter ever.”
He added, “Our marketplace is thriving, our TAM is expanding with the close of Freenow, and we are building meaningful partnerships, including with Baidu and United Airlines.”
Lyft Q2 2025 Highlights
Financials
Revenue: $1.59 billion (up 11% year over year)
Gross Bookings: $4.5 billion (up 12% YoY; all-time high)
Net Income: $40.3 million (vs. $5.0 million in Q2 2024)
Adjusted EBITDA: $129.4 million (up 26% YoY)
Adjusted EBITDA Margin: 2.9% of Gross Bookings
Free Cash Flow: $329.4 million (record high)
Operating Cash Flow: $343.7 million
Share Buybacks: 12.8 million shares repurchased for $200 million during the quarter
Operations
Rides & Rider Growth
Total Rides: 234.8 million (up 14% YoY; ninth straight quarter of double-digit growth)
Active Riders: 26.1 million (up 10% YoY; record high)
Lyft Silver: Strong retention (~80%) with nearly 1 in 5 activations from new users
Outlook & Profitability Path
Q3 2025 guidance includes:
Gross Bookings: $4.65B to $4.80B (13%–17% YoY growth)
Adjusted EBITDA: $125M to $145M
EBITDA Margin: 2.7%–3.0%
Q3 will include two months of combined results from FreeNow, which closed on July 31
Lyft Stock Performance
Lyft stock closed down 3.3% today at $14.04. It’s up about 28% over the past year, surging in May despite a revenue miss, after the company reported strong metrics, including free cash flow of $280.7 million and announced an expansion of its stock buyback program to $750 million.
Coming into today’s earnings release, analysts held a mixed view on the stock. According to MarketBeat, 33 analysts currently cover Lyft, with 9 rating it a “Buy,” 23 a “Hold,” and 1 a “Sell.” The average 12-month price target is $16.98, with estimates ranging from $10.50 to $28.00.
UBS raised its price target on Lyft from $14 to $15 on July 29, while reiterating its Neutral rating.
What to Expect from Today’s Call
Lyft will hold its Q2 2025 earnings call at 5:00 PM Eastern. Analysts are expected to focus on several key areas:
Autonomous Vehicle Strategy: Updates on Lyft’s AV efforts, particularly its new partnership with Baidu, and how the company plans to integrate robotaxis into its future platform. The growing push toward autonomous vehicles continues to weigh on the broader rideshare industry — including sector leader Uber, which faced a flurry of analyst questions about its AV roadmap during today’s earnings call.
European Expansion: Integration of FreeNow’s operations and Lyft’s first significant push outside North America.
Rider and Revenue Metrics: Trends in rides completed, active riders, and revenue per active rider (ARPU), along with commentary on demand in major urban markets.
Profitability and Margins: Guidance on adjusted EBITDA, free cash flow, and Lyft’s timeline for sustained profitability under GAAP metrics.
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