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Lyft, Inc. (LYFT)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered record activity with Rides up 16% YoY to 218.4M, Active Riders up 11% to 24.2M, revenue of $1.45B (+14% YoY), Adjusted EBITDA of $106.5M (margin 2.6%), and GAAP net income of $2.6M .
  • Versus S&P Global consensus, revenue of $1.45B modestly missed $1.46B*, and Primary EPS of $0.109 (normalized) missed $0.204*; prior Q3/Q4 both beat on revenue and EPS* [GetEstimates].
  • Q2 2025 guidance: mid-teens rides growth YoY, Gross Bookings $4.41–$4.57B (+10–14% YoY), Adjusted EBITDA $115–$130M (margin 2.6–2.8%) .
  • Capital return accelerated: share repurchase authorization increased to $750M with $500M targeted within 12 months (including $200M in next 3 months), backed by trailing 12-month operating cash flow of $980.8M .

What Went Well and What Went Wrong

What Went Well

  • “Strongest start to the year ever” with record Q1 Gross Bookings, Rides, and Active Riders; 16th consecutive quarter of double‑digit Gross Bookings growth .
  • Cash generation nearly $1B TTM ($980.8M from operations; $919.9M FCF), enabling the buyback increase to $750M .
  • Strategic advances: Lyft Silver launched to expand demographics; Earnings Assistant (AI) pilot for drivers; planned FREENOW acquisition to enter Europe and nearly double TAM .
    • “Dual‑app drivers reported a 23 percentage point preference for Lyft” and “rides reached the highest weekly levels in our history” (late March) .

What Went Wrong

  • Pricing remained below Q4; average prices in Q1 were still lower QoQ (modestly up YoY), contributing to lower gross bookings per ride due to mix effects (growth in Canada and underpenetrated U.S. markets) .
  • Delta partnership ended April 7; management expects over time ~1% impact to Rides and ~2 pts to Gross Bookings, a modest headwind embedded in guide .
  • Versus consensus, Q1 revenue and Primary EPS missed, despite strong execution on operations and cash flow* [GetEstimates].

Financial Results

Trend vs prior two quarters (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Billions)$1.523 $1.550 $1.450
Net Income ($USD Millions)$(12.4) $61.7 $2.6
Diluted EPS ($USD)$(0.03) $0.06 $0.01
Adjusted EBITDA ($USD Millions)$107.3 $112.8 $106.5
Adjusted EBITDA Margin %2.6% 2.6% 2.6%
Net Income Margin %(0.3)% 1.4% 0.1%

KPIs

KPIQ3 2024Q4 2024Q1 2025
Active Riders (Millions)24.4 24.7 24.2
Rides (Millions)216.7 218.5 218.4
Gross Bookings ($USD Billions)$4.108 $4.279 $4.162
Net Cash from Ops ($USD Millions)$264.0 $153.4 $287.2
Free Cash Flow ($USD Millions)$242.8 $140.0 $280.7

YoY Comparison

MetricQ1 2024Q1 2025
Revenue ($USD Billions)$1.277 $1.450
Net Income ($USD Millions)$(31.5) $2.6
Diluted EPS ($USD)$(0.08) $0.01
Adjusted EBITDA ($USD Millions)$59.4 $106.5
Adjusted EBITDA Margin %1.6% 2.6%
Rides (Millions)187.7 218.4
Active Riders (Millions)21.9 24.2
Gross Bookings ($USD Billions)$3.693 $4.162
Free Cash Flow ($USD Millions)$127.1 $280.7

Actual vs S&P Global Consensus (normalized EPS; oldest → newest)

MetricQ3 2024 Estimate*Q3 2024 Actual*Q4 2024 Estimate*Q4 2024 Actual*Q1 2025 Estimate*Q1 2025 Actual*
Revenue ($USD Billions)$1.441*$1.5227*$1.542*$1.5503*$1.464*$1.4502*
Primary EPS (Normalized, $USD)$0.201*$0.287*$0.230*$0.270*$0.204*$0.109*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Rides Growth (YoY)Q2 2025N/AMid-teens New
Gross Bookings ($USD Billions)Q2 2025N/A$4.41–$4.57 New
Adjusted EBITDA ($USD Millions)Q2 2025N/A$115–$130; margin 2.6–2.8% New
Gross Bookings ($USD Billions)Q1 2025$4.05–$4.20 Actual: $4.162 In‑line (near high end)
Adjusted EBITDA ($USD Millions)Q1 2025$90–$95 Actual: $106.5 Beat prior guide

Note: Company did not provide GAAP reconciliations for forward-looking non‑GAAP guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4)Current Period (Q1 2025)Trend
Pricing & AffordabilityIndustry initiatives; operational excellence driving service levels Avg prices lower vs Q4; modestly up YoY; focus on competitive/reliable pricing; Price Lock adoption and ~75% retention Stable pricing strategy; reliability features gaining traction
AV PartnershipsMobileye/May Mobility/Nexar partnerships announced; 2025 Atlanta AV matching May Mobility launch targeted for summer (Atlanta); Texas next year with Mobileye; emphasis on fleet financing (Marubeni) and FlexDrive scale Building capability; market-expanding supply over time
International ExpansionCanada growth; service level leadership Canada rides +55% YoY; Quebec driver onboarding; definitive agreement to acquire FREENOW in Europe (H2 close) Expanding footprint; TAM nearly doubles with FREENOW
Taxi & High‑margin ModesNoted driver earnings improvements Taxi rollout (St. Louis) as supply diversification; leverage FREENOW taxi expertise Diversifying supply; early U.S. taxi integration
Insurance ProgramNo specific detailContinued program momentum; 6‑month cycles; no new updates; reflected in guide Ongoing execution; embedded in outlook
Media/AdsGoals outlined at Investor Day On track for $100M run‑rate; new Wait & Save vertical video ad unit; strong brand metrics Scaling formats; strengthening monetization
Commute Use CaseRides growth broad-based Commute now largest use case; Price Lock driving consistency Structural demand driver

Management Commentary

  • CEO: “Q1 2025 was our strongest Q1 ever… Lyft’s 16th consecutive quarter of double-digit year‑on‑year Gross Bookings growth… We approached nearly $1 billion in cash generation over the last 12 months… increased our share repurchase program to $750 million” .
  • CFO: “16% Rides growth, strong profit expansion, and nearly $1 billion in cash from operations… enables us to increase the authorization… while maintaining ability to invest in growth initiatives” .
  • Strategy: Expanding demographics via Lyft Silver; entering Europe with planned FREENOW acquisition to broaden TAM and capabilities .

Q&A Highlights

  • Pricing dynamics: Average prices remained lower vs Q4; strategy is to be competitive and reliable; focus on reducing surge/prime time; Price Lock membership up 21% vs Q4 and ~75% retention .
  • Insurance: Program continues with 6‑month renewal cycle; no specific changes; embedded in Q2 guide .
  • AV supply/value chain: Near‑term pilots (Atlanta summer; Texas next year) with financing partners and FlexDrive fleet management; long‑term market expansion expected, but not near‑term pricing driver .
  • Taxi rollout: U.S. expansion beyond St. Louis considered strategically important for supply diversity; FREENOW expertise will aid execution .
  • Delta exit impact: Over time ~1% to Rides and ~2 pts to Gross Bookings; multiple factors (offer competitiveness, service levels) will influence curve .
  • Demand tone: No signs of weakening; strongest ride week in last week of March; broad use cases (including healthcare) show resilience .

Estimates Context

  • Q1 2025 vs consensus: Revenue $1.450B vs $1.464B*, Primary EPS $0.109 vs $0.204*, both modest misses; Q3/Q4 2024 were beats on both metrics* [GetEstimates].
  • Implications: Near‑term estimate revisions may tilt lower on normalized EPS given pricing mix and Delta headwind; however, guidance for Q2 implies resilient rides growth and steady EBITDA margins supported by strong service levels .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Operational momentum: Record activity and 16th straight quarter of double‑digit Gross Bookings growth point to durable demand across modes and geographies .
  • Cash return and balance sheet: TTM operating cash flow ~$981M and FCF ~$920M support the $750M repurchase authorization, with $200M targeted within 3 months—an immediate catalyst .
  • Q2 setup: Guide calls for mid‑teens rides growth and $115–$130M Adjusted EBITDA at ~2.6–2.8% margin, despite pricing normalization and Delta exit .
  • Mix evolution: Faster growth in Canada and underpenetrated U.S. markets reduces gross bookings per ride but expands user base and frequency—watch margin discipline .
  • Product moat: Reliability features (Price Lock), Lyft Silver, AI Earnings Assistant, and media monetization are enhancing retention and engagement .
  • Strategic expansion: FREENOW acquisition positions Lyft to nearly double TAM, add taxi-first capabilities, and diversify revenue streams internationally (H2 2025 close expected) .
  • AV optionality: Multi‑partner approach and fleet management scale position Lyft to monetize future AV supply; medium‑term narrative driver rather than near‑term EPS lever .