Lyft Q1 2025 slides: Record bookings and rides drive continued profitability

Lyft Inc (NASDAQ:LYFT) reported record first-quarter performance across key metrics while maintaining profitability, according to its Q1 2025 earnings presentation released on May 8. The rideshare company’s stock jumped 7.31% in after-hours trading following the announcement.

Quarterly Performance Highlights

Lyft achieved record Q1 results across its core operational metrics, demonstrating continued momentum in its business. Gross bookings reached $4.2 billion, up 13% year-over-year, while rides increased 16% to 218.4 million. The company’s active rider base grew 11% to 24.2 million users.

As shown in the following chart of quarterly performance highlights:

These strong operational results translated into solid financial performance. Revenue for Q1 2025 came in at $1.45 billion, while the company reported a net income of $2.6 million, marking continued profitability after turning profitable in fiscal year 2024.

Adjusted EBITDA reached $106.5 million, representing a margin of 2.6% of gross bookings - a Q1 record for the company. This margin has remained stable at 2.6% for the past four quarters, suggesting Lyft has found a sustainable operational efficiency level.

As illustrated in the following chart of quarterly adjusted EBITDA performance:

Financial Analysis

Lyft’s financial position continues to strengthen, with free cash flow for the trailing twelve months reaching $920 million in Q1 2025, a dramatic improvement from negative free cash flow just two years ago.

The company’s quarterly gross bookings show consistent growth, with Q1 2025 representing the ninth consecutive quarter of year-over-year increases:

Lyft maintained a strong balance sheet with $985.5 million in cash and cash equivalents and $1,168.5 million in short-term investments as of Q1 2025. Total (EPA:TTEF) stockholders’ equity increased to $838.1 million, up from $491.3 million a year earlier.

In a sign of management’s confidence in the company’s financial strength, Lyft announced an increase in its share repurchase program authorization to $750 million, with plans to accelerate buybacks to deploy $500 million within the next twelve months, including $200 million in the next three months.

Strategic Initiatives

Lyft highlighted several strategic initiatives aimed at expanding its market opportunity and enhancing its competitive position. The company emphasized its partnership with FREENOW to expand its total addressable market, noting that less than 1% of personal vehicle rides in both companies’ markets are currently booked through their platforms.

As shown in the following visualization of Lyft and FREENOW’s total addressable market:

The company is also positioning itself strategically within the autonomous vehicle (AV) value chain, focusing on the mobility platform, marketplace, and rider experience components while partnering with technology providers and vehicle manufacturers.

Lyft introduced two new product initiatives during the quarter. The first is an AI-powered "Earnings Assistant" for drivers, designed to help them maximize their time on the road with personalized driving plans and real-time guidance. This tool aims to strengthen Lyft’s preference among dual-app drivers who may also work with competitors like Uber (NYSE:UBER).

The second initiative is "Lyft Silver," a service specifically designed for older adults. The company noted that by 2030, over 70 million Americans are expected to be 65 years or older, representing a significant untapped demographic. The service features live human support, simplified design, and built-in peace of mind features.

Forward Guidance

For Q2 2025, Lyft provided optimistic guidance, projecting gross bookings between $4.41 billion and $4.57 billion, representing year-over-year growth of 10% to 14%. The company expects adjusted EBITDA of $115 million to $130 million, with an adjusted EBITDA margin of approximately 2.6% to 2.8% of gross bookings.

As detailed in the following guidance slide:

Conclusion

Lyft’s Q1 2025 results demonstrate the company’s continued operational momentum and financial discipline. Record performance across key metrics, maintained profitability, and strong cash flow generation have enabled the company to accelerate its share repurchase program while investing in strategic initiatives for future growth.

The focus on expanding its addressable market through partnerships, positioning within the autonomous vehicle ecosystem, and targeting new demographics suggests Lyft is looking beyond its core business for long-term growth opportunities. Meanwhile, the company’s consistent operational execution provides a solid foundation for these strategic initiatives.

Full presentation:

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