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Lyft shares slide 8% as Q2 earnings miss estimates

Published 06/08/2025, 21:10
© Reuters.
LYFT
-0.61%

SAN FRANCISCO - Lyft Inc. (NASDAQ:LYFT) shares fell 8% after the rideshare company reported second-quarter earnings that fell short of analyst expectations, despite posting record rides and gross bookings.

The company reported adjusted earnings per share of $0.10 for the second quarter, significantly below the analyst estimate of $0.26. Revenue came in at $1.59 billion, slightly missing the consensus estimate of $1.61 billion, though it represented an 11% increase year-over-year.

Lyft achieved record gross bookings of $4.5 billion in the quarter, up 12% from the same period last year. The company also reported record rides of 234.8 million, a 14% year-over-year increase, marking the ninth consecutive quarter of double-digit growth.

"Q2 was another quarter of strong execution with all-time record Rides, Gross Bookings, and cash flow generation," said CFO Erin Brewer. "These results showcase our commitment to operational excellence and customer obsession."

The company reported net income of $40.3 million compared to $5.0 million in the same quarter last year. Adjusted EBITDA rose 26% year-over-year to $129.4 million.

For the third quarter, Lyft expects gross bookings between $4.65 billion and $4.80 billion, representing 13% to 17% growth year-over-year. The company forecasts adjusted EBITDA of $125 million to $145 million.

The company highlighted several strategic developments, including its acquisition of Freenow, which closed on July 31, and new partnerships with United Airlines, Baidu (NASDAQ:BIDU), and BENTELER Mobility. Lyft also noted that dual-app driver preference for Lyft has increased to 29 percentage points, up from 6 percentage points a year ago.

Active riders grew 10% year-over-year to 26.1 million, reaching an all-time high. The company also repurchased 12.8 million shares for $200 million during the quarter as part of its share repurchase program.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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