Lyft (LYFT) AI Stock Analysis

• Market Cap: $5.46B
• Dividend Yield: N/A
• Average Volume (3M): 17.09M
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.65
• Revenue Growth: 14.90%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.59
• Shares Outstanding: 398,107,600
• 10 Day Avg. Volume: 24,611,755
• 30 Day Avg. Volume: 17,086,882
• PEG Ratio: <0.01
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 7.13
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 55.64
• 1Y Price Target: $19.76
• Price Target Upside: 41.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $18.00 ▲(29.03% Upside)

The score is driven primarily by improving financial performance—especially strong and growing free cash flow—supported by a positive earnings call with accelerating growth outlook and long-term targets intact. This is tempered by weak technicals (downtrend vs key moving averages and negative MACD) and a relatively high P/E with no dividend yield.

Positive Factors

Free Cash Flow Strength

Sustained, sizable free cash flow provides durable financial flexibility: it funds buybacks, strategic investments (AV, FreeNow integration), and debt reduction without relying on equity. Over 2-6 months, strong FCF underpins capital allocation and reduces financing risk during execution of long-range plans.

Marketplace Scale & Engagement

High and accelerating rider/ride growth alongside record driver hours reflect improving marketplace liquidity and network effects. Durable increases in supply and demand improve ETAs, reduce surge, and enhance retention, supporting sustainable unit economics and competitive positioning over the medium term.

Revenue Diversification (Ads)

Emerging advertising revenues create a higher-margin, recurring revenue stream that leverages the engaged user base without proportional driver costs. Over months, ad monetization and other non-ride services can meaningfully improve overall margin mix and reduce reliance on commission-based ride revenue.

Negative Factors

Operating Profitability Still Mixed

Despite top-line rebound and positive net income, underlying operating profits (EBIT) remain negative in the trailing period. This means core operating margin improvement is incomplete; sustained margin expansion is required to prove earnings durability and fund growth without depending on nonrecurring items.

Leverage & Capital Structure Risks

Although capitalization has improved, historical elevated debt-to-equity and limited cash cushion relative to obligations keep leverage as a structural risk. Persistent leverage constrains flexibility for AV investments, international scaling, and increases vulnerability to adverse demand or regulatory shocks over the medium term.

AV Execution / Supplier Constraints

Lyft's long-term cost thesis relies on autonomous vehicle adoption to lower per-mile costs ~20% by 2030. A constrained supplier base increases execution risk and could delay cost savings and fleet initiatives, making projected structural margin improvements and TAM expansion uncertain in the coming years.

Lyft Business Overview & Revenue Model

Company Description

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options. It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options. In addition, it offers access to autonomous vehicles; centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

How the Company Makes Money

Lyft generates revenue primarily through ride-hailing services, where it charges a commission on each fare paid by passengers. This commission typically ranges from 15% to 30% of the total fare, depending on the service type and market dynamics. Additionally, Lyft earns revenue from its bike and scooter rental services, where users pay for the duration of the rental. The company also engages in partnerships with various organizations and municipalities to provide transportation solutions, which can include incentivized rides or integrated services. Furthermore, Lyft is exploring additional revenue opportunities through the development of autonomous vehicles and potential collaborations in the freight and logistics sectors.

Lyft Financial Statement Overview

Summary

Fundamentals are improving: re-accelerating revenue, steady low-40% gross margins, and strong operating/free cash flow (FCF is a clear strength). Offsetting this, profitability quality is still in transition with EBIT still negative in TTM and leverage remains a watch item despite a stronger equity base.

Income Statement

LYFT shows a clear top-line rebound, with revenue up strongly in 2024 and accelerating further in TTM (Trailing-Twelve-Months). Gross margin has been steady in the low-40% range, indicating improving scale without major pricing pressure. Profitability has improved materially versus 2020–2023 losses, but underlying operating performance is still mixed: EBIT remains negative in TTM (Trailing-Twelve-Months) and net margin is thin, suggesting earnings quality and sustainability still need to be proven despite the swing to positive net income.

Balance Sheet

The balance sheet looks stronger versus prior years, highlighted by a much larger equity base in TTM (Trailing-Twelve-Months) and a return on equity that has turned positive. Debt levels appear manageable in absolute terms in TTM (Trailing-Twelve-Months), but leverage remains a key watch item given the elevated debt-to-equity ratio history and the fact that operating profits (EBIT) are not yet consistently positive. Overall, improving capitalization is a positive, but the leverage profile and profitability transition keep risk above average.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow are solidly positive in both 2024 and TTM (Trailing-Twelve-Months), with free cash flow growing meaningfully in the latest period. Free cash flow is also broadly aligned with reported earnings in TTM (Trailing-Twelve-Months), which supports earnings quality. The main drawback is that cash flow relative to the company’s debt load is not especially high, so sustained cash generation is important to maintain flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.32B	5.79B	4.40B	4.10B	3.21B
Gross Profit	2.62B	2.45B	1.86B	1.66B	1.51B
EBITDA	102.73M	203.16M	-188.97M	-1.40B	-859.94M
Net Income	2.84B	22.78M	-340.32M	-1.58B	-1.06B
Balance Sheet
Total Assets	9.03B	5.44B	4.56B	4.56B	4.77B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.98B	1.69B	1.80B	2.25B
Total Debt	1.28B	1.17B	1.04B	1.06B	975.43M
Total Liabilities	5.76B	4.67B	4.02B	4.17B	3.43B
Stockholders Equity	3.27B	767.02M	541.52M	388.67M	1.34B
Cash Flow
Free Cash Flow	1.12B	766.27M	-248.06M	-352.25M	-180.90M
Operating Cash Flow	1.17B	849.74M	-98.24M	-237.28M	-101.72M
Investing Cash Flow	406.74M	-517.98M	599.75M	186.04M	267.01M
Financing Cash Flow	-685.53M	-155.87M	-122.08M	-87.50M	-72.47M

Lyft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYFT, the sentiment is Negative. The current price of 13.95 is below the 20-day moving average (MA) of 15.82, below the 50-day MA of 18.00, and below the 200-day MA of 17.88, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYFT.

Lyft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARO	79 Outperform	$1.44B	25.35	32.71%	2.66%	18.30%	22.19%
UBER	74 Outperform	$149.77B	15.45	41.37%	―	18.25%	277.10%
CART	72 Outperform	$9.53B	22.28	―	―	10.16%	18.29%
DASH	66 Neutral	$74.73B	82.89	10.48%	―	24.46%	―
LYFT	64 Neutral	$5.46B	1.96	140.78%	―	14.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GRAB	60 Neutral	$18.18B	67.38	4.07%	―	20.22%	―

Lyft Corporate Events

Lyft Reports Record 2025 Results, Signals Transformational 2026

On February 10, 2026, Lyft reported record financial results for the fourth quarter and full year 2025, highlighted by 15% growth in annual gross bookings to $18.5 billion, a jump in revenue to $6.3 billion, and a sharp rise in net income to $2.8 billion, driven in part by a $2.9 billion tax valuation allowance release. The company delivered all-time-high free cash flow of $1.12 billion, double-digit ride and active rider growth, and launched Lyft Teen to tap the large U.S. teen transportation market, while its board authorized an additional $1 billion share repurchase program, underscoring confidence in its financial trajectory and its ongoing strategic shift toward a broader, more profitable mobility platform.

Lyft also posted strong Q4 2025 metrics, with gross bookings up 19% year over year to $5.1 billion and adjusted EBITDA rising 37% to $154.1 million, despite legal, tax and regulatory items weighing on reported revenue. Management framed 2025 as a pivotal year in the company’s turnaround and signaled that 2026 will mark a transformational phase centered on autonomous vehicle deployments in the U.S. and overseas, a move that could further reshape its cost structure and competitive position in the ridesharing industry.

The most recent analyst rating on (LYFT) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Adds Transportation Safety Expert Deborah Hersman to Board

On January 25, 2026, Lyft appointed transportation safety veteran Deborah Hersman to its Board of Directors as a Class I director, with her term scheduled to run until the company’s 2026 annual meeting of stockholders, and also named her to the Nominating and Corporate Governance Committee. Hersman brings extensive safety and regulatory credentials from her prior roles as chair of the National Transportation Safety Board, president and CEO of the National Safety Council, chief safety officer at autonomous driving firm Waymo, and director positions at utility and lidar technology companies, bolstering Lyft’s governance and safety oversight as the company navigates evolving regulation and the long-term transition toward autonomous and technology-driven mobility services; she will receive standard non-employee director compensation and enter into Lyft’s customary indemnification arrangement.

The most recent analyst rating on (LYFT) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.