Lyft (LYFT) AI Stock Analysis

• Market Cap: $6.43B
• Dividend Yield: N/A
• Average Volume (3M): 18.09M
• Price to Earnings (P/E): 72.3
• Beta (1Y): 1.67
• Revenue Growth: 19.94%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 397,910,900
• 10 Day Avg. Volume: 26,713,105
• 30 Day Avg. Volume: 18,085,220
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: -61.91
• 1Y Price Target: $16.93
• Price Target Upside: 7.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 28

• Rating: 68 Neutral
• Price Target: $17.00 ▲(7.46% Upside)

Lyft's overall stock score reflects strong earnings call results and positive corporate events, which are offset by challenges in valuation and financial performance. The bullish technical indicators support a positive outlook, but high P/E ratio and lack of dividend yield suggest caution. The company's strategic advancements, particularly in autonomous vehicles and partnerships, position it well for future growth.

Positive Factors

Financial Performance

Lyft's operating profit and EPS exceeded analyst estimates, indicating strong financial performance.

Market Expansion

The acquisition of FREENOW represents Lyft's foray into Europe, expanding its market reach.

Strategic Partnerships

Lyft announced a strategic partnership with Baidu to deploy autonomous vehicles across key European markets.

Negative Factors

Industry Competition

Lyft continues to face a powerful competitor and the burgeoning autonomous rideshare industry is ramping quickly.

Market Position

Shares remain a show-me story with sound execution required ahead, and category position and scale lag those of its peer Uber.

Uncertainty in AV Strategy

There is uncertainty regarding LYFT's strategic and financial capability to navigate the potential threat from AVs.

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 its ride-hailing services, which involve taking a commission from each ride booked through its platform. The company typically charges drivers a percentage of the fare, which varies based on factors such as ride type, distance, and surge pricing during peak demand times. In addition to ride-sharing, Lyft also earns revenue from its partnerships with public transportation systems and other mobility services, offering integrated transit solutions. The company has explored additional revenue streams, including bike and scooter rentals, as well as potential ventures in autonomous vehicle technology. Lyft's financial performance is influenced by user growth, driver supply, and market competition, as well as regulatory factors in different regions.

Lyft Financial Statement Overview

Summary

Lyft's financial performance is marked by positive revenue growth and improved profitability metrics. The company has shown progress in managing costs and enhancing free cash flow, although challenges remain in achieving robust operating profits. The balance sheet indicates moderate financial stability with manageable leverage, and cash flow improvements suggest operational efficiency and liquidity management.

Income Statement

Lyft's revenue has shown a positive growth trajectory, with a notable increase in revenue from prior years. The gross profit margin is decent at approximately 43.9% for the TTM. However, the net profit margin, while positive at 0.95%, reflects thin profitability and highlights ongoing challenges in achieving substantial profitability. The negative EBIT margin of -1.42% further indicates operational challenges, though EBITDA margin improvements suggest some progress in cost management.

Balance Sheet

The balance sheet shows a stable equity position with an equity ratio of about 14.8%, reflecting moderate financial stability. The debt-to-equity ratio has improved to 0.67, indicating manageable leverage levels. Return on Equity (ROE) has turned positive at 6.8%, signaling improvement in profitability and returns to shareholders, yet the overall equity level remains relatively low compared to total assets.

Cash Flow

Lyft's cash flow shows strong free cash flow growth, with a significant increase in free cash flow. The operating cash flow to net income ratio of 17.25 indicates efficient cash generation relative to earnings. The positive free cash flow to net income ratio of 16.18 suggests effective cash management, supporting strategic investments and debt management. Overall, cash flow metrics suggest an improving liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.11B	5.79B	4.40B	4.10B	3.21B	2.36B
Gross Profit	2.77B	2.45B	1.46B	1.66B	1.56B	917.16M
EBITDA	-91.79M	203.16M	-188.97M	-1.40B	-841.84M	-1.61B
Net Income	92.19M	22.78M	-340.32M	-1.58B	-1.01B	-1.75B
Balance Sheet
Total Assets	5.37B	5.44B	4.56B	4.56B	4.77B	4.68B
Cash, Cash Equivalents and Short-Term Investments	2.25B	1.98B	1.69B	1.80B	2.25B	2.25B
Total Debt	167.34M	1.17B	1.13B	1.03B	919.17M	959.33M
Total Liabilities	4.64B	4.67B	4.02B	4.17B	3.38B	3.00B
Stockholders Equity	732.68M	767.02M	541.52M	388.67M	1.39B	1.68B
Cash Flow
Free Cash Flow	992.97M	766.27M	-248.06M	-352.25M	-180.90M	-1.47B
Operating Cash Flow	1.05B	849.74M	-98.24M	-237.28M	-101.72M	-1.38B
Investing Cash Flow	295.44M	-517.98M	599.75M	186.04M	267.01M	740.43M
Financing Cash Flow	-788.26M	-155.87M	-122.08M	-87.50M	-72.47M	512.57M

Lyft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYFT, the sentiment is Positive. The current price of 15.82 is above the 20-day moving average (MA) of 14.28, above the 50-day MA of 14.94, and above the 200-day MA of 14.17, indicating a bullish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 92.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYFT.

Lyft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILL	74 Outperform	$4.17B	482.28	0.97%	―	14.52%	―
PYCR	74 Outperform	$4.09B	―	-1.66%	―	15.72%	74.59%
LYFT	68 Neutral	$6.43B	72.27	14.07%	―	19.94%	―
COMP	64 Neutral	$4.71B	―	-9.57%	―	21.23%	78.54%
Sector *	61 Neutral	$36.03B	6.77	-7.27%	2.00%	8.65%	-7.61%
ALIT	47 Neutral	$1.97B	―	-29.09%	3.28%	-19.48%	-398.43%
KC	46 Neutral	$3.93B	―	-33.09%	―	13.85%	3.47%

Lyft Corporate Events

Lyft Co-Founders Resign, Sean Aggarwal Becomes Chair

On August 14, 2025, Lyft announced the resignation of its co-founders, Logan Green and John Zimmer, from the Board of Directors, completing a two-year transition plan. They converted all Class B shares to Class A shares, establishing a one-share, one-vote standard, which enhances governance and reflects confidence in Lyft’s future. Sean Aggarwal was elected as the new Chair of the Board, maintaining board leadership and independence. These changes are expected to strengthen Lyft’s market position and governance structure, with the company poised for continued growth under CEO David Risher’s leadership.

The most recent analyst rating on (LYFT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Reports Record Q2 2025 Financial Results

On August 6, 2025, Lyft announced record financial results for Q2 2025, with significant increases in gross bookings, revenue, and net income compared to the previous year. The company highlighted its strategic partnerships with Baidu and United Airlines and its acquisition of Freenow, which are expected to drive further growth and strengthen its market position.

The most recent analyst rating on (LYFT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Approves New Employee Incentive Compensation Plan

On July 24, 2025, Lyft‘s Board of Directors approved an Employee Incentive Compensation Plan designed to motivate employees by offering incentive awards based on performance goals. This plan allows for flexibility in selecting participants and setting performance targets, aiming to enhance employee engagement and drive company performance.

The most recent analyst rating on (LYFT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Appoints Stephen Hope as Chief Accounting Officer

On July 1, 2025, Lyft announced the appointment of Stephen Hope as the new Chief Accounting Officer, effective July 7, 2025. Hope, who previously held significant roles at Autodesk, will take over from Erin Brewer, who remains the CFO. His compensation includes a base salary, bonus opportunities, and stock awards, reflecting Lyft’s strategic move to strengthen its financial leadership.

The most recent analyst rating on (LYFT) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Stockholders Meeting Approves Key Proposals

On June 5, 2025, Lyft, Inc. held its annual meeting of stockholders where four proposals were voted on. The stockholders elected three Class III directors to serve until the 2028 meeting, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s named executive officers. However, a stockholder proposal regarding an assessment of Lyft’s use of artificial intelligence was not approved.

The most recent analyst rating on (LYFT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.

Lyft Board Member Ariel Cohen Resigns Amid Changes

On May 22, 2025, Ariel Cohen resigned from Lyft‘s board of directors due to other professional commitments, not due to disagreements with the company. His departure is acknowledged with gratitude by Lyft’s CEO, who praised Cohen’s contributions and expertise in the travel sector. The board plans to reduce its size from ten to nine members.

The most recent analyst rating on (LYFT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.