Lyft (LYFT) AI Stock Analysis

• Market Cap: $6.79B
• Dividend Yield: N/A
• Average Volume (3M): 13.53M
• Price to Earnings (P/E): 118.9
• Beta (1Y): 1.73
• Revenue Growth: 27.32%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 412,105,260
• 10 Day Avg. Volume: 15,240,048
• 30 Day Avg. Volume: 13,528,380
• PEG Ratio: -0.05
• Price to Book (P/B): 10.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.10
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: -71.11
• 1Y Price Target: $17.21
• Price Target Upside: 6.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 71 Outperform
• Price Target: $16.50 ▲(2.17%Upside)

Lyft's strong earnings call performance and financial improvements contribute significantly to the score. However, high valuation metrics and mixed technical signals temper the overall outlook. The company's strategic expansions and innovations provide a positive long-term growth trajectory.

Positive Factors

Analyst Recommendation

The analyst's recommendation for the stock has been upgraded from Hold to Buy.

Market Expansion

The acquisition of FREENOW is poised to double Lyft’s addressable market by expanding its presence to nine European countries.

Profitability

Lyft has made significant strides in profitability, posting a net profit of USD2.6mn, driven by increased ride volumes and cost control measures.

Negative Factors

Competitive Pressure

Lyft’s adjusted EBITDA margin of 2.6% remains significantly lower than Uber’s 15.4% margin in its Mobility segment, highlighting the ongoing competitive pressure within the rideshare market.

External Challenges

There are still some significant near-term external hurdles for Lyft to manage, including Waymo’s expansion and Tesla’s launch of its AV network, which could drive some rideshare stock overhang.

Geographic Disadvantage

Lyft remains structurally disadvantaged compared to Uber due to its limited geographic presence and narrower service offering.

Lyft Business Overview & Revenue Model

Company Description

Lyft, Inc. is a prominent American transportation network company primarily operating within the ride-hailing sector. Founded in 2012 and headquartered in San Francisco, California, Lyft provides a platform that connects passengers in need of rides with drivers who offer transportation services using their personal vehicles. The company offers a variety of ride options, including shared rides, luxury vehicles, and electric scooters, catering to diverse customer needs. Lyft is committed to enhancing urban transportation by providing reliable, affordable, and accessible mobility solutions, while also focusing on sustainability and reducing carbon emissions.

How the Company Makes Money

Lyft generates revenue primarily through its ride-hailing services by taking a percentage of the fare paid by passengers for each ride booked through its platform. This commission-based model forms the core of Lyft's revenue stream. Additionally, Lyft offers subscription plans such as Lyft Pink, which provides riders with benefits like discounts on rides and priority airport pickups for a monthly fee. The company also earns money from renting electric scooters and bicycles in select cities, further complementing its urban transportation offerings. Partnerships with businesses and public transit agencies, as well as collaborations with autonomous vehicle technology companies, also contribute to its revenue by expanding service integration and future-proofing its business model. Lyft's focus on improving operational efficiency and expanding its service offerings plays a crucial role in driving its financial performance.

Lyft Financial Statement Overview

Summary

Overall, Lyft displays positive revenue growth and improved profitability metrics. While the company has made strides in managing costs and improving free cash flow, challenges remain in achieving robust operating profits. The balance sheet indicates a relatively stable financial position with manageable leverage, but the equity base is still modest. Cash flow improvements are a positive sign of operational efficiency and liquidity management, supporting future investment and growth opportunities.

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	5.96B	5.79B	4.40B	4.10B	3.21B	2.36B
Gross Profit	2.62B	2.45B	1.46B	1.66B	1.56B	917.16M
EBITDA	-158.28M	203.16M	-188.97M	-1.40B	-841.84M	-1.61B
Net Income	56.89M	22.78M	-340.32M	-1.58B	-1.01B	-1.75B
Balance Sheet
Total Assets	5.67B	5.44B	4.56B	4.56B	4.77B	4.68B
Cash, Cash Equivalents and Short-Term Investments	2.42B	1.98B	1.69B	1.80B	2.25B	2.25B
Total Debt	563.43M	1.17B	1.13B	1.03B	919.17M	959.33M
Total Liabilities	4.83B	4.67B	4.02B	4.17B	3.38B	3.00B
Stockholders Equity	838.12M	767.02M	541.52M	388.67M	1.39B	1.68B
Cash Flow
Free Cash Flow	919.93M	766.27M	-248.06M	-352.25M	-180.90M	-1.47B
Operating Cash Flow	980.79M	849.74M	-98.24M	-237.28M	-101.72M	-1.38B
Investing Cash Flow	-210.23M	-517.98M	599.75M	186.04M	267.01M	740.43M
Financing Cash Flow	-176.19M	-155.87M	-122.08M	-87.50M	-72.47M	512.57M

Lyft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.15
• 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 16.15 is above the 20-day moving average (MA) of 15.45, above the 50-day MA of 14.99, and above the 200-day MA of 13.93, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.28 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 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
LYFT	71 Outperform	$6.79B	118.92	8.56%	―	27.32%	―
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
BILL	63 Neutral	$4.97B	482.28	0.97%	―	14.52%	―
ALIT	61 Neutral	$3.22B	―	-0.82%	2.67%	-26.04%	85.84%
KC	53 Neutral	$3.42B	―	-33.09%	―	13.85%	3.47%
COMP	53 Neutral	$3.41B	―	-14.96%	―	19.05%	78.91%

Lyft Corporate Events

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.

Lyft Expands Share Repurchase Program by $250 Million

On May 8, 2025, Lyft announced a significant increase in its share repurchase program, authorizing an additional $250 million, bringing the total to $750 million. This move follows the company’s strong financial performance in Q1 2025, marked by record gross bookings and active rider growth, as well as nearly $1 billion in cash flow generation over the past year. Lyft’s strategic initiatives, including expansion into new demographics and regions, underscore its commitment to sustained growth and market leadership.

Lyft Announces Acquisition of FREENOW for €175 Million

On April 16, 2025, Lyft announced its acquisition of FREENOW, a European multi-mobility app, for €175 million. This strategic move marks Lyft’s first major expansion outside North America, significantly increasing its market reach and diversifying its revenue streams. The acquisition is expected to close in the second half of 2025, subject to regulatory approvals. By integrating FREENOW’s European taxi expertise with Lyft’s marketplace capabilities, the combined entity aims to enhance service levels and expand opportunities for drivers and riders across Europe and North America.