Lyft (LYFT) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: N/A
• Average Volume (3M): 10.27M
• Price to Earnings (P/E): 52.3
• Beta (1Y): 1.49
• Revenue Growth: 14.90%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.11
• Shares Outstanding: 399,353,400
• 10 Day Avg. Volume: 9,337,056
• 30 Day Avg. Volume: 10,273,434
• PEG Ratio: -2.18
• Price to Book (P/B): 6.88
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 6.89
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 3.15
• Enterprise Value/Ebitda: 27.19
• 1Y Price Target: $24.06
• Price Target Upside: 27.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 29
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $7.41B

• Rating: 69 Neutral
• Price Target: $20.50 ▲(8.58% Upside)

Lyft's overall stock score is driven by strong earnings call results and positive technical indicators. Financial performance shows improvement, but valuation concerns due to a high P/E ratio and lack of dividend yield weigh on the score.

Positive Factors

Free cash flow generation

Sustained, large positive free cash flow provides durable financial flexibility: supports reinvestment in growth initiatives, funds partnerships and AV pilots without immediate equity raises, and reduces refinancing risk, improving long-term capital allocation optionality.

High gross profit margin

A 42% gross margin indicates Lyft captures healthy unit economics on rides after direct costs. Persistent gross margin strength supports operating leverage as volume grows, enabling sustainable investment in marketing, driver incentives, and tech while improving operating-profit potential.

Strategic partnerships and network expansion

Partnerships like United MileagePlus and AV alliances expand customer loyalty, diversify demand drivers, and accelerate technology access without full in‑house capex. These collaborations create long-term network effects and multiple revenue channels beyond core ride commissions.

Negative Factors

Low net profit margin

A ~2.4% net margin leaves limited buffer for cost shocks and constrains retained earnings for reinvestment. Over time this can hinder ability to fund strategic initiatives internally, making Lyft more sensitive to rising costs or revenue mix shifts that compress profitability.

Low equity ratio / reliance on financing

Even with improved debt metrics, a low equity ratio indicates continued dependence on external financing. That raises long-term funding risk if credit conditions tighten, increases interest/coverage pressure, and can limit strategic flexibility during downturns.

Uncertain AV economics and rising insurance costs

Unproven autonomous-vehicle economics and higher per-ride insurance are structural risks: AV partnerships may not be accretive and require ongoing subsidies or capital, while persistent insurance cost inflation can compress margins and reduce long-term returns on mobility investments.

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

Lyft's financial performance is on a positive trajectory with improvements in revenue growth, profitability, and cash flow generation. The company has reduced its leverage, enhancing financial stability. However, challenges remain in achieving higher net profit margins and maintaining a strong equity position.

Income Statement

Lyft has shown a positive trend in revenue growth with a TTM growth rate of 2.66%. The gross profit margin is strong at 42.61%, indicating efficient cost management. However, the net profit margin is relatively low at 2.40%, suggesting limited profitability. The EBIT and EBITDA margins have improved over time, reflecting better operational efficiency.

Balance Sheet

The debt-to-equity ratio has significantly improved to 0.31 in the TTM, indicating reduced leverage and financial risk. Return on equity has increased to 20.71%, showing enhanced profitability for shareholders. However, the equity ratio remains low, suggesting a higher reliance on debt financing.

Cash Flow

Lyft's free cash flow growth rate is positive at 3.52%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash management. The free cash flow to net income ratio is high at 95.64%, reflecting robust cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.27B	5.79B	4.40B	4.10B	3.21B	2.36B
Gross Profit	2.67B	2.45B	1.86B	1.66B	1.51B	917.16M
EBITDA	309.24M	203.16M	-188.97M	-1.40B	-859.94M	-1.61B
Net Income	150.69M	22.78M	-340.32M	-1.58B	-1.06B	-1.75B
Balance Sheet
Total Assets	5.94B	5.44B	4.56B	4.56B	4.77B	4.68B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.98B	1.69B	1.80B	2.25B	2.25B
Total Debt	1.27B	1.17B	1.04B	1.06B	975.43M	995.09M
Total Liabilities	5.37B	4.67B	4.02B	4.17B	3.43B	3.00B
Stockholders Equity	573.03M	767.02M	541.52M	388.67M	1.34B	1.68B
Cash Flow
Free Cash Flow	1.03B	766.27M	-248.06M	-352.25M	-180.90M	-1.47B
Operating Cash Flow	1.08B	849.74M	-98.24M	-237.28M	-101.72M	-1.38B
Investing Cash Flow	122.36M	-517.98M	599.75M	186.04M	267.01M	740.43M
Financing Cash Flow	-564.94M	-155.87M	-122.08M	-87.50M	-72.47M	512.57M

Lyft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 18.88 is below the 20-day moving average (MA) of 19.45, below the 50-day MA of 20.62, and above the 200-day MA of 17.32, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 17.71 is Positive, 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
CART	79 Outperform	$10.73B	21.86	15.33%	―	10.16%	18.29%
DASH	76 Outperform	$91.86B	106.60	10.11%	―	24.46%	―
KARO	76 Outperform	$1.40B	25.48	34.42%	2.66%	18.30%	22.19%
UBER	74 Outperform	$175.89B	10.83	77.55%	―	18.25%	277.10%
LYFT	69 Neutral	$7.56B	52.34	24.53%	―	14.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GRAB	61 Neutral	$18.92B	145.85	1.92%	―	20.22%	―

Lyft Corporate Events

Lyft Reports Record-Breaking Q3 2025 Financial Results

On November 5, 2025, Lyft announced its record-breaking financial results for the third quarter of 2025, highlighting a significant increase in gross bookings, revenue, and net income compared to the previous year. The company reported $4.8 billion in gross bookings and $1.7 billion in revenue, with a net income of $46.1 million. Lyft’s strategy includes partnerships with autonomous vehicle companies and the acquisition of a luxury chauffeuring company, positioning it for accelerated growth through the end of 2025 and into 2026. These developments suggest a strong operational performance and a positive outlook for stakeholders.

The most recent analyst rating on (LYFT) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Lyft stock, see the LYFT Stock Forecast page.