Lyft (LYFT) AI Stock Analysis

• Market Cap: $6.55B
• Dividend Yield: N/A
• Average Volume (3M): 19.37M
• Price to Earnings (P/E): 113.7
• Beta (1Y): 1.64
• Revenue Growth: 27.32%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 412,105,260
• 10 Day Avg. Volume: 13,672,385
• 30 Day Avg. Volume: 19,370,376
• 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: 1.51
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: -71.11
• 1Y Price Target: $17.13
• Price Target Upside: 15.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 71 Outperform
• Price Target: $18.50 ▲(25.17%Upside)

Lyft's overall stock score reflects a company in transition with strong revenue growth, improved cash flow, and strategic initiatives that enhance its market position. However, high valuation metrics, ongoing profitability challenges, and mixed technical indicators temper the outlook. Positive earnings call sentiment and corporate events provide some optimism, but the stock's high P/E ratio and leverage issues suggest caution. Continued focus on operational efficiency and strategic growth will be crucial for long-term success.

Positive Factors

Business Performance

Lyft is experiencing significant growth through technology and driver-centric innovations, leading to increased ride volume and positive economic profit, which enhances shareholder value.

International Expansion

The acquisition of the European taxi-hailing app FREENOW allows Lyft to expand its presence to nine European countries, doubling its addressable market.

New Product Launches

New product launches like Women+ Connect, Price Lock, and Lyft Silver are driving new riders and increased ride frequency, contributing to growth.

Negative Factors

Competition

Lyft faces significant competition as Waymo expands its services and Tesla launches its autonomous vehicle network, potentially impacting Lyft's market share.

Financial Performance

Lyft's adjusted EBITDA margin of 2.6% is significantly lower than Uber's 15.4%, indicating a competitive disadvantage in profitability.

Market Perception

Persistent market skepticism about Lyft's long-term competitiveness is reflected in the stock trading at a significant discount compared to Uber.

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
	EBIT
-84.81M	-118.91M	-475.60M	-1.46B	-1.08B	-1.81B
	EBITDA
-158.28M	203.16M	-188.97M	-1.40B	-841.84M	-1.61B
	Net Income Common Stockholders
56.89M	22.78M	-340.32M	-1.58B	-1.01B	-1.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.42B	1.98B	1.69B	1.80B	2.25B	2.25B
	Total Assets
5.67B	5.44B	4.56B	4.56B	4.77B	4.68B
	Total Debt
563.43M	1.17B	1.13B	1.03B	919.17M	959.33M
	Net Debt
-683.47M	412.99M	569.70M	744.28M	461.85M	639.60M
	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: Neutral
• Last Price: 14.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 14.78 is below the 20-day moving average (MA) of 15.75, above the 50-day MA of 13.81, and above the 200-day MA of 13.67, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 45.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LYFT.

Lyft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYFT	71 Outperform	$6.55B	113.70	8.56%	―	27.32%	―
BILL	68 Neutral	$4.52B	482.28	0.97%	―	14.52%	―
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
ALIT	59 Neutral	$2.93B	―	-0.82%	3.00%	-26.04%	85.84%
KC	51 Neutral	$3.64B	―	-33.09%	―	13.85%	3.47%
COMP	50 Neutral	$3.46B	―	-14.96%	―	19.05%	78.91%

Lyft Corporate Events

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.