Lyft (LYFT) AI Stock Analysis

• Market Cap: $6.77B
• Dividend Yield: N/A
• Average Volume (3M): 21.22M
• Price to Earnings (P/E): 76.1
• Beta (1Y): 1.61
• Revenue Growth: 19.94%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 397,910,900
• 10 Day Avg. Volume: 21,219,814
• 30 Day Avg. Volume: 21,217,297
• 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: 0.84
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 2.23
• Enterprise Value/Ebitda: 21.37
• 1Y Price Target: $16.49
• Price Target Upside: -1.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 27

• Rating: 68 Neutral
• Price Target: $17.00 ▲(2.04% Upside)

Lyft's overall stock score reflects strong earnings call performance and positive technical indicators, offset by high valuation concerns and ongoing profitability challenges. The company's strategic partnerships and expansion into autonomous vehicles are promising, but regulatory hurdles and valuation risks remain significant.

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

Competitive Pressure

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 Scaling

There remains a high degree of uncertainty on the ability to scale margins in the US as the #2 operator.

Lyft Business Overview & Revenue Model

Company Description

Lyft, Inc. is a leading transportation network company based in San Francisco, California. Founded in 2012, Lyft operates in the ride-hailing sector, offering a platform that connects passengers with drivers through a mobile app. The company primarily provides ride-sharing services, including standard rides, shared rides, and premium options, as well as other transportation services like bike and scooter rentals. Lyft aims to be a comprehensive mobility solution, focusing on reducing reliance on personal vehicles and enhancing urban transportation efficiency.

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 shows positive revenue growth and cash flow generation, with improved profitability metrics. However, challenges remain in achieving consistent operational profitability and maintaining a strong equity base. The company has made significant strides in reducing leverage, enhancing financial stability.

Income Statement

Lyft has shown a positive trend in revenue growth with a TTM growth rate of 2.56%, indicating recovery and expansion. Gross profit margins have improved to 45.3% in TTM, reflecting better cost management. However, the net profit margin remains low at 1.51%, and EBIT and EBITDA margins are still negative, suggesting ongoing challenges in achieving operational profitability.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.23 in TTM, indicating reduced leverage and better financial stability. Return on equity has increased to 12.32%, showing improved profitability. However, the equity ratio remains low, suggesting potential risks in asset financing.

Cash Flow

Lyft's free cash flow has grown by 7.94% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.27, showing efficient cash conversion. The free cash flow to net income ratio is high at 0.95, reflecting robust cash flow relative to earnings.

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	2.55B	2.45B	1.86B	1.66B	1.51B	917.16M
EBITDA	265.96M	203.16M	-188.97M	-1.40B	-859.94M	-1.61B
Net Income	92.19M	22.78M	-340.32M	-1.58B	-1.06B	-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: 16.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16.66 is above the 20-day moving average (MA) of 15.77, above the 50-day MA of 15.26, and above the 200-day MA of 14.23, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.53 is Neutral, 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
KARO	82 Outperform	$1.64B	30.94	29.66%	2.36%	14.21%	23.74%
LYFT	68 Neutral	$6.77B	76.11	14.07%	―	19.94%	―
ALKT	67 Neutral	$2.63B	―	-11.47%	―	29.63%	29.87%
SPT	62 Neutral	$891.66M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
DSP	59 Neutral	$648.40M	306.55	5.20%	―	30.92%	―
ONTF	56 Neutral	$231.84M	―	-22.60%	―	-6.88%	15.83%

Lyft Corporate Events

Lyft Announces $450M Convertible Senior Notes Offering

On September 2, 2025, Lyft announced a private offering of $450 million in Convertible Senior Notes due 2030, with an additional $50 million option exercised by initial purchasers on September 3, 2025. The proceeds, totaling approximately $487.7 million, are intended for capped call transactions, repurchasing Class A common stock, and general corporate purposes. The notes, issued under an Indenture with U.S. Bank Trust Company, are senior unsecured obligations, convertible under specific conditions, and expected to impact Lyft’s financial strategy by potentially reducing stock dilution and supporting future acquisitions.

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.

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.

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.

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.

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.