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Lyft (LYFT)
NASDAQ:LYFT

Lyft (LYFT) AI Stock Analysis

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LY

Lyft

(NASDAQ:LYFT)

Rating:71Outperform
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 (LYFT) vs. SPDR S&P 500 ETF (SPY)

Lyft Business Overview & Revenue Model

Company DescriptionLyft, 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 MoneyLyft 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 Key Performance Indicators (KPIs)

Any
Any
Active Riders
Active Riders
Monitors the number of users taking rides, indicating market penetration, user engagement, and overall demand for Lyft's services.
Chart InsightsLyft's active riders have shown a strong recovery post-pandemic, reaching record levels in 2024 and continuing into 2025. The company's strategic expansion into Europe and new demographics, along with innovative offerings like Lyft Silver and Price Lock, are driving this growth. Despite minor pricing challenges and the end of the Delta partnership, Lyft's robust financial performance and increased share repurchase program underscore its confidence in sustained growth and market positioning.
Data provided by:Main Street Data

Lyft Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 24.23%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance for Lyft in Q1 2025, highlighting record financial results, expansion efforts, and innovative products. Despite some challenges with pricing and the impact of ending the Delta partnership, the positive aspects significantly outweigh the negatives.
Q1-2025 Updates
Positive Updates
Strongest Q1 Ever
Lyft reported its strongest first quarter ever with year-on-year growth across regions, modes, and use cases, resulting in a record Q1 for active riders, rides, and driver hours.
Financial Achievements
Q1 records were set in gross bookings, adjusted EBITDA, and free cash flow. Lyft delivered its 16th consecutive quarter of double-digit year-on-year growth.
Cash Generation and Share Repurchase
Lyft approached nearly $1 billion in cash generation over the last 12 months and increased its share repurchase program to $750 million.
International Expansion
Lyft expanded into Europe with the REENOW acquisition and reported great growth in Canada, with rides growing 55% in Q1.
Innovative Offerings
The introduction of Lyft Silver and Price Lock features were highlighted as innovations for expanding the customer base.
Negative Updates
Pricing Challenges
Average prices in Q1 were lower than in the fourth quarter, although they were modestly up year-over-year. Pricing strategy remains focused on being competitive and reliable.
Impact of Delta Partnership Ending
The ending of the Delta partnership on April 7 is expected to have a 1% impact on rides and a 2% impact on gross bookings over time.
Company Guidance
During the Lyft First Quarter 2025 earnings call, the company provided optimistic guidance and highlighted several key metrics demonstrating its robust performance. Lyft achieved its strongest Q1 ever, with record figures for active riders, rides, and driver hours. Financially, the company set new quarterly records in gross bookings, adjusted EBITDA, and free cash flow, marking the 16th consecutive quarter of double-digit year-on-year gross bookings growth. Lyft reported nearly $1 billion in cash generation over the past 12 months, enabling it to increase its share repurchase program to $750 million while maintaining investments in growth initiatives. The company's expansion into new demographics through Lyft Silver and into Europe with the acquisition of FREENOW positions it for sustained growth. Additionally, the Price Lock membership program saw substantial growth, with a 21% increase compared to Q4 and retention rates exceeding 70%, indicating strong product-market fit.

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
68
Positive
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
72
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.96B5.79B4.40B4.10B3.21B2.36B
Gross Profit2.62B2.45B1.46B1.66B1.56B917.16M
EBITDA-158.28M203.16M-188.97M-1.40B-841.84M-1.61B
Net Income56.89M22.78M-340.32M-1.58B-1.01B-1.75B
Balance Sheet
Total Assets5.67B5.44B4.56B4.56B4.77B4.68B
Cash, Cash Equivalents and Short-Term Investments2.42B1.98B1.69B1.80B2.25B2.25B
Total Debt563.43M1.17B1.13B1.03B919.17M959.33M
Total Liabilities4.83B4.67B4.02B4.17B3.38B3.00B
Stockholders Equity838.12M767.02M541.52M388.67M1.39B1.68B
Cash Flow
Free Cash Flow919.93M766.27M-248.06M-352.25M-180.90M-1.47B
Operating Cash Flow980.79M849.74M-98.24M-237.28M-101.72M-1.38B
Investing Cash Flow-210.23M-517.98M599.75M186.04M267.01M740.43M
Financing Cash Flow-176.19M-155.87M-122.08M-87.50M-72.47M512.57M

Lyft Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.15
Price Trends
50DMA
14.99
Positive
100DMA
13.56
Positive
200DMA
13.93
Positive
Market Momentum
MACD
0.25
Negative
RSI
59.28
Neutral
STOCH
80.19
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 Risk Analysis

Lyft disclosed 68 risk factors in its most recent earnings report. Lyft reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Lyft Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$6.79B118.928.56%27.32%
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
63
Neutral
$4.97B482.280.97%14.52%
61
Neutral
$3.22B-0.82%2.67%-26.04%85.84%
KCKC
53
Neutral
$3.42B-33.09%13.85%3.47%
53
Neutral
$3.41B-14.96%19.05%78.91%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LYFT
Lyft
16.15
2.67
19.81%
BILL
Bill.com Holdings
48.21
-3.47
-6.71%
KC
Kingsoft Cloud Holdings
12.02
9.47
371.37%
ALIT
Alight
5.98
-0.96
-13.83%
COMP
Compass
6.42
2.79
76.86%

Lyft Corporate Events

Executive/Board Changes
Lyft Appoints Stephen Hope as Chief Accounting Officer
Neutral
Jul 2, 2025

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.

Executive/Board ChangesShareholder Meetings
Lyft Stockholders Meeting Approves Key Proposals
Neutral
Jun 6, 2025

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.

Executive/Board Changes
Lyft Board Member Ariel Cohen Resigns Amid Changes
Neutral
May 23, 2025

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.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Lyft Expands Share Repurchase Program by $250 Million
Positive
May 8, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Lyft Announces Acquisition of FREENOW for €175 Million
Positive
Apr 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 14, 2025