Lyft (LYFT) AI Stock Analysis

• Market Cap: $6.73B
• Dividend Yield: N/A
• Average Volume (3M): 18.57M
• Price to Earnings (P/E): 117.7
• Beta (1Y): 1.71
• Revenue Growth: 27.32%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): 0.24
• Shares Outstanding: 412,105,260
• 10 Day Avg. Volume: 31,124,748
• 30 Day Avg. Volume: 18,566,949
• PEG Ratio: 2.22
• Price to Book (P/B): 8.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.95
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: -1.02K
• 1Y Price Target: $17.23
• Price Target Upside: 7.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 30

• Rating: 70 Outperform
• Price Target: $18.50 ▲( 14.91% 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

Growth Initiatives

Lyft is driving increasing growth through ongoing technology and driver-centric innovations, new service offerings, international expansion, and the upcoming autonomous service will be a significant growth catalyst.

Market Expansion

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

Profitability Improvements

Lyft has made significant strides in profitability, posting a net profit of USD2.6mn in 1Q25, a marked improvement from the USD31.5mn loss in 1Q24, driven by increased ride volumes and cost control measures.

Negative Factors

Competitive Disadvantages

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

Market Skepticism

There is persistent market skepticism around Lyft’s long-term competitiveness, reflected by the stock trading at a forward EV/EBITDA of 7.8x, a 48% discount to Uber’s 15x.

Profitability Concerns

Lyft’s adjusted EBITDA margin of 2.6% remains significantly lower than Uber’s 15.4% margin, highlighting ongoing competitive pressure.

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 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

Lyft has demonstrated significant revenue growth and improved cash flow efficiency. The income statement shows positive trends in revenue and cost management, with net profit turning positive. The balance sheet reflects stabilization but still faces leverage challenges. Cash flow has improved with positive free cash flow, indicating better cash management.

Income Statement

Lyft's revenue for 2024 showed significant growth, with a revenue increase from $4.40B in 2023 to $5.79B in 2024, marking a strong growth trajectory. The gross profit margin improved from 33.1% to 42.3%, indicating better cost management. However, despite revenue growth, the EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges. Net profit turned positive at 0.39% due to better control of expenses, which is a positive indicator.

Balance Sheet

The debt-to-equity ratio improved as equity increased to $767M, reducing leverage risk. The equity ratio improved slightly, showing a healthier asset base. However, the return on equity remains low at 2.97% due to historical losses, despite the recent net income. Overall, the balance sheet shows signs of stabilization with improved equity but still faces leverage challenges.

Cash Flow

Lyft's cash flow metrics improved significantly, with free cash flow turning positive to $766M from a negative position in 2023, indicating better cash management and operational efficiency. The operating cash flow to net income ratio is strong, suggesting effective conversion of earnings into cash. Overall, the cash flow statement reflects a robust turnaround with improved liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.79B	4.40B	4.10B	3.21B	2.36B
	Gross Profit
2.45B	1.46B	1.66B	1.56B	917.16M
	EBIT
-118.91M	-475.60M	-1.46B	-1.08B	-1.81B
	EBITDA
203.16M	-188.97M	-1.40B	-841.84M	-1.61B
	Net Income Common Stockholders
22.78M	-340.32M	-1.58B	-1.01B	-1.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.98B	1.69B	1.80B	2.25B	2.25B
	Total Assets
5.44B	4.56B	4.56B	4.77B	4.68B
	Total Debt
1.17B	1.13B	1.03B	919.17M	959.33M
	Net Debt
412.99M	569.70M	744.28M	461.85M	639.60M
	Total Liabilities
4.67B	4.02B	4.17B	3.38B	3.00B
	Stockholders Equity
767.02M	541.52M	388.67M	1.39B	1.68B
Cash Flow		Free Cash Flow
766.27M	-248.06M	-352.25M	-180.90M	-1.47B
	Operating Cash Flow
849.74M	-98.24M	-237.28M	-101.72M	-1.38B
	Investing Cash Flow
-517.98M	599.75M	186.04M	267.01M	740.43M
	Financing Cash Flow
-155.87M	-122.08M	-87.50M	-72.47M	512.57M

Lyft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.10
• 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 16.1 is above the 20-day moving average (MA) of 14.80, above the 50-day MA of 12.84, and above the 200-day MA of 13.33, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 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
PYCR	74 Outperform	$4.09B	―	-1.66%	―	15.72%	74.59%
LYFT	70 Outperform	$6.73B	117.75	8.56%	―	27.32%	―
BILL	69 Neutral	$4.54B	482.28	0.97%	―	14.52%	―
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
ALIT	59 Neutral	$2.97B	―	-0.82%	1.45%	-26.04%	85.84%
KC	54 Neutral	$3.75B	―	-32.59%	―	8.56%	13.34%
COMP	48 Neutral	$3.17B	―	-14.96%	―	19.05%	78.91%

Lyft Corporate Events

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.

Lyft Announces Departure of Chief Accounting Officer

On March 3, 2025, Lyft announced the departure of its Chief Accounting Officer, Lisa Blackwood-Kapral, effective March 6, 2025. Her departure is not due to any disputes or disagreements with the company or its management. Erin Brewer, the current Chief Financial Officer, will assume the role of interim Chief Accounting Officer while continuing her duties as CFO, ensuring continuity in the company’s financial leadership.