Lyft’s first quarter results for 2025 saw sales grow year over year despite missing Wall Street’s revenue and profit expectations. The market responded positively, driven by management’s emphasis on expanding into new regions and product categories. CEO David Risher highlighted that growth was broad-based, noting, “We delivered Q1 records in gross bookings, adjusted EBITDA and free cash flow.” Management pointed to rising active riders, increased driver engagement, and ongoing investments in platform reliability as the primary contributors to quarterly performance.
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Lyft (LYFT) Q1 CY2025 Highlights:
- Revenue: $1.45 billion vs analyst estimates of $1.47 billion (13.5% year-on-year growth, 1.3% miss)
- Adjusted EPS: $0.11 vs analyst expectations of $0.20 (46.7% miss)
- Adjusted EBITDA: $106.5 million vs analyst estimates of $92.39 million (7.3% margin, 15.3% beat)
- EBITDA guidance for Q2 CY2025 is $122.5 million at the midpoint, in line with analyst expectations
- Operating Margin: -2%, up from -4.9% in the same quarter last year
- Active Riders: 24.2 million, up 2.3 million year on year
- Market Capitalization: $6.61 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Lyft’s Q1 Earnings Call
- Brad Erickson (RBC Capital Markets) asked about Lyft’s pricing environment and insurance cost trends. CFO Erin Brewer explained that prices were lower than last quarter but up modestly year-over-year, and insurance initiatives remain ongoing without major near-term changes.
- Ken Gawrelski (Wells Fargo) questioned Lyft’s positioning amid industry affordability initiatives and international ambitions. CEO David Risher emphasized product innovation like Silver and Price Lock, and noted that further international expansion beyond FREENOW is not planned in the near term.
- Eric Sheridan (Goldman Sachs) inquired about autonomous vehicle partnerships and their impact on market supply. Risher described AVs as a long-term opportunity and stressed the importance of fleet management and monetization partnerships.
- Michael Morton (MoffettNathanson) asked about Lyft’s ability to invest in FREENOW and the potential mix shift between taxis and rideshare. Brewer indicated foundational integration will follow deal close, and Risher explained that taxi services in Europe are often a premium segment, distinct from U.S. rideshare.
- Nikhil Devnani (Bernstein) asked about the scale and pace of Lyft’s U.S. taxi initiative and whether AV partnerships require exclusivity. Risher said taxi expansion will proceed gradually, leveraging FREENOW’s expertise, and that AV suppliers generally prefer multiple platform partnerships.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the timeline and integration progress of the FREENOW acquisition, (2) early results from autonomous vehicle and taxi partnership launches in new markets, and (3) the adoption rates of rider-focused features like Price Lock and Wait & Save. These milestones, along with any shifts in insurance costs or regulatory changes, will be key indicators of Lyft’s ability to execute on its growth strategy.
Lyft currently trades at $15.89, up from $13.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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