Lyft Inc (NASDAQ:LYFT) reported record third quarter results that fell short of analyst expectations on revenue and earnings per share (EPS).
Despite the worse-than-expected Q3 results, Lyft shares jumped 7.4% to about $21 on upbeat guidance for the December quarter.
For Q4 2025, Lyft expects gross bookings of $5.01 billion to $5.13 billion, above Wall Street’s consensus, with rides growth in the mid- to high-teens percentage and adjusted EBITDA of $135 million to $155 million.
For Q3, gross bookings reached $4.8 billion, up 16% year over year, slightly above the Wall Street consensus of $4.73 billion.
Revenue was $1.69 billion, just under the analysts’ $1.71 billion estimate, and EPS of $0.11 were significantly below the expected $0.28.
Net income was $46.1 million, compared with a loss of $12.4 million in Q3 2024, while adjusted EBITDA rose 29% to $138.9 million.
Lyft generated $1.08 billion in net cash from operations over the trailing 12 months and achieved record free cash flow of $1.03 billion.
Active riders grew 18% to 28.7 million, and rides increased 15% to 248.8 million. The company announced partnerships with Waymo and Tensor for autonomous vehicles and acquired luxury chauffeuring firm TBR Global Chauffeuring.
Wedbush noted Lyft’s “modest results” in the quarter, noting gross bookings slightly exceeded expectations while revenue was just below estimates and the implied take rate lagged.
The firm highlighted that adjusted EBITDA met Street expectations and guidance suggests sequential acceleration in rides growth.
Wedbush added that the company’s recent acquisitions should support top-line performance in 2026, with management projecting annual free cash flow well above $1 billion.
They also cautioned that long-term benefits from autonomous vehicle partnerships may shift once broader AV deployment progresses.
“While Lyft has attempted to position itself as a beneficiary of AV expansion through its partnerships in the US and Europe (most notably with Waymo in Nashville), we believe this perceived benefit may flip once the distribution need for the “autonomous on training wheels” phase of development is complete,” the analysts wrote.
Wedbush maintained its ‘Neutral’ rating on Lyft but upped its price target to $20.
“Following results and encouraging management commentary, we are increasingly constructive on the company's ability to achieve its investor day targets,” the analysts wrote.
“While our near-term expectations are relatively unchanged, we raise our bookings and adjusted EBITDA estimates accordingly over the coming years.”