Introduction & market environment

$LYFT (-1,25 %) Inc. published its quarterly results presentation for Q2 2025 on August 6, 2025, reporting record figures for several key metrics. The company's shares closed down 3.27% at USD 14.51 in regular trading, but showed signs of recovery in after-hours trading. This quarter's performance represents a significant improvement over Q1 2025, in which the company missed both profit and revenue forecasts.

Highlights of the quarterly performance

Lyft achieved all-time highs in its key operating and financial metrics in Q2 2025. The company reported 26.1 million active riders, up 10% year-over-year, and completed 234.8 million rides, up 14% compared to the same period last year.

quarterly active passengers:

This growth in passenger activity was directly reflected in financial performance, with gross bookings (Gross Bookings) reaching USD 4.5 billion, up 12% year-on-year and also a new all-time high for the company.

Consistent growth in gross bookings:

Key profitability figures also showed a significant improvement. Adjusted EBITDA reached USD 129 million (2.9% of gross bookings), which is the highest margin in the company's history. This continues a trend of steady margin improvement over the last two years.

Development of the company's EBITDA:

Of particular note, Lyft generated USD 993 million in free cash flow over the last twelve months, underscoring the company's improved financial stability and operational efficiency.

Significant improvement in free cash flow:

Strategic initiatives

Partnerships have become a cornerstone of Lyft's growth strategy. The company reported that over 50 million rides were attributable to partnerships in Q2 2025, an increase of 25% year-on-year. These partnership-generated rides are proving to be particularly valuable, as passengers referred through partners are 1.5 times more likely to choose high-value transportation and travel 1.3 times longer distances on average.

Company partnership:

Lyft is also expanding its global footprint through strategic acquisitions and partnerships. The acquisition of Freenow opens up new opportunities in Europe, while an upcoming partnership with United Airlines is set to launch in 2025. At the same time, the company is expanding its autonomous vehicle (AV) ecosystem through partnerships along the entire value chain, from autonomous driving technology to fleet management.

Lyft also sees significant growth potential in the US market, pointing out that about two-thirds of the estimated 161 billion annual private rides take place in markets that are currently underpenetrated. The company cited Indianapolis, Nashville and Milwaukee as examples of markets where both driver hours and the number of rides increased by over 20% in the second quarter.

Market opportunities USA:

Operational improvements

Lyft has made significant progress in improving the efficiency of the marketplace, particularly by reducing incentive costs. Total incentives per ride decreased to USD 1.03 in Q2 2025, compared to USD 1.82 in Q2 2023, representing a significant improvement in operational efficiency. The company stated that it is on track to achieve its 2024-2027 target of a 10% annual increase in incentive efficiency.

Trend of improved marketplace efficiency:

Outlook

For Q3 2025, Lyft forecasts gross bookings of approximately USD 4.65 billion to USD 4.80 billion, representing year-on-year growth of 13% to 17%. The company expects adjusted EBITDA of USD 125 million to USD 145 million, which corresponds to an adjusted EBITDA margin of approximately 2.7% to 3.0% of gross bookings.

Company guidance for Q3:

Lyft also reiterated that it is on track to achieve the long-term goals presented at the June 2024 Investor Day. This indicates confidence in the strategic direction despite the highly competitive environment and economic uncertainties.

Source:

investing.com

lyft.com

#lyft

#uber
$UBER (-1,72 %)

#robotaxis

#industrie

🌍 Macro & markets:

Stock markets rose significantly, supported by a fragile ceasefire between Israel & Iran as well as falling oil prices. Additional tailwind was provided by signals from the Fed, which raised hopes of a summer interest rate cut.

✅ S&P 500 $SPY: +1.11% to 6,092

✅ Nasdaq 100 $QQQ: +1.53% to 22,190

✅ Dow Jones $DIA: +1.19% to 43,089

✅ Russell 2000 $IWM: +1.28% to 2,161

✅ 9 out of 11 sectors up - tech ($XLK +1.8%) ahead, energy ($XLE -1.3%) at the bottom

🚢 Consumer data & corporate news:

✅ Carnival $CCL (-1,28 %)
: +6.91% - Strong figures with record sales, high ticket demand & record bookings for 2026. The forecast was raised, despite geopolitical risks the desire to travel remains unbroken.

⚠️ FedEx $FDX (-0,05 %)
: After-hours -5%. Weak Asian demand forces 35% capacity cuts on transpacific routes. Full-year guidance lowered, shares down 17% YTD.

🤖 Developments in the robotaxi sector:

✅ Uber $UBER (-1,72 %)
: +7.52% - launch of self-driving Waymo vehicles ($GOOG +1.04%) in Atlanta. Waymo with over 1 million autonomous miles & 150,000 paid rides/week.

✅ Lyft $LYFT (-1,25 %)
: +6.09% - Analyst upgrade to "Buy", price target raised from $16 to $21.

📰 Other headlines:

⚠️ Fed officials dampen expectations:

• Bostic expects only one rate cut at the end of 2025, points to inflationary pressure from new tariffs.
• Barr confirms cautious stance, Powell signals "willingness to wait"

✅ OpenAI builds up competition from Microsoft & Google:

Own productivity suite announced directly in ChatGPT, including collaboration features.

✅ Anthropic achieves partial success:

AI training on copyrighted books classified as "fair use", piracy trial to follow in December.

✅ Broadcom $AVGO (+8,33 %)
: New all-time high - optimism around AI chip pipeline, HSBC raises price target to $400.

✅ Nektar Therapeutics $NKTR (+11,65 %)
: Share price doubles after convincing study on eczema drug, up to 90% symptom improvement.

🔎 Summary:

✅ Consumption & travel sector surprise positively

⚠️ Trade & logistics under pressure, especially Asian routes

✅ Robotaxi & AI with further momentum

⚠️ Fed remains cautious, next weeks in focus: tariffs & possible postponement of interest rate hikes

$LYFT (-1,25 %)

Fundamental highlights

✅ Q1 sales: USD 1.5 billion (+14% YoY)

✅ Net result: USD +2.6 million (previous year: USD -31.5 million)

✅ EPS improved from USD -0.08 to USD +0.01

✅ Active riders: +11% to record figure of 24.2 million

✅ Trips: +16% to 218.4 million

➡ Platform grows strongly operationally, cost efficiency & scaling take effect

Strategic initiatives & outlook

✅ Share buyback program expanded to USD 750 million - signal of confidence to investors

✅ Lyft Silver: Service for senior citizens - new target group with potential

✅ Earnings Assistant: AI tool for better driver retention & earnings optimization

✅ Q2 outlook:

✔️ Ride growth in the mid double-digit range expected

✔️ Gross bookings: USD 4.41-4.57 billion (+10-14% YoY)

Analysts & Catalysts

🚀 TD Cowen upgrade on June 24.:

✅ Upgrade from "Hold" to "Buy"

✅ Price target raised from 16 to 21 USD

✅ Lyft named "best smidcap idea 2025"

✅ Growth driver:

✔️ Focus on smaller markets outside the top 25

✔️ Expansion through FREENOW takeover

✔️ Continuous product innovation (e.g. price fixing)

Chart technique & short-term trading scenario

✅ Breakout above the GD20 & resistance line is in focus

✅ Pivotal point from May 09 serves as an important hedging zone

✅ Consolidation could be complete - new upward wave possible

Conclusion for active traders

🔥 Combination of operational turnaround, expansion, product innovations & analyst upgrade

📈 Break above USD 15-15.50 could ignite a new upward push

🎯 Price target USD 18 in the short term, USD 21 in the medium term according to TD Cowen

I took part in Lyft's conference call ($LYFT (-1,25 %) ) for the 4th quarter and the full year 2024, which I would like to summarize for you.

CEO David Risher announced that 2024 had been a year of "reinvention and industry leadership" for Lyft. The company has reached all-time highs in rides, riders and driver hours. At the end of January, Lyft achieved its highest market share since 2022. The financial results were the best everconfirming the thesis that customer centricity drives profitable growth.

Drivers are choosing Lyft at record ratesand drivers collectively earned nearly 9 billion dollars in 2024. Technological innovations have shortened pick-up times and reduced "prime time" prices. The average number of rides per person has increased and Lyft has the most high-frequency riders in 5 years. The partnership with DoorDash was successful as it resulted in a record number of scheduled rides.

CFO Erin Brewer announced that 2024 was a remarkable year for Lyft. The company exceeded all targets in its multi-year plan. The gross bookings amounted to 16.1 billion dollarsan increase of 17%. By reducing "prime time" pricing and increasing efficiency and cost discipline, Lyft be GAAP profitable for the first time in a full year and generated free cash flow of 766 million dollars dollars.

In the fourth quarter, the number of rides increased by 15% and the number of active riders by 10%, while prices in the US market fell. For the first quarter of 2025 growth in gross bookings of around 10 % to 14 % is is expected. Lyft has also launched a share buyback program in the amount of 500 million dollars. announced.

In addition, the impact of new market participants such as Waymo was also discussed.

It was made clear that Waymo is seen as a company with very impressive technology, especially when it comes to their autonomous vehicles. In San Francisco, however, Waymo was seen as a premium product that is about 20% more expensive than Lyft's services. Despite Waymo's presence in San Francisco, its market market share there has remained stable. It is expected that these new technologies, like Waymo's, will create new demand from which Lyft can also benefit.

In addition, the introduction of autonomous vehicles is being driven forward. Lyft is planning the introduction of AVs in 2025 in collaboration with May Mobility in Atlanta. A partnership with Marubeni was also announced, which will utilize Mobileye's "Lyft-ready" AV technology, starting with a fleet of fleet of 1,000 vehicles in Dallas starting in 2026. AVs are seen as an opportunity to expand the market not as competition to existing rides.

I hope you enjoyed the summary. Basically, however, I am still #TeamUber ($UBER (-1,72 %) )

$UBER (-1,72 %)
$LYFT (-1,25 %)

In the last 15 months $UBER (-1,72 %) gained 29 million active customers per month.

That's more active customers than Lyft has in total. 🚀

$UBER (-1,72 %)

Attractively valued in my opinion and lots of growth potential 🚀

The number of monthly active platform customers reached 171 million in this quarter, 10 million more than in the same quarter of the previous year.

The operating leverage of $UBER (-1,72 %) has been astonishing over the last five years.

Adjusted EBITDA margin:

Q4 2019: -21 %

Q4 2024 15 %

Free cash flow:

$UBER (-1,72 %) Partners:

$TSLA (+2,79 %)
$GOOGL (+0,59 %)
$GOOG (+0,47 %)
$LYFT (-1,25 %)

$UBER (-1,72 %)
$LYFT (-1,25 %)

Uber completes 12 times more rides per quarter (including deliveries) than Lyft.