Lyft(LYFT) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview Lyft achieved record Q2 2025 financial results, highlighted by strategic partnerships and strong progress towards long-term targets Key Announcements Lyft announced record financial results for the second quarter ended June 30, 2025, highlighting partnerships with United Airlines, accelerating growth in Q3, and being on track for long-term targets - Lyft reported record financial results for Q2 2025, ended June 30, 2025[1] - Key announcements include partnering with United Airlines, accelerating growth in Q3, and being on track to deliver long-term targets[1] Management Commentary CEO David Risher emphasized "off-the-charts performance," a thriving marketplace, TAM expansion with Freenow, and meaningful partnerships. CFO Erin Brewer highlighted record Rides, Gross Bookings, and cash flow, underscoring operational excellence and strategic partnerships for accelerated growth - CEO David Risher stated Q2 was Lyft's "strongest quarter ever" with a thriving marketplace, expanding Total Addressable Market (TAM) due to the Freenow acquisition, and new partnerships with Baidu and United Airlines[2] - CFO Erin Brewer highlighted "all-time record Rides, Gross Bookings, and cash flow generation," attributing success to operational excellence and customer obsession, and expressed readiness to accelerate growth with market expansion and strategic partnerships[2] Second Quarter 2025 Highlights Lyft reported record financial and operational performance in Q2 2025, driven by significant growth in Gross Bookings, Rides, and Active Riders, alongside strategic share repurchases Financial Highlights Lyft achieved record Gross Bookings of $4.5 billion (up 12% YoY), revenue of $1.6 billion (up 11% YoY), and a significant increase in net income to $40.3 million from $5.0 million in Q2'24. Adjusted EBITDA also reached a record $129.4 million, up 26% YoY, with an improved margin of 2.9%. The company also repurchased $200 million in shares Financial Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Gross Bookings | $4.5 billion | N/A | +12% | | Revenue | $1.6 billion | N/A | +11% | | Net Income | $40.3 million | $5.0 million | +$35.3 million | | Net Income % of Gross Bookings | 0.9% | 0.1% | +0.8 pp | | Adjusted EBITDA | $129.4 million | $102.9 million | +26% | | Adjusted EBITDA Margin % of Gross Bookings | 2.9% | 2.6% | +0.3 pp | | Net cash provided by operating activities | $343.7 million | $276.2 million | +$67.5 million | | Free cash flow | $329.4 million | $256.4 million | +$73.0 million | - Lyft repurchased 12.8 million shares for $200 million in Q2'25 via its share repurchase program[5] Operational Highlights Operationally, Lyft achieved an all-time high of 234.8 million Rides, growing 14% YoY, marking the ninth consecutive quarter of double-digit growth. Active Riders also reached an all-time high of 26.1 million, up 10% YoY. The company strengthened its dual-app driver preference and introduced new business traveler benefits Operational Metrics | Metric | Q2 2025 | YoY Growth | | :----- | :------ | :--------- | | Rides | 234.8 million | 14% | | Active Riders | 26.1 million | 10% | - Dual-app driver preference for Lyft continues to increase, now 29 percentage points, up from 6 percentage points a year ago[5] - Lyft Silver is exceeding expectations, with nearly 1 in 5 activations coming from new users and a strong retention rate of nearly 80%[5] - Announced upcoming partnerships with Baidu, BENTELER Mobility, and United Airlines while strengthening existing partnerships with Alaska Airlines, Chase, and DoorDash[5] Third Quarter 2025 Outlook Lyft projects continued strong growth for Q3 2025, with anticipated mid-teens Rides growth and increased Gross Bookings and Adjusted EBITDA, incorporating the Freenow acquisition Third Quarter 2025 Outlook For Q3 2025, Lyft anticipates mid-teens year-over-year Rides growth, Gross Bookings between $4.65 billion and $4.80 billion (up 13% to 17% YoY), and Adjusted EBITDA of $125 million to $145 million, with an Adjusted EBITDA margin of 2.7% to 3.0%. The outlook includes two months of combined company results following the Freenow acquisition - The Q3 2025 outlook includes two months of combined company results due to the Freenow acquisition closing on July 31[6] Q3 2025 Projections | Metric | Q3 2025 Outlook | YoY Growth | | :----- | :-------------- | :--------- | | Rides Growth | Mid-teens | N/A | | Gross Bookings | $4.65 billion - $4.80 billion | 13% - 17% | | Adjusted EBITDA | $125 million - $145 million | N/A | | Adjusted EBITDA Margin | 2.7% - 3.0% | N/A | Detailed Financial and Operational Results This section provides a comprehensive tabular overview of Lyft's financial and operational performance across multiple quarters, demonstrating consistent growth and improved profitability Financial and Operational Results Table This section provides a detailed tabular breakdown of Lyft's key financial and operational metrics for Q2 2025, Q1 2025, and Q2 2024, showing consistent growth across Active Riders, Rides, Gross Bookings, Revenue, Net Income, and cash flow metrics Key Financial and Operational Metrics (in millions, except Active Riders) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------------- | :------------ | :------------- | :------------ | | Active Riders (millions) | 26.1 | 24.2 | 23.7 | | Rides (millions) | 234.8 | 218.4 | 205.3 | | Gross Bookings (millions) | $4,490.1 | $4,162.4 | $4,018.9 | | Revenue (millions) | $1,588.2 | $1,450.2 | $1,435.8 | | Net income (millions) | $40.3 | $2.6 | $5.0 | | Net income as a percentage of Gross Bookings | 0.9% | 0.1% | 0.1% | | Net cash provided by operating activities (millions) | $343.7 | $287.2 | $276.2 | | Adjusted EBITDA (millions) | $129.4 | $106.5 | $102.9 | | Adjusted EBITDA margin (% of Gross Bookings) | 2.9% | 2.6% | 2.6% | | Free cash flow (millions) | $329.4 | $280.7 | $256.4 | Definitions of Key Metrics This section clarifies the definitions of key operational and financial metrics, including Active Riders, Rides, Gross Bookings, and Adjusted EBITDA Margin, used in Lyft's reporting Active Riders Active Riders are defined as unique riders who have taken at least one ride during the quarter. The definition was updated in Q1 2025 to simplify and align with business scaling, now identifying riders via a unique internal identifier instead of phone number - Active Riders are defined as all unique riders who have taken at least one ride during the quarter[9] - In Q1 2025, Lyft updated the definition of Active Riders to simplify it and better align with future business scaling, now using a unique internal identifier instead of phone number[10] Rides Rides represent the total number of completed rides (rideshare, bike, scooter) that contribute to revenue. Each unique segment of a Shared Ride is counted as a single ride, though Lyft has largely shifted away from Shared Rides - Rides are defined as the total number of rides, including rideshare and bike/scooter rides, completed using Lyft's multimodal platform that contribute to revenue[11] - Each unique segment of a Shared Ride is considered a single Ride, but Lyft has largely shifted away from Shared Rides, now offering them only in limited markets[11][13] Gross Bookings Gross Bookings indicate the scale and impact of Lyft's platform, representing the total dollar value of transactions invoiced to rideshare riders (including taxes, tolls, fees, excluding tips) and amounts invoiced for other offerings like rentals, subscriptions, and partnerships - Gross Bookings represent the total dollar value of transactions invoiced to rideshare riders (including any applicable taxes, tolls and fees excluding tips to drivers) and amounts invoiced for other offerings, including Express Drive vehicle rentals, bike and scooter rentals, and subscriptions[14] Adjusted EBITDA Margin Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Gross Bookings for the same period and is considered a key metric for assessing operating performance - Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is calculated by dividing Adjusted EBITDA for a period by Gross Bookings for the same period and is considered a key metric[15] Company Information & Disclosures This section outlines Lyft's corporate information, including webcast details, company overview, public disclosure practices, forward-looking statements, non-GAAP measures, and contact information Webcast Information Lyft will host a webcast on August 6, 2025, at 2:00 p.m. Pacific Time to discuss financial results and business highlights, with supplemental materials available on its Investor Relations page - Lyft will host a webcast on August 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss financial results and business highlights, with supplemental materials available on its Investor Relations page[16] About Lyft Founded in 2012, Lyft is a global mobility platform operating across 4 continents and nearly 1,000 cities, offering rideshare, taxis, private hire vehicles, car sharing, bikes, and scooters, driven by its purpose to serve and connect - Founded in 2012, Lyft is a global mobility platform offering a mix of rideshare, taxis, private hire vehicles, car sharing, bikes, and scooters across 4 continents and nearly 1,000 cities[17] Available Information Lyft publicly discloses material information through SEC filings, press releases, conference calls, its investor relations website, social media accounts (X, LinkedIn), and blogs to ensure broad distribution and compliance with Regulation FD - Lyft announces material information through SEC filings, press releases, public conference calls, webcasts, its investor relations website (investor.lyft.com), X accounts (@lyft and @davidrisher), CEO's LinkedIn, and blogs[18] Forward-Looking Statements This section contains standard forward-looking statements regarding future events, financial performance, guidance, share repurchase programs, strategic partnerships, and the anticipated impact of the Freenow acquisition, subject to various risks and uncertainties - Forward-looking statements include Lyft's guidance and outlook for Q3 2025, expectations for its share repurchase program, plans for new and existing strategic partnerships, and the anticipated impact of the Freenow acquisition on TAM, international operations, and financial results[19] - These statements are subject to risks and uncertainties, including macroeconomic environment and forecasting ability, as described in SEC filings. Lyft disclaims any obligation to update these statements, except as required by law[19][20] Non-GAAP Financial Measures Lyft uses non-GAAP measures like Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow to supplement GAAP information, defining them and explaining adjustments for items such as sublease income and acquisition-related costs. These measures are used for performance assessment, budgeting, and communication, but have limitations and may not be comparable to other companies - Lyft uses non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings), and free cash flow to supplement GAAP financial information[21] - Adjusted EBITDA is net income (loss) adjusted for interest expense, other income, taxes, depreciation, amortization, stock-based compensation, payroll tax, sublease income, restructuring charges, and acquisition-related costs. Free cash flow is GAAP net cash provided by operating activities less purchases of property and equipment and scooter fleet[21] - These non-GAAP measures are used for overall performance assessment, budgeting, evaluating business strategies, and communicating with the board, but have limitations and may not be comparable to other companies[24][25] Contacts Contact information for investor relations (Aurélien Nolf) and media (Stephanie Rice) is provided - Investor Relations contact: Aurélien Nolf (investor@lyft.com). Media contact: Stephanie Rice (press@lyft.com)[26] Condensed Consolidated Financial Statements This section presents Lyft's condensed consolidated balance sheets, statements of operations, and cash flows, offering a detailed view of the company's financial health and performance Condensed Consolidated Balance Sheets The balance sheet presents Lyft's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity. Total assets decreased slightly, while total liabilities also saw a minor reduction Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total current assets | $2,757,582 | $2,950,533 | -$192,951 | | Total assets | $5,369,367 | $5,435,069 | -$65,702 | | Total current liabilities | $3,916,737 | $3,880,742 | +$35,995 | | Total liabilities | $4,636,691 | $4,668,053 | -$31,362 | | Total stockholders' equity | $732,676 | $767,016 | -$34,340 | - Cash and cash equivalents increased from $759,319 thousand at December 31, 2024, to $913,845 thousand at June 30, 2025[28] Condensed Consolidated Statements of Operations The income statement shows Lyft's financial performance for the three and six months ended June 30, 2025, and 2024. Revenue increased significantly, and the company reported net income for both periods in 2025, a notable improvement from a net loss in the six months ended June 30, 2024 Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,588,183 | $1,435,846 | $3,038,355 | $2,713,047 | | Income (loss) from operations | $2,430 | $(27,226) | $(26,419) | $(90,177) | | Net income (loss) | $40,314 | $5,014 | $42,881 | $(26,521) | | Basic Net income (loss) per share | $0.10 | $0.01 | $0.10 | $(0.07) | | Diluted Net income (loss) per share | $0.10 | $0.01 | $0.10 | $(0.07) | - Total costs and expenses for the three months ended June 30, 2025, were $1,585,753 thousand, compared to $1,463,072 thousand in the prior year period[30] Condensed Consolidated Statements of Cash Flows The cash flow statement details cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024. Net cash provided by operating activities significantly increased, while investing activities shifted from a net use to a net provision of cash Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $630,962 | $432,379 | | Net cash provided by (used in) investing activities | $496,262 | $(317,157) | | Net cash used in financing activities | $(699,272) | $(66,883) | | Net increase in cash, cash equivalents and restricted cash | $429,072 | $47,838 | | End of period cash, cash equivalents and restricted cash | $1,375,112 | $819,624 | - Non-cash investing and financing activities included $21,962 thousand for financed vehicles acquired and $10,178 thousand for purchases of property and equipment not yet settled in the six months ended June 30, 2025[34] GAAP to Non-GAAP Reconciliations This section provides detailed reconciliations of GAAP net income to Adjusted EBITDA and net cash from operating activities to free cash flow, explaining non-GAAP adjustments Adjusted EBITDA Reconciliation This section provides a reconciliation of net income to Adjusted EBITDA for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing adjustments for interest expense, other income, taxes, depreciation, stock-based compensation, and acquisition-related costs Adjusted EBITDA Reconciliation (in millions) | Metric (in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------- | :------------ | :------------- | :------------ | | Net income | $40.3 | $2.6 | $5.0 | | Adjustments: | | | | | Interest expense | $6.2 | $7.5 | $9.4 | | Other income, net | $(47.0) | $(40.9) | $(41.9) | | Provision for income taxes | $4.1 | $3.4 | $1.9 | | Depreciation and amortization | $30.6 | $33.6 | $37.7 | | Stock-based compensation | $82.1 | $93.2 | $85.7 | | Payroll tax expense related to stock-based compensation | $3.9 | $4.0 | $4.2 | | Sublease income | $0.1 | $0.1 | $1.0 | | Costs related to acquisitions, divestitures and other corporate matters | $9.1 | $3.2 | $0.0 | | Adjusted EBITDA | $129.4 | $106.5 | $102.9 | | Adjusted EBITDA margin (% of Gross Bookings) | 2.9% | 2.6% | 2.6% | - Acquisition-related costs, which are unpredictable and not reflective of ongoing core operations, were $9.1 million in Q2 2025 and $3.2 million in Q1 2025[36][37] Free Cash Flow Reconciliation This section reconciles net cash provided by operating activities to free cash flow for the trailing twelve months ended June 30, 2025, and for the individual quarters, highlighting the deduction of purchases of property and equipment and scooter fleet Free Cash Flow Reconciliation (in millions) | Metric (in millions) | Trailing Twelve Months Ended June 30, 2025 | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | Three Months Ended September 30, 2024 | Three Months Ended June 30, 2024 | | :------------------- | :--------------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------------- | :------------------------------------ | :------------------------------- | | Net cash provided by operating activities | $1,048.3 | $343.7 | $287.2 | $153.4 | $264.0 | $276.2 | | Less: purchases of property and equipment and scooter fleet | $(55.4) | $(14.3) | $(6.5) | $(13.4) | $(21.2) | $(19.8) | | Free cash flow | $993.0 | $329.4 | $280.7 | $140.0 | $242.8 | $256.4 |