Lyft(LYFT) - 2025 Q2 - Quarterly Report

FORM 10-Q Filing Information Registrant Information This section details Lyft, Inc.'s identification for its Q2 2025 Form 10-Q, including incorporation, executive offices, and stock exchange listing - Lyft, Inc. is incorporated in Delaware with its principal executive offices in San Francisco, California[3] Class A Common Stock Listing Information | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :----------------------------------------| | Class A common stock, par value of $0.00001 per share | LYFT | Nasdaq Global Select Market | - As of August 1, 2025, 397,910,877 shares of Class A common stock and 8,530,629 shares of Class B common stock were outstanding[5] Filing Status Lyft, Inc. confirms SEC filing compliance, having filed all required reports and being classified as a large accelerated filer - The registrant has filed all required reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days[4] - The registrant has submitted electronically every Interactive Data File required by Rule 405 of Regulation S-T during the preceding 12 months[4] Registrant Filer Status | Large accelerated filer | ☒ | | :---------------------- | :---| | Non-accelerated filer | ☐ | | Emerging growth company | ☐ | Table of Contents Note About Forward-Looking Statements Forward-Looking Statements Disclaimer This section cautions that the Form 10-Q contains forward-looking statements subject to substantial risks and uncertainties, with actual results potentially differing materially - Forward-looking statements relate to future events or financial/operating performance and are identified by words like 'may,' 'will,' 'expect,' 'plan,' 'anticipate,' 'could,' 'intend,' 'target,' 'project,' 'contemplate,' 'believe,' 'estimate,' 'predict,' 'potential' or 'continue'[10] - Key areas covered by forward-looking statements include future financial performance, restructuring actions, liquidity, demand for the platform, ability to attract/retain drivers/riders, new offerings, competition, pricing, litigation, regulatory effects, risk management, and macroeconomic conditions[12] - The outcome of these statements is subject to risks, uncertainties, and other factors, including those described in the 'Risk Factors' section, and actual results may differ materially[13] PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents Lyft, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, with detailed notes Condensed Consolidated Balance Sheets Lyft's balance sheets show total assets decreased from $5.44 billion to $5.37 billion, driven by changes in cash, investments, and convertible notes Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :--------------------------- | :----------------------------- | :-------------------- | | Cash and cash equivalents | $913,845 | $759,319 | $154,526 | | Short-term investments | $878,319 | $1,225,124 | $(346,805) | | Restricted cash and cash equivalents | $461,267 | $186,721 | $274,546 | | Total assets | $5,369,367 | $5,435,069 | $(65,702) | | Insurance reserves | $1,947,865 | $1,701,393 | $246,472 | | Convertible senior notes, current | $— | $390,175 | $(390,175) | | Total liabilities | $4,636,691 | $4,668,053 | $(31,362) | | Total stockholders' equity | $732,676 | $767,016 | $(34,340) | Condensed Consolidated Statements of Operations Lyft's profitability significantly improved, with net income for the three months surging over 700% to $40.3 million and turning profitable for the six months at $42.9 million Condensed Consolidated Statements of Operations (in thousands) | Metric | 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 | | Total costs and expenses | $1,585,753 | $1,463,072 | $3,064,774 | $2,803,224 | | Income (loss) from operations | $2,430 | $(27,226) | $(26,419) | $(90,177) | | Net income (loss) | $40,314 | $5,014 | $42,881 | $(26,521) | | Basic EPS | $0.10 | $0.01 | $0.10 | $(0.07) | | Diluted EPS | $0.10 | $0.01 | $0.10 | $(0.07) | - Net income increased by 704% for the three months ended June 30, 2025, compared to the same period in 2024[21] - For the six months ended June 30, 2025, net income was $42.9 million, a significant improvement from a net loss of $26.5 million in the prior year period[21] Condensed Consolidated Statements of Comprehensive Income (Loss) Lyft's comprehensive income significantly improved to $43.7 million for three months and $46.0 million for six months, driven by net income and foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $40,314 | $5,014 | $42,881 | $(26,521) | | Foreign currency translation adjustment | $3,568 | $(1,012) | $3,671 | $(505) | | Unrealized loss on marketable securities | $(157) | $(488) | $(592) | $(2,319) | | Other comprehensive income (loss) | $3,411 | $(1,500) | $3,079 | $(2,824) | | Comprehensive income (loss) | $43,725 | $3,514 | $45,960 | $(29,345) | - Comprehensive income for the three months ended June 30, 2025, increased to $43.7 million from $3.5 million in the prior year[24] - For the six months ended June 30, 2025, comprehensive income was $46.0 million, a significant improvement from a loss of $29.3 million in the prior year period[24] Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased from $767.0 million to $732.7 million, primarily due to $201.4 million in share repurchases and $61.5 million in net share settlements Changes in Stockholders' Equity (in thousands) - Six Months Ended June 30, 2025 | Item | Amount | | :------------------------------------ | :-------| | Balance as of December 31, 2024 | $767,016 | | Shares withheld related to net share settlement | $(61,495) | | Stock-based compensation | $175,260 | | Repurchase and retirement of common stock | $(201,369) | | Net income | $42,881 | | Balance as of June 30, 2025 | $732,676 | Changes in Stockholders' Equity (in thousands) - Six Months Ended June 30, 2024 | Item | Amount | | :------------------------------------ | :-------| | Balance as of December 31, 2023 | $541,518 | | Shares withheld related to net share settlement | $(8,898) | | Stock-based compensation | $165,837 | | Repurchase and retirement of common stock | $(50,000) | | Purchase of capped call | $(47,886) | | Net loss | $(26,521) | | Balance as of June 30, 2024 | $577,628 | Condensed Consolidated Statements of Cash Flows Lyft's operating cash flow increased 46% to $631.0 million, investing activities provided $496.3 million, and financing used $699.3 million due to debt repayment and share repurchases Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | 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 and cash equivalents | $429,072 | $47,838 | - Operating cash flows increased by $198.6 million YoY, driven by net income improvement and changes in working capital, particularly insurance reserves[32][239] - Investing activities saw a positive shift, primarily from proceeds from sales and maturities of marketable securities ($2.1 billion) offsetting purchases ($1.6 billion)[32][241] - Financing cash outflows significantly increased due to the repayment of $390.7 million in 2025 Notes and $200.0 million in Class A common stock repurchases[32][243] Notes to Condensed Consolidated Financial Statements These notes detail Lyft's business, accounting policies, and financial line items, covering revenue, investments, leases, legal proceedings, debt, equity, income taxes, and the Freenow acquisition 1. Description of Business and Basis of Presentation Lyft operates multimodal transportation networks in the US and Canada, primarily ridesharing, with financial statements prepared under GAAP and SEC rules - Lyft operates multimodal transportation networks in the United States and Canada, primarily facilitating peer-to-peer ridesharing[36] - Other transportation options include bikes, scooters, Express Drive vehicle rentals (via Flexdrive), Lyft Business offerings (Concierge, Lyft Pass), and revenue from licensing, data access, and advertising services[37] - Financial statements are prepared under GAAP and SEC rules, with estimates for items like insurance claims, fair value of assets/liabilities, goodwill, leases, and legal contingencies[38][40][41] 2. Summary of Significant Accounting Policies Lyft's accounting policies are consistent with its 2024 10-K, operating as a single segment, with new accounting pronouncements pending adoption - No material changes to significant accounting policies since the Annual Report on Form 10-K for the year ended December 31, 2024[42] - Lyft operates as one operating segment, with the CEO (CODM) reviewing consolidated net income (loss) for decision-making[43] - Upcoming accounting pronouncements include ASU No. 2023-09 (Income Tax Disclosures, effective after Dec 15, 2024), ASU 2024-03 (Disaggregation of Income Statement Expenses, effective after Dec 15, 2026), and ASU 2024-04 (Induced Conversions of Convertible Debt, effective after Dec 15, 2025)[44][45][46] 3. Revenue Lyft's revenue primarily stems from its ridesharing marketplace (ASC 606), supplemented by rental and other services, totaling $1.59 billion for Q2 2025 - Substantially all (85% or more) of Lyft's revenue is from its ridesharing marketplace, recognized under ASC 606[47] - Other revenue streams include licensing, data access, subscription fees, bike/bike station sales, advertising, and rental revenue (Flexdrive, bikes/scooters) recognized under ASC 842[47] Disaggregation of Revenue (in thousands) | Revenue Source | 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 from contracts with customers (ASC 606) | $1,477,121 | $1,321,830 | $2,851,310 | $2,531,568 | | Rental revenue (ASC 842) | $111,062 | $114,016 | $187,045 | $181,479 | | Total revenue | $1,588,183 | $1,435,846 | $3,038,355 | $2,713,047 | 4. Cash Equivalents and Investments Lyft's cash equivalents and investments decreased to $3.12 billion, primarily comprising money market funds and debt securities, with $78.6 million in interest income Total Unrestricted and Restricted Cash Equivalents and Investments (in thousands) | Date | Cost or Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | | :---------------- | :--------------------- | :--------------- | :---------------- | :------------------- | | June 30, 2025 | $3,124,742 | $1,008 | $(817) | $3,124,933 | | December 31, 2024 | $3,393,351 | $1,948 | $(1,167) | $3,394,132 | - Interest income for the three months ended June 30, 2025, was $39.0 million, and for the six months, it was $78.6 million[52] - The company classifies debt securities as short-term investments, even those with maturity dates beyond one year, as they are available for current operations[51] 5. Fair Value Measurements Lyft measures $2.84 billion in financial assets at fair value using Level 1 and Level 2 inputs, also holding non-marketable equity securities on a non-recurring basis Total Financial Assets Measured at Fair Value (in thousands) | Date | Level 1 | Level 2 | Level 3 | Total | | :---------------- | :------ | :-------- | :------ | :-------- | | June 30, 2025 | $224,782 | $2,615,118 | $— | $2,839,900 | | December 31, 2024 | $232,538 | $2,854,684 | $— | $3,087,222 | - Level 1 inputs reflect quoted prices for identical assets in active markets, while Level 2 inputs use observable market data[67] - Non-marketable equity securities are measured at fair value on a non-recurring basis, based on observable transactions or for impairment, with changes recorded in other income, net[63] 6. Supplemental Financial Statement Information Prepaid expenses remained stable at $965.4 million, while accrued liabilities increased to $1.84 billion due to higher insurance and ride-related accruals, and a reinsurance agreement was executed Prepaid Expenses and Other Current Assets (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Prepaid insurance | $363,101 | $428,884 | | Enterprise and trade receivables, net | $359,940 | $334,843 | | Total prepaid expenses and other current assets | $965,418 | $966,090 | Accrued and Other Current Liabilities (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Insurance-related accruals | $834,598 | $763,842 | | Legal and tax related accruals | $301,281 | $333,979 | | Ride-related accruals | $263,409 | $178,114 | | Total accrued and other current liabilities | $1,839,940 | $1,666,278 | - Lyft's subsidiary, PVIC, entered into a Loss Portfolio Transfer Reinsurance Agreement for $120.5 million of legacy auto insurance liabilities, with a premium of $85.1 million, largely on a funds withheld basis[70] 7. Leases Lyft manages operating leases for real estate ($167.3 million) and finance leases for Flexdrive vehicles ($68.7 million), with total lease costs of $39.7 million for H1 2025 - Lyft has approximately 60 real estate operating leases with terms up to nine years, and Flexdrive operates finance leases for rental vehicles with terms up to four years[72][73] Lease Liabilities and Terms (in thousands, except years and rates) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total operating lease liabilities | $167,336 | $177,266 | | Total finance lease liabilities | $68,708 | $85,619 | | Weighted-average remaining operating lease term (years) | 7.3 | 7.7 | | Weighted-average remaining finance lease term (years) | 2.3 | 2.6 | | Weighted-average operating lease discount rate | 6.6% | 6.6% | | Weighted-average finance lease discount rate | 6.4% | 6.4% | Total Lease Cost (in thousands) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total lease cost | $19,605 | $21,397 | $39,690 | $42,590 | 8. Commitments and Contingencies Lyft faces diverse legal and regulatory challenges, including driver classification lawsuits, tax disputes, and patent litigation, with the California Supreme Court upholding Proposition 22 - Lyft maintains $60.7 million in outstanding letters of credit as of June 30, 2025, under its Revolving Credit Facility[84] - The California Supreme Court unanimously upheld Proposition 22 on July 25, 2024, affirming drivers' independent contractor status, despite ongoing legal challenges in other coordinated cases[91] - Lyft reached a resolution with the Massachusetts Attorney General on June 27, 2024, to dismiss litigation regarding driver classification, providing new benefits while maintaining independent contractor flexibility[93] - The company is involved in administrative audits with state employment agencies (Oregon, Wisconsin, Illinois, New York, Pennsylvania, New Jersey, California EDD) regarding driver classification for unemployment insurance, with accruals recorded for probable and estimable losses[97][98][99][100] - Lyft is disputing San Francisco's application of gross receipts taxes to rideshare, filing a suit for a refund of approximately $100 million for tax years 2019-2023[102] - In July 2024, Lyft successfully defended against a class action alleging ADA violations regarding wheelchair accessible vehicle (WAV) offerings, with the district court ruling in its favor on September 30, 2024[105] 9. Debt Lyft's long-term debt decreased to $573.2 million due to the $390.7 million settlement of 2025 Convertible Senior Notes, with $460.0 million in 2029 Notes and an undrawn $420.0 million credit facility Outstanding Debt Obligations (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Convertible senior notes due 2025 | $— | $390,175 | | Convertible senior notes due 2029 | $451,227 | $450,081 | | Non-revolving Loan | $154 | $510 | | Master Vehicle Loan | $121,800 | $154,281 | | Total long-term debt, including current maturities | $573,181 | $995,047 | - The 2025 Notes matured on May 15, 2025, and the outstanding $390.7 million principal amount was fully settled in cash[112] - The 2029 Notes, issued in February 2024, have a principal amount of $460.0 million, mature on March 1, 2029, and have an initial conversion price of approximately $21.08 per share[113][116] - Lyft has a $420.0 million Revolving Credit Facility, maturing November 3, 2027, with no amounts drawn as of June 30, 2025, and $60.7 million reduced by letters of credit[138][142][250] 10. Common Stock Lyft's board authorized a $750.0 million share repurchase program, with $200.0 million executed, and $251.1 million in unrecognized compensation cost for unvested equity awards - Lyft's board authorized a share repurchase program of up to $750.0 million, increasing from an initial $500.0 million[143] - During the six months ended June 30, 2025, Lyft repurchased 12.8 million shares of Class A common stock for $200.0 million, with $550.0 million remaining under authorization[144] Restricted Stock Unit (RSU) Activity (in thousands, except per share data) | Metric | Amount | | :-------------------------------- | :-------| | Unvested units as of December 31, 2024 | 26,194 | | Granted | 22,496 | | Vested | (9,489) | | Canceled | (2,706) | | Unvested units as of June 30, 2025 | 36,495 | - Total unrecognized compensation cost for unvested awards was $251.1 million as of June 30, 2025, expected to be recognized over approximately one year[151] 11. Income Taxes Lyft recorded $7.4 million in income tax expense for H1 2025, with a 14.76% effective tax rate, primarily impacted by a valuation allowance on deferred tax assets Income Tax Expense and Effective Tax Rate (in thousands) | Period | Income Tax Expense | Effective Tax Rate | | :-------------------------------- | :----------------- | :----------------- | | Three Months Ended June 30, 2025 | $4,073 | 9.18% | | Three Months Ended June 30, 2024 | $1,851 | 26.96% | | Six Months Ended June 30, 2025 | $7,424 | 14.76% | | Six Months Ended June 30, 2024 | $4,444 | (20.13)% | - The effective tax rate differs from the U.S. statutory rate primarily due to a valuation allowance on deferred tax assets, as it is more likely than not that some or all will not be realized[155] - Lyft is assessing the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its financial statements[158] 12. Net Income (Loss) Per Share Attributable to Common Stockholders Lyft reported basic and diluted net income per share of $0.10 for both three and six months ended June 30, 2025, a significant improvement from the prior year Net Income (Loss) Per Share Attributable to Common Stockholders | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common stockholders, basic and diluted | $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) | - Potentially dilutive common stock equivalents, including RSUs, PSUs, and 2029 Notes, are excluded from diluted EPS when their effect is anti-dilutive[159][161] 13. Variable Interest Entities Lyft consolidates one bikes and scooters Variable Interest Entity (VIE) where it is the primary beneficiary, while other JVs are accounted for under the equity method - Lyft is the primary beneficiary of one bikes and scooters VIE (80% equity interest) and consolidates its assets, liabilities, revenues, and operating results[164] - Other bikes and scooters JVs and a privately held company investment are accounted for under the equity method, as Lyft does not direct their most significant economic activities[165][167] - The profits and losses of unconsolidated VIEs were not material to the condensed consolidated statements of operations for the three and six months ended June 30, 2025[165] 14. Subsequent Events Lyft acquired Intelligent Apps GmbH (Freenow), a European multi-mobility app, for approximately €204.1 million in cash on July 31, 2025, marking its first expansion outside North America - Lyft acquired Intelligent Apps GmbH (Freenow), a European multi-mobility app, on July 31, 2025[169] - The acquisition cost was approximately €204.1 million in cash, inclusive of closing adjustments[169] - This acquisition marks Lyft's first expansion outside of North America, beyond bikes and scooters[173] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Lyft's financial condition and operational results, highlighting improved revenue and profitability, key metrics, cash flow, liquidity, and strategic initiatives like the Freenow acquisition Our Business Lyft operates a global multi-mobility platform across four continents, with ridesharing as its primary revenue source, supplemented by various other transportation and business offerings - Lyft operates a global mobility platform offering diverse transportation options including rideshare, taxis, bikes, and scooters across four continents[171] - Substantially all revenue is generated from the ridesharing marketplace, with additional revenue from licensing, data access, bike/bike station sales, advertising, and Express Drive vehicle rentals[172] Recent Developments Lyft completed the acquisition of Intelligent Apps GmbH (Freenow) on July 31, 2025, for approximately €204.1 million, marking its first expansion into European multi-mobility - Lyft completed the acquisition of Intelligent Apps GmbH (Freenow) on July 31, 2025[173] - The acquisition, for approximately €204.1 million in cash, represents Lyft's first expansion outside of North America for its multi-mobility offerings[173] Financial and Operational Results for the Three Months Ended June 30, 2025 and 2024 Lyft achieved strong Q2 2025 growth, with revenue up 11% to $1.59 billion, net income surging 704% to $40.3 million, and Active Riders increasing 10% to 26.1 million Key Financial and Operational Results (Three Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | % Change | | :-------------------------------- | :----------------- | :----------------- | :------- | | Revenue | $1,588.2 | $1,435.8 | 11% | | Net income | $40.3 | $5.0 | 704% | | Active Riders | 26.1 | 23.7 | 10% | | Rides | 234.8 | 205.3 | 14% | | Gross Bookings | $4,490.1 | $4,018.9 | 12% | | Adjusted EBITDA | $129.4 | $102.9 | 26% | | Free cash flow | $329.4 | $256.4 | 28% | - Net income as a percentage of revenue increased from 0.3% in Q2 2024 to 2.5% in Q2 2025[174] - Adjusted EBITDA margin (as a percentage of Gross Bookings) improved from 2.6% to 2.9%[174] Definitions of Key Metrics Lyft defines Active Riders, Rides, and Gross Bookings as key metrics reflecting platform scale, usage, and financial performance, indicating improved marketplace health and engagement - Active Riders are unique riders who have taken at least one ride during the quarter, with the definition updated in Q1 2025 for simplification and better alignment with future business scaling[177][178] - Rides represent the total number of rides (rideshare, bike, scooter) completed on the platform that contribute to revenue, increasing due to improved marketplace health and ride frequency[180][181] - Gross Bookings is the total dollar value of transactions invoiced to rideshare riders (excluding tips) and other offerings, increasing due to Rides growth and improved marketplace health[183][184] Components of Results of Operations This section details Lyft's revenue components, primarily ridesharing, and expense categories including cost of revenue, operations and support, R&D, sales and marketing, and general and administrative - Revenue is primarily from ridesharing fees, Concierge platform fees, subscription fees, bike/bike station sales, licensing/data access, and advertising services, with rental revenue from Flexdrive and bikes/scooters[186][187] - Cost of revenue includes insurance, payment processing, hosting, personnel, depreciation, and Flexdrive-related costs (vehicle lease, remarketing)[189] - Operating expenses are broken down into Operations and support (local teams, fleet ops, background checks), Research and development (personnel, facilities), Sales and marketing (rider/driver incentives, advertising), and General and administrative (personnel, professional services, legal/tax accruals, insurance claims admin fees)[190][191][192][193] Results of Operations Lyft's revenue grew 11-12% to $1.59 billion (Q2) and $3.04 billion (H1), driven by increased Rides and Active Riders, while net income significantly improved despite rising cost of revenue Revenue (in thousands) | Period | 2025 | 2024 | % Change | | :-------------------------------- | :--------- | :--------- | :------- | | Three Months Ended June 30, | $1,588,183 | $1,435,846 | 11% | | Six Months Ended June 30, | $3,038,355 | $2,713,047 | 12% | - Revenue growth was primarily driven by a 14% increase in Rides and 10% in Active Riders for the three months, and a 15% increase in Rides for the six months, reflecting improved marketplace health[200][201] Cost of Revenue (in thousands) | Period | 2025 | 2024 | % Change | | :-------------------------------- | :--------- | :--------- | :------- | | Three Months Ended June 30, | $935,734 | $819,518 | 14% | | Six Months Ended June 30, | $1,798,608 | $1,574,880 | 14% | - Cost of revenue increased primarily due to higher insurance costs ($107.8 million for three months, $207.4 million for six months) and transaction fees, driven by increased ride volume and costs per mile[203][204] General and Administrative Expenses (in thousands) | Period | 2025 | 2024 | % Change | | :-------------------------------- | :--------- | :--------- | :------- | | Three Months Ended June 30, | $232,339 | $252,643 | (8)% | | Six Months Ended June 30, | $447,639 | $488,896 | (8)% | - General and administrative expenses decreased due to a net decrease in loss contingencies (legal and tax accruals) and lower stock-based compensation, partially offset by increased accruals for self-retained general business liabilities and consulting costs[212][213] Net Income (Loss) (in thousands) | Period | 2025 | 2024 | % Change | | :-------------------------------- | :--------- | :--------- | :------- | | Three Months Ended June 30, | $40,314 | $5,014 | 704% | | Six Months Ended June 30, | $42,881 | $(26,521) | 262% | Non-GAAP Financial Measures Lyft utilizes non-GAAP measures like Adjusted EBITDA, which increased 45% to $235.9 million for H1 2025, and Free Cash Flow, which rose 59% to $610.2 million, to assess performance and liquidity Key Non-GAAP Financial Measures (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross Bookings | $4,490.1 | $4,018.9 | $8,652.5 | $7,712.1 | | Adjusted EBITDA | $129.4 | $102.9 | $235.9 | $162.3 | | Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) | 2.9% | 2.6% | 2.7% | 2.1% | | Free cash flow | $329.4 | $256.4 | $610.2 | $383.5 | - Adjusted EBITDA is calculated as net income (loss) adjusted for interest expense, other income (net), provision for income taxes, depreciation and amortization, stock-based compensation, payroll tax expense, sublease income, and costs related to acquisitions/divestitures[224][225] - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment and scooter fleet[230] Cash Flows Lyft's operating cash flow increased to $631.0 million, investing activities provided $496.3 million, and financing activities used $699.3 million for H1 2025 Summary of Cash Flows (in thousands) | Cash Flow Activity | 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 change in cash, cash equivalents and restricted cash and cash equivalents | $429,072 | $47,838 | - Operating cash flows increased by $198.6 million YoY, driven by net income improvement and changes in working capital, including a rise in insurance reserves[239] - Investing activities shifted to a net cash inflow, primarily from $2.1 billion in proceeds from sales and maturities of marketable securities, partially offset by $1.6 billion in purchases[241] - Financing cash outflows were significantly higher due to the $390.7 million repayment of 2025 Notes and $200.0 million in Class A common stock repurchases[243] Liquidity and Capital Resources Lyft held $1.8 billion in unrestricted liquidity, including $913.8 million cash and $878.3 million short-term investments, plus an undrawn $420.0 million credit facility, after settling $390.7 million in notes and repurchasing $200.0 million in stock Liquidity Position (in millions) | Metric | June 30, 2025 | | :-------------------------------- | :------------ | | Cash and cash equivalents | $913.8 | | Short-term investments | $878.3 | | Restricted cash and cash equivalents and restricted investments | $1,700.0 | | Revolving Credit Facility (undrawn) | $420.0 | - Lyft fully settled $390.7 million of 2025 Notes at maturity in Q2 2025[250] - The board authorized a total share repurchase program of up to $750.0 million, with $200.0 million executed by June 30, 2025, and $550.0 million remaining[252] Contractual Obligations and Commitments No material changes to contractual obligations and commitments have occurred since the 2024 Annual Report on Form 10-K - No material changes to contractual obligations and commitments since the Annual Report on Form 10-K for the year ended December 31, 2024[254] Critical Accounting Estimates Lyft's critical accounting estimates, involving significant management judgment, remain unchanged from its 2024 Annual Report on Form 10-K - No material changes to critical accounting estimates since the Annual Report on Form 10-K for the year ended December 31, 2024[256] Recent Accounting Pronouncements Details on recently issued accounting pronouncements not yet adopted are provided in Note 2 to the condensed consolidated financial statements - Refer to Note 2 for details on recently issued accounting pronouncements not yet adopted[257] Item 3. Quantitative and Qualitative Disclosures About Market Risk Lyft faces market risks from interest rate and foreign currency fluctuations, but a hypothetical 100 basis points interest rate change or 10% currency change would not materially impact financials - Lyft's primary market risks are interest rate and foreign currency exchange fluctuations, which have not been significant[258] - A hypothetical 100 basis points change in interest rates would not materially impact financial condition or results of operations[260] - A hypothetical 10% change in foreign currency exchange rates would not materially impact condensed consolidated financial statements[261] Item 4. Controls and Procedures Lyft's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[262] - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[263] - Control systems have inherent limitations, providing only reasonable assurance, and may not prevent all errors or fraud[264] PART II - OTHER INFORMATION Item 1. Legal Proceedings This section refers to Note 8 of the condensed consolidated financial statements for detailed information on Lyft's legal proceedings and regulatory investigations - For information on legal proceedings, refer to Note 8 to the condensed consolidated financial statements in Part I, Item 1[266] Item 1A. Risk Factors This section outlines significant risks to Lyft's business, including operational, economic, regulatory, legal, financing, and governance factors, which could materially impact financial results Risk Factor Summary Lyft faces numerous risks, including operational challenges, intense competition, regulatory and legal uncertainties, financing risks, and governance issues like its dual-class stock structure - Operational risks include limited operating history, inability to maintain profitability, intense competition, unpredictability of results, and challenges in attracting/retaining drivers and riders[268] - Regulatory and legal risks encompass evolving laws, driver classification challenges, intellectual property litigation, privacy regulations, and the costs of operating as a public company[269][271] - Financing and transactional risks involve future capital requirements, debt servicing, and the ability to successfully integrate acquisitions[270][271] - Governance risks include the dual-class common stock structure concentrating voting power with Co-Founders and potential stock price volatility[274] Risks Related to Operational Factors Operational risks include limited operating history, profitability challenges, intense competition, driver/rider retention, insurance management, brand protection, new offering development, platform security, and reliance on third-party providers - Lyft's evolving business and limited operating history make future prospects and risk assessment difficult, requiring continuous adaptation in pricing, platform features, and cost structure[272][273] - The company may not achieve or maintain profitability due to increasing expenses from new offerings, fluctuating costs (insurance, driver pay), and potential adverse outcomes from driver classification litigation[277][278] - Intense competition from Uber and other mobility providers, coupled with the need to attract and retain drivers and riders through incentives and competitive pricing, poses a significant risk to market share and financial results[280][289][291] - Risks related to insurance include insufficient coverage, potential insolvency of providers, and actual losses exceeding reserves, exacerbated by rising costs in the automotive insurance industry[293][295][297][299] - Reputation and brand are vulnerable to negative publicity, illegal activities by users, and failures in user support or fraud detection, which could deter platform usage[302][304][363][364] - Challenges in developing and implementing autonomous vehicle technology, managing the supply chain for bikes/scooters, and ensuring platform interoperability with third-party services could adversely affect business growth and financial performance[316][319][320][379] - The use of AI and machine learning introduces risks related to algorithm flaws, biased data, and an evolving regulatory environment, potentially leading to discriminatory outcomes or legal liabilities[355] Risks Related to General Economic Factors Lyft's business is highly susceptible to macroeconomic downturns, inflation, and increased costs, alongside disruptions from natural disasters, public health crises, and political instability - Deteriorating macroeconomic conditions (recession, inflation, high interest rates, increased fuel/vehicle costs) are likely to decrease discretionary spending and reduce demand for Lyft's platform[390] - Inflation has increased medical and vehicle repair costs, leading to higher insurance costs for Lyft and increased costs for drivers[390] - Natural disasters, public health crises (like pandemics), and political crises (such as war) can disrupt operations, cause driver supply/rider demand imbalances, decrease demand, and increase costs[391][392] Risks Related to Regulatory and Legal Factors Lyft navigates a complex regulatory landscape, facing risks from evolving laws on worker classification, privacy, and taxes, alongside intellectual property claims and the costs of public company operation - Lyft is subject to a wide range of evolving laws and regulations across federal, state, and municipal levels, covering TNCs, worker classification, labor, payments, privacy, and more, with non-compliance posing significant risks[393][394] - Challenges to driver classification as independent contractors, including ongoing lawsuits and administrative audits (e.g., NLRB, U.S. Department of Labor, California PAGA), could lead to monetary exposure, injunctions, claims for employee benefits, and require significant business model alterations[400][401][402][403] - Claims of intellectual property infringement by third parties, or failure to protect its own IP, could result in substantial damages, injunctions, costly litigation, and diversion of management attention[404][407] - Compliance with privacy and data protection laws (CCPA, CPRA, HIPAA, GDPR) is costly and complex, with potential for significant fines, litigation, and reputational harm from actual or perceived breaches[410][411][413][415] - Operating as a public company incurs substantial legal, accounting, and compliance costs, demanding significant management attention and exposing the company to stockholder activism and increased scrutiny[436][437][438] - Changes in U.S. and foreign tax laws (e.g., Inflation Reduction Act's excise tax, OECD Pillar Two) and challenges from taxing authorities regarding indirect taxes (e.g., San Francisco gross receipts tax) could materially impact financial results[429][430][431][433] - Emerging climate-related regulations (e.g., California's Clean Miles Standard, SB 253/261/219) impose EV and greenhouse gas requirements, increasing compliance costs and potentially impacting operations and reputation[439][440] Risks Related to Financing and Transactional Factors Lyft faces financing risks from potential capital needs, acquisition integration, substantial debt servicing, restrictive covenants, and counterparty risk from capped call transactions - Lyft may require additional capital for growth and operations, but financing may not be available on acceptable terms, potentially leading to equity dilution or increased fixed debt obligations[441][442][443] - Acquisitions and investments (e.g., Freenow) involve risks such as integration difficulties, failure to realize anticipated benefits, diversion of resources, and unidentified liabilities[444][445] - Servicing current and future debt ($573.2 million outstanding as of June 30, 2025) requires significant cash flow, and restrictive covenants in debt agreements could limit operational flexibility[449][450][453][455] - Lyft is exposed to counterparty risk with respect to its 2029 Capped Calls, as a default by an option counterparty could lead to adverse tax consequences and increased stock dilution[457][458] - The ability to use net operating loss (NOL) carryforwards ($7.2 billion federal, $6.2 billion state as of Dec 31, 2024) may be limited by ownership changes (Section 382) or state legislation, potentially impacting future taxable income offsets[459][460] Risks Related to Governance and Ownership of our Capital Stock Factors Lyft's dual-class stock structure concentrates voting power with Co-Founders, leading to potential stock price volatility and limiting stockholder influence, further impacted by anti-takeover provisions - The dual-class common stock structure (Class B: 20 votes/share, Class A: 1 vote/share) concentrates voting power with Co-Founders, allowing them to significantly influence stockholder-approved matters[461] - The trading price of Class A common stock may be volatile due to market fluctuations, company performance, analyst coverage, competitive announcements, litigation, and macroeconomic conditions[463] - Delaware law and company bylaws include anti-takeover provisions (e.g., classified board, no written consent, undesignated preferred stock) that could discourage or delay changes in control[466][469] - Exclusive forum provisions in bylaws designate Delaware courts for internal corporate disputes and federal district courts for Securities Act claims, potentially limiting stockholders' choice of judicial forum[468][470] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Lyft repurchased 12.8 million shares of Class A common stock for $200.0 million under its $750.0 million share repurchase program, with $550.0 million remaining Share Repurchase Activity (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (in thousands) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in thousands) | | :---------------- | :-------------------------------------------- | :--------------------------- | :---------------------------------------------------------------------------------- | :------------------------------------------------------------------------------------------ | | April 1 - 30, 2025 | — | $— | — | $500,000 | | May 1 -31, 2025 | 4,771 | $16.23 | 4,771 | $672,583 | | June 1 -30, 2025 | 8,002 | $15.32 | 8,002 | $550,000 | | Total | 12,773 | | 12,773 | | - The board authorized an increase to the share repurchase program, totaling $750.0 million, with $550.0 million remaining as of June 30, 2025[473] Item 3. Defaults Upon Senior Securities This item is not applicable to Lyft for the current reporting period - This item is not applicable[474] Item 4. Mine Safety Disclosures This item is not applicable to Lyft for the current reporting period - This item is not applicable[475] Item 5. Other Information This section discloses Rule 10b5-1 trading arrangements adopted by Lyft's CFO, CLO, and Co-Founders for selling Class A common stock - CFO Erin Brewer adopted a Rule 10b5-1 plan to sell up to 30,000 shares of Class A common stock from RSU vesting, effective until June 1, 2026[476] - CLO Lindsay Llewellyn adopted a Rule 10b5-1 plan to sell up to 304,887 shares from RSU vesting, 225,646 shares from PSU vesting, and additional RSU shares, effective until August 31, 2026[477] - Co-Founders Logan Green and John Zimmer adopted Rule 10b5-1 plans to sell Class A common stock, including shares from RSU vesting and Class B stock conversion, with plans effective until June 1, 2026, and September 29, 2026, respectively[478][479][480] Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including certifications from executive officers and XBRL interactive data files - Exhibit 31.1 and 31.2 are certifications of the Principal Executive Officer and Principal Financial Officer, respectively, pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a)[485] - Exhibit 32.1 contains certifications of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, furnished but not filed[484][485] - XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, and Label Linkbase Documents are included as Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, and 101.LAB, respectively[485] Signatures Report Signatures The Quarterly Report on Form 10-Q was signed on August 6, 2025, by CEO John David Risher and CFO Erin Brewer on behalf of Lyft, Inc - The report was signed on August 6, 2025[488][489] - Signatories include John David Risher, Chief Executive Officer, and Erin Brewer, Chief Financial Officer[488][489]