Lyft Stock Drops After Q2 Results: Here's Why

Core Insights - Lyft reported a quarterly earnings of 10 cents per share, surpassing the analyst consensus estimate of 4 cents [1] - Quarterly revenue was $1.58 billion, slightly below the Street estimate of $1.61 billion [1] Financial Performance - Record gross bookings reached $4.5 billion, reflecting a 12% year-over-year increase [5] - Revenue increased by 11% year-over-year to $1.6 billion [5] - Net income for the quarter was $40.3 million, a significant rise from $5 million in Q2'24 [5] - Net income as a percentage of gross bookings improved to 0.9% from 0.1% in Q2'24 [5] - Adjusted EBITDA reached a record $129.4 million, up 26% year-over-year compared to $102.9 million in Q2'24 [5] Strategic Outlook - For Q3, Lyft anticipates rides growth in the mid-teens year-over-year and gross bookings between $4.65 billion and $4.8 billion [4] - CEO David Risher emphasized the company's strong performance and expanding total addressable market (TAM) with partnerships, including those with Baidu and United Airlines [3]