Lyft Stock Price Increases 15.3% Since Q3 Earnings Release

Core Insights - Lyft, Inc. shares have increased by 15.3% since the release of its third-quarter 2025 earnings on November 5, 2025, despite reporting disappointing results with earnings and revenues falling short of estimates [1] Financial Performance - Lyft's third-quarter 2025 earnings per share were 26 cents, missing the Zacks Consensus Estimate of 30 cents, and representing a 10.3% decline year-over-year [1] - Revenues for the quarter were $1.68 billion, below the Zacks Consensus Estimate of $1.70 billion, but showed an 11% increase compared to the previous year [1] - Gross bookings reached $4.78 billion, reflecting a 16% year-over-year increase [2] - Rides grew by 15% year-over-year, totaling 248.8 million, marking the tenth consecutive quarter of double-digit growth [2] - Active Riders increased by 18% year-over-year to 28.7 million [2] - Adjusted EBITDA for the third quarter was $138.9 million, a 29% increase from the previous year, with an adjusted EBITDA margin of 2.9% compared to 2.6% in the prior-year quarter [3] Balance Sheet - At the end of the third quarter, Lyft had cash and cash equivalents of $1.31 billion, up from $913.84 million at the end of the previous quarter [4] - Long-term debt, net of the current portion, was $1.01 billion, an increase from $526.53 million at the end of the prior quarter [4] Q4 2025 Guidance - For the fourth quarter of 2025, Lyft expects mid-to-high teens growth in rides, driven by strong service levels and increased engagement [5] - Gross bookings are projected to grow by 17-20% year-over-year, reaching between $5.01 billion and $5.13 billion [5] - Adjusted EBITDA is anticipated to be between $135 million and $155 million, with an adjusted EBITDA margin projected to be in the range of 2.7%-3% [6] Industry Comparison - In contrast, Uber Technologies reported strong third-quarter 2025 results, with earnings per share of $3.11, significantly surpassing estimates and showing over 100% year-over-year improvement [7] - Uber's total revenues were $13.46 billion, exceeding estimates and reflecting a 20.4% year-over-year increase [8]