Lyft (LYFT) Up 6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Lyft's recent earnings report showed mixed results, with both earnings and revenues missing consensus estimates, but the stock has seen a 6% increase in the past month, outperforming the S&P 500 [1][2]. Financial Performance - In Q3 2025, Lyft reported earnings per share of 26 cents, which was below the Zacks Consensus Estimate of 30 cents, and represented a 10.3% decline year-over-year [2]. - Revenues for the quarter were $1.68 billion, missing the consensus estimate of $1.70 billion, but reflecting an 11% increase compared to the previous year [2]. - Gross bookings reached $4.78 billion, marking a 16% year-over-year increase, while rides growth surged 15% to 248.8 million, achieving double-digit growth for the tenth consecutive quarter [3]. - Active riders grew by 18% year-over-year to 28.7 million [3]. - Adjusted EBITDA for Q3 was $138.9 million, up 29% from the previous year, with an adjusted EBITDA margin of 2.9%, compared to 2.6% in the prior-year quarter [4]. Cash Position and Debt - At the end of Q3, Lyft had cash and cash equivalents of $1.31 billion, an increase from $913.84 million at the end of the previous quarter [5]. - Long-term debt rose to $1.01 billion from $526.53 million in the prior quarter [5]. Q4 2025 Guidance - For Q4 2025, Lyft expects year-over-year rides growth in the mid-to-high teens and gross bookings to grow by 17-20%, reaching between $5.01 billion and $5.13 billion [6]. - Adjusted EBITDA is projected to be between $135 million and $155 million, with an adjusted EBITDA margin expected to be in the range of 2.7%-3% [7]. Market Sentiment and Estimates - There has been a 10% upward shift in consensus estimates over the past month, indicating positive sentiment among investors [8]. - Lyft currently holds a strong Growth Score of A, but has a low Momentum Score of F, with an overall VGM Score of A [9]. - The stock has a Zacks Rank of 2 (Buy), suggesting expectations for above-average returns in the coming months [10]. Industry Comparison - Lyft operates within the Zacks Internet - Services industry, where Shopify has seen a 4% gain over the past month, reporting revenues of $2.84 billion, a 31.5% year-over-year increase [11]. - Shopify's earnings per share for the current quarter are expected to be $0.50, reflecting a 13.6% change from the previous year, with a Zacks Rank of 3 (Hold) [12].