Core Insights - Lyft Inc. reported a fourth-quarter revenue of $1.59 billion, missing analysts' expectations of $1.75 billion, while adjusted earnings per share were 15 cents, exceeding the consensus of 12 cents [1] - Gross bookings increased by 19% to $5.1 billion, and the active rider base grew by 18% to 29.2 million [1] - The board approved a $1 billion stock repurchase program to enhance shareholder value [1] Financial Performance - Lyft's fourth-quarter performance was characterized by a revenue miss despite strong bookings growth, with total rides growth falling below market forecasts [4] - The company shifted its strategy to prioritize more profitable trips, which improved its implied take rate and adjusted EBITDA slightly above consensus, but net revenue was still below estimates due to a one-time charge [5] - For Q1 2026, Lyft projects gross bookings between $4.86 billion and $5.00 billion, indicating a year-over-year growth of 17% to 20% [2] Analyst Perspectives - Analysts from Wedbush and Cantor Fitzgerald lowered their price forecasts for Lyft, with Wedbush reducing it from $16 to $13 and Cantor Fitzgerald from $21 to $14 [3][9] - Concerns were raised about Lyft's slowing ride growth, which decelerated to 11% in Q4, attributed to increased competition and a strategic focus on higher-margin offerings [8] - Analysts expressed caution regarding Lyft's ability to meet its long-term financial targets, particularly in light of a challenging competitive landscape and the potential impact of autonomous vehicles [7][11] Future Outlook - Lyft anticipates that gross bookings growth will outpace rides growth in the first half of 2026, supported by product launches and partnerships [10] - The company reaffirmed its long-term target of achieving $25 billion in bookings and $1 billion in adjusted EBITDA by 2027, requiring a 16% compound annual growth rate from 2025 levels [11][12] - Analysts noted that achieving these targets would necessitate significant margin expansion and questioned Lyft's ability to sustain high growth rates without further mergers and acquisitions [12]