Lyft (LYFT) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 results in gross bookings ($4.2B, +13% YoY), revenue ($1.45B, +14% YoY), rides (218.4M, +16% YoY), and active riders (24.2M, +11% YoY), with net income of $2.6M, marking a return to profitability.

• Product innovation, including Lyft Silver for older adults and the pilot of Earnings Assistant AI for drivers, drove engagement and loyalty.

• Strategic international expansion with the planned acquisition of FREENOW for ~€175 million, nearly doubling the addressable market and adding ~€1B in annual gross bookings.

• Increased share repurchase program authorization to $750M, with $500M to be deployed in the next 12 months.

• Partnerships and geographic expansion, especially in Canada and Europe, are fueling momentum and diversifying revenue streams.

Financial highlights

• Adjusted EBITDA reached $106.5M, up 79% year-over-year, with a margin of 2.6% of gross bookings.

• Free cash flow for the trailing twelve months hit a record $920M, more than doubling year-over-year.

• Net cash from operating activities was $287.2M in Q1'25; cash and equivalents plus short-term investments totaled $2.2B.

• Net income margin improved to 0.1%–0.2% of gross bookings/revenue, up from negative in the prior year.

• Canadian rides grew over 50% year-over-year; strong growth in underpenetrated U.S. markets like Indianapolis (37% ride growth).

Outlook and guidance

• Q2 2025 gross bookings projected at $4.41B–$4.57B, up 10–14% year-over-year; rides growth expected in the mid-teens percent.

• Q2 adjusted EBITDA guidance is $115M–$130M, with margin of 2.6%–2.8%.

• Management expects continued revenue growth, supported by ride volume, driver supply, pricing, and incentives, but notes insurance costs and seasonality may impact near-term results.

• Plans to utilize $500M of the $750M share repurchase authorization within the next twelve months.

• Long-term targets include 15% CAGR and $25B in gross bookings by 2027.