Lyft (LYFT) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with all-time highs in gross bookings ($4.5 billion), adjusted EBITDA ($129.4 million), free cash flow ($993 million TTM), active riders (26.1 million), and rides (234.8 million), driven by operational excellence, strong partnerships, and the completed Freenow acquisition expanding into Europe.

• Repurchased $200 million in stock, reducing share count for the first time in company history; 12.8 million shares repurchased in Q2 2025.

• Closed the Freenow acquisition for €204.1 million, expanding into nine European markets, nearly doubling total addressable market, and enabling cross-platform roaming.

• Partnerships with major brands (United, Chase, DoorDash, Alaska, Bilt, Hilton, Baidu, BENTELER Mobility) are driving growth, with over 50 million rides in Q2 2025 linked to partners (+25% YoY).

• Net income surged to $40.3 million in Q2 2025, up from $5.0 million in Q2 2024, reflecting improved cost discipline and marketplace health.

Financial highlights

• Q2 2025 gross bookings reached $4.5 billion (+12% YoY); revenue was $1.59 billion (+11% YoY); net income was $40.3 million; adjusted EBITDA was $129.4 million (+26% YoY, 2.9% margin); free cash flow for Q2 was $329.4 million, with TTM FCF at $993 million.

• Active riders up 10% YoY to 26.1 million; rides up 14% YoY to 234.8 million, both all-time highs.

• Net income margin improved to 0.9% of gross bookings; adjusted EBITDA margin rose to 2.9% of gross bookings.

• Marketplace incentives per ride decreased to $1.03, reflecting efficiency improvements.

Outlook and guidance

• Q3 2025 guidance: gross bookings of $4.65–$4.80 billion (+13–17% YoY), adjusted EBITDA of $125–$145 million (margin 2.7–3.0%), and mid-teens rides growth, with two months of Freenow contribution.

• Pricing expected to remain roughly flat sequentially and up YoY; Freenow expected to be EBITDA neutral for the remainder of 2025.

• Management expects continued revenue growth driven by ride volume, driver supply, pricing, and incentives.

• Plans to utilize $500 million of $750 million share repurchase authorization by mid-2026.

• AV partnerships and European expansion expected to drive long-term growth.