Lyft (LYFT) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 results with all-time highs in active riders, gross bookings, adjusted EBITDA, revenue, and free cash flow for the trailing twelve months, reflecting strong execution and global expansion across six continents.

• Net income reached $46.1 million, a turnaround from a $12.4 million loss in Q3 2024, with improved cost discipline and operational leverage.

• Growth was driven by expansion into new geographies, underpenetrated markets, and strategic partnerships, including United Airlines and AV collaborations.

• Completed acquisitions of Freenow and TBR Global Chauffeuring, expanding global reach and high-value service offerings.

• Strengthened high-value offerings through new business and loyalty programs, and launched AV pilot programs.

Financial highlights

• Q3 gross bookings reached $4.78 billion, up 16% year-over-year, with revenue of $1.69 billion (+11%), and adjusted EBITDA of $139 million (+29%), all at record levels.

• Active riders totaled 28.7 million (+18% YoY), rides reached 248.8 million (+15% YoY), and high-value mode rides grew over 50% YoY.

• Free cash flow for the trailing twelve months surpassed $1.03 billion, with Q3 free cash flow at $277.8 million.

• Net income margin improved to 1.0% of gross bookings and 2.7% of revenue.

• Adjusted EBITDA margin was 2.9% of gross bookings, up from 2.6% in Q3 2024.

Outlook and guidance

• Q4 guidance: rides growth in the mid- to high-teens percent, gross bookings projected at $5.01–$5.13 billion (+17–20% YoY), and adjusted EBITDA of $135–$155 million (margin 2.7–3.0%).

• On track to exceed annual topline and margin expansion targets for FY 2025, with $500M in share repurchases expected to complete ahead of schedule.

• Free cash flow conversion from adjusted EBITDA projected at 150–175% for 2026–2027.

• Management expects continued revenue growth from international expansion and improved marketplace health.

• Insurance costs expected to rise mid-single digits per ride in Q4, but regulatory reforms in California are anticipated to reduce costs in 2026.