Lyft shares fall 4%; Q3 revenue misses estimates
Lyft reported Q3 revenue of $1.82 billion, below the $1.96 billion consensus estimate, and guided fourth-quarter Gross Bookings to $5.74 billion to $5.94 billion.
Key takeaways
- Lyft (LYFT) reported third-quarter revenue of $1.82 billion, below the $1.96 billion consensus estimate, and a net loss of $9.7 million. It guided fourth-quarter gross bookings to $5.74 billion to $5.94 billion, up 13% to 17% year over year. Shares fell 4.4%.
Lyft (LYFT) missed the $1.96 billion consensus estimate for third-quarter revenue, which came in at $1.82 billion, and posted a net loss of $9.7 million.
Shares fell 4.4% at 3:59 p.m. ET, from a $17.84 close.
Here's how the company did:
- Revenue: $1.82 billion vs. $1.96 billion expected, up from $1.69 billion a year earlier
- Net loss: $9.7 million vs. net income of $46.1 million a year earlier
- Net loss per diluted share: a loss of 3 cents vs. 11 cents of earnings a year earlier
- Adjusted EBITDA: $203.9 million vs. $138.9 million a year earlier
- Free cash flow: $294.7 million vs. $277.8 million a year earlier
Gross Bookings were $5.6 billion, up 17% year over year. Rides rose 10% to 273.5 million, and Active Riders rose 10% to 31.6 million, the eighth straight quarter of double-digit growth.
The results include a $117.9 million impact from legal, tax and regulatory reserve changes and settlements, $69.1 million of it a reduction to revenue. Excluding that, revenue was $1.9 billion.
Rides growth accelerated sequentially in North America, with gains in both the U.S. and Canada. "Our AV partnerships are preparing us to be the best hybrid operator in the business," CEO David Risher said.
Fourth-quarter outlook
Lyft expects fourth-quarter Gross Bookings of $5.74 billion to $5.94 billion, up 13% to 17% year over year.
It also expects adjusted EBITDA of $188 million to $213 million, up 22% to 38%, at a margin of 3.3% to 3.6% of Gross Bookings.
Its Aug. 6 forecast for third-quarter Gross Bookings was $5.50 billion to $5.67 billion, up 15% to 19% year over year.
Cash and buybacks
Operating cash flow was $328.4 million, up from $291.3 million a year earlier.
For the trailing twelve months, operating cash flow was $1.2 billion and free cash flow was $1.1 billion.
Through the first nine months, Lyft repurchased $450 million of Class A common stock, compared with $400 million a year earlier.
Product launches
Lyft Go launched in the U.S., with members earning up to 8% back in Lyft Credits on every ride. Alcove, a premium chauffeuring brand for corporate travel, launches in early 2027.
Since September, Lyft has been matching riders to fully autonomous Waymo vehicles on the Lyft app in Nashville.