Lyft Inc. reported first quarter 2025 financial results that surpassed analyst expectations, showing significant operational growth and a return to profitability. The company also expanded its share buyback program, reinforcing management’s confidence in its direction.
Q1 2025 Financial Results
Lyft posted revenue of $1.5 billion for the first quarter of 2025, a 14% increase from the same period last year and marginally ahead of analyst estimates. Net income reached $2.6 million, a turnaround from the $31.5 million net loss recorded in Q1 2024. Earnings per share were $0.01, beating expectations of a $0.01 loss. Adjusted EBITDA surged to $106.5 million, with a margin of 2.6%. Free cash flow nearly doubled year-over-year to $280.7 million.[5]
Operational Metrics Reach New Highs
Lyft achieved record levels of business activity during the quarter. The company provided 218.4 million rides, up 16% year-over-year. Its active rider base grew 11% to 24.2 million, both representing the highest quarterly figures in Lyft’s history. Gross bookings also expanded to $4.2 billion, an increase of 13% year-over-year.[1][5]
Share Repurchase Program Expanded
In a move to boost shareholder value, Lyft raised its share repurchase authorization to $750 million. The company indicated plans to utilize $500 million of this authorization within the next twelve months.[5]
Sustained Profitability and Efficiency
This marks Lyft’s return to profitability after a loss-making first quarter the previous year and follows continued operational optimization. Adjusted EBITDA margins have remained at 2.6% for four consecutive quarters, indicating consistent efficiency gains.[1][5]
Analysis
Lyft’s performance in the first quarter demonstrates clear operational and financial improvement, reversing previous losses while delivering faster growth in riders and ride volume. The company’s ability to increase adjusted EBITDA and free cash flow, while maintaining stable margins, suggests that efforts to streamline operations are gaining traction. The expanded and accelerated share buyback signals management’s confidence in Lyft’s stability and future prospects. However, the ride-sharing sector remains competitive, and Lyft’s margins, while improved, remain modest compared to other technology sectors.
Outlook
Looking ahead, Lyft’s positive momentum will likely depend on sustaining its active rider and ride growth amidst competition from other ride-hailing firms. The company’s increased liquidity and share repurchase activity may support its stock price in the near term. Analysts and investors will likely monitor whether Lyft can maintain profitability and operational efficiency while pursuing further growth in North America.
