Overview
- Shares fell roughly 13% to 16% in extended trading after Lyft projected first‑quarter adjusted EBITDA of $120 million to $140 million and gross bookings of $4.86 billion to $5.0 billion, below or roughly in line with expectations.
- Fourth‑quarter revenue came in at $1.59 billion versus about $1.76 billion expected, reflecting a $168 million hit from legal, tax and regulatory reserve changes, while gross bookings rose 19% to $5.07 billion.
- Adjusted core earnings for the quarter were $154.1 million, beating estimates, but Lyft reported a full‑year 2025 operating loss of $188.4 million.
- Management pointed to Winter Storm Fern and an uptick in competitors’ price promotions as near‑term headwinds to demand and profitability.
- The board authorized up to $1 billion in share repurchases, roughly 15% of market value and in addition to a prior $750 million plan, as the company highlights strong 2025 free cash flow of $1.12 billion and long‑term bets on autonomous vehicles and international expansion.