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Lyft Shares Slide on Soft Outlook After Mixed Quarter and $1 Billion Buyback

Investors fixated on softer first‑quarter guidance—linked to storm disruption, reserve charges—over record margins.

Overview

  • Lyft guided Q1 2026 adjusted EBITDA to $120 million–$140 million and gross bookings to $4.86 billion–$5.00 billion, citing Winter Storm Fern and competitive promotions for the weaker outlook.
  • Q4 2025 delivered record adjusted EBITDA of $154.1 million and 19% gross bookings growth to $5.07 billion, but revenue of $1.59 billion missed after a $168 million legal, tax and regulatory reserve impact.
  • Shares fell roughly 13%–16% following the report and guidance, as investors weighed softer near‑term demand signals against operating progress.
  • The board authorized up to $1 billion in additional share repurchases, a sum equal to about 15% of Lyft’s market value and on top of a prior $750 million program.
  • Despite reporting a 2025 operating loss of $188.4 million, Lyft highlighted $1.12 billion in free cash flow and reiterated longer‑term priorities including international expansion, partnership‑driven demand, higher‑value ride modes, advertising and AV deployments with partners like Waymo and Baidu.