Fifteen percent may seem like an insignificant number, but in the stadium of stocks, it is huge.
The stocks of Lyft plummeted 15 percent on Tuesday’s extended trading after the ridesharing app posted fourth-quarter results, which ridesharing media tagged “disappointing.”
Here’s how Lyft did versus estimates from financial institutions and analysts: earnings per share are not comparable, revenue is at $1.59 billion versus $1.76 billion target, and revenue growth was three percent from a year ago.
Furthermore, while bookings grew 19 percent year-over-year to $5.07 billion, which was in line with Wall Street estimates – and net income was about $2.76 billion, or $6.72 per share, the company told Ridesharing Forum it is expecting more.
Lyft stated it expects adjusted earnings prior to interest, taxes, depreciation, and amortization, which is an indicator and a measure of profitability, to go between $120 million and $140 million in the current quarter. Financial analysts are also shocked, since they expected $139.8 million for the incumbent period.
Revenue grew 3% from a year ago. Bookings grew 19% year over year to $5.07 billion, which was in line with Wall Street estimates. Net income totaled about $2.76 billion, or $6.72 per share.
The company said it expects adjusted earnings before interest, taxes, depreciation and amortization, a measure of profitability, to range between $120 million and $140 million in the current quarter. Analysts expected $139.8 million for the current period.
“While we expect this to drive increased demand over time, broad-based consumer adoption will take time to materialize, and we now anticipate this being back-half weighted,” Lyft said in their official statement.
Lyft is blaming what has happened to recent legislation, such as cutting insurance costs in California, leading to lower ridesharing prices, which are bad for business.
Also, Lyft posted bleak ride metrics for the fourth quarter of 2025.
Yet, active riders totaled almost 30 million during that period, different from the target of 29.5 million by real-time equity market intelligence companies for institutional investors
Rides totaled 243.5 million, falling short of experts’ estimates of 256.6 million.
Meanwhile, the company’s board has approved up to $1 billion in additional share buybacks. Will this mend the shortcomings?
Lyft is a ridesharing app mainly in the USA that connects passengers with nearby drivers through a mobile app. Established in 2012, it operates in hundreds of cities across the United States and Canada, offering services such as standard rides, priority pickups, shared rides where available, luxury options, and scheduled trips.
Passengers enter their destination, view fare estimates, choose a ride type, and confirm pickup. Lyft matches them with a driver, provides real-time tracking, and processes cashless payments. Drivers use their own vehicles, earn through fares and tips, and work flexible hours based on availability and demand. To get access to more ridesharing news, feel free to share this story around online with your family and friends. Create that account today to join the discussion, too.