Lyft, Inc. (NASDAQ: LYFT) delivered record operational and financial results in the fourth quarter of 2025, with total revenue reaching $1.6 billion — up 3% year-over-year — as the company navigated a competitive rideshare market. The quarter marked consecutive periods of GAAP profitability, a milestone that has shifted investor focus toward Lyft’s long-term margin potential.
Q4 2025 Financial Highlights: Revenue, Rides, and Margins
For the quarter ended December 31, 2025, Lyft reported total revenue of $1.6 billion, up 3% from $1.55 billion in Q4 2024, driven by a 11% increase in total rides to 243.5 million and an 18% rise in active riders to 29.2 million.
On the bottom line, GAAP net income was $2.8 billion, up from $61.7 million in Q4 2024. Diluted GAAP earnings per share (EPS) came in at $6.72, compared to $0.15 in the prior-year quarter. Adjusted EBITDA reached $154.1 million, with an adjusted EBITDA margin of approximately 3% of gross bookings.
Free cash flow stood at $1.12 billion at the end of fiscal year 2025. The company announced a new $1 billion share repurchase program.
Metric
Q4 2025
Q4 2024
% Change
Revenue
$1.59B
$1.55B
+3%
Total Rides
243.5M
218.5M
+11%
Active Riders
29.2M
24.7M
+18%
Net Income (GAAP)
$2.8B
$61.7M
>100%
Diluted EPS (GAAP)
$6.72
$0.15
>100%
Guidance
For Q1 2026, Lyft guided for gross bookings of $4.86 billion to $5.00 billion, representing 17% to 20% year-over-year growth. Adjusted EBITDA is expected in the range of approximately $120 million to $140 million, with an adjusted EBITDA margin of approximately 2.5% to 2.8% of gross bookings.
Competitive Landscape: Lyft vs. Uber in 2025
Lyft’s Q4 results must be viewed against Uber Technologies, Inc. (NYSE: UBER), which reported Q4 2025 revenue of $14.4 billion, up 20% year-over-year. Uber posted GAAP net income of $296 million and diluted GAAP EPS of $0.14, with free cash flow of $2.8 billion for the quarter.
Metric
Uber (Q4 2025)
Lyft (Q4 2025)
Revenue
$14.4B
$1.6B
Revenue Growth YoY
+20%
+3%
Net Income (GAAP)
$296M
$2.8B
Diluted EPS (GAAP)
$0.14
$6.72
Key Signals for Investors
Sustained free cash flow improvement and a new share repurchase program indicate management is prioritizing capital returns alongside growth, a posture change worth tracking in subsequent quarters.
With Lyft trading at approximately 20x forward 2026 earnings, valuation upside is contingent on sustaining double-digit active rider growth amid competition from Uber.
The post Lyft Q4 2025 Earnings: Record Revenue and Rides Signal Improving Competitive Position first appeared on Alphastreet.
