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Lyft (LYFT) is diving lower following its 4Q25 earnings report, as a disappointing bottom-line outlook for 1Q26 overshadowed a solid finish to the fiscal year. While LYFT delivered Gross Bookings and Adjusted EBITDA at the high end of its previous guidance, the company notably did not provide an EPS figure, muddying the overall results for investors. Despite achieving record active ridership and a strong international push, the stock is under heavy pressure as management’s near-term profitability projections fell short of Wall Street's expectations.

• Gross Bookings grew 19% to $5.1 bln, while Adjusted EBITDA rose 37% to $154.1 mln, both hitting the high end of guidance ranges.
• Active Riders increased 18% to 29.2 mln, supported by better ETAs and a 50% surge in high-margin modes.
• The Freenow acquisition expanded LYFT into Europe, targeting a €1 bln exit rate as it enters 2026.
• DoorDash (DASH) remains the most successful link to date, while the United Airlines (UAL) partnership has already generated 115 mln miles for riders.
• A hybrid network approach for AVs aims for a 20% cost reduction per mile by 2030 through partners like Google's (GOOG/GOOGL) Waymo.
• Q1 Guidance was projected at EBITDA of $120–$140 mln, missing the $140 mln consensus, despite Gross Bookings growth of 17–20%.
• In California, LYFT expects a demand pickup in 2H26 as riders gradually adjust to lower prices from insurance reforms.

Briefing.com Analyst Insight

LYFT’s 4Q25 results highlight a company gaining operational momentum that is currently being masked by a cautious near-term outlook. The record 18% growth in active riders and deep partnership integration with DASH and UAL suggest the "customer-obsessed" strategy is working to capture market share. However, the Q1 EBITDA guidance miss is fueling concerns about persistent margin pressure and the cost of maintaining competitive pricing. In the immediate term, LYFT must navigate a complex regulatory and competitive environment in California while proving it can translate volume growth into consistent GAAP profitability. Until the company provides clearer bottom-line metrics and meets margin expansion targets, the stock may continue to struggle against the disappointing tag of its 2026 guidance.