Lyft Stock Drops After Q4 Earnings: AV Deployments in 2026, CEO Says

Lyft Inc. (NASDAQ:LYFT) shares sank in Tuesday's extended trading after the company released its fourth-quarter earnings report.   

Here's a look at the key figures from the quarter. 

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The Details: Lyft reported quarterly revenue of $1.6 billion, which may not compare to the analyst consensus estimate of $1.76 billion due to the impact of certain legal, tax and regulatory charges.

The company added an additional $1 billion to its share repurchase program.

Lyft reported the following fouth quarter highlights:

• Gross Bookings of $5.1 billion, up 19% year over year.
• Revenue of $1.6 billion, up 3% year over year, which includes a $168 million impact from certain legal, tax and regulatory reserve changes and settlements. Without this item, revenue would have been $1.8 billion.
• Net income of $2.8 billion, which includes a benefit from the release of the valuation allowance, compared to $61.7 million in the fourth quarter of 2024.
  • Net income as a percentage of Gross Bookings of 54.3% compared to 1.4% in the fourth quarter of 2024.
• Adjusted EBITDA up 37% year over year to $154.1 million compared to $112.8 million in the fourth quarter of 2024.
  • Adjusted EBITDA margin as a percentage of Gross Bookings of 3.0% compared to 2.6% in the fourth quarter of 2024.

“2025 was an incredible year in Lyft’s comeback story. Through customer obsession, we’re transforming from your local, ‘out-to-dinner’ rideshare app to a global, hybrid transportation platform,” said CEO David Risher.

“As we look ahead, we are entering a transformational phase for Lyft — 2026 will be the year of the AV with deployments in the U.S. and overseas,” Risher added.

Outlook: Lyft expects first-quarter gross bookings of approximately $4.86 billion to $5 billion, up approximately 17% to 20% year over year and adjusted EBITDA of approximately $120 million to $140 million.

LYFT Stock Price: According to data from Benzinga Pro, Lyft shares dropped 14.36% to $14.43 in Tuesday's extended trading.  

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