We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
LYFT Shares Decline 4.2% Since Third-Quarter 2026 Earnings Release
Read MoreHide Full Article
Key Takeaways
Lyft's Q3 revenues rose 8.1% to $1.82B, while adjusted earnings met estimates at 43 cents per share.
Record rides of 273.5 million and 10% active rider growth lifted gross bookings 17% to $5.62 billion.
Lyft's adjusted EBITDA surged 47% to $203.9 million, while free cash flow improved to $294.7 million.
Lyft, Inc. (LYFT - Free Report) reported third-quarter 2026 adjusted earnings of 43 cents per share, in line with the Zacks Consensus Estimate. On a GAAP basis, the company reported a loss of 3 cents per share against earnings of 11 cents in the year-ago quarter.
The company’s stock failed to impress the market, declining 4.2% since its earnings release on Nov. 5, 2026.
Image Source: Zacks Investment Research
Revenues increased 8.1% year over year to $1.82 billion but missed the Zacks Consensus Estimate of $1.92 billion by 5.2%. The revenue shortfall reflected a $69.1 million reduction related to regulatory settlements. Meanwhile, gross bookings increased 17% year over year to $5.62 billion, supported by higher ride volumes and international expansion.
Total rides increased 10% year over year to a record 273.5 million compared with 248.8 million in the year-ago quarter. North American rides growth accelerated for the second consecutive quarter, supported by momentum across the United States and Canada.
Active riders increased 10% year over year to 31.6 million, marking the eighth consecutive quarter of double-digit growth. Record driver hours improved estimated arrival times, while the company's expanding partnership network supported rider engagement and frequency.
Lyft Urban Solutions also recorded its highest quarterly ride volumes, benefiting from expanding electric bike operations. Canadian rides more than doubled year over year, while key collegiate markets registered growth exceeding 30%.
Lyft's Gross Bookings Rise on Premium Demand
Gross bookings increased from $4.78 billion in the prior-year quarter, reflecting strength across ride categories, higher average bookings per ride and contributions from acquired businesses.
Premium rides registered double-digit year-over-year growth for the 13th consecutive quarter, led by Lyft Black, XXL and Extra Comfort. The company also benefited from a full quarter of Freenow operations and contributions from TBR GQWSA Global Chauffeuring.
Following the Freenow acquisition, Lyft expanded its European presence. Active riders, rides and gross bookings in Europe increased organically year over year. The Lyft app became available in more than 160 European cities, generating tens of thousands of rides during its first month.
LYFT's Expenses Rise Despite Insurance Savings
Cost of revenues declined 6% year over year to $871.4 million from $927.2 million. Lower insurance costs per ride, supported by California insurance reforms, favorable insurance developments and growth in lower-cost markets, contributed to the improvement.
However, sales and marketing expenses increased to $382 million from $243.3 million, reflecting increased investment in customer acquisition and engagement. General and administrative expenses rose to $344.7 million from $250.6 million.
Total costs and expenses increased to $1.84 billion from $1.66 billion. The company reported an operating loss of $19.4 million against operating income of $23.1 million a year ago.
Lyft's Adjusted EBITDA and Cash Flow Improve
Adjusted EBITDA increased 47% year over year to a record $203.9 million from $138.9 million. Adjusted EBITDA margin, measured as a percentage of gross bookings, expanded to 3.6% from 2.9%, reflecting improved operating efficiency.
The company reported a GAAP net loss of $9.7 million compared to net income of $46.1 million a year ago. Results included $117.9 million in charges associated with legal, tax and regulatory reserve changes and settlements.
Operating cash flow increased to $328.4 million from $291.3 million. Free cash flow improved to $294.7 million from $277.8 million, while trailing 12-month free cash flow reached approximately $1.13 billion.
LYFT Expands Partnerships and Autonomous Operations
Lyft introduced Lyft Go, a membership program integrating DoorDash's DashPass benefits. The $9.99 monthly offering provides 8% back in Lyft Credits, while Lyft Go Core costs $4.99 monthly and offers 5% back.
The company continued expanding autonomous vehicle operations through its Waymo partnership in Nashville. Lyft opened an 80,000-square-foot depot in October and expects significant fleet expansion by year-end.
In London, Lyft is testing Baidu's Apollo Go vehicles ahead of a planned commercial launch in 2027. The company also plans to introduce Alcove, its premium global chauffeur brand, in early 2027.
Lyft Issues Fourth-Quarter Outlook
For the fourth quarter of 2026, Lyft expects gross bookings between $5.74 billion and $5.94 billion, representing year-over-year growth of approximately 13-17%.
Adjusted EBITDA is projected between $188 million and $213 million, implying growth of approximately 22-38%. Adjusted EBITDA margin is expected between 3.3% and 3.6% of gross bookings.
Management continues to anticipate more than 1 billion rides in 2026 and expects North American ride growth to accelerate further in the fourth quarter.
Lyft also expects approximately $500 million in share repurchases for 2026, following roughly $50 million of buybacks during the reported quarter.
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.
Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.
View the Zacks #1 Rank List
Image: Bigstock
LYFT Shares Decline 4.2% Since Third-Quarter 2026 Earnings Release
Key Takeaways
Lyft, Inc. (LYFT - Free Report) reported third-quarter 2026 adjusted earnings of 43 cents per share, in line with the Zacks Consensus Estimate. On a GAAP basis, the company reported a loss of 3 cents per share against earnings of 11 cents in the year-ago quarter.
The company’s stock failed to impress the market, declining 4.2% since its earnings release on Nov. 5, 2026.
Image Source: Zacks Investment Research
Revenues increased 8.1% year over year to $1.82 billion but missed the Zacks Consensus Estimate of $1.92 billion by 5.2%. The revenue shortfall reflected a $69.1 million reduction related to regulatory settlements. Meanwhile, gross bookings increased 17% year over year to $5.62 billion, supported by higher ride volumes and international expansion.
Lyft, Inc. Price, Consensus and EPS Surprise
Lyft, Inc. price-consensus-eps-surprise-chart | Lyft, Inc. Quote
LYFT's Ride Volumes and Active Riders Grow
Total rides increased 10% year over year to a record 273.5 million compared with 248.8 million in the year-ago quarter. North American rides growth accelerated for the second consecutive quarter, supported by momentum across the United States and Canada.
Active riders increased 10% year over year to 31.6 million, marking the eighth consecutive quarter of double-digit growth. Record driver hours improved estimated arrival times, while the company's expanding partnership network supported rider engagement and frequency.
Lyft Urban Solutions also recorded its highest quarterly ride volumes, benefiting from expanding electric bike operations. Canadian rides more than doubled year over year, while key collegiate markets registered growth exceeding 30%.
Lyft's Gross Bookings Rise on Premium Demand
Gross bookings increased from $4.78 billion in the prior-year quarter, reflecting strength across ride categories, higher average bookings per ride and contributions from acquired businesses.
Premium rides registered double-digit year-over-year growth for the 13th consecutive quarter, led by Lyft Black, XXL and Extra Comfort. The company also benefited from a full quarter of Freenow operations and contributions from TBR GQWSA Global Chauffeuring.
Following the Freenow acquisition, Lyft expanded its European presence. Active riders, rides and gross bookings in Europe increased organically year over year. The Lyft app became available in more than 160 European cities, generating tens of thousands of rides during its first month.
LYFT's Expenses Rise Despite Insurance Savings
Cost of revenues declined 6% year over year to $871.4 million from $927.2 million. Lower insurance costs per ride, supported by California insurance reforms, favorable insurance developments and growth in lower-cost markets, contributed to the improvement.
However, sales and marketing expenses increased to $382 million from $243.3 million, reflecting increased investment in customer acquisition and engagement. General and administrative expenses rose to $344.7 million from $250.6 million.
Total costs and expenses increased to $1.84 billion from $1.66 billion. The company reported an operating loss of $19.4 million against operating income of $23.1 million a year ago.
Lyft's Adjusted EBITDA and Cash Flow Improve
Adjusted EBITDA increased 47% year over year to a record $203.9 million from $138.9 million. Adjusted EBITDA margin, measured as a percentage of gross bookings, expanded to 3.6% from 2.9%, reflecting improved operating efficiency.
The company reported a GAAP net loss of $9.7 million compared to net income of $46.1 million a year ago. Results included $117.9 million in charges associated with legal, tax and regulatory reserve changes and settlements.
Operating cash flow increased to $328.4 million from $291.3 million. Free cash flow improved to $294.7 million from $277.8 million, while trailing 12-month free cash flow reached approximately $1.13 billion.
LYFT Expands Partnerships and Autonomous Operations
Lyft introduced Lyft Go, a membership program integrating DoorDash's DashPass benefits. The $9.99 monthly offering provides 8% back in Lyft Credits, while Lyft Go Core costs $4.99 monthly and offers 5% back.
The company continued expanding autonomous vehicle operations through its Waymo partnership in Nashville. Lyft opened an 80,000-square-foot depot in October and expects significant fleet expansion by year-end.
In London, Lyft is testing Baidu's Apollo Go vehicles ahead of a planned commercial launch in 2027. The company also plans to introduce Alcove, its premium global chauffeur brand, in early 2027.
Lyft Issues Fourth-Quarter Outlook
For the fourth quarter of 2026, Lyft expects gross bookings between $5.74 billion and $5.94 billion, representing year-over-year growth of approximately 13-17%.
Adjusted EBITDA is projected between $188 million and $213 million, implying growth of approximately 22-38%. Adjusted EBITDA margin is expected between 3.3% and 3.6% of gross bookings.
Management continues to anticipate more than 1 billion rides in 2026 and expects North American ride growth to accelerate further in the fourth quarter.
Lyft also expects approximately $500 million in share repurchases for 2026, following roughly $50 million of buybacks during the reported quarter.
Currently, LYFT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Transportation Companies
Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.
Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.