Lyft Plunges 17% on $1.59B Q4 Revenue Miss; $1B Buyback Approved
Lyft reported Q4 revenue of $1.59B, missing the $1.75B estimate, while adjusted EPS topped consensus at $0.15 versus $0.12 and gross bookings rose 19% to $5.1B. The board approved a $1B buyback and issued Q1 gross bookings guidance of $4.86B–$5.00B, targeting 17%–20% growth.
1. Fourth-Quarter Results
Lyft generated $1.59B in Q4 revenue, falling short of the $1.75B analysts expected. Adjusted EPS reached $0.15 versus a $0.12 consensus, driven by a higher take rate, while gross bookings climbed 19% to $5.1B and the active rider base expanded 18% to 29.2M.
2. Buyback and Guidance
The board authorized a $1B stock repurchase to support the share price. For Q1, Lyft forecasts gross bookings between $4.86B and $5.00B, implying 17%–20% year-over-year growth as it continues shifting toward higher-margin trips.
3. Analyst Reactions and Outlook
Wedbush cut its price target to $13, Cantor Fitzgerald lowered targets to $14, and Needham maintained a Hold, all citing execution risks in hitting 2027 goals. Analysts highlighted slower rides growth, one-time reserve charges, margin pressure and potential disruption from autonomous vehicles.