Lyft Q4 Revenue Miss of $160M Sparks 16% Stock Slide
Lyft reported Q4 revenue of $1.59B, missing $1.75B consensus, while adjusted EPS of $0.15 beat estimates. Gross bookings rose 19% to $5.1B and active riders climbed 18% to 29.2M, but shares fell about 16% and board authorized a $1B buyback, guiding Q1 gross bookings growth of 17%-20%.
1. Q4 Financial Results
Lyft reported fourth-quarter revenue of $1.59 billion versus a $1.75 billion consensus, with adjusted earnings per share of $0.15 beating the $0.12 estimate. Gross bookings increased 19% year-over-year to $5.1 billion; active riders rose 18% to 29.2 million and total rides reached 945.5 million.
2. Market Reaction and Buyback
Shares slid roughly 16% following the revenue miss, reflecting investor concerns over slower growth despite the EPS beat. The board approved a new $1 billion share repurchase program to support the stock and signal confidence in long-term value.
3. Q1 Outlook
For the first quarter of 2026, Lyft forecasts gross bookings between $4.86 billion and $5.00 billion, implying 17%–20% year-over-year growth. This guidance aims to reassure investors on traction as the company navigates post-pandemic demand shifts.
4. Analyst Revisions
Several major firms lowered price targets on Lyft shares amid the weaker revenue report, including Deutsche Bank from $25 to $16, Truist from $23 to $18, and Cantor Fitzgerald from $21 to $14, while maintaining neutral or hold ratings.