Lyft Q4 Bookings Up 19% to $5.07B as Revenue Misses and House Panel Probes AI Pricing
Lyft’s Q4 2025 gross bookings rose 19% year-over-year to $5.07 billion with active riders up 18% to 29.2 million, adjusted EBITDA climbed 37% to $154.1 million and free cash flow topped $1.1 billion, but revenue of $1.592 billion missed the $1.649 billion consensus. Analysts lowered targets to $15-$17 and a House panel requested details on Lyft’s AI pricing.
1. Q4 Financial Performance
Lyft reported Q4 2025 gross bookings of $5.07 billion, a 19% increase year-over-year, and a record 29.2 million active riders, up 18%. Reported revenue reached $1.592 billion, falling short of the $1.649 billion analyst consensus.
2. Profitability Metrics and Analyst Revisions
Adjusted EBITDA grew 37% to $154.1 million, while full-year free cash flow exceeded $1.1 billion. Despite improved cash generation, Q4 GAAP operating income remained negative, and analysts at Mizuho, Susquehanna and Bank of America cut targets to between $15 and $17.
3. Investor Sentiment and Share Performance
Lyft shares have declined over 31% year-to-date and are down more than 79% over five years, reflecting ongoing investor concerns. Social sentiment scores in recent forums ranged between 20 and 32, underscoring bearish views on profitability and growth prospects.
4. Regulatory Inquiry into AI Pricing
A U.S. House Oversight Committee has asked Lyft to disclose its use of AI-driven pricing algorithms and personalized data practices. The panel’s inquiry aims to assess whether dynamic pricing tools create transparency issues or unfair cost increases for consumers.