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Lyft's Profit Soars on Tax Benefit, Stock Dips
11 Feb
Summary
- Lyft reported a $2.76 billion profit, significantly boosted by a $2.9 billion tax-related benefit.
- Revenue reached $1.59 billion, falling short of analyst expectations.
- The company plans to significantly invest in autonomous vehicles starting in 2026.
Lyft announced a substantial profit of $2.76 billion for its latest reporting period, a dramatic increase from $61.7 million in the prior year. This surge was largely attributed to a $2.9 billion benefit derived from releasing a valuation allowance on U.S. federal and certain state deferred tax assets. Revenue saw a 3% increase, totaling $1.59 billion, though this figure did not meet Wall Street's expectations of $1.75 billion.
Despite the impressive profit, key performance indicators like active riders and the total number of rides did not meet analyst forecasts. Active riders grew by 18% to 29.2 million, and rides increased by 11% to 243.5 million, both below predictions. Gross bookings, however, rose 19% to $5.07 billion, aligning with expectations.
CEO David Risher outlined a strategic shift for Lyft, aiming to transform it into a global, hybrid transportation platform rather than solely a local rideshare service. A major focus for the company's future is its autonomous vehicle (AV) strategy, with plans to double down on AV deployments. Risher declared that 2026 will be "the year of the AV" for Lyft.
For the upcoming first quarter, Lyft anticipates gross bookings to grow between 17% and 20% year-over-year, projecting between $4.86 billion and $5 billion. This forecast is close to analyst expectations of $4.93 billion. Additionally, the company has authorized an additional $1 billion for share repurchases.
