Lyft misses Q4 estimates as rider numbers underwhelm

(Sharecast News) - Shares in ride-hailing platform Lyft tanked on Wednesday after fourth-quarter financials and customer numbers disappointed investors, while 2026 profit guidance and a new $1bn share buyback underwhelmed. Gross bookings over the fourth quarter totalled $5.1bn, marking a 19% increase over last year and in line with market forecasts, though revenues rose by just 3% to $1.6bn, short of the $1.75bn expected by the market.

Net profits came in at $2.76bn, significantly higher than the $62m reported a year earlier, though the results included a $2.9bn benefit from the release of Lyft's valuation allowance of US federal and certain state deferred tax assets, the company said.

Adjusted EBITDA jumped 37% to $154.1m, while the adjusted EBITDA margin as a percentage of gross bookings improved to 3.0% from 2.6%.

However, both rider numbers of rides missed estimates: active riders totalled 29.2m, up 18% over last year but under the 29.5m expected, while the number of rides increased 11% to 243.5m, compared with the 256.6m predicted by analysts.

The stock was down 13.1% at $14.65 by 1455 GMT, hitting its lowest level since mid-August.

Even a new $1bn share repurchase programme failed to excited investors. Looking ahead, first-quarter adjusted EBITDA is expected to come in between $120m-140m, which at the midpoint is below the current $139.8m consensus forecast.