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1. Company Snapshot

1.a. Company Description

Lyft, Inc.operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada.The company operates multimodal transportation networks that offer riders personalized and on-demand access to various mobility options.


It provides Ridesharing Marketplace, which connects drivers with riders; Express Drive, a flexible car rentals program for drivers; Lyft Rentals that provides vehicles for long-distance trips; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips.The company also integrates third-party public transit data into the Lyft app to offer riders various transportation options.In addition, it offers access to autonomous vehicles; centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs.


The company was formerly known as Zimride, Inc.and changed its name to Lyft, Inc.in April 2013.


Lyft, Inc.was incorporated in 2007 and is headquartered in San Francisco, California.

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1.b. Last Insights on LYFT

Lyft's recent momentum is driven by surging demand, upgraded earnings outlook, and strategic mobility partnerships. The company's Q3 2025 results showcased significant gains in profitability and growth, with record gross bookings and an all-time high active riders. Partnerships with Waymo and Curb, as well as expansion into new locations, are expected to drive future growth. Additionally, Lyft's customer-friendly deals, such as taxi and airline loyalty partnerships, aim to boost rider growth and revenue streams. Analysts have raised their forecasts, with a Buy rating and $28 price target, implying a 16% upside.

1.c. Company Highlights

2. Lyft's Q3 2025 Earnings: A Record Quarter with Strong Growth Catalysts

Lyft reported a record Q3 2025 with driver hours, Active Riders, and gross bookings at all-time highs. The company's adjusted EBITDA grew 29% year-over-year, and free cash flow generation for the trailing 12 months was over $1 billion. The actual EPS came out at $0.1116, missing estimates of $0.3175. Revenue growth was robust, with gross bookings up 16% year-over-year. The company's guidance for Q4 expects rides to be up mid- to high teens, and gross bookings up 17% to 20%. With a P/S Ratio of 1.51, the stock appears reasonably valued relative to its revenue growth.

Publication Date: Nov -11

📋 Highlights
  • Record Financial Performance:: Q3 2025 saw all-time highs in driver hours, Active Riders, and gross bookings, with adjusted EBITDA up 29% YoY and trailing 12-month free cash flow exceeding $1 billion.
  • Strategic Partnerships & Growth Catalysts:: The United Airlines partnership allows riders to earn miles, while AV collaborations like Waymo aim to boost utilization and expand market reach, with a $10–$15 million depot investment expected to drive 2026 growth.
  • Insurance Reform Impact:: California's SB 371 reduces insurance costs, translating to rider price reductions and stimulating demand, positioning as a win-win for all stakeholders.
  • Market Expansion & TAM Growth:: Acquisitions (FREENOW, TBR) doubled Lyft’s total addressable market, with underpenetrated North American markets (2/3 of 161B rides) offering significant growth potential and AI-driven strategies for optimization.
  • Q4 Guidance & Active Rider Growth:: Q4 guidance projects rides to rise mid- to high teens and gross bookings up 17–20%, supported by 18% YoY Active Rider growth and a $1 billion cash generation milestone since 2023.

Growth Opportunities and Partnerships

Lyft's partnership with United Airlines is now live, allowing users to earn miles on eligible rides. The company is excited about its growth catalysts for 2026, including a strong marketplace, record levels of Active Riders, and growth opportunities in underpenetrated markets. The acquisition of FREENOW and TBR Global Chauffeuring businesses is expected to contribute to growth in 2026, with FREENOW expected to generate EUR 1 billion in revenue. Lyft's CFO, Erin Brewer, highlighted that the company's Q3 results included Active Riders growth at 18% year-over-year, gross bookings up 16% year-over-year.

Autonomous Vehicles and Insurance

Lyft's partnerships, such as with Waymo, are expected to expand the market and drive growth. The company believes AVs will increase rideshare growth in markets where they operate. Lyft has invested $10 million to $15 million in building a depot, which is expected to contribute to growth in 2026. On insurance, Lyft saw a mid-single-digit increase on a per ride basis for its 10/1 renewals, which it considers a great outcome. The company continues to make progress in reducing accident frequency and severity through technology and partnerships with insurance providers.

Valuation and Outlook

The stock trades at an EV/EBITDA ratio of 25.8, which may seem high but is justified by the company's growth prospects. With a ROE of 20.71%, Lyft is generating strong returns on equity. Analysts estimate next year's revenue growth at 14.0%, which is slightly lower than the current year's growth rate. The company's focus on customers and an incredible team has led to a significant improvement in cash generation, from consuming $329 million to producing $1 billion.

3. NewsRoom

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Does LYFT's Gross Booking Growth Justify a Buy Decision on the Stock?

Dec -03

Source: zacks.com

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

Source: 247wallst.com

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American Century Companies Inc. Has $15.80 Million Stake in Lyft, Inc. $LYFT

Dec -03

Source: defenseworld.net

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Amazon-Backed Anthropic Moves Closer To One Of The Largest Tech IPOs Ever, Taps Wilson Sonsini As It Sets Eyes On Over $300 Billion Valuation: Report

Dec -03

Source: feeds.benzinga.com

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Lyft's Customer-Friendly Deals to Boost Revenues: More Upside Ahead?

Dec -02

Source: zacks.com

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3 Risks Lyft Investors Should Not Ignore

Dec -02

Source: fool.com

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3 Reasons the Bulls Are Excited About Lyft

Dec -01

Source: fool.com

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How Has LYFT Stock Done for Investors?

Dec -01

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.26%)

6. Segments

Contracts with Customers

Expected Growth: 12%

Lyft's 12% growth in Contracts with Customers is driven by increasing demand for ride-hailing services, expansion into new markets, and growing adoption of its subscription-based offerings. Additionally, investments in technology and operational efficiency have improved the user experience, leading to higher customer retention and acquisition rates.

Rental

Expected Growth: 16%

Rental from Lyft, Inc. growth driven by increasing demand for ride-hailing services, expansion into new markets, and strategic partnerships. Additionally, growing adoption of electric and hybrid vehicles, favorable government regulations, and investments in technology infrastructure contribute to the 16% growth.

7. Detailed Products

Ride-hailing

Lyft's core product, allowing users to request rides with licensed drivers using their personal vehicles.

Lyft Premier

A high-end ride-hailing service offering luxury vehicles and professional drivers.

Lyft Plus

A ride-hailing service for larger groups, accommodating up to 6 passengers.

Lyft Line

A carpooling service, matching riders traveling similar routes to reduce costs and environmental impact.

Lyft Express Drive

A program allowing individuals to rent a car for a week and drive for Lyft, with the option to earn money by driving.

Lyft Business

A platform offering customized transportation solutions for businesses, including employee commute programs and event transportation.

Lyft for Hospitals

A non-emergency medical transportation service, helping patients get to and from medical appointments.

8. Lyft, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

While there are substitutes for Lyft's services, such as public transportation, walking, or biking, the convenience and affordability of ride-hailing services make them a preferred choice for many consumers.

Bargaining Power Of Customers

Individual customers have limited bargaining power due to the lack of direct negotiation with Lyft. However, customers can choose to use alternative services or negotiate prices through promotions and discounts.

Bargaining Power Of Suppliers

Lyft's suppliers, primarily drivers, have limited bargaining power due to the abundance of drivers and the ease of switching to alternative platforms.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry and the attractiveness of the ride-hailing market. New entrants can easily replicate Lyft's business model and attract drivers and customers.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of strong competitors like Uber, Via, and Juno, which creates a highly competitive market with aggressive pricing and marketing strategies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.27%
Debt Cost 3.95%
Equity Weight 36.73%
Equity Cost 14.22%
WACC 7.72%
Leverage 172.28%

11. Quality Control: Lyft, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AppFolio

A-Score: 5.1/10

Value: 0.6

Growth: 9.7

Quality: 8.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

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Workiva

A-Score: 4.9/10

Value: 6.5

Growth: 6.7

Quality: 6.5

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

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Lyft

A-Score: 4.7/10

Value: 2.9

Growth: 7.7

Quality: 6.1

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

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RingCentral

A-Score: 4.6/10

Value: 8.1

Growth: 7.8

Quality: 5.3

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

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Guidewire Software

A-Score: 4.5/10

Value: 0.0

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

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Duolingo

A-Score: 4.4/10

Value: 0.3

Growth: 9.9

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.52$

Current Price

22.52$

Potential

-0.00%

Expected Cash-Flows