Lyft 2025 Q2 Earnings Net Income Surges 704%

Lyft (NASDAQ: LYFT) reported its fiscal 2025 Q2 earnings on August 6, 2025, with strong results across key metrics. The company beat expectations with a sharp rise in net income and record profitability. However, its post-earnings stock performance lagged the broader market, and the company’s guidance, while positive, did not raise expectations beyond its current trajectory.

Lyft reported total revenue of $1.59 billion for the quarter, reflecting a 10.6% increase compared to the same period in 2024. This growth underscores the continued strength of the company's core operations and expanded market opportunities.

Lyft’s earnings per share (EPS) surged by 900% to $0.10 in Q2 2025, compared to $0.01 in the prior year, marking a dramatic improvement in profitability. The company also posted net income of $40.31 million, representing 704% growth from $5.01 million in 2024 Q2. This marked a new record for Q2 net income and the highest quarterly profit in eight years. The earnings highlight Lyft’s continued progress toward long-term profitability.

The stock price of Lyft declined 2.91% on the latest trading day, 0.21% over the past week, and fell 12.94% month-to-date. The post-earnings investment strategy of buying LYFT after a beat and selling after 30 days delivered a disappointing -2.70% return, significantly underperforming the 85.66% benchmark. This strategy exhibited high volatility (37.42%) and a negative Sharpe ratio of -0.01, suggesting weak risk-adjusted returns.

In the wake of the earnings, the company’s stock continued to struggle. A strategy of buying LYFT following a positive earnings report and holding for 30 days yielded negative returns, indicating that strong quarterly results did not translate into investor confidence. The stock’s poor performance highlights the challenges Lyft faces in maintaining momentum in a competitive market.

Lyft CEO David Risher described Q2 2025 as the company’s “strongest quarter ever,” citing record performance driven by marketplace growth and strategic partnerships with companies like Baidu and United Airlines. Risher emphasized Lyft’s shift from being “just another rideshare option” to “the better choice,” highlighting the company’s expanding total addressable market following the Freenow acquisition.

CFO Erin Brewer noted that the quarter set new records in rides, Gross Bookings, and cash flow. She attributed this success to “operational excellence and customer focus,” while expressing optimism about future growth through market expansion and continued partnership development.

For Q3 2025, Lyft expects rides growth in the mid-teens year-over-year, supported by enhanced service levels and rider-driver engagement. Gross Bookings are projected to reach $4.65 billion to $4.80 billion, reflecting 13% to 17% year-over-year growth. Adjusted EBITDA is expected to range from $125 million to $145 million, with an Adjusted EBITDA margin of 2.7% to 3.0% of Gross Bookings. The results for Q3 will include two months of combined performance from the Freenow acquisition, which was completed on July 31, 2025.

Lyft recently finalized the acquisition of European mobility platform FreeNow for nearly $200 million, a move that significantly expands its global footprint. The company also announced a partnership with Baidu to introduce autonomous ride-hailing services in Europe. In addition, Lyft executed a $200 million stock repurchase in Q2, buying back 12.8 million shares. These moves underscore the company’s aggressive strategy to enhance shareholder value and expand its global presence.