Lyft's Q1 Earnings Surge 14% Year-Over-Year, Beats Estimates

Lyft, the American ride-hailing company, reported its first-quarter 2025 earnings on Thursday, revealing a total booking volume that exceeded expectations. This performance stands in stark contrast to the disappointing results announced by its larger competitor, Uber. Lyft's Q1 revenue grew 14% year-over-year to $1.45 billion, slightly below the average analyst estimate of $1.47 billion. However, the company reported a net profit of $2.6 million, compared to a net loss of $31.5 million in the same period last year. On a per-share basis, Lyft earned $0.01, surpassing the average analyst estimate of a $0.01 loss per share. The total booking volume for Q1 increased 13% year-over-year to $41.6 billion, slightly above the average analyst estimate of $41.5 billion. The number of rides taken grew 16% year-over-year to 218 million, exceeding the average analyst estimate of 215 million. The number of active riders increased 11% year-over-year to 24.2 million.

Lyft attributed its strong performance to the accelerated growth of active users. The company noted that it is expanding into lower-density markets such as Indianapolis and is beginning to offer higher-margin premium services in more regions across the United States. Looking ahead, Lyft expects its total booking volume for the second quarter to be between $44.1 billion and $45.7 billion, with the midpoint of this range slightly above the average analyst estimate of $44.8 billion. The company also announced an accelerated and expanded stock repurchase program, with its board authorizing an increase in the stock repurchase amount from $500 million to $700 million, and plans to use $500 million of the authorized amount within the next 12 months.

Lyft's first-quarter results provide a stark contrast to Uber's first-quarter performance. Uber reported a total booking volume of $42.8 billion for the first quarter, slightly below the average analyst estimate of $43.1 billion, due to a decrease in inbound tourism to the United States. Uber's revenue for the quarter was $11.5 billion, also below expectations. However, Uber's guidance for second-quarter earnings and booking volume exceeded expectations.

As Lyft begins to offer ride-hailing services on its app in the United States, it is expected to compete with Uber in more markets. Following the recent acquisition of the European ride-hailing app Freenow, Lyft will soon offer ride-hailing services in over 150 cities across nine additional European countries. Additionally, Lyft stated that it continues to expand in Canada and will soon begin recruiting drivers in Quebec.