Lyft's Q1 Revenue Grows 14% as Active Users Surge 11%

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. 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. Diluted earnings per share were 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 4.16 billion, slightly above the average analyst estimate of 4.15 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 has begun offering 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 4.41 billion and 4.57 billion, with the midpoint of this range slightly above the average analyst estimate of 4.48 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 performance contrasts with Uber's first-quarter results, which were announced on Wednesday. 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 in the United States. Revenue 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 more than 150 cities across nine additional European countries. Additionally, Lyft stated that it continues to expand in Canada and plans to recruit drivers in Quebec soon.