Lyft Q2 2025 Earnings Miss Estimates, Sets New Records for Rides, Revenue, and Free Cash Flow

Lyft reported Q2 2025 revenue of $1.60 billion, missing estimates by 0.68%, but rising 10.6% YoY. The company achieved record GAAP net income of $40.3 million and free cash flow of $329.4 million. Rides surged 14% YoY to an all-time high, with nine consecutive quarters of double-digit ride growth. Lyft's strong profitability gains and operational efficiency have contributed to its success in the competitive ridesharing sector.

Lyft, Inc. (Nasdaq: LYFT) reported its Q2 2025 financial results, showcasing a mix of record-breaking achievements and a slight miss on revenue estimates. The company reported Q2 2025 revenue of $1.60 billion, a 10.6% year-over-year (YoY) increase, but it missed estimates by 0.68%. Despite this, Lyft achieved record GAAP net income of $40.3 million and free cash flow of $329.4 million [1].

Key highlights from the quarter include:
- Gross Bookings: Recorded at $4.5 billion, up 12% YoY.
- Rides: Surged 14% YoY to an all-time high of 234.8 million rides.
- Active Riders: Increased 10% YoY to 26.1 million active riders.
- Adjusted EBITDA: Recorded at $129.4 million, up 26% YoY.

Lyft's operational efficiency and strong profitability gains have been instrumental in its success in the competitive ridesharing sector. The company continues to expand its market and strengthen partnerships, including recent announcements with Baidu, BENTELER Mobility, and United Airlines [1].

For the third quarter of 2025, Lyft expects rides growth in the mid-teens YoY, driven by industry-leading service levels and strong rider and driver engagement. Gross bookings are projected to be between $4.65 billion and $4.80 billion, with adjusted EBITDA margins ranging from 2.7% to 3.0% [1].

The company's share repurchase program has been active, with 12.8 million shares repurchased for $200 million in Q2'25. Lyft's financial results underscore its commitment to operational excellence and customer obsession, positioning it strongly for future growth.

References:
[1] https://www.morningstar.com/news/business-wire/20250805355296/lyft-reports-record-q2-2025-financial-results