Lyft (NASDAQ: LYFT) surged more than 28% on Friday after the company reported a surprise profit in the first quarter, expanded its stock repurchase program, and posted record rider activity. The ride-sharing platform also offered a strong outlook for Q2, fueling investor optimism.
For the first quarter, Lyft posted earnings of $0.01 per share, a stark turnaround from a loss of $0.08 in the same period last year. Revenue rose 14% year-over-year to $1.5 billion, beating Street estimates of $1.46 billion and a $0.02 per-share loss.
Active Riders climbed 11% to 24.2 million, marking a record first-quarter figure. Lyft noted that rides hit a record high for a single week in the final week of March, and drivers who use both major platforms showed a 23 percentage point preference for Lyft during the period.
Looking ahead, Lyft expects gross bookings for the second quarter to range between $4.41 billion and $4.57 billion, representing year-over-year growth of 10% to 14%. Adjusted EBITDA is forecast to be between $115 million and $130 million.
Lyft also expanded its stock buyback program to $750 million, signaling confidence in its cash flow and long-term positioning.
Following the earnings release, several analysts adjusted their outlooks on Lyft stock.
- JPMorgan analyst Doug Anmuth raised his price target to $16 from $14, maintaining a “Neutral” rating.
- Goldman Sachs analyst Eric Sheridan upgraded Lyft from “Neutral” to “Buy” and lifted his price target to $20 from $19.
- Cantor Fitzgerald analyst Deepak Mathivanan increased his price target to $14 from $12, also holding a Neutral rating.
Meanwhile, Engine Capital LP announced that it would withdraw its nominations for Lyft’s Board of Directors at the 2025 annual meeting following productive discussions with management.
As of the latest update, Lyft (NASDAQ: LYFT) shares are up 3.42%, trading at $17.22 in pre-market trading on Monday.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
