Lyft — Q3 2026 Earnings Summary

Financial Performance:

• Gross Bookings reached $5.6 billion, a 17% increase year over year.
• Revenue was $1.8 billion, up 8% year over year; excluding a $69.1 million impact from legal, tax, and regulatory reserve changes, revenue would have been $1.9 billion.
• Net loss was $(9.7) million, a 121% decrease year over year, including a $117.9 million impact from legal, tax, and regulatory reserve changes and settlements.
• Net loss as a percentage of Gross Bookings was (0.2)%, compared to 1.0% in Q3 2025.
• Adjusted EBITDA increased 47% year over year to $203.9 million, compared to $138.9 million in Q3 2025.
• Adjusted EBITDA margin was 3.6% of Gross Bookings, up from 2.9% in Q3 2025.
• Net cash provided by operating activities was $328.4 million, compared to $291.3 million in Q3 2025.
• Free cash flow was $294.7 million, compared to $277.8 million in Q3 2025.
• For the trailing twelve months, net cash provided by operating activities was $1.2 billion, and free cash flow was $1.1 billion.
• Total assets were $9.28 billion as of September 30, 2026, compared to $9.03 billion as of December 31, 2025.
• Long-term debt was $999.5 million as of September 30, 2026, compared to $1.0 billion as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 Gross Bookings are projected to be approximately $5.74 billion to $5.94 billion, representing 13% to 17% year-over-year growth.
• Q4 2026 Adjusted EBITDA is projected to be approximately $188 million to $213 million, representing 22% to 38% year-over-year growth.
• Q4 2026 Adjusted EBITDA margin is expected to be approximately 3.3% to 3.6% of Gross Bookings.
• The company is on track to deliver more than 1 billion rides for the full year 2026.
• Management stated that AV partnerships are preparing the company to be the best hybrid operator in the business, with expectations that the next five years will change how the world moves.

Business Segments and Product Lines:

• Active Riders reached a record 31.6 million, up 10% year over year, marking the 8th consecutive quarter of double-digit growth.
• Rides grew to a record 273.5 million, up 10% year over year, with strength in the core rideshare business and an all-time high quarter for Lyft Urban Solutions.
• Rides growth in North America accelerated sequentially compared to the prior year.
• A record number of North American rideshare rides were linked to a partnership.
• Launched "Lyft Go" in the U.S., a membership program offering up to 8% back in Lyft Credits on every ride.
• Introduced "Alcove," a dedicated global premium chauffeuring brand for corporate travel programs, scheduled to launch in early 2027.
• Expanded autonomous vehicle (AV) operations by matching riders to fully autonomous Waymo vehicles in Nashville starting in September.
• Opened an 80,000-square-foot AV depot in October.

Market and Competitive Landscape:

• Lyft positions itself as a partner of choice for creating value for riders through partnerships.
• The company is expanding into Europe, citing this expansion as part of a formula that is working.
• The global chauffeur market is described as being worth tens of billions of dollars.
• Lyft operates a multimodal platform across six continents and thousands of cities.

Risks and Challenges:

• Q3 results included a $117.9 million impact from legal, tax, and regulatory reserve changes and settlements, which reduced revenue by $69.1 million.
• Forward-looking statements note risks related to the macroeconomic environment and the ability to forecast performance due to such conditions.
• Risks include the potential that partnerships may not materialize as expected.
• GAAP results may be significantly affected by reconciling items such as stock-based compensation, income tax, legal, tax, and regulatory reserve changes, and acquisition-related costs.
• Non-GAAP guidance does not include a GAAP reconciliation due to the uncertainty and variability of these reconciling items.

Management Commentary and Tone:

• CEO David Risher stated, "Neither rain nor heat nor the gloom of night can slow Lyft's business," citing customer obsession as the driver for the best financial performance ever.
• CFO Michael Brous highlighted strong execution leading to rides acceleration in North America and noted the company surpassed $1 billion in trailing twelve-month cash generation for the fifth straight quarter.
• Management expressed confidence that durable growth in the core business combined with international expansion positions the company well for the future.

Other Key Points:

• The company reported a net loss of $(9.7) million for the quarter, primarily driven by the one-time legal and regulatory reserve adjustments.
• Lyft has achieved five consecutive quarters of surpassing $1 billion in trailing twelve-month cash generation.
• The Alcove brand launch is targeted for early 2027 to enter the global chauffeur market.
• The company continues to invest in AV infrastructure, evidenced by the new depot and Waymo partnership expansion.