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 was $1.9 billion.
• Net loss was $(9.7) million, a 121% decrease year over year from $46.1 million in Q3 2025, 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 from $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 $1.00 billion as of December 31, 2025.
• Cash and cash equivalents were $1.31 billion as of September 30, 2026.

Guidance and Future Outlook

• Fourth Quarter 2026 Gross Bookings are expected to be approximately $5.74 billion to $5.94 billion, representing 13% to 17% year-over-year growth.
• Fourth Quarter 2026 Adjusted EBITDA is projected to be approximately $188 million to $213 million, representing 22% to 38% year-over-year growth.
• Fourth Quarter 2026 Adjusted EBITDA margin is expected to be approximately 3.3% to 3.6% of Gross Bookings.
• The company has not provided forward-looking GAAP equivalents or reconciliations for the non-GAAP outlook due to uncertainty regarding reconciling items such as stock-based compensation, income tax, legal/tax/regulatory reserve changes, and acquisition costs.
• Lyft is on track to surpass 1 billion rides for the full year 2026.

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 partnerships.
• Launched "Lyft Go" in the U.S., a membership program offering up to 8% back in Lyft Credits on every ride.
• Announced "Alcove," a dedicated global premium chauffeuring brand for corporate travel programs, scheduled to launch in early 2027.
• Expanded autonomous vehicle (AV) partnerships, matching riders to fully autonomous Waymo vehicles in Nashville starting in September.
• Opened an 80,000-square-foot depot in October.

Market and Competitive Landscape

• Lyft positions itself as a partner of choice, creating value for riders through increased partnership-linked rides.
• The company is expanding into Europe to complement its core North American growth.
• Lyft aims to be the "best hybrid operator" in the business as AV partnerships prepare the company for the next five years of industry change.
• Alcove targets the global chauffeur market, which is worth tens of billions of dollars.

Risks and Challenges

• Future GAAP results may be significantly affected by reconciling items including stock-based compensation, income tax, legal/tax/regulatory reserve changes, settlements, and acquisition costs.
• Forward-looking statements are subject to risks regarding the macroeconomic environment, the ability to forecast performance, and the potential that partnerships may not materialize as expected.
• Actual results may differ materially from projections due to risks and uncertainties described in SEC filings, including the 2025 Annual Report on Form 10-K.

Management Commentary and Tone

• CEO David Risher stated that customer obsession drove the company's "best financial performance ever" and highlighted that Lyft Go is the "industry's best membership program."
• Risher expressed confidence in AV partnerships preparing Lyft to be the "best hybrid operator" and stated the company is "setting the standard" for how the world moves.
• CFO Michael Brous noted that strong execution led to rides acceleration in North America and highlighted surpassing $1 billion in trailing twelve-month cash generation for the fifth straight quarter.
• Brous described the growth in the core business combined with European expansion as evidence that the company's "formula is working."

Other Key Points

• The company reported a $117.9 million impact from legal, tax, and regulatory reserve changes and settlements in Q3 2026, with $69.1 million recorded as a reduction to revenue.
• Lyft completed $450 million in repurchases of Class A common stock during the nine months ended September 30, 2026.
• The company paid $69.1 million in cash for acquisitions, net of cash acquired, during the nine months ended September 30, 2026.
• Stock-based compensation totaled $53.9 million for the three months ended September 30, 2026.
• A webcast to discuss results was held on November 5, 2026, at 2:00 p.m. Pacific Time.