"The ride-hailing company's stock dipped 16% in after-hours trading on Tuesday after it reported fourth-quarter earnings and a 2026 outlook that fell short of expectations. Lyft's revenue rose 3% to $1.59 billion during the quarter, below the $1.76 billion that analysts expected. Its guidance for the first quarter also missed the mark as it said it expects adjusted earnings before interest, taxes, depreciation, and amortization, a measure of profit,of between $120 million and $140 million."
"Lyft saw an "unexpected" increase in competitors' price promotions that weighed on its quarterly results, CEO David Risher said on an earnings call. "During a season of heightened competitive promotions, we prioritized the most durable, profitable demand in the marketplace," the company said in commentary released with its results. The results complicate Lyft's turnaround story. Since Risher became CEO in 2023, Lyft has cut costs and introduced new products for riders, including a price-lock feature for commuters."
Lyft reported fourth-quarter revenue of $1.59 billion, a 3% increase but below analyst expectations of $1.76 billion. The company projected first-quarter adjusted EBITDA between $120 million and $140 million. Lyft recorded a surprise operating loss of $188.4 million for 2025. Company commentary attributed weaker results to an unexpected rise in competitors' price promotions that weighed on demand. Lyft has cut costs and introduced rider features like a price-lock for commuters. Growth plans include adding Black car rides, a teen service, and a Waymo robotaxi rollout in Nashville later this year.
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