30.5 million active riders, a company record and the seventh straight quarter of double-digit growth, pushed Lyft (LYFT) gross bookings to $5.5 billion in its latest quarter, up 23% year over year. Revenue came in at $1.8 billion, a 16% YoY gain, while net income rose to $50.3 million from $40.3 million in the year-ago period.
Profitability metrics and the math
Adjusted EBITDA reached $177.2 million, up 37% YoY. The margin on gross bookings widened to 3.2% from 2.9%. Free cash flow was $319.6 million for the quarter and $1.1 billion over the trailing 12 months. Total rides hit 262 million, up 12% YoY, also a record.
Partnerships now account for 30% of North American rideshare rides, an all-time high. Lyft launched Waymo autonomous vehicle operations in Nashville in June and plans to open an 80,000-square-foot AV depot there in October. The Curb partnership is being extended into New York City.
Q3 guidance and what it buries
Management guided Q3 gross bookings to $5.50 billion-$5.67 billion, implying 15%-19% YoY growth. That is a deceleration from the 23% just reported. Adjusted EBITDA is guided to $183 million-$203 million, with margin moving to approximately 3.3%-3.6% of gross bookings.
The stock gained approximately 5.37% in the five trading days following the report. Shares trade at 0.98 times sales and 23.62 times forward earnings. The PEG ratio sits at 0.97. Lyft's market capitalization is $6.63 billion. The stock remains 31.2% below its 52-week high of $25.54, though it has recovered 39.7% from its 52-week low of $12.46.
Analyst divide: AV risk is the fault line
Brad Erickson at RBC Capital maintained Outperform and raised his price target from $18 to $20, citing the improving ride mix across partner rides, airport trips, and higher-value transportation. Chad Larkin at Oppenheimer also held Outperform at $20, noting Lyft trades at roughly six times projected 2027 EBITDA and that better execution could push short sellers to cover.
Justin Post at BofA Securities kept Underperform and lifted his target from $17 to $18. Post argues the AV debate will drive the stock more than earnings in the near term and that Uber's larger scale and stronger balance sheet are preferable. Wells Fargo held an Equal Weight rating with a $19 target, pointing to pricing pressure and consumer incentive spending as friction.
The consensus across analysts sits at Moderate Buy, mean target $19.33, implying 11.5% upside. The street-high target of $30 implies 73% upside over 12 months.