Lyft Stock Falls 15% on Disappointing Fourth-Quarter Results, Rider Numbers

Why It Matters

The earnings shortfall pressures Lyft’s valuation and highlights competitive challenges in the ride‑sharing sector, while the buyback signals confidence in cash generation despite weaker growth.

Key Takeaways

• Revenue $1.59B versus $1.76B estimate
• Active riders 29.2M, below 29.5M estimate
• Rides 243.5M, missing 256.6M forecast
• Board approved up to $1B share buyback
• California insurance law cuts prices, delays demand

Pulse Analysis

Lyft’s latest earnings underscore the tightening dynamics of the U.S. ride‑sharing market, where growth is increasingly tied to regulatory shifts and pricing pressure. While bookings rose 19% year‑over‑year to $5.07 billion, the revenue miss reflects a broader trend of lower average fares, especially after California’s new insurance mandate forced drivers to accept reduced rates. Investors are watching how Lyft balances cost efficiencies with the need to sustain rider engagement, as the shortfall in active users and total rides suggests a slower adoption curve than analysts anticipated.

The $1 billion share‑repurchase authorization serves a dual purpose: it returns capital to shareholders and bolsters earnings per share in a low‑growth environment. Such buybacks are common among mature tech firms seeking to signal confidence while mitigating dilution from stock‑based compensation. However, the move also raises questions about Lyft’s capital allocation strategy, particularly if the company must later invest heavily in autonomous vehicle initiatives or expanded market share battles with Uber, which continues to dominate globally.

Looking ahead, Lyft’s guidance for adjusted EBITDA between $120 million and $140 million aligns closely with analyst expectations, suggesting the company expects modest profitability improvements. The firm’s outlook hinges on the delayed consumer response to lower insurance costs and its ability to convert price sensitivity into sustained ride volume. If Lyft can leverage its cash reserves and buyback flexibility while navigating regulatory headwinds, it may stabilize its stock performance; failure to reignite rider growth could keep pressure on valuation and invite further competitive challenges.

Lyft stock falls 15% on disappointing fourth-quarter results, rider numbers

By Samantha Subin · Published Tue, Feb 10 2026 5:13 PM EST

Key Points

• Lyft reported disappointing revenue in the fourth quarter.

• Active riders and total rides also came up short of estimates.

• The company's board approved a $1 billion share repurchase plan.

Lyft’s stock tumbled 15 % in extended trading on Tuesday after the ride‑sharing company posted disappointing fourth‑quarter results.

Financial results versus LSEG estimates

• Earnings per share: Not comparable

• Revenue: $1.59 billion vs. $1.76 billion

Revenue grew 3 % from a year ago. Bookings grew 19 % year over year to $5.07 billion, which was in line with Wall Street estimates. Net income totaled about $2.76 billion, or $6.72 per share.

The company said it expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to range between $120 million and $140 million in the current quarter. Analysts expected $139.8 million for the period.

Lyft noted that recent legislation, which cut insurance costs in California, contributed to lower rideshare prices. “While we expect this to drive increased demand over time, broad‑based consumer adoption will take time to materialize and we now anticipate this being back‑half weighted,” the company said in a release.

Ride‑metric performance

• Active riders: 29.2 million (short of the StreetAccount estimate of 29.5 million)

• Rides: 243.5 million (versus a FactSet estimate of 256.6 million)

The board also approved up to $1 billion in additional share buybacks.