Lyft is down.
Lyft's stock sank 16% after the company reported its fourth-quarter results on Tuesday.
The ride-hailing service also reported an unexpected operating loss for 2025.
Ride-hailing service Lyft said it faced more price competition on rides during the period.
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.
The company also reported a surprise operating loss of $188.4 million for 2025.
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's stock is up about 11% over the past year.
On Tuesday's earnings call, Risher pointed to Lyft's growth plans for 2026 and beyond, including adding Black car rides and a service specifically for teens — both options that rival Uber already offers.
Risher also pointed to robotaxis as an area of expansion. Lyft is working with Waymo to bring self-driving cars to its ride-hailing app in Nashville later this year.
Still, the company faces challenges in the autonomous vehicle market. Asked by an analyst why Lyft hasn't struck deals with more robotaxi providers, Risher said: "There just aren't that many suppliers" that can function at the scale Lyft needs.
Risher said he expects robotaxi availability to change over the next few years. "We see a lot of supply coming online" by 2030, he said.
This article was written by abitter@businessinsider.com (Alex Bitter) from Business Insider and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.