No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in ride-hailing platform Lyft tanked on Wednesday after fourth-quarter financials and customer numbers disappointed investors, while 2026 profit guidance and a new $1bn share buyback underwhelmed.
Gross bookings over the fourth quarter totalled $5.1bn, marking a 19% increase over last year and in line with market forecasts, though revenues rose by just 3% to $1.6bn, short of the $1.75bn expected by the market.
Net profits came in at $2.76bn, significantly higher than the $62m reported a year earlier, though the results included a $2.9bn benefit from the release of Lyft's valuation allowance of US federal and certain state deferred tax assets, the company said.
Adjusted EBITDA jumped 37% to $154.1m, while the adjusted EBITDA margin as a percentage of gross bookings improved to 3.0% from 2.6%.
However, both rider numbers of rides missed estimates: active riders totalled 29.2m, up 18% over last year but under the 29.5m expected, while the number of rides increased 11% to 243.5m, compared with the 256.6m predicted by analysts.
The stock was down 13.1% at $14.65 by 1455 GMT, hitting its lowest level since mid-August.
Even a new $1bn share repurchase programme failed to excited investors. Looking ahead, first-quarter adjusted EBITDA is expected to come in between $120m-140m, which at the midpoint is below the current $139.8m consensus forecast.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.