Published Wed, Feb 11, 2026 · 07:00 AM
LYFT forecast first-quarter adjusted core profit below expectations on Tuesday as severe US winter storms weigh on demand, and reported a surprise operating loss for 2025, sending shares down 14 per cent after hours.
The results are a setback for Lyft’s comeback narrative, capping a year of improving bookings growth, higher margins and expansion into new regions. They overshadowed the announcement of a US$1 billion share buyback.
The weaker first-quarter forecast shows the effects of Winter Storm Fern, which brought heavy snow, icy conditions and prolonged extreme cold to large parts of the United States, particularly on the East Coast, disrupting travel and dampening ride demand during the quarter.
Its 2025 operating loss came in at US$188.4 million, while analysts expected a profit of US$33.3 million, according to Visible Alpha data.
It expects adjusted core profit of US$120 million to US$140 million for the quarter, below estimates of US$139.4 million.
Lyft forecast current-quarter gross bookings of US$4.86 billion to US$5 billion, with a midpoint largely in line with the average estimate of US$4.95 billion.
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The repurchase represents roughly 15 per cent of Lyft’s current market capitalisation and comes on top of an earlier US$750 million share repurchase programme announced early last year.
Revenue in the December quarter stood at US$1.59 billion, below estimates of US$1.76 billion. Fourth-quarter revenue included a US$168 million impact from legal, tax and regulatory reserve changes and settlements, without which revenue would have been about US$1.8 billion, the company said.
The fourth quarter marked Lyft’s most profitable on record, supported by stronger rider engagement and a growing mix of higher-value ride modes, even as severe winter weather across parts of the United States weighs on its forecast.
Lyft generated US$1.12 billion in free cash flow in 2025, higher than estimates of US$993.4 million.
It reported adjusted core earnings of US$154.1 million for the fourth quarter, above expectations of US$147.1 million, according to estimates compiled by LSEG.
Gross bookings in the quarter rose 19 per cent to US$5.07 billion, in line with expectations.
Growth last year was driven by an expansion into Europe, premium and larger-vehicle offerings, as well as partnerships.
About 25 per cent of Lyft’s rides in the fourth quarter were linked to a partnership, including strong momentum from its tie-up with DoorDash. REUTERS
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