LYFT Q2 Earnings Miss, Revenues Top Estimates on Record Rides

Lyft, Inc. (LYFT) reported second-quarter 2026 earnings of 29 cents per share, missing the Zacks Consensus Estimate of 39 cents by 25.6%. Revenues of $1.84 billion beat the consensus estimate of $1.81 billion by 1.8% and rose 16.1% year over year.

Growth was fueled by record rides and gross bookings, while Active Riders reached a record 30.5 million. Adjusted EBITDA also advanced sharply, reflecting stronger operating momentum even as marketing and administrative costs increased.

LYFT Sees Record Ride and Booking Activity

Gross bookings were $5.50 billion in the second quarter, increasing 22.6% from $4.49 billion in the year-ago period. Rides climbed 11.8% year over year to 262.4 million, reaching a record level as growth accelerated sequentially.

The company recorded strength across Freenow by Lyft in Europe, North American rideshare and Lyft Urban Solutions. Active Riders grew 16.9% year over year, marking the seventh consecutive quarter of double-digit growth.

Lyft's Profitability Improves on Better Operating Scale

Net income increased 24.7% year over year to $50.3 million. Net income, as a percentage of gross bookings, remained unchanged at 0.9%.

Adjusted EBITDA rose 36.9% to $177.2 million from $129.4 million a year earlier. The adjusted EBITDA margin, measured as a percentage of gross bookings, expanded to 3.2% from 2.9%, highlighting improved profitability alongside the higher transaction volume.

LYFT Faces Higher Marketing and Administrative Costs

Total costs and expenses increased 13.3% year over year to $1.80 billion. Sales and marketing expenses jumped 67.6% year over year to $320.0 million, while general and administrative expenses rose 29.8% to $301.6 million.

Operations and support expenses increased 9.6% year over year to $128.7 million, and research and development costs rose 9.1% year over year to $119.2 million. Cost of revenues, however, declined about 1% to $926.4 million. Income from operations improved sharply to $47.6 million from $2.4 million in the prior-year quarter.

Lyft Maintains Strong Cash Generation

Net cash provided by operating activities totaled $349.9 million compared with $343.7 million a year ago. Free cash flow was $319.6 million, down from $329.4 million in the second quarter of 2025. On a trailing-12-month basis, free cash flow reached $1.11 billion.

Lyft ended June with cash and cash equivalents of $1.14 billion compared with $1.13 billion at the end of 2025. Long-term debt, net of the current portion, declined to $990.6 million from $1.00 billion at year-end.

LYFT Expands Partnerships and Autonomous Vehicle Reach

Partnership-linked activity continued to gain importance. Approximately 30% of North American rideshare rides were connected to a partnership during the quarter, an all-time high for the company.

In Nashville, Lyft began fleet operations with Waymo in June and is preparing to open an 80,000-square-foot autonomous vehicle depot in October. Lyft and Curb also expanded their strategic partnership into New York City, broadening transportation choices through established licensed taxi operators.

Lyft Guides for Continued Growth in Q3

For the third quarter of 2026, Lyft expects gross bookings between $5.50 billion and $5.67 billion. The range represents anticipated year-over-year growth of approximately 15% to 19%.

Adjusted EBITDA is projected to be between $183 million and $203 million. Lyft expects the adjusted EBITDA margin, calculated as a percentage of gross bookings, to range from 3.3% to 3.6%, indicating continued margin expansion at the midpoint of the outlook.

Currently, Lyft carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performance of Some Other Stocks Belonging to LYFT's Industry

Uber TechnologiesUBER reported mixed second-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.

Quarterly earnings of $1.17 per share beat the Zacks Consensus Estimate of 83 cents by 41%. The figure surged 85.7% from 63 cents in the year-ago quarter. Revenues increased 12.2% year over year on a reported basis and 11% on a constant currency basis to $14.19 billion but missed the consensus estimate of $14.21 billion by 0.1%.

Adjusted EBITDA advanced 33% to $2.81 billion. Adjusted EBITDA margin as a percentage of gross bookings improved to 4.9% from 4.5%, highlighting faster earnings growth relative to platform transaction growth.

DoorDash DASH posted second-quarter 2026 earnings of 46 cents per share, down 29.2% year over year and missing the Zacks Consensus Estimate by 8%. 

Revenues increased 35.6% year over year to $4.45 billion and beat the consensus mark by 3.08%. The top line benefited from higher order volume, increased average order value, and the Deliveroo acquisition. Total Orders rose 27% year over year to 970 million, while Marketplace GOV advanced 36% to $33.08 billion. Net revenue margin was 13.5%, unchanged from the year-ago quarter and up from 12.8% in the first quarter of 2026. Revenues, excluding Deliveroo, were $4.07 billion, up 24% year over year.

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