Lyft Shares Soar on Strong Earnings and Strategic Expansion

Lyft's stock is experiencing a dramatic surge following impressive quarterly results and significant strategic initiatives. The ride-hailing platform is demonstrating a clear path toward sustainable profitability, generating substantial enthusiasm among investors.

The company is aggressively pursuing expansion plans designed to transform it from a simple ride-hailing service into a comprehensive mobility platform. Key strategic developments include:

• A new partnership with Waymo is bringing autonomous vehicles to the streets of Nashville.
• An alliance with Curb now integrates taxi services directly into the Lyft application.
• The acquisition of FREENOW nearly doubles the company's addressable market in Europe.
• The purchase of TBR Global Chauffeuring strengthens Lyft's position in the premium and business travel segments.
• A collaboration with United Airlines allows passengers to earn frequent flyer miles on Lyft rides.

These calculated steps are positioning Lyft as a complete mobility ecosystem, a crucial evolution for tapping into new market segments.

Quarterly Earnings: Profitability Takes Center Stage

On November 5, Lyft unveiled its third-quarter 2025 financial results, showcasing operational successes even as revenue slightly missed expectations. Earnings per share came in at $0.11, marking a substantial improvement over the loss reported for the same period last year. Revenue reached $1.69 billion, narrowly falling short of analyst forecasts.

However, it was the underlying metrics that truly captured investor confidence. Gross bookings skyrocketed to $4.8 billion, a 16 percent year-over-year increase. The count of active riders grew by an impressive 18 percent, reaching 28.7 million users. Adjusted EBITDA climbed 29 percent to $138.9 million. The markets responded immediately: Lyft shares gained 3.4 percent in after-hours trading and embarked on a six-day rally of approximately 26 percent. Since the earnings release, the stock has advanced by a total of 15.3 percent.

Should investors sell immediately? Or is it worth buying Lyft?

Analyst Optimism Fuels Rising Price Targets

The positive market sentiment has been amplified by a wave of upgrades from financial analysts. Several major investment firms have raised their price targets for Lyft, citing the company's strengthened outlook and strategic progress.

• RBC Capital reaffirmed its "Outperform" rating and a $27 price target.
• Guggenheim lifted its target to $26, pointing to advantages in insurance.
• Mizuho also set a $27 target, expressing optimism for 2026.
• Bernstein increased its target to $23, citing stable demand.

This collective analyst mood reflects growing confidence in Lyft's strategic direction and financial resilience.

Citi Bike: A Challenge Amid the Growth?

Despite the overwhelmingly positive news, not all developments are flawless. A recent report from New York City's Independent Budget Office on November 19 casts a critical eye on Lyft's Citi Bike operations. The investigation reveals that Citi Bike membership costs in New York City are significantly higher than those of other major bike-share systems in the United States, Canada, and Europe.

Specifically, the Budget Office found that Lyft's revenue from Citi Bike increased by 60 percent from 2023 to 2024. However, the program's operating costs remain largely opaque. These revenues constitute only about 3 percent of Lyft's total annual revenue of $5.8 billion. With the current contract with Lyft set to expire in 2029, the Budget Office recommends that New York City demand greater transparency regarding Citi Bike's financial details.

The key question remains: Can Lyft leverage the momentum from its robust quarterly performance and strategic expansions to also address the criticism surrounding its Citi Bike pricing?