Lyft’s stock continued its upward trajectory in early European trading today, building on momentum from a third-quarter 2025 earnings report that significantly exceeded market expectations. The ride-hailing platform demonstrated substantial operational improvements across multiple key performance indicators.
Record-Breaking Financial Performance
The company’s latest quarterly results highlight a remarkable financial turnaround. Lyft reported a GAAP profit of $46.1 million, a substantial improvement compared to losses during the same period last year. Several metrics reached unprecedented levels:
- Gross bookings reached $4.8 billion, representing 16% year-over-year growth
- Revenue hit $1.69 billion, setting a new quarterly record
- Active users climbed to 28.7 million, an all-time high
- Completed rides totaled 248.8 million, another record achievement
A particularly noteworthy milestone: Lyft generated over $1 billion in free cash flow during the past twelve months, marking the first time in company history it has achieved this financial benchmark.
Bullish Guidance and Strategic Initiatives
Looking ahead to the fourth quarter of 2025, management expressed strong confidence in continued growth. The company projects gross bookings between $5.01 billion and $5.13 billion, comfortably surpassing Wall Street’s expectation of $4.98 billion. Ride growth is anticipated to reach the mid-to-high double-digit percentage range.
Should investors sell immediately? Or is it worth buying Lyft?
Several strategic developments position Lyft to maintain this momentum through the critical holiday season:
- Recently announced loyalty partnership with United Airlines
- Completed acquisition of FREENOW’s European operations
- Ongoing expansion into underserved U.S. markets, particularly college towns
- Continued autonomous vehicle collaborations with Waymo and Tensor
Analyst Sentiment Strengthens
The strong quarterly performance prompted several financial institutions to revise their outlook on Lyft shares upward:
- Benchmark raised its price target from $26 to $30 while maintaining a Buy rating
- Goldman Sachs increased its target from $21 to $26, also with a Buy recommendation
- Cantor Fitzgerald lifted its target from $19 to $25, maintaining a Neutral stance
From a technical analysis perspective, the stock is showing indications of a buy signal. While the company appears to have successfully executed its turnaround strategy, market observers are now watching to see if Lyft can sustain this positive momentum through the crucial holiday quarter.
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