Lyft reported strong financial results for the first quarter ended March 31, 2025, achieving GAAP profitability for the first time with a net income of $2.57 million, or 1 cent per share, compared to a net loss of $31.54 million a year ago. Revenues grew 14% year-over-year to $1.45 billion, slightly below the $1.47 billion estimate.
The company saw significant operational improvements, with rides increasing 16% to 218.4 million and active riders growing 11% to 24.2 million, both reaching new highs. Gross bookings surged 13% to $4.16 billion, slightly exceeding the $4.15 billion estimate, marking the 16th consecutive quarter of double-digit year-over-year gross booking growth.
In a major capital allocation move, Lyft's board authorized boosting its share repurchase program to $750 million from $500 million, with plans to utilize $500 million over the next year, including $200 million in the next three months. This demonstrates confidence in the company's valuation and commitment to returning capital to shareholders.
Concurrently, activist investor Engine Capital announced it would end its campaign and withdraw its board nominees, citing the company's commitment to significant share repurchases. This resolution removes a governance overhang and signals alignment between management and a key investor on capital allocation strategy.
For the second quarter, Lyft anticipates rides growth in the mid-teens year-over-year and gross bookings between $4.41 billion and $4.57 billion. The company also reported strong free cash flow of $280.7 million for Q1, surpassing a $136.3 million estimate, further strengthening its financial position.
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