Q4 2025 Lyft Inc Earnings Call

February 10, 2026

Speaker #1: Good afternoon, everyone. This is Erin Brewer. Welcome to LYFT's fourth quarter and full year 2025 earnings call. As a reminder, this conference call is being recorded.

Erin Brewer: Good afternoon, everyone. This is Erin Brewer. Welcome to Lyft's Q4 and full year 2025 earnings call. As a reminder, this conference call is being recorded. Before we start, I'd like to take a moment to share an update. Aurelien Nolf has accepted a new role and will be leaving Lyft. On behalf of David and myself, we are incredibly grateful for his contributions, and we wish him every success in his next chapter. I'm also pleased to welcome Erin Roome to the call today. Erin joined us in September 2024 as a senior director on our investor relations team, bringing a wealth of professional experience in investor relations. She's played an instrumental role in shaping our program since she joined, and I'm delighted that she'll be stepping in as Lyft's new head of investor relations. You're all in great hands. Turning over to you, Erin.

Speaker #1: Before we start, I'd like to take a moment to share an update. Aurelien Nolf has accepted a new role and will be leaving Lyft.

Speaker #1: On behalf of David and myself, we are incredibly grateful for his contributions, and we wish him every success in his next chapter. I'm also pleased to welcome Erin Rome to the call today.

Erin Brewer: Erin joined us in September 2024 as a senior director on our investor relations team, bringing a wealth of professional experience in investor relations. She's played an instrumental role in shaping our program since she joined, and I'm delighted that she'll be stepping in as Lyft's new head of investor relations. You're all in great hands. Turning over to you, Erin.

Speaker #1: Erin joined us in September 2024 as a senior director on our investor relations team bringing a wealth of professional experience in investor relations. She's played an instrumental role in shaping our program since she joined, and I'm delighted that she'll be stepping in as LYFT's new head of investor relations.

Speaker #1: You're all in great hands. Turning over to you, Erin.

Speaker #2: Thanks, Erin. I just want to take a moment to echo the same thoughts. We are so proud of our friend and our colleague, and we'll be rooting for him and his new role.

Q4 2025 Lyft Inc Earnings Call

Request a DemoDemo

LYFT

Lyft

Earnings

Q4 2025 Lyft Inc Earnings Call

LYFT

Tuesday, February 10th, 2026 at 10:00 PM

Transcript

No Transcript Available

No transcript data is available for this event yet. Transcripts typically become available shortly after an earnings call ends.

Want AI-powered analysis? Try AllMind AI →

Erin Rheaume: Thanks, Erin. I just want to take a moment to echo the same thoughts. We are so proud of our friend and our colleague, and we'll be rooting for him and his new role. Now let's dive in. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer. As a reminder, our full prepared remarks are available on the IR website, and we'll use this time to answer your questions. We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, financial and operating results, trends in our marketplace, and guidance. These statements are subject to risk and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials and in our recent SEC filings.

Speaker #2: Now let's dive in. On the call today, we have our CEO, David Risher, and our CFO, Erin Brewer, as a reminder, our full prepared remarks are available on the IR website and will use this time to answer your questions.

Speaker #2: We'll make forward-looking statements on today's call, including statements relating to our business strategy and performance, partnerships, financial and operating results, trends in our marketplace, and guidance.

Speaker #2: These statements are subject to risk and uncertainties. They could cause our actual results to defer materially from those projected or implied during this call.

Erin Rheaume: These statements are subject to risk and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. These factors and risks are described in our earnings materials and in our recent SEC filings.

Speaker #2: These factors and risks are described in our earnings materials and in our recent SEC filings. All of our forward-looking statements that we made today are based on a belief as of today, and we disclaim any obligation to update any forward-looking statements except as required by law.

Erin Rheaume: All of our forward-looking statements that we made today are based on a belief as of today, and we disclaim any obligation to update any forward-looking statements except as required by law. Additionally, today we're going to discuss customers. For Rideshare North America, there are generally two customers in every car. The driver is Lyft's customer, and the rider is the driver's customer. We care about both. Our discussion today will also include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliations of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website. With that, I'll pass the call to David.

Speaker #2: Additionally, today we're going to discuss customers. For rideshare in North America, there are generally two customers in every car. The driver is LYFT's customer, and the rider is the driver's customer.

Speaker #2: We care about both. Our discussion today will also include non-GAAP financial measures, which are not substitutes for GAAP results, reconciliations of our historical GAAP to non-GAAP results can be found in our earnings materials, which are available on our IR website.

Speaker #2: And with that, I'll pass the call to David.

Speaker #3: Thank you, Erin. Thank you, Erin. Aurelien, I'll get back to you later. Q4 delivered accelerated gross bookings growth and record profitability, closing out another incredible year with 51.3 million riders taking 946 million rides.

David Risher: Thank you, Erin. Thank you, Erin. Aurelien, I'll get back to you later. Q4 delivered accelerated gross bookings growth and record profitability, closing out another incredible year with 51.3 million riders taking 946 million rides. In fact, in the time it took me to say that sentence, almost 400 rides started on the road or in the bike lane. Wow, that's 30 rides a second. That's a ton. As I reflect on this year, I am extraordinarily proud of what Lyft's team around the world has accomplished. We launched best-in-class, customer-obsessed products and partnerships. We expanded into Europe and into the world of chauffeuring, and we have positioned ourselves in the center of the trillion-dollar autonomous vehicle revolution. We did all this and more while tracking relentlessly towards our 2027 goals we outlined at our investor day back in 2024.

Speaker #3: In fact, in the time it took me to say that sentence, almost 400 rides started on the road or in the bike lane. Wow, that's 30 rides a second.

Speaker #3: That's a ton. As I reflect on this year, I am extraordinarily proud of what Lyft's team around the world has accomplished. We launched best-in-class, customer-obsessed products and partnerships.

Speaker #3: We expanded into Europe and into the world of chauffeuring. And we have positioned ourselves in the center of the trillion-dollar autonomous vehicle revolution. We did all this and more while tracking relentlessly towards our 2027 goals we outlined in our investor day back in 2024.

Speaker #3: That's $25 billion in gross bookings, a 4% adjusted EBITDA margin, and free cash flow of over $1 billion. Before we jump into our results—because I know many of you are financially minded on this call—here are two life hacks I highly recommend, both involving Lyft.

David Risher: That's $25 billion in Gross Bookings, 4% Adjusted EBITDA margin, and free cash flow of over $1 billion. Before we jump into our results, because I know many of you are financially minded on this call, here are two life hacks I highly recommend, both involving Lyft. First, yesterday we launched Lyft Teen, a reliable, affordable way for the U.S.'s 40 million teens to get what they all want, which is independence, with safety prioritized at every step of the way. Compare a $20 Lyft ride to the thousands of dollars of annual cost of insurance, gas, and wear and tear in your car, and you'll understand why it's such a great way for your teen to get around. And second, a recent independent study highlighted that riders can save about $177 a year just by checking both rideshare apps before booking.

Speaker #3: First, yesterday we launched LYFT In, a reliable, affordable way for the U.S.'s 40 million teens to get what they all want, which is independence.

Speaker #3: With safety prioritized at every step of the way, compare a $20 Lyft ride to the thousands of dollars in annual costs for insurance, gas, and wear and tear on your car, and you'll understand why it's such a great way for your teen to get around.

David Risher: Compare a $20 Lyft ride to the thousands of dollars of annual cost of insurance, gas, and wear and tear in your car, and you'll understand why it's such a great way for your teen to get around. And second, a recent independent study highlighted that riders can save about $177 a year just by checking both rideshare apps before booking.

Speaker #3: And second, a recent independent study highlighted that riders can save about $177 a year just by checking both rideshare apps before booking. Now more than ever, there are more reasons to check LYFT.

David Risher: Now more than ever, there are more reasons to check LYFT. All right, with that, let's get to your questions.

Speaker #3: All right, with that, let's get to your questions.

Speaker #2: Great. A little housekeeping. If you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application.

Erin Rheaume: Great. A little housekeeping. If you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application. When you're called on, please unmute your line and ask your question. Please keep it to one, and we'll pause for a moment to assemble the queue. Okay. Our first question comes from Eric Sheridan with Goldman Sachs.

Speaker #2: When you're called on, please unmute your line and ask your question. Please keep it to one, and we'll pause for a moment to assemble the queue.

Speaker #2: Okay. Our first question comes from Eric Sheridan with Goldman Sachs.

Speaker #4: Thanks so much for taking the question. Maybe a two-parter, if I can. Looking backwards first, we'd love to understand the team's appreciation of what worked this year on sort of the product innovation side of the equation that drove elements of volume and user growth across the platform.

Eric Sheridan: Thanks so much for taking the question. Maybe a two-parter if I can. You know, looking backwards first, you know, would love to understand the team's appreciation of what worked this year on sort of the product innovation side of the equation that drove elements of volume and user growth across the platform. And then how does that align with some of the strategic priorities you're most excited about that could continue sort of the growth path as we think forward over the next 12 months? Thanks so much.

Speaker #4: And then, how does that align with some of the strategic priorities you're most excited about that could continue sort of the growth path as we think forward over the next 12 months?

Speaker #4: Thanks so much.

Speaker #3: Sure. Hey, Eric. It's David. Let me see if I can take back questions. It's a nice, big-picture question. So, I mean, first, maybe just sort of to underscore the premise there.

David Risher: Sure. Hey, Eric. It's David. Let me see if I can take that question. It's a nice big picture question. So, I mean, first, maybe just sort of to underscore the premise there. I mean, gosh, our results are impressive. I guess this is a time to brag for a second. You know, we had gross bookings growth, obviously, you know, 19% year-over-year, which is pretty extraordinary. And that accelerated. We have driver hours that are higher than ever. I think it's our 12th highest, our 12th consecutive quarter of record driver hours. We had active riders that grew 18% year-over-year. Obviously, we had our most profitable quarter ever, printed over $1 billion in cash. So those are good results. Okay. So where did they come from? Well, this is not going to surprise you at all.

Speaker #3: I mean, gosh, our results are impressive. I guess this is the time to brag for a second. We had gross bookings growth, obviously, 19% year-on-year.

Speaker #3: Which is pretty extraordinary. And that accelerated. We have driver hours that are higher than ever. I think it's our 12th highest or 12th consecutive quarter of record driver hours.

Speaker #3: We had active riders that grew 18% year on year. Obviously, we had our most profitable quarter ever, printed over a billion dollars in cash.

Speaker #3: So those are good results. Okay. So where did they come from? Well, this is not going to surprise you at all. Customer obsession is what drives our profitable growth.

David Risher: Customer obsession is what drives our profitable growth, and I think I feel more strongly about that than ever. And let me use that as a way to kind of pivot to the next thing. If you think of our addressable market for a second, think of the 160 billion rides in the US and the same number in Europe, because, of course, now we're a European operator, very important. That's 300 billion rides in our addressable market. Let's say let's cut that in third, just to be super conservative, call it 100 billion, just to make the math super easy. And remember that we do maybe 1 billion and our competition maybe, you know, in total does maybe 3 or 4 billion. So maybe that's 5 billion out of the 100 billion. Okay.

Speaker #3: And I think I feel more strongly about that than ever. And let me use that as a way to kind of pivot to the next thing.

Speaker #3: If you think of our addressable market for a second, think of the 160 billion rides in the U.S., and the same number in Europe—because, of course, now we're a European operator. Very important.

Speaker #3: That's 300 billion rides in our addressable market. Let's say, let's cut that in a third, just to be super conservative—call it 100 billion, just to make the math super easy.

Speaker #3: And remember that we do maybe a billion in our competition, maybe in total does maybe three or four billion. So maybe that's 5 billion out of the 100 billion.

Speaker #3: Okay. So that's 5% penetrated, which shows there is an enormous amount of headroom in this market, an enormous amount of headroom in this market.

David Risher: So that's 5% penetrated, which shows there is an enormous amount of headroom in this market, an enormous amount of headroom in this market. So what does that lead you to do? What it leads you to do is to focus on your customers, not your competitors, because if you focus on your competitors, you're just fighting over the 5%, not the 95%. You make sure your TAM is as big as possible. We think our operational excellence has frankly given us the foundation, and our financial strength, I guess, to be overseas as well. So you can kind of see how that's playing out with our acquisition of FREENOW and the growth of that. And so just to focus on that for a second, you know, you'll see more growth there. You'll see more growth there.

Speaker #3: So what does that lead you to do? What it leads you to do is to focus on your customers, not your competitors, because if you focus on your competitors, you're just fighting over the 5%, not the 95%.

Speaker #3: You make sure your TAM is as big as possible. We think our operational excellence has, frankly, given us the foundation and our financial strength, I guess, to be overseas as well.

Speaker #3: So you can kind of see how that's playing out with our acquisition of Free Now and the growth of that. And so just to focus on that for a second, you'll see more growth there.

Speaker #3: You'll see more growth there. You'll see a lot of the resources that we put perfecting our U.S. marketplace than Canada marketplace. You'll see that going to Europe.

David Risher: You'll see a lot of the resources that we put, you know, perfecting our US marketplace and Canada marketplace. You'll see that, going to Europe. So that's certainly a huge, huge growth factor. So then the second area are our partnerships. We know we can't do this alone. Nobody can. You can't get to $300 billion, you know, $100 billion, let alone $300 billion, you know, alone. That's, that's nuts. So if you look at partnerships, like existing partnerships like DoorDash, that's our most successful partnership ever. We have millions of people who are now kind of cross-linked on the platforms, and there's still a huge, huge headroom there. And then United is even earlier. You know, United is just a couple of months old already. I think people have earned over 100 million miles.

Speaker #3: So that's certainly a huge, huge growth factor. So then a second area, are our partnerships. We know we can't do this alone. Nobody can.

Speaker #3: You can't get to $300 billion, $100 billion, let alone $300 billion alone. That's nuts. So if you look at partnerships, like existing partnerships like DoorDash, that's our most successful partnership ever.

Speaker #3: We have millions of people who are now kind of cross-linked on the platforms, and there's still a huge, huge headroom there. And then United is even earlier.

Speaker #3: United is just a couple of months old already. I think people have earned over, what is it, 100 million miles. Actually, I just looked at 115 million miles as of a couple of minutes ago on the United on the Lyft platform, getting United MileagePlus miles.

David Risher: Actually, I just looked at 115 million miles as of a couple of minutes ago on the United, on the Lyft platform, you know, getting United MileagePlus miles. So that and you look at Bilt and you look at Chase and so on and so forth. I mean, there's a lot of headroom there in partnerships. So that's a second area. A third area, of course, has to be around margin expansion, right? So rideshare business is not a high-margin business inherently. You've got riders and drivers kind of competing for the same dollars. And so we've done a really good job, I think, of sort of moving up market. And, you know, TBR, obviously, that acquisition, that's huge growth in front of us there, in terms of margin.

Speaker #3: So that and you look at Builds and you look at Chase and so on and so forth. I mean, there's a lot of headroom there in partnerships.

Speaker #3: So that's a second area. A third area of course has to be around margin expansion, right? So rideshare business is not a high-margin business inherently.

Speaker #3: You've got riders and drivers kind of competing for the same dollars. And so we've done a really good job, I think, of sort of moving up market.

Speaker #3: And TBR, obviously, that acquisition, that's a huge growth in front of us there. In terms of margin, but even our basic kind of on-demand high-margin modes have grown 50% year on year.

David Risher: But even our basic kind of on-demand high-margin modes have grown, you know, 50% year-over-year. That's, again, just getting started. We still are fairly underpenetrated there. Okay. I'll mention two more things. On the, I can mention drivers, but let's move on. Let's talk about Lyft Ads for a second. Lyft Ads, you know, two years ago when we were doing investor day, it was an idea, you know, it was an early concept. Now, you know, we've done exactly what we said we wanted to do, which is reach a $100 million run rate, exit rate from Q4. That's wonderful. If you've been in the Bay Area, you'll see, you know, Gemini all over the place on Lyft bikes. You'll see Adobe also all over the place.

Speaker #3: And that’s, again, just getting started. We still are fairly under-penetrated there. Okay. I’ll mention two more things. On the how, I could mention drivers, but let’s move on.

Speaker #3: Let's talk about LYFT ads for a second. LYFT ads, two years ago when we were doing Investor Day, it was a it was an idea.

Speaker #3: It was an early concept. Now, we've done exactly what we said we wanted to do, which is reach a $100 million run rate, exit rate from Q4.

Speaker #3: That's wonderful. If you've been in the Bay Area, you'll see Gemini all over the place on LYFT bikes. You'll see Adobe also all over the place.

Speaker #3: You'll see Jurassic Park cars on. Which is an Xfinity cross-promotion that's also being advertised in the app. So anyway, a lot of ways for brands to kind of connect with their customers.

David Risher: You'll see Jurassic Park cars on Xfinity, which is Xfinity cross-promotion, that's also being advertised in the app. So anyway, a lot of ways for brands to kind of connect with their customers, super innovative ways. And the ads business is just going great, and it's got great leadership and a lot of focus there. And then, of course, I have to talk about AVs. Now, AVs are not going to be material in 2026, you know, from a financial perspective. But if you look at the long-term growth of rideshare and again, you remember that 5% penetrated compared to the $300 billion, AVs are going to expand the TAM of rideshare. There's just no doubt about it. We can come back to that in a couple of seconds.

Speaker #3: Super innovative ways. And the ads business is just going great, and it's got great leadership and a lot of focus there. And then, of course, I have to talk about AVs.

Speaker #3: Now, AVs are not going to be material in 2026 from a financial perspective. But if you look at the long-term growth of rideshare—and again, you remember that it's 5% penetrated compared to the $300 billion.

Speaker #3: AVs are going to expand the TAM of rideshare; there's just no doubt about it. We can come back to that in a couple of seconds.

Speaker #3: But that, I think, every time we add AVs to the platform, you'll see incremental growth on the top line. And over time, you'll see cost reduction as well.

David Risher: But that, I think, you know, every time we add AVs to the platform, you'll see incremental, you know, growth on the top line. And over time, you'll see cost reduction as well. So I'm sorry, I'm forgetting something. I mean, those are the big things that are really on our mind.

Speaker #3: So, I'm sorry—I'm forgetting something. I mean, those are the big things that are really on our mind.

Speaker #2: Great. Thank you.

Eric Sheridan: Great. Thank you.

Speaker #3: Sure. Next on the call

David Risher: Sure.

Erin Rheaume: Next on the call will be Doug Anmuth with JPMorgan.

Speaker #1: Next will be Doug Anmuth with JPMorgan.

Speaker #2: Great. Thanks for taking the questions. Just for one cue, you talk about your guidance for growth bookings accelerating at the high end. But the margin more in line with one cue from a year ago.

Doug Anmuth: Great. Thanks for taking the questions. Just for Q1, you talk about your guidance for Gross Bookings accelerating at the high end, but the margin more in line with Q1 from a year ago. So just hope you could talk a little bit about some of the key investments you're making and what's happening there with margin and Q1. And then, David, can you talk more about Flexdrive and the, kind of 20% cost efficiencies that you're seeing there? What are some of the drivers and how do you compare that to other fleet operators? Thanks.

Speaker #2: So just hoping you could talk a little bit about some of the key investments you're making and what's happening there with margin in Q1.

Speaker #2: And then David, can you talk more about FlexDrive and the kind of 20% cost efficiencies that you're seeing there? What are some of the drivers, and how do you compare that to other fleet operators?

Speaker #2: Thanks.

Speaker #3: Sure.

David Risher: Sure. Yeah, Erin, why don't you take the first for sure?

Speaker #3: Yeah, Aaron, why don't you take the first, for sure?

Speaker #1: Yeah, sure. Hi, Doug. So, yeah, if I think about the Q1 guide, you've got it in terms of gross bookings growth at the top line.

Erin Brewer: Yeah, sure. Hi, Doug. So yeah, if I think about the Q1 guide, you've got it in terms of gross bookings growth at the top line. And that's really fueled by the marketplace, you know, running extremely well, very healthy, you know, competitive, fast ETAs, etc. David just mentioned our partnership. We continue to see strong growth across all of our markets, including low-scale markets, and then also high-value modes, which are growing at a very rapid rate. And of course, we've got FREENOW in the mix. So those are the things that underpin the top line. As I think about our profitability for the quarter, you know, I think we're right where we need to be overall. On a year-over-year comparison, if you recall last year in Q1, there was a favorable non-recurring item in the quarter.

Speaker #1: And that's really fueled by the marketplace running extremely well. Very healthy competitive fast ETAs, et cetera. David just mentioned our partnership. We continue to see strong growth across all of our markets, including low-scale markets.

Speaker #1: And then also high-value modes, which are growing at a very rapid rate. And of course, we've got Free Now in the mix. So those are the things that underpin the top line.

Speaker #1: As I think about our profitability for the quarter, I think we're right where we need to be overall on a year-over-year comparison. If you recall, last year in Q1, there was a favorable non-recurring item in the quarter.

Speaker #1: So absent that, we've got really strong profit growth year-over-year. And I think we're set up well as we look into—

Erin Brewer: So absent that, we've got really strong profit growth year over year over year. And I think we're set up well, as we look into 2026.

Speaker #1: 2026. And then let me on.

David Risher: Then let me on your second, Doug. I think Erin and I will actually tag team on this one. I want to zoom out just one click, to talk about the cost of AVs versus, let's say, the cost of, of kind of, driver-driven rideshare. So the first thing to think about, and I'm going to go big picture on this, because I know AVs are very much on people's minds. So let's just start from the total top. You know, we have so much confidence that this is a trillion-dollar, you know, trillions-maybe-dollar opportunity for the rideshare market. So why would that be? The first thing is, you know, AVs will expand the TAM. And this isn't just speculation. This is what we see happening in San Francisco, where you have hundreds of thousands of rides being driven by Waymo.

Speaker #3: your second, Doug. I think Aaron and I will actually tag team on this one. And I want to zoom out just one click. To talk about the cost of AVs versus, let's say, the cost of kind of driver-driven rideshare?

Speaker #3: So the first thing to think about, and I'm going to go big picture on this because I know AVs are very much on people's minds.

Speaker #3: So let's just start from the total top. We have so much confidence that this is a trillion-dollar, trillions-maybe-dollar opportunity for the rideshare market.

David Risher: You know, we have so much confidence that this is a trillion-dollar, you know, trillions-maybe-dollar opportunity for the rideshare market. So why would that be? The first thing is, you know, AVs will expand the TAM. And this isn't just speculation. This is what we see happening in San Francisco, where you have hundreds of thousands of rides being driven by Waymo.

Speaker #3: So why would that be? The first thing is, AVs will expand the TAM. And this isn't just speculation. This is what we see happening in San Francisco, where you have hundreds of thousands of rides being driven by Waymo.

Speaker #3: But you see us growing at a nice clip. And so what that suggests is that those rides are largely incremental, that the pie is growing.

David Risher: You see us growing, you know, at a nice clip. So what that suggests is that those rides are largely incremental, that the pie is growing. This is not surprising. When you have an interesting new product like a self-driving car, which is, you know, safe, reliable, and so on and so forth, that obviously opens up the rideshare market to new use cases. Okay. Then the costs will go down. Why? Well, again, that's probably fairly obvious, but let's sort of lay it out. You would expect, I mean, aside from obviously not, you know, paying drivers in the same way, but you would expect insurance costs to go down in particular as the safety profile of AVs gets proven out. There's a lot of data out there right now. Different people maybe have different perspectives.

Speaker #3: And this is not surprising. When you have an interesting new product like a self-driving car, which is safe and reliable and so on and so forth, that obviously opens up the rideshare market to new use cases.

Speaker #3: Okay. And then the costs will go down. Why? Well, again, that's probably fairly obvious, but let's sort of lay it out. You would expect I mean, aside from obviously not paying drivers in the same way, but you would expect insurance costs to go down in particular as the safety profile of AVs gets proven out.

Speaker #3: There's a lot of data out there right now. Different people maybe have different perspectives, but broadly speaking, I think that most people would agree, over time, insurance will go down as safety improves.

David Risher: But broadly speaking, I think that most people would agree over time, insurance will go down as safety improves. Those are the two big drivers. So we look at those. And again, this is at the sector level, and then we'll come to FlexDrive in a second. We look at those as providing cost by 2030, right? So many years out, after this technology has proven itself, you know, maybe a 20% cost savings on a per-mile basis versus, you know, just today. Now, the last thing I'll say before I turn it over to Erin is, remember, that's a 20% savings. It's wonderful, but it's on maybe a 5% to 10%, you know, base, right? That we are building a hybrid network, a hybrid network. This is so important.

Speaker #3: Those are the two big drivers. So we look at those and again, this is the sector level, and then we'll come to FlexDrive in a second.

Speaker #3: We look at those as providing by 2030, right? So, some years out, after this technology has proven itself—yeah, yeah, yeah—maybe a 20% cost savings on a per-mile basis versus just today.

Speaker #3: Now, the last thing I'll say before I turn it over to Aaron is, remember, that's a 20% savings. It's wonderful, but it's on maybe a 5% to to 10% base, right?

Speaker #3: We are building a hybrid network, a hybrid network. This is so important. You cannot build an AV only I can't say you can't build one, but of course, you can.

David Risher: You cannot build an AV only. Can't say you can't build one, but of course you can. But if you build one, what you won't have is, you know, millions of drivers on the platform who can pick you up at, you know, 5:00PM in the afternoon during rush hour or 9:00AM in the morning or right after a concert. We see a 20-to-1 swing over the course of, you know, a couple of days, from, you know, middle of the night to rush hour. And that's very, very difficult to handle. In fact, frankly, impossible to handle just with AVs. And then, of course, you have people who, you know, want to help with their luggage and so forth and so on. So a hybrid network, we think, is the dominant network.

Speaker #3: But if you build one, what you won't have is millions of drivers on the platform who can pick you up at 5:00 in the afternoon during rush hour or 9:00 in the morning or right after a concert.

Speaker #3: We see a 20 to 1 swing over the course of a couple of days. From middle of the night to rush hour. And that's very, very difficult to handle.

Speaker #3: In fact, frankly, it's impossible to handle just with AVs. And then, of course, you have people who want help with their luggage and so forth and so on.

Speaker #3: So a hybrid network, we think, is the dominant network. Within that, we think AVs are going to be positive because they expand the market and because they lower costs.

David Risher: Within that, we think AVs are going to be now positive because they expand the market and because they lower costs. Now, you asked about Flexdrive. I'm going to turn it over to Erin to talk about the economics that that brings to the conversation.

Speaker #3: Now, you asked about FlexDrive. I'm going to turn it over to Aaron to talk about the economics that that brings to the conversation.

Speaker #1: Yeah, sure. So we're kind of setting the stage here as we think multiple years down the road—call it 2030, as David just mentioned. We think the hybrid market will be sort of the most efficient way to deploy. Our goal is to be the best partner there.

Erin Brewer: Yeah, sure. So we're kind of setting the stage here as we think multiple years down the road, call it 2030. You know, as David just mentioned, we think the hybrid market will be sort of the most efficient way to deploy. Our goal is to be the best partner there. And then, obviously, when you've got that hybrid network, you've got drivers, you've got autonomous vehicles. There's obvious difference in costs between the two of those, which David just articulated. And so, you know, in, in say the 2030 world, if you compare those costs per mile, we think, as David mentioned, about 20% difference. Okay. So, then you think about Flexdrive, right? Flexdrive is a fantastic asset for us in this whole ecosystem. And our goal with it is to be the most efficient way to deploy.

Speaker #1: And then, obviously, when you've got that hybrid network—you've got drivers, you've got autonomous vehicles—there's an obvious difference in cost between the two of those, which David just articulated.

Speaker #1: And so in, say, the 2030 world, if you compare those costs per mile, we think, as David mentioned, about 20% difference. Okay. So then you think about FlexDrive, right?

Speaker #1: FlexDrive is a fantastic asset for us in this whole ecosystem. And our goal with it is to be the most efficient way to deploy.

Speaker #1: And we see that driving advantages as we look ahead, as we think about our own long-range plans in a few ways. Number one, just our existing experience with fleet management at scale and, importantly, specific to rideshare—so understanding high-mileage, long-lifetime assets and managing these vehicles very efficiently—is going to provide an advantage.

Erin Brewer: And we see that driving advantages as we look ahead, as we think about our own long-range plans in a few ways. Number one, just our existing experience with fleet management at scale and importantly, specific to rideshare. So understanding high mileage, long lifetime assets and managing these vehicles very efficiently is going to provide an advantage. And then we look at how we can optimize that, leveraging our proprietary software for rideshare, which actually makes a huge difference when you think about minimizing empty miles or scheduling that maintenance at a time which is optimal, where you can still maintain that really efficient utilization of the asset. And then obviously, with this capability, we've got a team of experts. There's no middleman.

Speaker #1: And then we look at how we can optimize that, leveraging our proprietary software for rideshare, which actually makes a huge difference when you think about minimizing empty miles or scheduling that maintenance at a time which is optimal, where you can still maintain that really efficient utilization of the asset.

Speaker #1: And then, obviously, with this capability, we've got a team of experts. There's no middleman. And so, if you think about that 20% cost-per-mile differential out, say, in 2030, we think we can drive improvement on top of that.

Erin Brewer: So if you think about that 20% cost per mile differential out, you know, say in 2030, we think we can drive improvement on top of that. So that 20% becomes 24%, 25%. And so, that's the way we see it. That's how we see some of our advantages and why we think we're going to be just the best partner out there.

Speaker #1: So that 20% becomes 24%, 25%. And so that's the way we see it. That's how we see some of our advantages, and why we think we're going to be just the best partner out there.

Speaker #1: there. Okay.

Erin Rheaume: Okay. Awesome. Next question. We have John Blackledge from TD Cowen.

Speaker #2: Awesome. Next question. We have John Blackledge from TD

Speaker #2: Cowan. Great.

John Blackledge: Great. Thank you. Yeah, could you talk about the Q4 2025 rides growth, relative to your expectations, and how should we think about rides growth in the context of the Q1 2026 Gross Bookings guide? And is the heavy promotional activity that you saw in Q4 extending into Q1 2026? Thank you.

Speaker #4: Thank you. Yeah. Could you talk about the Q4 2025 rides growth relative to your expectations, and how should we think about rides growth in the context of the Q1 2026 gross bookings guide?

Speaker #4: And is the heavy promotional activity that you saw in 4Q extending into 1Q26? Thank you.

Speaker #3: Awesome. Hey, John. It's David. Well, Aaron and I will kind of tag team on that a little bit too. So I think maybe the big picture I would say is we really—I can't say this enough.

David Risher: Awesome. Hey, John. It's David. We'll kind of, Erin and I will tag team on that a little bit too. So I think maybe the big picture, I would say, is we really, I can't say this enough. We are a very disciplined operator. And the reason I say this is because when you're, you know, when you identify as disciplined, it means you have to decide what you're going to focus on. And we have decided, quarter after quarter, and I think you've seen this, that we're going to focus on our top line and our bottom line. That's how we're going to run this business for our shareholders. So when you do that, then that's great because it gives you real clarity. Okay. So what does that also mean?

Speaker #3: We are a very disciplined operator. And the reason I say this is because when you're when you identify as disciplined, it means you have to decide what you're going to focus on.

Speaker #3: And we have decided at quarter after quarter, and I think you've seen this, that we're going to focus on our top line and our bottom line.

Speaker #3: That's how we're going to run this business for our shareholders. So when you do that, then that's great because it gives you real clarity.

Speaker #3: Okay. So what does that also mean? It means that when you see some kind of promotional gimmickery or whatever it is within a quarter, you sort of look at it and you say, "Well, okay.

David Risher: It means that when you see some, you know, kind of promotional, you know, gimmickery or whatever it is within a quarter, you sort of look at it and you say, "Well, okay, whatever. It's going to happen." But meanwhile, what we're really focused on is making sure we can deliver on the top and the bottom in a customer-obsessed way. You don't get tempted by the marginal ride that's maybe not profitable, whatever, the promotional thing, whatever. You do these different things. So that's kind of the way we looked at Q4. It was a little unexpected, but, you know, again, we were resilient with this sort of stuff. Like, we kind of look at it and we say, "Okay, fine.

Speaker #3: Whatever. It's going to happen. But meanwhile, what we're really focused on is making sure we can deliver on the top and the bottom in a customer-obsessed way. You don't get tempted by the marginal ride that's maybe not profitable, whatever the promotional thing, whatever.

Speaker #3: You do these different things, so that's kind of the way we looked at Q4. It was a little unexpected, but again, we were resilient with this sort of stuff.

Speaker #3: We kind of look at it and we say, "Okay. Fine. We deal with that." To answer maybe a question you didn't ask, but I'll answer it anyway about Q4.

David Risher: We deal with that." To answer maybe a question you didn't ask, but I'll answer it anyway about Q4, we didn't see any particular consumer softness, you know, nothing like that. You know, remember, we're again, I know you didn't ask the question, but I'll just sort of state the thing anyway. You know, we're doing, you know, millions of four million people, you know, every single day are relying on us in one way or another to, you know, to get where they need to go, you know, commuters and people going to work and so forth and so on. So we feel real strength there, and that's a real blessing. As long as we can continue to deliver for them, that's incredible.

Speaker #3: We didn't see any particular consumer softness, nothing like that. Remember, we're—again, I know you didn't ask the question, but I'll just sort of state the thing anyway.

Speaker #3: We're doing millions, and 4 million people every single day are relying on us in one way or another to get where they need to go.

Speaker #3: Commuters and people going to work and so forth and so on. So we feel real strength there. And that's a real blessing as long as we can continue to deliver for them that's incredible.

Speaker #3: And you can see that reflected in our record active riders, for example, which we think is super important. Which then leads me to Q1.

David Risher: And you can see that reflected in our record Active Riders, for example, which we think is super important. Which then leads me to Q1. And this is where I'll finish. If you look at Q1, and Erin, again, can talk a little bit about if we've seen any promotional stuff or whatever. But if you look at Q1, we're super, super well set up. Why? Because we've got, you know, more active riders than ever, you know, up 50% from, you know, year-on-year type thing. And then, and then we're operating incredibly well. And here's the stat that I'll share with you that I'm super proud of that kind of reflects how far we've come. If we look at our Super Bowl performance just from a couple of days ago when compared to where we were last year, Super Bowl, of course, is an incredible day.

Speaker #3: And this is where I'll finish. If you look at Q1, and Aaron again can talk a little bit about if we've seen any promotional stuff or whatever.

Speaker #3: But if you look at Q1, we're super, super well set up. Why? Because we've got more active riders than ever—up 50% from year-on-year type thing.

David Risher: And then, and then we're operating incredibly well. And here's the stat that I'll share with you that I'm super proud of that kind of reflects how far we've come. If we look at our Super Bowl performance just from a couple of days ago when compared to where we were last year, Super Bowl, of course, is an incredible day.

Speaker #3: And then we're operating incredibly well. And here's the stat that I'll share with you that I'm super proud of, that kind of reflects how far we've come.

Speaker #3: If we look at our Super Bowl performance just from a couple of days ago, we compare it to where we were last year. Super Bowl, of course, is an incredible day.

Speaker #3: It has crazy peaks and crazy values depending on how the game is going and when it ends, and so forth, anyway. We delivered about 15% more rides year-over-year.

David Risher: It has crazy peaks and crazy values depending on, you know, how the game is going and when it ends and so forth. Anyway, we delivered about 15% more rides year on year. We did it better than we did last year, by which I mean we had lower surge pricing by about 20%, which is enormous, incredible affordability thing. We picked people up faster. Our ETAs were better. So we provide better service, you know, even as the prices were lower, you know, net of all the surge pricing. So anyway, all that is to say, when we look at, you know, our Q4 performance and then how we're set up for Q1, we feel really good about it. And then, Erin, if you want to add anything more about the promotional of what we've seen.

Speaker #3: And we did it better than we did last year by which I mean we had lower surge pricing by about 20%, which is enormous and incredible affordability thing.

Speaker #3: And we picked people up faster. Our ETAs were better. So we provide better service even as the prices were lower net of all the surge pricing.

Speaker #3: So anyway, all that is to say, when we look at the Q4 performance and then how we're set up for Q1, we feel really good about it.

Speaker #3: And then, Aaron, if you want to add anything more about the promotional of what we've—

Speaker #3: seen. Yeah.

Erin Brewer: Yeah, sure. You know, David, you mentioned a couple of really important things in terms of optimizing our business for the metrics that that matter, right? At the end of the day, our goal is to engage and retain as many drivers and riders as possible on the platform. I think we are doing an incredible job of that. Our Active Riders growth in Q4 was 18%. That's a record and the highest. We also saw the highest and record retained riders in the quarter. That's a fantastic leading indicator. It's growing both quarter-over-quarter and year-over-year. Then, of course, really strong Gross Bookings and margin performance in the quarter. We did see, as David mentioned, that heightened promotional activity was weighted a little bit toward the back half of the quarter, you know, primarily across the lower end.

AllMind AI

AllMind AI

Q4 2025 Lyft Inc Earnings Call

Event Details

Lyft

Q4 2025 Lyft Inc Earnings Call

Open Event Documents

Search Transcript

Lyft

Q4 2025 Lyft Inc Earnings Call

Transcript

No Transcript Available