Lyft's weak adjusted core profit forecast, surprise 2025 loss send shares tumbling

Lyft forecast first-quarter adjusted core profit below expectations on Tuesday, hit by severe U.S. winter weather, seasonal cost pressures, and posted a surprise operating loss for 2025, sending ‌its shares down ⁠16% in ⁠after-hours trading.

The forecast marks a setback for the ride-hailing provider's comeback, fueled by a year of improving bookings ​growth, higher margins and expansion into new regions, and also overshadows a $1 billion share repurchase program.

The weaker ​adjusted profit outlook reflects the impact of Winter Storm Fern, which disrupted travel across large parts of the U.S., particularly the East Coast, while seasonal cost pressures also weighed on ​the projection.


California implemented changes that lower rideshare insurance costs statewide, ⁠effective January ‌1. However, the benefits from the change are expected to lag because ​the first quarter ​is seasonally weaker, with riders taking fewer trips and slower uptake ⁠of pricing improvements, CFO Erin Brewer said.

Lyft reported an operating ​loss of $188.4 million in 2025, compared with analysts' expectations for a ​profit of $33.3 million, according to Visible Alpha data.

The company expects adjusted core profit of $120 million to $140 million for the first quarter, below estimates of $139.4 million.

"Uber, Lyft's main competitor, is growing earnings much faster than Lyft. Uber's EPS growth is 20% while Lyft's is only 13.7%," said Andrew Rocco, stock strategist at Zacks Investment Research.

Lyft forecast gross bookings of $4.86 billion ‌to $5 billion, with the midpoint largely in line with expectations.

Riding on strong partnerships

Still, the fourth quarter was the company's most profitable on record, supported by ​stronger rider ​engagement and a growing mix ⁠of higher-value ride modes.

Revenue in the December quarter totaled $1.59 billion, after a $168 million hit from legal, tax and regulatory reserve changes and settlements.

Lyft generated $1.12 billion in free cash flow in ​2025, above estimates of $993.4 million, and reported adjusted core earnings of $154.1 million for the fourth quarter, topping expectations of $147.1 million, according to LSEG.

Growth was driven by expansion into Europe, premium and larger vehicle offerings, as well as partnerships.

About 25% of Lyft's rides in the fourth quarter were linked to a partnership, including strong momentum from its tie-up with DoorDash.