LYFT

Stephen W. Hope, Chief Accounting Officer of Lyft, Inc. (NASDAQ:LYFT), sold 5,982 shares of Class A Common Stock on August 27, 2026, according to a recent SEC Form 4 filing. Transaction value based on SEC Form 4 weighted average sale price ($17.34); post-transaction value based on August 27, 2026 market close ($17.35). What was the nature of this executive disposition?The sale was conducted under a Rule 10b5-1 trading plan that Stephen Hope established on September 4, 2025, which allows insiders to set up a pre-arranged schedule for selling stocks to avoid potential conflicts of interest, given their access to material non-public information. How does this impact the insider's total equity position?The disposal of 5,982 shares represents a minor adjustment to the position, and the insider maintains a significant direct equity stake in the company. What is the current market valuation of the remaining stake?Based on the August 28, 2026 market close price of $17.70, the remaining direct holdings are valued at approximately $5.3 million. Are there additional equity incentives involved?The filing indicates that the reported holdings include restricted stock units, which represent contingent rights to receive Class A Common Stock upon vesting. Lyft operates a comprehensive on-demand transportation platform offering ridesharing services, vehicle rentals through Express Drive, and consumer rental solutions across the United States and Canada, generating revenue primarily through commissions on ride transactions and rental services. The company operates a two-sided marketplace model that connects drivers with passengers, capturing value through platform fees while providing flexible earning opportunities for drivers and convenient mobility access for consumers. Lyft serves individual consumers seeking on-demand transportation and drivers seeking flexible earning opportunities, with a primary focus on urban and suburban markets across North America. Lyft is a leading mobility platform operator with a market cap of $6.7 billion and trailing 12-month revenues of $6.8 billion, demonstrating substantial scale within the on-demand transportation sector. The company leverages its multimodal network and technology infrastructure to differentiate itself in a competitive market, offering integrated solutions that address both consumer and driver needs across multiple transportation categories. With demonstrated profitability, Lyft has established a sustainable business model centered on platform efficiency and network effects. Chief Accounting Officer Stephen Hope's Aug. 27 sale of Lyft stock occurred at a time when shares moved higher after the company reported second-quarter earnings results that beat Wall Street revenue estimates. While Hope's timing was fortuitous, the sale was a non-discretionary transaction, executed as part of a pre-established Rule 10b5-1 plan. This means the disposition was scheduled in advance rather than being a market-timed investment decision. Hope retained nearly 300,000 shares post-transaction. The sizable equity stake ensures continued alignment with shareholder interests. Lyft reported excellent 23% year-over-year growth in Q2 gross bookings to $5.5 billion as the company exceeded a record 30 million global riders. This contributed to Lyft's sales rising 16% year over year to $1.8 billion. For the third quarter, the company estimates gross bookings to come in at $5.5 billion again or higher. Lyft is also partnering with Alphabet-owned Waymo to deliver autonomous ride hailing services, which started in Nashville this past June. Before you buy stock in Lyft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lyft wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 1, 2026. Robert Izquierdo has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Lyft. The Motley Fool has a disclosure policy. Lyft Chief Accounting Officer Sells Nearly 6,000 Shares After the Stock Moved Higher on Strong Earnings Results was originally published by The Motley Fool

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Lyft stock has delivered a strong 70.9% gain over the past three years, yet the current valuation checks still suggest the shares may be priced on the low side rather than fully reflecting that rebound. Over the last three years, Lyft has returned 70.9%, which puts a clear focus on whether the recent share price better reflects the business than it did in the past. Investor attention is likely to stay on how potential changes to rideshare regulation and driver classification can affect Lyft's long term earnings power, while legal and reputational issues linked to rider safety may weigh on the risk profile that investors apply to the stock. On Simply Wall St's broader checks, Lyft screens as cheap in most areas, with the stock judged undervalued on 5 of 6 measures according to this valuation score. The issue now is whether Lyft's current share price still leaves a reasonable margin between those valuation checks and the risks around regulation and safety. Find out why Lyft's 2.7% return over the last year is lagging behind its peers. The P/E ratio suits Lyft because the company is now generating positive earnings that give you a clearer anchor for valuation than revenue alone. On this measure, Lyft trades on a P/E of about 2.3x, which is far below the Transportation industry average of 34.7x and the peer group average of 51.3x. That is also below the modelled fair P/E of 3.6x, which is based on what investors might typically pay given Lyft’s size, margins and risk profile. Despite ongoing headlines around safety lawsuits and regulatory lobbying in 2026, the current multiple indicates the market is pricing Lyft’s earnings well below both peers and this tailored fair ratio. If earnings remain positive, even a move closer to the 3.6x fair P/E would indicate that the market is currently marking Lyft on the cautious side. On the P/E multiple alone, Lyft stock appears undervalued compared with both its industry and a more tailored fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Lyft pick up where the valuation puzzle leaves off and spell out which paths for Lyft's future growth, margins and earnings would make the stock look materially cheaper or more expensive than it does today on the market. Rather than relying on a single multiple or model output, each Narrative lays out the assumptions that sit behind its view of fair value so you can compare those to Lyft's actual results as they are reported. Community views on Lyft could hardly be further apart, with one camp focused on expansion upside and the other on structural risks to demand and margins. Bull case: 10% undervalued Read the full Bull Case to see why Lyft could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why Lyft could be overvalued Do you think there's more to the story for Lyft? Head over to our Community to see what others are saying! For investors looking at Lyft today, the market multiple view still points to an undervalued stock, with the current P/E sitting well below both peers and the tailored fair ratio. The gap now hinges less on backward looking value checks and more on whether earnings stay positive and how much regulatory and safety risks ultimately bite into those earnings. The key question is whether this discount reflects an overly cautious market that could ease if sentiment improves, or whether it is a fair warning that those headline risks may prove more persistent than bulls expect. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LYFT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how gig economy stocks fared in Q2, starting with Lyft (NASDAQ:LYFT). The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech-enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away. The 6 gig economy stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 11.2% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6% since the latest earnings results. Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada. Lyft reported revenues of $1.84 billion, up 16.1% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and strong growth in its users. Interestingly, the stock is up 6.9% since reporting and currently trades at $17.42. We think Lyft is a good business, but is it a buy today? Read our full report here, it’s free. Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform. DoorDash reported revenues of $4.45 billion, up 35.6% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates and impressive growth in its requests. DoorDash delivered the biggest analyst estimate beat and fastest revenue growth in the group. The company reported 970 million service requests, up 27.5% year on year. The market seems happy with the results as the stock is up 7.2% since reporting. It currently trades at $222.10. Is now the time to buy DoorDash? Access our full analysis of the earnings results here, it’s free. Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services. Fiverr reported revenues of $97.78 million, down 10% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a decline in its buyers. Fiverr delivered the weakest guidance update and weakest full-year guidance update of the whole group. The company reported 2.7 million active buyers, down 20.6% year on year. As expected, the stock is down 20.8% since the results and currently trades at $9.18. Read our full analysis of Fiverr’s results here. Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done. Upwork reported revenues of $191.7 million, down 1.7% year on year. This result topped analysts’ expectations by 0.9%. However, it was a softer quarter as it recorded full-year EBITDA guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly. Upwork achieved the highest guidance raise and highest full-year guidance raise among its peers. The stock is down 11.7% since reporting and currently trades at $8.68. Read our full, actionable report on Upwork here, it’s free. Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE:UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight. Uber reported revenues of $14.19 billion, up 12.2% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business. The company reported 208 million users, up 15.6% year on year. The stock is up 9.5% since reporting and currently trades at $78.85. Read our full, actionable report on Uber here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Uber Technologies UBER, based in San Francisco, CA, has embraced an ambitious global expansion strategy while diversifying its operations. Although ride-sharing remains the principal business, the company has developed meaningful additional revenue streams through Uber Eats, its food-delivery service, and Uber Freight, the logistics marketplace. This broad-based strategy demonstrates Uber’s intention to become an integrated transportation and delivery ecosystem rather than remain exclusively a ride-hailing provider. Lyft LYFT, which is also headquartered in San Francisco, CA, has pursued a more focused strategy. Operating predominantly in the United States, the company remains largely centered on ride-sharing and has placed considerably less emphasis on diversification. This approach enables Lyft to allocate more resources to enhancing its core services. But it also limits the company’s participation in potentially faster-growing areas such as delivery and international markets. Both companies released their second-quarter 2026 results earlier this month. Considering their distinct strategies, it is useful to examine which stock offers the more attractive investment opportunity following their latest quarterly earnings reports. On Aug. 5, Uber reported strong second-quarter 2026 results with respect to the bottom line. Earnings of $1.17 per share rose 85.7% year over year and exceeded the Zacks Consensus Estimate by 41%. Quarterly revenues of $14.19 billion increased 12.2% year over year. The company saw impressive growth in its delivery and mobility segments, boosting the top line. Gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico. Operating income also increased significantly during the June quarter, with operating cash flow increasing 12% to $2.9 billion. Moreover, trailing 12-month free cash flow exceeded $10 billion for the first time. For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. Unlike the previous few quarters, foreign exchange is likely to trim the metric by roughly 1 percentage point. Despite that, the gross bookings forecast implies 18% to 22% year-over-year growth on a constant-currency basis. Adjusted EBITDA is forecasted in the $2.86-$2.96 billion band. Third-quarter adjusted earnings per share are expected in the range of 80-84 cents. The company’s earnings beat estimates three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%. Uber Technologies price-eps-surprise | Uber Technologies Quote Uber’s progress in establishing a strong presence in the rapidly growing autonomous vehicle (“AV”) market is impressive. The company is pursuing a partnership-oriented strategy to take advantage of emerging opportunities. By collaborating with several technology leaders, Uber can advance its automation goals while avoiding the significant research and development expenses associated with developing AV capabilities internally. On Aug. 6, LYFT reported second-quarter 2026 earnings of 29 cents per share, missing the Zacks Consensus Estimate of 39 cents by 25.6%. Revenues of $1.84 billion beat the consensus estimate of $1.81 billion and rose 16.1% year over year. Growth was fueled by record rides and gross bookings, while Active Riders reached a record 30.5 million. Adjusted EBITDA also advanced sharply, reflecting stronger operating momentum even as marketing and administrative costs increased. Gross bookings were $5.5 billion in the second quarter, increasing 22.6% from the year-ago period. Rides climbed 11.8% year over year, reaching a record level as growth accelerated sequentially. The company recorded strength across Freenow by Lyft in Europe, North American rideshare and Lyft Urban Solutions. Active Riders grew 16.9% year over year, marking the seventh consecutive quarter of double-digit growth. For the September quarter, gross bookings are expected in the band of $5.50 billion to $5.67 billion, up approximately 15% to 19% year over year. Adjusted EBITDA is anticipated in the band of $183-$203 million. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is expected to be approximately 3.3% to 3.6%. The company’s earnings lagged the consensus mark in each of the past four quarters, with the average miss being 57.9%. Lyft, Inc. price-eps-surprise | Lyft, Inc. Quote The disappointing earnings history has contributed to Lyft's shares performing worse than Uber so far this year Image Source: Zacks Investment Research Lyft is trading at a forward sales multiple of 0.82X, comparing favorably to Uber’s 2.4X. LYFT has a Value Score of B, compared with UBER’s C. Image Source: Zacks Investment Research Uber’s commitment to strategic diversification and shareholder-oriented initiatives remains an important competitive advantage. Backed by a substantial market capitalization of $152.5 billion, the company appears capable of weathering the current macroeconomic uncertainty. Its diversification strategy — which encompasses acquisitions, international growth and innovative service offerings — has helped reduce risk and enhance its competitive position. Although Lyft, like Uber, continues to record strong gross bookings, the weaker earnings surprise and comparatively lackluster stock performance put it at a disadvantage. Our analysis indicates that Uber is the more compelling contender in this comparison. Consequently, Uber appears better positioned than Lyft following the companies’ respective second-quarter 2026 earnings announcements. Both stocks currently have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Chief Executive Officer - David Risher Chief Financial Officer - Erin Brewer Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and welcome to Lyft's Second Quarter 2026 Earnings Call. As a reminder, this conference call is being recorded. On the call today, we have our CEO, David Risher; and our CFO, Erin Brewer. Our 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, future financial and operating results, trends in our marketplace and guidance. These statements are subject to risks 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. All of the forward-looking statements that we make today on this call are based on our beliefs 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, there are generally 2 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 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. And with that, I'll pass the call to David. John Risher: Thank you, Aaron. Good afternoon, everyone, and thank you for joining us. Q2 '26 was a quarter of record-breaking performance for Lyft, demonstrating the durable strength of our marketplace. We achieved an all-time high of over 30 million active riders, proving that rideshare is embedded in people's everyday lives. Our results are guided by a simple, powerful strategy built on our relentless focus on customer obsession, operational excellence and being a world-class partner. This leads to more riders, more rides and more ways to ride. With 262 million rides in the second quarter alone, we are well on our way to hitting over 1 billion rides in 2026. Our UP strategy continues to gain momentum with premium modes growing double digits year-on-year for the 12th consecutive quarter, supported by record performance in our TBR Chauffeuring business. We're also seeing unprecedented success in our ecosystem of partnerships with approximately 30% of North American rideshare rides linked to a partner, a new all-time high, highlighting the scalable impact of our collaborations with leaders like DoorDash and United Airlines. And with our Out part of our strategy, our global integration efforts are on track as we move toward one unified Lyft app worldwide. With beta testing now live in over a dozen European cities, while our AV roadmap advances with smooth fleet operations in Nashville and strong testing results in London, ensuring we are well positioned for a hybrid AV future. And with that, let me turn it over to Erin to take you through a few of our financial highlights. Erin Brewer: Thanks, David. From a financial perspective, we delivered accelerating top line growth with gross bookings up 23% year-over-year to $5.5 billion. Adjusted EBITDA grew 37% year-over-year, reflecting continued cost leverage, driving margin expansion and our fourth consecutive quarter of over $1 billion in free cash flow for the trailing 12 months. Our team continues to build a business that is both high growth and highly disciplined. And with that, let's take your questions. Operator: [Operator Instructions] Our first question comes from Eric Sheridan with Goldman Sachs. Eric Sheridan: Hopefully, you can hear me okay. I wanted to ask about the rider growth metric you reported in the quarter. Can you unpack the elements of what's driving rider growth and maybe track it back to elements of structural product improvements you're making, including some of the go-to-market partnerships you signed? And how much of it might have been things that were newer into the business like the California, insurance dynamics, World Cup demand, any promotional activity? Just wanted to go a little bit deeper in terms of some of the structural versus maybe some of the transient dynamics around rider growth. Erin Brewer: Yes. Eric, this is Erin. Why don't I start and then David can jump in. So -- as I think about our results across Q2, it's really, to your point, it's not one thing. I think about the strength of our North America rideshare business, our growth foundationally, our continued strong growth as we think about expanding in low-scale markets, Canada. So themes we've talked about repeatedly. We also just had an outstanding quarter within our bikes business. We talked about in our prepared remarks across several of our operated markets, just hitting weekly, daily all-time highs, the popularity of e-bikes and sort of the way that those are embedded into people's commutes in certain cities is really impressive. And then even Freenow, while granted, we didn't have Freenow in the same quarter last year, even if I look at that organically, rides are up there. So that's great progress in some of the early improvements we've made in delivering great rides across Europe. So it's really foundational strength across the business as we think about growing Active Riders to that record number that we achieved in the quarter. David, I don't know if you want to join in. Obviously, partnerships play a role here, and we had some great results there. I'll turn it over to you. John Risher: Yes. I mean this is -- it's such an interesting -- I mean, it's an interesting question. And you can, as Erin just did, answer it on so many dimensions and frankly, see so much strength on so many dimensions. So Erin mentioned geography. We're seeing growth in North America in some of our largest markets like New York and some of our low-scale markets, as Erin said. In Canada, we're continuing to see an extraordinary growth there, almost double now year-on-year. In Europe, we're seeing organic growth, which is absolutely wonderful. This is about almost exactly a year into Freenow. And already, we're starting to see real results of some of the technology and some of the product innovation that we've added to that platform, and we're really still just getting started there. So that would be one dimension. So then you asked about sort of the product improvement dimension. And there, you can look at everything from early days of things like Lyft Teens, which is going super well, Lyft Silver, which continues to do super well. And even some of the stuff that's kind of you almost take for granted but really shouldn't around marketplace health. Let me give you an example. We now have improved again, year-on-year, our ETAs, our pickup times. And on average, they're up another kind of down, I should say, so faster anywhere from 0.5% to 1% to 2% to 3%. It depends on the geography and so forth. But that at our scale is really quite meaningful. And I'll take just a moment to brag for the team for a second. If I look at our competitor, we actually pick you up faster -- the same or faster than they do, 75% of the time right now, which is really quite extraordinary because obviously, we have a smaller share. So some of the foundational work really continues to help save money, check Lyft, right? So that's another piece now on the marketing side. So it's -- I mean, it's really quite across the board, and maybe that's not satisfying, but I think in a certain sense, that sort of says, gosh, the work we're doing, the customer access work we're doing really is working across just about every dimension, even if you take out things like seasonality and World Cup and other things, which are obviously nice, but that's sort of a bit of external stuff. Operator: Our next question comes from Brad Erickson with RBC. Bradley Erickson: Two questions. One, as you think about kind of where you are on margins on the path, hopefully, to 4% next year, where do you think you're kind of really outperforming right now as we look forward? And where do you think there's still kind of work to do? And then second, just on Nashville, with the depot coming online, it sounds like in October. Can you just kind of give us an update on what the gating factors are there to rolling out as a potential distribution partner? And is that still kind of on time to happen before the end of the year? John Risher: That sounds good, Brad. Why don't I start with the second part of the question, and then Erin can take the first. So Nashville -- I'll answer your question directly and also maybe zoom out just a click. So Nashville, yes, very much on track for a depot opening, as you said. That's the purpose-built depot. For those of you who didn't see this, it's about an 80,000 square foot depot. It used to be a USPS facility, outfitted now with 4 megawatts of power and multiple charging stations and so forth, capable of handling hundreds of vehicles to give you a sense of the size of that. So that's kind of where things are in there. Let's back up and then go forward. So if we back up, the big news in Nashville for us over the last quarter was actually our taking on what was called the temporary kind of depot that Waymo had stood up. This is actually a really important milestone for us because our staff took over was actually on June 9, and our staff took over from the Waymo staff, and it was seamless. It was seamless. We got credit from them. It was actually -- it was a bit of a complicated weather day and different things happen. But anyway, we not only picked it up, but we are exceeding all of our SLAs with those guys, which is amazing. That's a great first step. So then comes the opening of the depot, the purpose-built guy, which comes later this year in October or so. And then to your question, when does supply sharing start? And we haven't said anything about that publicly, except it will happen before the end of the year, but it's still very much on track that before the end of the year, you'll have the opportunity to get matched with Waymo on the Lyft app. So very much on track, great partnership with our partner, and I think they also feel great about us. Erin Brewer: Yes, Brad. And then on your question on the margin side, Q2, obviously, we expanded our EBITDA by 37%. Our guide for Q3 calls for margin expansion quarter-on-quarter. So we feel great about the trajectory that we're on overall. I would say in terms of what's driving that, it's kind of a lot of the similar themes that you've heard us talking about. First of all, we're in a growing market. There's still great opportunity. We've talked for a number of quarters about low-scale markets. Those tend -- those have continued to grow higher than average. Canada continues to be a very strong market, of course, for us overall. And you take that very broad market opportunity and you have the foundation of operational excellence, as David said, just continuing to operate more effectively driving better service for riders, investing as we do against, for example, really smart ways to invest rider incentives. That continues to bring new riders to the platform. They ride more frequently. And so as we get that scale and that operational excellence, of course, there's natural leverage in the business. Cost discipline is another area that we have talked about going all the way back to Investor Day, being disciplined as we scale. I think we've done a nice job of that, and we'll continue to do that as we grow. We've continued to grow very nicely in higher-value modes, and that mix as a part of our business has been an important dynamic. But on so many levels, as I think about where we sit in the market, we've had some great early progress with some new programs, for example, on B2B, but man on so many levels, we're just getting started there. So that's exciting. And then partnerships, I mean, reaching this milestone where we have almost 1 in 3 rides tagged to a partner and the -- what we've talked about historically holds true, those rides tend to skew more toward higher-value rides. And so again, much more work to do there as we think about our margin expansion overall. But I really like the discipline and the trajectory that we've been on. I think it proves itself out in the numbers that we reported and where we're guiding. But those are really some of the foundational dynamics. Operator: Our next question comes from John Blackledge with TD Cowen. John Blackledge: Great. First question on the GB and rides growth gap. There was an 11% gap between GB growth and rides growth. How should we think about that gap in the back half of the year? Would you expect it to close a bit? And then on AV, I thought it was interesting to call out the 20% rides growth in San Francisco and the ODD. Just curious if you could talk about that dynamic and kind of just your thoughts on that. John Risher: Yes. John, it's David. I'll start with that, and then Erin can pick up the gross bookings piece. So yes, glad you noticed that. And I guess maybe I think it sort of proves is probably too strong word, but it underscores the thesis we have that as AVs enter the market, this will ultimately be great for rideshare in part because it will expand the TAM. And this is one of the things we've been saying for a while. We're starting to see data that proves it quarter after quarter after quarter. Frankly, you also -- you hear it in the anecdotes. You hear people who say, this opens up rideshare for me in a way that maybe I didn't necessarily want to use it in the past, but doesn't necessarily take away from my daily use of rideshare. We've seen -- and I'll brag another couple of seconds on the team's performance. I mean we've seen growth both in commutes, which is sort of all-time high. Obviously, San Francisco is a big commute market. We also see huge growth on the sort of leisure side, everything from parties to gyms, actually, it's really interesting. More people are taking rideshare to gyms than ever before. So anyway, it's sort of an across-the-board growth story, which then layers on top of the AV story. And I think that they feed each other because people get used to taking rideshare, maybe their point of entry is through an AV and then they take, you might say, traditional or driver-driven rideshare back and forth. So that's what we're seeing. We see it in a bunch of different places. San Francisco is the area we called out. And I think when I look at the transformation this industry is going through, it just makes me more excited, not less that we've got a huge kind of road ahead of us. Erin Brewer: And John, let me try to be helpful by talking a little bit about, for example, what we see as you think about gross bookings and rides and that overall mix as we head into Q3. So there are some seasonal impacts, right? Q3 is by far our highest quarter for our bikes business. Awesome business, does carry a lower average gross bookings per ride. Obviously, unit economics are super strong. So we love that. But it does have a mix influence as you think about that gross bookings and rides overall. For Freenow, we're lapping that acquisition, right? So we'll have the full -- compared to the previous year where we had 2 months, we'll have the full 3 months. So you have that dynamic. However, Freenow in the third quarter, sort of with the August holiday season, et cetera, tends to have a lower rides quarter overall. Those tend to be higher gross bookings value. So you have some of that mix effect with higher bikes, a little bit less Freenow happening as you're thinking about gross bookings per ride overall. Zooming out a little bit, we provided some color commentary in our prepared remarks. It talks about rides growth in the second half and how we expect that to increase. That's not one factor, but really across our business overall as you think about core North America rideshare or bikes business or Freenow. So that growth is going to come from each of those dimensions. So I hope that gives you some helpful color as you're thinking about those dynamics, both in Q3 and for the back half of the year. Operator: Our next question comes from Benjamin Black with Deutsche Bank. Benjamin Black: There seems to be some consternation about the stand-alone economics of AV ownership and the near-term implications for the P&L. Obviously, you have the Baidu RT6 in London. So can you maybe dig into the expected initial unit economics of your AV deployment there? How does it compare to sort of a standard drive? And how do you expect that to evolve over the next 12 to 24 months? Erin Brewer: Yes. Let me try to set some context overall as you think about the economics and really exactly where we are in that overall effort. And obviously, David, please join in where you see fit. So we're excited to be on the road, obviously, with Baidu in London. A lot of efforts across teams to make that happen and getting testing on the road and mapping overall. For where we are today, it's still a relatively small number of vehicles. So the way it's showing up in our P&L is frankly pretty de minimis, and I expect it to remain so as you think about that going forward. Beyond that, we're not going to get too much into what scale looks like in unit economics, probably when we do get closer to that point in time, I think we'll have more to say. But I'm not anticipating a significant change in the near-term impact of that overall. I think it's important to like set context. Obviously, safety matters, rider experience matters overall, and we're going to continue to be quite deliberate in the way that we roll out this technology in our platform. David, I don't know if you'd add anything to that. John Risher: I think that's well put. Yes. I mean we like the unit economics long term and short term, not a significant change. Yes, just put... Operator: Our next question comes from Ken Gawrelski with Wells Fargo. Kenneth Gawrelski: Two, please, if I may. First, David, maybe could you talk a little bit about the opportunities beyond Nashville potentially with Waymo. There's been some press out there around partnerships with Waymo and maybe even one of your competitors. Could you just talk about the opportunities and the opportunity set for you? And what you need to demonstrate in Nashville to kind of prove yourself as a partner there? That's point -- question one. Question two, -- if you think about the -- can you -- maybe, Erin, you could touch on the pricing dynamics, especially in the North America rideshare market. It continues to be really robust. Could you talk about how you expect that maybe to continue into the back half or any kind of outlook you could provide? John Risher: Yes. Ken, I'll start. Yes, I mean, let's talk about relationships a little bit because let me be honest. You never really know what's going on in someone else's relationship. So I don't want to comment on that. But what I will say is I think Lyft is a very, very strong partner. And I want to kind of linger on this for a second because I think it's actually kind of a DNA level issue rather than sort of a superficial issue. We keep talking about how 30% of our rides are tied to a partner. That is not a small thing. It's very significantly up from a couple of years ago when we first started talking about it, and it continues to grow. Why? Because what we do when we enter into a partnership is we look for partnerships where both parties benefit. And that's why we were able to expand with DoorDash to Canada. That's why the United Airlines partnership is off to such a strong start already. Quick parenthesis. This has nothing to do with your question, but I was just looking and just with Bilt, a partner that we've had for a while, riders have now spent 1.5 billion Bilt points with us -- billion Bilt points with us, taking rides with us. And that's with the company. It's a very innovative company. They set very high standards. Ankur is a true innovator, doing all sorts of really interesting things. And -- but that partnership continues to evolve. Same with the Chase Sapphire partnership, same with Chase -- actually a new Chase partnership, Chase Southwest partnership and on and on and on. Our Alaska Airlines partnership, my God, that's been around for a long time. That's such a successful partnership that Ben Minicucci, their CEO, is just about to -- has just joined our Board. So, so much evidence that the partnerships that we start tend to flourish for both parties. Okay. So now let's look at Nashville. So in Nashville, there are 2 parts of the partnership. There is a fleet management side, where we effectively get paid for availability. And we're quite good at this. We have a lot of expertise in that area from our uses of Flexdrive. That's going to be one of the ways we have to prove ourselves, right? The more available the units, the product, the Jaguar, the [indiscernible], whatever it is, the better we do both financially but also operationally, super critical because otherwise, the car can't get dispatched. And then on what we call supply sharing, okay, so supply sharing, this is a new idea. This is not a sequestered some small number of units that are kind of dedicated 24/7 to Lyft and then another set of units that are dedicated to Waymo. No, this is a dynamic pool that's constantly being deployed. And obviously, we're still in engineering on this because it's quite a complex job to do this well, but constantly being deployed across the network to maximize, again, utilization, throughput, customer experience, pickup times, all the different variables. So look, we're going to be judged on that as well. How well we do, how well we do supply and demand, supply and demand, which -- and then forgive me for going on in such detail, but let's zoom out for a second. If you look at what AV readiness looks like for us, there are 4 big pillars, right? There's marketplace health. How healthy is the marketplace? How healthy can we continue to make the marketplace to oxygenate the marketplace so that AVs are being utilized as close to 24/7 as possible. There are policy issues. In every city we go to, we have different policy issues around local safety issues or time of day issues or operational issue, all sorts of different things. We take a big role there, so as our partner. There are real estate issues, right? As we know there's this big depot. We've got to site the depot in the right place. We've got to operate in the right place, all these different things I can go into detail. And then obviously, there's the AV tech. I expect we will be graded to a greater or lesser extent on all of those, particularly on the supply sharing and the fleet operations side. Those are the most direct things. And I think to a certain -- and we intend to be the absolute best out there. We've said in the past that this partnership is built to scale, right? We did not do all this work just to do it in one place. But again, let's be super clear. We're still in the very early days, and we're holding ourselves and our partner is holding us and we are holding our partner to very high standards. So that was maybe more information than you really needed, but that's the sort of color on that. Erin Brewer: All right. Ken, maybe to pivot to pricing for a second. So it's important to understand, I think a couple of things. One, as I think about current environment or maybe where things have been in 2026, I would say, overall, relatively stable. If you look at Lyft in particular, obviously, earlier, we're talking a little bit about gross bookings per ride. That's also going to include mix shifts. Obviously, we've been growing very quickly in higher-value modes. We've also talked about our ads business, our chauffeuring business contributing to gross bookings. But again, those don't have an equivalent rides component to it. So a few of those things sort of have an influence in that mix overall. I think importantly, though, as we look at our portfolio, we really have a mode for every price point that supports riders exactly where they are, whether it's the bikes business, Bike to Work Week happened recently. We had a significant surge in the way that people are utilizing bikes for commute, for example. Wait & Save remains a really strong piece of our portfolio. We've talked about our growth in high-value modes, right? So delivering value really up to the rider really up and down that chain of modes and meeting them where we are. I think it's also important to highlight that we're delivering value in other ways, right? So we deliver value without a membership fee to our riders increasingly through partnerships. David touched on a few of those. United has continued to scale. DoorDash has continued to scale. And that's a really important piece. And then, of course, we invest in the form of rider incentives as you think about targeting them to drive loyalty or incentivize riders to try new modes or as always, balance the marketplace. So if you think about that delivered value to the rider, it's coming in a lot of different forms in addition to the mode selector. So I think the results kind of speak for themselves. Obviously, we had record growth in active riders or -- sorry, record active riders number, record rides in the quarter. And really, when we look at where people are going, right, it's places where it's clear to us that we say this word embed, it's really embedded in the day-to-day life. It's no longer sort of necessarily the special occasion. It's work, it's everyday activities. And so we think that overall positions us well to continue to serve riders really well. Operator: Our next question comes from Chad Larkin with Oppenheimer. Charles Larkin: It sounds like you're starting kind of the rebrand of Freenow. How do we think about kind of the long-term tailwinds from that? And then just kind of near term, kind of just how rebrands can sometimes work. Is there any kind of impact baked into the third quarter guide? John Risher: I'll talk about it sort of big picture. I don't think in third quarter, there's anything significant. Yes. So here's -- I can actually give you some on-the-ground experience. I was just in Europe a couple of weeks ago and experienced it myself. So here's where things stand. So as you say, there is a rebranding effort going on. You can see it very actively, for example, in places like Barcelona, where -- now in Dublin and Athens, various different places where Freenow has particular strength, where you see quite a few of the taxi cabs saying now Freenow by Lyft. It's actually about 1/3 of the taxi cabs right now in Barcelona alone saying Freenow by Lyft on them, and you can see them all over the city. So that's great. So that starts to give people a sense of kind of who we are. People already -- many people actually have a sense of who Lyft is as an American innovative rideshare company. And now we're sort of starting to put it a little bit more front and center. By next year, as we said in the prepared remarks, we expect to be fully integrated in the sense that any traveler can open up the Lyft app and be able to order a Lyft kind of natively, let's say, on the app without having to open up a new app. And that's going to be obviously a big step forward for all of us, but that's still 2027. And so in between now and then, you'll start to see little bits and pieces on the rebranding effort. But the truth of the matter is the main action there will be once we have the product ready. We don't really want to sort of get people excited about Lyft and then have them open up Lyft and not be able to order a product natively. So I'd say that's one very, very step by step. If you're interested separately, we can talk a little bit about the back-end integration, which is quite significant to make Lyft a real true global company, and we've just made actually massive progress on that, but that's a separate thing from branding. But branding will go kind of step by step as the product gets ready. Operator: Our next question comes from Michael Morton with MoffettNathanson. Michael Morton: I wanted to ask a question about the acceleration in the business. Is it fair to assume directionally that the, I guess, 3.5% acceleration could also be reflected in the U.S. rideshare business? And then within the U.S. rideshare market, in the past, you've spoken to some increasing competition and wait and see, but I haven't heard about that, I think, probably in a couple of months. I was wondering any update for the competitive environment there? And then lastly, if you could quantify the contribution from World Cup, that would be wonderful as well, but I understand if you can't. Erin Brewer: Yes, let me jump in there, and maybe I'll take them in reverse order. So we made some comments in our prepared remarks across certain of our cities where World Cup showed up increasing airport rides, some increasing local trips. But what I'd say about this is Lyft is great at events, right? You think about major event, Coachella, we've got outside lands coming up in San Francisco soon. We rally around these things. And I think World Cup was another event where we rallied around, delivered great services. But I put it in the category of similar to how we handle other major events and show up for our customers. As I think about Wait & Save overall, I mentioned a little bit earlier in the call, it remains a really important part of our overall portfolio. Customers continue to engage with the product. Overall, it definitely serves its purpose where you're willing to trade off price for time. So I wouldn't highlight any meaningful changes there as I think about our overall business or the way customers are engaging with that feature, that mode in particular. And then I think your first question, I'll kind of go back to what I said. We gave some color commentary about the back half rides in our prepared remarks. And I'll just reiterate that we see that across our bikes business, our North America rideshare business, our Freenow business. So not excluding anything here, we're seeing that dynamic across each of those areas. Operator: Our next question comes from Nikhil Devnani with Bernstein. Nikhil Devnani: Given the improving outlook for rides, you've talked about and even your competitor has talked about, I would hope to hear a little bit more about how you feel on just driver supply as you think about the balance of the year. Do you feel like the industry is adequately supplied to keep up with this level of improving growth? And maybe can you talk to any of the investments you intend to make to help bridge that gap if needed as well? John Risher: Nikhil, it's David. So we feel great about the driver supply. And I actually would maybe zoom out and say we feel great about the relationship that we have with drivers and vice versa. So let's start with that. So we -- this is something that maybe over the last 3 years since Erin and I started have really made a very focused investment on in terms of energy, not just dollars, making sure that people understand there are 2 customers in every car, a rider and a driver. Okay. So what have been the results? And some of the -- and you know some of the ways we've made those investments. We now have a 30% fee cap, which you probably know what that's all about. We have a great rider rewards -- excuse me, driver rewards program that we launched earlier this year. I actually just got new data about that. It's paid out [ $14 million ] so far to drivers, a bunch of that co-funded by the way, which is wonderful. So we made real investments in the driver supply and the health of the driver community, I would more characterize it that way over the last couple of years and even this year. Okay. So what's the result? The result is we have very strong supply right now, sort of in the top strongest ever I think, and that's both in terms of number of active drivers on the platform as well as driver hours. By the way, driver earnings are effectively at an all-time high. These things are always tricky to kind of measure. But if we kind of look at it, certainly, again, since Erin and I started, they're at the highest ever up, I think 8% per ride year-on-year. SidePoint -- tipping is also up 10%, which is wonderful, and that's, I think, a reflection of great service being driven by the drivers in those platforms. So all of those things kind of give us a lot of hope and sort of early indication that our driver supply will continue to be good. Last question that you didn't ask, but I'm going to answer anyways, you might say, well, how do you compare it to the competition? And I am pleased to say that right now, we have about a 30-point preference gap when you ask drivers or drive on multiple platforms, which of the 2 major platforms do you prefer to drive on? We have over 50% of people say like us, and there's a much, much smaller number, much, much smaller number of people say they prefer the other guys. So that's nice, too, right? I don't mind being competitive with those guys because it's sort of good for the whole industry to be kind of fight over your drivers a little bit. And I think we're doing a nice job, I'd say, winning that fight. Operator: Our last question comes from Andrew Northcutt with Wolfe Research. Andrew Northcutt: This is Andrew on for Shweta. I want to follow up on partnerships more broadly. As you look at the portfolio of partnerships today, how are you thinking about the incremental opportunity from deepening existing partnerships versus adding new ones? And then where do you see kind of the most untapped runway? John Risher: Yes. Thanks for the question, Andrew. I think, yes, we would prioritize and are prioritizing deepening our existing partnerships, and it's because they're so kind of untapped in so many ways. And that's -- Look, there's -- this is -- maybe I'll make a general statement that specific. The general statement I make is there's so much innovation left in this space. And again, I mean, gosh, 160 million -- call it 300 million rides that people are taking in their private car every year. And between us and our big competitors, 3 billion or 4 billion, maybe more. That's in North America. I don't know, 6 billion or 7 billion, something like that across the world. Every one of the other ones is the product isn't yet good enough or the partnership isn't yet strong enough with a partner that's going to make the ride relevant or whatever it is. So there's so much general opportunity in the rideshare space. And certainly, we think we're doing very well and very well positioned there. And then within the partnership place, DoorDash, we just expanded to Canada. But gosh, there's a lot more white space out there. The Chase partnerships, we just renegotiated and relaunched our Chase Sapphire Reserve program a couple of months ago, it's about 6 months ago now. And it's been completely reinvigorated, thanks to the 5x points and $10 a month. They just added the Chase Southwest kind of benefit as well as the Southwest credit card benefit as well in a different portfolio and on and on and on. So each one of the partnerships we have, we think we're sort of in early days. But I'll get back to the earlier point I was making. I think partnership and being a good partner is in our DNA, and we're seeing that with our partners that they want more from us and vice versa. And I mean more in the most positive way possible. They want to deepen the partnership and go even bigger. So I think I'm getting ahead of myself by saying I think there'll be some really more interesting news over time with our existing partners and stay tuned for that. Operator: This concludes the question-and-answer session. I will now turn the call back over to Lyft's CEO, David Risher, for closing remarks. John Risher: You all, as always, thank you so much for your time today, for following us so closely, your continued interest in Lyft. We are firing on all cylinders and super excited for a strong year in the company and strong times ahead. So thanks again, and we will see you all next time. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Lyft. The Motley Fool has a disclosure policy. Lyft (LYFT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Lyft (LYFT) just reported second quarter 2026 earnings, giving investors fresh numbers to assess the ride hailing company. The report covers both Q2 performance and the first half of the year. See our latest analysis for Lyft. Lyft shares closed at US$16.58 after the earnings release, with a 30 day share price return of 5.81% and a 90 day share price return of 27.05%, while the 1 year total shareholder return is 13.72%. This suggests recent momentum has picked up after a weaker year to date patch. If earnings news has you rethinking where growth could come from next, this is a good moment to scan 19 top founder-led companies Lyft now trades below both analyst targets and an estimated fair value, even after a strong 90 day run. Is the discount signalling excessive caution, or a reasonable buffer given the company’s mixed track record? On the most followed narrative, Lyft’s fair value sits at $19.33 against a last close of $16.58, which points to a meaningful valuation gap that hinges on how its core platform and partnerships evolve over time. Read the complete narrative. Read the complete narrative. Want to understand why this fair value assumes rising revenue, shrinking margins and a higher future earnings multiple than today? The narrative leans on a detailed bridge from current profitability to those future numbers, including changing share count and a specific discount rate. The full set of assumptions shows exactly how analysts connect today’s $16.58 share price to that $19.33 estimate. Result: Fair Value of $19.33 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Lyft investors still face meaningful risks from intense competition, which could pressure margins, and from ongoing sexual assault lawsuits that may affect future legal and reputational outcomes. Find out about the key risks to this Lyft narrative. With mixed signals around Lyft’s valuation and business risks on one side and potential rewards on the other, this is a good time to review the details for yourself and decide how you feel about the stock’s balance of risk and reward, starting with these 3 key rewards and 2 important warning signs If you are serious about building a stronger portfolio, now is the time to widen your search with targeted stock ideas that match your goals. Spot potential turnarounds early by scanning 19 elite penny stocks with strong financials that already show healthier fundamentals than many tiny peers. Focus on quality at a discount by using the screener containing 20 high quality undiscovered gems that surface overlooked companies with solid underlying numbers. Dial down portfolio stress by reviewing the 85 resilient stocks with low risk scores and concentrating on businesses with more resilient risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LYFT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Lyft, Inc. (NASDAQ:LYFT)'s second-quarter results were strong in several areas, but they also showed why investors should not look at the company’s growth numbers in isolation. Gross bookings reached a record $5.50 billion, increasing 23% from a year earlier. Revenue rose 16% to $1.84 billion and came in above expectations. Those are good numbers. But Lyft is also spending considerably more to keep that growth going. That is where the story gets a little more complicated. The strongest part of the quarter was rider growth. Lyft, Inc. (NASDAQ:LYFT) had 30.5 million active riders, up 17% year over year. It was the seventh consecutive quarter in which the company posted double-digit rider growth. Total rides also increased, reaching 262.4 million. For a rideshare company, that kind of growth matters. A larger rider base can create a stronger marketplace and give Lyft more opportunities to increase revenue over time. Lyft is also becoming more than just a North American rideshare business. Freenow gives it a presence in Europe, while Lyft Urban Solutions adds another part to the business. Partnerships with DoorDash, United Airlines, and public transit systems are helping bring more people into the Lyft ecosystem. There is another encouraging detail in the numbers. Lyft’s implied take rate remained around 33.5%. In simple terms, the company is still keeping a similar share of each dollar spent on its platform. That suggests the increase in bookings is not simply the result of giving riders deep discounts. The autonomous vehicle opportunity could also become important over the longer term. Lyft, Inc. (NASDAQ:LYFT) is not trying to build its own self-driving technology from scratch. Instead, it is focusing on the operational side of autonomous fleets. Its work with Waymo in Nashville and the expansion of AV depots could allow Lyft to benefit from robotaxis without having to make the kind of massive technology investments required to develop the vehicles itself. The biggest concern in the quarter was marketing spending. Lyft, Inc. (NASDAQ:LYFT)'s sales and marketing expenses jumped about 68% to $320 million. The company spent more on rider incentives, loyalty programs, and customer acquisition as it fought to keep growing. That is a big increase. It also makes the company’s profitability worth watching more closely. GAAP net income rose to $50.3 million, but it still missed consensus expectations. The question investors need to ask is fairly simple: how much of Lyft’s growth is happening naturally, and how much is being helped along by promotions? That will become even more important as some of the temporary boosts from the quarter disappear. The FIFA World Cup helped drive more airport trips and rides during busy periods. Those benefits are useful, but they are not something investors can assume will show up every quarter. Management still expects gross bookings to grow, although the pace is expected to moderate. If growth slows while marketing expenses remain elevated, that could put more pressure on margins. There are clear signs that Lyft’s business is improving. Adjusted EBITDA increased 37% year over year to $177.2 million. The Adjusted EBITDA margin also improved to 3.2%, compared with 2.9% a year earlier. That is encouraging because it shows Lyft, Inc. (NASDAQ:LYFT) is getting some operating leverage even while spending more to attract riders. At this point, though, the next part of the story is less about how quickly Lyft can grow and more about how efficiently it can grow. The company now has 30.5 million active riders. If Lyft can keep those users engaged without having to spend heavily on incentives, its profit margins could improve considerably. That is what investors should be watching most closely. The current growth numbers are strong enough to support a moderately bullish view, but the stock still needs to prove that higher bookings can lead to stronger and more consistent profits. While we acknowledge the potential of LYFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

HTZ jumped 39% in a week after Q2 revenue hit $2.4B, up 10% year over year, on pricing power despite operating with a smaller fleet. CAR barely moved while UBER gained 9% on the week, confirming Reddit-fueled retail traders, not sector strength, are driving HTZ higher. Multiple class-action lawsuits, $18.7B in debt, and S&P SmallCap 600 removal all hang over a stock still down 59% year to date. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Hertz Global Holdings (NASDAQ:HTZ) are ripping higher in Tuesday afternoon trading, changing hands around $2.64, a 25% jump from Monday's close of $2.12. The move extends a violent post-earnings bounce, with the stock now up 39% over the past week. The catalyst traces back to Hertz's August 6 Q2 report, which surprised to the upside on nearly every operating line. Revenue landed at $2.396 billion, up 10% year over year, while adjusted EPS of -$0.11 beat consensus handily. Adjusted Corporate EBITDA came in at $81 million, and revenue per unit hit $1,542, above the company's North Star target. CEO Gil West framed the earnings report as validation of the turnaround, saying "This quarter's results reflect the disciplined execution of our strategy and our consistent commercial strength." Revenue grew 10% year over year despite operating with a 1% smaller fleet, a genuine pricing-power tell. The 8-K is on file with the SEC. The rally is happening in spite of a wall of overhangs. Multiple securities class-action complaints allege Hertz made materially false statements about liquidity and the likelihood of a dilutive capital raise between May 7 and June 23, 2026, with a lead-plaintiff deadline of September 22, 2026. A $300 million secured-notes deal announced June 24 triggered the 40%-plus drawdown that anchors those suits. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Layer on removal from the S&P SmallCap 600, which forced index-fund selling, and analyst fair-value cuts from $3.78 to $2.78. The balance sheet is also stretched, with total debt at $18.7 billion and a stockholders' deficit of $628 million. Year to date, HTZ is still down 59%. It's worth noting that Hertz opened the day flat. Buying pressure built between 9:45 a.m. ET and 10:45 a.m. ET. Most of Hertz' gains came from that period as the stock has traded mostly sideways since the morning. The bounce looks idiosyncratic. Avis Budget Group (NASDAQ:CAR), the closest rental peer, is up 3% today to $142 and essentially flat over the past week. Mobility partner Uber Technologies (NYSE:UBER), which is teaming with Hertz's Oro Mobility unit on an AV launch in the San Francisco Bay Area later this year, has climbed 9% on the week, while Lyft (NASDAQ:LYFT) is up 5%. HTZ is running its own race. Retail is fueling the move. Reddit's r/wallstreetbets sentiment score hit 93 on August 7, with posts titled "Upcoming Hertz 10+ Bagger" and "Full port, life savings in HTZ, I have never felt this alive" drawing hundreds of comments. The warrant lock-up expired August 9, which may be adding to the whipsaw as short positioning gets tested. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Ride sharing service Lyft (NASDAQ: LYFT) announced better-than-expected revenue in Q2 CY2026, with sales up 16.1% year on year to $1.84 billion. Its non-GAAP profit of $0.28 per share was 29.2% below analysts’ consensus estimates. Is now the time to buy LYFT? Find out in our full research report (it’s free). Revenue: $1.84 billion vs analyst estimates of $1.81 billion (16.1% year-on-year growth, 1.9% beat) Adjusted EPS: $0.28 vs analyst expectations of $0.39 (29.2% miss) Adjusted EBITDA: $177.2 million vs analyst estimates of $171.6 million (9.6% margin, 3.3% beat) EBITDA guidance for Q3 CY2026 is $193 million at the midpoint, above analyst estimates of $190.7 million Operating Margin: 2.6%, up from 0.2% in the same quarter last year Active Riders: 30.5 million, up 4.4 million year on year Market Capitalization: $6.62 billion Lyft’s second quarter was marked by robust expansion in rider engagement and continued improvement in operational efficiency, which contributed to positive market sentiment following earnings. Management attributed growth to increased active riders, particularly in North America and Canada, alongside strong demand in the company’s bikes business and ongoing product enhancements. CEO David Risher highlighted Lyft’s success in growing its partner-linked rides, now accounting for nearly 30% of North American rideshare activity, reflecting the scalable impact of collaborations with companies like DoorDash and United Airlines. The quarter also benefited from improved pickup times and the integration of new features such as Lyft Teens and Lyft Silver, which aim to broaden market reach and boost customer satisfaction. Looking ahead, management’s guidance is underpinned by expectations of continued momentum in premium ride modes, further expansion of key partnerships, and disciplined cost management. CFO Erin Brewer emphasized the strategic importance of growing higher-value modes and leveraging operational scale to drive margin improvement. The company is also focused on advancing its autonomous vehicle initiatives, with upcoming milestones in Nashville and London. Risher noted, “Our hybrid AV roadmap and global app integration efforts position us well for a future where rideshare is even more embedded in daily life.” Management credited the quarter’s performance to widespread rider growth, product expansion, and the scaling of strategic partnerships, while also noting operational improvements and progress in autonomous vehicle initiatives. Active rider expansion: Management reported all-time highs in active riders, driven by solid gains across major cities in North America, rapid growth in Canada, and early progress in European markets following the Freenow acquisition. Product enhancements: New offerings like Lyft Teens and Lyft Silver, along with ongoing improvements in pickup times and marketplace health, were cited as key factors in attracting more riders and improving user experience. Partnership growth: The share of rides linked to partners rose to approximately 30%, fueled by deepening collaborations with DoorDash, United Airlines, and others. Management emphasized that these rides tend to be higher value and see continued growth potential. Strength in bikes business: The bikes segment delivered record usage, especially during commuter-focused events, highlighting the diversification of Lyft’s mobility platform and its role in broadening modal choices for consumers. Autonomous vehicle (AV) progress: Notable milestones were achieved in Nashville, with the opening of a large depot and seamless transition of fleet management from Waymo, as well as further testing and early deployment in London with Baidu. Management stressed that AV investments remain in early phases, with limited near-term financial impact but significant long-term potential. Lyft’s outlook is driven by anticipated momentum in higher-value ride segments, ongoing partnership expansion, and disciplined cost management despite a competitive and evolving mobility landscape. Premium mode focus: Management believes continued growth in premium ride offerings and chauffeuring services will support higher margins, as these segments attract frequent and higher-spending riders, especially in urban centers. Autonomous and global integration: The company is prioritizing the rollout of autonomous vehicles in key cities and the unification of its app experience internationally. Management expects these efforts to enhance scalability, operational efficiency, and customer reach over the coming year. Partnership and market expansion risks: While expanding partnerships with firms like DoorDash and Chase is viewed as a major growth lever, management cautioned that execution risk remains, particularly in deepening existing integrations and navigating regulatory and operational hurdles in new markets. In the coming quarters, our team will be monitoring (1) the pace of adoption and monetization for Lyft’s autonomous vehicle deployments in Nashville and London, (2) the integration and performance of the Freenow platform as the company moves toward a unified global app, and (3) the progression of strategic partnerships and their contribution to higher-value ride growth. Execution on operational efficiency and international expansion will also be key indicators of sustained momentum. Lyft currently trades at $17.44, up from $16.10 just before the earnings. Is the company at an inflection point that warrants a buy or sell? 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved an all-time high of over 30 million active riders, driven by the 'UP' strategy focusing on premium modes and specialized services like TBR Chauffeuring. Attributed record performance to 'customer obsession' and operational excellence, specifically citing improved pickup times that match or exceed competitors 75% of the time despite a smaller market share. Reached a milestone where approximately 30% of North American rides are linked to strategic partners like DoorDash and United Airlines, which typically attract higher-value riders. Reported significant growth in low-scale markets and Canada, where ride volume has nearly doubled year-over-year. Maintained strong driver supply and sentiment, citing a 30-point preference gap over competitors and record driver earnings up approximately 8% per ride year-on-year. Successfully transitioned autonomous vehicle fleet operations in Nashville from Waymo staff to Lyft staff, meeting all service level agreements during the handover. Expects to exceed 1 billion total rides in 2026, supported by accelerating ride growth across North America, Europe, and the bikes business in the second half of the year. Anticipates the launch of 'supply sharing' with Waymo in Nashville before the end of 2026, allowing riders to be matched with autonomous vehicles directly via the Lyft app. Projecting full global app integration by 2027, enabling users to book rides natively across international markets through a single unified Lyft interface. Q3 guidance assumes continued margin expansion driven by cost discipline and a favorable mix of higher-value modes, despite seasonal shifts in the bikes and European businesses. Strategic focus remains on deepening existing partnerships rather than aggressive new acquisitions, citing significant 'white space' for growth within current collaborations like DoorDash and Chase. The Freenow acquisition is currently undergoing a rebranding phase to 'Freenow by Lyft' in major European cities like Barcelona, Athens, and Dublin. The Nashville autonomous vehicle depot, an 80,000 square foot facility, is scheduled for a formal opening in October 2026 to support hundreds of vehicles. Management noted that while autonomous vehicle testing is expanding to London with Baidu, the near-term P&L impact remains de minimis due to the small scale of the current fleet. Seasonal dynamics in Q3 include a higher mix of bike rides, which carry lower average gross bookings per ride but offer strong unit economics. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is foundational across geographies, including large markets like New York and emerging markets like Canada. Product innovations such as Lyft Teens and Lyft Silver, combined with improved marketplace health (faster ETAs), are primary structural drivers. Management acknowledged external factors like the World Cup and seasonality provided a boost but emphasized that core operational improvements were the main catalysts. Management believes AVs expand the Total Addressable Market (TAM) rather than cannibalizing existing rides. In San Francisco, Lyft observed 20% rides growth in areas where AVs operate, suggesting a hybrid ecosystem where users may enter via AV and return via driver-led rides. The 11% gap is influenced by seasonal factors; Q3 is the peak for the bikes business, which has lower gross bookings per ride. The lapping of the Freenow acquisition and its specific European holiday patterns also impact the mix between bookings value and ride counts. Lyft will be evaluated on fleet management (maximizing vehicle availability) and 'supply sharing' (dynamic dispatching across a shared network). Success depends on four pillars: marketplace health, local policy navigation, real estate/depot operations, and AV technical integration.

Lyft Inc (NASDAQ:LYFT) reported second quarter results that topped analyst expectations for revenue and gross bookings, while the ride-hailing company continued to see growth in riders and rides. Shares traded up 4% at about $17 on Friday morning. Revenue for the quarter ended June 30 reached $1.84 billion, compared with the $1.81 billion expected by analysts. Gross bookings came in at $5.5 billion, ahead of the $5.37 billion consensus estimate and up 23% year over year. Net income rose to $50.3 million from $40.3 million a year earlier. Adjusted EBITDA increased 37% year over year to $177.2 million, while net cash provided by operating activities was $349.9 million, compared with $343.7 million in the prior-year quarter. Lyft reported 30.5 million active riders during the quarter, up 17% year over year and marking the seventh consecutive quarter of double-digit growth. Rides increased 12% to 262 million, with the company citing growth across FREENOW by Lyft in Europe, North American rideshare and Lyft Urban Solutions. “We have surpassed 30 million Active Riders globally, our highest ever, as more people embed Lyft into their everyday lives,” Lyft CEO David Risher said in a statement. “This milestone is driven by our customer obsession and operational excellence, and fuels our transformation into a hybrid transportation platform while we deliver strong financial performance. So buckle up, the opportunity ahead is massive, and we’re just getting started.” Lyft said approximately 30% of North American rideshare rides were linked to a partnership during the quarter, an all-time high for the company. The company also said its fleet operations with Waymo in Nashville began in June and are running smoothly as it prepares to open an 80,000-square-foot autonomous vehicle depot in October. Separately, Lyft and Curb expanded their strategic partnership to New York City. For the third quarter, Lyft expects gross bookings of approximately $5.5 billion to $5.67 billion, representing year-over-year growth of approximately 15% to 19%. The company expects adjusted EBITDA of approximately $183 million to $203 million, with adjusted EBITDA margin on gross bookings of approximately 3.3% to 3.6%. UBS viewed Lyft’s second quarter results as better than expected, citing acceleration in gross bookings and the company surpassing 30 million active riders for the first time. The firm raised its estimates and price target to $17 from $16 while maintaining a ‘Neutral’ rating. UBS wrote that the results reflected broad-based strength across North American rideshare, bikes and European operations, while management highlighted momentum in premium products, partnerships and marketplace efficiency. The firm also pointed to healthy third-quarter guidance across rideshare, bikes and FREENOW. The firm said continued execution across partnerships, premium offerings, bikes and international markets could support growth, while progress in Lyft’s core US rideshare business remained an area to monitor. UBS also noted that it “would have hoped for a more meaningful flowthrough to the adjusted EBITDA line,” pointing to the 3.2% adjusted EBITDA margin on gross bookings in the second quarter and the improvement it believes is needed to reach Lyft’s 4% margin goal for 2027. The firm identified the acceleration in gross bookings and growth in active riders as factors that could support the bullish case, alongside strength in bikes, Canada and Europe. At the same time, UBS highlighted the potential for moderation in gross bookings growth in the third quarter, as well as questions over whether core US rideshare demand is reaccelerating materially.