CNBC Television
Lyft CFO Erin Brewer on Q3 results: Our marketplace has never been healthier
11/6/2025, 1:23:12 PM
Economic Summary
- Lyft (LYFT) reported a stronger quarter: gross bookings rose 16% in Q3, adjusted EBITDA increased 29%, and the company generated $1 billion in free cash flow over the trailing 12 months, with management guiding to accelerated bookings into Q4 and into 2026.
- Rideshare remains underpenetrated relative to a roughly $300 billion personal vehicle trips market, implying significant addressable market opportunity as Lyft expands in North America and Europe.
- Pricing on the platform is broadly stable, with premium modes showing ~50% year-over-year growth, and the consumer appearing resilient evidenced by record riders and rides around events like Halloween.
- Strategic partnerships and technology initiatives — notably a partnership with United Airlines and an AV collaboration with Waymo starting with a 2026 Nashville launch — are positioned to expand demand and long-term TAM.
Bullish
- Better-than-expected earnings and upbeat guidance
- Gross bookings up 16% with acceleration expected into Q4
- Generated $1,000,000,000 free cash flow trailing twelve months
- Premium ride modes grew about 50% year-over-year
- Waymo partnership and 2026 robo-taxi launch in Nashville
Bearish
- Competition from Uber could limit Lyft's share gains and pressure margins.
- Growth may rely on industry tailwinds rather than purely operational improvement.
- Autonomous vehicle timelines and execution (robo-taxi) carry execution risk.
Bullish tickers
LYFTWAYMOUAL
Bearish tickers
UBER
LYFT
1 price targets
21.42
Bullish
Beat earnings with gross bookings +16%, adjusted EBITDA +29%, $1B FCF; premium growth, marketing campaigns, United partnership, and Waymo AV plans support growth.
Bearish
Faces intense competition (for example UBER); must keep pricing competitive and risks relying on industry-wide demand.
UBER
Bullish
Referenced as an industry peer; overall rideshare growth benefits major platforms including Uber.
Bearish
Large competitor that could limit Lyft's share gains and put pricing pressure on the market.
UAL
Bullish
New partnership with Lyft may drive cross-promotional demand and rider incentives.
WAYMO
Bullish
Partnering with Lyft for a differentiated robo-taxi launch in Nashville in 2026, which could expand long-term market opportunity.
Bearish
Autonomous vehicle deployment timelines and execution risks remain significant; Waymo is not a standalone public ticker.
People mentioned
Erin Brewer