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Lyft Inc. (Nasdaq: LYFT) shares skyrocketed over 25% to above $16.2 in early Friday trading, following a robust first-quarter earnings report and a $250 million boost to its share buyback program.

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Lyft, Inc. (LYFT) 

The ride-sharing firm raised its total repurchase authorization to $750 million and plans to use $500 million over the next year, with $200 million slated for the next three months.

The buyback announcement prompted activist investor Engine Capital to halt its board campaign against Lyft. Engine’s founder, Arnaud Ajdler, welcomed the move as an “important first step” towards returning value to shareholders.

🚨 Lyft’s stock rockets 22% to $15.86 after a Q1 earnings beat and a $750M buyback!

Is this ridesharing giant in the fast lane for good? 🏎️$LYFT #StockMarket #Earnings #Lyft pic.twitter.com/GyOlRhp6Ht

— Juniorstocks.com (@Junior_Stocks) May 9, 2025

Q1 Results Show Growth in Bookings and Profits

For the first quarter ending March 31, 2025, Lyft reported gross bookings of $4.2 billion, up 13% year-over-year, slightly beating Wall Street’s $4.15 billion estimate. Rides surged 16% to 218.4 million, topping FactSet’s 215.1 million forecast, marking Lyft’s 16th consecutive quarter of gross bookings growth.

Revenue grew 14% to $1.45 billion, though it narrowly missed LSEG’s estimate of $1.47 billion. Net income swung to $2.6 million, or 1 cent per share, compared to a $31.5 million loss, or 8 cents per share, a year earlier. Adjusted EBITDA rose to $106.5 million, improving from $59.4 million a year ago.

CEO David Risher highlighted the company’s momentum, saying demand remains strong despite broader consumer concerns. “Our team is stronger than it’s ever been, and the consumer demand is absolutely there,” Risher told CNBC.

Operational Milestones and Product Innovations

Lyft reported that rides reached their highest weekly levels ever in late March, fueled by growing demand and driver preference. Active riders rose 11% year-over-year to 24.2 million, also a record for Q1.

The company launched several new initiatives, including Lyft Silver, a service aimed at older adults as it seeks to tap into an aging U.S. population. It also began piloting an AI-powered Earnings Assistant to help drivers optimize their time and earnings.

Cash flow was another bright spot, with net cash from operations hitting $287.2 million, up from $156.2 million a year ago. Free cash flow surged to $280.7 million, more than doubling from $127.1 million last year.

Optimistic Outlook for Q2

Looking ahead, Lyft expects rides growth to remain in the mid-teens and projects gross bookings of $4.41 billion to $4.57 billion for the second quarter, up 10% to 14% year-over-year. Adjusted EBITDA is forecast between $115 million and $130 million, with margins improving slightly.

Lyft’s next earnings report is scheduled between August 5 and August 11, 2025.

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