 Lyft reported a 19% increase in Gross Bookings (GB) to $5.1bn in 4Q25. Revenue, however, came in lower at $1.6bn, reflecting a $168mn impact from legal, tax, and regulatory reserve changes and settlements. The company also recognized a benefit from the release of a valuation allowance, resulting in net earnings of $2.8bn for 4Q25. Active Riders reached 29.2mn (+18.2% YoY), compared to 24.7mn a year earlier. Total rides increased to 243.5mn, up 11.4% YoY in 4Q25, though rides declined 2.1% sequentially. Revenue per active rider decreased 7.1% QoQ and 13.1% YoY. Competitive pricing and incentives on the platform are likely to persist into 1Q26, usually the seasonally weakest quarter of the year. Lyft remains confident that ridesharing demand is healthy and that its platform is well positioned to drive Gross Bookings growth through 2027. On the positive side, the company continues to exercise discipline over operating expenses. Total costs and expenses increased 16.8% YoY in 4Q25, compared with 13.6% revenue growth ( excluding the $168mn reserve adjustment). Lyft reported an operating loss of $185mn in 4Q25. A $2902.7mn income tax benefit resulted in net income of $2,755mn in 4Q. In FY2025, Lyft delivered 51.3mn rides, up 16% YoY, and generated Gross Bookings of $18.5bn, up 15% YoY. The company reported record Adjusted EBITDA of $529mn, up 38% YoY, and free cash flow of $1.12bn. The Board of Directors approved a $1bn share repurchase program (c.15% of Lyft’s market capitalization), following c$500mn of stock repurchases in 2025.  Lyft has begun onboarding autonomous vehicles (AVs) across several cities. In 2026, the company plans to deploy dozens of Baidu AVs in London on its platform, with the fleet expected to scale to hundreds of vehicles over time. AV deployment is also scheduled for Hamburg, marking Lyft’s first expansion into Germany. Additionally, Lyft plans to launch AV services in Nashville in partnership with Waymo, and in Dallas with Mobileye and Marubeni. The company views a hybrid model—combining human drivers and AVs—as the most efficient structure to capture the multi-trillion-dollar opportunity in the AV market. Lyft expects AV deployment to expand the overall ridesharing market, complementing rather than replacing human drivers. That said, the development and scaling of the AV market may take time.  In 2026, Lyft expects Gross Bookings to accelerate toward its 2027 targets of $25bn in Gross Bookings, $1bn in Adjusted EBITDA, and $1bn in free cash flow. For 1Q26, Gross Bookings are projected in the range of $4.86–5.0bn (+17–20% YoY), with Adjusted EBITDA of $120–140mn. Lyft believes its global expansion strategy and continued partnership development are key pillars of long-term growth. Notable partnerships with DoorDash and United Airlines have resulted in 3mn linked accounts and several hundred thousand linked accounts, respectively. However, we believe seasonal weakness and ongoing pricing pressure could weigh on the stock in the near term. We have reviewed our forecasts and adjusted our 12-month DCF-based target price to $24.4 (from $25.5), while maintaining our Buy rating. Our current estimates do not yet incorporate the impact of recent acquisitions.