Lyft, Inc. Q3 FY2025 earnings call

• Q3 was a record quarter with driver hours, Active Riders, and gross bookings all at new highs. Adjusted EBITDA grew 29% year-over-year, and free cash flow for the trailing 12 months exceeded $1 billion. - Partnership with United Airlines is live, allowing users to link accounts to earn miles on eligible rides, including through company business profiles. - Focused on creating differentiated AV partnerships, with announcements of Waymo and Tensor powered by NVIDIA, building upon the AV framework. - Q3 had Active Riders growth at 18% year-over-year, gross bookings up 16% year-over-year, and adjusted EBITDA up 29%, all all-time highs. - Fourth quarter guide: rides up mid- to high teens, gross bookings up 17% to 20%.

In Q3, Lyft achieved record quarters across driver hours, Active Riders, and gross bookings. Adjusted EBITDA grew 29% year-over-year, and free cash flow generation for the trailing 12 months was over $1 billion for the first time. For North America, all metrics like Active Riders growth (18% year-over-year), gross bookings up 16% year-over-year, and adjusted EBITDA up 29% were all-time highs. Revenue contribution details weren't explicitly broken down by specific product segments other than the overall performance.

• Fourth quarter: rides expected to be up mid- to high teens, gross bookings up 17% to 20%. - 2026 growth catalysts: partnership with United Airlines, full year contribution from FREENOW, impact from TBR Global Chauffeuring acquisition, growth in underpenetrated markets, and benefits from California insurance reform (SB 371) leading to price reductions, increased demand, and growth opportunities.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projected or implied. These factors are described in earnings materials and recent SEC filings.

Q: Doug Anmuth asked about multiple converging catalysts in 2026 and insurance savings.

A: John Risher mentioned strong operational momentum in the US, FREENOW and Europe opportunities, and TBR opportunity. Erin Brewer talked about Q3 results, fourth quarter guide, 2026 catalysts including United partnership, FREENOW, TBR, underpenetrated markets, and California insurance reform.

Q: Eric Sheridan asked about the balance between incenting growth, driving innovation, and delivering margin trajectory.

A: John Risher said the question shows a narrow perspective, emphasizing Lyft's large ride volume, improved service without sacrificing economics, and innovation as a way to drive growth.

Q: Justin Post asked about AV economics and markets where Waymo operates.

A: John Risher said AVs expand the market, with higher growth in markets where they operate. Erin Brewer talked about integrated supply management partnership, fleet availability, and utilization.

Q: Michael Morton asked about global opportunities and Waymo deal accretive性.

A: John Risher talked about FREENOW and TBR acquisitions, global vision, and bringing US learnings globally. Erin Brewer added about partnership skill sets and Waymo deal driving availability and utilization.

Q: Brad Erickson asked about FREENOW update and 2026 outlook.

A: Erin Brewer said 2026 outlook is based on current announcements, and FREENOW expected to accelerate in 2026 with EUR 1 billion top line.

Q: Nikhil Devnani asked about AV algorithm balance and insurance reform in other markets.

A: Erin Brewer talked about ongoing insurance reform efforts, and John Risher discussed the complexity of balancing demand between funnels and the hybrid network concept.

Q: Ben Black related questions about AV centers and breakeven.

A: Erin Brewer was vague on details, and John Risher talked about utilization and AV economics.

Q: Stephen Ju asked about university programs and enterprise partnerships.

A: John Risher talked about renewed focus on business-to-business, including university programs, health care, and corporate transportation, with examples like the business rewards program.