New York, Feb 12, 2026, 06:53 EST — Premarket
Lyft shares (LYFT.O) held steady in premarket trading Thursday, following a steep 16.97% drop to $13.99 at Wednesday’s close. 1
Lyft’s shares fell Wednesday after the company projected a softer-than-expected first-quarter adjusted EBITDA — that’s earnings before interest, taxes, depreciation, and amortization, with some adjustments — as tough winter weather and seasonal expenses weighed in the U.S., Reuters reported. The ride-hailing firm recorded 945.5 million rides in 2025, missing Visible Alpha’s estimate of 958.4 million, and its fourth-quarter ride count also came up short. Evercore ISI analyst Mark Mahaney pointed out that Lyft’s goal of hitting a 4% EBITDA margin by 2027 depends heavily on “execution-heavy initiatives” as it tries to keep pace with Uber (UBER.N). 2
The turnaround story is hitting a rough patch. The stock’s already baked in expected gains, and investors are quick to react when growth appears elusive.
Lyft reported a 19% jump in fourth-quarter gross bookings, reaching $5.1 billion—the total value of transactions on its platform. Revenue nudged up 3% to $1.6 billion, though that included a $168 million hit from legal, tax, and regulatory reserve adjustments and settlements. CFO Erin Brewer highlighted expected cash flow generation topping $1.1 billion in 2025. The company also forecasted Q1 adjusted EBITDA between $120 million and $140 million, based on gross bookings around $4.86 billion to $5 billion. CEO David Risher told investors to watch 2026 as “the year of the AV,” while Lyft launched a new Lyft Teen service targeting riders aged 13 to 17. 3
A closer review of the filings highlighted the gap between accounting profit and Lyft’s core operations. The company’s annual report, submitted Wednesday, revealed an operating loss of $188.4 million for 2025, despite reporting net income near $2.84 billion, boosted by a roughly $2.90 billion income tax benefit. 4
Traders focus on bookings, rides, and adjusted EBITDA because they offer a clearer view of demand and costs. Net income, by contrast, can be skewed by tax-related fluctuations, making those metrics less reliable.
Lyft’s got some capital-return firepower, but there are strings attached. According to an SEC filing, the board greenlit up to $1.0 billion more in Class A share buybacks. These can happen either on the open market or through private deals. Still, Lyft isn’t locked into purchasing any specific amount. 5
The next question is if the selloff triggers more downgrades and target cuts as brokers revise their models. Investors will also keep an eye on whether management maintains a confident tone once trading returns to normal.
The downside is straightforward. If ride growth remains weak, or if bad winter weather and price wars persist longer than anticipated, Lyft might face higher costs just as it works to preserve margins.
Regular trading kicks off at 9:30 a.m. EST, marking the initial test of whether the stock can hold steady after its earnings-driven slide — or if sellers will push it lower as the market weighs the Q1 forecast.
