Lyft CEO says no signs of worry with the consumer
Lyft CEO David Risher poses for a portrait in New York City, U.S., April 16, 2025.
Kylie Cooper | Reuters
Lyft shares surged by 28% on Friday following the ride-sharing company’s announcement of an increased share buyback plan and better-than-expected gross bookings.
The stock experienced its most significant gain since February 2024.
CEO David Risher, in an interview with CNBC’s “Squawk Box,” expressed confidence in Lyft’s performance despite concerns about a slowing consumer environment amidst economic uncertainties.
“Our team is performing exceptionally well, and there is a strong demand from consumers,” he stated.
Gross bookings rose by 13% year-over-year to reach $4.16 billion, slightly surpassing the StreetAccount estimate of $4.15 billion. Lyft reported its 16th consecutive period of gross bookings growth.
Rides increased by 16% to 218.4 million, exceeding the FactSet estimate of 215.1 million.
Lyft’s revenue for the first quarter grew by 14% compared to the previous year, reaching $1.45 billion, slightly below the LSEG’s estimate of $1.47 billion. The company reported a net income of $2.57 million, or 1 cent per share, an improvement from the net loss of $31.54 million, or 8 cents per share, in the same period last year.
The board also approved an increase in Lyft’s share repurchase plan to $750 million from $500 million, with the intention to utilize $500 million over the next year.
Lyft 5-day stock chart
Activist investor Engine Capital announced on Friday that it would terminate its campaign at Lyft and withdraw its board nominations after the company’s share repurchase revelation.
“Following constructive discussions, the Board’s commitment to significant share buybacks in the upcoming quarters is a positive first step,” stated Arnaud Ajdler, founder and portfolio manager.
Uber, a competitor in the ride-sharing industry, saw its stock decline earlier in the week following a mixed performance in the first quarter.
Goldman Sachs upgraded Lyft shares to a buy rating from neutral post the earnings report, highlighting growth in rides and bookings, along with solid execution in a stable industry environment.
