Feb 10 (Reuters) - Lyft forecast first-quarter adjusted core profit below expectations on Tuesday as severe U.S. winter storms weigh on demand, and reported a surprise operating loss for 2025, sending shares down 14% after hours.
The results are a setback for Lyft's comeback narrative, capping a year of improving bookings growth, higher margins and expansion into new regions. They overshadowed the announcement of a $1 billion share buyback.
The weaker first-quarter forecast shows the effects of Winter
Storm Fern, which brought heavy snow, icy conditions and prolonged extreme cold to large parts of the United States, particularly on the East Coast, disrupting travel and dampening ride demand during the quarter.
Its 2025 operating loss came in at $188.4 million, while analysts expected a profit of $33.3 million, according to Visible Alpha data.
It expects adjusted core profit of $120 million to $140 million for the quarter, below estimates of $139.4 million.
Lyft forecast current-quarter gross bookings of $4.86 billion to $5 billion, with a midpoint largely in line with the average estimate of $4.95 billion.
The repurchase represents roughly 15% of Lyft's current market capitalization and comes on top of an earlier $750 million share repurchase program announced early last year.
Revenue in the December quarter stood at $1.59 billion, below estimates of $1.76 billion. Fourth-quarter revenue included a $168 million impact from legal, tax and regulatory reserve changes and settlements, without which revenue would have been about $1.8 billion, the company said.
The fourth quarter marked Lyft's most profitable on record, supported by stronger rider engagement and a growing mix of higher-value ride modes, even as severe winter weather across parts of the United States weighs on its forecast.
Lyft generated $1.12 billion in free cash flow in 2025, higher than estimates of $993.4 million.
It reported adjusted core earnings of $154.1 million for the fourth quarter, above expectations of $147.1 million, according to estimates compiled by LSEG.
Gross bookings in the quarter rose 19% to $5.07 billion, in line with expectations.
Growth last year was driven by an expansion into Europe, premium and larger-vehicle offerings, as well as partnerships. About 25% of Lyft's rides in the fourth quarter were linked to a partnership, including strong momentum from its tie-up with DoorDash.
(Reporting by Akash Sriram in Bengaluru; Editing by Alan Barona)
