Lyft Posts $9.7 Million Third-Quarter Net Loss as Revenue Declines
Key Facts
Lyft reported a net loss of $9.7 million for the third quarter ended September 30 after the market closed on November 5, 2026, a shift that came alongside the impact of changes in reserves and legal, tax and regulatory settlements. The company said the total impact was $117.9 million, of which $69.1 million was deducted from revenue. Revenue was $1.8 billion, up 8% year over year, according to its earnings release. Revenue would have been $1.9 billion excluding the reduction related to settlements. Lyft also said net income fell 121% year over year to a loss of $9.7 million, including the total impact of settlements and reserves.
The company’s release showed that the settlements’ impact was not limited to the revenue line: Lyft grouped changes in reserves and legal, tax and regulatory settlements into a total impact of $117.9 million on quarterly results. The portion recorded as a revenue reduction was $69.1 million, explaining the difference between reported revenue of $1.8 billion and revenue of $1.9 billion excluding that impact. Reported revenue rose 8% from the same quarter a year earlier, according to the company. At the same time, Lyft said net income fell 121% year over year to a net loss of $9.7 million. These figures place the impact of legal, regulatory and tax items alongside revenue performance in assessing the period’s results.
On the demand side, Lyft’s active riders reached a record 31.6 million in the third quarter, up 10% from the same period a year earlier. Rides also reached a record, at 273.5 million, up 10% year over year, the company said. The indicators show simultaneous growth in the rider base and usage during the quarter ended September 30. That came as the company reported a net loss and settlements affected revenue and results, highlighting the contrast between operating activity and the period’s accounting result. Lyft reported the figures in its third-quarter earnings announcement issued on November 5.
The announcement was reflected in the stock’s movement during the November 5 session: it closed at $17.84, compared with $18.74 at the previous session’s close, according to EL7 data. Reuters, in coverage published via Investing.com, said revenue missed analyst expectations and the stock fell 7.5% after the results as investors reacted negatively. The report cited revenue and the net loss in explaining the reaction to the results. The November 4 close preceded Lyft’s announcement, published the following day, and therefore serves as the prior-session comparison for the session in which the results emerged. The stock’s movement on announcement day combined the company’s reported loss and the financial impact of settlements with quarterly growth in riders and rides.
For the following period, Lyft forecast fourth-quarter 2026 gross bookings of between $5.74 billion and $5.94 billion, equivalent to year-over-year growth of between 13% and 17%. It also set an Adjusted EBITDA range of between $188 million and $213 million. The company gave these ranges in its release without comparing them with market estimates. The guidance provides indications for the coming period on gross bookings and adjusted operating earnings, following third-quarter results that included a net loss and an impact from settlements. The release did not compare the announced ranges with analyst consensus.
Chief Executive David Risher linked the company’s plans to a new service and autonomous-vehicle partnerships. He said Lyft launched the Lyft Go program and that autonomous-vehicle partnerships were "positioning the company to become the best hybrid operator in the industry." The company began making Waymo autonomous vehicles available through its app in Nashville in September, then opened a permanent depot to service those vehicles there in October. Lyft said the depot covers 80,000 square feet. These steps provide operational context for Risher’s comments on a model combining the company’s services with autonomous-vehicle partnerships.