Lyft Inc. Class A Common Stock (LYFT)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of a headline bargain that may not be a bargain. Lyft runs a ridesharing marketplace, connecting drivers and riders through mobile apps. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8B and net income was $50.3M; in fiscal Q1 2026, ended 2026-03-31, net income was $14.3M. Those are real profits, but thin. The prior fiscal years explain the excitement: FY2025, ended 2025-12-31, produced revenue of $5.9B and net income of $2.8B, versus FY2024 net income of $22.8M and an FY2023 loss of $340.3M. That swing is why FairStock’s P/E is 2.38 at the 2026-10-13 close of $16.38, but it is not a sustainable run-rate if quarterly profits are only $14M-$50M. The business has network effects, yet ridesharing is competitive and incentive-driven. Financial health is mixed: the D/E of 0.43 is not alarming, FairStock’s Piotroski score is 9/9, and trailing FCF is $1.1B for a FairStock FCF yield of 17.9%. But FairStock’s ROCE is -0.86%, its Altman Z-Score is -0.56, and its EV/EBITDA is 39.21. FairStock’s Graham Number is $35.10, implying 53.33% margin of safety, but that rests on earnings I cannot yet call durable. This is the computed Lynch TURNAROUND category. I would demand several more quarters of consistent profit before trusting the cheap multiple.

In plain English: Lyft runs a phone app that connects people who need rides with drivers. The business is improving, with higher revenue, recent profitable quarters, and strong cash generation, but profit margins are still thin. The stock looks cheap based on last year's very large reported profit, though recent quarters show much smaller earnings, so that cheapness is not yet proven.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer