Lyft Inc.

08/07/2026 | Press release | Distributed by Public on 08/07/2026 04:01

Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the "2025 Annual Report"). As discussed in the section titled "Note About Forward-Looking Statements," the following discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled "Risk Factors" and other parts of this Quarterly Report on Form 10-Q and in our 2025 Annual Report. Our historical results are not necessarily indicative of the results that may be expected for any period in the future. Our fiscal year ends December 31.
Our Business
Lyft, Inc. (the "Company" or "Lyft") operates as a global mobility platform offering a mix of rideshare, taxis, private hire vehicles, executive chauffeur services, car sharing, bikes and scooters. Our established, scaled network of users is brought together by our robust technology platforms (the "Lyft Platform") that powers rides and connections every day. Our Lyft mobile applications (the "Lyft App") connects riders with drivers for on-demand ride services and supports a variety of other multimodal solutions.
Substantially all of our revenue is generated from our ridesharing marketplace that connects drivers and riders. We collect service fees and commissions from drivers for their use of our ridesharing marketplace. We also generate revenue from licensing and data access agreements, the sale of bikes and bike station software and hardware, advertising services, riders renting through our network of shared bikes and scooters, drivers renting vehicles through Express Drive and by making our ridesharing marketplace available to organizations through our Lyft Business offerings.
Financial and Operational Results for the Three Months Ended June 30, 2026 and 2025
Three Months Ended June 30,
2026
2025
% Change
(in millions, except percentages)
GAAP Financial Measures
Revenue $ 1,843.5 $ 1,588.2 16%
Net income
$ 50.3 $ 40.3 25%
Net income as a percentage of revenue
2.7 % 2.5 %
Net cash provided by operating activities $ 349.9 $ 343.7 2%
Key Metrics and Non-GAAP Financial Measures
Active Riders 30.5 26.1 17%
Rides 262.4 234.8 12%
Gross Bookings $ 5,504.2 $ 4,490.1 23%
Adjusted EBITDA(1)
$ 177.2 $ 129.4 37%
Net income as a percentage of Gross Bookings
0.9 % 0.9 %
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) 3.2 % 2.9 %
Free cash flow(1)(2)
$ 319.6 $ 329.4 (3)%
___________
(1)For more information regarding our use of our non-GAAP financial measures and reconciliations of these measures to the most comparable GAAP measures, see "Non-GAAP Financial Measures".
(2)Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment and scooter fleet.
Definitions of Key Metrics
Active Riders
The number of Active Riders is a key indicator of the scale of our user community.
We define Active Riders as all unique riders who have taken at least one ride during the quarter. If a ride is requested by another organization or person for the benefit of a rider, that rider is only included in the calculation of Active Riders if the ride is accessible in the rider's Lyft App.
The increase in the number of Active Riders in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was due primarily to international expansion, improved retention and overall marketplace health.
Rides
Rides represent the level of usage of our multimodal platform.
We define Rides as the total number of rides completed on our multimodal platform that contribute to our revenue. These include any Rides taken through our Lyft App. If multiple riders take a private rideshare ride, including situations where one party picks up another party on the way to a destination, or splits the bill, we count this as a single rideshare ride. Each unique segment of a Shared Ride is considered a single Ride. For example, if two riders successfully match in Shared Ride mode and both complete their Rides, we count this as two Rides. We have largely shifted away from Shared Rides, and now only offer Shared Rides in limited markets. We include all Rides taken by riders via our Concierge offering, even though such riders may be excluded from the definition of Active Riders unless the ride is accessible in that rider's Lyft App.
The increase in Rides in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was due primarily to international expansion and overall marketplace health.
Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)
Gross Bookings is a key indicator of the scale and impact of our overall platform.
We define Gross Bookings as the total dollar value of transactions including any applicable taxes, tolls and fees, for rides and other offerings provided by Lyft, excluding tips to drivers. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is calculated by dividing Adjusted EBITDA for a period by Gross Bookings for the same period. For the definition of Adjusted EBITDA, refer to "Non-GAAP Financial Measures".
The increase in Gross Bookings in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was primarily due to international expansion, and Rides growth which benefited from overall marketplace health.
Net income as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 were primarily due to our focus on cost discipline as growth in Gross Bookings outpaced growth in total costs and expenses, along with Rides growth and overall marketplace health. Net income as a percentage of Gross Bookings was partially offset by the increase in the provision for income taxes.
Components of Results of Operations
Revenue
Revenue consists of revenue recognized from fees paid by drivers for use of our Lyft Platform offerings, gross amounts collected from riders in certain markets where we control the transportation services provided, Concierge platform fees from organizations that use our Concierge offering, subscription fees paid by riders to access transportation options through the Lyft Platform, bikes and bike station hardware and software sales, licensing and data access agreements, and arrangements to provide advertising services to third parties that are interested in reaching users of our platform. Revenue also consists of rental revenues recognized through leases or subleases of vehicles primarily from our wholly-owned subsidiary, Flexdrive Services, LLC ("Flexdrive"). Revenue derived from our offerings is recognized in accordance with ASC 606 or ASC 842 as described in Note 3 "Revenue" to the condensed consolidated financial statements as well as the Critical Accounting Estimates and Note 2 of the notes to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025.
We offer various incentive programs to drivers that are recorded as a reduction to revenue if we do not receive a distinct good or service in consideration or if we cannot reasonably estimate the fair value of goods or services received.
Cost of Revenue
Cost of revenue primarily consists of costs directly related to generating revenue through our multimodal platform which primarily includes insurance costs, payment processing charges, payments to drivers or driver incentive costs in certain
markets where we control the transportation services provided, and other costs. Insurance costs consist of insurance generally required under transportation network company ("TNC") and city regulations for ridesharing, and bike and scooter rentals and also includes occupational hazard insurance for drivers. Payment processing charges include merchant fees, chargebacks and failed charges. Other costs included in cost of revenue are hosting and platform-related technology costs, personnel-related compensation costs, depreciation, amortization of technology-related intangible assets, asset write-off charges and costs related to Flexdrive, which include vehicle lease expenses and remarketing gains and losses related to the sale of vehicles.
Operations and Support
Operations and support expenses primarily consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users, bikes and scooters fleet operations support costs, driver background checks and onboarding costs, fees paid to third-parties providing operations support, facility costs and certain car rental fleet support costs. Bikes and scooters fleet operations support costs include general repairs and maintenance, and other customer support activities related to repositioning bikes and scooters for rider convenience, cleaning and safety checks.
Research and Development
Research and development ("R&D") expenses primarily consist of personnel-related compensation costs and facilities costs. Research and development costs are expensed as incurred.
Sales and Marketing
Sales and marketing expenses primarily consist of rider incentives, personnel-related compensation costs, certain driver incentives, advertising expenses, rider refunds, amortization of certain intangible assets and marketing partnerships with third parties. Incentive programs are intended to improve our marketplace. Sales and marketing costs are expensed as incurred.
General and Administrative
General and administrative expenses primarily consist of personnel-related compensation costs, professional services fees, certain insurance costs that are generally not required under TNC regulations, certain loss contingency expenses including legal accruals and settlements, insurance claims administrative fees, policy spend, depreciation, facility costs, amortization of certain intangible assets and other corporate costs. General and administrative expenses are expensed as incurred.
Interest Expense
Interest expense consists primarily of interest incurred on our convertible senior notes, as well as the related amortization of deferred debt issuance costs and debt discount. Interest expense also includes interest incurred on our Non-Revolving Loan and our Master Vehicle Loan.
Other Income, Net
Other income, net consists primarily of interest earned on our cash, cash equivalents and restricted and unrestricted investments and realized and unrealized gains and losses on foreign currency transactions and balances.
Provision for Income Taxes
Our provision for income taxes consists of federal and state taxes in the U.S. and foreign taxes in jurisdictions in which we conduct business. As we expand the scale of our international business activities, any changes in the U.S. and foreign taxation of such activities may increase our overall provision for income taxes in the future.
We record a valuation allowance to reduce deferred tax assets to the net amount that we believe is more-likely-than-not to be realized. In assessing the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical profitability, expectations and risks associated with future taxable income, and ongoing tax planning strategies.
Based on available positive and negative evidence, we continue to maintain a valuation allowance against the California R&D credits, which we believe is not more-likely-than-not to be realized, as we expect R&D tax credit generation to exceed our ability to use these credits in future periods. In addition, we continue to maintain a valuation allowance against the deferred tax assets in some foreign jurisdictions.
Results of Operations
The following table summarizes our historical condensed consolidated statements of operations data:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(in thousands)
Revenue $ 1,843,544 $ 1,588,183 $ 3,494,033 $ 3,038,355
Costs and expenses
Cost of revenue 926,421 935,734 1,790,565 1,798,608
Operations and support 128,708 117,433 253,063 223,768
Research and development 119,220 109,325 243,372 221,820
Sales and marketing 319,986 190,922 592,922 372,939
General and administrative 301,643 232,339 571,879 447,639
Total costs and expenses 1,795,978 1,585,753 3,451,801 3,064,774
Income (loss) from operations 47,566 2,430 42,232 (26,419)
Interest expense (5,471) (5,032) (10,696) (11,182)
Other income, net 36,300 46,989 66,628 87,906
Income before income taxes 78,395 44,387 98,164 50,305
Provision for income taxes 28,101 4,073 33,620 7,424
Net income $ 50,294 $ 40,314 $ 64,544 $ 42,881
The following table sets forth the components of our condensed consolidated statements of operations data as a percentage of revenue:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Revenue 100.0 % 100.0 % 100.0 % 100.0 %
Costs and expenses
Cost of revenue 50.3 58.9 51.2 59.2
Operations and support 7.0 7.4 7.2 7.4
Research and development 6.5 6.9 7.0 7.3
Sales and marketing 17.4 12.0 17.0 12.3
General and administrative 16.4 14.6 16.4 14.7
Total costs and expenses 97.4 99.8 98.8 100.9
Income (loss) from operations 2.6 0.2 1.2 (0.9)
Interest expense (0.3) (0.3) (0.3) (0.4)
Other income, net 2.0 3.0 1.9 2.9
Income before income taxes 4.3 2.8 2.8 1.7
Provision for income taxes 1.5 0.3 1.0 0.2
Net income 2.7 % 2.5 % 1.8 % 1.4 %
Comparison of the three and six months ended June 30, 2026 to the three and six months ended June 30, 2025
Revenue
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Revenue $ 1,843,544 $ 1,588,183 16 % $ 3,494,033 $ 3,038,355 15 %
Revenue increased $255.4 million, or 16%, in the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, due primarily to an increase of 12% in Rides and 17% in Active Riders, and international expansion.
Investments in driver supply, which are recorded as a reduction to revenue, increased for the quarter ended June 30, 2026 as compared to the same quarter in the prior year to maintain marketplace balance.
Revenue increased $455.7 million, or 15%, in the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, due primarily to an increase of 10% in Rides and international expansion. Investments in driver supply, which are recorded as a reduction to revenue, decreased for the six months ended June 30, 2026 as compared to the same period in the prior year as driver supply on the platform benefited from organic growth and drivers spending more time on the platform.
We expect revenue will fluctuate based upon factors such as ride volume, driver supply, pricing, incentives and seasonality specifically related to our network of shared bikes and scooters.
Cost of Revenue
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Cost of revenue $ 926,421 $ 935,734 (1) % $ 1,790,565 $ 1,798,608 - %
Cost of revenue remained relatively flat in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Cost of revenue included a decrease in insurance costs stemming from a cost per mile decrease due to California's rideshare insurance reform bill, SB 371, and favorable changes in estimates resulting from new developments in claims originating from prior years, offset by higher ride volume.
Cost of revenue remained relatively flat in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Cost of revenue included a decrease in insurance costs stemming from a cost per mile decrease due to California's rideshare insurance reform bill, SB 371, and favorable changes in estimates resulting from new developments in claims originating from prior years, offset by higher ride volume.
We expect to see cost of revenue increase in the near term on a year over year basis due to higher insurance costs driven by recent economic factors and the renewals of our third-party insurance agreements, but we expect total insurance costs will continue to increase at a lower rate than they have historically as a result of California's rideshare insurance reform bill, SB 371, which reduces our insurance rate in California.
Operations and Support
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Operations and support $ 128,708 $ 117,433 10 % $ 253,063 $ 223,768 13 %
Operations and support expenses increased $11.3 million, or 10%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The increase was primarily due to increases in bikes and scooters fleet operations support costs and personnel-related costs driven by increased headcount primarily due to international expansion.
Operations and support expenses increased $29.3 million, or 13%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The increase was primarily due to increases in bikes and scooters fleet operations support costs and personnel-related costs driven by increased headcount primarily due to international expansion.
Research and Development
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Research and development $ 119,220 $ 109,325 9 % $ 243,372 $ 221,820 10 %
Research and development expenses increased $9.9 million, or 9%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The increase was primarily due to personnel-related costs driven by increased headcount.
Research and development expenses increased $21.6 million, or 10%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The increase was primarily due to personnel-related costs driven by increased headcount.
Sales and Marketing
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Sales and marketing $ 319,986 $ 190,922 68 % $ 592,922 $ 372,939 59 %
Sales and marketing expenses increased $129.1 million, or 68%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The increase was primarily due to investments in rider engagement including (i) a $87.0 million increase of costs related to our incentive programs from $99.9 million for the three months ended June 30, 2025 to $186.9 million for the three months ended June 30, 2026 and (ii) a $21.1 million increase in marketing partnerships with third parties.
Sales and marketing expenses increased $220.0 million, or 59%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The increase was primarily due to investments in rider engagement including (i) a $167.8 million increase of costs related to our incentive programs from $183.7 million for the six months ended June 30, 2025 to $351.5 million for the six months ended June 30, 2026 and (ii) a $37.7 million increase in marketing partnerships with third parties.
General and Administrative
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
General and administrative $ 301,643 $ 232,339 30 % $ 571,879 $ 447,639 28 %
General and administrative expenses increased $69.3 million, or 30%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. The increase was primarily due to a $39.2 million net increase in certain loss contingencies related to legal and tax accruals and settlements. There were also increases in personnel-related costs driven by increased headcount and consulting and advisory costs.
General and administrative expenses increased $124.2 million, or 28%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. The increase was primarily due to a $76.2 million net increase in certain loss contingencies including legal and tax accruals and settlements. There were also increases in personnel-related costs driven by increased headcount and consulting and advisory costs. These increases were partially offset by a decrease in stock-based compensation.
Interest Expense
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Interest expense $ (5,471) $ (5,032) 9 % $ (10,696) $ (11,182) (4) %
Interest expense increased $0.4 million, or 9%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Interest expense decreased $0.5 million, or 4%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Other Income, Net
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Other income, net $ 36,300 $ 46,989 (23) % $ 66,628 $ 87,906 (24) %
Other income, net decreased $10.7 million, or 23%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. This was primarily due to decreases from foreign currency exchange and interest income. These decreases were partially offset by a gain related to our equity method investments.
Other income, net decreased $21.3 million, or 24%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. This was primarily due to decreases in interest income and foreign currency exchange.
Provision for Income Taxes
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 % Change 2026 2025 % Change
(in thousands, except for percentages)
Provision for income taxes $ 28,101 $ 4,073 590 % $ 33,620 $ 7,424 353 %
Provision for income taxes increased $24.0 million, or 590%, in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 primarily due to the impact of the release of the valuation allowance on our U.S. deferred tax assets in the fourth quarter of 2025.
Provision for income taxes increased $26.2 million, or 353%, in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 primarily due to the impact of the release of the valuation allowance on our U.S. deferred tax assets in the fourth quarter of 2025.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)
Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net income is the most directly comparable financial measure to Adjusted EBITDA.
We calculate Adjusted EBITDA as net income, adjusted for:
•interest expense;
•other income, net;
•provision for (benefit from) income taxes;
•depreciation and amortization;
•stock-based compensation;
•payroll tax expense related to stock-based compensation;
•sublease income;
•gain from lease termination, if any;
•costs related to acquisitions, divestitures and other corporate matters, if any;
•certain legal, tax, and regulatory reserve changes and settlements, if any; and
•restructuring charges, if any.
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is calculated by dividing Adjusted EBITDA for a period by Gross Bookings for the same period.
We sublease certain office space and earn sublease income. Sublease income is included within other income, net on our condensed consolidated statement of operations, while the related lease expense is included within operating expenses and loss from operations. We believe the adjustment to include sublease income in Adjusted EBITDA is useful to investors by enabling them to better assess our operating performance, including the benefits of recent transactions, by presenting sublease income as a contra-expense to the related lease charges within our operating expenses.
We exclude certain costs related to acquisitions including due diligence costs, professional fees in connection with an acquisition, certain financing costs, and certain integration-related expenses. These expenses are unpredictable, and depend on factors that may be outside of our control and are not reflective of our ongoing core operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of costs related to acquisitions, may not be indicative of such future costs. We believe excluding costs related to acquisitions, divestitures and other corporate matters facilitates the comparison of our financial results to our historical operating results and to other companies in the industry.
Certain legal, tax, and regulatory reserve changes and settlements are primarily related to certain reserves and/or settlements for significant legal proceedings or governmental investigations and the associated fees. These matters have limited precedent, cover extended historical periods and are unpredictable in both magnitude and timing, therefore are distinct from normal, recurring legal, tax and regulatory matters and related expenses incurred in our ongoing operating performance.
For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net income to Adjusted EBITDA, see the section titled "Reconciliation of Non-GAAP Financial Measures".
Free Cash Flow
Free cash flow is a measure used by our management to understand and evaluate our operating performance and trends. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our ability to generate or use cash to enhance the strength of our balance sheet, further invest in our business and pursue potential strategic initiatives.
We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.
Free cash flow has certain limitations, including that it does not reflect our future contractual commitments and it does not represent the total increase or decrease in our cash balance for a given period. Free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. For more information regarding the limitations of free cash flow and a reconciliation of net cash provided by (used in) operating activities to free cash flow, see the section titled "Reconciliation of Non-GAAP Financial Measures".
Reconciliation of Non-GAAP Financial Measures
We use our non-GAAP financial measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.
We compensate for these limitations by providing a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measure. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our non-GAAP financial measures in conjunction with the respective most directly comparable GAAP financial measures.
Net income is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net income to Adjusted EBITDA (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Net income $ 50.3 $ 40.3 $ 64.5 $ 42.9
Adjusted to exclude the following:
Interest expense(1)
6.5 6.2 12.7 13.6
Other income, net (36.3) (47.0) (66.6) (87.9)
Provision for income taxes
28.1 4.1 33.6 7.4
Depreciation and amortization 38.8 30.6 75.4 64.2
Stock-based compensation 76.6 82.1 163.4 175.3
Payroll tax expense related to stock-based compensation 3.3 3.9 8.6 7.9
Sublease income - 0.1 0.4 0.1
Costs related to acquisitions, divestitures and other corporate matters
7.9 9.1 13.1 12.3
Certain legal, tax, and regulatory reserve changes and settlements
2.1 - 4.8 -
Adjusted EBITDA(2)
$ 177.2 $ 129.4 $ 310.0 $ 235.9
Gross Bookings $ 5,504.2 $ 4,490.1 $ 10,450.2 $ 8,652.5
Net income as a percentage of Gross Bookings
0.9% 0.9% 0.6% 0.5%
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) 3.2% 2.9% 3.0% 2.7%
_______________
(1)Includes $1.0 million and $2.0 million related to the interest component of vehicle related finance leases within cost of revenue in the three and six months ended June 30, 2026, respectively. Includes $1.2 million and $2.5 million related to the interest component of vehicle related finance leases within cost of revenue in the three and six months ended June 30, 2025, respectively.
(2)Due to rounding, numbers presented may not calculate precisely to the totals provided.
Net cash provided by operating activities is the most directly comparable financial measure to free cash flow. The following table provides a reconciliation of net cash provided by operating activities to free cash flow (in millions):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Net cash provided by operating activities
$ 349.9 $ 343.7 $ 657.6 $ 631.0
Less: purchases of property and equipment and scooter fleet
(30.3) (14.3) (50.7) (20.8)
Free cash flow(1)
$ 319.6 $ 329.4 $ 606.9 $ 610.2
_______________
(1)Due to rounding, numbers presented may not calculate precisely to the totals provided.
Cash Flows
The following table summarizes our cash flows for the periods indicated (in thousands):
Six Months Ended June 30,
2026 2025
Net cash provided by operating activities
$ 657,604 $ 630,962
Net cash (used in) provided by investing activities (64,558) 496,262
Net cash used in financing activities (528,655) (699,272)
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents (4,831) 1,120
Net increase in cash, cash equivalents and restricted cash and cash equivalents $ 59,560 $ 429,072
Operating Activities
Cash provided by operating activities was $657.6 million for the six months ended June 30, 2026, which consisted of net income of $64.5 million adjusted for $238.4 million of non-cash items, and changes in working capital of $354.7 million. Net income improved from $42.9 million for the six months ended June 30, 2025 to $64.5 million for the six months ended June 30, 2026 as a result of increased revenue and continued cost discipline. Non-cash adjustments primarily consisted of stock-based compensation expense of $163.4 million, and depreciation and amortization expense of $75.4 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to an increase in ride volume in the first half of 2026 compared to prior periods, partially offset by a decrease in cost per mile as a result of California's rideshare insurance reform bill, SB 371, as well as favorable developments in claims originating from prior years, (ii) an increase in insurance related accruals and (iii) a decrease in insurance related assets primarily due to amortization. There was also an increase in certain loss contingencies, including legal accruals.
Cash provided by operating activities was $631.0 million for the six months ended June 30, 2025, which consisted of net income of $42.9 million adjusted for $199.4 million of non-cash items, and changes in working capital of $388.7 million. Net income (loss) improved from $(26.5) million for the six months ended June 30, 2024 to $42.9 million for the six months ended June 30, 2025 as a result of increased revenue and continued cost discipline. Non-cash adjustments primarily consisted of stock-based compensation expense of $175.3 million, which increased year over year, and depreciation and amortization expense of $64.2 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to prior periods, paired with an increase in ride volume in the first half of 2025 compared to prior periods, (ii) an increase in insurance related accruals and (iii) a decrease in insurance related assets primarily due to amortization. There also was an increase in accounts receivables and a net increase in accrued driver payments due to timing of payments, a decrease in our operating lease liabilities related to ordinary payments for our real estate operating leases, and a decrease in certain loss contingencies including tax and legal accruals.
Investing Activities
Cash used in investing activities was $64.6 million for the six months ended June 30, 2026, which primarily consisted of purchases of marketable securities of $1.8 billion, cash paid for acquisitions, net of cash acquired of $54.3 million and purchases of property and equipment and scooter fleet of $50.7 million, partially offset by proceeds from maturities of marketable securities of $1.5 billion, sales of marketable securities of $288.1 million and sales of property and equipment of $37.6 million.
Cash provided by investing activities was $496.3 million for the six months ended June 30, 2025, which primarily consisted of proceeds from sales and maturities of marketable securities of $2.1 billion and sales of property and equipment of $31.2 million, partially offset by purchases of marketable securities of $1.6 billion and purchases of property and equipment and scooter fleet of $20.8 million.
Financing Activities
Cash used in financing activities was $528.7 million for the six months ended June 30, 2026, which primarily consisted of repurchases of Class A common stock of $400.0 million, taxes paid related to net share settlement of equity awards of $66.4 million, repayment of loans of $44.0 million and principal payments on finance lease obligations of $23.1 million.
Cash used in financing activities was $699.3 million for the six months ended June 30, 2025, which primarily consisted of repayment of our 2025 Notes of $390.7 million, repurchase of Class A common stock of $200.0 million, taxes paid related to net share settlement of equity awards of $61.5 million, and repayment of loans of $33.2 million and principal payments on finance lease obligations of $20.9 million.
Liquidity and Capital Resources
As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of approximately $1.1 billion and short-term investments of approximately $656.6 million, exclusive of restricted cash and cash equivalents and restricted investments of $2.1 billion, and $420.0 million available to draw under our revolving credit facility, as described below. We believe our existing cash, cash equivalents, and short term investments, along with the available borrowings under our revolving credit facility will provide sufficient liquidity to meet our working capital needs, inclusive of short-term commitments such as capital expenditure needs, for at least the next 12 months. The portion of our cash and cash equivalents that is not invested is held at several large financial institutions and our investments are focused on the preservation of capital, fulfillment of our liquidity needs, and maximization of investment performance within the parameters set forth in our investment policy and subject to market conditions. The investment policy sets forth credit rating minimums, permissible allocations, and limits our exposure to specific investment types. We believe these policies mitigate our exposure to any risk concentrations.
Debt
On November 3, 2022, we entered into a Revolving Credit Agreement with certain lenders which provides for a $420 million senior secured revolving credit facility, with a sublimit of $168 million for the issuance of letters of credit (as amended to date, the "Revolving Credit Facility"), maturing on November 3, 2027. As of June 30, 2026, no amounts have been drawn under the Revolving Credit Facility. Our available credit under the Revolving Credit Facility is reduced by $61.3 million in letters of credit issued under the Revolving Credit Facility as of June 30, 2026. Refer to Note 11 "Debt" to the condensed consolidated financial statements for further discussion on the Revolving Credit Facility, including covenant requirements.
In February 2024, we issued $460 million aggregate principal amount of the 2029 Notes and in September 2025, we issued $500 million aggregate principal amount of the 2030 Notes, maturing in March 2029 and September 2030, respectively, unless earlier converted, redeemed or repurchased. Refer to Note 11 "Debt" to the condensed consolidated financial statements for information regarding these transactions.
Restricted Assets
We collect the fare and related charges from riders on behalf of drivers at the time the ride is delivered using the rider's authorized payment method, and we retain any fees owed to us before making the remaining disbursement to drivers. Accordingly, we maintain no accounts receivable from drivers. Our contracts with insurance providers require reinsurance premiums to be deposited into trust accounts with a third-party financial institution from which the insurance providers are reimbursed for claims payments. Our restricted reinsurance trust assets as of June 30, 2026 and December 31, 2025 were $2.1 billion and $1.9 billion, respectively.
Share Repurchase
In February 2026, our board of directors authorized a share repurchase program for the repurchase of up to $1.0 billion of our Class A common stock (the "2026 Share Repurchase Program"). Under the 2026 Share Repurchase Program, we repurchased $150.0 million of our Class A common stock and $850.0 million remained available as of June 30, 2026. We have entered into, and from time to time expect to enter into, Rule 10b5-1 trading plans to facilitate the repurchase of shares under the authorization. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Refer to Note 12 "Common Stock" to the condensed consolidated financial statements for information regarding the 2026 Share Repurchase Program.
We plan to continue to focus on and actively manage our cash balances and liquidity, capital expenditures, working capital and operating expenses. In particular, we continue to actively monitor the impact of the uncertain macroeconomic environment, including credit markets, inflation and interest rates, and have made adjustments to our expenses and cash flow.
Our future capital requirements will depend on many factors, including, but not limited to our growth, the effectiveness of our efforts to align our expenses with our current operating needs and short-term commitments, our ability to attract and retain drivers and riders on our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, potential strategic transactions including acquisitions of businesses, new technologies, services and other assets, actual insurance payments for which we have made reserves, and the expansion of sales and marketing activities, as well as satisfaction of our obligations with respect to indebtedness. See the section titled "Risk Factors" including the subsection titled "Risk Factors-Risks Related to Financing and Transactional Factors" included in Part 2, Item 1A in this Quarterly Report on Form 10-Q for additional discussion of risks that our business faces.
Contractual Obligations and Commitments
As of June 30, 2026, there have been no material changes from the contractual obligations and commitments previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Critical Accounting Estimates
Our condensed consolidated financial statements and the related notes thereto are prepared in accordance with GAAP. The preparation of condensed consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected.
There have been no material changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Recent Accounting Pronouncements
See Note 2 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for recently issued accounting pronouncements as of the date of this report.
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