Lyft

Software - Application • Technology • San Francisco, CA, United States • LYFT (NMS)

844 250 2773 185 Berry Street, San Francisco, CA 94107, United States

Quarter: Q3 2025 Reported: September 5, 2025 Sentiment: Positive

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. The company operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. Its platform provides a ridesharing marketplace that connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

Analysis Summary

Lyft completed a significant financing event, issuing $500 million in 0% Convertible Senior Notes due 2030, which included the full exercise of the initial purchasers' option. The offering yielded net proceeds of approximately $487.7 million. This capital infusion is strategically allocated to enhance financial flexibility and support long-term growth initiatives. A notable portion, $42.0 million, was utilized for privately negotiated capped call transactions designed to mitigate potential dilution to Class A Common Stock upon conversion of the notes, with an initial cap price of $33.60 per share. Concurrently, Lyft executed a substantial share repurchase, spending $95.7 million to acquire approximately 5.7 million shares of its Class A Common Stock, demonstrating a commitment to shareholder value. The remaining proceeds are designated for a broad range of corporate uses, including further share repurchases under its existing plan, general corporate purposes, working capital, capital expenditures, and potential strategic acquisitions and transactions. The notes, maturing on September 15, 2030, bear no regular interest and have an initial conversion price of approximately $23.52 per share. Management's decision to pursue this non-dilutive financing structure (net of capped calls and concurrent repurchases) indicates a focus on efficient capital deployment and maintaining a strong financial position, while also signaling potential for future strategic M&A activities. The transaction reflects a proactive approach to managing its capital structure and market positioning. This report is a Form 8-K detailing a financing event and does not contain Q3 2025 earnings performance metrics such as revenue, net income, or EPS.

Key Highlights

• Lyft successfully completed a $500 million private offering of 0% Convertible Senior Notes due 2030.
• Net proceeds from the offering amounted to approximately $487.7 million.
• $42.0 million was used for capped call transactions to mitigate potential stock dilution.
• $95.7 million was used to repurchase approximately 5.7 million shares of Class A Common Stock concurrently with the offering.
• Remaining proceeds are allocated for future share repurchases, general corporate purposes, working capital, capital expenditures, and potential acquisitions.
• The notes mature on September 15, 2030, with an initial conversion price of approximately $23.52 per share.
• This document is a Form 8-K detailing a financing event, not a Q3 2025 earnings report.

Financial Metrics

eps

N/A

YoY: N/A

revenue

N/A N/A

YoY: N/A

guidance

net income

N/A N/A

YoY: N/A

capped call cap price

33.6 per share

initial conversion price

23.52 per share

net proceeds from offering

487.7 million

notes offering principal amount

500 million

shares repurchased concurrently

5.7 million shares

cost of capped call transactions

42 million

Stock Performance (90 Days)

Data through Dec 29, 2025

Layoff Events

Earnings Calls

Positive Signals

• Successful capital raise of $500 million through 0% convertible notes.
• Proactive mitigation of potential stock dilution through capped call transactions.
• Strategic use of proceeds, including significant concurrent share repurchases.
• Enhanced financial flexibility for future growth, M&A, and general corporate purposes.
• Favorable 0% interest rate on the convertible notes indicates strong market access.

Risks & Concerns

— Potential future dilution if Class A Common Stock price significantly exceeds the capped call cap price upon conversion.
— Market price volatility of Class A Common Stock could impact the value of the notes and conversion options.
— Increased complexity in the capital structure due to the introduction of convertible notes.
— Reliance on specific exemptions from registration for the offering and potential conversion shares.
— Uncertainty regarding the effectiveness and success of future uses of proceeds, such as acquisitions or additional share repurchases.