Lyft Stock Price Forecast - LYFT at $22.02: 81% Annual Gain, Waymo Robotaxis, and Europe Expansion Fuel Upside

Lyft stock, trading at $22.02 and slipping 3.58% intraday, is still one of the most compelling rebound stories in the technology and mobility sector. Despite the pullback, NASDAQ:LYFT has surged 70.81% year-to-date and delivered an 81.06% gain over the past twelve months, compared with the S&P 500’s 18.09% annual increase. That massive outperformance is even more striking considering the stock’s five-year return remains down 26.89%, showing how brutal the post-IPO years were. The rebound from a 52-week low of $9.66 to a high of $23.50 captures investor enthusiasm over Lyft’s turnaround, profitability, and new partnerships. The volatility, underlined by a beta of 2.34, suggests traders must be prepared for sharp swings, but the directional move has been bullish as execution improves.

Revenue Acceleration and Rider Growth Momentum

Lyft has rebuilt its top line aggressively, with trailing twelve-month revenue hitting $6.11 billion, reflecting 10.6% year-over-year growth. Gross bookings set a record at $4.5 billion in Q2, marking the 10th straight quarter of record highs. Rider growth has also been solid, with 26.1 million active riders, up 10% year over year, while total ride volume climbed to 234.8 million rides. Even though this fell short of consensus by about 1.2 million, the scale of expansion demonstrates a company no longer just stabilizing but actively regaining ground. For a business that once operated under the weight of slowing U.S. mobility growth, this rider expansion is crucial to maintaining scale and leverage against competitors.

Profitability Milestones and Cash Flow Strength

The biggest shift in Lyft’s story is profitability. After years of cash burn, NASDAQ:LYFT generated $92.19 million in net income over the trailing twelve months, posting EPS of $0.23. Q2 earnings underscored the change: EPS rose to $0.10 from $0.01 a year ago, beating expectations by a wide margin. Adjusted EBITDA surged to $129.4 million, the strongest in company history. Profit margins remain slim at 1.51%, but the move into the black is symbolic: Lyft has turned the corner from survival to execution. Free cash flow has been remarkable, with $993 million generated in the past twelve months, proving that the company is capable of self-funding expansion and shareholder returns, highlighted by the $237 million stock buybacks completed.

Valuation Multiples Reflect a New Phase

The valuation of NASDAQ:LYFT stock underscores its transformation. The forward P/E has dropped to 20.20, a major compression from 105.07 earlier this year, showing how quickly investors are recalibrating the stock as profitability sticks. The PEG ratio of 0.30 highlights undervaluation compared to expected growth rates, while the price-to-sales ratio of 1.58 and price-to-book of 12.94 appear expensive but signal confidence in scalability. The enterprise value-to-revenue multiple sits at 1.35, modest relative to growth tech peers, while the enterprise value-to-EBITDA multiple at 31.06 reflects faith that margins will expand. Compared with Uber’s $197 billion market cap, Lyft’s $9 billion valuation gives it significant room for re-rating if execution continues.

Waymo Partnership and the Autonomous Vehicle Pivot

The September 2025 announcement of a Waymo partnership in Nashville represents a seismic shift for Lyft’s growth story. Starting in 2026, Lyft will manage Waymo’s fleet of autonomous vehicles while offering rides through both the Lyft and Waymo apps. This dual-access model increases visibility and expands market reach without forcing Lyft to fund costly autonomous vehicle R&D internally. This is not an isolated move — it is Lyft’s third autonomous vehicle agreement in 10 months, joining collaborations with May Mobility, Baidu, and Mobileye. Jefferies raised its price target from $15 to $22 following the deal, while BMO set $20, calling the move strategically important but execution-dependent. The competitive angle is equally critical: Uber has its own AV partnerships, Tesla has begun rolling out robotaxis in Austin, and Amazon-backed Zoox continues to test in San Francisco and Las Vegas. Lyft’s pivot makes it an aggregator of autonomous demand, an enviable position if adoption accelerates.

Global Reach Through the Freenow Acquisition

Lyft’s acquisition of Freenow expanded its geographic footprint into nine European countries, moving it beyond the duopoly battlefield of U.S. rideshare. Freenow’s economics differ from Lyft’s U.S. model, with lower revenue margins in the low teens versus Lyft’s mid-30% North American margins. However, higher gross bookings per ride make it accretive to scale. The deal also strengthens Lyft’s global partnership portfolio — Hilton, Chase, United Airlines, and DoorDash now have a partner with broader reach. This is critical in competing with Uber’s international dominance. Lyft is positioning itself not only as a rideshare company but as a global platform in the Mobility on Demand sector, where Statista projects market revenue to expand from $179.7 billion in 2025 to nearly $230 billion by 2030, with user penetration rising from 23.5% to 28.7%. Lyft’s entry into fragmented European markets offers risk but also substantial TAM expansion.

Balance Sheet Resilience and Debt Profile

Lyft reported $1.79 billion in cash on hand, paired with operating cash flow of $1.05 billion. Debt remains a watch point, with $809 million outstanding and a debt-to-equity ratio of 110.45%. The current ratio of 0.70 points to limited short-term liquidity cushion, but robust free cash flow has provided room to maneuver. The nearly $1 billion in free cash flow over the trailing year not only funds buybacks but also positions Lyft to reinvest in scaling autonomous vehicle operations and its European expansion. Unlike earlier years, where survival meant constant dilution or borrowing, Lyft now operates with financial self-sufficiency.

Competitive Landscape Against Uber and Others

Uber, with its $94.54 share price and $197 billion market cap, still overshadows Lyft’s scale. Uber’s ecosystem — spanning Eats, freight, and payments — provides broader revenue diversification. Yet Lyft’s 81% one-year stock gain surpasses Uber’s 48% advance, signaling that markets are rewarding Lyft’s sharper turnaround story. Lyft may remain the smaller player, but the asymmetric upside of a $9 billion company gaining credibility as a profitable operator is far larger than Uber’s incremental gains. Tesla’s robotaxi ambitions and Amazon’s Zoox project represent future threats, but Lyft’s diversified partnerships may leave it better hedged than companies tied to a single AV platform.