Lyft operates as a two-sided marketplace connecting drivers with riders through its digital platform, offering ride-hailing services, motorized scooters, bicycle-sharing systems, and rental cars in the United States and select Canadian cities [5]. As the second-largest ridesharing company in the United States after Uber, Lyft sets fares using a dynamic pricing model based on local supply and demand, quoting prices to customers in advance and earning commissions from each booking [5].

• Lyft reported fourth-quarter 2024 earnings of 30 cents per share, beating the Zacks Consensus Estimate of 23 cents and showing year-over-year improvement [1][2].
• Revenue increased by 26.6% year-over-year to $1.55 billion, though it fell short of analyst expectations [2][4].
• The company achieved GAAP profitability for the first time in its history in August 2024, driven by highest-ever rider numbers and increased market share [5].

• Lyft's annual revenue reached $5.79 billion (TTM as of December 2024), representing 31.39% growth year-over-year [3].
• The company has demonstrated consistent revenue growth over the past five years, with a 13.9% average annual growth rate, outperforming the transportation industry's average [1].
• Gross bookings have been rising year-over-year, though management guided for Q1 2025 gross bookings between $4.05-4.20 billion, below analyst expectations of $4.26 billion at the time [4].
• Revenue growth has accelerated in recent quarters, with Q4 2024 showing 26.6% growth and Q3 2024 posting 31.54% growth [2][5].
• Lyft's primary revenue streams include ride-hailing services, bike and scooter rentals, and its B2B segment (Lyft Business), which offers corporate transportation solutions [3].

• As of December 2024, Lyft had $2.0 billion in cash and cash equivalents on its balance sheet and approximately $1 billion in debt, of which $430 million matures in 2025 [5].
• The company's debt-to-equity ratio is 153%, significantly higher than the recommended 40% threshold, indicating elevated financial risk [3].
• Lyft's times interest earned ratio was 1.9 at the end of 2024, below industry averages, suggesting potential challenges in servicing its debt obligations [4].
• Despite these concerns, Lyft has become profitable, with a return on equity of 3% and net margins of 0.4%, marking a significant improvement from previous years of losses [1].
• The company has shifted from consistently reporting losses to achieving GAAP profitability in 2024, showing improved financial stability [5].

The company is led by CEO David Risher, who joined in April 2023 with experience as Amazon's former head of product and U.S. retail, replacing co-founders Logan Green and John Zimmer who transitioned to non-executive roles as chair and vice chair of the board [3][4]. Under Risher's leadership, Lyft has focused on achieving profitability through cost-cutting measures, operational efficiencies, and strategic partnerships, which has resulted in the company's first GAAP profitable quarter in 2024 [5].

Based on discounted cash flow (DCF) analysis, Lyft appears undervalued with an estimated DCF value of $23.71 per share, representing a 48% discount to its current market price of approximately $12.22 [2]. The company trades at a forward sales multiple of 0.71, well below its five-year median of 2.93 and at a discount compared to industry levels and its main competitor Uber [4]. While Lyft's current P/S ratio suggests it's trading at a bargain, investors should consider the company's debt levels and competitive challenges when evaluating this apparent discount [2][4].

Lyft faces intense competition from Uber and other ridesharing services, which impacts market share and pricing strategies, forcing the company to maintain competitive pricing that can pressure margins [3][5]. Additionally, Lyft's high debt levels (153% debt-to-equity ratio) and relatively low times interest earned ratio (1.9) suggest financial vulnerability, particularly if economic conditions deteriorate or competition intensifies further [3][4]. The company also faces ongoing regulatory challenges related to driver classification, local regulations, and potential changes to the gig economy model that could significantly impact its business model and cost structure [2].

Lyft presents a mixed investment opportunity with significant upside potential based on its discounted valuation and recent profitability achievements, but carries substantial risks related to competition and financial leverage. Given the company's progress toward sustainable profitability, improving operational metrics, and substantial discount to intrinsic value estimates, a cautious "buy" recommendation is warranted for investors with higher risk tolerance and a long-term investment horizon.