Why Lyft (LYFT) Is Up 7.7% After Q3 Profit and United Airlines Loyalty Deal

• Lyft, Inc. recently reported third-quarter 2025 results, achieving a return to profitability with net income of US$46.07 million on sales of US$1.69 billion, alongside a new collaboration announced with United Airlines that enables Lyft riders to earn MileagePlus miles on eligible rides in the United States.
• This combination of operational turnaround and enhanced rider rewards signals Lyft’s focus on both financial improvement and customer engagement through loyalty partnerships.
• We’ll examine how Lyft’s partnership with United Airlines could influence its investment narrative and future customer retention outlook.

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Lyft Investment Narrative Recap

Shareholders in Lyft often believe in the company's ability to expand its urban transportation footprint, harness loyalty-driven partnerships, and benefit from the adoption of autonomous vehicles. The recent United Airlines collaboration and return to profitability support customer retention and operational momentum, but competitive pressure from Uber remains the key short-term catalyst, while regulatory risks around insurance and minimum coverage pose significant ongoing challenges; these latest developments do not materially change those dynamics.

Of the recent announcements, the new Waymo partnership to launch autonomous vehicle ride-hailing in Nashville stands out as especially relevant, given the sector’s high growth expectations tied to AV adoption. This move directly aligns with Lyft’s efforts to expand its addressable market, reduce long-term labor costs, and position itself against rivals on technology, which remains at the core of the business’s most important future catalysts.

In contrast, investors should also be aware that if insurance regulations tighten, increasing base ride costs, then...

Read the full narrative on Lyft (it's free!)

Lyft's outlook anticipates $8.7 billion in revenue and $324.2 million in earnings by 2028. This is based on an expected yearly revenue growth rate of 12.3% and an increase in earnings of about $232 million from the current $92.2 million.

Uncover how Lyft's forecasts yield a $20.18 fair value, a 8% downside to its current price.

Exploring Other Perspectives

Fourteen private investor estimates from the Simply Wall St Community place Lyft’s US$ fair value between 12.87 and 28.77, highlighting diverse opinions. With intense competition from Uber as a persistent theme, consider how different perspectives may influence your understanding of Lyft’s growth opportunities.

Explore 14 other fair value estimates on Lyft - why the stock might be worth 42% less than the current price!

Build Your Own Lyft Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lyft research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Lyft research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lyft's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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