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Lyft Ends 2025 Profitable as Freenow Deal Sets Stage for 2026 Tests

Investors now want proof of durable margins under competitive pressure.

Overview

  • Lyft posted multiple quarters of positive free cash flow in 2025 and expanded adjusted EBITDA margins.
  • The company showed it can fund operations and investments without tapping capital markets.
  • The Freenow acquisition extended Lyft into dozens of European cities through regulated taxi networks and a more premium urban rider base.
  • Management faces 2026 tests that include integrating Freenow’s technology and payments, aligning pricing and onboarding, and navigating Europe’s fragmented regulations.
  • Tighter costs, optimized driver incentives, better reliability, and more predictable pricing supported steadier ride volume and higher rider frequency.