Lyft Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Eric Sheridan - Goldman Sachs Group Inc - Analyst : Thanks so much for taking the question. Maybe a two-parter. When you think about the scaling of some of your broadening out of the array of products you bring to market with a specific focus on affordability. Can you talk a little bit about what you're seeing in terms of maybe two factors. One, as a stimulant of both rider growth and rider frequency? And how you think the broader competitive landscape continues to evolve. When do you think about affordability becoming more a key theme across the industry looking out over the next 6 to 12 months? Thanks so much.

Question: Eric Sheridan - Goldman Sachs Group Inc - Analyst : Great, appreciate it. thank you.

Question: John Blackledge - TD Cowen - Analyst : Oh great. Two questions. First on the third quarter gross bookings guide, -- the range is 13% to 17%. Just curious if you can talk about the expected contribution from FREENOW or maybe frame the gross bookings guide range, excluding FREENOW? And then second question, kind of a follow-up on the partnership deals. Could you provide an update on some of the more impactful partnership deals that are driving the business. And as we think looking into the second half in 2026, what are some of the key existing deals that could be growth drivers? Thank you.

Question: John Blackledge - TD Cowen - Analyst : Thank you.

Question: Douglas Anmuth - JPMorgan Chase - Analyst : Thanks for taking the questions. David, can you talk more about how Lyft is looking to build the AV use case and when you think about some of the stuff that you're doing in Europe, for example, and the recent partnership that you announced with Baidu, what are the key capabilities that Lyft and FREENOW bring for AV Tech providers?

Question: Douglas Anmuth - JPMorgan Chase - Analyst : Great, thank you, David.

Question: Benjamin Black - Deutsche Bank AG - Analyst : Great, thank you for taking my questions. I just wanted to dig a little bit deeper into the Baidu partnership. -- sort of any sense on the economic model? And any way to sort of think about the vehicle ramp? And -- can you maybe talk about the regulatory process in Germany and the UK, do you have a clear site there? And then on FREENOW, now that the acquisition has closed, can you just talk about the incremental investment you may need to deploy to sort of ramp and scale that business? What are some of the key focus areas that you're looking at now that you're fully consolidated? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:00PM, LYFT.OQ - Q2 2025 Lyft Inc Earnings Call

Question: Steven Fox - Fox Advisors LLC - Analyst : Hi, good afternoon. Erin, I was wondering if you could break down free cash flows a little bit more. It was a very strong number. Is there anything unusual onetime in nature in that number? And outside of that, can you talk about the organic progress you made in cash flows? Thanks very much.

Question: Stephen Ju - UBS Securities - Analyst : Great. Thank you. So David, I think one of the things you talked about before in terms of a product development direction for Lyft is to hopefully start opening up a differentiated innovation wedge versus your competitor and you start diverging in different directions over time and Lyft will be known for various things and innovation, et cetera. But it seems like whatever innovation gap from either yourself or from Uber, gets closed fairly quickly. So -- has your thinking evolved here in terms of how Lyft competes, how Lyft resources, product development, et cetera? Thank you.

Question: Stephen Ju - UBS Securities - Analyst : Thank you.

Question: Nikhil Devnani - Bernstein - Analyst : Hi there, thanks for taking the question. Apologies if this is a little bit repetitive, been bouncing around. But now that you've closed the three now transaction, can you maybe talk about how you're thinking about investment into Europe as a region for you next year and thereafter? Is this going to be a significant area of investment or not so much? And I guess, how much investment is required to get that business to grow a bit quicker and add to the overall platform?

Question: Nikhil Devnani - Bernstein - Analyst : Appreciate it. Thank you. And if I could follow up with a separate question. Overall, it seems like the DashPass program has been helpful for you. Is there any reason that Lyft should not be a bigger part of other larger subscription bundles out there? Is that a viable way to acquire new customers when you think about your partnership strategy at large -- or is some of the constraints there, just making sure the economics make sense. And obviously, there's between Prime, Walmart, Netflix and Starkart, there's a lot of bundles out there that are pretty large. Are those addressable at some point as well via partnership, do you think?

Question: Nikhil Devnani - Bernstein - Analyst : Thank you.