Lyft Inc. shares plummeted 14.01% in after-hours trading following the release of its quarterly earnings report. The ride-hailing company reported mixed financial results that disappointed investors despite announcing a new $1 billion share repurchase program.

The stock decline was driven by several negative factors: Lyft forecast first-quarter adjusted EBITDA of $120 million to $140 million, below analyst expectations of $139.4 million, citing severe winter storms that disrupted ride demand. The company also reported a surprise operating loss of $188.4 million for 2025, compared to analyst expectations for a $33.3 million profit. Additionally, fourth-quarter revenue of $1.59 billion missed estimates of $1.76 billion.

While Lyft reported record fourth-quarter adjusted EBITDA of $154.1 million, beating expectations, and announced a substantial buyback program representing about 15% of its market capitalization, investors focused on the weaker guidance and unexpected 2025 loss. The company noted that Winter Storm Fern significantly impacted its first-quarter forecast, overshadowing positive momentum in bookings growth and margin expansion.