Shares of Lyft, Inc. (LYFT) surged 7.99% in after-hours trading on Thursday following the release of the company's strong first-quarter 2025 financial results and an announcement of an expanded share repurchase program.

The ride-hailing company reported a revenue of $1.45 billion for Q1, representing a 14% year-over-year increase. While this figure slightly missed analysts' expectations of $1.47 billion, other key metrics impressed investors. Lyft achieved a net income of $2.6 million, a significant improvement from a net loss of $31.5 million in the same quarter last year. The company's adjusted EBITDA reached $106.5 million, surpassing the estimated $92.4 million and marking a substantial increase from $59.4 million in Q1 2024.

In a move that further bolstered investor confidence, Lyft announced an increase in its share repurchase program to $750 million, with plans to deploy $500 million within the next 12 months. This decision comes in the wake of activist investor Engine Capital's recent proposal for strategic alternatives. The company also provided an optimistic outlook for Q2, forecasting gross bookings between $4.41 billion and $4.57 billion, and projecting ride growth in the mid-teens percentage range year-over-year. Lyft's expansion strategy into smaller, car-dependent markets such as Indianapolis, where rides grew 37% in Q1, appears to be paying off as the company seeks new avenues for growth beyond major U.S. metropolitan areas.