Dear Shareholders,

Three years in, I’ve come to relish writing our annual shareholder letter. As companies become more established, it’s easy for these to become rote, but I’m not going to let that happen. I flat-out enjoy reflecting on all we’ve achieved and sharing what I’ve learned along the way.

If you’ve been following these letters, you know that I believe customer obsession drives profitable growth. Our performance over the last few years shows that this is more than a belief. It’s the truth. When we live out our purpose, when we serve our customers with excellence and seek to connect them, we deliver an experience people want over and over again.

In 2025, we delivered on our operational & financial performance and continue to be right on track to hit our 2027 targets. For the second year in a row, we made meaningful progress on our primary and secondary multi-year targets.

Beyond our long-term targets, Lyft also hit all-time highs across many metrics, especially when compared to where we were one year ago.

That doesn’t mean we just had a good quarter here and there, it means we achieved Goldfinger success. In the seventh Bond novel, Goldfinger, Ian Fleming coined a phrase that underscores how I feel about our operational excellence. To paraphrase Fleming: “Once is happenstance. Twice is coincidence. Three times is deliberate action.” You might have said we got lucky once in 2023, or that market conditions helped us out again in 2024. But twelve quarters of meeting or beating financial guidance? That’s proof that our performance in 2025 has come from building a machine for systematic innovation and execution. That’s Goldfinger.

I’m proud of that track record, and I hope you are too. But I don’t see it as only an assessment of what we’ve achieved. I believe it has earned us the right to think bigger.

When you're fighting for survival, you stabilize. As one of my martial-arts loving brothers, Michael, reminds me, it’s actually helpful to drop into a defensive posture. But once you’re crouching, the danger is that you stay there. At that point, you’re better off actively making a decision: Will you stay in place or will you make your next big move? It’s tempting to choose what seems safer: self-preservation mode. But if you fall prey to that temptation, you’ll stall.

That’s not my jam. The opportunity ahead of us is too important. I’m hell bent on transforming Lyft into a global platform that connects people to the physical world — one that leads the industry. That’s how we’ll all live our best lives.

We’ve shown you what strong execution looks like quarter after quarter, year after year. So here’s our playbook for transformative moves. We’re expanding our reach, building margin diversity, and setting ourselves up to win the autonomous future.

We’ll continue to expand out and up in terms of how we serve our customers.

Out means that you’ll see Lyft in new geographies.

We aren’t just a regional company anymore. In Europe, we will bring the best rideshare experience to more people by building on our successful Freenow acquisition.

Closer to home, we’ll keep growing our presence and improving our service in the U.S. in smaller markets (there’s still a ton of growth left there) and keep elevating our service in Canada and Puerto Rico. The result will be a stronger, growing business that’s more appealing as a global partner and more resilient to local variability.

Up refers to investing in high-service, high-margin offerings that attract premium audiences.

Right now, Lyft is the obvious choice for a waiter trying to make it to his shift on time or a grandmother headed to the airport to see her grandkids. In 2026, we’ll make Lyft the obvious choice for riders that demand the highest level of service, including an executive traveling internationally or celebrity headed to a World Cup game.

In this portfolio, we already have our industry-leading corporate program and our fast-growing on-demand Black car service, but our acquisition of TBR catalyzed our entry into ultra-luxury offerings and established the foundation to build our Global Chauffeur Network. Beyond the offerings themselves, TBR is the pinnacle of high-quality service, providing a mirror and a guide for all the ways we can continue to improve our service at all levels.

Drivers want to earn more; riders want to pay less. That’s why rideshare — like all marketplace businesses — is structurally low-margin. We need margin diversity as both foundation and fuel. Foundation keeps the core business stable; fuel funds ambitious bets and helps protect against preservation bias. Expanding up helps us diversify that margin, but Lyft Ads will take us even higher.

Last year, Ads delivered against a $100M annualized exit run rate target (a 2x increase year-over-year) and our innovation is just beginning.

How we’re redefining brand experiences beyond the banner:

Overall in Mobile Advertising, we’re creating an entirely new category — one that continues to spark connection while strengthening the rest of our business.

The biggest opportunity ahead is in how we deliver rides. Autonomous vehicles (“AVs”) are coming like a tidal wave — rising slowly, then arriving everywhere with unstoppable force. My most important job is ensuring we aren't knocked down by this wave, but that we ride it into the future.

Rideshare is well-prepared to benefit from AVs.

AVs will expand the total addressable market (“TAM”) while lowering the cost of rideshare.

We believe AVs represent a trillion-dollar-plus opportunity over the next decade, with a broad set of players participating in a once-in-a-generation mobility transformation. AVs are already bringing new riders to rideshare and unlocking new use cases. In San Francisco, the global hub for this tech, the market added millions of AV rides in Q4 '25 alone. Meanwhile, Lyft rides delivered by drivers grew almost 10% YoY in the region – faster than comparable cities. As rideshare adds AVs, the pie gets bigger.

But even as the pie expands, rideshare remains that high-volume, low-margin business I mentioned above. That means any opportunity to reduce costs changes the game. Rideshare’s two largest costs within rider fares are driver pay and insurance. It’s reasonable to expect that AVs will have a lower cost per mile to operate, perhaps by as much as 20% over time.

The chart below outlines what we believe the major cost categories are for commercializing AVs and how they'll change over time.

Within the rideshare industry, AVs will disproportionately benefit Lyft.

We’re already in a great position based on what AVs will unlock for rideshare. However, we’re not waiting for this wave to hit us. We need to ride it. That means assessing our assets and ensuring we leverage them to come out ahead.

Here’s a surprise. The most important variable in running a profitable robotaxi deployment isn't the cost of the vehicle or technology itself (though both matter). It's how much value you can realize from an expensive, depreciating asset. We measure that in terms of the number of hours a vehicle is productive on the road each day, and the cost of maintenance across an expected life of 3 years and roughly 300,000 miles. The difference between when and how that vehicle is productive and how well it is kept could create a cost variance of $50,000 or more per vehicle. Beyond that, there's the operator's ability to eke out incremental revenue from more productive hours on the road.

Lyft has a secret weapon for creating that cost advantage: Flexdrive, our fleet-management subsidiary overseeing owned and rented cars that drive over 550 million miles each year, and has done so for nearly a decade.

Flexdrive uses real-time vehicle health data to reduce downtime by predicting maintenance needs and aligning service with lower-demand periods.

In fact, Flexdrive consistently delivers an availability rate of nearly 90%, which ensures vehicles are on the road during peak revenue hours — not charging or waiting for repairs. When we apply this expertise to AV fleets, Flexdrive will reduce costs and help us retain margin internally.

In all, we believe Flexdrive will supercharge Lyft’s AV cost savings, which we estimate will deliver more than 20% additional cost efficiencies per mile on top of broad AV savings I mentioned above. (If you want to see what this looks like, check out our cool video that gives you a look behind the scenes.)

The benefits of AVs and the strengths we’ve built over the last decade will allow us to build the world’s best hybrid network.

Remember that wave? It can lift you up or crush you. Think of the winners and losers when analog photography went digital, or when DVDs gave way to streaming. The difference between winning and losing comes down to two things: seeing where the wave is headed and creating what you need to ride it at every stage.

I believe the wave is headed toward a hybrid future. Right now, there’s a lot of hype about the future of automation and AI. Some will try to convince you that in the world of transportation, AVs will take over immediately and entirely. But that’s not happening.

First, there’s the economics and physics: there’s no credible scenario under which anyone can produce enough AV supply to satisfy anything close to peak demand we see even today. Ride demand at 5pm is very different from ride demand at 2am — it can flex by a factor of over 20x. That’s not even accounting for what happens after Ariana Grande belts out her encore. Then, there are many instances when riders will simply want to be picked up as quickly as possible, or be served by a human driver. AVs won’t be helping with airport luggage any time soon. And, they can never offer the human touch that some will prefer in an increasingly automated world.

AVs provide consistent baseline supply across extended hours, which supports their unit economics. Human drivers offer the flexibility to quickly handle demand spikes during rush hours and busy periods, not to mention a personal connection. Together, this creates the highest-service, lowest-cost model that's both scalable and cost-effective.

When I look at the autonomous wave, the conditions are glassy for Lyft. We’ve got the assets and the advantages that matter:

My job is making sure we use all of the above — and then some — to create the best hybrid network and win the autonomous future.

 ^{*Based on Lyft Q4 2025 survey results}

Earlier, I referenced Ian Fleming, Goldfinger, and everyone’s favorite hero, James Bond. Spy stories can offer insight into strategy and intelligence, both of which are critical to our day-to-day work. Taking the long view though, I’m more focused on a different type of story.

At Lyft, we’re writing a comeback story for the ages.

But comebacks can only happen when your characters grow. For us, that means our leaders — including me. In last year’s letter to shareholders, I wrote about what I called Falcon Mode, staying high to see the big picture and then swooping down to get into details. The trick is knowing when to dive deep and when to stay high. This year, I realized I still have work to do on performing the trick right.

One big learning moment happened about halfway through the year. Our product teams had been working on a new concept to encourage rider loyalty: riders earn rewards by loading Lyft Cash to pay for rides. It was a cool idea, but I was frustrated by certain design elements so I asked for a meeting. I swept deep, deep into the details. I suggested various fixes, mandated a timeline to address problems, and begrudgingly approved an acceptable go-forward plan.

Something surprising happened when I got back to my desk. All of these details were captured by Google Gemini, which we had used to take notes and track action items. The summary was at the top of my inbox and it started with the following line: David Risher expressed frustration over the Lyft Cash user experience. It made me laugh, but it was also a mirror. How was I so frustrated that even a soulless AI picked up on it, and led with it?

Then as I read the summary of my ideas, I wondered: Were they really that great? And did we actually land on the right outcome? With my leaders, I often coach them to say less and develop their teams to be the experts. I had done the exact opposite. So, I did the tech thing — I launched an experiment. I didn’t tell anyone, but I intentionally tried stepping back to empower the leaders around me in different ways. A few months later, my Chief of Staff asked me if I had changed something. She had observed some shifts on our team, illustrated by an exchange she had with our EVP of Rideshare Experience & Marketplace, Sid.

Sid is one of the smartest guys you’ll ever meet. Remember that movie 21 about some college kids who counted cards? That’s based on the group of friends he had while getting his PhD in chemical physics. He’s brilliant, with a wicked sense of humor. But he’s also an introvert. In large meetings, he'd often stay quiet, concerned that chiming in might slow momentum down, even when his input was exactly what the discussion needed.

These days, he’s still soft-spoken, but he’s found his own way to lead with conviction — going to the whiteboard to make his point when numbers are easier than words and pushing back on me when he thinks I’m wrong. He’s gone from a good executor to a confident driver, and our business is better for it. That didn’t happen because I told him what to do. It happened because I gave him space to grow into his leadership.

People resist change, myself included. But I can’t expect Lyft to transform if I’m not willing to evolve as the CEO the company needs. If I want excellence, then I need leaders who raise the bar. If I want us to lead, then I need to give people space to reveal the best versions of themselves.

Sid represents only one of the many incredible characters in our story. Across Lyft, customer obsessed leaders are taking ownership, setting ambitious targets, and proving we can perform while we transform. This is the comeback story we're writing — one where heroes are built at every level of the company.

Thanks for being part of it.