Lyft shares plunged 14% in extended trading after the ride-hailing company reported fourth-quarter revenue of $1.6 billion, falling short of the $1.76 billion analysts expected. The company attributed the miss to $168 million in charges from legal, tax, and regulatory settlements, which would have pushed revenue to $1.8 billion without those items.

Despite the top-line miss, Lyft posted a massive $2.8 billion profit, driven by a one-time benefit from releasing a valuation allowance. On an operating basis, adjusted EBITDA grew 37% year-over-year to $154.1 million, with margins improving to 3.0% from 2.6% last year. For the full year, Lyft delivered $18.5 billion in gross bookings, up 15%, and revenue of $6.3 billion, up 9%.

The company announced a new $1 billion share repurchase program following its inaugural buyback in 2025. Lyft guided for Q1 2026 gross bookings of $4.86 billion to $5 billion, implying 17% to 20% growth, and adjusted EBITDA of $120 million to $140 million with margins expected to remain flat year-over-year.