UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-38846

Lyft, Inc.

(Exact name of registrant as specified in its charter)


Delaware			20-8809830
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


185 Berry Street, Suite 400 San Francisco, California			94107
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (844) 250-2773

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Class A common stock, par value of $0.00001 per share

LYFT

Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant on June 2830, ~~2024~~2025, the last business day of its most recently completed second fiscal quarter, was $5.6.3 billion based on the closing sales price of the registrant’s Class A common stock on that date.

On February 105, ~~2025~~2026, the registrant had ~~409~~398,~~477~~107,~~927~~601 shares of Class A common stock ~~and 8,530,629 shares of Class B common stock~~ outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement for the 2026 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2025.

Lyft, Inc.

Table of Contents

		Page
PART I
Item 1.	Business	5
Item 1A.	Risk Factors	1211
Item 1B.	Unresolved Staff Comments	5047
Item 1C.	Cybersecurity	5047
Item 2.	Properties	5148
Item 3.	Legal Proceedings	5148
Item 4.	Mine Safety Disclosures	5148
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	5249
Item 6.	[Reserved]	5350
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5451
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	6964
Item 8.	Financial Statements and Supplementary Data	7065
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	~~119~~114
Item 9A.	Controls and Procedures	~~119~~114
Item 9B.	Other Information	~~119~~114
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	~~120~~115
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	~~121~~116
Item 11.	Executive Compensation	~~121~~116
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~121~~116
Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~121~~116
Item 14.	Principal Accounting Fees and Services	~~121~~116
PART IV
Item 15.	Exhibits, Financial Statement Schedules	~~122~~117
Item 16.	Form 10-K Summary	~~125~~120
	Signatures	~~126~~121

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include statements about:

•our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, capital expenditures, our ability to determine insurance, legal and other reserves and our ability to achieve and maintain profitability and positive free cash flows;

•our restructuring actions, including the costs of such actions and the impact of such actions on our business and financial performance;

•the sufficiency of our cash, cash equivalents and short-term investments to meet our liquidity needs;

•the demand for our platform or for Transportation-as-a-Service networks in general;

•our ability to attract and retain drivers and riders;

•our ability to develop new offerings and bring them to market in a timely manner and make enhancements to our platform;

•our ability to successfully acquire and integrate companies and assets, as well as our expectations regarding the anticipated benefits of such transactions over time;

•our ability to compete with existing and new competitors in existing and new markets and offerings;

•our prices and pricing methodologies and our expectations for the impact of pricing on our competitive position and our financial results;

•our expectations regarding outstanding and potential litigation, including with respect to the classification of drivers on our platform;

•our expectations regarding the effects of existing and developing laws and regulations, including with respect to the classification of drivers on our platform, taxation, privacy and data protection;

•our ability to manage and insure risks associated with our Transportation-as-a-Service network, including auto-related and operations -related risks, and our expectations regarding insurance costs and estimated insurance reserves;

•our expectations regarding new and evolving markets and our efforts to address these markets~~, including expectations regarding autonomous vehicles (“AV”) and our AV partnerships~~;

•our ability to develop and protect our brand;

•our ability to maintain the security and availability of our platform;

•our expectations and management of future growth and business operations;

•our expectations concerning relationships with third -parties;

•our ability to maintain, protect and enhance our intellectual property;

•our expectations concerning macroeconomic conditions, including the impact of inflation, uncertainty in the global banking and financial services markets and public health crises;

•our ~~ability~~expectations toregarding ~~service~~ our ~~existing~~share ~~debt~~repurchase program, including the timing of repurchases thereunder; and

•our ability to ~~successfully~~service ~~acquire~~our ~~and~~existing ~~integrate companies and assets~~debt.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Annual Report on Form 10-K.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Annual Report on Form 10-K primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in the section titled “Risk Factors” and elsewhere in this Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Annual Report on Form 10-K. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Annual Report on Form 10-K relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect events or circumstances after the date of this Annual Report on Form 10-K or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Annual Report on Form 10-K, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

PART I

Item 1. Business.

Overview

Lyft, Inc. (the “Company” or “Lyft”) ~~started~~operates as a ~~movement~~global tomobility ~~revolutionize~~platform ~~transportation.~~offering Ina ~~2012,~~mix weof ~~launched~~rideshare, ~~our~~taxis, ~~peer-to-peer~~private ~~marketplace~~hire ~~for~~vehicles, ~~on-demand~~executive ~~ridesharing~~chauffeur ~~and~~services, ~~have~~car ~~continued~~sharing, tobikes ~~pioneer~~and ~~innovations~~scooters. ~~Today~~Our established, ~~Lyft~~scaled isnetwork ~~one~~ of ~~the~~users ~~largest~~is ~~multimodal~~brought ~~transportation~~together ~~networks~~by inour ~~the~~robust ~~United~~technology ~~States~~platform ~~and~~(the ~~Canada.~~“Lyft WePlatform”) ~~have~~that anpowers ~~important~~rides ~~purpose,~~and ~~which~~connections isevery today. ~~serve~~Our ~~and~~Lyft ~~connect.~~mobile Weapplication ~~strive~~(“Lyft toApp”) ~~get~~connect riders ~~out~~with ~~into~~drivers ~~the~~for ~~world~~on-demand soride ~~they~~services ~~can live their lives together,~~ and tosupports ~~provide drivers~~ a ~~way~~variety toof ~~work~~other ~~that~~multimodal ~~gives them control over their time and money~~solutions.

~~Our~~Substantially ~~ridesharing~~all ~~marketplace~~of ~~connects~~our ~~drivers~~revenue ~~with~~is ~~riders~~generated ~~via~~from ~~the~~our ~~Lyft~~ridesharing ~~mobile~~marketplace ~~application~~that ~~(the~~connects ~~“Lyft~~drivers ~~App”) in cities across the United States~~ and ~~in certain cities in Canada~~riders. We ~~have~~collect ~~established~~service afees ~~scaled~~and ~~network~~commissions offrom ~~users~~drivers ~~brought~~for ~~together~~their byuse of our ~~robust~~ridesharing ~~technology~~marketplace. ~~platform~~We ~~(the~~also ~~“Lyft~~generate ~~Platform”)~~revenue ~~that~~from ~~powers~~licensing ~~rides~~ and ~~connections~~data ~~every~~access ~~day. We leverage our technology platform~~agreements, the ~~scale~~sale ~~and density~~ of ~~our~~bikes ~~user network~~ and ~~insights~~bike ~~from~~station asoftware ~~significant~~and ~~number~~hardware, ofadvertising ~~rides~~services, toriders ~~improve~~renting through our ~~ridesharing~~network ~~marketplace~~of ~~efficiency~~shared bikes and ~~develop~~scooters, ~~new~~drivers ~~offerings.~~renting ~~We’ve~~vehicles ~~also~~through ~~taken~~Express ~~steps~~Drive toand ~~ensure~~by making our ~~network~~ridesharing ismarketplace ~~well~~available ~~positioned~~ to ~~benefit~~organizations ~~from~~through ~~technological~~our ~~innovation~~Lyft inBusiness ~~mobility~~offerings.

~~Our~~In ~~offerings~~2025, onwe ~~the~~expanded ~~Lyft~~our ~~App~~operations ~~include~~beyond anNorth ~~expanded~~America ~~set~~and strengthened our global footprint. We entered nine new countries and more than 180 cities through our acquisition of ~~transportation~~Intelligent ~~modes~~Apps GmbH (d/b/a Freenow) in ~~select~~July 2025, a leading European multimodal app with taxi offering at its core. In October 2025, we acquired TheBookingRoomGroup Limited (d/b/a TBR Global Chauffeuring, or “TBR”), a global luxury chauffeuring company that operates in thousands of cities worldwide. As a result of these acquisitions, ~~such~~as well as ~~access~~additional toexpansion aof ~~network~~our business, we now operate in thousands of ~~shared~~cities ~~bikes~~across ~~and~~six ~~scooters~~continents. ~~(“Light~~For ~~Vehicles~~additional information, see Note 4 “Acquisitions”) ~~for~~included ~~shorter~~in ~~rides~~Part ~~and~~II, ~~first-mile~~Item 8, “Financial Statements and ~~last-mile~~Supplementary ~~legs~~Data,” of ~~multimodal~~this ~~trips~~Annual Report on Form 10-K.

Substantially all of our revenue is generated from our ridesharing marketplace that connects drivers and riders. We collect service fees and commissions from drivers for their use of our ridesharing marketplace. As drivers accept more rider leads, Gross Bookings1 and Rides1 increase, driving more revenue. We also generate revenue from licensing and data access agreements, the sale of bikes and bike station software and hardware, advertising services, riders renting Light Vehicles, drivers renting vehicles through Express Drive and by making our ridesharing marketplace available to organizations through our Lyft Business offerings, such as our Concierge and Lyft Pass programs.

Riders and drivers want and value choice, and we believe there remains an opportunity for growth in our marketplace. In July 2024, we launched Price Lock, a new subscription offering that caps the price of a rider's regular and scheduled rides on a specified route during the rider's chosen pickup time. Additionally, in February 2024, we launched the driver earnings commitment in limited markets, where we ensure drivers will earn at least 70% of weekly passenger payments after external fees. We then expanded this earnings commitment to all markets in the United States in May 2024. In September 2023, we launched Women+ Connect, a new feature that currently offers women and nonbinary riders and drivers the option to turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders and drivers and in 2024, we extended Women+ Connect nationwide. In November 2024, we announced plans for multiple AV partnerships that will connect the Lyft community with AV rides in the Lyft app. We are focused on delivering a great rideshare experience and will continue to innovate for drivers and riders, creating an increasingly differentiated service over time.

In 2024, we achieved net income for the first time in our operating history and record cash flow generation. We are committed to building a durable, healthy and profitable business for riders, drivers and shareholders.

Additionally, we aim to advocate through our commitment to social and environmental responsibility. Through our Lyft Up initiatives, we’re working to make sure people have access to affordable, reliable transportation to get where they need to go - no matter their income or zip code. We can’t talk about work that serves customer needs and social goals without mentioning our responsibility to our shared environment - the air we breathe and the resilience of communities we serve. We’re working to make the Lyft Platform more sustainable by helping drivers transition to electric vehicles (“EVs”), riders take more sustainable transportation modes, and businesses reduce their carbon footprint. Over the last two years, we’ve achieved significant growth in EV rides on our platform by investing in EV driver incentives, expanding the Express Drive EV rental program, helping drivers access discounted fast charging, expanding Green and advocating for smart EV policy.

We believe many users are loyal to Lyft because of our values, brand and commitment to social and environmental responsibility. Our values, brand and focus on customer experience are key differentiators for our business. We continue to believe that users are increasingly choosing services, including a transportation network, based on brand affinity and value alignment and we aim to make it easy for both drivers and riders to choose Lyft every time.

1 For the definition of Gross Bookings and Rides, refer to the “Definitions of Key Metrics” section within Item 7 of Part II of this Annual Report on Form 10-K.

Our Transportation Network

Our transportation network is primarily comprised of:

•Ridesharing Marketplace. Our core offering connects drivers with riders. The scale of our network enables us to predict demand and proactively incentivize drivers to be available for rides in the right place at the right time. This allows us to optimize earning opportunities for drivers and offer convenient rides for riders, creating sustainable value to both sides of our marketplace. Our ridesharing marketplace, inclusive of taxis, private hire vehicles, executive chauffeur services and car sharing, connects drivers with riders in cities across ~~the~~six ~~United~~continents ~~States and~~ in ~~certain~~select cities ~~in Canada~~. In addition to our standard rideshare offering, riders can select a variety of other ~~rideshare~~ offerings which include, but are not limited to, Wait & Save, Priority Pickup, XL, Extra Comfort, Black, Black SUV, and Green.

•Express Drive. Our car rental program for drivers, including those who want to drive using our platform but do not have access to a vehicle that meets our requirements. Through our Express Drive program, drivers can enter into rental agreements with our independently managed subsidiary, Flexdrive Services, LLC (“Flexdrive”), and our rental car partners for vehicles that may be used to provide ridesharing services on the Lyft Platform.

•~~Light~~Bikes ~~Vehicles~~and Scooters. We have a network of shared bikes and scooters in a number of cities to address the needs of users who are looking for options that are more active and often more cost-effective and efficient for shorter trips. These transportation modes can also help supplement the first-mile and last-mile of a multimodal trip with public transit.

Drivers

The drivers on our platform are active members of their communities. They are parents, students, business owners, retirees and everything in between. We work hard to serve the community of drivers on our platform, empowering them to drive on their own flexible terms while providing them the opportunity to focus their time on what matters most. Drivers on our platform also generally have key benefits, which include:

•Flexibility. We offer drivers the flexibility to generate income on their own schedule, so they can best prioritize what is important in their lives.

•Technology. Our predictive technology around ride volume and demand enables us to share key information with drivers about when and where to drive to maximize their earnings on a real-time basis.

•Transparent and Consistent Pay. We'’ve released multiple products over the years such as upfront pay where drivers can see ride information and what they’ll earn before accepting a ride. We also ~~launched~~remain ~~the~~committed ~~Weekly~~to ~~Pay Statement for~~ a ~~clearer~~differentiated, ~~more~~fair ~~comprehensive view of driver's pay details,~~ and ~~made~~transparent aapproach ~~commitment~~to ~~that~~driver ~~drivers will earn 70% or more of rider payment each week, after external fees~~earnings.

•Insurance. We procure insurance ~~that~~as ~~helps~~required ~~protect~~by transportation network company (“TNC”) regulations to protect drivers against financial losses related to automobile accidents while on the platform.

~~•Community Standards. To help us uphold high community standards, we give both drivers and riders the opportunity to rate each other after a ride booked through the Lyft App.~~ 5

•Community Standards. To help us uphold high community standards, we give both drivers and riders the opportunity to rate each other after a ride booked through the Lyft apps.

•Support. We offer drivers access to 24/7 support and earnings tools as well as education resources and other support to meet their personal goals.

Riders

Riders are as diverse and dynamic as the communities we serve. They represent all adult age groups and backgrounds and use Lyft to commute to and from work, explore their cities, spend more time at local businesses and stay out longer knowing they can get a reliable ride home. Unless otherwise stated, riders are passengers who request rides from drivers in our ridesharing marketplace, or renters of a shared bike, ~~scooter~~ or ~~automobile~~scooter available on the Lyft ~~App~~apps. We work hard to provide riders with a quality experience every time they open the Lyft ~~App~~apps, so riders will continue to select Lyft as their transportation network of choice. Riders on our platform also have key benefits, which include:

•Selection and Convenience. We designed the Lyft App with a focus on simplicity, efficiency and convenience. Our proprietary technology efficiently matches riders with drivers through advanced dispatching algorithms providing faster arrival times, localized pricing and maximum availability. Additional transportation modes, such as ~~Light~~our ~~Vehicles~~network of shared bikes and scooters, offer more options for shorter trips. We also continue to launch new features, such as ~~Women+~~Lyft ~~Connect~~Silver and ~~Price~~the ~~Lock~~ability to “favorite” a driver. The more rides that are taken on our platform, the better we are able to offer riders personalized experiences most suitable to their trip.

•Availability and Reliability. We strive to ensure that riders can get a ride when they want one. We leverage our proprietary dispatch platform and data to help drivers and riders connect efficiently and reduce wait times. Scheduled rides to the airport are backed by our on-time pickup promise in many major markets. If a ride is more than ten minutes late for a scheduled pick-up to the airport, we will offer up to $100 in Lyft credits to make up for it.

6•Affordability. Our platform empowers riders to choose from a broad set of transportation options to easily optimize for cost, comfort and time. Wait & Save, a substantial portion of rides on our platform, offers riders a way to save money when they aren’t in a hurry. In 2024, we launched Price Lock, a new subscription offering that caps the price of a rider’s regular and scheduled rides on a specified route during the rider’s chosen pickup time.

•~~Affordability~~Safety. ~~Our~~Since ~~platform~~day ~~empowers~~one, ~~riders~~we tohave ~~choose~~worked ~~from~~continuously ato ~~broad~~enhance ~~set~~the safety of ~~transportation~~our ~~options~~platform toand ~~easily~~the ~~optimize~~ridesharing ~~for~~industry ~~cost~~by developing products, ~~comfort~~policies and ~~time~~processes. ~~Wait~~In &the ~~Save,~~United ~~a substantial portion of rides on our platform~~States, ~~offers~~we ~~riders~~have a ~~way~~dedicated tosafety ~~save~~response ~~money~~team ~~when~~for ~~they~~live ~~aren’t~~support inavailable avia ~~hurry.~~phone Inor ~~2024~~chat 24/7, weEmergency ~~launched~~Help ~~Price~~with ~~Lock~~ADT, aInc. ~~new~~(“ADT”), ~~subscription offering that caps the price of a rider's regular~~ and ~~scheduled~~partnerships ~~rides~~with onleading anational ~~specified~~organizations ~~route~~to ~~during~~inform ~~the~~our ~~rider's~~safety ~~chosen pickup time~~policies.

•Safety. Since day one, we have worked continuously to enhance the safety of our platform and the ridesharing industry by developing innovative products, policies and processes. We have a dedicated safety response team, Emergency Help with ADT, Inc. (“ADT”), and partnerships with leading national organizations to inform our safety policies.

Business

We work with organizations across a wide range of industries to deliver transportation solutions. Our comprehensive set of solutions allows clients to design, manage, and pay for ground transportation programs that contribute to productivity and satisfaction while reducing cost and streamlining operations.

Our Technology Infrastructure and Operations

We organize our product teams with a full-stack development model, integrating product management, engineering, analytics, data science and design. We focus on affordability, reliability, efficiency, optimization and cohesion when developing our software. Our offerings are mobile-first and platform agnostic. We seek to continuously improve the Lyft Platform and the Lyft ~~App~~apps. Our offerings are built on a scalable technology platform that enables us to manage peaks in demand.

We have a commercial agreement with Amazon Web Services (“AWS”) for cloud services to help deliver and host our platform. As a result of our partnership, we believe we are more resilient to surges in demand on our platform or product changes we may introduce. Refer to Note 10 “Commitments and Contingencies” to the consolidated financial statements for information regarding this agreement.

We designed our platform with multiple layers of redundancy to guard against data loss and deliver high availability. Both incremental and full backups are performed and redundant copies of content are stored independently in separate geographic regions. We are also investing in iterating and continuously improving our data privacy and security foundation, and continually review and implement the most relevant policies.

Our Proprietary Data-Driven Technology Platform

Our robust technology platform powers the millions of rides and connections that we facilitate every day and provides insights that drive our platform in real-time. We leverage historical data to continuously improve experiences for drivers and riders ~~on our platform~~. Our platform analyzes large datasets covering the ride lifecycle, from when drivers go online and riders request rides, to when they match, which route to take and any feedback given after the rides. Utilizing machine learning capabilities to predict future behavior based on many years of historical data and use cases, we employ various levers to balance supply and demand in the marketplace, ~~creating increased driver earnings while maintaining strong service levels for riders. We also leverage our data science and algorithms to inform our product development.~~

creating increased driver earnings while maintaining strong service levels for riders. We also leverage our data science and algorithms to inform our product development.

Our Intellectual Property

We believe that our intellectual property rights are valuable and important to our business. We rely on trademarks, patents, copyrights, trade secrets, license agreements, intellectual property assignment agreements, confidentiality procedures, non-disclosure agreements and employee non-disclosure and invention assignment agreements to establish and protect our proprietary rights. Though we rely in part upon these legal and contractual protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements to our solutions and offerings are larger contributors to our success in the marketplace.

We have invested in a patent program to identify and protect a substantial portion of our strategic intellectual property in ridesharing, autonomous vehicle (“AV”) and AV-related technology, micro-mobility, telecommunications, networking and other technologies relevant to our business. We hold numerous issued and pending patents in the U.S. and foreign jurisdictions and continually review our development efforts to assess the existence and patentability of new intellectual property.

We have an ongoing trademark and service mark registration program pursuant to which we seek to register our brand names and product names, taglines and logos in the United States and other countries to the extent we determine appropriate and cost-effective. We also have common law rights in some trademarks. In addition, we have registered domain names for websites that we use in our business, such as www.lyft.com and other variations.

We intend to pursue additional intellectual property protection to the extent we believe it would be beneficial and cost-effective. Despite our efforts to protect our intellectual property rights, they may not be respected in the future or may be invalidated, circumvented or challenged. For additional information, see the sections titled “Risk Factors—Risks Related to Regulatory and Legal Factors—Claims by others that we infringed their proprietary technology or other intellectual property rights could harm our business” and “Risk Factors—Risks Related to Regulatory and Legal Factors—Failure to protect or enforce our intellectual property rights could harm our business, financial condition and results of operations.”

and “Risk Factors—Risks Related to Regulatory and Legal Factors—Failure to protect or enforce our intellectual property rights could harm our business, financial condition and results of operations.”

Competition

The market for Transportation-as-a-Service (“TaaS”) networks is intensely competitive and characterized by rapid changes in technology, shifting levels of demand and frequent introductions of new services and offerings. We expect competition to continue, both from current competitors and new entrants in the market that may be well-established and enjoy greater resources or other strategic advantages. If we are unable to anticipate or successfully react to these competitive challenges in a timely manner, our competitive position could weaken, or fail to improve, and we could experience a decline in revenue or growth stagnation that could adversely affect our business, financial condition and results of operations.

Our main ridesharing competitor inis ~~the~~Uber ~~United~~and ~~States~~our main competitors for app-based intermediation services for taxi and ~~Canada~~private ishire vehicles are Uber and Bolt, though we also compete with other ~~ridesharing transportation network companies~~TNCs, ~~and~~ taxi cab and livery companies as well as traditional automotive manufacturers and technology companies. Our main competitors in the bike and scooter sharing market include Lime, Bird, Fifteen, nextbike and Dott. We also compete with other manufacturers of bike and scooter sharing equipment for sales of such equipment, particularly in markets outside of the United States.

Additionally, there are other non-U.S.-based TaaS network companies, ~~non-ridesharing~~bike ~~transportation~~and ~~network~~scooter sharing companies, consumer vehicle rental companies, non-ridesharing TNCs and traditional automotive manufacturers that may expand into ~~the~~North ~~United~~America ~~States~~ and ~~Canada~~Europe. There are also a number of companies developing ~~autonomous~~and ~~vehicle~~introducing AV technology and TaaS offerings that either are competing with us or may compete with us in the future, including Alphabet (Waymo), Amazon (Zoox), Baidu, ~~Motional~~Bolt, and Tesla as well as many other technology companies and automobile manufacturers and suppliers. We have entered into strategic collaborations and partnerships with certain of the aforementioned competitors, including with respect to AVs, and these partnerships may lead to actual or perceived conflicts of interest or misalignment of strategic objectives. We anticipate continued challenges from current competitors as well as from new entrants into the TaaS market.

We believe we can compete favorably. However, many of our competitors and potential competitors are larger and have greater brand name recognition, longer operating histories, larger marketing budgets and established marketing relationships, access to larger customer bases and significantly greater resources for the development of their offerings. For additional information about the risks to our business related to competition, see the section titled “Risk Factors—Risks Related to Operational Factors—We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition and results of operations.”

Seasonality

The revenue we generate from our business may fluctuate from quarter to quarter due to seasonal factors including the weather and certain holidays. Demand for our transportation network has historically declined over the winter season and ~~demand for~~ our network of ~~Light~~shared ~~Vehicles~~bikes and scooters has historically ~~increased~~had stronger demand during more temperate and dry seasons.

Our Brand and Marketing

Our purpose is to serve and connect. The Lyft brand is rooted in expecting more from every journey. Our marketing efforts bring our brand to life across a variety of communication channels ranging from national ~~broadcast~~advertising campaigns to more direct communications like email and social media engagement. We also benefit from positive word of mouth in the existing Lyft rider and driver communities.

Our marketing efforts educate people about Lyft products in creative and memorable ways and generate greater brand awareness among potential drivers and riders. Our brand marketing includes but is not limited to Lyft-produced content, culture and entertainment partnerships, marketing partnerships, and outdoor advertisements. We use specific channels and initiatives so we can measure the impact of our marketing spend. We attract new drivers and riders through referrals, partnerships, display advertising, radio, video, social media, email, search engine optimization, keyword search campaigns, and more. We continue to engage with current riders through a variety of initiatives, including emails, in-app notifications, social media content, promotions, and more.

Our Commitment to Safety

AEveryone ~~strong~~deserves ~~guiding~~to ~~principle~~feel ~~since~~safe ~~day~~and ~~one~~respected ~~has~~on ~~been~~the Lyft Platform. We owe it to ~~build~~every arider ~~community~~and ~~that~~driver ~~drivers~~to continuously ensure our platform has appropriate safety measures, and ~~riders~~are ~~trust.~~continually ~~Trust~~investing in tools and policies to help ensure safety is ~~the~~embedded ~~foundation~~into ofevery ~~our~~experience. ~~relationship~~We ~~with~~publish ~~drivers~~regular ~~and~~Community ~~riders~~Safety onReports detailing safety incidents, our ~~platform~~response, and wecontinuous ~~take~~improvements ~~significant~~to ~~measures~~our ~~every~~platform. ~~day~~This ~~that~~commitment ~~are~~to ~~focused~~transparency onholds ~~improving~~us ~~their~~accountable to the communities we serve and drives continuous improvement in our safety. practices.

To ensure we are delivering exceptional service levels and upholding high quality standards, we have an established ~~our~~ Safety and Customer Care, or (“SCC,”) team as a key part of our organization. SCC ~~is in charge of fielding safety and customer support inquiries and is available through multiple channels, including via self-service and assisted support directly within our apps. SCC~~ aims to listen to customers, quickly resolve problems when they occur, learn from problems that arise and maintain trust with drivers and riders. ~~Some~~Our ~~examples~~safety ofstrategy ~~measures~~integrates wemultiple ~~take~~protection tolayers ~~promote~~across the ~~safety~~entire oflifecycle, ~~riders~~combining ~~and~~technology, ~~drivers~~policy onand ~~the~~human ~~platform include~~expertise:

•Annual background checks and ongoing criminal monitoring for drivers. Every driver is required to pass a professionally administered criminal background check before they drive and each year after that. In the United States, continuous criminal monitoring allows us to quickly deactivate drivers with disqualifying criminal convictions. Similarly, in the United States, we also continuously check driving records so that we can promptly identify and remove drivers from the platform upon detection of a disqualifying violation.

8•Safety education. Every driver completes mandatory safety education before driving with Lyft, with opportunities for continued safety education once they are Lyft drivers.

~~continuously~~•Rider ~~check~~verification. ~~driving~~We ~~records~~work to verify rider profiles so ~~that~~drivers weknow who they’re sharing the ride with. Drivers can ~~promptly~~see ~~identify~~a ~~and~~rider’s ~~remove~~verification ~~drivers~~status ~~from~~before ~~the~~they ~~platform~~accept ~~upon~~a ~~detection~~ride. ofOur process includes cross-checking a ~~disqualifying~~rider’s ~~violation~~personal information using trusted, third-party databases. Any information provided is protected in accordance with our privacy policy.

•~~Share~~Location ~~location~~sharing. The Lyft App provides real-time ride tracking, so riders can share their exact location and route with family and friends. Once a user enables this feature, a user’s trusted contacts (who they shared their location with) can see trip status and where they are on the map.

•Emergency help. Lyft offers in-app emergency tools like direct 911 calling, ~~supported~~live bysafety ~~ADT~~agent support and real-time location sharing with 911, to help riders and drivers get assistance quickly when they need it. IfAdditionally, if a rider or driver ~~feels uncomfortable or~~ needs emergency assistance at any point, ~~they~~Lyft ~~are~~offers ~~able~~tools to ~~quickly~~help ~~connect~~beyond ~~with~~911 anin-app ~~ADT~~integration ~~security~~with ~~professional~~partners ~~through~~like ~~the~~ADT ~~Lyft~~and ~~App, silently or by voice~~RapidSOS. IfSubject ~~someone~~to ~~signals~~geographic ~~they~~availability, ~~need~~Lyft ~~help~~offers ~~and~~customers ~~subsequently~~tools ~~does~~– ~~not~~like ~~respond~~opportunities to aconnect ~~call~~with orlive ~~text~~agents ~~from~~during ~~ADT~~a ride, ~~ADT~~and ~~will~~silent ~~contact~~location sharing with 911 ~~and~~agents ~~share~~to ~~the~~ensure ~~user’s~~customers ~~location~~can ~~and~~receive ~~other~~emergency ~~relevant~~help ~~information~~faster.

•Live safety support and specialized support and advocacy. Our ~~Safety~~SCC team is standing by, ready to help via phone or chat 24/7, and every member of the ~~Safety~~SCC team is a credentialed victim advocate. Each member has training in trauma-informed care.

•Smart trip check-in. WeOur platform employs machine learning to monitor rides ~~for~~in ~~certain~~real-time, ~~unusual~~analyzing ~~activity~~GPS trajectory, ~~like~~speed, ~~long~~ stops, orand ~~route~~historical ~~deviations,~~patterns. ~~and~~When insystems ~~some~~detect ~~instances,~~unusual ifactivity—such weas ~~notice~~route adeviations ~~ride~~or ~~irregularity,~~prolonged stops—we proactively reach out to riders and drivers ~~directly.~~through Wenotifications, ~~will~~texts, ~~ask the rider~~ or ~~driver~~calls. ifIf ~~they~~assistance ~~need~~is ~~help~~needed, ~~and,~~we ~~if appropriate,~~ connect them to emergency ~~assistance~~services or our ~~own~~SCC ~~Safety~~ team.

•Hidden contact information and ride history. The Lyft App hides contact information for both the rider and driver before, during and after the ride. While riders and drivers are able to call or text one another through the app, personal information, including real user phone numbers, are not revealed. Drivers are also not able to see a rider’s specific drop-off location, whether it’s a specific address or a cross-street, after the ride is complete.

•Two-way ratings and feedback. At the end of each trip, drivers and riders are prompted to rate their ride on the scale of one to five stars. Any rider or driver who submits a rating of four stars or fewer is prompted to provide more details. Anyone who rates a rider or driver three stars or fewer will never be matched with that individual again through the app. 8

•Two-way ratings and feedback. At the end of each trip, drivers and riders are prompted to rate their ride. Low ratings and negative feedback trigger automated safety reviews. Users with consistently low ratings or concerning patterns may face warnings, suspensions, or permanent deactivation.

•Industry Sharing Safety Program. Lyft partners with certain companies to share information about the drivers who are deactivated from certain rideshare and delivery platforms for specific select reasons. The program enables the sharing of information to equip participating companies with the information needed to take action on their own platform.

Government Regulation

We are subject to a wide variety of laws and regulations in the United States and other jurisdictions. Laws, regulations and standards governing issues such as TNCs, ~~public companies,~~ ridesharing, worker classification, labor and employment, ~~anti-discrimination,~~ payments, ~~gift cards, whistleblowing and worker confidentiality obligations, product liability, defects, recalls, auto maintenance and repairs, personal injury,~~ advertising, text messaging, ~~subscription services,~~ intellectual property, ~~securities, consumer protection,~~ taxation, privacy, data security, competition, unionizing and collective action, antitrust, ~~arbitration agreements and class action waiver provisions, terms of service,~~ mobile application accessibility, ~~autonomous vehicles~~AVs, bike and scooter sharing, ~~insurance, vehicle rentals, money transmittal, non-emergency medical transportation, healthcare fraud, waste,~~ and ~~abuse,~~insurance environmental health and safety, greenhouse gas emissions, background checks, public health, anti-corruption, anti-bribery, political contributions, lobbying, import and export restrictions, trade and economic sanctions, foreign ownership and investment, foreign exchange controls and delivery of goods including (but not limited to) medical supplies, perishable foods and prescription drugs are often complex and are subject to varying interpretations, in many cases due to their lack of specificity. As a result, their application in practice may change or develop over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing bodies, such as federal, state and local administrative agencies.

~~The~~See ~~TNC~~the ~~industry~~section ~~has~~titled ~~also~~“Risk ~~come~~Factors” ~~under~~including ~~increasing~~the ~~scrutiny~~subsection ~~from~~titled ~~non-profit~~“Risk ~~organizations,~~Factors—Risks ~~regulators,~~Related ~~and~~to ~~legislators~~Regulatory ~~for~~and ~~its~~Legal ~~environmental~~Factors” ~~impact,~~included ~~specifically~~in ~~relating~~Part ~~to greenhouse gas (GHG) emissions. In 2018~~1, ~~California~~Item ~~passed~~1A ~~first-of-its-kind~~and ~~legislation~~Note ~~(the~~10 “~~California~~Commitments ~~Clean~~and ~~Miles Standard~~Contingencies”) to ~~mandate~~our ~~that~~consolidated ~~TNCs~~financial ~~increase~~statements ~~the~~included ~~percentage~~in ofPart ~~zero-emission vehicles on their platforms~~II, ~~with~~Item ~~additional targets intended to reduce GHG emissions from TNC platforms. Massachusetts~~8, ~~New~~“Financial ~~York~~Statements ~~City~~ and ~~Toronto~~Supplementary ~~are~~Data,” ~~developing or have developed and implemented rules to address the environmental impact~~ of ~~rideshare,~~this ~~and~~Annual ~~other~~Report ~~jurisdictions~~on ~~are~~Form ~~likely~~10-K tofor ~~consider~~additional ~~similar rules and regulations in the future~~information.

See the sections titled “Business” and “Risk Factors” including the subsections titled “Business – Environmental, Social and Corporate Governance - Environmental” and “Risk Factors—Risks Related to Regulatory and Legal Factors” for additional information about the laws and regulations we are subject to and the risks to our business associated with such laws and regulations.

Human Capital

~~Our employees are our human capital and, together with our technology stack, they are our greatest strength and most valuable resource.~~ As of December 31, ~~2024~~2025, we had 23,~~934~~913 full-time employees ~~and~~worldwide. weNone ~~maintain~~of ~~additional~~our ~~offices~~employees in ~~multiple~~the ~~locations~~United inStates ~~the~~are ~~U.S.~~represented ~~and~~by ~~internationally~~a inlabor ~~Toronto,~~union ~~Canada,~~or ~~Montreal,~~covered ~~Canada,~~by ~~Mexico~~a ~~City,~~collective ~~Mexico,~~bargaining ~~Kyiv,~~agreement. ~~Ukraine,~~In ~~Berlin,~~certain ~~Germany~~foreign ~~and Munich~~countries, ~~Germany.~~some ~~None~~ of our employees are represented by atrade ~~labor~~unions ~~union~~ or ~~covered~~work ~~by a collective bargaining agreement~~councils. We have not experienced any work stoppages and we consider our relations with our employees to be positive. We also engage contractors, consultants, and vendors to support our operations.

Our success depends on our ability to attract, develop, and retain highly skilled employees across engineering, operations, product, and other critical functions. Our human capital strategy is developed and managed under the leadership of our Chief People Officer, who reports through our Chief Legal and Business Officer to our Chief Executive Officer, and is overseen by our board of directors.

Attracting and Retaining Talent

We are committed to providing competitive compensation and benefits that reward performance and support our employees’ professional growth and well-being.

•Competitive Compensation. Our compensation philosophy is designed to be market-competitive and to incentivize high performance. We provide employees with compensation packages that may include base salary, restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), and performance-based cash incentives. To ensure our compensation remains competitive and fair, we regularly review our practices against external market data and make adjustments as needed to attract and retain top talent in a highly competitive labor market, particularly for highly skilled software engineers, product managers, and other technical professionals who are in high demand.

•Comprehensive Benefits and Support. We take a holistic approach to supporting employee well-being. We provide eligible employees and their eligible dependents with comprehensive health and wellness benefits, including medical, dental, and vision coverage, mental health resources, and wellness programs. Additionally, we offer retirement savings programs, paid time off, parental leave, and other benefits designed to support our employees and their families.

Employee Development and Engagement

We believe that investing in our employees’ career development and maintaining high levels of engagement are essential to building and sustaining a high-performing workforce and a values-driven culture.

•Professional Growth and Development. We are committed to helping our employees achieve their career goals through learning and development opportunities. We provide access to training programs, skill-building resources, mentorship, coaching and leadership development initiatives designed to help employees grow in their current roles and prepare for future opportunities. We also support internal mobility, encouraging employees to explore different roles and teams within Lyft to broaden their experience and advance their careers.

•Employee Engagement and Feedback. We measure employee engagement through two surveys a year and other feedback mechanisms to understand our employees’ needs, concerns, and ideas for improvement. We use this feedback to inform decisions about our workplace policies, programs, and culture. Our leadership teams review engagement data and work to address areas of opportunity while building on our strengths. We believe that listening to our employees and acting on their feedback helps us create a work environment where people can perform at their best.

We•Performance ~~believe that achieving more diversity in workforce representation is an important priority~~Management. We ~~are~~maintain a ~~company~~performance ~~with~~management aprocess ~~diverse~~designed ~~customer~~to ~~base,~~provide ~~and the more our~~ employees ~~reflect~~with ~~that~~clear ~~diversity~~expectations, ~~the~~regular ~~better we can serve our customers~~feedback, ~~ultimately~~and ~~making~~opportunities ~~our~~for ~~business~~recognition ~~stronger. As of December 31, 2024, our global employee base was 58% male~~ and ~~42% female, and women represented 43% of our leadership overall~~advancement. ~~The~~Our ~~ethnicity~~managers ofare ~~our~~trained ~~U.S.~~and ~~employees~~equipped ~~was~~with ~~46%~~resources ~~White,~~to ~~32%~~conduct ~~Asian,~~fair ~~9% Hispanic or Latinx, 7% Black,~~ and 6%objective ~~two~~performance ~~or more races~~reviews, ~~American~~identify ~~Indian,~~high ~~Alaska Native~~performers, ~~Native Hawaiian or other Pacific Islander. Our employee gender~~ and ~~ethnicity~~support ~~information is based on self-identification, and~~ employees ~~who~~in ~~did~~reaching ~~not disclose~~ their ~~gender~~full ~~or ethnicity have been excluded from the applicable disclosure~~potential. As of December 31, 2024, employees who did not disclose gender represented approximately 3% of total employees, and employees who did not disclose ethnicity represented approximately 2% of total U.S. employees.

WeOur ~~strive~~employees' ~~to build a more representative workforce which requires an intentional and comprehensive effort to reach and recruit outstanding candidates~~talent, ~~develop talent internally~~dedication, and ~~open~~innovation ~~up opportunities for career growth. We~~ are ~~continuing~~critical to ~~focus~~achieving on scaling and sustaining diverse partnerships and early candidate pipeline development as we believe recruiting and hiring initiatives can yield short and long-term benefits to the organization. In 2024, we continued our ~~partnerships~~purpose and ~~outreach~~delivering ~~programs~~value ~~by directly sourcing candidates from organizations that aim~~ to ~~increase diversity in enterprise hiring pools, such as BreakLine, and DirectEmployers. We also maintained representation in~~ our ~~hiring pool through our sourcing tool~~riders, ~~hireEZ~~drivers, ~~and~~the ~~held~~communities ~~disability~~we ~~and~~serve ~~inclusion training for team members with the Inclusively~~ and ~~Disability:IN organizations~~shareholders.

Environmental, Social and Corporate Governance (“ESG”)

Environmental

We have a responsibility to our shared environment — the air we breathe and the resilience of communities we serve. Our environmental impact also gives drivers and riders another great reason to choose Lyft, and is an intrinsic part of how we think about our business goals. We are working to make the Lyft Platform more sustainable by helping drivers transition to EVs, riders take more sustainable modes of rideshare and other micromobility options, and businesses reduce their carbon footprint.

The rides that we facilitate on our platform make up a significant amount of Lyft’s carbon emissions. Transitioning these rides from gas-powered to electric vehicles is the one of the best ways we can contribute long-term toward a cleaner planet.

Over 13 million riders rode in an EV in 2024. Rides in electric vehicles generally get higher ratings and tips compared to rides in hybrids and gas cars. Over 23% of rides on the Lyft Platform were in a hybrid or an EV. In 2024, we expanded Green, where riders can select an EV or hybrid vehicle, to 40 airports and 22 cities in North America.

Because we stand at a pivotal moment in the fight against climate change, Lyft strives to grow EVs on the platform. In 2024, we announced a commitment to invest $80 million by the end of 2025 to support EV drivers and encourage gas powered drivers to make the switch. We are continuing to work toward our investment goal, and while our timeline may be extended to complete such investment, we expect that the investments we make will help us reach 100 million all-time EV rides on the platform by the end of 2025. Most of this investment will benefit drivers in states that are committed to electrifying, developing infrastructure, and growing EV adoption as quickly as possible.

We have enabled growth and adoption of bikeshare in 61 cities across 16 countries where we provide our hardware and software solutions. Working closely with our city and operating partners in the most complex urban environments, our team enabled 18 major bikeshare system expansions over the past year through both owned and operated systems and systems that utilize our hardware and software solutions, amounting to nearly 12,000 additional bikes, e-bikes, and e-scooters in cities like Chicago, Portland and New York City in the United States and cities abroad like Barcelona, Monaco, and more.

Social

Lyft’s purpose is to serve and connect. We strive to get people out into the world so they can live their lives together, and provide drivers a meaningful way to earn that gives them control over their time and money. We’re constantly thinking about the role we play in our customers’ lives.

For riders, social interaction improves physical and mental health. We’re making it easier to get out of the house, and the hundreds of millions of rides we facilitated in 2024 connected people with friends, family, and coworkers. Everyday encounters like these help people feel happier and more connected to their community.

For drivers, Lyft is part of the economic fabric of millions of lives. Drivers may be students putting themselves through college, parents looking for a way to earn while their kids are in school, or seniors interested in meeting new people. The flexibility to work on their own schedules is a core benefit of driving with Lyft, and millions of drivers use the platform to support their families or build toward their dreams. We keep working to understand who drivers are and how they use Lyft through our annual Economic Impact Report.

We want to improve the lives of everyone we interact with, but know that targeted programs can have an outsized impact. Through our Lyft Up initiative, we’re working to provide riders access to affordable, reliable transportation to get where they need to go — no matter their age, income, zip, or postal code. We provided access to millions of discounted or donated rideshare, bikeshare, and shared scooter rides to people in need. Some of our current Lyft Up programs assist the community by providing rides to and from

jobs, job interviews and trainings, the grocery store for those living in food-insecure areas, and by providing discounted bikeshare memberships and heavily discounted electric bikes to income eligible riders. In 2024, we also provided thousands of free rides on Election Day for riders to get to the polls to exercise their right to vote. Other Lyft Up programs provide donated ride credits to resettlement agencies and other community based organizations helping refugees access essential needs and services or relief rides in the aftermath of natural or manmade disasters.

Corporate Governance

Our board of directors regularly evaluates our environmental, social, and corporate governance policies to make sure they fit into our strategy of driving long-term stockholder value and align with our core values. More information about our directors, executive officers and corporate governance will be included in our definitive Proxy Statement for our 2025 Annual Meeting of Stockholders.

Corporate Information

We were incorporated in 2007 as Bounder Web, Inc., a Delaware corporation. In 2008, we changed our name to Zimride, Inc. We founded Lyft in 2012 and changed our name to Lyft, Inc. in 2013 when we sold the assets related to our Zimride operations.

Available Information

Our website is located at www.lyft.com, and our investor relations website is located at investor.lyft.com. Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on our investor relations website as soon as reasonably practicable after we file such material electronically with or furnish it to the Securities and Exchange Commission (the “SEC”). The SEC also maintains a website that contains our SEC filings at www.sec.gov.

We announce material information to the public about us, our products and services and other matters through a variety of means, including filings with the SEC, press releases, public conference calls, webcasts, the investor relations section of our website (investor.lyft.com), our X accounts (@lyft and @davidrisher), our Chief Executive Officer’s LinkedIn account (linkedin.com/in/jdavidrisher) and our blogs (including: lyft.com/blog, lyft.com/hub and eng.lyft.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD. The contents of our websites and corporate reports mentioned herein are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our websites or the contents of our websites are intended to be inactive textual references only.

1110

Item 1A. Risk Factors.

Investing in our Class A common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes, before making a decision to invest in our Class A common stock. Our business, financial condition, results of operations or prospects could also be harmed by risks and uncertainties not currently known to us or that we currently do not believe are material. If any of the risks actually occur, our business, financial condition, results of operations and prospects could be adversely affected. In that event, the market price of our Class A common stock could decline, and you could lose part or all of your investment. For the purposes of this “Item 1A. Risk Factors” section, riders are passengers who request rides from drivers inon our ~~ridesharing~~platform ~~marketplace,~~and or renters of a shared bike, ~~scooter~~ or ~~automobile available on the Lyft app~~scooter.

Risk Factor Summary

Our business operations are subject to numerous risks, factors and uncertainties, including those outside of our control, that could cause our actual results to be harmed, including risks regarding the following:

Operational Factors

•uncertainty regarding the growth of ridesharing and other markets and the unpredictability of our ~~limited~~results ~~operating~~of ~~history~~operations;

•our financial performance and any inability to ~~achieve or~~ maintain profitability in the future;

•competition in our industries;

•the unpredictability of our results of operations and uncertainty regarding the growth of the ridesharing and other markets;

•our ability to attract and retain qualified drivers and riders;

•our insurance coverage, the adequacy of our insurance reserves, and the ability of third-party insurance providers to service our auto-related insurance claims;

•our reputation and brand;

•illegal or improper activity of users of our platform;

•the accuracy of background checks on potential or current drivers and our third -party providers'’ ability to effectively conduct such background checks;

•changes to our pricing practices;

•the growth and development of our network of ~~Light~~shared ~~Vehicles~~bikes and scooters and the quality of and supply chain for our ~~Light~~network ~~Vehicles~~of shared bikes and scooters;

•our ~~autonomous~~AV ~~vehicle~~ technology, partnerships with other companies who offer ~~autonomous~~AV ~~vehicle~~ technologies, and the overall development of the ~~autonomous~~AV ~~vehicle~~ industry;

•claims from riders, drivers or third parties;

•our ability to manage our growth;

•actual or perceived security or privacy breaches or incidents and resulting interruptions in our availability or the availability of other systems and providers;

•our reliance on third parties, such as Amazon Web Services, vehicle rental partners, payment processors and other service providers;

•our ability to operate our Express Drive program;

•our nascent advertising ~~business~~platform, Lyft ~~Media~~Ads;

•our use of artificial intelligence and machine learning;

•the development of new offerings on our platform and management of the complexities of such expansion;

•inaccuracies in or changes to our key metrics and estimates;

•our ability to offer high-quality user support and to deal with fraud;

•our ability to effectively manage the offerings on our multimodal platform;

•our ability to effectively manage our pricing methodologies;

•our company culture;

•our reliance on key personnel and our ability to attract and retain personnel;

•changes in the Internet, mobile device accessibility, mobile device operating systems and application marketplaces;

•the interoperability of our platform across third-party applications and services;

•defects, errors or vulnerabilities in our technology and that of third-party providers or system failures;

•factors relating to our intellectual property rights as well as the intellectual property rights of others;

•our presence outside the ~~United~~U.S. ~~States~~ and any future international expansion;

•our share repurchase programs, including our ability to realize anticipated long-term stockholder value;

General Economic Factors

•general macroeconomic conditions;

•natural disasters, public health crises or political crises;

Regulatory and Legal Factors

•changes in laws and the adoption and interpretation of administrative rules and regulations;

•the classification status of drivers on our platform;

•intellectual property litigation;

•compliance with laws and regulations relating to privacy, data protection and the protection or transfer of personal data;

•litigation and other proceedings arising in the ordinary course of our business;

•compliance with additional laws and regulations as we expand our offerings;

•our ability to maintain an effective system of disclosure controls and internal control over financial reporting;

•changes in tax laws;

•assertions from taxing authorities that we should have collected or in the future should collect additional taxes;

•costs related to operating as a public company;

•climate change and related regulatory developments;

Financing and Transactional Risks

•our future capital requirements and our ability to service our current and future debt, financial covenants and other operational restrictions contained in our current debt agreements, and counterparty risk with respect to our capped call transactions;

•our ability to make and successfully integrate acquisitions and investments or complete divestitures, joint ventures, partnerships or other strategic transactions;

•our tax liabilities, ability to use our net operating loss carryforwards and future changes in tax matters;

Governance Risks and Risks related to Ownership of our Capital Stock

•the dual class structure of our common stock, its concentration of voting power with our Co-Founders and its impact on our stock price;

•the volatility of the trading price of our Class A common stock;

•provisions of Delaware law and our certificate of incorporation and bylaws that may make a merger, tender offer or proxy contest difficult; and

•exclusive forum provisions in our bylaws.

Risks Related to Operational Factors

Our ~~limited operating history and our~~ evolving business ~~make~~makes it difficult to evaluate our future prospects and the risks and challenges we may encounter.

~~While~~Since our ridesharing marketplace launched in 2012, we have primarily focused on ridesharing, ~~since~~particularly ~~our~~in ~~ridesharing~~North ~~marketplace~~America. ~~launched in 2012~~However, our business ~~continues~~and strategy continue to evolve. We regularly expand our platform features, offerings and services and change our pricing methodologies., ~~Through~~and ~~the~~we ~~acquisition~~have recently engaged in more significant expansion of ~~PBSC~~our ~~Urban~~operations ~~Solutions~~to ~~Inc.~~new ~~("PBSC")~~geographies inand ~~May~~new ~~2022~~offerings. In July 2025, we expanded our ~~business~~operations tobeyond ~~include~~North ~~licensing~~America, ofentering ~~certain~~nine ofnew ~~our~~countries ~~technology~~ and ~~sales~~more ofthan ~~bikes~~180 ~~and~~cities ~~stations.~~through Inour ~~recent~~acquisition ~~periods~~of Freenow, wea ~~have~~leading ~~also~~European ~~reevaluated~~multimodal ~~and~~app ~~changed~~with ~~our~~taxi ~~cost~~offering ~~structure~~at ~~and~~its ~~focused our business model~~core. ~~For~~In ~~example~~October 2025, inwe ~~February~~acquired ~~2023~~TBR, wea ~~closed~~global ~~the~~luxury ~~sale~~chauffeuring ofcompany ~~our~~that ~~vehicle~~operates ~~service~~in ~~center~~thousands ~~business~~of cities worldwide. Our evolving business, industry and markets make it difficult to evaluate our future prospects and the risks and challenges we may encounter. ~~Risks~~including ~~and challenges we have faced and expect to face include~~ our ability to:

•forecast our ~~gross~~Gross ~~bookings~~Bookings, revenue and operating results and budget for and manage our expenses;

•attract new qualified drivers and new riders, and retain existing qualified drivers and existing riders in a cost-effective manner;

•effectively and competitively price our services and determine appropriate pricing methodologies, including in reaction to competitive pressures;

•successfully develop new platform features, offerings and services to enhance the experience of users;

•comply with existing and new or modified laws and regulations applicable to our business;

•manage our platform and our business assets and expenses in light of economic and other developments, including changes in rider behavior and demand for our services;

•plan for and manage capital expenditures for our current and future offerings, including our network of ~~Light~~shared ~~Vehicles~~bikes and scooters and certain vehicles in the Express Drive program, and manage our supply chain and supplier relationships related to our current and future offerings;

•develop, manufacture, source, deploy, sell, maintain and ensure utilization of our assets, including our network of ~~Light~~shared ~~Vehicles~~bikes and scooters and certain vehicles in the Express Drive program;

•anticipate and respond to macroeconomic changes and changes in market dynamics in the markets in which we operate;

•maintain and enhance the value of our reputation and brand;

•~~effectively~~successfully ~~manage~~expand our ~~growth~~geographic reach and ~~business~~manage our international operations, including new business models and regulatory environments;

•successfully expand our geographic reach and manage our international operations;

•hire, integrate and retain talented people at all levels of our organization; and

•effectively manage our real estate footprint.

If we fail to address the risks and difficulties that we face, including those associated with the challenges listed above as well as those described elsewhere in this “Risk Factors” section, our business, financial condition and results of operations could be adversely affected. Further, because we have an evolving business and financial model and operate in a rapidly evolving ~~market~~markets, any predictions about our future ~~gross~~Gross ~~bookings~~Bookings, revenue, expenses and earnings may not be as accurate as they would be if we had a static financial model or operated in a more predictable market. WeFrom ~~have~~time ~~encountered~~to intime, ~~the~~we ~~past,~~have ~~and~~also ~~will~~reevaluated ~~encounter~~and inchanged ~~the~~our ~~future,~~cost ~~risks~~structure and ~~uncertainties~~focused ~~frequently~~our ~~experienced~~business bymodel, ~~growing~~which ~~companies~~may ~~with~~result ~~limited~~in ~~operating~~increased ~~histories~~expenses in ~~rapidly~~the ~~changing~~near ~~industries~~term or reductions in revenue. If our assumptions regarding these risks and uncertainties, which we use to plan and operate our business, are incorrect or change, or if we do not address these risks successfully, our results of operations could differ materially from our expectations and our business, financial condition and results of operations could be adversely affected, which could, in turn, cause our stock price to decline.

Our financial performance in recent periods may not be indicative of future performance, and we may not be able to achieve or maintain profitability in the future.

~~Prior~~We to 2020, we grew rapidly. In 2020, due to COVID-19 and the related government and public health measures, our revenue declined significantly. Although our revenue has since recovered, the timeline for a full recovery of rideshare demand, driver supply and other aspects of our business in each of our markets is uncertain. Accordingly, our recent revenue growth rate and financial performance, including prior to the effects of COVID-19, the decline related to COVID-19 and recent growth rates compared to periods in the midst of the COVID-19 pandemic, may not be indicative of our future performance. Further, we first achieved net income, on a GAAP basis, in the ~~year~~years ended December 31, 2024 and 2025, however, we incurred net losses every other year since our inception, and we may not be able to achieve or maintain GAAP profitability. We expect that our financial performance, including our net income and Adjusted EBITDA, will continue to fluctuate in future periods. We can provide no assurances that we will achieve or maintain profitability in the future, on a quarterly or annual basis.

14While we remain focused on operating efficiently, our expenses may increase in the future as we develop and launch new offerings and platform features, expand in existing and new markets, including new geographies, and continue to invest in our platform and customer engagement. In addition, certain costs, such as insurance and driver pay and incentives have increased or fluctuated as a result of macroeconomic factors and the development and maturation of our business and the rideshare industry, and may continue to do so. We may be unable to accurately predict these costs and our investments may not result in increased revenue or growth in our business. For example, we have incurred and will continue to incur additional costs and expenses associated with the passage of Proposition 22 in California, HB 2076 in Washington, and elsewhere, and implementation of operational changes as part of agreements with the New York and Massachusetts Attorneys General, including providing drivers in these states with new earnings opportunities and protections, including contributions towards on-the-job injury insurance, other benefits and minimum guaranteed earnings. In addition, various jurisdictions have introduced legislation setting high earnings standards and increasing other costs to the business including insurance and industry-wide sectoral bargaining for rideshare drivers. Due to various factors, including inflation, we anticipate that our insurance costs will continue to increase and will impact our profitability. Furthermore, we have expanded over time to include more asset-intensive offerings such as our network of shared bikes and scooters, our purchase and/or operation of AVs and related infrastructure, and Flexdrive. These offerings and programs require significant capital investments and recurring costs, including debt payments, maintenance, depreciation, asset life and asset replacement costs, and if we are not able to maintain sufficient levels of utilization of such assets, such offerings are otherwise not successful or we decide to shut down any such offerings, our investments may not generate sufficient returns and our financial condition may be adversely affected. In addition to the above, a determination in, resolution of, or settlement of, any legal proceeding related to driver classification matters may require us to significantly alter our existing business model and operations (including potentially suspending or ceasing operations in impacted jurisdictions), increase our costs and impact our ability to add qualified drivers to our platform and grow our business, which could have an adverse effect on our business, financial condition and results of operations, and our ability to achieve or maintain profitability

While we remain focused on operating efficiently, our expenses will likely increase in the future as we develop and launch new offerings and platform features, expand in existing and new markets and continue to invest in our platform and customer engagement. In addition, certain costs, such as insurance and driver pay and incentives have increased or fluctuated as a result of the COVID-19 pandemic, macroeconomic factors and the development and maturation of our business and the rideshare industry, and may continue to do so. We may be unable to accurately predict these costs and our investments may not result in increased revenue or growth in our business. For example, we have incurred and will continue to incur additional costs and expenses associated with the passage of Proposition 22 in California, HB 2076 in Washington, and elsewhere, and implementation of operational changes as part of agreements with the New York and Massachusetts Attorneys General, including providing drivers in these states with new earnings opportunities and protections, including contributions towards on-the-job injury insurance, other benefits and minimum guaranteed earnings. In addition, various jurisdictions have introduced legislation setting high earnings standards and increasing other costs to the business including insurance. Due to various factors, including inflation, we anticipate that our insurance costs will continue to increase and will impact our profitability. Furthermore, we have expanded over time to include more asset-intensive offerings such as our network of Light Vehicles and Flexdrive. These offerings and programs require significant capital investments and recurring costs, including debt payments, maintenance, depreciation, asset life and asset replacement costs, and if we are not able to maintain sufficient levels of utilization of such assets, such offerings are otherwise not successful or we decide to shut down any such offerings, our investments may not generate sufficient returns and our financial condition may be adversely affected. In addition to the above, a determination in, resolution of, or settlement of, any legal proceeding related to driver classification matters may require us to significantly alter our existing business model and operations (including potentially suspending or ceasing operations in impacted jurisdictions), increase our costs and impact our ability to add qualified drivers to our platform and grow our business, which could have an adverse effect on our business, financial condition and results of operations, and our ability to achieve or maintain profitability in the future. Additionally, stock-based compensation expense related to restricted stock units (“RSUs”) and other equity awards is expected to continue to be a significant expense for the foreseeable future, and as of December 31, 2024, we had $160.4 million of unrecognized stock-based compensation expense related to all unvested awards, net of estimated forfeitures, that will be recognized over a weighted-average period of approximately 1.0 year. Any failure to increase our revenue sufficiently to keep pace with our investments and other expenses could prevent us from achieving or maintaining profitability or positive cash flow on a consistent basis. If we are unable to successfully address these risks and challenges as we encounter them, our business, financial condition and results of operations could be adversely affected.13

Asin ~~our~~the ~~business~~future. ~~evolves~~Additionally, ~~our~~stock-based ~~revenue~~compensation ~~growth~~expense ~~rates~~related to RSUs and ~~results~~other ofequity ~~operations~~awards ~~will~~is ~~fluctuate~~expected ~~due~~to continue to be a ~~number~~significant expense for the foreseeable future, and as of ~~reasons~~December 31, ~~which~~2025, ~~may~~we ~~include~~had ~~changes~~$140.5 inmillion ~~the~~of ~~macroeconomic~~unrecognized ~~environment,~~stock-based ~~slowing~~compensation ~~demand~~expense ~~for~~related ~~our~~to ~~offerings~~all unvested awards, ~~increasing~~net ~~competition~~of orestimated ~~changes~~forfeitures, inthat ~~market~~will ~~dynamics,~~be arecognized ~~decrease~~over ina ~~the~~weighted-average ~~growth~~period of ~~our~~approximately ~~overall~~8 ~~market~~months. orAny ~~market~~failure ~~saturation,~~to ~~public~~increase ~~health~~our ~~crises,~~revenue ~~increasing~~sufficiently ~~regulatory~~to ~~costs~~keep ~~and~~pace ~~challenges~~with our investments and ~~resulting~~other ~~changes~~expenses tocould ~~our~~prevent ~~business~~us ~~model~~from ~~and~~achieving ~~our~~or ~~failure~~maintaining toprofitability ~~capitalize~~or positive cash flow on ~~growth~~a ~~opportunities~~consistent basis. If we are unable to ~~generate~~successfully ~~adequate~~address ~~revenue~~these ~~growth~~risks and ~~manage~~challenges ~~our~~as ~~expenses,~~ we ~~may~~encounter ~~continue~~them, toour ~~incur~~business, ~~significant~~financial ~~losses~~condition inand ~~the~~results ~~future~~of ~~and~~operations ~~may~~could ~~not~~ be ~~able~~adversely ~~to achieve or maintain profitability~~affected.

As our business evolves, our revenue growth rates and results of operations will fluctuate due to a number of reasons, which may include changes in the macroeconomic environment, slowing demand for our offerings, increasing competition or changes in market dynamics, a decrease in the growth of our overall market or market saturation, varying profitability of different offerings, increased expenses due to investments, public health crises, increasing regulatory costs and challenges and resulting changes to our business model and our failure to capitalize on growth opportunities. If we are unable to generate adequate revenue growth and manage our expenses, we may continue to incur significant losses in the future and may not be able to achieve or maintain profitability.

We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition and results of operations.

The market for TaaS networks is intensely competitive and characterized by rapid changes in technology, shifting levels of supply and demand and frequent introductions of new services and offerings. We expect competition to continue, both from current competitors and new entrants in the market that may be well-established and enjoy greater resources or other strategic or technological advantages. If we are unable to anticipate or successfully react to competitive challenges in a timely manner, our competitive position could weaken, or fail to improve, and we could experience fluctuations or a decline in market share, a decline in ~~gross~~Gross ~~bookings~~Bookings, revenue or growth stagnation that could adversely affect our business, financial condition and results of operations. Our market share has fluctuated over time and we have had to take actions, such as price cuts, that have negative impacts on our financial results in the short term, either because of decreased revenue or increased investments, or both, that we believe will benefit our company in the long term.

Our main ridesharing competitor in the ~~United~~U.S. ~~States~~ and Canada is Uber, and in Europe, our main competitors for app-based intermediation services for taxi and private hire vehicles are Uber and Bolt, though we also compete with other ~~transportation~~TNCs ~~network companies~~ and taxicab and livery companies, as well as traditional automotive manufacturers and technology companies. Our main competitors in bike and scooter sharing include Lime, Bird, Fifteen, nextbike and Dott. We also compete with other manufacturers of bike and scooter sharing equipment for sales of such equipment, particularly in markets outside of the ~~United States~~U.S.

Additionally, there are other non-U.S.-based TaaS network companies, bike and scooter sharing companies, consumer vehicle rental companies, non-ridesharing ~~transportation~~TNCs ~~network companies~~ and traditional automotive manufacturers that may expand into ~~the~~North ~~United~~America ~~States~~ and ~~Canada~~Europe. There are also a number of companies developing ~~autonomous~~and ~~vehicle~~introducing AV technology and TaaS offerings that either are competing with us or may compete with us in the future, including Alphabet (Waymo), Amazon (Zoox), Baidu, ~~Motional~~Bolt, and Tesla as well as many other technology companies and automobile manufacturers and suppliers. We anticipate continued challenges from current competitors as well as from new entrants into the TaaS market.

~~Certain~~Within each of these markets, the cost to switch between products is low. Riders have a propensity to shift to the lowest-cost or highest-quality provider and could use more than one platform; drivers have a propensity to shift to the platform with the highest earnings potential. In addition, certain of our competitors and potential competitors have greater financial, technical, marketing, research and development, manufacturing and other resources, greater name recognition, longer operating histories or a larger user base than we do. They may be able to devote greater resources to the development, promotion and sale of offerings and offer lower prices than we do, which could adversely affect the health of our marketplace and our results of operations. Further, they may have greater resources to deploy towards the research, development and commercialization of new technologies, including AV technology or networks of shared bikes and scooters, or they may have other financial, technical or resource advantages. These factors may allow our competitors or potential competitors to derive greater Gross Bookings, revenue and profits from their existing user bases, attract and retain qualified drivers and riders at lower costs, offer more attractive pricing on their platforms or respond more quickly to new and emerging technologies, revenue opportunities and trends. Our current and potential competitors may also establish cooperative or strategic relationships, or consolidate, amongst themselves or with third parties that may further enhance their resources and offerings. We have entered into strategic collaborations and partnerships with certain of the aforementioned competitors, including with respect to AVs, and these partnerships may lead to actual or perceived conflicts of interest or misalignment of strategic objectives.

adversely affect the health of our marketplace and our results of operations. Further, they may have greater resources to deploy towards the research, development and commercialization of new technologies, including autonomous vehicle technology or Light Vehicles, or they may have other financial, technical or resource advantages. These factors may allow our competitors or potential competitors to derive greater gross bookings, revenue and profits from their existing user bases, attract and retain qualified drivers and riders at lower costs, offer more attractive pricing on their platforms or respond more quickly to new and emerging technologies, revenue opportunities and trends. Our current and potential competitors may also establish cooperative or strategic relationships, or consolidate, amongst themselves or with third parties that may further enhance their resources and offerings.

We believe that our ability to compete effectively depends upon many factors both within and beyond our control, and if we are unable to compete successfully, our business, financial condition and results of operations could be adversely affected.

~~Our results of operations vary and are difficult to predict from period-to-period, which could cause the trading price of our Class A common stock to decline.~~14

~~Our~~If ~~results of operations have historically varied from period-to-period and we expect that~~ our ~~results~~markets ofdo ~~operations~~not ~~will~~ continue to ~~do so for a variety of reasons~~grow, ~~many~~grow ofmore ~~which~~slowly ~~are~~than ~~outside~~we ofexpect ~~our~~or ~~control~~fail ~~and difficult~~ to ~~predict.~~grow ~~Because~~as ~~our~~large ~~results~~or ofotherwise ~~operations~~develop ~~may~~as ~~vary~~we ~~significantly from quarter-to-quarter and year-to-year~~expect, ~~the results of any one period should not be relied upon as an indication of future performance. We have presented many of the factors that may cause~~ our ~~results~~business, offinancial ~~operations~~condition toand ~~fluctuate in this “Risk Factors” section. Fluctuations in our~~ results of operations ~~may cause such results to fall below our financial guidance or other projections, or the expectations of analysts or investors, which~~ could ~~cause~~be ~~the~~adversely ~~trading price of our Class A common stock to decline~~affected.

The U.S. ridesharing market was introduced in 2012 and has continued to grow over time. However, it is uncertain to what extent the market will continue to grow, if at all. New technologies and changing consumer preferences may decrease or shift the ridesharing market. In addition, the market for our other offerings, such as our network of ~~Light~~shared ~~Vehicles~~bikes and scooters, ~~are~~is ~~still~~continuing into ~~relatively~~develop ~~early~~and ~~stages~~change, ofand ~~growth~~it is uncertain whether demand for bike and ~~development~~scooter sharing will continue to grow and ifachieve ~~such~~wide ~~markets~~market doacceptance. Our success will depend to a substantial extent on the willingness of people to widely adopt ridesharing and our other offerings across a variety of use cases, as well as our ability to shift our business model in line with consumer preferences. If the public does not ~~continue~~perceive ridesharing or our other offerings as beneficial, or chooses not to ~~grow~~adopt them as a result of concerns regarding public health or safety, ~~grow~~affordability, longer-term behavioral and social shifts, or for other reasons, whether as a result of incidents on our platform or on our competitors’ platforms, health concerns, or otherwise, then the market for our offerings may not further develop, may develop more slowly than we expect or ~~fail~~may not achieve the growth potential we expect. Additionally, from time to ~~grow~~time aswe ~~large~~re-evaluate orthe ~~otherwise~~markets ~~develop~~in aswhich we ~~expect~~operate and the performance of our offerings, and we have discontinued and may in the future discontinue operations in certain markets if, among other reasons, such markets are not developing as we expected. Any of the foregoing risks and challenges could adversely affect our business, financial condition and results of operations ~~could be adversely affected~~.

Prior to 2020, the ridesharing market grew rapidly, but it is still relatively new, and it is uncertain to what extent market acceptance will continue to grow, if at all. In addition, the market for our other offerings, such as our network of Light Vehicles, is relatively new and unproven, and it is uncertain whether demand for bike and scooter sharing will continue to grow and achieve wide market acceptance. Our success will depend to a substantial extent on the willingness of people to widely adopt ridesharing and our other offerings across a variety of use cases. In response to the COVID-19 pandemic, we paused our Shared Rides offerings, and we were temporarily restricted from operating our scooter share program in one jurisdiction due to public health and safety measures. We had to suspend or discontinue these offerings from time to time due to various concerns. In the event of significant public health concerns, such as COVID-19, or other events beyond our control, we may be required or believe it is advisable to suspend such offerings again. If the public does not perceive ridesharing or our other offerings as beneficial, or chooses not to adopt them as a result of concerns regarding public health or safety, affordability, longer-term behavioral and social shifts due to the COVID-19 pandemic, or for other reasons, whether as a result of incidents on our platform or on our competitors’ platforms, health concerns, or otherwise, then the market for our offerings may not further develop, may develop more slowly than we expect or may not achieve the growth potential we expect. Additionally, from time to time we re-evaluate the markets in which we operate and the performance of our offerings, and we have discontinued and may in the future discontinue operations in certain markets as a result of such evaluations. For example, we currently offer Shared Rides in connection with business-to-business partnerships and only in select markets. Any of the foregoing risks and challenges could adversely affect our business, financial condition and results of operations.

If we fail to cost-effectively attract and retain qualified drivers on our platform, or to increase the utilization of our platform by existing drivers, our business, financial condition and results of operations could be harmed.

Our continued growth depends in part on our ability to cost-effectively attract and retain qualified drivers who satisfy our screening criteria and procedures ~~and~~as well as our ability to increase their utilization of our platform. To attract and retain qualified drivers, we have, among other things, offered sign-up and referral bonuses, various driver incentives, developed new programs such as guaranteed earnings, and provided access to third-party vehicle rental programs for drivers who do not have or do not wish to use their own vehicle. Drivers are generally able to switch between our platform and competing platforms. If we do not continue to provide drivers with flexibility on our platform, compelling opportunities to increase earnings and other incentive programs, such as demand-based bonuses, that are comparable or superior to those of our competitors and other companies in the app-based work industry or other industries, or if drivers become dissatisfied with our programs and benefits or our requirements for drivers, including requirements regarding the vehicles they drive, we may fail to attract new drivers, retain current drivers or increase their utilization of our platform, or we may experience complaints, negative publicity, strikes or other work stoppages that could adversely affect our users and our business. For example, ~~during~~from ~~and~~time ~~after~~to ~~the~~time, ~~COVID-19~~in ~~pandemic~~order to attract and retain drivers, weand ~~experienced~~ensure aan ~~shortage~~adequate supply of ~~available~~ drivers ~~relative~~ to meet rider demand inas ~~certain~~well ~~markets~~maintain ~~and~~our ~~offered~~expectations for rider service, we offer increased incentives to improve driver supply. Our revenue and results of operations have been and may in ~~prior~~the ~~periods~~future ~~been~~be negatively impacted by supply incentives, ~~and~~ to the extent ~~that~~such ~~driver~~incentives ~~availability~~do ~~remains~~not ~~limited~~result ~~and~~in increased revenue or reduce our profitability. Additionally, we ~~offer~~are ~~increased~~required ~~incentives~~to provide benefits to ~~improve~~drivers ~~supply,~~in ~~our~~certain ~~revenue~~markets ~~and~~in ~~results~~response ofto ~~operations~~regulations ~~may~~or besettlement ~~negatively~~agreements, ~~impacted~~including in ~~the~~California, ~~future~~New York and Massachusetts. ~~Additionally~~Other jurisdictions have adopted or may adopt similar laws and regulations, ~~following~~and ~~the~~we ~~passage~~may ofreach ~~Proposition~~similar 22or inother ~~California~~settlements with other jurisdictions, ~~drivers~~any ~~have~~of ~~been~~which ~~able~~may increase our expenses. Litigation seeking to ~~access~~reclassify ~~the~~drivers ~~earning~~as ~~opportunities~~employees is pending and/or threatened in multiple jurisdictions, including as described in the ~~ballot~~“Legal ~~measure.~~Proceedings” Insubheading ~~addition,~~ in ~~connection~~Note ~~with~~10 ~~settlements~~“Commitments ~~with~~and Contingencies” to the ~~New~~consolidated ~~York~~financial ~~and~~statements ~~Massachusetts~~included ~~Attorneys~~in ~~General,~~this ~~the~~Annual ~~Company~~Report on Form 10-K. If such litigation is ~~continuing~~successful in one or more jurisdictions, we may be required to ~~implement~~classify ~~certain~~drivers ~~operational~~as ~~changes~~employees ~~that~~rather ~~entail~~than ~~increased~~independent ~~costs.~~contractors ~~Further,~~in ~~other~~those jurisdictions. ~~have~~If ~~adopted~~we orare ~~may~~required ~~adopt~~to ~~similar~~shift ~~laws~~our ~~and~~business ~~regulations~~model to classify drivers as employees, ~~and~~we would incur significant additional expenses that we may ~~reach~~need ~~similar~~to ordevelop ~~other~~new ~~settlements~~offerings ~~with~~and ~~other~~approaches ~~jurisdictions,~~to ~~any~~attract ofand ~~which~~retain ~~may~~such ~~increase~~drivers. These changes in our ~~expenses.~~model ~~Litigation~~would ~~seeking~~have tosignificant ~~reclassify~~adverse ~~drivers~~impacts ason ~~employees~~our isbusiness and operating results.

16If drivers are unsatisfied with certain of our partners, including our third-party vehicle rental partners, our ability to attract and retain qualified drivers and to increase their utilization of our platform could be adversely affected. Further, incentives we provide to attract drivers could fail to attract and retain qualified drivers or fail to increase utilization, or could have other unintended adverse consequences. In addition, changes in certain laws and regulations, including immigration, labor and employment laws or background check requirements, may result in a shift or decrease in the pool of qualified drivers, which may result in increased competition for qualified drivers or higher costs of recruitment, operation and retention. As part of our business operations or research and development efforts, data on the vehicle may be collected and drivers may be uncomfortable or unwilling to drive knowing that data is being collected. Other factors outside of our control, such as concerns about personal health and safety, increases in the price of gasoline, vehicles or insurance, or concerns about the availability of government or other assistance programs if drivers continue to drive on our platform, may also reduce the number of drivers on our platform or their utilization of our platform, or impact our ability to onboard new drivers. If we fail to attract qualified drivers on favorable terms, fail to increase their utilization of our platform or lose qualified drivers to our competitors, we may not be able to meet the demand of riders, including maintaining a competitive price of rides to riders, and our business, financial condition and results of operations could be adversely affected.

pending and/or threatened in multiple jurisdictions, including as described in the “Legal Proceedings” subheading in Note 10. Commitments and Contingencies to the consolidated financial statements included in this Annual Report on Form 10-K. If such litigation is successful in one or more jurisdictions, we may be required to classify drivers as employees rather than independent contractors in those jurisdictions, and we may incur significant expenses to resolve the matters at issue in the litigation. If this occurs, we may need to develop and implement an employment model that we have not historically used or to cease operations, whether temporarily or permanently, in affected jurisdictions. We may face specific risks relating to our ability to onboard drivers as employees, our ability to partner with third-party organizations to source drivers and our ability to effectively utilize employee drivers to meet rider demand. 15

If drivers are unsatisfied with our partners, including our third-party vehicle rental partners, our ability to attract and retain qualified drivers and to increase their utilization of our platform could be adversely affected. Further, incentives we provide to attract drivers could fail to attract and retain qualified drivers or fail to increase utilization, or could have other unintended adverse consequences. In addition, changes in certain laws and regulations, including immigration, labor and employment laws or background check requirements, may result in a shift or decrease in the pool of qualified drivers, which may result in increased competition for qualified drivers or higher costs of recruitment, operation and retention. As part of our business operations or research and development efforts, data on the vehicle may be collected and drivers may be uncomfortable or unwilling to drive knowing that data is being collected. Other factors outside of our control, such as concerns about personal health and safety, increases in the price of gasoline, vehicles or insurance, or concerns about the availability of government or other assistance programs if drivers continue to drive on our platform, may also reduce the number of drivers on our platform or their utilization of our platform, or impact our ability to onboard new drivers. If we fail to attract qualified drivers on favorable terms, fail to increase their utilization of our platform or lose qualified drivers to our competitors, we may not be able to meet the demand of riders, including maintaining a competitive price of rides to riders, and our business, financial condition and results of operations could be adversely affected.

If we fail to cost-effectively attract new riders, or to increase utilization of our platform by existing riders, our business, financial condition and results of operations could be harmed.

Our success depends in part on our ability to cost-effectively attract new riders, retain existing riders and increase utilization of our platform by current riders. Riders have a wide variety of options for transportation, including personal vehicles, rental cars, taxis, public transit and other ridesharing and bike and scooter sharing offerings. Rider preferences may also change from time to time. To expand our rider base, we must appeal to new riders who have historically used other forms of transportation or other ~~ridesharing or bike and scooter sharing~~ platforms. We believe that our paid marketing initiatives have been and will continue to be critical in promoting awareness of our offerings, which in turn drives new rider growth and rider utilization. However, our reputation, brand and ability to build trust with existing and new riders may be adversely affected by complaints and negative publicity about us, our offerings, our policies, including our pricing algorithms and pricing policies, the quality of our service, including timely pick-ups, drivers on our platform, or our competitors, even if factually incorrect or based on isolated incidents. Further, if existing and new riders do not perceive the transportation services provided by drivers on our platform to be reliable, safe and affordable, or if we fail to offer new and relevant offerings and features on our platform, we may not be able to attract or retain riders or to increase their utilization of our platform. As we continue to expand into new geographic areas, we will be relying in part on referrals from our existing riders to attract new riders, and therefore we must ensure that our existing riders remain satisfied with our offerings. In addition, we have experienced and may continue to experience seasonality in both ridesharing and ~~Light~~bikes ~~Vehicle~~and scooters rentals during the winter months, which may harm our ability to attract and retain riders during such periods. WeFrom time to time, we have also experienced volatility in the health of our overall marketplace~~, and demand for our platform has not returned to pre-2020 levels in all markets~~. We cannot predict whether these impacts will continue, including longer term. If we fail to continue to grow our rider base, retain existing riders or increase the overall utilization of our platform by existing riders, we may not be able to provide drivers with an adequate level of ride requests, and our business, financial condition and results of operations could be adversely affected. In addition, if we do not achieve sufficient utilization of our asset-intensive offerings such as our network of ~~Light~~shared ~~Vehicles~~bikes and scooters, our business, financial condition and results of operations could be adversely affected.

We rely substantially on our wholly-owned subsidiary and deductibles to insure auto-related risks and on third-party insurance policies to insure and reinsure our operations-related risks. If our insurance or reinsurance coverage is insufficient for the needs of our business or our insurance providers are unable to meet their obligations, we may not be able to mitigate the risks facing our business, which could adversely affect our business, financial condition and results of operations.

We require drivers to carry automobile insurance in most countries we offer services in, and in many cases we also procure insurance on behalf of drivers. From the time a driver becomes available to accept rides in the Lyft ~~Driver~~ App until the driver logs off and is no longer available to accept rides, we, through our wholly-owned insurance subsidiary and deductibles, often bear substantial financial risk with respect to auto-related incidents, including auto liability, uninsured and underinsured motorist, auto physical damage, first party injury coverages including personal injury protection under U.S. state law and general business liabilities up to certain limits. To comply with ~~certain United States and Canadian province~~ insurance regulatory requirements ~~for~~in ~~auto-related~~jurisdictions ~~risks~~we operate in, we procure a number of third-party insurance policies which provide the required coverage in such jurisdictions. In nearly all U.S. states, our insurance subsidiary reinsures a portion, which may change from time to time, of the auto-related risk from some third-party insurance providers. In connection with our reinsurance and deductible arrangements, we deposit funds into trust accounts with a third-party financial institution from which some third-party insurance providers are reimbursed for claims payments. As we continue to expand our international footprint, we face increasingly complex and diverse regulatory insurance frameworks. If we fail to comply with ~~state~~these evolving regulatory frameworks, or if our third-party insurance providers or claims administrators become insolvent or otherwise fail to fulfill their obligations, we may be exposed to significant unmitigated losses. Such events could materially and adversely affect our business, financial condition, and results of operations.

17We also procure third-party insurance policies to cover various operations-related risks including employment practices liability, workers’ compensation, business interruptions, cybersecurity and data breaches, crime, directors’ and officers’ liability and general business liabilities. For certain types of operations-related risks or future risks related to our new and evolving offerings, we may not be able to, or may choose not to, acquire insurance. In addition, we may not obtain enough insurance to adequately mitigate such operations-related risks or risks related to our new and evolving offerings, and we may have to pay high premiums, self-insured retentions or deductibles for the coverage we do obtain. Additionally, if any of our insurance or reinsurance providers becomes insolvent, it could be unable to pay any operations-related claims that we make. Certain losses may be excluded from insurance coverage including, but not limited to losses caused by intentional act, pollution, contamination, virus, bacteria, terrorism, war and civil unrest.

~~insurance~~The ~~regulatory~~amount ~~requirements~~of one or ~~other~~more ~~regulations~~auto-related ~~governing~~claims ~~insurance~~or operations-related claims has exceeded and could continue to exceed our applicable aggregate coverage limits, for which we have borne and could continue to bear a portion of the excess, in addition to amounts already incurred in connection with deductibles, self-insured retentions or otherwise paid by our insurance subsidiary. Insurance providers have raised premiums and deductibles for many types of coverages and for a variety of commercial risks and are likely to do so in the future. As a result, our insurance and claims expenses could increase, or we may decide to raise our deductibles or self-insured retentions when our policies are renewed or replaced to manage pricing pressure. Our business, financial condition and results of operations could be adversely affected. Ifif ~~any~~(i) cost ofper ~~our~~claim, ~~third-party~~premiums ~~insurance~~or ~~providers~~the ornumber ~~administrators~~of ~~who~~claims ~~handle~~significantly ~~the~~exceeds ~~claim~~our onhistorical ~~behalf~~experience, of(ii) we ~~the~~experience ~~third-party~~a ~~insurance~~claim ~~providers~~in ~~become~~excess ~~insolvent~~of our coverage limits, ~~they~~(iii) our ~~could~~insurance beproviders ~~unable~~fail to pay ~~any~~on ~~claims~~our ~~that we make.~~

We also procure third-party insurance policies to cover various operations-related risks including employment practices liability, workers’ compensation, business interruptions, cybersecurity and data breaches, crime, directors’ and officers’ liability and general business liabilities, including product liability. For certain types of operations-related risks or future risks related to our new and evolving offerings, we may not be able to, or may choose not to, acquire insurance. In addition, we may not obtain enough insurance to adequately mitigate such operations-related risks or risks related to our new and evolving offerings, and we may have to pay high premiums, self-insured retentions or deductibles for the coverage we do obtain. Additionally, if any of our insurance or reinsurance providers becomes insolvent, it could be unable to pay any operations-related claims that we make. Certain losses may be excluded from insurance coverage including, but not limited to losses caused by intentional act, pollution, contamination, virus, bacteria, terrorism, war and civil unrest.16

The amount of one or more auto-related claims or operations-related claims has exceeded and could continue to exceed our applicable aggregate coverage limits, for which we have borne and could continue to bear a portion of the excess, in addition to amounts already incurred in connection with deductibles, self-insured retentions or otherwise paid by our insurance subsidiary. Insurance providers have raised premiums and deductibles for many types of coverages and for a variety of commercial risks and are likely to do so in the future. As a result, our insurance and claims ~~expenses could increase~~, or we may decide to raise our deductibles or self-insured retentions when our policies are renewed or replaced to manage pricing pressure. Our business, financial condition and results of operations could be adversely affected if (i) cost per claim, premiums or the number of claims significantly exceeds our historical experience, (ii) we experience a claim in excess of our coverage limits, (iii) our insurance providers fail to pay on our insurance claims, (iv) we experience a claim for which coverage is not provided, (v) the number of claims and average claim cost under our deductibles or self-insured retentions differs from historic averages, (vi) an insurance policy is canceled or non-renewed, or (vii) other insurance providers for drivers on our platform become insolvent.

Our actual losses may exceed our insurance reserves, which could adversely affect our financial condition and results of operations.

We establish insurance reserves for claims incurred but not yet paid and claims incurred but not yet reported and any related estimable expenses, and we periodically evaluate and, as necessary, adjust our actuarial assumptions and insurance reserves as our experience develops or new information is learned. We employ various predictive modeling and actuarial techniques and make numerous assumptions based on available historical experience and industry statistics to estimate our insurance reserves. Estimating the number and severity of claims, as well as related judgment or settlement amounts, is inherently difficult, subjective and speculative. While an independent actuarial firm periodically reviews our reserves for appropriateness and provides claims reserve valuations, a number of external factors can affect the actual losses incurred for any given claim, including but not limited to the length of time the claim remains open, increases in healthcare costs, increases in automotive costs (including rental vehicles), legislative and regulatory developments, judicial developments and unexpected events. Such factors can impact the reserves for claims incurred but not yet paid as well as the actuarial assumptions used to estimate the reserves for claims incurred but not yet reported and any related estimable expenses for current and historical periods. The automotive insurance industry has experienced rising costs due to, among other things, inflation, supply chain challenges, and the increasing cost of medical care, which has driven an increase in actual losses in recent periods, and we expect these costs to continue to drive increased actual losses. Additionally, our insurance providers have encountered in the past, and may encounter in the future, instances of insurance fraud, which could increase our actual insurance-related costs. For any of the foregoing reasons, our actual losses for claims and related expenses may deviate, individually or in the aggregate, from the insurance reserves reflected in our consolidated financial statements. If we determine that our estimated insurance reserves are inadequate, we may be required to increase such reserves at the time of the determination, which could result in an increase to our net loss in the period in which the shortfall is determined and negatively impact our financial condition and results of operations. For example, we have in the past experienced adverse development where we have needed to increase historical reserves attributable to liabilities in prior periods.

We rely on a limited number of third-party insurance service providers for our auto-related insurance claims, and if such providers fail to service insurance claims to our expectations or we do not maintain business relationships with them, our business, financial condition and results of operations could be adversely affected.

We rely on a limited number of third-party insurance service providers to service our auto-related claims. If any of our third-party insurance service providers fail to service claims to our expectations, discontinues or increases the cost of coverage or changes the terms of such coverage in a manner not favorable to drivers or to us, we cannot guarantee that we would be able to secure replacement coverage or services on reasonable terms in an acceptable time frame or at all. If we cannot find alternate third-party insurance service providers on terms acceptable to us, we may incur additional expenses related to servicing such auto-related claims using internal resources.

In recent periods, the automotive insurance industry has experienced rising costs due to, among other things, inflation, supply chain challenges, insurance fraud, and the cost of medical care, which has harmed our business, financial condition and results of operations, including through increased insurance renewal costs, and we expect it to continue to negatively impact the automotive insurance industry and our business, financial condition and results of operations.

18We have, from time to time, ceded portions of retained insurance risk to third-parties, including as described in the “Insurance Reserves” subheading in Note 8 “Supplemental Financial Statement Information” to the consolidated financial statements included in this Annual Report on Form 10-K. These transactions may cause us to incur additional expenses in the total cost of this risk, and we are subject to recapture of the risk if any third-party reinsurer were to default on their reinsurance obligation.

through increased insurance renewal costs, and we expect it to continue to negatively impact the automotive insurance industry and our business, financial condition and results of operations.

We have, from time to time, sold portions of retained insurance risk to third-parties, including as described in the “Insurance Reserves” subheading in Note 8, Supplemental Financial Statement Information to the consolidated financial statements included in this Annual Report on Form 10-K. These transactions may cause us to incur additional expenses in the total cost of this risk, and we are subject to recapture of the risk if any third party reinsurer were to default on their reinsurance obligation.

Any negative publicity related to any of our third-party insurance service providers could adversely affect our reputation and brand and could potentially lead to increased regulatory or litigation exposure. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

Our reputation, brand and the network effects among the drivers and riders on our platform are important to our success, and if we are not able to maintain and continue developing our reputation, brand and network effects, our business, financial condition and results of operations could be adversely affected.

We believe that building a strong reputation and brand as a safe, reliable and affordable platform and continuing to increase the strength of the network effects among the drivers and riders on our platform are critical to our ability to attract and retain qualified drivers and riders. The successful development of our reputation, brand and network effects will depend on a number of factors, many of which are outside our control. Negative perception of our platform or company may harm our reputation, brand and networks effects, including as a result of:

•complaints or negative publicity about us, drivers on our platform, riders, our product offerings, our ability to deliver on product promises, pricing or our policies and guidelines, including our practices and policies with respect to drivers, or the ridesharing industry, even if factually incorrect or based on isolated incidents;

•illegal, negligent, reckless or otherwise inappropriate behavior by drivers or riders or third parties, or concerns about the safety of our platform or ridesharing in general;

•a failure to provide drivers with a sufficient level of ride requests, charge drivers fees and commissions that are competitive or provide drivers with competitive fares and incentives;

•a failure to offer riders competitive ride pricing and pick-up times or the desired range of ride types;

•actual or perceived disruptions of or defects in our platform, such as privacy or data security breaches or incidents, site outages, payment disruptions or other incidents that impact the reliability of our offerings;

•litigation over, or investigations by regulators into, our platform or our business, including any adverse resolution of such litigation or investigations;

•users’ lack of awareness of, or compliance with, our policies, changes to our policies that are negatively received, or a failure to enforce our policies in a manner perceived as effective, fair and transparent;

•a failure to operate our business in a way that is consistent with our stated values and mission, including modification or discontinuation of our community or sustainability programs, illegal or otherwise inappropriate behavior by our management team or other employees or contractors, or negative perception of our treatment of employees;

•inadequate or unsatisfactory user support service experiences;

•negative responses by drivers or riders to new offerings on our platform;

•~~accidents, defects or other~~ negative ~~incidents~~responses ~~involving~~to ~~autonomous vehicles or Light Vehicles on~~ our ~~platform~~entry orinto ~~Light~~new ~~Vehicles~~markets ~~sold~~and ~~to third parties~~geographies;

•accidents, defects or other negative incidents involving AVs or network of shared bikes and scooters on our platform or bikes and scooters sold to third parties;

•political or social policies or activities, including our response to employee sentiment related to these matters; or

•any of the foregoing with respect to our competitors, to the extent such resulting negative perception affects the public’s perception of us or our industry as a whole.

If we do not successfully maintain and develop our brand, reputation and network effects and successfully differentiate our offerings from competitive offerings, our business may not grow, we may not be able to compete effectively and we could lose existing qualified drivers or existing riders or fail to attract new qualified drivers or new riders, any of which could adversely affect our business, financial condition and results of operations. In addition, changes we may make to enhance and improve our offerings and balance the needs and interests of the drivers and riders on our platform may be viewed positively from one group’s perspective (such as riders) but negatively from another’s perspective (such as drivers), or may not be viewed positively by either drivers or riders. If we fail to balance the interests of drivers and riders or make changes that they view negatively, drivers and riders may stop using our platform, take fewer rides or use alternative platforms, any of which could adversely affect our reputation, brand, business, financial condition and results of operations.

(such as riders) but negatively from another’s perspective (such as drivers), or may not be viewed positively by either drivers or riders. If we fail to balance the interests of drivers and riders or make changes that they view negatively, drivers and riders may stop using our platform, take fewer rides or use alternative platforms, any of which could adversely affect our reputation, brand, business, financial condition and results of operations.

Illegal, improper or otherwise inappropriate activity of users, whether or not occurring while utilizing our platform, has and could continue to expose us to liability and harm our business, brand, financial condition and results of operations.

Illegal, improper or otherwise inappropriate activities by users, including the activities of individuals who may have previously engaged with, but are not then receiving or providing services offered through, our platform or individuals who are intentionally impersonating users of our platform could adversely affect our brand, business, financial condition and results of operations. These activities may include criminal activity such as assault, theft, unauthorized use of credit and debit cards or bank accounts, as well as other misconduct such as sharing of rider or driver accounts, and identity theft to create user accounts. While we have implemented various measures intended to anticipate, identify and address the risk of these types of activities, these measures may not adequately address, and are unlikely to prevent, all illegal, improper or otherwise inappropriate activity by these parties from occurring in connection with our offerings. Such conduct has and could continue to expose us to liability or adversely affect our brand or reputation. At the same time, if the measures we have taken to guard against these illegal, improper or otherwise inappropriate activities, such as our requirement that all U.S. drivers undergo annual background checks or our two-way rating system and related policies, are too restrictive and inadvertently prevent qualified drivers and riders otherwise in good standing from using our offerings, or if we are unable to implement and communicate these measures fairly and transparently or are perceived to have failed to do so, the growth and retention of the number of qualified drivers and riders on our platform and their utilization of our platform could be negatively impacted. Further, any negative publicity related to the foregoing, whether such incident occurred on our platform, on our competitors’ platforms, or on any ridesharing platform, could adversely affect our reputation and brand or public perception of the ridesharing industry as a whole, which could negatively affect demand for platforms like ours, and potentially lead to increased regulatory or litigation exposure. Any of the foregoing risks could harm our business, financial condition and results of operations.

ridesharing industry as a whole, which could negatively affect demand for platforms like ours, and potentially lead to increased regulatory or litigation exposure. Any of the foregoing risks could harm our business, financial condition and results of operations.

We rely on third-party background check providers to screen potential and existing drivers, and if such providers fail to furnish and/or provide accurate information, or if such providers are unable to complete background checks or are delayed in completing background checks because of data access restrictions, software outages, cyberattacks, or otherwise, or if we do not maintain business relationships with them, our business, financial condition and results of operations could be adversely affected.

We rely on third-party background check providers to screen the records of potential and existing drivers to help identify those that are not qualified to utilize our platform pursuant to applicable laws or our internal standards. Our business has been and may continue to be adversely affected to the extent we cannot attract or retain qualified drivers as a result of such providers being unable to complete certain background checks, or being significantly delayed in completing certain background checks, because of data access restrictions, software outages, cyberattacks, unforeseen court or Department of Motor Vehicle closures, or otherwise, or to the extent that they do not meet their contractual obligations, our expectations or the requirements of applicable laws or regulations. If any of our third-party background check providers terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we may need to find an alternate provider, and may not be able to secure similar terms or replace such partners in an acceptable time frame. If we cannot find alternate third-party background check providers on terms acceptable to us, we may not be able to timely onboard potential drivers, and as a result, our platform may be less attractive to qualified drivers. Further, if the background checks conducted by our third-party background check providers do not meet our expectations or the requirements under applicable laws and regulations, unqualified drivers may be permitted to provide rides on our platform, and as a result, our reputation and brand could be adversely affected and we could be subject to increased regulatory or litigation exposure.

We are also subject to a number of laws and regulations applicable to background checks for potential and existing drivers on our platform. If we or drivers on our platform fail to comply with applicable laws, rules and legislation, our reputation, business, financial condition and results of operations could be adversely affected.

Any negative publicity related to any of our third-party background check providers, including publicity related to safety incidents or data security breaches or incidents, could adversely affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

Changes to our pricing could adversely affect our ability to attract or retain qualified drivers and riders.

Demand for our offerings is highly sensitive to the price of rides, the rates for time and distance driven, incentives paid to drivers and the fees we charge drivers. Many factors, including operating costs, legal and regulatory requirements or constraints and our current and future competitors’ pricing and marketing strategies including increased incentives for drivers, could significantly affect our pricing strategies. Certain of our competitors offer, or may in the future offer, lower-priced or a broader range of offerings. Similarly, certain competitors may use marketing strategies that enable them to attract or retain qualified drivers and riders at a lower cost than we do. This includes the use of algorithms to set dynamic prices for riders and earnings for drivers that are dependent on various factors, such as the route, time of day, and pick-up and drop-off locations of riders. From time to time, we have made pricing changes and spent significant amounts on marketing and both rider and driver incentives, and we expect that, from time to time, we will be required, through competition, regulation or otherwise, to reduce the price of rides for riders, increase the incentives we pay to drivers on our platform or reduce the fees we charge the drivers on our platform, or to increase our marketing and other expenses to attract and retain qualified drivers and riders in response to competitive pressures. These actions may adversely affect our business and financial results and may not have the desired benefits. At times, in certain geographic markets, we have offered, and may continue to offer, driver incentives that cause the total amount of the fare that a driver retains, combined with the driver incentives a driver receives from us, to increase, at times meeting or exceeding the amount of Gross Bookings we generate for a given ride. Furthermore, the economic sensitivity of drivers and riders on our platform may vary by geographic location, and as we expand, our pricing methodologies may not enable us to compete effectively in these locations. Local regulations may affect our pricing in certain geographic locations, which could amplify these effects. For example, state and local laws and regulations regarding pricing limitations during government declared States of Emergency have imposed limits on prices for certain services, and state and local laws and regulations have imposed minimum earnings standards for drivers, which, at times, have caused us to increase prices in certain markets, including California, New York, Washington, Massachusetts and Minnesota. We have tested or launched, and expect to in the future test or launch, new pricing strategies and initiatives, such as our earnings commitment, subscription packages and driver or rider loyalty programs. We have also modified, and expect to in the future modify, existing pricing methodologies, such as our up-front pricing policy. To the extent any strategies, initiatives or modifications to our pricing methodologies lead to real or perceived harm to driver earnings, our ability to attract or retain qualified drivers may be adversely affected. Any of the foregoing actions may not ultimately be successful in attracting and retaining qualified drivers and riders or may result in loss of market share, negative public perception and harm to our reputation.

While we continue to maintain that drivers on our platform are not employees in legal and administrative proceedings, our arguments may ultimately be unsuccessful. A determination in, resolution of, or settlement of, any legal proceeding, whether we are party to such legal proceeding or not, that classifies a driver utilizing a ridesharing platform as an employee, may require us to revise

our pricing and earnings methodologies, or make other changes to our business and operations, to account for such a change to driver classification. Proposition 22 in California, HB 2076 in Washington and agreements with the New York and Massachusetts Attorneys General have enabled us to provide additional earning opportunities to drivers in those states, including guaranteed earnings. The transition has required, and will continue to require, additional costs and we expect to face other challenges as we transition drivers to these new models, including changes to our pricing. We have also tested or launched, and may in the future test or launch, certain changes to the rates, fees and payment structure for drivers on our platform, which may not ultimately be successful in attracting and retaining qualified drivers. Moreover, while the California Supreme Court rejected a constitutional challenge to Proposition 22 on July 25, 2024, other potential litigation to overturn Proposition 22, litigation over Lyft’s compliance with Proposition 22, or the reclassification of drivers on our platform as employees could reduce the available supply of drivers as drivers leave the platform due to the changes in flexibility under an employment model, or other changes we may need to make to our business and operations. While we do and will attempt to optimize ride prices and balance supply and demand in our ridesharing marketplace, our assessments may not be accurate. We have experienced in the past and may experience in the future underpricing or overpricing of our offerings due to changes we make to the technology used in our pricing. In addition, if the offerings on our platform change, then we may need to revise our pricing methodologies. As we continue to launch new and develop existing asset-intensive offerings such as our network of shared bikes and scooters and certain vehicles in our Express Drive program, factors such as maintenance, debt service, depreciation, asset life, supply chain efficiency and asset replacement may affect our pricing methodologies. In addition, we have established environmental programs that may also affect our pricing. Any such changes to our pricing methodologies or our ability to efficiently price our offerings could adversely affect our business, financial condition and results of operations.

If we are unable to efficiently grow and further develop our network of shared bikes and scooters, which may not grow as we expect or become profitable over time, and manage the related risks, our business, financial condition and results of operations could be adversely affected.

While some major cities have widely adopted bike and scooter sharing, there can be no assurance that new markets we enter will accept, or existing markets will continue to accept, bike and scooter sharing, and even if they do, that we will be able to execute on our business strategy or that our related offerings will be successful in such markets. For example, although we have exclusive rights to operate bike or scooter sharing programs in certain jurisdictions, we have faced competition in contravention of such rights and have incurred costs to defend against such challenges. A negative determination in other legal disputes regarding bike and scooter sharing, including an adverse determination regarding our existing rights to operate, could adversely affect our competitive position and results of operations. Additionally, we may from time to time be denied permits to operate, or be temporarily restricted from operating our bike share program or scooter share program in certain jurisdictions due to, among other things, public health and safety measures. While we do not expect any denial or suspension in an individual region to have a material impact, these denials or suspensions in the aggregate could adversely affect our business and results of operations. Even if we are able to successfully develop and implement our network of shared bikes and scooters, there may be heightened public skepticism of this nascent service offering. In particular, there could be negative public perception surrounding bike and scooter sharing, including the overall safety and the potential for injuries occurring as a result of accidents involving an increased number of bikes and scooters on the road, and the general safety of the bikes and scooters themselves. Such negative public perception may result from incidents on our platform or incidents involving our competitors’ offerings.

We design and contract to manufacture bikes and scooters using a limited number of external suppliers, and a continuous, stable and cost-effective supply of bikes and scooters that meets our standards is critical to our operations. We expect to continue to rely on external suppliers in the future. There can be no assurance we will be able to maintain our existing relationships with these suppliers and continue to be able to source our bikes and scooters on a stable basis, at a reasonable price or at all. We also design and contract to manufacture certain assets related to our network of shared bikes and scooters and we rely on a small number of suppliers, and in some instances a sole supplier, for components and manufacturing services. Similarly, we rely on external vendors to provide field services to our bike and scooter operations. There can be no assurance we will be able to maintain our existing relationships with these vendors. Also, from time to time we transition these services in one or more geographies from one vendor to another, and the transition process could interrupt or otherwise adversely affect our operations.

The revenue we generate from our network of shared bikes and scooters fluctuates from quarter to quarter due to, among other things, seasonal factors including weather. Our limited operating history makes it difficult for us to assess the exact nature or extent of the effects of seasonality on our network of shared bikes and scooters, however, we generally experience a decline in demand for our bike and scooter rentals over the winter season and an increase during more temperate and dry seasons. Additionally, from time to time we may re-evaluate the markets in which we operate and the performance of our network of shared bikes and scooters, and we have discontinued and may in the future discontinue operations in certain markets as a result of such evaluations. For example, in recent years, we discontinued our shared scooter and/or shared bike programs in a number of cities due to a number of factors including onerous contractual requirements, institutionalized theft, and lack of public investment. Any of the foregoing risks and challenges could adversely affect our business, financial condition and results of operations.

~~will~~Challenges berelating ~~required, through competition, regulation or otherwise,~~ to ~~reduce~~ the ~~price~~supply ofchain ~~rides~~ for ~~riders, increase the incentives we pay to drivers on~~ our ~~platform~~network orof ~~reduce~~shared ~~the~~bikes ~~fees we charge the drivers on our platform, or to increase our marketing~~ and ~~other~~scooters ~~expenses~~could ~~to attract and retain qualified drivers and riders in response to competitive pressures. These actions may~~ adversely affect our business, ~~and~~ financial ~~results~~condition and ~~may~~results ~~not have the desired benefits. At times, in certain geographic markets, we have offered, and may continue to offer, driver incentives that cause the total amount~~ of ~~the fare that a driver retains, combined with the driver incentives a driver receives from us, to increase, at times meeting or exceeding the amount of gross bookings we generate for a given ride~~operations. Furthermore, the economic sensitivity of drivers and riders on our platform may vary by geographic location, and as we expand, our pricing methodologies may not enable us to compete effectively in these locations. Local regulations may affect our pricing in certain geographic locations, which could amplify these effects. For example, state and local laws and regulations regarding pricing limitations during government declared States of Emergency have imposed limits on prices for certain services, and state and local laws and regulations have imposed minimum earnings standards for drivers, which, at times, have caused us to increase prices in certain markets, including California, New York, Washington, Massachusetts and Minnesota. We have tested or launched, and expect to in the future test or launch, new pricing strategies and initiatives, such as our earnings commitment, subscription packages and driver or rider loyalty programs. We have also modified, and expect to in the future modify, existing pricing methodologies, such as our up-front pricing policy. To the extent any strategies, initiatives or modifications to our pricing methodologies lead to real or perceived harm to driver earnings, our ability to attract or retain qualified drivers may be adversely affected. Any of the foregoing actions may not ultimately be successful in attracting and retaining qualified drivers and riders or may result in loss of market share, negative public perception and harm to our reputation.

~~While~~The wesupply ~~continue~~chain tofor ~~maintain that drivers on~~ our ~~platform~~bikes ~~are~~and ~~independent~~scooters ~~contractors~~exposes inus ~~legal~~to ~~and~~multiple ~~administrative~~potential ~~proceedings,~~sources ~~our~~of ~~arguments~~delivery ~~may~~failure ~~ultimately~~or ~~be unsuccessful~~shortages. AIn ~~determination~~the ~~in,~~event ~~resolution~~that ~~of,~~our orsupply ~~settlement~~ of, ~~any~~bikes ~~legal~~and ~~proceeding,~~scooters ~~whether~~or wekey ~~are~~components ~~party~~is tointerrupted ~~such legal proceeding~~ or ~~not,~~there ~~that~~are ~~classifies~~significant aincreases ~~driver~~in ~~utilizing~~prices, asuch ~~ridesharing platform~~ as andue ~~employee, may require us~~ to ~~revise~~actual ~~our~~or ~~pricing~~proposed ~~and~~tariff ~~earnings methodologies~~increases, ~~or make other changes to~~ our business ~~and operations~~, tofinancial ~~account~~condition ~~for such a change to driver classification. Proposition 22 in California, HB 2076 in Washington~~ and ~~agreements~~results ~~with~~of ~~the~~operations ~~New~~could ~~York~~be ~~and~~adversely ~~Massachusetts~~affected. ~~Attorneys~~Changes ~~General have enabled us to provide additional earning opportunities to drivers~~ in ~~those~~business ~~states~~conditions, ~~including~~force ~~guaranteed earnings. The transition has required~~majeure, ~~and~~any ~~will~~public ~~continue~~health tocrises ~~require, additional costs and we expect to face other challenges as we transition drivers to these new models, including changes to our pricing. We have also tested~~ or ~~launched~~pandemics, ~~and~~governmental ~~may in the future test~~ or ~~launch,~~regulatory ~~certain~~ changes ~~to the rates, fees~~ and ~~payment~~other ~~structure~~factors ~~for~~beyond ~~drivers on~~ our ~~platform,~~control ~~which~~have ~~may~~affected ~~not ultimately be successful in attracting~~ and retaining qualified drivers. Moreover, while the California Supreme Court rejected a constitutional challenge to Proposition 22 on July 25, 2024, other potential litigation to overturn Proposition 22, litigation over Lyft’s compliance with Proposition 22, or the reclassification of drivers on our platform as employees could ~~reduce~~continue ~~the available supply of drivers as drivers leave the platform due~~ to ~~the~~affect ~~changes in flexibility under an employment model, or other changes we may need to make to~~ our ~~business~~suppliers’ ~~and~~ability ~~operations. While we do and will attempt~~ to ~~optimize~~deliver ~~ride~~products ~~prices~~ and ~~balance supply and demand in~~ our ~~ridesharing~~ability ~~marketplace, our assessments may not be accurate. We have experienced in the past and may experience in the future underpricing or overpricing of our offerings due~~ to ~~changes~~deploy weproducts ~~make~~ to the ~~technology used in our pricing. In addition~~market, if the offerings on our platform change, then we may need to revise our pricing methodologies. As we continue to launch new and develop existing asset-intensive offerings such as our network of Light Vehicles and certain vehicles in our Express Drive program, factors such as maintenance, debt service, depreciation, asset life, supply chain efficiency and asset replacement may affect our pricing methodologies. In addition, we have established environmental programs that may also affect our pricing. Any such changes to our pricing methodologies or ~~our~~deliver ~~ability~~products to ~~efficiently~~third ~~price our offerings could adversely affect our business~~parties, ~~financial~~on ~~condition~~a ~~and~~timely ~~results of operations~~basis.

IfWe weincur ~~are~~significant ~~unable~~costs related to ~~efficiently~~the ~~grow~~design, purchase, sourcing and ~~further~~operations ~~develop~~of our network of ~~Light~~shared ~~Vehicles,~~bikes ~~which~~and scooters and we expect to continue incurring such costs. The prices and availability of bikes and scooters and related products may ~~not~~fluctuate ~~grow~~depending ason wefactors ~~expect~~beyond orour ~~become~~control ~~profitable~~including ~~over~~market ~~time~~and economic conditions, tariffs, changes to import or export regulations and ~~manage~~demand. Substantial increases in prices of these assets or the ~~related~~cost ~~risks~~of our operations would increase our costs and reduce our margins, which could adversely affect our business, financial condition and results of operations. Further, customs authorities may challenge or disagree with our classification, valuation or country of origin determinations of our imports. Such challenges could beresult ~~adversely~~in ~~affected~~tariff liabilities, including tariffs on past imports, as well as penalties and interest. Although we have reserved for potential payments of possible tariff liabilities in our consolidated financial statements, if these liabilities exceed such reserves, our financial condition could be harmed.

~~While~~Our ~~some~~bikes ~~major cities have widely adopted bike~~ and ~~scooter~~scooters ~~sharing, there can be no assurance that new markets we enter will accept,~~ or ~~existing~~components ~~markets will continue to accept~~thereof, ~~bike~~including bikes and ~~scooter~~scooters ~~sharing,~~ and ~~even~~components ~~if they do,~~ that we ~~will~~design beand ~~able~~contract to ~~execute~~manufacture onusing ~~our~~third-party ~~business strategy or that our related offerings will be successful in such markets. For example~~suppliers, ~~although we~~ have ~~exclusive~~experienced ~~rights to operate bike or scooter sharing programs in certain jurisdictions, we have faced competition in contravention of such rights~~ and ~~have~~may ~~incurred costs to defend against such challenges. A negative determination~~ in ~~other~~the ~~legal~~future ~~disputes~~experience ~~regarding~~quality ~~bike and scooter sharing~~problems, ~~including~~product anissues ~~adverse~~or ~~determination~~acts ~~regarding our existing rights to operate, could adversely affect our competitive position and results~~ of ~~operations.~~vandalism ~~Additionally,~~or wetheft ~~may~~ from time to time, bewhich ~~denied~~could ~~permits~~result toin ~~operate,~~decreased orusage beof ~~temporarily~~our ~~restricted~~network ~~from~~of ~~operating~~shared ~~due~~bikes toand ~~public~~scooters ~~health~~or ~~and~~loss ~~safety~~of ~~measures,~~ our ~~bike~~bikes ~~share program~~ or ~~scooter~~scooters. ~~share~~There ~~program~~can inbe ~~certain~~no ~~jurisdictions.~~assurance ~~While~~ we dowill ~~not~~be ~~expect~~able ~~any~~to ~~denial~~detect orand ~~suspension~~fix inall anproduct ~~individual region to have a material impact~~issues, ~~these~~vandalism ~~denials~~ or ~~suspensions~~theft inof ~~the aggregate could adversely affect~~ our ~~business~~bikes and ~~results of operations~~scooters. ~~Even~~Failure ~~if we are able~~ to ~~successfully~~do ~~develop~~so ~~and~~could ~~implement~~result ~~our~~in ~~network~~lost ~~of Light Vehicles~~revenue, ~~there~~litigation ~~may~~or beregulatory ~~heightened public skepticism of this nascent service offering. In particular~~challenges, ~~there could be negative public perception surrounding bike and scooter sharing,~~ including ~~the~~personal ~~overall~~injury ~~safety~~or ~~and~~products ~~the~~liability ~~potential for injuries occurring as a result of accidents involving an increased number of bikes and scooters on the road~~claims, and ~~the~~harm ~~general~~to ~~safety of the bikes and scooters themselves. Such negative public perception may result from incidents on~~ our ~~platform or incidents involving our competitors’ offerings~~reputation.

21If we are unable to efficiently develop, enable, or implement partnerships with other companies to offer AV technologies on our platform in a timely manner, our business, financial condition and results of operations could be adversely affected.

We ~~design~~have invested, and ~~contract~~plan to ~~manufacture~~continue ~~bikes~~to invest, in the development of AV-related technology for use on our platform. We currently partner and ~~scooters~~have ~~using~~partnered ain ~~limited~~the ~~number~~past ofwith ~~external~~several ~~suppliers~~companies to develop AV technology and offerings, and to make AV technology and offerings available on our platform. Autonomous driving is a ~~continuous~~new and evolving market, ~~stable~~which makes it difficult to predict its acceptance, its growth, and ~~cost-effective~~the ~~supply~~magnitude and timing of ~~bikes~~necessary investments and ~~scooters~~other ~~that~~trends, ~~meets~~including ~~our~~when ~~standards~~it ismay ~~critical~~be tomore ~~our~~broadly ~~operations~~or commercially available. WeOur ~~expect~~initiatives tomay ~~continue~~not toperform ~~rely~~as expected, which would reduce the return on ~~external~~our ~~suppliers~~investments in ~~the~~this area and our current or future partners may decide to terminate or scale back their partnerships with us. ~~There~~For ~~can~~example, bein nothe ~~assurance~~past we ~~will~~have beincurred ~~able~~impairment tocharges ~~maintain~~in connection with the wind-down of an AV partner. Following the sale of our ~~existing~~Level ~~relationships~~5 ~~with~~self-driving ~~these~~vehicle ~~suppliers~~division in 2021, we no longer develop our own AV technology, so we must develop and ~~continue~~maintain topartnerships bewith ~~able~~other companies to ~~source~~offer AV technology on our ~~bikes~~platform, and ~~scooters~~if onwe aare ~~stable~~unable ~~basis~~to do so, or if we do so at a ~~reasonable~~slower ~~price~~pace or at ~~all.~~a Wehigher ~~also~~cost ~~design~~or ~~and~~if ~~contract~~our totechnology ~~manufacture~~is ~~certain~~less ~~assets~~capable ~~related~~relative to our ~~network~~competitors, ofor ~~Light~~if ~~Vehicles~~our ~~and~~strategy wewith ~~rely~~regard onto aAV ~~small~~technology ~~number~~development ofis ~~suppliers~~not successful, ~~and~~our inbusiness, ~~some~~financial ~~instances~~condition aand ~~sole~~results ~~supplier,~~of ~~for~~operations ~~components~~could ~~and~~be ~~manufacturing~~adversely ~~services~~affected. ~~Similarly~~Likewise, even if we ~~rely~~successfully onengage ~~external~~with ~~vendors~~AV totechnology ~~provide~~partners, ~~field~~if ~~services~~our current or future AV technology partners are delayed or prevented from developing AV technology, for example, due to regulatory scrutiny or a decrease in available capital, our ~~bike~~business, financial condition and ~~scooter~~results of operations could be adversely affected. ~~There~~Further, ~~can~~the beecosystem noof ~~assurance~~AV wedevelopment ~~will~~is becomplex ~~able~~and tocertain ~~maintain~~of our ~~existing~~partners ~~relationships~~are ~~with~~also ~~these~~our ~~vendors~~competitors. ~~Also,~~Some ~~from~~of ~~time~~these topartners ~~time~~also wepartner ~~transition~~with our other competitors. Accordingly, these ~~services~~partnerships and relationships may not result in ~~one~~the orintended ~~more~~benefits ~~geographies~~or ~~from~~return ~~one~~on ~~vendor~~investment towe ~~another~~expect, and ~~the~~our ~~transition~~business, ~~process~~financial ~~could~~condition ~~interrupt~~and orresults ~~otherwise~~of ~~adversely~~operations ~~affect~~could ~~our~~be ~~operations~~adversely affected.

The ~~revenue~~AV weindustry ~~generate~~may ~~from~~not ~~our~~continue ~~network of Light Vehicles fluctuates from quarter~~ to ~~quarter due to~~develop, ~~among other things, seasonal factors including weather. Our limited operating history makes it difficult for us to assess the exact nature~~ or ~~extent~~AVs ofmay ~~the~~not ~~effects~~be ofadopted ~~seasonality~~by ~~on our network of Light Vehicles, however, we generally experience a decline in demand for our bike and scooter rentals over~~ the ~~winter season and an increase during more temperate and dry seasons. Additionally~~market, ~~from time to time we may re-evaluate the markets in~~ which we operate and the performance of our network of Light Vehicles, and we have discontinued and may in the future discontinue operations in certain markets as a result of such evaluations. For example, in recent years, we discontinued our shared scooter and/or shared bike programs in San Diego, Los Angeles, Minneapolis, Washington, D.C. and Denver due to a number of factors including onerous contractual requirements, institutionalized theft, and lack of public investment. Any of the foregoing risks and challenges could adversely affect our prospects, business, financial condition and results of operations.

~~Challenges~~Autonomous ~~relating~~driving toinvolves a complex set of technologies, including the ~~supply~~continued ~~chain~~development ~~for~~of ~~our~~sensing, ~~Light~~computing ~~Vehicles~~and ~~could~~control ~~adversely~~technology. ~~affect~~We ~~our~~have ~~business~~relied on building strategic partnerships with third-party developers of such technologies, ~~financial~~as ~~condition~~such technologies are costly and ~~results~~in varying stages of ~~operations~~maturity. There is no assurance that these current or future partnerships will result in the development of market-viable technologies or commercial success in a timely manner or at all. In order to gain acceptance, the reliability of AV technology must continue to advance.

~~The~~Additional ~~supply~~challenges ~~chain for our bikes and scooters exposes us~~ to ~~multiple~~the ~~potential~~development ~~sources of delivery failure or shortages~~ and ~~our~~deployment ~~acquisition~~ of ~~PBSC,~~AV ~~a producer and seller of bikeshare equipment and software~~technology, ~~has~~all ~~increased that exposure. In the event that our supply~~ of ~~bikes~~which ~~and scooters or key components is interrupted or there~~ are ~~significant~~outside ~~increases in prices, our business, financial condition and results~~ of ~~operations could be adversely affected. Changes in business conditions, force majeure, any public health crises or pandemics, governmental or regulatory changes and other factors beyond~~ our control ~~have affected and could continue to affect our suppliers’ ability to deliver products and our ability to deploy products to the market~~, ~~or deliver products to third parties, on a timely basis.~~include:

We incur significant costs related to the design, purchase, sourcing and operations of our network of Light Vehicles and we expect to continue incurring such costs as we operate our network of Light Vehicles. The prices and availability of bikes and scooters and related products may fluctuate depending on factors beyond our control including •market ~~and~~acceptance ~~economic conditions, tariffs, changes to import or export regulations and demand. Substantial increases in prices~~ of these assets or the cost of our operations would increase our costs and reduce our margins, which could adversely affect our business, financial condition and results of operations. Further, customs authorities may challenge or disagree with our classification, valuation or country of origin determinations of our imports. Such challenges could result in tariff liabilities, including tariffs on past imports, as well as penalties and interest. Although we have reserved for potential payments of possible tariff liabilities in our financial statements, if these liabilities exceed such reserves, our financial condition could be harmed. AVs;

Our bikes and scooters or components thereof, including bikes and scooters and components that we design and contract to manufacture using third-party suppliers, have experienced and may in the future experience quality problems, product issues or acts of vandalism or theft from time to time, which could result in decreased usage of our network of Light Vehicles or loss of our bikes or scooters. There can be no assurance we will be able to detect and fix all product issues, vandalism or theft of our Light Vehicles. Failure to do so could result in lost revenue, litigation or regulatory challenges, including personal injury or products liability claims, and harm to our reputation.

If we are unable to efficiently develop, enable, or implement partnerships with other companies to offer autonomous vehicle technologies on our platforms in a timely manner, our business, financial condition and results of operations could be adversely affected.

We currently partner and have partnered in the past with several companies to develop autonomous vehicle technology and offerings. Autonomous driving is a new and evolving market, which makes it difficult to predict its acceptance, its growth, and the magnitude and timing of necessary investments and other trends, including when it may be more broadly or commercially available. Our initiatives may not perform as expected, which would reduce the return on our investments in this area and our current or future partners may decide to terminate or scale back their partnerships with us. For example, in October 2022, one of our autonomous vehicle partners announced its wind-down, and as a result we incurred a total impairment charge of $135.7 million consisting of impairments of our non-marketable equity investment in such company and other assets. Following the sale of our Level 5 self-driving vehicle division in 2021, we no longer develop our own autonomous vehicle technology, so we must develop and maintain partnerships with other companies to offer autonomous vehicle technology on our platforms, and if we are unable to do so, or if we do so at a slower pace or at a higher cost or if our technology is less capable relative to our competitors, or if our efforts to optimize our strategy with regard to our autonomous vehicle technology development are not successful, our business, financial condition and

results of operations could be adversely affected. Likewise, if our current or future autonomous vehicle technology partners are delayed or prevented from developing autonomous vehicle technology, our business, financial condition and results of operations could be adversely affected. For example, a general decrease in available capital, as well as an increase in regulatory scrutiny could delay or prevent the development of autonomous vehicle technology by our partners.

The autonomous vehicle industry may not continue to develop, or autonomous vehicles may not be adopted by the market, which could adversely affect our prospects, business, financial condition and results of operations.

We have invested, and plan to continue to invest, in the development of autonomous vehicle-related technology for use on our platform. Autonomous driving involves a complex set of technologies, including the continued development of sensing, computing and control technology. We have relied on building strategic partnerships with third-party developers of such technologies, as such technologies are costly and in varying stages of maturity. There is no assurance that these current or future partnerships will result in the development of market-viable technologies or commercial success in a timely manner or at all. In order to gain acceptance, the reliability of autonomous vehicle technology must continue to advance.

Additional challenges to the development and deployment of autonomous vehicle technology, all of which are outside of our control, include:

•market acceptance of autonomous vehicles;

•state, federal or municipal licensing requirements, safety standards, and other regulatory measures;

•necessary changes to infrastructure to enable adoption;

•concerns regarding electronic security and privacy;

~~•levels of investment by developers of autonomous vehicle technology; and~~21

•~~public~~levels ~~perception~~of ~~regarding~~investment ~~the~~by ~~safety~~developers of ~~autonomous~~AV ~~vehicles~~technology; ~~for drivers, riders, pedestrians~~ and ~~other vehicles on the road.~~

There are a number of existing laws, regulations and standards that may apply to autonomous vehicle technology, including vehicle standards that were not originally intended to apply to vehicles that may not have a human driver. Such regulations continue to rapidly evolve, which may increase the likelihood of complex, conflicting or otherwise inconsistent regulations, which may delay our ability to bring autonomous vehicle technology to market or significantly increase the compliance costs associated with this business strategy. In addition, there can be no assurance that the market will accept autonomous vehicles or the timing of such acceptance, if at all, and even if it does, that we will be able to execute on our business strategy or that our offerings will be successful in the market. Even if autonomous vehicle technology is successfully developed and implemented, there may be heightened •public ~~skepticism of this nascent technology and its adopters. In particular, there could be negative public~~ perception ~~surrounding~~regarding ~~autonomous vehicles, including~~ the ~~overall~~ safety ~~and~~of ~~the~~AVs ~~potential~~ for ~~injuries or death occurring as a result of accidents involving autonomous vehicles and the potential loss of income to human~~ drivers ~~resulting from widespread market adoption of autonomous vehicles. Such negative public perception may result from incidents on our platform~~, ~~incidents on our partners’ or competitors’ platforms~~riders, orpedestrians ~~events~~and ~~around~~other ~~autonomous~~ vehicles ~~more~~on ~~generally. Any of~~ the ~~foregoing risks and challenges could adversely affect our prospects, business, financial condition and results of operations~~road.

There are a number of existing laws, regulations and standards that may apply to AV technology, including vehicle standards that were not originally intended to apply to vehicles that may not have a human driver. Such regulations continue to rapidly evolve, which may increase the likelihood of complex, conflicting or otherwise inconsistent regulations, which may delay our ability to bring AV technology to market or significantly increase the compliance costs associated with this business strategy. In addition, there can be no assurance that the market will accept AVs or the timing of such acceptance, if at all, and even if it does, that we will be able to execute on our business strategy or that our strategy and offerings will be successful in the market. Even if AV technology is successfully developed and implemented, there may be heightened public skepticism of this nascent technology and its adopters. In particular, there could be negative public perception surrounding AVs, including the overall safety and the potential for injuries or death occurring as a result of accidents involving AVs and the potential loss of income to human drivers resulting from widespread market adoption of AVs. Such negative public perception may result from incidents on our platform, incidents on our partners’ or competitors’ platforms, or events around AVs more generally. Any of the foregoing risks and challenges could adversely affect our prospects, business, financial condition and results of operations.

Claims from riders, drivers or third parties that allege harm, whether or not our platform is in use, adversely affect our business, brand, financial condition and results of operations.

We are regularly subject to claims, lawsuits, investigations and other legal proceedings relating to injuries to, or deaths of, riders, drivers or third-parties. We are also subject to claims alleging that we are directly or vicariously liable for the acts of the drivers on our platform or for harm related to the actions of drivers, riders, or third parties, or the management and safety of our platform and our assets, including harm caused by criminal activity. We are also subject to personal injury claims whether or not such injury actually occurred as a result of activity on our platform. For example, platform users and third parties have in the past asserted legal claims against us in connection with personal injuries related to the actions of a driver or rider who may have previously utilized our platform, but was not at the time of such injury. We have incurred expenses to settle personal injury claims, which we sometimes choose to settle for reasons including expediency, protection of our reputation and to prevent the uncertainty of litigating, and we expect that such expenses will continue to increase as our business grows and we face increasing public scrutiny. Regardless of the outcome of any legal proceeding, any injuries to, or deaths of, any riders, drivers or third parties could result in negative publicity and harm to our brand, reputation, business, financial condition and results of operations. Our insurance policies and programs may not provide sufficient coverage to adequately mitigate the potential liability we face, especially where any one incident, or a group of incidents, could cause disproportionate harm, and we may have to pay high premiums or deductibles for our coverage and, for certain situations and/or categories of claims, we may not be able to secure coverage at all.

As we operate our network of ~~Light~~shared ~~Vehicles~~bikes and scooters, we are subject to ~~an increasing number of~~ claims, lawsuits, investigations or other legal proceedings related to injuries to, or deaths of, riders of our ~~Light~~shared ~~Vehicles~~bikes and scooters, including potential indemnification claims. In some cases, we could be required to indemnify governmental entities or operating partners for claims arising out of issues, including issues that may be outside of our control, such as the condition of the public right of way. Any such claims arising from the use of our network of shared bikes and scooters, regardless of merit or outcome, could lead to negative publicity, harm to our reputation and brand, significant legal, regulatory or financial exposure or decreased use of our network of shared bikes and scooters. Further, the bikes and scooters we design and contract to manufacture using third-party suppliers and manufacturers, including certain assets and components we design and have manufactured for us, have in the past contained and could in the future contain design or manufacturing product issues, which could also lead to injuries or death to riders. There can be no assurance we will be able to detect, prevent, or fix all product issues, and failure to do so could harm our reputation and brand or result in personal injury or products liability claims or regulatory proceedings. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

23Our shared bikes and scooters have experienced product issues from time to time, which has in the past resulted in, and, in the future may result in, product recalls and removal from service, injuries, litigation, enforcement actions and regulatory proceedings, and could adversely affect our business, brand, financial condition and results of operations.

~~issues~~We ~~that~~design, ~~may~~contract beto ~~outside~~design ofand ~~our~~manufacture, ~~control~~sell, ~~such~~and asdirectly ~~the~~and ~~condition~~indirectly ofmodify, ~~the~~maintain ~~public~~and ~~right~~repair ofbikes ~~way.~~and ~~Any~~scooters ~~such~~for ~~claims~~our ~~arising~~network ~~from~~of ~~the~~shared ~~use~~bikes ofand ~~our~~scooters. ~~Light~~Such ~~Vehicles,~~bikes ~~regardless~~and ofscooters ~~merit~~have orin ~~outcome~~the past contained, ~~could~~and, ~~lead~~in tothe ~~negative~~future ~~publicity~~may contain, ~~harm~~product toissues ~~our~~related ~~reputation~~to ~~and~~their ~~brand~~design, ~~significant~~materials ~~legal~~or construction, ~~regulatory~~may orbe ~~financial~~improperly ~~exposure~~maintained or ~~decreased~~repaired ~~use~~or ofmay ~~our~~be ~~Light~~subject ~~Vehicles~~to vandalism. ~~Further,~~These ~~the~~product ~~bikes~~issues, ~~and~~improper ~~scooters~~maintenance weor ~~design~~repair ~~and~~or ~~contract~~vandalism tohave ~~manufacture~~in ~~using~~the ~~third-party~~past ~~suppliers~~unexpectedly interfered, and ~~manufacturers,~~could ~~including~~in ~~certain~~the ~~assets~~future ~~and~~unexpectedly ~~components~~interfere, wewith ~~design~~the ~~and~~intended ~~have~~operations ~~manufactured~~of ~~for~~the ~~us,~~bikes ~~have~~or inscooters, ~~the~~and ~~past~~have ~~contained~~resulted, and could in the future ~~contain~~result, ~~design~~in orother ~~manufacturing~~safety ~~product issues~~concerns, ~~which~~including ~~could~~alleged ~~also~~injuries ~~lead~~ to ~~injuries~~riders or ~~death~~third ~~to riders~~parties. ~~There~~Although ~~can be no assurance~~ we ~~will be able to detect~~, ~~prevent,~~our orcontract ~~fix all product issues~~manufacturers, and ~~failure~~our tothird-party doservice soproviders ~~could~~test ~~harm~~ our ~~reputation~~bikes and ~~brand~~scooters orbefore ~~result~~they inare ~~personal~~deployed ~~injury~~onto orour ~~products~~network ~~liability claims~~ or ~~regulatory~~sold, ~~proceedings.~~there ~~Any~~can ofbe ~~the~~no ~~foregoing~~assurance ~~risks~~we ~~could~~will ~~adversely~~be ~~affect~~able ~~our~~to ~~business,~~detect ~~financial~~or ~~condition~~prevent ~~and~~all ~~results~~product ~~of operations~~issues.

~~Our~~Failure ~~Light~~to ~~Vehicles~~detect, ~~have~~prevent, ~~experienced~~fix ~~product~~or ~~issues~~timely ~~from~~report ~~time~~real toor ~~time~~perceived product issues and vandalism, ~~which~~or ~~has~~to inproperly ~~the~~maintain ~~past~~or ~~resulted~~repair ~~in,~~our bikes and, inscooters ~~the~~has ~~future~~resulted or may result in, a variety of consequences including product recalls and removal from service, service interruptions, alleged injuries, litigation, enforcement actions ~~and regulatory proceedings~~, ~~and~~including ~~could~~fines ~~adversely~~or ~~affect~~penalties, ~~our~~regulatory ~~business~~proceedings, ~~brand, financial condition~~ and ~~results of operations.~~

We design, contract to design and manufacture, sell, and directly and indirectly modify, maintain and repair bikes and scooters for our network of Light Vehicles. Such bikes and scooters have in the past contained, and, in the future may contain, product issues related to their design, materials or construction, may be improperly maintained or repaired or may be subject to vandalism. These product issues, improper maintenance or repair or vandalism have in the past unexpectedly interfered, and could in the future unexpectedly interfere, with the intended operations of the bikes or scooters, and have resulted, and could in the future result, in other safety concerns, including alleged injuries to riders or third parties. Although we, our contract manufacturers, and our third-party service providers test our bikes and scooters before they are deployed onto our network or sold, there can be no assurance we will be able to detect or prevent all product issues.22

Failure to detect, prevent, fix or timely report real or perceived product issues and vandalism, or to properly maintain or repair our bikes and scooters has resulted or may result in a variety of consequences including product recalls and removal from service, service interruptions, alleged injuries, litigation, enforcement actions, including fines or penalties, regulatory proceedings, and negative publicity. Even if injuries to riders or third parties are not the result of any product issues in, vandalism of, or the failure to properly maintain or repair our bikes or scooters, we may incur expenses to defend or settle any claims or respond to regulatory inquiries, and our brand and reputation may be harmed. Any of the foregoing risks could also result in decreased usage of our network of ~~Light~~shared ~~Vehicles~~bikes and scooters and adversely affect our business, brand, financial conditions and results of operations.

If we fail to effectively manage our growth, our business, financial condition and results of operations could be adversely affected.

We expect to continue to grow our business, infrastructure and operations over time. Growth has placed, and may continue to place, significant demands on our management and our operational and financial infrastructure. From time to time we have undertaken restructuring actions to better align our financial model and our business. For example, we have from time to time implemented reductions in force to reduce operating expenses and adjust cash flows in light of ongoing economic challenges. We may need to take additional restructuring actions in the future to align our business with the market. Steps we take to manage our business operations, including workplace policies for employees, and to align our operations with our strategies for future growth may adversely affect our reputation and brand, our ability to recruit, retain and motivate highly skilled personnel.

Our ability to manage our growth and business operations effectively and to integrate new employees, technologies and acquisitions into our existing business will require us to continue to expand our operational and financial infrastructure and to continue to retain, attract, train, motivate and manage employees. Continued growth could strain our ability to develop and improve our operational, financial and management controls, enhance our reporting systems and procedures, recruit, train and retain highly skilled personnel and maintain user satisfaction. Additionally, if we do not effectively manage the growth of our business and operations, the quality of our offerings could suffer, which could negatively affect our reputation and brand, business, financial condition and results of operations.

Any actual or perceived security or privacy breach or incident could interrupt our operations, harm our brand and adversely affect our reputation, brand, business, financial condition and results of operations.

Our business involves the collection, storage, transmission and other processing of our users’ personal data and other sensitive data. Additionally, we maintain other confidential, proprietary, or otherwise sensitive information relating to our business, including intellectual property, and similar information we receive from third parties. Unauthorized parties have in the past gained access, and may in the future gain access, to systems or facilities we maintain or use in our business through various means, including gaining unauthorized access into our systems or facilities or those of our service providers, partners or users on our platform, or attempting to fraudulently induce our employees, service providers, partners, users or others into disclosing rider names, passwords, payment card information or other sensitive information, which may in turn be used to access our information technology systems, or attempting to fraudulently induce our employees, partners, customers, users or others into manipulating payment information, resulting in the fraudulent transfer of funds to criminal actors. In addition, users on our platform could have vulnerabilities on their own devices that are entirely unrelated to our systems and platform, but could mistakenly attribute their own vulnerabilities to us. Further, breaches or incidents experienced by other companies may ~~also~~ be leveraged against us. For example, credential stuffing attacks are common and sophisticated actors can mask their attacks, making them difficult to identify and prevent. Certain efforts may be state-sponsored or supported by significant financial and technological resources, making them ~~even~~ more difficult to detect.

24Although we have developed systems and processes designed to protect our users’ data and prevent breaches and incidents, these measures cannot guarantee total security or prevent incidents from impacting our platform. Our information technology and infrastructure are subject to cyberattacks, breaches and incidents, including ransomware or other malware, which have resulted in and may result in interruptions to our operations or unavailability of our platform. Further, unauthorized parties or authorized third parties may be able to access our users’ personal information and payment card data that are accessible through those systems. Additionally, as we expand our operations, including licensing or sharing data with third parties and acquiring or partnering with other companies, we increasingly have employees or third-party relationships in jurisdictions outside the U.S., or expand work-from-home practices of our employees, our exposure to cyberattacks, breaches and incidents may increase. As a result of conflicts such as the war in Ukraine, there may be a heightened risk of potential cyberattacks by state actors or others. Further, employee and service provider error, malfeasance or other vulnerabilities, bugs or errors in the storage, use or transmission of personal information could result in an actual or perceived breach or incident. In the past, there have been allegations regarding violations of our policies restricting access to personal information we store, and we may be subject to these types of allegations in the future. Our service providers also face various security threats, and we and our third-party service providers may not have the resources or technical sophistication to anticipate, prevent, respond to, or mitigate cyberattacks or security breaches or incidents, and we or they may face difficulties or delays in identifying and responding to cyberattacks, breaches and incidents.

~~Although~~Any weactual ~~have~~or ~~developed~~perceived ~~systems~~breach ~~and~~or ~~processes~~incident ~~that~~affecting ~~are~~us ~~designed~~or toother ~~protect~~parties ~~our~~with ~~users’~~which ~~data~~we ~~and~~share ~~prevent~~data ~~breaches~~or ~~and~~that ~~incidents,~~are ~~these~~processing ~~measures~~data ~~cannot~~on ~~guarantee~~our ~~total~~behalf ~~security~~could orinterrupt ~~prevent~~our ~~incidents~~operations, ~~from~~result ~~impacting~~in our platform. ~~Our~~being ~~information~~unavailable ~~technology~~or ~~and~~otherwise ~~infrastructure~~disrupted, ~~are~~result ~~subject~~in ~~to cyberattacks~~loss, ~~breaches and incidents~~alteration, ~~including~~unavailability ~~ransomware~~ or ~~other~~unauthorized ~~malware~~use, ~~which~~disclosure ~~have~~or ~~resulted~~other inprocessing ~~and~~of ~~may~~data, result in ~~interruptions~~fraudulent totransfer ~~our~~of ~~operations~~funds, orharm ~~unavailability of~~ our ~~platform.~~reputation ~~Further~~and brand, ~~unauthorized~~damage ~~parties~~our orrelationships ~~authorized~~with third-party ~~parties~~partners, ~~may~~result bein ~~able~~regulatory toinvestigations ~~access our users’ personal information~~ and ~~payment~~other ~~card~~proceedings, ~~data~~private ~~that are accessible through those systems. Additionally~~claims, ~~as we expand our operations~~demands, ~~including~~litigation ~~licensing or sharing data with third parties~~ and ~~acquiring or partnering with~~ other ~~companies~~proceedings, ~~have~~loss ~~employees~~of orour ~~third-party~~ability ~~relationships~~to inaccept ~~jurisdictions~~credit ~~outside~~or ~~the~~debit ~~United~~card ~~States~~payments, orincreased ~~expand~~card ~~work-from-home~~processing ~~practices of our employees~~fees, ~~our~~and ~~exposure~~other tosignificant ~~cyberattacks~~legal, ~~breaches~~regulatory and ~~incidents~~financial ~~may~~exposure ~~increase.~~and Aslead ato ~~result~~loss of ~~conflicts~~driver ~~such~~or asrider ~~the~~confidence ~~war~~ in ~~Ukraine~~, ~~there~~or ~~may~~decreased beuse ~~a heightened risk~~ of ~~potential cyberattacks by state actors or others. Further~~, ~~employee~~our ~~and service provider error~~platform, ~~malfeasance~~any orof ~~other~~which ~~vulnerabilities,~~could ~~bugs~~adversely oraffect ~~errors~~our ~~in the storage~~business, ~~use~~financial orcondition ~~transmission~~and results of ~~personal~~operations. ~~information~~In ~~could~~addition, ~~result~~any ~~in an~~ actual or perceived compromise, breach or incident. Inimpacting ~~the past~~AVs, ~~there~~whether ~~have~~through ~~been~~our ~~allegations~~platform ~~regarding~~or ~~violations of~~ our ~~policies~~competitors’, ~~restricting~~could ~~access~~result toin ~~personal information we store~~legal, regulatory and wefinancial ~~may~~exposure beand ~~subject~~lead to ~~these~~loss ~~types~~ of ~~allegations~~rider confidence in ~~the~~our ~~future.~~platform, ~~Our~~which ~~service~~could ~~providers~~significantly ~~also~~undermine ~~face~~our ~~various~~business. ~~security threats~~Further, ~~and~~any wecyberattacks ~~and~~directed ~~our third-party service providers may not have the resources or technical sophistication to anticipate~~toward, ~~prevent, respond to,~~ or ~~mitigate cyberattacks or security~~ breaches or incidents impacting, ~~and~~our wecompetitors orcould ~~they~~reduce ~~may~~confidence ~~face~~in ~~difficulties~~the orridesharing ~~delays~~industry inas ~~identifying~~a whole and, ~~responding~~as toa ~~cyberattacks~~result, ~~breaches~~reduce ~~and~~confidence ~~incidents~~in us.

~~Any~~We ~~actual~~incur orsignificant ~~perceived~~costs ~~breach~~in oran ~~incident~~effort ~~affecting~~to usdetect orand ~~other~~prevent ~~parties~~security ~~with~~breaches ~~which~~and weother ~~share~~security-related ~~data~~incidents orand ~~that~~we ~~are~~expect ~~processing data on~~ our ~~behalf~~costs ~~could~~will ~~interrupt~~increase ~~our~~as ~~operations,~~we ~~result~~continue into ~~our~~implement ~~platform~~systems ~~being~~and ~~unavailable~~processes ordesigned ~~otherwise~~to ~~disrupted,~~prevent ~~result~~and inaddress ~~loss,~~security ~~alteration,~~breaches ~~unavailability~~and orincidents. ~~unauthorized~~In ~~use,~~the ~~disclosure~~event ~~or other processing~~ of ~~data,~~a ~~result~~future inbreach ~~fraudulent~~or ~~transfer of funds~~incident, ~~harm~~we ~~our~~could ~~reputation~~be ~~and~~required ~~brand,~~to ~~damage~~expend ~~our~~additional ~~relationships~~significant ~~with~~capital ~~third-party partners, result in regulatory investigations~~ and other ~~proceedings,~~resources ~~private~~in ~~claims,~~an ~~demands,~~effort ~~litigation and other proceedings, loss of our ability~~ to ~~accept~~respond ~~credit or debit card payments, increased card processing fees, and other significant legal, regulatory and financial exposure and lead~~ to ~~loss of driver~~ or ~~rider~~prevent ~~confidence~~further ~~in,~~breaches or ~~decreased use of~~incidents, ~~our platform, any of~~ which ~~could~~may ~~adversely~~require ~~affect~~us ~~our~~to ~~business,~~divert ~~financial~~substantial ~~condition and results of operations~~resources. ~~In addition~~Moreover, ~~any~~we ~~actual~~could orbe ~~perceived~~required ~~compromise, breach~~ or ~~incident~~otherwise ~~impacting~~find ~~autonomous~~it ~~vehicles,~~appropriate ~~whether~~to ~~through~~expend ~~our~~significant ~~platform~~capital ~~or our competitors’, could result in legal, regulatory~~ and ~~financial~~other ~~exposure~~resources ~~and lead~~ to ~~loss~~respond ~~of rider confidence in our platform~~to, ~~which~~notify ~~could~~third ~~significantly~~parties ~~undermine our business. Further~~of, ~~any~~and ~~cyberattacks~~otherwise ~~directed~~address ~~toward,~~the orbreach ~~breaches~~ or ~~incidents~~incident ~~impacting, our competitors could reduce confidence in the ridesharing industry as a whole~~ and, asits aroot ~~result, reduce confidence in us~~cause.

WeAdditionally, ~~incur~~defending ~~significant~~against ~~costs~~claims inor anlitigation ~~effort~~based toon ~~detect~~any ~~and~~actual ~~prevent~~or ~~security~~perceived ~~breaches~~privacy ~~and~~or ~~other~~ security~~-related~~ ~~incidents~~breach ~~and~~or weincident, ~~expect~~regardless ~~our~~of ~~costs~~their ~~will~~merit, ~~increase~~could asbe wecostly ~~continue to implement systems~~ and ~~processes~~divert ~~designed~~management’s toattention. ~~prevent~~We ~~and~~cannot ~~otherwise~~be ~~address~~certain ~~security~~that ~~breaches~~our ~~and~~insurance ~~incidents.~~coverage Inwill ~~the~~be ~~event~~adequate offor asuch ~~future~~liabilities, ~~breach~~that orinsurance ~~incident,~~will wecontinue ~~could~~to be ~~required~~available to ~~expend~~us ~~additional~~on ~~significant~~commercially ~~capital~~reasonable ~~and~~terms, ~~other~~or ~~resources~~at inall, ~~an effort to respond to~~ or ~~prevent~~that ~~further~~any ~~breaches~~insurer orwill ~~incidents,~~not ~~which~~deny ~~may~~coverage ~~require~~as us to ~~divert~~any ~~substantial~~future ~~resources~~claim. ~~Moreover,~~The wesuccessful ~~could~~assertion beof ~~required~~one or ~~otherwise~~more ~~find~~large itclaims ~~appropriate~~against tous ~~expend~~that ~~significant~~exceed ~~capital~~available ~~and~~insurance ~~other resources to respond to~~coverage, ~~notify~~or ~~third~~the ~~parties~~occurrence of, ~~and~~changes ~~otherwise~~in ~~address~~our ~~the~~insurance ~~breach~~policies, orincluding ~~incident~~premium ~~and~~increases ~~its~~or ~~root~~the ~~cause.~~imposition of

Additionally, defending against claims or litigation based on any actual or perceived privacy or security breach or incident, regardless of their merit, could be costly and divert management’s attention. We cannot be certain that our insurance coverage will be adequate for such liabilities, that insurance will continue to be available to us on commercially reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have an adverse effect on our reputation, brand, business, financial condition and results of operations.23

large deductible or co-insurance requirements, could have an adverse effect on our reputation, brand, business, financial condition and results of operations.

We primarily rely on Amazon Web Services to deliver our offerings to users on our platform, and any disruption of or interference with our use of Amazon Web Services could adversely affect our business, financial condition and results of operations.

We currently host our platform and support our operations using Amazon Web Services, or (“AWS”), a third-party provider of cloud infrastructure services. We do not have control over the operations of the facilities of AWS that we use. AWS’ facilities are vulnerable to damage or interruption from natural disasters, cyberattacks, terrorist attacks, power outages and similar events or acts of misconduct, and AWS has experienced, and caused their users to experience, service outages and interruptions for a variety of reasons which has impacted us in the past. Our platform’s continuing and uninterrupted performance is critical to our success. We have experienced, and expect that in the future we will experience interruptions, delays and outages in service and availability from time to time due to a variety of factors, including infrastructure changes, human or software errors, website hosting disruptions and capacity constraints. In addition, any changes in AWS’ service levels may adversely affect our ability to meet the requirements of users. Since our platform’s continuing and uninterrupted performance is critical to our success, sustained or repeated system failures would reduce the attractiveness of our offerings. It may become increasingly difficult to maintain and improve our performance, especially during peak usage times, as we expand and the usage of our offerings increases. Any negative publicity arising from these disruptions could harm our reputation and brand and may adversely affect the usage of our offerings.

Our commercial agreement with AWS will remain in effect until ~~terminated~~expiration byin ~~AWS~~December ~~or us~~2030. AWS ~~may~~or ~~only~~Lyft ~~terminate the agreement for convenience after complying with a one-year advance notice requirement. AWS~~ may ~~also~~ terminate the agreement for cause upon a material breach of the agreement ~~or for failure to pay amounts due~~, ~~in each case,~~ subject to ~~AWS~~either party providing prior written notice and a 30-day cure period. In the event that our agreement with AWS is terminated or we add additional cloud infrastructure service providers, we may experience significant costs or downtime in connection with the transfer to, or the addition of, new cloud infrastructure service providers. Any of the above circumstances or events may harm our reputation and brand, reduce the availability or usage of our platform, lead to a significant short term loss of revenue, increase our costs and impair our ability to attract new users, any of which could adversely affect our business, financial condition and results of operations.

25On December 30, 2025, we entered into an addendum to our commercial agreement with AWS, pursuant to which we committed to spend an aggregate of at least $562.5 million between January 2026 and December 2030 on AWS services, with a minimum amount of $100 million in each of the five years. If we fail to meet the minimum purchase commitment during any year, we may be required to pay the difference, which could adversely affect our financial condition and results of operations.

infrastructure service providers. Any of the above circumstances or events may harm our reputation and brand, reduce the availability or usage of our platform, lead to a significant short term loss of revenue, increase our costs and impair our ability to attract new users, any of which could adversely affect our business, financial condition and results of operations.

On February 1, 2022 we entered into an addendum to our commercial agreement with AWS, pursuant to which we committed to spend an aggregate of at least $350 million between February 2022 and January 2026 on AWS services, with a minimum amount of $80 million in each of the four years. If we fail to meet the minimum purchase commitment during any year, we may be required to pay the difference, which could adversely affect our financial condition and results of operations.

We rely on third-party and affiliate vehicle rental partners for our Express Drive program, as well as third-party vehicle supply, fleet management and finance partners to support our Express Drive program, and if we cannot manage our relationships with such parties and other risks related to our Express Drive program, our business, financial condition and results of operations could be adversely affected.

We rely on third-party and affiliate vehicle rental partners as well as third-party vehicle supply, fleet management and finance partners to supply vehicles to drivers for our Express Drive program. If any of our third-party vehicle rental partners or third-party vehicle supply, fleet management and finance partners terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, the availability of vehicles for drivers in certain markets could be adversely impacted, and we may need to find an alternate provider, and may not be able to secure similar terms or replace such partners in an acceptable time frame. Similarly, in the event that vehicle manufacturers issue recalls that affect the usage or the supply of vehicles or automotive parts is interrupted, including as a result of public health crises or pandemics, affecting vehicles in these partners’ fleets, the supply of vehicles available from these partners could become constrained. ~~In addition, in May 2020, Hertz filed for bankruptcy protection, which affected its ability to meet the requirements of our Express Drive program.~~ If we cannot find alternate third-party vehicle rental providers on terms acceptable to us, or these partners’ fleets are impacted by events such as vehicle recalls, we may not be able to meet the driver and consumer demand for rental vehicles, and as a result, our platform may be less attractive to qualified drivers and consumers. In addition, due to a number of factors, including our agreements with our vehicle rental partners and our auto-related insurance program, we incur an incrementally higher insurance cost from our Express Drive program compared to the corresponding cost from the rest of our ridesharing marketplace offerings. If Flexdrive, Lyft’s independently managed subsidiary, is unable to manage costs of operating Flexdrive’s fleet and potential shortfalls between such costs and the rental fees collected from drivers, Lyft and Flexdrive may update the pricing methodologies related to Flexdrive’s offering in Lyft’s Express Drive program which could increase prices, and in turn adversely affect our ability to attract and retain qualified drivers through the Express Drive program.

Any negative publicity related to any of our third-party and affiliate vehicle rental partners, including publicity related to quality standards or safety concerns, could adversely affect our reputation and brand and could potentially lead to increased regulatory or litigation exposure. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

Our Express Drive program and potential future fleet businesses expose us to certain risks, including reductions in the utilization of vehicles in the fleets.

~~For~~Our independently managed subsidiary, Flexdrive operates a portion of the Express Drive vehicle rental program for drivers ~~operated~~and bysources ~~our~~its ~~independently managed subsidiary, Flexdrive, a portion of the~~ fleet ~~is sourced~~ from a range of auto manufacturers. In addition, we have established environmental programs that may limit the range of auto manufacturers or vehicles that Flexdrive ~~sources~~can source or ~~purchases~~purchase from. To the extent that any of these auto manufacturers significantly curtail production, increase the cost of purchasing cars or decline to provide cars to Flexdrive on terms or at prices consistent with past agreements, despite sourcing vehicles from the used car market and other efforts to mitigate, Flexdrive may be unable to obtain a sufficient number of vehicles for Lyft to operate the Express Drive business without significantly increasing fleet costs or reducing volumes. Similarly, where events, such as natural disasters or public health crises such as the COVID-19 pandemic, make operating rental locations difficult or impossible, or adversely impact rider demand, the demand for or Flexdrive’s ability to make vehicles available for rent through the Express Drive program has been and could continue to be adversely affected, resulting in reduced utilization of the vehicles in the fleets.

Although new vehicle inventory supply is improving, Flexdrive has previously experienced and may in the future experience production and delivery delays which can hinder its ability to meet demand and grow the fleet. New vehicle production delays also lead to holding onto existing vehicles longer which in turn leads to increased costs relating to those vehicles. 24

~~The~~significantly ~~costs~~curtail ofproduction, increase the ~~fleet~~cost ~~vehicles~~of ~~may~~purchasing ~~also~~cars beor ~~adversely~~decline ~~impacted~~to byprovide ~~the~~cars ~~relative~~to ~~strength~~Flexdrive ofon ~~the~~terms ~~used~~or ~~car~~at ~~market.~~prices ~~Flexdrive~~consistent ~~currently~~with ~~sells~~past ~~vehicles~~agreements, ~~through~~Flexdrive ~~auctions,~~may ~~third-party~~be ~~resellers~~unable ~~and~~to ~~other~~obtain ~~channels~~a insufficient ~~the~~number ~~used~~of ~~vehicle~~vehicles ~~marketplace.~~for ~~Such~~Lyft ~~channels~~to ~~may~~operate ~~not~~the ~~produce~~Express ~~stable~~Drive ~~used~~business ~~vehicle~~without ~~prices~~significantly ~~and~~increasing ~~Flexdrive~~fleet ~~has~~costs ~~experienced~~or areducing ~~softening~~volumes. inIn the ~~used~~event ~~car~~of ~~market.~~natural Itdisasters ~~may~~or bepublic ~~difficult~~health tocrises ~~estimate~~or ~~the~~pandemics, ~~residual~~operating ~~value~~rental oflocations ~~vehicles~~may ~~used~~be indifficult ~~ridesharing,~~or ~~such~~impossible. asFlexdrive’s ~~those~~ability ~~rented~~ to ~~drivers~~make vehicles available for rent through ~~our~~the Express Drive program., Ifor ~~Flexdrive~~demand isfor ~~unable to obtain and maintain~~ the ~~fleet~~Express ofDrive ~~vehicles~~Program, ~~cost-efficiently~~has orbeen ifand ~~Flexdrive~~could isbe ~~unable~~adversely toaffected, ~~accurately~~resulting ~~forecast~~in ~~the~~reduced ~~residual~~utilization ~~values~~ of the vehicles in the ~~fleet~~fleets, ~~our~~which ~~business,~~would ~~financial~~adversely ~~condition~~affect ~~and~~our ~~results of operations could be adversely affected~~profitability.

26In addition, macroeconomic factors such as tariffs and import restrictions may lead to an increase in new vehicle prices and/or availability. Flexdrive has previously experienced and may in the future experience production and delivery delays which can hinder its ability to meet demand and grow the fleet. New vehicle production delays also lead to holding onto existing vehicles longer which in turn leads to increased costs relating to those vehicles.

The costs of the fleet vehicles may also be adversely impacted by the relative strength of the used car market. Flexdrive currently sells vehicles through auctions, third-party resellers and other channels in the used vehicle marketplace. Such channels may not produce stable used vehicle prices and Flexdrive has experienced fluctuations in the used car market. It may be difficult to estimate the residual value of vehicles used in ridesharing, such as those rented to drivers through our Express Drive program. If Flexdrive is unable to obtain and maintain the fleet of vehicles cost-efficiently or if Flexdrive is unable to accurately forecast the residual values of vehicles in the fleet, our business, financial condition and results of operations could be adversely affected.

We rely on third-party payment processors to process payments made by riders and payments made to drivers on our platform, and if we cannot manage our relationships with such third parties and other payment-related risks, our business, financial condition and results of operations could be adversely affected.

We rely on a limited number of third-party payment processors to process payments made by riders and payments made to drivers on our platform. If any of our third-party payment processors terminates its relationship with us or refuses to renew its agreement with us on commercially reasonable terms, we would need to find an alternate payment processor, and may not be able to secure similar terms or replace such payment processor in an acceptable time frame. Further, the software and services provided by our third-party payment processors may not meet our expectations, contain errors or vulnerabilities, be compromised or experience outages. Any of these risks could cause us to lose our ability to accept online payments or other payment transactions or make timely payments to drivers on our platform, any of which could make our platform less convenient and attractive to users and adversely affect our ability to attract and retain qualified drivers and riders.

Nearly all rider payments and driver payouts are made by credit card, debit card or through third-party payment services, which subjects us to certain payment network or service provider operating rules, to certain regulations and to the risk of fraud. We may in the future offer new payment options to riders that may be subject to additional operating rules, regulations and risks. We may also be subject to a number of other laws and regulations relating to the payments we accept from riders, including with respect to money laundering, money transfers, privacy, data protection and information security. If we fail to comply with applicable rules and regulations, we may be subject to civil or criminal penalties, fines or higher transaction fees and may lose our ability to accept online payments or other payment card transactions, which could make our offerings less convenient and attractive to riders. If any of these events were to occur, our business, financial condition and results of operations could be adversely affected.

For example, if we are deemed to be a money transmitter as defined by applicable regulation, we could be subject to certain laws, rules and regulations enforced by multiple authorities and governing bodies in the ~~United~~U.S. ~~States~~ and numerous state and local agencies who may define money transmitter differently. For example, certain states may have a more expansive view of who qualifies as a money transmitter. Additionally, outside of the ~~United States~~U.S., we could be subject to additional laws, rules and regulations related to the provision of payments and financial services, and if we expand into new jurisdictions, the foreign regulations and regulators governing our business that we are subject to will expand as well. If we are found to be a money transmitter under any applicable regulation and we are not in compliance with such regulations, we may be subject to fines or other penalties in one or more jurisdictions levied by federal, state or local regulators, including state Attorneys General, as well as those levied by foreign regulators. In addition to fines, penalties for failing to comply with applicable rules and regulations could include criminal and civil proceedings, forfeiture of significant assets or other enforcement actions. We could also be required to make changes to our business practices or compliance programs as a result of regulatory scrutiny.

For various payment options, we are required to pay fees such as interchange and processing fees that are imposed by payment processors, payment networks and financial institutions. These fees are subject to increases, which could adversely affect our business, financial condition, and results of operations. Additionally, our payment processors require us to comply with payment card network operating rules, which are set and interpreted by the payment card networks and which include, among other obligations, requirements to comply with security standards. The payment card networks could adopt new operating rules or interpret or re-interpret existing rules in ways that might prohibit us from providing certain offerings to some users, be costly to implement or difficult to follow, and if we fail or are alleged to fail to comply with applicable rules or requirements of payment card networks, we may be subject to fines or higher transaction fees and may lose our ability to accept online payments or other payment card transactions. We have agreed to reimburse our payment processors for fines they are assessed by payment card networks if we or the ~~users on our platform violate these rules. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.~~

users on our platform violate these rules. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

We rely on other third-party service providers and if such third parties do not perform adequately or terminate their relationships with us, our costs may increase and our business, financial condition and results of operations could be adversely affected.

Our success depends in part on our relationships with other third-party service providers. For example, we rely on third-party encryption and authentication technologies licensed from third parties that are designed to securely transmit personal information provided by drivers and riders on our platform. Further, from time to time, we enter into strategic commercial partnerships in connection with the development of new technology, the growth of our qualified driver base, the provision of new or enhanced offerings for users on our platform and our expansion into new markets. If any of our partners terminates its relationship with us, or refuses to renew its agreement with us on commercially reasonable terms, we would need to find an alternate provider, and may not be able to secure similar terms or replace such providers in an acceptable time frame. Similarly, in the event that our strategic partners experience a disruption in their operations, our ability to continue providing certain product offerings could become constrained. If we cannot find alternate partners, we may not be able to meet the demand for these product offerings, and as a result, these offerings and our platform may become less attractive. We also rely on other software and services supplied by third parties, such as communications and internal software, and our business may be adversely affected to the extent such software and services do not meet our expectations, contain errors or vulnerabilities, are compromised or experience outages. Any of these risks could increase our costs and adversely affect our business, financial condition and results of operations. Further, any negative publicity related to any of our third-party partners, including any publicity related to quality standards or safety concerns, could adversely affect our reputation and brand, and could potentially lead to increased regulatory or litigation exposure. In addition, in certain cases, we rely on these third-party partners to provide certain data that is important to the management of our business. Errors in the data, or failure to provide data in a timely manner, could adversely affect our ability to manage our business and could impact the accuracy of our financial reporting.

and brand, and could potentially lead to increased regulatory or litigation exposure. In addition, in certain cases, we rely on these third-party partners to provide certain data that is important to the management of our business. Errors in the data, or failure to provide data in a timely manner, could adversely affect our ability to manage our business and could impact the accuracy of our financial reporting.

We use and incorporate technology and intellectual property from third parties into our platform, products, and services. We cannot be certain that such technology, intellectual property, or third parties are not infringing the intellectual property rights of others or that these third parties have sufficient rights to the technology or intellectual property in all jurisdictions in which we may operate. Some of our license agreements may be terminated by our licensors for convenience. If we are unable to obtain or maintain rights to any of this technology because of intellectual property infringement claims brought by third parties against our suppliers and licensors or against us, or if we are unable to continue to obtain the technology or enter into new agreements on commercially reasonable terms, our ability to develop our platform or products containing that technology or provide services using that technology could be severely limited and our business could be harmed. Additionally, if we are unable to access necessary technology from third parties, we may be forced to acquire or develop alternate technology, which may require significant time and effort and may be of lower quality or performance standards and may subject us to certain risks discussed in the preceding paragraph that are currently borne by third parties. This would limit and delay our ability to provide new or competitive offerings and increase our costs. If alternate technology cannot be obtained or developed or if we are unable to develop such alternate technology at commercially reasonable levels of risk, we may not be able to offer certain functionality as part of our offerings, which could adversely affect our business, financial condition and results of operations.

Our advertising ~~business~~platform, Lyft ~~Media~~Ads, is nascent and subject to various risks and uncertainties, which may adversely affect our business and financial results.

We have introduced Lyft ~~Media~~Ads, a media and advertising ~~business~~platform from which we earn revenue from third parties who advertise through various offerings on our platform. We have limited experience and operating history offering media and advertising on our platform, and our efforts to develop Lyft ~~Media~~Ads and generate revenue are still in the early stages. We may never generate sufficient revenue to offset our investment or achieve the returns we expect.

Lyft ~~Media~~Ads and our ability to generate and increase revenue from Lyft ~~Media~~Ads are subject to various risks and uncertainties, including:

•our ability to compete effectively for advertising spend, including our ability to create valuable products, attract and retain advertisers, particularly because our advertisers do not have long-term commitments with us;

•~~our~~the ~~ability~~impact toof ~~deliver~~seasonal, ~~advertisements~~cyclical or other shifts in anadvertising ~~effective~~spend, ~~manner;~~including the impact of macroeconomic conditions, such as changes in market conditions due to actual or proposed tariffs;

•our ability to ~~compete~~deliver ~~effectively~~advertisements, ~~for~~including ~~advertising~~the ~~spend~~availability, ~~including~~accuracy, ~~our~~utility, ~~ability~~and tosecurity ~~create~~of ~~products~~analytics and ~~offerings~~measurement solutions offered by us or third parties that ~~are~~demonstrate ~~perceived~~the asvalue ~~valuable~~of our ads to ~~advertisers~~marketers, or our ability to further improve such tools;

•our failure to increase the ~~impact~~number of ~~seasonal,~~riders ~~cyclical~~who orengage ~~other~~with ~~shifts~~Lyft inAds ~~advertising~~or ~~spend,~~changes ~~including~~in ~~the~~viewer ~~impact~~demographics ofthat ~~macroeconomic~~impact ~~conditions~~advertiser spend;

•the availability, accuracy, utility, and security of analytics and measurement solutions offered by us or third parties that demonstrate the value of our ads to marketers, or our ability to further improve such tools;26

•~~our~~adverse ~~failure~~legal developments (regulatory, legislative, and industry) relating to ~~increase~~advertising, including relating to the ~~number~~collection, use, and other processing of ~~riders~~information ~~who~~and ~~engage~~other privacy considerations, including with ~~Lyft~~respect ~~Media~~to ad targeting and measurement tools;

•changes in our viewer demographics that make us less attractive to advertisers;

•adverse legal developments relating to advertising, including with respect to ad targeting and measurement tools;

•our inability to deliver advertisements due to hardware, software or network limitations;

•changes in third-party policies such as changes to mobile device operating systems that impose heightened restrictions on our access and use of user data by allowing users to more easily opt-out of tracking of activity across devices, which may negatively impact the ability to measure, deliver and select ads to be served;

•~~regulatory,~~adverse ~~legislative~~media ~~and~~reports ~~industry~~or ~~developments~~other ~~relating~~negative topublicity ~~the~~involving ~~collection~~us, ~~use~~our business or advertisers on our platform that may impact our brand and ~~other~~reputation ~~processing~~and the willingness of ~~information~~advertisers ~~and~~to ~~other~~advertise ~~privacy~~on ~~considerations~~our platform, ~~including~~this ~~regulations~~could ~~related~~include toany addriver, ~~targeting~~rider, ~~and~~or ~~measurement~~third ~~tools~~party dissatisfaction due to advertisements;

•~~product~~any ~~changes or advertising inventory management decisions we may make that change the type~~liability, ~~size~~brand or ~~frequency~~reputational ofharm from advertisements ~~displayed~~shown on ~~Lyft~~our ~~Media~~platform; and

•~~adverse~~any ~~media~~uncertainty ~~reports~~related orto ~~other~~third-party ~~negative~~agreements ~~publicity~~to ~~involving us~~manage, ~~our~~sell ~~business~~ads, or ~~advertisers~~otherwise onto ~~our~~provide ~~platform~~services ~~that~~in ~~may impact our brand and reputation and~~ the ~~willingness~~Lyft ofAds ~~advertisers~~ecosystem. ~~to advertise on our platform;~~

~~•any~~These ~~liability,~~and ~~brand~~other orfactors ~~reputational~~could harm ~~from~~our ~~advertisements~~Lyft ~~shown~~Ads business and the ability of our Lyft Ads business to achieve the return on investment we expect which could harm our ~~platform;~~business.

•any uncertainty related to third party agreements to manage, sell ads, or otherwise to provide services in the Lyft Media ecosystem;

•advertisers may not agree to reformat or change their advertisements to comply with our guidelines;

•any driver, rider or third-party dissatisfaction due to advertisements; and

•our ability to increase or maintain driver adoption and use of Lyft Media products.

These and other factors could harm our Lyft Media business and the ability of our Lyft Media business to achieve the return on investment we expect which could harm our business.

Use of artificial intelligence and machine learning may present additional risks, including risks associated with algorithm development or use, the data sets used, and/or a complex, developing regulatory environment.

We use artificial intelligence (“AI”) (including machine learning and automated decision making) for our internal work streams and productivity as well as in our platform, offerings, services and features, which may present additional risks, including risks inherent in its use. We are making investments in expanding our AI capabilities in our platform, offerings, services and features, including ongoing deployment and improvement of existing machine learning and AI technologies, as well as developing new features using AI technologies, including, for example, generative AI. AI algorithms or automated processing of data may be flawed and datasets may be insufficient or contain inaccurate or biased information, which can create discriminatory outcomes. AI algorithms may use third-party inputs with unclear intellectual property rights or interests. Intellectual property ownership and license rights, including copyright, of generative and other AI output, have not been fully interpreted by courts or fully addressed by federal or state regulations. The ~~United~~U.S. ~~States~~ and other countries are considering comprehensive legal compliance frameworks specifically for AI, which is a trend that may increase now that the European Union (the “EU”) has adopted the first such framework in its Artificial Intelligence Act. In addition, there may be additional legislation or regulations from government bodies that similarly impose compliance obligations for AI. Any failure or perceived failure by us or our service providers to comply with such requirements could have an adverse impact on our business. AI use or management by us or others, including decisions based on automated processing or profiling, inappropriate or controversial data practices, or insufficient disclosures regarding machine learning, automated decision making, and algorithms, have and could impair the operationality or acceptance of AI solutions or subject us to lawsuits, regulatory investigations or other harm, such as negative impacts to the value of our intellectual property or our brand. These deficiencies could also undermine the decisions, predictions or analysis AI applications produce, or lead to unintentional bias and discrimination, subjecting us to competitive harm, legal liability, and brand or reputational harm. The rapid evolution of AI may require us to allocate additional resources to help implement AI in order to minimize unintended or harmful impacts, and may also require us to make additional investments in the development of proprietary datasets, machine learning models or other systems, which may be costly.

If we are not able to successfully develop new offerings on our platform and enhance our existing offerings, our business, financial condition and results of operations could be adversely affected.

Our ability to attract new qualified drivers and new riders, retain existing qualified drivers and existing riders and increase utilization of our offerings will depend in part on our ability to successfully create and introduce new offerings and to improve upon and enhance our existing offerings. As a result, we may introduce significant changes to our existing offerings or develop and introduce new and unproven offerings. If these new or enhanced offerings are unsuccessful, including as a result of any inability to obtain and maintain required permits or authorizations or other regulatory constraints or because they fail to generate sufficient return on our investments, our business, financial condition and results of operations could be adversely affected. Furthermore, new driver or rider demands regarding service or platform features, the availability of superior competitive offerings or a deterioration in the quality of our offerings or our ability to bring new or enhanced offerings to market quickly and efficiently could negatively affect the attractiveness of our platform and the economics of our business and require us to make substantial changes to and additional investments in our offerings or our business model. In addition, we frequently experiment with and test different offerings and marketing strategies~~. For example~~, ~~in September 2023, we launched Women+ Connect, a new feature that currently offers women~~ and ~~nonbinary~~some ~~riders~~of ~~and~~our ~~drivers~~recent ~~the~~features ~~option~~have toincluded ~~turn on a preference within the Lyft App to prioritize matches with nearby women and nonbinary riders and drivers, and in 2024, we extended~~ Women+ Connect ~~nationwide. In July 2024~~, ~~we launched a new~~ Price Lock ~~product~~, ~~which~~Lyft ~~allows riders to purchase a monthly subscription that caps the price for a specified route during a specified one-hour time window. Additionally~~Silver, inand ~~May~~our ~~2024, we launched a~~ driver earnings commitment ~~nationwide in the United States where we promise a driver will earn at least 70% of weekly passenger payments after external fees~~. If a driver’s weekly earnings are below the 70% commitment, they will receive a true-up payment for the difference. Any significant inability to deliver on the commitment could lead to brand and reputational harm and create potential legal risk. If our experiments and tests are unsuccessful, or if the offerings and strategies we introduce based on the results of such experiments and tests do not perform as expected, our ability to attract new qualified drivers and new riders, retain existing qualified drivers and existing riders and maintain or increase utilization of our offerings may be adversely affected.

Developing and launching new offerings or enhancements to the existing offerings on our platform involves significant risks and uncertainties, including risks related to the reception of such offerings by existing and potential future drivers and riders, increases in operational complexity, unanticipated delays or challenges in implementing such offerings or enhancements, increased strain on our operational and internal resources (including an impairment of our ability to accurately forecast rider demand and the number of drivers using our platform), our dependence on strategic commercial partnerships, and negative publicity in the event such new or enhanced offerings are perceived to be unsuccessful. We have scaled our business rapidly, and significant new initiatives have in the past resulted in, and in the future may result in, operational challenges affecting our business. In addition, developing and launching 27

29Developing and launching new offerings or enhancements to the existing offerings on our platform involves significant risks and uncertainties, including risks related to the reception of such offerings by existing and potential future drivers and riders, increases in operational complexity, new or different regulatory and compliance requirements, unanticipated delays or challenges in implementing such offerings or enhancements, increased strain on our operational and internal resources (including an impairment of our ability to accurately forecast rider demand and the number of drivers using our platform), our dependence on strategic commercial partnerships, and negative publicity in the event such new or enhanced offerings are perceived to be unsuccessful. We have scaled our business rapidly, and significant new initiatives have in the past resulted in, and in the future may result in, operational challenges affecting our business. In addition, developing and launching new offerings and enhancements to our existing offerings may involve significant up-front capital investments and such investments may not generate sufficient returns on investment. Further, from time to time we may reevaluate, discontinue and/or reduce these investments and decide to discontinue one or more offerings, which may lead to additional expenses and loss of riders and drivers. Any of the foregoing risks and challenges could negatively impact our ability to attract and retain qualified drivers and riders, our ability to increase utilization of our offerings and our visibility into expected results of operations, and could adversely affect our business, financial condition and results of operations. Additionally, since we are focused on building our community and ecosystems for the long-term, our near-term results of operations may be impacted by our investments in the future.

new offerings and enhancements to our existing offerings may involve significant up-front capital investments and such investments may not generate sufficient returns on investment. Further, from time to time we may reevaluate, discontinue and/or reduce these investments and decide to discontinue one or more offerings. For example, we shut down our vehicle services offering and parking offering, which were initially launched in 2021. Any of the foregoing risks and challenges could negatively impact our ability to attract and retain qualified drivers and riders, our ability to increase utilization of our offerings and our visibility into expected results of operations, and could adversely affect our business, financial condition and results of operations. Additionally, since we are focused on building our community and ecosystems for the long-term, our near-term results of operations may be impacted by our investments in the future.

If we are unable to successfully manage the complexities associated with our multimodal platform, our business, financial condition and results of operations could be adversely affected.

Our expansion, either through our first party offerings or third-party offerings through our partnerships, into bike and scooter sharing, taxi, private hire vehicles, car sharing, and other modes of transportation and vehicle rental program has increased the complexity of our business. These new offerings have required us to develop new expertise and marketing and operational strategies, and have subjected us to new laws, regulations and risks. For example, our Wait & Save ~~offering~~and Priority Pickup offerings, which ~~enables~~enable riders to opt for a longer wait time ~~but~~for ~~pay~~ a lower fare ~~than~~or ~~for~~pay aextra ~~Standard ride, while drivers earn the same as they do~~ for aprioritized ~~Standard~~matching, ~~ride~~respectively, ~~involves~~require ~~inherent~~ongoing ~~challenges~~maintenance inand ~~predicting~~enhancement ~~the~~to ~~future~~efficiently ~~locations~~balance ofdriver ~~drivers.~~supply Wewith ~~also~~rider ~~face the risk that our network of Light Vehicles~~demand, ~~our~~as ~~Nearby~~well ~~Transit~~as ~~offering,~~to ~~which~~manage ~~integrates~~pricing ~~third-party~~methodologies ~~public transit data into the Lyft App,~~ and ~~other future transportation offerings could reduce the use of our ridesharing offering~~logistics. Additionally, from time to time we reevaluate our offerings on our multimodal platform and have in the past decided and may again decide to discontinue or modify an offering or certain features. Such actions may negatively impact revenue in the short term and may not provide the benefits we expect in the long term. If we are unable to successfully manage the complexities associated with our expanding multimodal platform, including the effects our new and evolving offerings have on our existing business, our business, financial condition and results of operations could be adversely affected.

Our metrics and estimates, including the key metrics included in this report, are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may harm our reputation and negatively affect our business.

We regularly review and may adjust our processes for calculating our metrics used to evaluate our growth, measure our performance and make strategic decisions. These metrics are calculated using internal company data and have not been evaluated by a third-party. Our metrics may differ from estimates published by third parties or from similarly titled metrics of our competitors due to differences in methodology or the assumptions on which we rely, and wefrom ~~may~~time ~~make~~to ~~material~~time we have made adjustments to our processes for calculating our metrics in order to enhance accuracy, reflect newly available information, address errors in our methodologies, or other reasons, and we may make material adjustments in the future, which may result in changes to our metrics. The estimates and forecasts we disclose relating to the size and expected growth of our addressable market may prove to be inaccurate. Even if the markets in which we compete meet the size estimates and growth we have forecasted, our business could fail to grow at similar rates, if at all. Further, as our business develops, we may introduce, revise or cease reporting certain metrics if we change how we manage our business such that new metrics are appropriate, if we determine that revisions are required to accurately or appropriately measure our performance, or if one or more metrics no longer represents an effective way to evaluate our business. If investors or analysts do not consider our metrics to be accurate representations of our business or compare our metrics to third -party estimates or similarly titled metrics of our competitors or others in our industry that are not calculated on the same basis, or if we discover material inaccuracies in our metrics, then the trading price of our Class A common stock and our business, financial condition and results of operations could be adversely affected.

Any failure to offer high-quality user support may harm our relationships with users and could adversely affect our reputation, brand, business, financial condition and results of operations.

Our ability to attract and retain qualified drivers and riders is dependent in part on the ease and reliability of our offerings, including our ability to provide high-quality support, including both in-person and remote support. Users on our platform depend on our support organization to resolve any issues relating to our offerings, such as being overcharged for a ride, leaving something in a driver’s vehicle or reporting a safety incident. Our ability to provide effective and timely support is largely dependent on our ability to attract and retain service providers who are qualified to support users and sufficiently knowledgeable regarding our offerings. As we continue to grow our business and improve our offerings, we have faced and will continue to face challenges related to providing quality support services at scale. IfAs we grow our international rider base and the number of international drivers on our platform, our support organization has faced and will continue to face additional challenges, including those associated with delivering support in languages other than English. Any failure to provide efficient and effective user support, or a market perception that we do not maintain high-quality support, could adversely affect our reputation, brand, business, financial condition and results of operations.

Failure to deal effectively with fraud could harm our business.

WeFrom ~~have~~time into ~~the past incurred~~time, ~~and~~we ~~may in the future~~ incur, losses from various types of fraud, including use of stolen or fraudulent credit card data, claims of unauthorized payments by a rider, attempted payments by riders with insufficient funds, fraud committed by drivers, riders or third parties, and fraud committed by riders in concert with drivers. Bad actors use increasingly sophisticated methods to engage in illegal activities, including those involving personal information, such as unauthorized use of another person’s identity, account information or payment information and unauthorized acquisition or use of credit or debit card details, bank account information and mobile phone numbers and accounts. Under current card payment practices, we may be liable for rides facilitated on our platform with fraudulent credit card data, even if the associated financial institution approved the credit card transaction. As we expand our business, particularly as we expand into new geographies and offerings, we will need to continue to expand our fraud detection systems. Despite measures that we have taken to detect and reduce the occurrence of fraudulent or other malicious activity on our platform, we cannot guarantee that any of our measures will be effective or will scale efficiently with our business. Our inability to adequately detect or prevent fraudulent transactions could harm our reputation or brand, result in litigation or regulatory action and lead to expenses that could adversely affect our business, financial condition and results of operations.

details, bank account information and mobile phone numbers and accounts. Under current card payment practices, we may be liable for rides facilitated on our platform with fraudulent credit card data, even if the associated financial institution approved the credit card transaction. Despite measures that we have taken to detect and reduce the occurrence of fraudulent or other malicious activity on our platform, we cannot guarantee that any of our measures will be effective or will scale efficiently with our business. Our inability to adequately detect or prevent fraudulent transactions could harm our reputation or brand, result in litigation or regulatory action and lead to expenses that could adversely affect our business, financial condition and results of operations.

We have also incurred, and may in the future incur, losses from fraud and other misuse of our platform by drivers and riders. As an example of losses, we have previously and continue to experience reduced revenue from actual and alleged unauthorized rides fulfilled and miles traveled in connection with our Concierge offering. If we are unable to adequately anticipate and address such misuse either through increased controls, platform solutions or other means, our partner relationships, business, financial condition and results of operations could be adversely affected.

If we fail to effectively balance driver supply and rider demand on our Wait & Save and Priority Pickup offerings, our business, financial condition and results of operations could be adversely affected.

If we fail to efficiently balance driver supply and rider demand on our Wait & Save and Priority Pickup offerings and manage the related pricing methodologies and logistics, our business, financial condition and results of operations could be adversely affected. Wait & Save enables riders to opt for a longer wait time but pay a lower fare than for a Standard ride, while drivers earn the same as they do for a Standard ride. Priority Pickup enables riders to pay an additional fee for prioritized ride matching with the goal of achieving a shorter wait time. Both Priority Pickup and Wait & Save allow for the rider to be matched with the best-located driver and involve inherent challenges in predicting the future location of drivers. Accordingly, if our algorithms are unable to consistently match Wait & Save and Priority Pickup riders, or with appropriate drivers, then our business, financial condition and results of operations could be adversely affected.

If we fail to effectively manage our pricing methodologies, our business, financial condition and results of operations could be adversely affected.

With ~~our~~the ~~up-front~~exception ~~pricing~~of ~~methodology~~certain taxi markets in Europe and rides for which variable fares apply, we quote a price to riders of our ridesharing offering before they request a ride. We earn platform and service fees from drivers. Service fees are a set fee per ride. Platform fees are variable fees, based upon the amount paid by a rider, which is generally based on an up-front quoted fare, less the amount earned by the driver (which is based on one or both of the following: (a) the actual time and distance for the trip, or (b) an up-front fare), the service fee, any applicable driver bonuses or incentives, and any pass-through amounts paid to drivers and third parties. For more information on platform fees, see our Terms of Service, including the Driver Addendum. As we do not control the driver’s actions at any point in the transaction to limit the time and distance for the trip, we take on risks related to the driver’s actions which may not be fully mitigated. Additionally, Shared Rides, a limited-scope offering for business-to-business partnerships in select markets, as well as for rides originating at airports in select markets (in addition to rides to and from the airport in one market) as part of a pilot offering, enables unrelated parties traveling along similar routes to generate a discounted fare at the cost of possibly longer travel times. The fare charged for the Shared Ride is decoupled from the payment made to the driver, asand for some Shared Ride types, we do not adjust the driver payment based on the success or failure of a match. We may incur a loss from a transaction where an up-front quoted fare paid by a rider is less than the amount we committed to the driver. In addition, riders’ price sensitivity varies by geographic location, among other factors, and if we are unable to effectively account for such variability in our breadth of offerings or up-front prices, our ability to compete effectively in these locations could be adversely affected. From time to time we adjust our prices due to these factors, which may harm our results of operations. We also utilize certain AI and machine-learning technologies and algorithms to optimize our pricing and marketplace. Errors in AI, machine-learning technologies, algorithms, or the inputted data, including insufficient data sets or biased information, or the processing of the data may lead to discriminatory or other adverse outcomes. In ~~July~~addition ~~2024,~~to weour ~~launched~~ridesharing aand ~~new~~Shared ~~Price~~Ride ~~Lock~~offerings, ~~product~~we ~~that~~offer ~~allows~~taxi ~~riders~~and toprivate ~~purchase~~hire avehicle ~~monthly~~options ~~subscription~~in ~~that~~certain ~~caps~~international ~~the~~markets. ~~price~~For ~~for~~these ~~a specified route during a specified one-hour time window~~offerings, ~~subject~~we toreceive a ~~maximum~~set ~~amount~~percentage of ~~savings~~the ~~in any given month~~fare. ~~With~~We ~~the~~may ~~Price~~incur ~~Lock~~a ~~product,~~loss iffrom wea ~~set~~transaction ~~the~~where ~~capped~~driver ~~prices~~or ~~too~~rider ~~low~~incentives orare ~~too~~applied ~~high~~in ~~compared~~excess toof ~~actual~~the ~~on-demand~~commission ~~prices,~~ we ~~may~~received ~~incur~~on ~~losses~~the ~~or it may negatively impact subscriber growth~~fare. If we are unable to effectively manage our pricing methodologies in conjunction with our existing and future pricing and incentive programs and/or products, our business, financial condition and results of operations could be adversely affected.

Our company culture has contributed to our success and if we cannot maintain this culture as we grow, our business could be harmed.

We believe that our company culture, which promotes authenticity, empathy and support for others, has been critical to our success. We face a number of challenges that may affect our ability to sustain our corporate culture, including:

•failure to identify, attract, reward and retain people in leadership positions in our organization who share and further our culture, values and mission;

•the size and geographic diversity of our workforce;

•our flexible workplace strategies, which enable certain of our employees to work in a hybrid workplace environment or remotely;

31•departure from our internal policies and core values;

•adherence to our internal policies and core values, including our diversity, equity and inclusion practices and initiatives;

•competitive pressures to move in directions that may divert us from our mission, vision and values;

•the continued challenges of a rapidly-evolving industry;

•the impact of our cost reduction initiatives, including reductions in force and other actions we may take to drive operating efficiencies;

•the increasing need to develop expertise in new areas of business that affect us;

•perception of our treatment of employees or our response to employee sentiment related to political or social causes or actions of management;

•transitions among our executive leadership;

•the provision of employee benefits in a hybrid and remote work environment; and

•the integration of new personnel and businesses from acquisitions.

From time to time, we have undertaken workforce reductions in order to better align our operations with our strategic priorities, manage our cost structure or(including in ~~connection with acquisitions. For example, in~~ response to the effects of the macroeconomic environment and efforts to reduce operating expenses,) weor ~~have~~in ~~from~~connection ~~time~~with ~~to time implemented reductions in force~~acquisitions. These actions may adversely affect employee morale, our culture and our ability to attract and retain personnel. If we are not able to maintain our culture, our business, financial condition and results of operations could be adversely affected.

We depend on our key personnel and other highly skilled personnel, and if we fail to attract, retain, motivate or integrate our personnel, our business, financial condition and results of operations could be adversely affected.

Our success depends in part on the continued service of our senior management team, key technical employees and other highly skilled personnel and on our ability to identify, hire, develop, motivate, retain and integrate highly qualified personnel for all areas of our organization. In the second quarter of 2023, our co-founders, Logan Green and John Zimmer, transitioned from their management roles and David Risher, a member of our board of directors, became Chief Executive Officer. From time to time, we have experienced transitions in executive leadership roles. We may not be successful in attracting and retaining qualified personnel to fulfill our current or future needs and actions we take in response to economic and other factors impacting our business may harm our reputation or impact our ability to recruit qualified personnel in the future. Also, all of our U.S.-based employees, including our management team, work for us on an at-will basis, and there is no assurance that any such employee will remain with us. Our competitors may be successful in recruiting and hiring members of our management team or other key employees, and it may be difficult for us to find suitable replacements on a timely basis, on competitive terms or at all. If we are unable to attract and retain the necessary personnel, particularly in critical areas of our business, we may not achieve our strategic goals.

We face intense competition for highly skilled personnel, especially in the San Francisco Bay Area where we have a substantial presence and need for highly skilled personnel. This competition has intensified in recent periods, and could continue to intensify for such personnel. To attract and retain top talent, we have had to offer, and we believe we will need to continue to offer, competitive compensation and benefits packages. Job candidates and existing personnel often consider the value of the equity awards they receive in connection with their employment. ~~The~~Declines ~~decline~~ in our stock price and ~~our~~ cost reduction or restructuring initiatives, which we have undertaken from time to time, may adversely affect our ability to attract and retain highly qualified personnel, and we may experience increased attrition or we may need to provide additional cash or equity compensation to retain employees. ~~Certain~~Many of our employees have received ~~significant proceeds from sales of our equity in private transactions~~ and ~~many of our employees have received and~~ may continue to receive significant proceeds from sales of our equity in the public markets, which may reduce their motivation to continue to work for us. We may need to invest significant amounts of cash and equity to attract and retain new employees and expend significant time and resources to identify, recruit, train and integrate such employees, and we may never realize returns on these investments. Additionally, changes in U.S. immigration policy may make it difficult to renew or obtain visas for any highly skilled personnel that we have hired or may hire in the future. Furthermore, our business may be materially adversely affected if legislative or administrative changes to immigration or visa laws and regulations impair our hiring processes or projects involving personnel who are not citizens of the country where the work is to be performed. If we are unable to effectively manage our hiring needs or successfully integrate new hires, and add or retain employees effectively, our efficiency, ability to meet forecasts and employee morale, productivity and retention could suffer, which could adversely affect our business, financial condition and results of operations.

Our business could be adversely impacted by changes in the Internet and mobile device accessibility of users and unfavorable changes in or our failure to comply with existing or future laws governing the Internet and mobile devices.

Our business depends on users’ access to our platform via a mobile device and the Internet. AVs rely on connectivity to perform their services; as our business with AVs expands, our business will become even more dependent on reliable connectivity service. We may operate in jurisdictions that provide limited Internet connectivity, particularly as we expand internationally. Internet access and access to a mobile device are frequently provided by companies with significant market power that could take actions that degrade, disrupt or increase the cost of users’ ability to access our platform. In addition, the Internet infrastructure that we and users of our platform rely on in any particular geographic area may be unable to support the demands placed upon it. Any such failure in Internet or mobile device accessibility, even for a short period of time, could adversely affect our results of operations.

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Moreover, we are subject to a number of laws and regulations specifically governing the Internet and mobile devices that are constantly evolving. Existing and future laws and regulations, or changes thereto, may impede the growth and availability of the Internet and online offerings, require us to change our business practices or raise compliance costs or other costs of doing business. These laws and regulations, which continue to evolve, cover taxation, privacy and data protection, information security, pricing, copyrights, distribution, mobile and other communications, advertising practices, consumer protections, web and app accessibility, antitrust and competition, the provision of online payment services, unencumbered Internet access to our offerings and the characteristics and quality of online offerings, among other things. Any failure, or perceived failure, by us to comply with any of these laws or regulations could result in damage to our reputation and brand, a loss in business and proceedings or actions against us by governmental entities or others, which could adversely impact our results of operations.

We rely on mobile operating systems and application marketplaces to make our apps available to the drivers and riders on our platform, and if we do not effectively operate with or receive favorable placements within such application marketplaces and maintain high rider reviews, our usage or brand recognition could decline and our business, financial results and results of operations could be adversely affected.

We depend in part on mobile operating systems, such as Android and iOS, and their respective application marketplaces to make our apps available to the drivers and riders on our platform. Any changes in such systems and application marketplaces that degrade the functionality of our apps or give preferential treatment to our competitors’ apps could adversely affect our platform’s usage on mobile devices. If such mobile operating systems or application marketplaces limit or prohibit us from making our apps available to drivers and riders, make changes that degrade the functionality of our apps, increase the cost of using our apps, impose terms of use unsatisfactory to us or modify their search or ratings algorithms in ways that are detrimental to us, or if our competitors’ placement in such mobile operating systems’ application marketplace is more prominent than the placement of our apps, overall growth in our rider or driver base could slow. Our apps have experienced fluctuations in the number of downloads in the past, and we anticipate similar fluctuations in the future. Any of the foregoing risks could adversely affect our business, financial condition and results of operations.

As new mobile devices and mobile platforms are released, there is no guarantee that certain mobile devices will continue to support our platform or effectively roll out updates to our apps. Additionally, in order to deliver high-quality apps, we need to ensure that our offerings are designed to work effectively with a range of mobile technologies, systems, networks and standards. We may not be successful in developing or maintaining relationships with key participants in the mobile industry that enhance drivers’ and riders’ experience. If drivers or riders on our platform encounter any difficulty accessing or using our apps on their mobile devices or if we are unable to adapt to changes in popular mobile operating systems, our business, financial condition and results of operations could be adversely affected.

We depend on the interoperability of our platform across third-party applications and services that we do not control.

We have integrations with a variety of productivity, collaboration, travel, data management and security vendors. As our offerings expand and evolve, including to the extent we continue to develop autonomous technology, we may have an increasing number of integrations with other third-party applications, products and services. Third-party applications, products and services are constantly evolving, and we may not be able to maintain or modify our platform to ensure its compatibility with third-party offerings following development changes. In addition, some of our competitors or technology partners may take actions which disrupt the interoperability of our platform with their own products or services, or exert strong business influence on our ability to, and the terms on which we operate and distribute our platform. As our respective products evolve, we expect the types and levels of competition to increase. Should any of our competitors or technology partners modify their products, standards or terms of use in a manner that degrades the functionality or performance of our platform or is otherwise unsatisfactory to us or gives preferential treatment to competitive products or services, our products, platform, business, financial condition and results of operations could be adversely affected.

Defects, errors or vulnerabilities in our applications, backend systems or other technology systems and those of third-party technology providers, or system failures and resulting interruptions in our availability or the availability of other systems and providers, could harm our reputation and brand and adversely impact our business, financial condition and results of operations.

The software underlying our platform is highly complex and may contain undetected errors or vulnerabilities, some of which may only be discovered after the code has been released. We rely heavily on a software engineering practice known as “continuous deployment,” which refers to the frequent release of our software code, sometimes multiple times per day. This practice increases the risk that errors and vulnerabilities are present in the software code underlying our platform. The third-party software that we incorporate into our platform may also be subject to errors or vulnerability. Any errors or vulnerabilities discovered in our code or from third-party software after release could result in negative publicity, a loss of users or loss of revenue and access or other performance issues. Such vulnerabilities could also be exploited by malicious actors and result in exposure of data of users on our platform, or otherwise result in a security breach or incident. We may need to expend significant financial and development resources to analyze, correct, eliminate or work around errors or defects or to address and eliminate vulnerabilities. Any failure to timely and effectively resolve any such errors, defects or vulnerabilities could adversely affect our business, financial condition and results of operations as well as negatively impact our reputation or brand.

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Further, our systems, or those of third parties upon which we rely, may experience service interruptions or degradation because of hardware and software defects or malfunctions, distributed denial-of-service and other cyberattacks, human error, earthquakes, hurricanes, floods, fires, natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks, computer viruses, ransomware, malware or other events. Our systems also may be subject to break-ins, sabotage, theft and intentional acts of vandalism, including by our own employees. Some of our systems are not fully redundant and our disaster recovery planning may not be sufficient for all eventualities. Our business interruption insurance may not be sufficient to cover all of our losses that may result from interruptions in our service as a result of systems failures and similar events.

We have experienced and will likely continue to experience system failures and other events or conditions from time to time that interrupt the availability or reduce or affect the speed or functionality of our offerings. These events have resulted in, and similar future events could result in, losses of revenue or additional costs and expenses. A prolonged interruption in the availability or reduction in the availability, speed or other functionality of our offerings could adversely affect our business and reputation and could result in the loss of users. Moreover, to the extent that any system failure or similar event results in harm or losses to the users using our platform, we may make voluntary payments to compensate for such harm or the affected users could seek monetary recourse or contractual remedies from us for their losses and such claims, even if unsuccessful, would likely be time-consuming and costly for us to address.

Our platform contains third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to provide our offerings.

Our platform and offerings contain software modules licensed to us by third-party authors under “open source” licenses. Use and distribution of open source software may entail greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability of such software may make it easier for others to compromise our platform and offerings.

Some open source licenses contain requirements that we make available source code for modifications or derivative works we create based upon the type of open source software we use, or grant other licenses to our intellectual property. If we combine our proprietary software with open source software in a certain manner, we could, under certain open source licenses, be required to release the source code of our proprietary software to the public. This would allow our competitors to create similar offerings with lower development effort and time and ultimately could result in a loss of our competitive advantages. Alternatively, to avoid the public release of the affected portions of our source code, we could be required to expend substantial time and resources to re-engineer some or all of our software.

Although we have policies and processes for using open source software to avoid subjecting our platform and offerings to conditions we do not intend, the terms of many open source licenses have not been interpreted by U.S. or foreign courts, and there is a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to provide or distribute our platform and offerings. From time to time, there have been claims challenging the ownership of open source software against companies that incorporate open source software into their solutions. As a result, we could be subject to lawsuits by parties claiming ownership of what we believe to be open source software. Moreover, we cannot assure you that our processes for controlling our use of open source software in our platform will be effective. If we are held to have breached or failed to fully comply with all the terms and conditions of an open source software license, we could face infringement or other liability, or be required to seek costly licenses from third parties to continue providing our offerings on terms that are not economically feasible, to re-engineer our platform, to discontinue or delay the provision of our offerings if re-engineering could not be accomplished on a timely basis or to make generally available, in source code form, our proprietary code, any of which could adversely affect our business, financial condition and results of operations.

Our presence outside the ~~United~~U.S. ~~States~~ and our international expansion strategy will subject us to additional costs and risks and our plans may not be successful.

Since 2017, we have provided and expanded our offerings in international markets. In July 2025, we acquired Freenow, and in October 2025, we acquired TBR. In addition, we have several international offices that support our business. We also transact internationally to source and manufacture bikes and scooters and may increase our business in international regions in the future. Operating outside of the ~~United~~U.S., ~~States~~including expansion into livery and adding taxis, private hire vehicles and executive chauffeur services to our service offerings, may require significant management attention to oversee operations over a broad geographic area with varying cultural norms and customs, in addition to placing strain on our finance, analytics, human resources, compliance, legal, engineering and operations teams. We may incur significant operating expenses and may not be successful in our international expansion for a variety of reasons, including:

•recruiting and retaining talented and capable employees in foreign countries and maintaining our company culture across all of our offices;

•competition from local incumbents that better understand the local market, may market and operate more effectively and may enjoy greater local affinity or awareness;

•differing demand dynamics, which may make our offerings less successful;

•public health concerns or emergencies, such as natural disasters, pandemics and other highly communicable diseases or viruses;

•complying with varying laws and regulatory standards, including with respect to privacy, data protection, cybersecurity, tax, trade compliance, anti-bribery and anti-corruption, antitrust, securities, environmental, employment, insurance, and local regulatory restrictions and disclosure requirements;

•ineffective legal protection of our intellectual property rights in certain countries or theft or unauthorized use or publication of our intellectual property and other confidential business information;

•obtaining any required government approvals, licenses or other authorizations;

•varying levels of Internet and mobile technology adoption and infrastructure;

•currency exchange restrictions or costs and exchange rate fluctuations;

•political, economic, or social instability, which has caused disruptions in certain of our office locations, including in Ukraine as a result of the war;

•tax policies, treaties or laws that could have an unfavorable business impact; and

•limitations on the repatriation and investment of funds as well as foreign currency exchange restrictions.

Our limited experience in operating our business internationally increases the risk that ~~any~~our ~~potential~~current and future expansion efforts ~~that we~~ may ~~undertake may~~ not be successful, which may result in shutting down certain international operations or closing certain international offices, which could result in additional costs and cash requirements, any of which may harm our business, financial condition and results of operations. IfAs we ~~invest~~have invested substantial time and resources to expand our operations internationally, ~~and~~if we are unable to manage these risks effectively, our business, financial condition and results of operations could be adversely affected.

In addition, international expansion has increased our risks in complying with laws and standards in the U.S. and other jurisdictions, including with respect to customs, anti-corruption, anti-bribery, anti-fraud, political activity, export controls and trade and economic sanctions. Continued international expansion, including possible engagement with foreign government entities and organizations as customers for our ~~Light~~rideshare, ~~Vehicle~~bikes and scooters offerings, ~~including~~taxi, ~~bike-share~~private ~~products~~hire ~~through~~vehicles ~~PBSC~~and executive chauffeur offerings, and emerging offerings may further increase such compliance risks. Our recent acquisitions further increase these risks. We cannot assure you that our employees and agents will not take actions in violation of applicable laws, for which we may be ultimately held responsible. In particular, any violation of applicable anti-corruption, anti-bribery, anti-fraud, lobbying, export controls, sanctions and similar laws could result in adverse media coverage, investigations, significant legal fees, loss of export privileges, severe criminal or civil penalties or suspension or debarment from U.S. government contracts, and/or substantial diversion of management’s attention, all of which could have an adverse effect on our reputation, brand, business, financial condition and results of operations.

We are currently subject to some foreign currency exchange risk because our international revenue, as well as costs and expenses denominated in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the U.S. dollar. Freenow conducts all of its operations outside of the U.S. through its German parent company and TBR conducts a majority of its operations, including its U.S. business, through its United Kingdom (the “U.K.”) parent company. Freenow and TBR each have subsidiaries or affiliates, which also operate in their respective local currencies. As a result, our international operations will account for a more significant portion of our overall operations, and our exposure to fluctuations in foreign currency exchange rates will increase. Because our consolidated financial statements will continue to be presented in U.S. dollars, the local currencies will be translated into U.S. dollars at the applicable exchange rates for inclusion in our consolidated financial statements, thereby increasing the foreign exchange risk.

We may not realize the anticipated long-term stockholder value of our share repurchase programs, and any failure to repurchase our Class A common stock after we have announced our intention to do so may negatively impact our stock price.

In February 2026, we authorized a new share repurchase program for the repurchase of up to $1.0 billion of the Company’s Class A common stock, in addition to amounts remaining available under our existing repurchase program under which we were authorized to repurchase a total of $750 million of the Company’s Class A common stock. Under existing or any future share repurchase programs, we may make share repurchases through a variety of methods, including open share market purchases or privately negotiated transactions, in accordance with applicable federal securities laws. Our share repurchase programs generally have no time limit, do not obligate us to repurchase any specific number of shares, and may be suspended at any time at our discretion and without prior notice. The timing and amount of repurchases, if any, will be subject to liquidity, stock price, business and market conditions, compliance with applicable legal requirements, such as Delaware surplus and solvency tests, management discretion, and other relevant factors. Any failure to repurchase stock after we have announced our intention to do so may negatively impact our reputation and investor confidence in us and may negatively impact our stock price. The existence of a share repurchase program could cause our stock price to be higher than it otherwise would be and could potentially reduce the market liquidity for our stock. Although these programs are intended to enhance long-term stockholder value, there is no assurance they will do so because the

market price of our Class A common stock may decline below the levels at which we repurchased shares and short-term stock price fluctuations could reduce the effectiveness of our repurchase programs. Repurchasing our Class A common stock will reduce the amount of cash we have available to fund working capital, capital expenditures, strategic acquisitions or business opportunities, and other general corporate requirements, and we may fail to realize the anticipated long-term stockholder value of these share repurchase programs.

Risks Related to General Economic Factors

A deterioration of general macroeconomic conditions could materially and adversely affect our business and financial results.

Our business and results of operations are subject to global economic conditions. Deteriorating macroeconomic conditions, including slower growth or recession, inflation and related high interest rates, increases to fuel and other energy costs or vehicle costs, changes in the labor market or decreases in consumer spending power or confidence, are likely to result in decreased discretionary spending and reduced demand for our platform. In addition, changes in macroeconomic conditions due to actual or proposed tariff increases could change consumer behavior and adversely affect rider demand for our platform, advertiser demand for Lyft Ads, and costs related to our operations, including but not limited to costs related to our bikes and scooters. Further, changes in corporate spending, including cost-cuts and layoffs, may adversely impact business travel, commuting and other business-related expenditures and impact our Lyft Business customers. In addition, uncertainty and volatility in the banking and financial services sectors, inflation and high interest rates, increased fuel and other energy costs, increased labor and benefits costs and increased insurance costs have, and may continue to, put pressure on economic conditions, which has led, and could lead, to greater operating expenses. For example, inflation has increased in recent years and is expected to further increase medical costs and vehicle repair costs, including increased prices of new and used vehicle parts, which has resulted in increases in our insurance costs. Similarly, these factors, as well as increased fuel costs, increase our costs as well as costs for drivers on our platform. Many of these factors are out of our control and make it difficult to accurately forecast ~~gross~~Gross ~~bookings~~Bookings, revenues and operating results, particularly in the long-term, and could negatively affect our ability to meet our target operating performance and our (and our strategic partners’) ability to make decisions about future investments and strategies. Further, we may need to make changes to our business to respond to these conditions and be able to compete effectively. For example, we have adjusted our pricing in response to competitive pressures caused by changes in our marketplace, which has in the past contributed to a decline in our revenue and may cause a decline in revenue in future quarters. An economic downturn resulting in a prolonged recessionary period would likely have a further adverse effect on our revenue, financial condition and results of operations.

Our business could be adversely affected by natural disasters, public health crises, political crises, or other unexpected events.

A significant natural disaster, such as an earthquake, fire, hurricane, tornado, flood or significant power outage, could disrupt our operations, mobile networks, the Internet or the operations of our third-party technology providers. In particular, our corporate headquarters are located in the San Francisco Bay Area, a region known for seismic activity and increasingly for fires. The impact of climate change may increase these risks. In addition, any public health crises or pandemics, other epidemics, political crises, such as terrorist attacks, war and other political or social instability and other geopolitical developments, or other catastrophic events, whether in the ~~United~~U.S. ~~States~~ or abroad, could adversely affect our operations or the economy as a whole. For example, we have an office and employees in Ukraine that have been and may continue to be adversely affected by the current war in the region, including displacement of our employees. The impact of any natural disaster, act of terrorism or other disruption to us or our third-party providers’ abilities could result in driver supply and rider demand imbalances, decreased demand for our offerings or a delay in the provision of our offerings, or increase our costs and operating expenses, which could adversely affect our business, financial condition and results of operations. All of the aforementioned risks may be further increased if our disaster recovery plans prove to be inadequate.

Risks Related to Regulatory and Legal Factors

Our business is subject to a wide range of laws and regulations, many of which are evolving, and failure to comply with such laws and regulations could harm our business, financial condition and results of operations.

We are subject to a wide variety of laws in the ~~United~~U.S. ~~States~~ and other jurisdictions in which we operate. Laws, regulations and standards governing issues such as TNCs, livery, taxis, vehicles for hire, public companies, ridesharing, worker classification, labor and employment, anti-discrimination, payments, gift cards, whistleblowing and worker confidentiality obligations, product liability, defects, recalls, personal injury, marketing, advertising, text messaging, subscription services, intellectual property, AI, securities, consumer protection, taxation, privacy, data security, competition, unionizing and collective action, antitrust, arbitration agreements and class action waiver provisions, terms of service, web and mobile application accessibility, ~~autonomous vehicles~~AVs, bike and scooter sharing, insurance, vehicle rentals, money transmittal, non-emergency medical transportation, healthcare fraud, waste, and abuse, environmental health and safety, greenhouse gas emissions and EVs, background checks, public health, anti-corruption, anti-bribery, political contributions, lobbying, import and export restrictions, trade and economic sanctions, foreign ownership and investment, foreign exchange controls and delivery of goods are often complex and subject to varying interpretations, in many cases due to their lack of specificity. As a result, their application in practice may change or develop over time through judicial decisions or as new guidance or interpretations are provided by regulatory and governing bodies, such as federal, state and local administrative agencies.

The ridesharing industry, Light Vehicle sharing industry and our business model are relatively nascent and rapidly evolving. When we introduced a peer-to-peer ridesharing marketplace in 2012, the laws and regulations in place at the time did not directly address our offerings. Laws and regulations that were in existence at that time, and some that have since been adopted, were often applied to our industry and our business in a manner that limited our relationships with drivers or otherwise inhibited the growth of our ridesharing marketplace. We have been proactively working with federal, state and local governments and regulatory bodies to ensure that our ridesharing marketplace and other offerings are available broadly in the United States and Canada. In part due to our efforts, a large majority of U.S. states have adopted laws related to TNCs to address the unique issues of the ridesharing industry. New laws and regulations and changes to existing laws and regulations continue to be adopted, implemented and interpreted in response to our industry and related technologies. As we expand our business into new markets or introduce new offerings into existing markets, regulatory bodies or courts may claim that we or users on our platform are subject to additional requirements, or that we are prohibited from conducting our business in certain jurisdictions, or that users on our platform are prohibited from using our platform, either generally or with respect to certain offerings. Certain jurisdictions and governmental entities, including airports, require us to obtain permits, pay fees or comply with certain reporting and other operational requirements to provide our ridesharing, bike and scooter sharing, and Flexdrive offerings. These jurisdictions and governmental entities may reject our applications for permits, revoke or suspend existing or deny renewals of permits to operate, delay our ability to operate, increase their fees, charge new types of fees, or impose fines and penalties, including as a result of errors in, or failures to comply with, reporting or other requirements related to our product offerings. Any of the foregoing actions by these jurisdictions and governmental entities could adversely affect our business, financial condition and results of operations.34

~~Recent~~The ~~financial~~ridesharing industry, ~~political~~bikes and ~~other~~scooters ~~events~~sharing ~~have~~industry ~~increased~~and ~~the~~our ~~level~~business ofmodel ~~regulatory~~are ~~scrutiny~~relatively onnascent ~~larger~~and ~~companies,~~rapidly ~~technology~~evolving. ~~companies~~We inhave ~~general~~been proactively working with federal, state and ~~companies~~local ~~engaged~~governments inand ~~dealings~~regulatory ~~with~~bodies ~~independent~~to ~~contractors,~~ensure ~~such~~that asour ridesharing marketplace and ~~delivery~~other ~~companies.~~offerings ~~Regulatory~~are ~~bodies~~available ~~may~~broadly ~~enact~~in ~~new~~North ~~laws~~America orand ~~promulgate~~Europe. ~~new~~New ~~regulations~~laws ~~that~~and ~~are~~regulations ~~adverse~~and changes to ~~our~~existing ~~business,~~laws ~~or,~~and ~~due~~regulations continue to ~~changes~~be adopted, implemented and interpreted in response to our ~~operations~~industry and ~~structure~~related ortechnologies. ~~partner~~As ~~relationships~~we asexpand aour ~~result~~business ofinto ~~changes~~new inmarkets ~~the~~or ~~market~~introduce ornew ~~otherwise,~~offerings ~~they~~into ~~may~~existing ~~view~~markets, ~~matters~~regulatory bodies or ~~interpret~~courts ~~laws~~may ~~and~~claim ~~regulations~~that ~~differently~~we ~~than~~or ~~they~~users ~~have~~on inour ~~the~~platform ~~past~~are subject to additional requirements, or inthat awe ~~manner~~are ~~adverse~~prohibited tofrom conducting our business. ~~See~~in ~~the~~certain ~~risk~~jurisdictions, ~~factor~~or ~~entitled~~that ~~“Challenges~~users toon ~~contractor~~our ~~classification~~platform ofare ~~drivers~~prohibited ~~that~~from ~~use~~using our platform, ~~may~~either ~~have~~generally ~~adverse~~or ~~business~~with respect to certain offerings. Certain jurisdictions and governmental entities, ~~financial~~including airports, ~~tax~~require us to obtain permits, ~~legal~~pay fees or comply with certain reporting and other ~~consequences~~operational requirements to provide our ~~business~~ridesharing, bike and scooter sharing, and Flexdrive offerings.” ~~Such~~These ~~regulatory~~jurisdictions ~~scrutiny~~and orgovernmental ~~action~~entities may ~~create~~reject ~~different~~our applications for permits, revoke or ~~conflicting~~suspend ~~obligations~~existing ~~from~~or ~~one~~deny ~~jurisdiction~~renewals of permits to ~~another~~operate, ~~and~~delay ~~may~~our ~~have~~ability ato ~~negative~~operate, ~~outcome~~increase ~~that~~their ~~could~~fees, ~~adversely~~charge ~~affect~~new ~~our~~types ~~business,~~of ~~operations~~fees, ~~financial~~or ~~condition,~~impose fines and ~~results~~penalties, ofincluding ~~operations.~~as ~~Additionally,~~a weresult ~~have~~of ~~invested~~errors ~~and~~in, ~~from~~or ~~time~~failures to ~~time~~comply wewith, ~~will~~reporting ~~continue~~or other requirements related to ~~invest~~our ~~resources~~product inofferings. anAny ~~attempt~~of tothe ~~influence~~foregoing oractions ~~challenge~~by ~~legislation~~these jurisdictions and ~~other~~governmental ~~regulatory~~entities ~~matters~~could ~~pertinent~~adversely toaffect our ~~operations~~business, ~~particularly~~financial ~~those~~condition ~~related~~and toresults ~~the~~of ~~ridesharing industry,~~ operations.

36Recent financial, political and other events have increased the level of regulatory scrutiny on larger companies, technology companies in general and companies engaged in dealings with independent contractors, such as ridesharing and delivery companies. Regulatory bodies may enact new laws or promulgate new regulations that are adverse to our business, or, due to changes in our operations and structure or partner relationships as a result of changes in the market or otherwise, they may view matters or interpret laws and regulations differently than they have in the past or in a manner adverse to our business. See the risk factor entitled “Challenges to contractor classification of drivers that use our platform may have adverse business, financial, tax, legal and other consequences to our business.” Such regulatory scrutiny or action may create different or conflicting obligations from one jurisdiction to another, and may have a negative outcome that could adversely affect our business, operations, financial condition, and results of operations. Additionally, we have invested and from time to time we will continue to invest resources in an attempt to influence or challenge legislation and other regulatory matters pertinent to our operations, particularly those related to the ridesharing industry, which may negatively impact the legal and administrative proceedings challenging the classification of drivers on our platform as independent contractors if we are unsuccessful or lead to additional costs and expenses even if we are successful. These activities may not be successful, and any negative outcomes could adversely affect our business, operations, financial condition and results of operations.

~~which~~The ~~may~~ridesharing ~~negatively~~industry ~~impact~~is ~~the~~increasingly ~~legal~~regulated. We have been subject to intense regulatory pressure from state, provincial and ~~administrative~~municipal ~~proceedings~~regulatory ~~challenging~~authorities, ~~the~~and ~~classification~~a number of ~~drivers~~them have imposed limitations on ~~our~~ridesharing ~~platform~~and asbike ~~independent~~and ~~contractors~~scooter ifsharing, and certain jurisdictions have adopted rules governing minimum driver earnings for ridesharing platforms. Other jurisdictions in which we ~~are~~currently ~~unsuccessful~~operate or ~~lead~~may want to ~~additional~~operate ~~costs~~have and ~~expenses~~could ~~even~~continue ifto consider legislation regulating driver earnings. We could also face similar regulatory restrictions from foreign regulators as we ~~are~~expand ~~successful~~operations internationally, particularly in areas where we face competition from local incumbents. ~~These~~In ~~activities~~addition, we may ~~not~~face beregulations ~~successful~~relating to new or developing technologies. For example, the EU has adopted the Artificial Intelligence Act, which imposes operational and ~~any~~regulatory ~~negative~~requirements ~~outcomes~~relating to the use of AI technologies, and other jurisdictions have adopted and may continue to adopt laws and regulations relating to AI. Adverse changes in laws or regulations at all levels of government or bans on or material limitations to our offerings could adversely affect our business, ~~operations,~~ financial condition and results of operations.

~~Our~~Certain ~~industry~~areas iswithin ~~increasingly~~our Lyft Business offerings also operate in regulated industries. WeFor ~~have~~example, ~~been~~our ~~subject~~healthcare business subjects us to ~~intense~~laws ~~regulatory~~and ~~pressure~~regulations ~~from~~(e.g., ~~state~~Medicaid, ~~provincial~~Medicare) ~~and~~that ~~municipal~~were ~~regulatory~~adopted ~~authorities~~prior ~~across~~to the ~~United~~advent ~~States~~of ~~and~~the ~~Canada,~~rideshare industry and athat ~~number~~do ofnot ~~them~~contemplate ~~have~~or ~~imposed~~address ~~limitations~~the onunique issues the ridesharing ~~and~~industry ~~bike~~faces. ~~and~~Failing ~~scooter~~to ~~sharing,~~comply ~~and~~with ~~certain~~such ~~jurisdictions~~requirements ~~have~~could ~~adopted~~lead ~~rules~~to ~~governing~~our ~~minimum~~loss ~~driver~~of ~~earnings~~Medicaid ~~for~~provider ~~ridesharing~~enrollment ~~platforms.~~status, ~~Other~~exclusion ~~jurisdictions~~from participation in ~~which~~federal weand ~~currently~~state ~~operate~~healthcare programs, or ~~may~~fines. ~~want~~In toaddition, ~~operate~~certain ~~have~~of ~~and~~Lyft ~~could~~Business’ ~~continue~~customers tomay ~~consider~~be ~~legislation~~government ~~regulating~~entities ~~driver~~or ~~earnings.~~receive Wegovernment ~~could~~funding, ~~also~~which ~~face~~exposes ~~similar~~us ~~regulatory~~to ~~restrictions~~risks ~~from~~such ~~foreign~~as ~~regulators~~the asgovernment’s weability ~~expand~~to ~~operations~~unilaterally ~~internationally~~terminate contracts, ~~particularly~~the inpublic ~~areas~~sector’s ~~where~~budgetary wecycles ~~face~~and ~~competition~~funding ~~from~~authorization, ~~local~~and ~~incumbents~~the government’s administrative and investigatory processes. InDespite ~~addition,~~our weefforts ~~may~~to ~~face~~comply with applicable laws, regulations and other obligations relating to ~~new~~our orofferings, ~~developing~~it ~~technologies.~~is ~~For~~possible ~~example,~~that ~~the~~our ~~European~~practices, ~~Union~~offerings ~~has~~or ~~adopted~~platform ~~the~~could ~~Artificial~~be ~~Intelligence~~inconsistent ~~Act~~with, ~~which~~or ~~imposes~~fail ~~operational~~or ~~and~~be ~~regulatory~~alleged ~~requirements~~to ~~relating~~fail to ~~the~~meet ~~use~~all requirements of, AIsuch ~~technologies~~laws, ~~and~~regulations ~~other~~or ~~jurisdictions~~obligations. ~~have~~Our ~~adopted~~failure, ~~and~~or ~~may~~the ~~continue~~failure by our third-party providers, customers, or partners, to ~~adopt~~comply with applicable laws ~~and~~or regulations or any other obligations relating to ~~AI.~~our ~~Adverse~~Lyft ~~changes~~Business inofferings ~~laws~~could orharm ~~regulations~~our atreputation ~~all~~and ~~levels~~brand, discourage new and existing customers, drivers, and riders from using our platform, lead to refunds of ~~government~~ride fares or ~~bans~~result onin fines or ~~material~~proceedings ~~limitations~~by togovernmental ~~our~~agencies ~~offerings~~or private claims and litigation, any of which could adversely affect our business, financial condition and results of operations.

Our success, or perceived success, and increased visibility has driven, and may continue to drive, some businesses that perceive our business model negatively to raise their concerns to local policymakers and regulators. These businesses and their trade association groups or other organizations have and may continue to take actions and employ significant resources to shape the legal and regulatory regimes in jurisdictions where we may have, or seek to have, a market presence in an effort to change such legal and regulatory regimes in ways intended to adversely affect or impede our business and the ability of drivers and riders to utilize our platform.

Any of the foregoing risks could harm our business, financial condition and results of operations.

Challenges to contractor classification of drivers that use our platform may have adverse business, financial, tax, legal and other consequences to our business.

We are regularly subject to claims, lawsuits, arbitration proceedings, administrative actions, government investigations and other legal and regulatory proceedings at the federal, state and municipal levels challenging the classification of drivers on our platform as independent contractors. The tests governing whether a driver is an independent contractor or an employee vary by governing law and are typically highly fact sensitive. Laws and regulations that govern the status and misclassification of independent contractors are subject to changes and divergent interpretations by various authorities which can create uncertainty and unpredictability for us. For more information regarding the litigation in which we have been involved, see the “Legal Proceedings” subheading in Note 10. “Commitments and Contingencies” to the consolidated financial statements included in this Annual Report on Form 10-K. ~~Further, in 2021, the U.S. Secretary of Labor expressed his view that in some cases “gig workers should be classified as employees” and that further review was ongoing.~~ On June 13, 2023, the National Labor Relations Board ~~(“NLRB”)~~ issued a ruling in Atlanta Opera, reverting back to a more expansive federal test for classifying independent contractors under the National Labor Relations Act ~~(“NLRA”)~~, the federal law that governs collective bargaining. On January 10, 2024, the U.S. Department of Labor (“USDOL”) issued a new final rule containing interpretive guidance for the classification of workers as employees or independent contractors, reverting back to a multi-factor “economic realities” test to determine if a worker was properly classified under the federal Fair Labor Standards Act ~~(“FLSA”)~~. The rule became effective on March 11, 2024, and is currently under legal challenges. WeOn ~~continue~~September ~~to maintain that drivers on our platform are independent contractors in such legal and administrative proceedings and intend to continue to defend ourselves vigorously in these matters~~4, ~~as applicable~~2025, ~~but~~the ~~our~~USDOL ~~arguments~~announced ~~may~~its ~~ultimately~~intention ~~be unsuccessful. A determination in, resolution of, or settlement of, any legal proceeding, whether we are party~~ to ~~such~~rescind ~~legal~~the ~~proceeding~~2024 ~~or not, related to driver classification matters, could harm our business, financial condition and results of operations, including as a result of:~~rule.

We continue to maintain that drivers on our platform are not employees in such legal and administrative proceedings and intend to continue to defend ourselves vigorously in these matters, as applicable, but our arguments may ultimately be unsuccessful. A determination in, resolution of, or settlement of, any legal proceeding, whether we are party to such legal proceeding or not, related to driver classification matters, could harm our business, financial condition and results of operations, including as a result of:

•monetary exposure arising from or relating to alleged failure to withhold and remit taxes, unpaid wages and wage and hour laws and requirements (such as those pertaining to failure to pay minimum wage and overtime, or to provide required breaks and wage statements), unlawful deductions, expense reimbursement, restitution, statutory and punitive damages, penalties, including related to the California Private Attorneys General Act, and government fines;

•injunctions prohibiting continuance of existing business practices;

•claims for employee benefits, social security, workers’ compensation and unemployment;

•claims of discrimination, harassment and retaliation under civil rights laws;

•claims under new or existing laws pertaining to unionizing, collective bargaining and other concerted activity (for example, ~~the~~Massachusetts ~~recent~~Question ~~passage~~3 byand ~~the~~California ~~voters~~AB ~~of Massachusetts of ballot Question 3~~1340, which ~~sets~~set up a sectoral bargaining framework between drivers and rideshare companies);

•other claims, charges or other proceedings under laws and regulations applicable to employers and employees, including risks relating to allegations of joint employer liability or agency liability; and

•harm to our reputation and brand.

In addition to the harms listed above, in the event of a determination in, resolution of, or settlement of, any legal proceeding related to driver classification matters, we may decide to, or be required to, significantly alter our existing business model and/or operations (including suspending or ceasing operations in impacted jurisdictions), our costs may increase, and we may experience adverse impacts on our ability to add qualified drivers to our platform and grow our business, which could have an adverse effect on our business, financial condition and results of operations and our ability to achieve or maintain profitability in the future.

We have been involved in numerous legal proceedings related to driver classification. We are currently involved in ~~several~~a number of putative class actions, several representative actions brought, for example, pursuant to California’s Private Attorneys General Act, several multi-plaintiff actions and thousands of individual claims, including those brought in arbitration or compelled pursuant to our Terms of Service to arbitration, challenging the classification of drivers on our platform as independent contractors. We are also involved in administrative audits related to driver classification in multiple jurisdictions. ~~See~~For ~~the~~more ~~section~~information ~~titled~~about these types of legal proceedings, please see the “Legal Proceedings” ~~for~~subheading ~~additional~~in ~~information~~Note ~~about~~10 ~~these~~“Commitments ~~types~~and ofContingencies” ~~legal~~to ~~proceedings~~the consolidated financial statements included in this Annual Report on Form 10-K.

In addition, with the breadth of our geographic scope, the classification of our drivers that utilize our platform as independent contractors may be subject to challenge in non-US jurisdictions, especially following our recent acquisitions. For example, the EU’s Platform Work Directive, which entered into force in December 2024, requires EU member states to transpose its requirements to their national laws, including enacting new national laws for determining worker classification of platform workers, and may involve differing implementation by the various member states. Such EU-wide legislative reforms may adversely affect our ability to operate our current independent contractor model within the European Economic Area.

Claims by others that we infringed their proprietary technology or other intellectual property rights could harm our business.

Companies in the markets in which we operate are frequently subject to litigation based on allegations of infringement or other violations of intellectual property rights. In addition, certain companies and rights holders seek to enforce and monetize patents or other intellectual property rights they own, have purchased or otherwise obtained. As our business continues to evolve, the possibility of intellectual property rights claims against us grows based on the following: increase in public profile, increases in the number of competitors in our markets, our continued development of new technologies, new products and services, and new intellectual property, as well as potential international expansion. In addition, various products and services of ours host, integrate, or otherwise rely on third -party content or intellectual property, including our Lyft ~~Media~~Ads efforts, which provides a platform for third-party promotional advertisements, and our marketing and brand journalism efforts. From time to time third parties may assert, and in the past have asserted, claims of infringement of intellectual property rights against us. See the ~~section titled~~ “Legal Proceedings” subheading in Note 10 “Commitments and Contingencies” to the consolidated financial statements included in this Annual Report on Form 10-K for additional information about these types of legal proceedings. In addition, third parties have sent us correspondence regarding various allegations of intellectual property infringement and, in some instances, have sought to initiate licensing discussions. Although we believe that we have meritorious defenses, there can be no assurance that we will be successful in defending against these allegations or reaching a business resolution that is satisfactory to us. Our competitors and others may now and in the future have significantly larger and more mature patent portfolios than us. In addition, we have faced, and may again in the future face, litigation involving patent holding companies or other adverse patent owners who have no relevant product or service revenue and against whom our own patents may therefore provide little or no deterrence or protection. Many potential litigants, including some of our competitors and patent-holding companies, have the ability to dedicate substantial resources to assert their intellectual property rights. Any claim of infringement by a third party, even those without merit, could cause us to incur substantial costs defending against the claim, could distract our management from our business and could require us to cease use of such intellectual property. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, we risk compromising our confidential information during this type of litigation. We may be required to pay substantial damages, royalties or other fees in connection with a claimant securing a judgment against us, we may be subject to an injunction or other restrictions that prevent us from using or distributing our intellectual property, or we may agree to a settlement that prevents us from distributing our offerings or a portion thereof, which could adversely affect our business, financial condition and results of operations.

With respect to any intellectual property rights claim, we may have to seek out a license to continue operations found to be in violation of such rights, which may not be available on favorable or commercially reasonable terms and may significantly increase our operating expenses. Some licenses may be non-exclusive, and therefore our competitors may have access to the same technology licensed to us. If a third-party does not offer us a license to its intellectual property on reasonable terms, or at all, we may be required to develop alternative, non-infringing technology or other intellectual property, which could require significant time (during which we would be unable to continue to offer our affected offerings), effort and expense and may ultimately not be successful. Any of these events could adversely affect our business, financial condition and results of operations.

Failure to protect or enforce our intellectual property rights could harm our business, financial condition and results of operations.

Our success is dependent in part upon protecting our intellectual property rights and technology (such as code, information, data, processes and other forms of information, knowhow and technology), or “intellectual property,” and as we grow, we expect to continue to develop intellectual property that is important for our existing or future business. We rely on a combination of patents, copyrights, trademarks, service marks, trade dress, trade secret laws and contractual restrictions to establish and protect our intellectual property. However, the steps we take to protect our intellectual property may not be sufficient or effective, and may vary by jurisdiction. Even if we do detect violations, we may need to engage in litigation to enforce our rights. Any enforcement efforts we undertake, including litigation, could be time-consuming and expensive and could divert management attention. While we take precautions designed to protect our intellectual property, it may still be possible for competitors and other unauthorized third parties to copy our technology, reverse engineer our data and use our proprietary information to create or enhance competing solutions and services, which could adversely affect our position in our rapidly evolving and highly competitive industry. Some license provisions that protect against unauthorized use, copying, transfer and disclosure of our technology may be unenforceable under the laws of certain jurisdictions and foreign countries. The laws of some countries do not provide the same level of protection of our intellectual property as do the laws of the U.S. and effective intellectual property protections may not be available or may be limited in foreign countries. Our domestic and international intellectual property protection and enforcement strategy is influenced by many considerations including costs, where we have business operations, where we might have business operations in the future, legal protections available in a specific jurisdiction, and/or other strategic considerations. As such, we do not have identical or analogous intellectual property protection in all jurisdictions, which could risk freedom to operate in certain jurisdictions. As we expand our international activities, our exposure to unauthorized use, copying, transfer and disclosure of proprietary information will likely increase. We may need to expend additional resources to protect, enforce or defend our intellectual property rights domestically or internationally, which could impair our business or adversely affect our domestic or international operations. We enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality agreements with our third-party providers and strategic partners. We cannot assure you that these agreements will be effective in controlling access to, and use and distribution of, our platform and proprietary information. Further, these agreements may not prevent our

3837

~~precautions designed to protect our intellectual property, it may still be possible for~~ competitors and other unauthorized third parties to copy our technology, reverse engineer our data and use our proprietary information to create or enhance competing solutions and services, which could adversely affect our position in our rapidly evolving and highly competitive industry. Some license provisions that protect against unauthorized use, copying, transfer and disclosure of our technology may be unenforceable under the laws of certain jurisdictions and foreign countries. The laws of some countries do not provide the same level of protection of our intellectual property as do the laws of the United States and effective intellectual property protections may not be available or may be limited in foreign countries. Our domestic and international intellectual property protection and enforcement strategy is influenced by many considerations including costs, where we have business operations, where we might have business operations in the future, legal protections available in a specific jurisdiction, and/or other strategic considerations. As such, we do not have identical or analogous intellectual property protection in all jurisdictions, which could risk freedom to operate in certain jurisdictions if we were to expand. As we expand our international activities, our exposure to unauthorized use, copying, transfer and disclosure of proprietary information will likely increase. We may need to expend additional resources to protect, enforce or defend our intellectual property rights domestically or internationally, which could impair our business or adversely affect our domestic or international operations. We enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality agreements with our third-party providers and strategic partners. We cannot assure you that these agreements will be effective in controlling access to, and use and distribution of, our platform and proprietary information. Further, these agreements may not prevent our competitors from independently developing technologies that are substantially equivalent or superior to our offerings. Competitors and other third parties may also attempt to access, aggregate, and/or reverse engineer our data which would compromise our trade secrets and other rights. We also enter into strategic partnerships, joint development and other similar agreements with third parties where intellectual property arising from such partnerships may be jointly-owned or may be transferred or licensed to the counterparty. Such arrangements may limit our ability to protect, maintain, enforce or commercialize such intellectual property rights, including requiring agreement with or payment to our joint development partners before protecting, maintaining, licensing or initiating enforcement of such intellectual property rights, and may allow such joint development partners to register, maintain, enforce or license such intellectual property rights in a manner that may affect the value of the jointly-owned intellectual property or our ability to compete in the market.

We may be required to spend significant resources in order to monitor and protect our intellectual property rights, and some violations may be difficult or impossible to detect. Litigation to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property. Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Our inability to protect our intellectual property and proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could impair the functionality of our platform, delay introductions of enhancements to our platform, result in our substituting inferior or more costly technologies into our platform or harm our reputation or brand. In addition, we may be required to license additional technology from third parties to develop and market new offerings or platform features, which may not be on commercially reasonable terms or at all and could adversely affect our ability to compete.

Our industry has also been subject to attempts to steal intellectual property, including by foreign actors. We, along with others in our industry, have been the target of attempted thefts of our intellectual property and may be subject to such attempts in the future. Although we take measures to protect our property, if we are unable to prevent the theft of our intellectual property or its exploitation, the value of our investments may be undermined and our business, financial condition and results of operations may be negatively impacted.

Changes in laws or regulations relating to privacy, data protection or the protection or transfer of personal data, or any actual or perceived failure by us to comply with such laws and regulations or any other obligations relating to privacy, data protection or the protection or transfer of personal data, could adversely affect our business.

We receive, transmit, store and otherwise process a large volume of personal information and other data relating to users on our platform, as well as other individuals such as our employees. Numerous local, municipal, state, federal and international laws and regulations address privacy, data protection and the collection, storing, sharing, use, disclosure and ~~protection~~other processing of certain data, including the California Online Privacy Protection Act, the Personal Information Protection and Electronic Documents Act, the Controlling the Assault of Non-Solicited Pornography and Marketing Act, Canada’s Anti-Spam Law, the Telephone Consumer Protection Act of 1991, or TCPA, the U.S. Federal Health Insurance Portability and Accountability Act of 1996, as amended by the HITECH Act, or HIPAA, Section 5(c) of the Federal Trade Commission Act, or FTC Act, the California Consumer Privacy Act, or CCPA, and the California Privacy Rights Act, or CPRA. The scope of ~~data~~these ~~protection~~ laws and regulations may continually change, through new legislation, amendments to existing legislation and changes in enforcement, and may be inconsistent from one jurisdiction to another. ~~For~~New ~~example,~~or ~~the~~modified ~~CPRA~~laws ~~requires~~or ~~new~~regulations ~~disclosures~~relating to ~~California~~privacy, ~~consumers~~data ~~and~~protection ~~affords~~or ~~such~~information ~~consumers~~security, ~~new~~particularly ~~data~~such ~~rights~~laws ~~and~~or ~~abilities~~regulations tothat ~~opt-out~~require enhanced protection of ~~certain~~data ~~sharing~~or ofnew ~~personal~~data ~~information.~~retention, ~~The~~transfer ~~CPRA~~or ~~provides~~disclosure ~~for~~obligations, ~~fines~~could ofgreatly upincrease tothe ~~$7,500~~cost ~~per~~of ~~violation,~~providing ~~which~~our ~~can~~offerings, berequire ~~applied~~significant onchanges ato ~~per-consumer~~our ~~basis.~~operations ~~Aspects~~and ofour ~~the~~data ~~CPRA~~processing practices and ~~its~~policies, ~~interpretation~~ and ~~enforcement~~require ~~remain~~us ~~unclear.~~to ~~Additionally,~~incur ~~several~~additional ~~states~~compliance-related incosts ~~the~~and ~~U.S.~~expenses, ~~including~~and ~~California~~may ~~and~~prevent ~~other~~us ~~states~~from ~~where~~providing wecertain doofferings ~~business,~~in ~~have~~certain ~~enacted~~jurisdictions. ~~legislation~~In ~~relating~~addition, toour ~~privacy~~Lyft ~~and~~Ads ~~information~~efforts ~~security~~provide third-party promotional advertisements, ~~and~~including ~~the~~those ~~U.S.~~that ~~federal~~may ~~government~~be ~~and~~personalized ~~other~~to ~~states~~users. ~~are~~Current ~~also~~law ~~contemplating~~and ~~federal~~regulations, and ~~state~~potential ~~privacy~~changes ~~legislation.~~in ~~These~~the ~~new~~law ~~and~~or ~~modified~~regulatory ~~laws~~landscape, ~~including~~limit ~~the~~and/or ~~CPRA~~prohibit activities, and ~~other~~could ~~changes~~further inlimit ~~laws~~ and/or ~~regulations~~prohibit ~~relating~~activities toin ~~privacy,~~regard ~~data~~to ~~protection~~any current and ~~information~~new ~~security,~~offerings we undertake.

39Further, as we continue to expand our offerings and user base, and as we expand into new geographies, such as in connection with our acquisition of Freenow, we will become subject to additional laws and regulations relating to privacy, data protection, and information security. For example, Freenow operates in the EU and in the U.K. Examples of laws applicable to Freenow in the EU and the U.K. are the EU General Data Protection Regulation and the U.K.’s Data Protection Act and General Data Protection Regulation, which apply to the processing of personal data in the EU and U.K., respectively. Each of these jurisdictions’ data protection regimes provides for substantial obligations applicable to the collection, use, transfer (including to the U.S.) and the processing of other personal data and imposes significant penalties for noncompliance. The EU also has adopted numerous laws and regulations relating to cybersecurity that may apply to certain Lyft subsidiaries. Expansion of our offerings may include partnerships and data sharing or transfers that could be subject to Title 28 of the U.S. Code of Federal Regulations Part 202, which prohibits or restricts certain transactions that involve bulk transfer of certain U.S. data to countries of concern and imposes significant penalties for noncompliance.

~~particularly~~Additionally, ~~any~~the ~~new~~use orof ~~modified~~our ~~laws~~Concierge orand ~~regulations~~Lyft ~~that~~Pass ~~require~~for ~~enhanced~~Public ~~protection~~Funding ofofferings ~~data~~by orhealthcare ~~new~~customers, ~~obligations~~such ~~with~~as ~~regard~~healthcare toproviders, ~~data~~health ~~retention~~plans, ~~transfer~~and ortransportation ~~disclosure~~brokers, ~~could~~subject ~~greatly~~us ~~increase~~to compliance requirements under Health Insurance Portability and Accountability Act (“HIPAA”) regarding the ~~cost~~use, collection, security, storage and disclosure of ~~providing~~individuals’ ~~our~~protected ~~offerings,~~health ~~require~~information ~~significant~~(“PHI”). ~~changes~~We tomust ~~our~~also ~~operations~~comply with HIPAA as we use and disclose the PHI of riders in our ~~data~~capacity ~~processing~~as ~~practices~~a ~~and~~Business ~~policies,~~Associate ~~may~~of ~~require~~Covered usEntities toor ~~incur~~of ~~additional~~other ~~compliance-related~~Business ~~costs~~Associates. ~~and~~Compliance ~~expenses~~obligations under HIPAA include privacy, security and ~~may~~breach ~~even~~notification ~~prevent~~obligations and could subject us ~~from~~to ~~providing~~increased ~~certain~~liability ~~offerings~~and insignificant ~~jurisdictions~~civil inpenalties ~~which~~for weany ~~currently~~unauthorized ~~operate~~uses ~~and~~or indisclosures ~~which~~of wePHI ~~may~~determined ~~operate~~to inbe ~~the~~a ~~future~~“breach.”

Further, as we continue to expand our offerings and user base, we may become subject to additional privacy-related laws and regulations. For example, in connection with the sale of our Level 5 self-driving vehicle division to Woven Planet, we have entered into certain data sharing and other agreements with Woven Planet to facilitate and accelerate the development of autonomous vehicle technology. In addition, our Lyft Media efforts provide third party promotional advertisements, including those that may be personalized to users. Changes in the law or regulatory landscape could limit or prohibit activities in regard to any new offerings we undertake. 38

AsAdditionally, ~~another~~we ~~example~~have incurred, ~~the~~and ~~collection~~expect ~~and~~to ~~storage~~continue ofto ~~data~~incur, ~~including~~significant expenses in ~~connection~~an ~~with~~effort ~~the~~to ~~use~~comply ofwith ~~our~~privacy, ~~Concierge~~data protection and ~~Lyft~~information ~~Pass~~security ~~for~~standards ~~Public~~imposed ~~Funding offerings~~ by ~~healthcare customers~~law, ~~subjects~~regulation usor tocontractual ~~compliance~~obligations. ~~requirements~~In ~~under~~particular, ~~HIPAA.~~with ~~HIPAA~~numerous laws and ~~its implementing~~ regulations ~~contain~~imposing ~~requirements~~new ~~on Covered Entities~~ and ~~Business~~relatively ~~Associates~~burdensome obligations, ~~each~~and aswith ~~defined~~substantial ~~under~~uncertainty ~~HIPAA,~~over ~~regarding~~their ~~the~~interpretation ~~use,~~and ~~collection~~application, ~~security,~~we ~~storage~~may ~~and~~face ~~disclosure~~challenges ofin ~~individuals’~~addressing ~~protected~~their ~~health~~requirements ~~information,~~and ormaking ~~PHI.~~necessary ~~Contracted~~changes ~~healthcare~~to ~~customers~~our ~~including~~policies ~~healthcare~~and ~~providers~~practices, ~~health plans,~~ and ~~transportation~~may ~~brokers~~incur ~~using~~significant ~~our~~costs ~~Concierge~~and orexpenses ~~Lyft~~in ~~Pass~~our ~~for~~efforts ~~Public~~to ~~Funding~~do ~~offerings are either Covered Entities or Business Associates under HIPAA~~so. WeAs ~~must also comply with HIPAA as~~ we ~~use~~consider ~~and~~expansion ~~disclose the PHI~~ of ~~riders~~business inofferings ~~our~~and ~~capacity~~markets, and as alaws ~~Business~~and ~~Associate~~regulations ofchange, ~~Covered~~we ~~Entities~~expect orto ofincur ~~other~~additional ~~Business~~costs ~~Associates.~~related ~~Compliance~~to ~~obligations under HIPAA include~~ privacy, ~~security~~data protection and ~~breach~~information ~~notification~~security ~~obligations~~standards and ~~could~~protocols ~~subject~~imposed usby tolaws, ~~increased~~regulations, ~~liability~~industry ~~for~~standards ~~any unauthorized uses~~ or ~~disclosures~~contractual ofobligations ~~PHI~~related ~~determined~~ to besuch aofferings ~~“breach.”~~and Ifface weadditional ~~knowingly~~risks ~~breach~~that ~~the~~such ~~HITECH~~expansion ~~Act’s requirements, we~~ could be ~~exposed~~inconsistent towith, ~~criminal~~or ~~liability.~~fail Aor ~~breach~~be ofalleged ~~our~~to ~~safeguards~~fail ~~and processes could expose us~~ to ~~significant civil penalties that range from $100 - $72~~meet,~~000~~ ~~per~~all ~~violation,~~requirements ~~with an annual maximum per violation calendar year cap~~ of ~~over~~such $2laws,~~000,000~~ ~~for~~regulations ~~“willful~~or ~~neglect” violations, and the possibility of civil litigation~~obligations.

Additionally, we have incurred, and expect to continue to incur, significant expenses in an effort to comply with privacy, data protection and information security standards imposed by law, regulation, or contractual obligations. In particular, with laws and regulations such as the CCPA and CPRA imposing new and relatively burdensome obligations, and with substantial uncertainty over the interpretation and application of these and other laws and regulations, we may face challenges in addressing their requirements and making necessary changes to our policies and practices, and may incur significant costs and expenses in an effort to do so. In particular, with regard to HIPAA, we may incur increased costs as we perform our obligations to our healthcare customers under our agreements with them. As we consider expansion of business offerings and markets and as laws and regulations change, we expect to incur additional costs related to privacy, data protection and information security standards and protocols imposed by laws, regulations, industry standards or contractual obligations related to such offerings and face additional risks that such expansion could be inconsistent with, or fail or be alleged to fail to meet all requirements of such laws, regulations or obligations.

Despite our efforts to comply with applicable laws, regulations and other obligations relating to privacy, data protection and information security, it is possible that our practices, offerings or platform could be inconsistent with, or fail or be alleged to fail to meet all requirements of, such laws, regulations or obligations. Our failure, or the failure by our third-party providers or partners, to comply with applicable laws, regulations or other actual or asserted obligations relating to privacy, data protection or information security, or any compromise of security that results in unauthorized access to, or unauthorized loss, unavailability, corruption, use, release or other processing of personal information or other driver or rider data, or the perception that any of the foregoing types of failure or compromise has occurred, could damage our reputation, discourage new and existing drivers and riders from using our platform or result in fines or proceedings by governmental agencies and private claims and litigation, any of which could adversely affect our business, financial condition and results of operations. Additionally, the perception of concerns relating to privacy, data protection or information security, whether or not valid, may harm our reputation and brand and adversely affect our business, financial condition and results of operations.

We are regularly subject to claims, lawsuits, government and regulatory investigations and other proceedings that may adversely affect our business, financial condition and results of operations.

We are regularly subject to claims, lawsuits, arbitration proceedings, government and regulatory investigations and other legal and regulatory proceedings, and in some situations we have received subpoenas and requests for documents and information, in the ordinary course of business, including those involving personal injury, property damage, worker classification, driver earnings, labor and employment, anti-discrimination, commercial disputes, antitrust, competition, consumer complaints (e.g., claims brought under the ~~TCPA~~the Telephone Consumer Protection Act of 1991 or other laws), intellectual property disputes, compliance with regulatory requirements, securities laws, and other matters, and we may become subject to additional types of claims, lawsuits, government investigations and legal or regulatory proceedings as our business grows and as we deploy new offerings, including proceedings related to product liability or our acquisitions, data privacy, advertising, securities issuances or business practices. We are also regularly subject to claims, lawsuits, arbitration proceedings, government investigations and other legal and regulatory proceedings seeking to hold us liable for the actions of independent contractor drivers on our platform. ~~See~~For ~~the~~more ~~section~~information ~~titled~~regarding these types of legal proceedings, please see the “Legal Proceedings” ~~for~~subheading ~~additional~~in ~~information~~Note ~~about~~10 ~~these~~“Commitments ~~types~~and ofContingencies” ~~legal~~to ~~proceedings~~the consolidated financial statements included in this Annual Report on Form 10-K.

The results of any such claims, lawsuits, arbitration proceedings, government investigations or other legal or regulatory proceedings cannot be predicted with certainty. Any claims against us, whether meritorious or not, could be time-consuming, result in costly litigation, be harmful to our reputation, require significant management attention and divert significant resources. Determining reserves for our pending litigation is a complex and fact-intensive process that requires significant subjective judgment and speculation. It is possible that a resolution of one or more such proceedings could result in substantial damages, settlement costs, fines and penalties that could adversely affect our business, financial condition and results of operations. These proceedings could also result in harm to our reputation and brand, sanctions, consent decrees, injunctions or other orders requiring a change in our business practices. Any of these consequences could adversely affect our business, financial condition and results of operations. Furthermore, under certain circumstances, we have contractual and other legal obligations to indemnify and to incur legal expenses on behalf of our business, commercial, and government partners and current and former directors and officers.

A determination in, resolution of, or settlement of, any legal proceeding, whether we are party to such legal proceeding or not, that involves our industry, could harm our business, financial condition and results of operations. For example, a determination related to driver classification matters, whether we are party to such determination or not, could cause us to incur significant expenses or require substantial changes to our business model.

In addition, we regularly include arbitration provisions in our Terms of Service with the drivers and riders and other parties on our platform. These provisions are intended to streamline the litigation process for all parties involved, as arbitration can in some cases be faster and less costly than litigating disputes in state or federal court. However, arbitration may become more costly for us or the volume of arbitration may increase and become burdensome, and the use of arbitration provisions may subject us to certain risks to our reputation and brand, as these provisions have been the subject of increasing public scrutiny. In order to minimize these risks to our reputation and brand, we have in the past and may continue to limit our use of arbitration provisions or be required to do so in a legal or regulatory proceeding, either of which could increase our litigation costs and exposure. For example, effective May 2018, we ended mandatory arbitration of sexual misconduct claims by users and employees.

Further, with the potential for conflicting rules regarding the scope and enforceability of arbitration on a state-by-state basis, as well as between state and federal law or between U.S. and foreign law, there is a risk that some or all of our arbitration provisions could be subject to challenge or may need to be revised to exempt certain categories of protection. If our arbitration agreements were found to be unenforceable, in whole or in part, or specific claims are required to be exempted from arbitration, we could experience an increase in our costs to litigate disputes and the time involved in resolving such disputes, and we could face increased exposure to potentially costly lawsuits, each of which could adversely affect our business, financial condition and results of operations.

As we expand our offerings, we may become subject to additional laws and regulations, and any actual or perceived failure by us to comply with such laws and regulations or manage the increased costs associated with such laws and regulations could adversely affect our business, financial condition and results of operations.

As we continue to expand our offerings and user base, we may become subject to additional laws and regulations, which may differ or conflict from one jurisdiction to another. Many of these laws and regulations were adopted prior to the advent of our industry and related technologies and, as a result, do not contemplate or address the unique issues faced by our industry.

For example, contracting with healthcare entities and transportation brokers representing healthcare entities may subject us to certain healthcare related laws and regulations. These laws and regulations may impose additional requirements on us and our platform in providing access to rides for healthcare customers. Additional requirements may arise related to the collection and storage of data and systems infrastructure design, all of which could increase the costs associated with our offerings to healthcare customers. With respect to healthcare rides matched through the Lyft Platform and provided to Medicaid or Medicare Advantage beneficiaries, we are subject to healthcare fraud, waste and abuse laws that impose penalties for violations. Significant violations of such laws could lead to our loss of Medicaid provider enrollment status and could also potentially result in exclusion from participation in federal and state healthcare programs. Further, we may in certain circumstances be or become considered a government contractor with respect to certain of our services, which would expose us to certain risks such as the government’s ability to unilaterally terminate contracts, the public sector’s budgetary cycles and funding authorization, and the government’s administrative and investigatory processes.

Despite our efforts to comply with applicable laws, regulations and other obligations relating to our offerings, it is possible that our practices, offerings or platform could be inconsistent with, or fail or be alleged to fail to meet all requirements of, such laws, regulations or obligations. Our failure, or the failure by our third-party providers or partners, to comply with applicable laws or regulations or any other obligations relating to our offerings, could harm our reputation and brand, discourage new and existing drivers and riders from using our platform, lead to refunds of ride fares or result in fines or proceedings by governmental agencies or private claims and litigation, any of which could adversely affect our business, financial condition and results of operations.

If we fail to maintain an effective system of disclosure controls or internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002, or (the “Sarbanes-Oxley Act”), and the listing standards of the Nasdaq Global Select Market. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended, and anticipate that we will continue to expend, significant resources, including accounting-related costs and significant management oversight. If any of our controls and systems do not perform as expected, we may experience deficiencies in our controls and we may not be able to meet our financial reporting obligations.

41Our current controls and any new controls that we develop may become inadequate because of changes in the conditions in our business, including increased complexity resulting from any international expansion, including our acquisitions of Freenow and TBR, flexible work arrangements, new offerings on our platform or from strategic transactions. Further, weaknesses or deficiencies in our disclosure controls or our internal control over financial reporting have been discovered in the past, and other weaknesses or deficiencies may be discovered in the future. Our disclosure controls and procedures or our internal control over financial reporting are not expected to prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Due to inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our results of operations or cause us to fail to meet our reporting obligations and ~~improve~~may ~~the~~result ~~effectiveness~~in a restatement of our ~~disclosure~~financial statements for prior periods. Furthermore, ineffective controls ~~and~~could ~~procedures~~negatively impact management’s assessment of our control environment. Any failure to implement and maintain effective internal control over financial reporting, wecould ~~have~~also ~~expended,~~adversely affect the results of periodic management evaluations and ~~anticipate~~annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we ~~will~~are ~~continue~~required to ~~expend,~~include ~~significant~~in ~~resources,~~our ~~including~~periodic ~~accounting-related~~reports. ~~costs~~Ineffective disclosure controls and ~~significant~~procedures ~~management~~and ~~oversight.~~internal Ifcontrol ~~any~~over offinancial reporting could also cause errors in our ~~controls~~reporting. ~~and~~We ~~systems~~may doalso ~~not~~be ~~perform~~subject asto ~~expected~~public scrutiny, weregulatory ~~may~~inquiries ~~experience~~and ~~deficiencies~~legal proceedings if such failure results in an error in our ~~controls~~financial ~~and~~reporting. In addition, if we are unable to continue to meet these requirements, we may not be able to ~~meet~~remain ~~our~~listed ~~financial~~on ~~reporting~~the ~~obligations~~Nasdaq Global Select Market.

Our current controls and any new controls that we develop may become inadequate because of changes in the conditions in our business, including increased complexity resulting from any international expansion, flexible work arrangements, new offerings on our platform or from strategic transactions, including acquisitions and divestitures. Further, weaknesses or deficiencies in our disclosure controls or our internal control over financial reporting have been discovered in the past, and other weaknesses or deficiencies may be discovered in the future. Our disclosure controls and procedures or our internal control over financial reporting are not expected to prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Due to inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our results of operations or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we are required to include in our periodic reports. Ineffective disclosure controls and procedures and internal control over financial reporting could also cause errors in our reporting. For example, our management determined that the clerical error in our forward-looking, non-GAAP directional commentary for fiscal year 2024 contained in our initial press release issued on February 13, 2024 resulted in the conclusion that our disclosure controls and procedures were not effective as of December 31, 2023 at a reasonable assurance level. While we have remediated the deficiency that resulted in the error, failure of our disclosure controls and procedures or internal control over financial reporting to be effective could cause investors to lose confidence in our reported financial and other information, which would likely adversely affect the market price of our Class A common stock. We may also be subject to public scrutiny, regulatory inquiries and legal proceedings if such failure results in an error in our financial reporting. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the Nasdaq Global Select Market.

Our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could have an adverse effect on our business, financial condition and results of operations and could cause a decline in the market price of our Class A common stock.

Changes in U.S. and foreign tax laws could have a material adverse effect on our business, cash flow, results of operations or financial conditions.

We are subject to tax laws, regulations, and policies of the U.S. federal, state, and local governments and of comparable taxing authorities in foreign jurisdictions. As various levels of governments and international organizations become increasingly focused on tax reform, changes in tax laws, as well as other factors, could cause us to experience fluctuations in our tax obligations and effective tax rates and otherwise adversely affect our tax positions and/or our tax liabilities. For example, the ~~United~~U.S. ~~States~~ passed the Inflation Reduction Act in 2022, which introduced a 1% excise tax on stock buybacks that ~~could~~has ~~impact~~impacted us in connection with athe ~~settlement~~settlements of ~~the~~ capped call transactions. ~~Further, a provision of the Tax Cuts~~ and ~~Jobs~~has ~~Act~~increased ~~of 2017 eliminated~~ the ~~option~~cost to ~~deduct~~us ~~research~~of ~~and~~share ~~development~~repurchases, ~~expenditures~~which incould ~~the~~reduce ~~year incurred and requires~~ the ~~capitalization~~number ~~and amortization~~ of ~~such~~shares ~~costs~~we repurchase. ~~The~~Further, ~~Organization~~the Organisation for Economic ~~Cooperation~~Co-operation and Development ~~(“OECD”)~~ released Pillar Two model rules defining a 15% global minimum tax for large multinational companies. ~~The~~While ~~OECD~~the ~~continues~~Pillar toTwo ~~release~~Framework ~~additional~~has ~~guidance~~been ~~and~~or ~~countries~~is ~~are~~expected into ~~various~~be ~~stages~~implemented ofin ~~implementation~~the ~~with~~tax ~~widespread~~laws ~~adoption~~ of many jurisdictions, the ~~Pillar~~current ~~Two~~U.S. ~~Framework~~administration ~~expected~~has insignaled ~~the~~push-back ~~near~~against ~~future~~Pillar Two. Any of these or other developments or changes in tax laws or rulings in jurisdictions in which we operate could adversely affect our effective tax rate and our operating results.

Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, gross receipts, value added or similar taxes and may successfully impose additional obligations on us, and any such assessments or obligations could adversely affect our business, financial condition and results of operations.

The application of indirect taxes, such as payroll tax, sales and use tax, value-added tax, goods and services tax, business tax and gross receipts tax, to businesses like ours and to drivers is a complex and evolving issue. ~~Many of the fundamental statutes and regulations that impose these taxes were established before the adoption and growth of the Internet and e-commerce.~~ Significant judgment is required on an ongoing basis to evaluate applicable tax obligations, and as a result, amounts recorded are estimates and are subject to adjustments. In many cases, the ultimate tax determination is uncertain because it is not clear how new and existing statutes might apply to our business or to drivers’ businesses. For example, we have an ongoing dispute with the City and County of San Francisco (“San Francisco”) regarding the application of gross receipts taxes to businesses like ours. For more information regarding this matter, please see the “Legal Proceedings” subheading in Note 10. Commitments and Contingencies to the consolidated financial statements included in this Annual Report on Form 10-K.

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Inongoing ~~addition~~basis to evaluate applicable tax obligations, ~~local~~and ~~governments~~as a result, amounts recorded are ~~increasingly~~estimates ~~looking~~and ~~for~~are ~~ways~~subject to ~~increase~~adjustments. ~~revenue,~~Tax ~~which~~authorities ~~has~~have ~~resulted~~challenged inand ~~discussions~~may ~~about~~continue ~~tax~~to ~~reform~~challenge ~~and~~our ~~other~~calculation, ~~legislative~~reporting, ~~action~~or tocollection ~~increase~~of ~~tax~~such ~~revenue~~taxes, ~~including~~and ~~through~~may ~~indirect~~require us or our drivers to collect taxes in jurisdictions in which we do not currently do so. For example, itwe ishave ~~becoming~~an ~~more~~ongoing ~~common~~dispute ~~for~~with ~~local~~the ~~governments~~City toand ~~impose~~County ~~per~~of ~~trip~~San ~~fees~~Francisco ~~specifically~~(“San onFrancisco”) ~~TNC~~regarding ~~rides.~~the ~~Such~~application of gross receipts taxes ~~may~~to ~~adversely~~businesses ~~affect~~like ~~our~~ours. ~~financial~~For ~~condition~~more information regarding this matter, please see the “Legal Proceedings” subheading in Note 10 “Commitments and ~~results~~Contingencies” ofto ~~operations~~the consolidated financial statements included in this Annual Report on Form 10-K.

In ~~certain jurisdictions~~addition, welocal ~~collect~~governments ~~and~~are ~~remit~~increasingly ~~indirect~~looking ~~taxes.~~for ~~However,~~ways ~~tax authorities have raised and may continue~~ to ~~raise~~increase ~~questions about or challenge or disagree with our calculation~~revenue, ~~reporting,~~which orhas ~~collection~~resulted ~~of taxes, and may require us to collect taxes~~ in ~~jurisdictions~~tax inreform ~~which~~and weother dolegislative ~~not~~action ~~currently do so or~~ to ~~remit~~increase ~~additional~~tax ~~taxes and interest~~revenue, ~~and~~including ~~could~~through ~~impose~~indirect ~~associated~~taxes ~~penalties~~ and ~~interest~~fees. AFor ~~successful~~example, ~~assertion~~it byis ~~one~~becoming or more ~~tax~~common ~~authorities~~for ~~requiring~~local usgovernments to ~~collect~~impose ~~taxes~~per intrip ~~jurisdictions~~taxes ~~in which we do not currently do so~~ or tofees ~~collect~~specifically ~~additional taxes in a jurisdiction in which we currently collect taxes, could result in substantial tax liabilities, including taxes~~ on ~~past~~TNC transactions, as well as penalties and interest, and could discourage drivers and riders from utilizing our offerings or could otherwise harm our business, financial condition, and results of operationsrides. Although we have reserved for potential payments of possible past tax liabilities in our consolidated financial statements, if these liabilities exceed such reserves, our financial condition could be harmed.

Additionally, one or more states, localities or other taxing jurisdictions may seek to impose additional reporting, record-keeping or indirect tax collection obligations on businesses like ours. For example, taxing authorities in the ~~United~~U.S. ~~States~~ and other countries have identified e-commerce platforms as a means to calculate, collect, and remit indirect taxes for transactions taking place over the Internet, and are considering related legislation. New legislation may require us or drivers to incur substantial costs in order to comply, including costs associated with tax calculation, collection, remittance and audit requirements, which could discourage drivers and riders from utilizing our offerings and make our offerings less attractive and could adversely affect our business, financial condition and results of operations.

AsOperating as a ~~result~~public ofcompany ~~these~~requires ~~and~~us ~~other~~to ~~factors,~~incur ~~the~~substantial ~~ultimate~~costs ~~amount of tax obligations owed may differ from the amounts recorded in our financial statements~~ and ~~any~~requires ~~such~~substantial ~~difference~~management ~~may adversely impact our results of operations in future periods in which we change our estimates of our tax obligations or in which the ultimate tax outcome is determined~~attention.

~~Operating~~As a public company, we incur substantial legal, accounting and other expenses that we did not incur as a ~~public~~private company. ~~requires~~For usexample, we are subject to ~~incur~~the ~~substantial~~reporting ~~costs~~requirements of the Exchange Act, the applicable requirements of the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and ~~requires~~Consumer ~~substantial~~Protection ~~management~~Act, ~~attention~~the rules and regulations of the SEC and the listing standards of the Nasdaq Stock Market. InFor ~~addition~~example, ~~certain~~the ~~members~~Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business, financial condition and results of operations. We are also required to maintain effective disclosure controls and procedures and internal control over financial reporting. Compliance with these rules and regulations has increased and will continue to increase our ~~management~~legal ~~team~~and ~~have~~financial ~~limited~~compliance ~~experience~~costs, ~~managing~~and increase demand on our systems. In addition, as a public company, we have in the past and may in the future be subject to stockholder activism, which can lead to substantial additional costs, distract management and impact the manner in which we operate our business. Furthermore, if any issues in complying with those requirements are identified, we may incur additional costs rectifying those or new issues, and the existence of these issues could adversely affect our reputation or investor perceptions of it.

AsClimate-related afactors ~~public~~may ~~company,~~have ~~we incur substantial legal, accounting and other expenses that we did not incur as~~ a ~~private company. For example, we are subject to the reporting requirements of the Exchange Act, the applicable requirements of the Sarbanes~~long-~~Oxley~~term ~~Act,~~impact the Dodd-Frank Wall Street Reform and Consumer Protection Act, the rules and regulations of the SEC and the listing standards of the Nasdaq Stock Market. For example, the Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business, financial condition and results of operations. We are also required to maintain effective disclosure controls and procedures and internal control over financial reporting. Compliance with these rules and regulations has increased and will continue to increase our legal and financial compliance costs, and increase demand on our ~~systems. In addition, as a public company, we may be subject to stockholder activism, which can lead to substantial additional costs, distract management and impact the manner in which we operate our~~ business ~~in ways we cannot currently anticipate~~. As a result of disclosure of information in filings required of a public company, our business and financial condition will become more visible, which may result in threatened or actual litigation, including by competitors. Furthermore, if any issues in complying with those requirements are identified, we may incur additional costs rectifying those or new issues, and the existence of these issues could adversely affect our reputation or investor perceptions of it.

~~Certain~~We ~~members~~have ofestablished environmental programs, such as requiring our ~~management~~suppliers ~~team~~to ~~have~~ensure ~~limited~~the ~~experience~~efficient ~~managing~~use aof ~~publicly~~raw ~~traded~~materials, ~~company~~water, ~~interacting~~and ~~with~~energy ~~public~~resources ~~company~~via ~~investors~~our Supplier Code of Conduct, and ~~complying~~we ~~with~~recognize ~~the~~that ~~increasingly~~there ~~complex~~are ~~laws~~inherent ~~pertaining~~climate-related torisks ~~public~~wherever ~~companies.~~business ~~Our~~is ~~management~~conducted. ~~team~~For ~~may~~example, ~~not~~our ~~successfully~~San orFrancisco, ~~efficiently~~California ~~manage~~headquarters ~~being~~is aprojected ~~public~~to ~~company~~be ~~subject~~vulnerable to ~~significant~~future ~~regulatory~~water ~~oversight~~scarcity and ~~reporting~~sea ~~obligations~~level ~~under~~rise ~~the~~due ~~federal~~to ~~securities~~climate ~~laws~~change, ~~and~~as ~~the~~well ~~continuous~~as ~~scrutiny~~increasing frequency of ~~securities~~other ~~analysts~~climate-related events including wildfires and ~~investors~~associated power shut-offs. ~~These~~Similar ~~obligations~~risks ~~and~~may ~~constituents~~exist ~~require~~in ~~significant~~other ~~attention~~regions ~~from~~as ~~our~~well. ~~senior~~Climate-related ~~management~~events, ~~and~~including ~~could~~the ~~divert~~increasing frequency of extreme weather events and their ~~attention~~impact ~~away~~on ~~from~~critical infrastructure in the ~~day-to-day~~U.S. ~~management~~and ofelsewhere, have the potential to disrupt our business, ~~which~~including ~~could~~our ~~adversely~~available ~~affect~~supply of drivers, our third-party suppliers, and the business of our customers, ~~financial~~and ~~condition~~may cause us to experience higher attrition, losses and ~~results~~additional ofcosts to maintain or resume operations. Further, climate change is expected to increase the frequency and severity of certain such events, as well as contribute to chronic changes (such as changes to weather patterns) that may also impact the behaviors of drivers and riders or infrastructure on which we rely.

~~Climate~~Additionally, ~~change~~we are or may ~~have~~become asubject ~~long~~to emerging climate-~~term~~related policies such as California’s Clean Miles Standard and Incentive Program that imposes certain greenhouse gas and EV requirements on the TNC industry, and California climate-related reporting requirements such as California’s Senate Bill 253 (SB 253), Senate Bill 261 (SB 261) and Senate Bill 219 (SB 219). Massachusetts, New York City and Toronto are developing or have developed rules to address the environmental impact of rideshare. In the EU, the Corporate Sustainability Reporting Directive (“CSRD”), which was adopted in 2022 and significantly amended in 2025, imposes requirements on certain companies to disclose information regarding certain environmental, social and governance practices. While we have assessed that we will not be in scope for CSRD in 2026, we will continue to monitor and evaluate as our business in the EU grows. Further, other jurisdictions are likely to consider similar rules, regulations and/or reporting requirements in the future. Efforts to comply with these policies and reporting requirements are likely to increase our costs, including costs related to reporting, the implementation of extensive internal controls processes and procedures regarding matters that have not been subject to such levels of controls in the past, and impose increased oversight obligations on our management and board of directors, as well as require us to hire third party experts. Any failure to meet the requirements could impact our ability to operate in the applicable jurisdiction. Failure to comply could also harm our reputation and brand.

WeAs ~~have~~part ~~established environmental programs, such as requiring our suppliers to ensure the efficient use~~ of ~~raw materials, water, and energy resources via~~ our ~~Supplier~~long-term ~~Code~~strategies ofto ~~Conduct,~~address ~~and we recognize that there are inherent~~ climate~~-related~~ risks ~~wherever business is conducted. For example, our San Francisco, California headquarters is projected to be vulnerable to future water scarcity~~ and ~~sea level rise due to~~ climate ~~change~~regulation, aswhich ~~well~~we asbelieve ~~climate-related~~includes ~~events~~market ~~including~~shifts ~~wildfires~~toward ~~and~~EVs ~~associated power shut-offs. Climate-related events, including the increasing frequency of extreme weather events~~ and ~~their~~lower ~~impact on critical infrastructure in the U.S. and elsewhere, have the potential to disrupt our business, our third~~carbon-~~party~~based ~~suppliers, and the~~ business ~~of our customers~~models, ~~and may cause us to experience higher attrition, losses and additional costs to maintain or resume operations. Additionally,~~ we ~~are~~often ~~subject~~advocate tofor ~~emerging~~EV ~~climate~~programs ~~change policies such as California’s Clean Miles Standard and Incentive Program~~ that ~~imposes~~can ~~certain~~be ~~greenhouse~~efficiently ~~gas~~accessed ~~and~~by EVdrivers requirements on our industry, and California climate-related reporting requirements such as California’s Senate Bill 253 (SB 253), Senate Bill 261 (SB 261) and Senate Bill 219 (SB 219). Massachusetts, New York City and Toronto are developing or have developed and implemented rules to address the environmental impact of rideshare, and Illinois, New York and Washington are debating climate-related reporting requirements similar to California’s. Further, other jurisdictions are likely to consider similar rules, regulations and/or

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~~reporting~~on ~~requirements~~our inplatform ~~the~~and ~~future.~~rental ~~Efforts~~car tooperators. ~~comply~~Any ~~with~~failure ~~these~~of ~~policies~~such ~~and~~programs ~~reporting~~to ~~requirements~~address ~~are~~EV ~~likely~~capital tocosts, ~~increase~~EV ~~our~~charging costs, and ~~any~~EV ~~failure~~charging toinfrastructure ~~meet~~in the ~~requirements~~context of TNCs’ unique needs could ~~impact~~challenge our ability to ~~operate~~progress intoward ~~the~~internal ~~applicable~~and ~~jurisdiction~~external EV targets. ~~Failure~~Furthermore, these EV programs are asset-intensive and require significant capital investments and recurring costs, including debt payments, maintenance, depreciation, asset life and asset replacement costs, and if we are not able to ~~comply~~maintain ~~could~~sufficient ~~also~~levels ~~harm~~of utilization of such assets or such offerings are otherwise not successful, our ~~reputation~~investments may not generate sufficient returns and ~~brand~~our financial condition may be adversely affected. InIf ~~addition~~we are not able to allocate sufficient capital or other resources to these programs and achievement of these goals, ~~the~~we ~~SEC~~may ~~has~~not ~~proposed~~be ~~climate~~able ~~rules~~to ~~that~~make ~~will~~progress ~~require~~toward ~~disclosure~~or ~~regarding~~achieve ~~climate~~such ~~related~~commitments ~~information~~and goals in ~~our~~a ~~annual~~timely ~~report~~manner or at all, ~~including~~or ~~material~~we ~~climate~~may ~~related~~need ~~risks~~to modify or terminate certain programs or goals. We may also enter into arrangements with third parties for financing, ~~greenhouse~~leasing ~~gas~~or ~~emissions~~otherwise, ~~material~~to ~~climate~~enable ~~related~~us ~~goals~~to meet our commitments and ~~targets~~other aslegal ~~well~~or asregulatory ~~governance~~requirements. ~~related~~Such transactions may require us to ~~climate~~provide ~~related~~guarantees ~~risks~~for financing. ~~These~~If ~~rules~~we ~~have~~fail, ~~been~~or ~~voluntarily~~are ~~stayed~~perceived byto ~~the~~fail, ~~SEC~~to ~~pending~~make ~~judicial~~such ~~review~~progress or achievements, ~~but~~or to maintain environmental practices that meet evolving stakeholder expectations, or if ~~implemented~~we revise any of our commitments, ~~will~~initiatives, ~~require~~or ~~significant~~goals, ~~management~~our ~~time~~brand and ~~attention~~reputation ascould ~~well~~be asharmed ~~increased~~and ~~compliance~~we ~~costs.~~may face criticism from the media or our stakeholders, and our business, financial condition and results of operations could be adversely affected.

We often advocate for EV programs that can be efficiently accessed by drivers on our platform and rental car operators, and any failure of such programs to address EV capital costs, EV charging costs, and EV charging infrastructure in the context of transportation network companies’ unique needs could challenge our ability to progress toward internal and external EV targets. Furthermore, these EV programs are asset-intensive and require significant capital investments and recurring costs, including debt payments, maintenance, depreciation, asset life and asset replacement costs, and if we are not able to maintain sufficient levels of utilization of such assets or such offerings are otherwise not successful, our investments may not generate sufficient returns and our financial condition may be adversely affected. If we are not able to allocate sufficient capital or other resources to these programs and achievement of these goals, we may not be able to make progress toward or achieve such commitments and goals in a timely manner or at all, or we may need to modify or terminate certain programs or goals. We may also enter into arrangements with third parties for financing, leasing or otherwise, to enable us to meet our commitments and other legal or regulatory requirements. Such transactions may require us to provide guarantees for financing. We may also benefit from certain tax credits for EVs and, if such tax credits expire or are terminated or we are otherwise unable to use them, we may not realize the benefits we have planned and our business and financial condition and results of operations may be negatively affected. If we fail, or are perceived to fail, to make such progress or achievements, or to maintain environmental practices that meet evolving stakeholder expectations, or if we revise any of our commitments, initiatives, or goals, our brand and reputation could be harmed and we may face criticism from the media or our stakeholders, and our business, financial condition and results of operations could be adversely affected.

Risks Related to Financing and Transactional Factors

We may require additional capital, which may not be available on terms acceptable to us or at all, and which could reduce our ability to compete and could harm our business.

Historically, we funded our capital-intensive operations and capital expenditures primarily through equity and debt issuances and cash generated from our operations. To support our growing business, we must have sufficient capital to ~~continue~~meet ~~to make significant investments in~~ our ~~offerings,~~anticipated ~~including~~cash ~~potential~~needs ~~new~~for ~~offerings.~~working Incapital ~~November~~and ~~2022,~~capital weexpenditures ~~entered~~(including ~~into~~to acontinue ~~$420.0 million~~to ~~revolving~~make ~~credit~~significant ~~agreement,~~investments ~~and~~in ~~since~~our ~~May 2020~~offerings, weincluding ~~have~~potential ~~issued~~new ~~$850~~offerings).~~7 million~~ ~~in aggregate principal amount of convertible notes.~~ From time to time, we may seek additional equity or debt financing, including by the issuance of securities, to finance our operations and growth or to refinance our existing indebtedness, among other things. If we raise additional funds through the issuance of equity, equity-linked or debt securities, such as our ~~1.50%~~ convertible senior notes due ~~2025~~2029 (the “~~2025~~2029 Notes”) and ~~0.625%~~ convertible senior notes due ~~2029~~2030 (the “~~2029~~2030 Notes” ~~together with the 2025 Notes, the “Notes”~~), those securities may have rights, preferences or privileges senior to those of our Class A common stock, and our existing stockholders may experience dilution. Further, we have secured debt financing which has resulted in fixed obligations and certain restrictive covenants, and any debt financing secured by us in the future would result in increased fixed obligations and could involve additional restrictive covenants relating to our capital-raising activities and other financial and operational matters, as well as liens on some or all of our assets, which may make it more difficult for us to obtain additional capital and to pursue business opportunities.

We evaluate financing opportunities from time to time, and our ability to obtain financing will depend, among other things, on our development efforts, business plans and operating performance and the condition of the capital markets at the time we seek financing. Additionally, uncertain and volatile macroeconomic conditions, including economic instability or uncertainty, and other events beyond our control, such as slowing growth in the worldwide economy, inflation and high interest rates, as well as the instability and volatility in the banking and financial services sector, and the war in Ukraine, have negatively impacted the financing markets, and may impact our access to capital and make additional capital more difficult or available only on terms less favorable to us. We cannot be certain that additional financing will be available to us on favorable terms, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to compete and continue to support our business growth and to respond to business challenges could be significantly limited, and our business, financial condition and results of operations could be adversely affected.

If we are unable to make acquisitions and investments, or successfully integrate them into our business, or if we enter into strategic transactions that do not achieve our objectives, our business, results of operations and financial condition could be adversely affected.

As part of our business strategy, we will continue to consider a wide array of potential strategic transactions, including acquisitions of businesses, new technologies, services and other assets, joint ventures and strategic investments that complement our business, such as our acquisition of ~~PBSC~~Freenow in ~~May~~July ~~2022~~2025 and our acquisition of TBR in October 2025, as well as divestitures, partnerships and other transactions. We have previously acquired and invested in, and we continue to seek to acquire and invest in businesses, technologies, or other assets that we believe could complement or expand our business, including acquisitions of new ~~lines~~offerings, ofnew ~~business~~geographies and other opportunities that operate in relatively nascent markets. We also may explore investments in new technologies, which we may develop or other parties may develop. The identification, evaluation, and negotiation of potential acquisition or strategic investment transactions may divert the attention of management and entail various expenses, whether or not such transactions are ultimately completed. There can be no assurance that we will be successful in identifying, negotiating, and consummating favorable transaction opportunities.

develop. The identification, evaluation, and negotiation of potential acquisition or strategic investment transactions may divert the attention of management and entail various expenses, whether or not such transactions are ultimately completed. There can be no assurance that we will be successful in identifying, negotiating, and consummating favorable transaction opportunities.

These transactions involve numerous risks, whether or not completed, any of which could harm our business and negatively affect our financial condition and results of operations, including:

•intense competition for suitable acquisition and investment targets, which could increase transaction costs and adversely affect our ability to consummate deals on favorable or acceptable terms;

•failure or material delay in closing a transaction;

•transaction-related lawsuits or claims;

•our ability to successfully obtain indemnification or representation and warranty insurance;

•difficulties in integrating the technologies, operations, existing contracts and personnel of an acquired company;

•challenges related to entering into new markets or geographies;

•difficulties in retaining key employees or business partners of an acquired company;

•diversion of financial and management resources from existing operations or alternative acquisition opportunities;

•failure to realize the anticipated benefits or synergies of a transaction;

•failure to identify the problems, liabilities or other shortcomings or challenges of an acquired company or technology, including issues related to intellectual property, regulatory compliance practices, litigation, revenue recognition or other accounting practices, or employee or user issues;

•acquired businesses or businesses that we invest in may not have adequate controls, processes, and procedures to ensure compliance with laws and regulations, including with respect to data privacy, data protection, and data security, as well as anti-bribery and anti-corruption laws, export controls, sanctions and industry-specific-regulation;

•risks that regulatory bodies may enact new laws or promulgate new regulations that are adverse to an acquired company or business, or the risk that we become subject to new or additional regulatory burdens that affect our business in potentially unanticipated and significantly negative ways;

•theft of our trade secrets or confidential information that we share with potential acquisition candidates;

•risk that an acquired company or investment in new offerings cannibalizes a portion of our existing business; and

•adverse market reaction to an acquisition.

In addition, we may divest businesses or assets or enter into joint ventures, strategic partnerships or other strategic transactions. ~~For example, in February 2023, we closed the sale of our vehicle service center business.~~ In addition, as a result of our ~~acquisition~~acquisitions of ~~PBSC~~Freenow and TBR, we became an indirect party to certain partnerships and joint ventures that we did not negotiate, and with partners with whom we are less familiar. These types of transactions present certain risks; for example, we may not achieve the desired strategic, operational and financial benefits of a divestiture, partnership, joint venture or other strategic transaction, or we may have difficulty operating together with another partner or joint venturer. In addition, in light of high interest rates and the volatility of the financial markets, it may be more difficult to find suitable acquirors or business partners, and during the pendency of a divestiture or during the integration or separation process of any strategic transaction, we may be subject to risks related to a decline in the business, loss of employees, customers, or suppliers, and the risk that the transaction does not close.

Further, minority investments inherently involve a lesser degree of control over business operations, thereby potentially increasing the financial, legal, operational, regulatory, and/or compliance risks associated with the investment. In addition, we may be dependent on other persons or entities who control the entities in which we invest, including their management or controlling shareholders, and who may have business interests, strategies, or goals that are inconsistent with ours. Business decisions or other actions or omissions of the joint venture partners, controlling shareholders, management, or other persons or entities who control them may adversely affect the value of our investment or result in litigation or regulatory action against us. We can provide no assurance that our investments in other technologies or businesses will generate returns for our business, or that we will not lose our initial investment in whole or in part. For example, in ~~October~~the ~~2022,~~past ~~one~~we ofhave ~~our~~incurred ~~autonomous~~impairment ~~vehicle~~charges ~~partners~~in ~~announced~~connection ~~its~~with the wind-down, ~~and as a result we incurred a total impairment~~ of ~~$135.7~~an ~~million~~AV ~~consisting of impairments of our non-marketable equity investment in such company and other assets~~partner.

If we fail to address the foregoing risks or other problems encountered in connection with past or future acquisitions of businesses, new technologies, services and other assets, strategic investments or other transactions, or if we fail to successfully integrate such acquisitions or investments, or if we are unable to successfully complete other transactions or such transactions do not meet our strategic objectives, our business, results of operations and financial condition could be adversely affected.

Servicing our current and future debt may require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness. Our payment obligations under such indebtedness may limit the funds available to us, and the terms of our debt agreements may restrict our flexibility in operating our business or otherwise adversely affect our results of operations.

In ~~May~~February ~~2020~~2024 and ~~February~~September ~~2024~~2025, we issued our ~~2025~~2029 Notes and ~~2029~~2030 Notes, respectively, in a private ~~placements~~placement to qualified institutional buyers. In addition, in connection with our acquisition of Flexdrive, which is an independently managed, wholly-owned subsidiary, Flexdrive remained responsible for its obligations under a Loan and Security Agreement, as amended, with a third-party lender, a Master Vehicle Acquisition Financing and Security Agreement, as amended, with a third-party lender and a Vehicle Procurement Agreement, as amended, with a third-party; and, following the acquisition, we continued to guarantee the payments of Flexdrive for any amounts borrowed under these agreements. As of December 31, 2024, we had $995.0 million of indebtedness for borrowed money outstanding. In November 2022, we also entered into a revolving credit facility (the “Revolving Credit Facility”) with certain lenders providing the ability to borrow an aggregate principal amount of up to $420.0 million, none of which has been drawn as of December 31, 2024, and $72.6 million in letters of credit were issued under the Revolving Credit Facility as of December 31, 2024. On December 12, 2023, we entered into an amendment to the Revolving Credit Facility which, among other things, permits us to refinance the 2025 Notes and amends certain financial covenants. On February 21, 2024, the Revolving Credit Facility was further amended to, among other things: (a) solely for the purposes of the financial covenant test, replace total leverage with total net leverage and (b) permit us to repurchase up to a specified amount of the Company's common stock with the proceeds of a convertible note offering. See Note 11 “Debt” to our consolidated financial statements, for further information on these agreements and our outstanding debt obligations.

payments of Flexdrive for any amounts borrowed under these agreements. As of December 31, 2025, we had $1.1 billion of indebtedness for borrowed money outstanding. In November 2022, we also entered into a revolving credit facility (the “Revolving Credit Facility”) with certain lenders providing the ability to borrow an aggregate principal amount of up to $420.0 million, none of which has been drawn as of December 31, 2025, and $61.3 million in letters of credit were issued under the Revolving Credit Facility as of December 31, 2025. On December 12, 2023, we entered into an amendment to the Revolving Credit Facility which, among other things, permitted us to refinance the 2025 Notes and amends certain financial covenants. On February 21, 2024, the Revolving Credit Facility was further amended to, among other things: (a) solely for the purposes of the financial covenant test, replace total leverage with total net leverage and (b) permit us to repurchase up to a specified amount of the Company’s common stock with the proceeds of a convertible note offering. See Note 11 “Debt” to our consolidated financial statements, for further information on these agreements and our outstanding debt obligations.

Our ability to make scheduled payments of the principal of, to pay interest or fees on or to refinance or repay our indebtedness depends on our future performance, which is subject to economic, financial, competitive and other factors beyond our control. Our business may not generate cash flow from operations in the future sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt or obtaining additional debt financing or equity capital on terms that may be onerous or highly dilutive. Our ability to refinance any existing or future indebtedness will depend on the capital markets, general macroeconomic conditions and our financial condition at such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on our debt obligations. Events and circumstances may also occur which would cause us to not be able to satisfy applicable draw-down conditions and utilize our revolving credit facility. In addition, any of our future debt agreements may contain restrictive covenants that may prohibit us from adopting any of these alternatives. Our failure to comply with these covenants could result in an event of default which, if not cured or waived, could result in the acceleration of our debt.

In addition, our indebtedness, combined with our other financial obligations and contractual commitments, could have other important consequences. For example, it could:

•make us more vulnerable to adverse changes in general U.S. and worldwide economic, industry and competitive conditions and adverse changes in government regulation;

•limit our flexibility in planning for, or reacting to, changes in our business and our industry;

•place us at a disadvantage compared to our competitors who have less debt;

•limit our ability to borrow additional amounts to fund acquisitions, for working capital and for other general corporate purposes; and

•make an acquisition of our company less attractive or more difficult.

In addition, under certain of our and our subsidiary’s existing debt instruments, we and Flexdrive are subject to customary affirmative and negative covenants regarding our business and operations, including limitations on Flexdrive’s ability to enter into certain acquisitions or consolidations or engage in certain asset dispositions. If we or Flexdrive, as applicable, do not comply with these covenants or otherwise default under the arrangements, and do not obtain an amendment, waiver or consent from the lenders, then, subject to applicable cure periods, any outstanding debt may be declared immediately due and payable. Further, any such amendment, waiver or consent that we are able to obtain may contain additional restrictions or terms that are less favorable to us. Any debt financing secured by us in the future could involve additional restrictive covenants relating to our capital-raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital to pursue business opportunities, including potential acquisitions or divestitures. Any default under our debt arrangements could require that we repay our loans immediately, and may limit our ability to obtain additional financing, which in turn may have an adverse effect on our cash flows and liquidity.

loans immediately, and may limit our ability to obtain additional financing, which in turn may have an adverse effect on our cash flows and liquidity.

Any of these factors could harm our business, results of operations and financial condition. In addition, if we incur additional indebtedness, the risks related to our business and our ability to service or repay our indebtedness would increase.

Our revolving credit facility contains financial covenants and other restrictions on our actions that may limit our operational flexibility or otherwise adversely affect our results of operations.

The terms of our revolving credit facility include a number of covenants that limit our ability and our subsidiaries’ ability to, among other things, incur additional indebtedness, grant liens, merge or consolidate with other companies or sell substantially all of our assets, pay dividends, make redemptions and repurchases of stock, make investments, loans and acquisitions, or engage in transactions with affiliates. The terms of our revolving credit facility may restrict our current and future operations and could adversely affect our ability to finance our future operations or capital needs. In addition, complying with these covenants may make it more difficult for us to successfully execute our business strategy, including potential acquisitions, and compete against companies which are not subject to such restrictions.

A failure by us to comply with the covenants or payment requirements specified in our credit agreement could result in an event of default under the agreement, which would give the lenders the right to terminate their commitments to provide additional loans under our revolving credit facility and to declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. If the debt under our revolving credit facility were to be accelerated, we may not have sufficient cash or be able to borrow sufficient funds to refinance the debt or sell sufficient assets to repay the debt, which could immediately adversely affect our business, cash flows, results of operations, and financial condition. Even if we were able to obtain new financing or negotiate an amendment, waiver or consent under our existing credit agreement, it may contain additional restrictions, or not be on commercially reasonable terms or on terms that are acceptable to us.

loans under our revolving credit facility and to declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be immediately due and payable. If the debt under our revolving credit facility were to be accelerated, we may not have sufficient cash or be able to borrow sufficient funds to refinance the debt or sell sufficient assets to repay the debt, which could immediately adversely affect our business, cash flows, results of operations, and financial condition. Even if we were able to obtain new financing or negotiate an amendment, waiver or consent under our existing credit agreement, it may contain additional restrictions, or not be on commercially reasonable terms or on terms that are acceptable to us.

We are subject to counterparty risk with respect to the capped call transactions.

In connection with the issuance of our 2029 Notes and 2030 Notes, we entered into the capped call transactions (the “2029 Capped Calls”) ~~with~~and ~~certain~~“2030 ofCapped ~~the initial purchasers of the 2025 Notes or their respective affiliates for the 2025 Notes~~Calls”, ~~and~~respectively) with certain financial institutions ~~for the 2029 Notes~~ (the “option counterparties”). We are subject to the risk that any or all of ~~them~~the option counterparties might default under the 2029 Capped Calls and 2030 Capped Calls. Our exposure to the credit risk of the option counterparties will not be secured by any collateral. Past global economic conditions have resulted in the actual or perceived failure or financial difficulties of many financial institutions. If an option counterparty becomes subject to insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal to our exposure at that time under the 2029 Capped Calls and 2030 Capped Calls with such option counterparty. Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an increase in the market price and in the volatility of our Class A common stock. In addition, upon a default by an option counterparty, we may suffer adverse tax consequences and more dilution than we currently anticipate with respect to our Class A common stock. We can provide no assurance as to the financial stability or viability of the option counterparties.

Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.

As of December 31, ~~2024~~2025, we had $7.29 billion of federal, ~~and~~ $6.24 billion of state, and $557.4 million of foreign net operating losses (“NOLs”) available to reduce future taxable income, which will begin to expire in ~~2035~~2034 for federal income tax purposes and in ~~2025~~2026 for state and foreign income tax purposes. It is possible that we will not generate taxable income in time to use NOLs before their expiration. Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOLs to offset its post-change income may be limited. In general, an “ownership change” will occur if there is a cumulative change in our ownership by “5-percent shareholders” that exceeds 50 percentage points over a rolling three-year period. Limitations may also apply under state and foreign tax laws. For example, ~~recently~~in ~~enacted~~June 2024, California enacted legislation that limits the use of state NOLs for tax years beginning on or after January 1, 2024, and before January 1, 2027. ~~As a result of this legislation or other unforeseen reasons, we may not be able to utilize some or all of our NOLs even if we attain profitability.~~

~~The~~Under ~~Tax~~current ~~Cuts and Jobs Act of 2017~~law, or the ~~Tax Act, as modified by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, among other things, limited the~~ use of federal NOLs arising in tax years beginning after December 31, 2017 is limited to 80% of taxable income ~~for tax years beginning after December 31, 2020~~. Not all states conform to ~~the~~this ~~Tax Act or CARES Act~~provision. In future years, ifthis ~~and~~provision ~~when~~may alimit ~~net~~the ~~deferred~~usability ~~tax~~of ~~asset is recognized related to~~ our NOLs, ~~these changes may significantly impact our valuation allowance assessments for NOLs~~ generated after December 31, 2017.

Risks Related to Governance and Ownership of our Capital Stock ~~Factors~~

The dual class structure of our common stock has the effect of concentrating voting power with our Co-Founders, which will limit your ability to influence the outcome of important transactions, including a change in control.

Our Class B common stock has 20 votes per share, and our Class A common stock has one vote per share. Our Co-Founders together hold all of the issued and outstanding shares of our Class B common stock. Accordingly, Logan Green, our co-founder and

Chair of our board of directors holds approximately 18.81% of the voting power of our outstanding capital stock; and John Zimmer, our co-founder and Vice Chair of our board of directors, holds approximately 10.80% of the voting power of our outstanding capital stock. Therefore, our Co-Founders, individually or together, may be able to significantly influence matters submitted to our stockholders for approval, including the election of directors, amendments of our organizational documents and any merger, consolidation, sale of all or substantially all of our assets or other major corporate transactions. Our Co-Founders, individually or together, may have interests that differ from yours and may vote in a way with which you disagree and which may be adverse to your interests. This concentrated control may have the effect of delaying, preventing or deterring a change in control of our company, could deprive our stockholders of an opportunity to receive a premium for their capital stock as part of a sale of our company and might ultimately affect the market price of our Class A common stock. Each Co-Founder’s voting power is as of December 31, 2024 and includes shares of Class A common stock expected to be issued upon the vesting of such Co-Founder’s RSUs within 60 days of December 31, 2024.

Future transfers by the holders of Class B common stock will generally result in those shares converting into shares of Class A common stock, subject to limited exceptions, such as certain transfers effected for estate planning purposes. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon (i) the date specified by affirmative written election of the holders of two-thirds of the then-outstanding shares of Class B common stock, (ii) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the shares of Class B common stock held by our Co-Founders and their permitted entities and permitted transferees represent less than 20% of the Class B common stock held by our Co-Founders and their permitted entities as of immediately following the completion of our initial public offering, or IPO, or (iii) nine months after the death or total disability of the last to die or become disabled of our Co-Founders, or such later date not to exceed a total period of 18 months after such death or disability as may be approved by a majority of our independent directors.

The trading price of our Class A common stock may be volatile, and you could lose all or part of your investment.

The trading price of our Class A common stock may be volatile and could be subject to fluctuations in response to various factors, some of which are beyond our control. These fluctuations could cause you to lose all or part of your investment in our Class A common stock. Factors that could cause fluctuations in the trading price of our Class A common stock include the following:

•price and volume fluctuations in the overall stock market from time to time, including fluctuations due to general economic uncertainty or negative market sentiment;

•volatility in the trading prices and trading volumes of technology stocks generally, or those in our industry, including fluctuations unrelated or disproportionate to the operating performance of those technology companies;

•changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;

•sales or purchases of shares of our Class A common stock by us, our officers, or our significant stockholders, as well as the perception that such sales or purchases could occur;

•issuance of shares of our Class A common stock, whether in connection with our equity incentive plans, an acquisition or upon conversion of our outstanding 2029 Notes and 2030 Notes;

•failure of securities analysts to maintain coverage of us, changes in financial estimates by securities analysts who follow our company or our failure to meet these estimates or the expectations of investors;

•the financial and business projections, targets or goals we provide to the public, any changes in those projections, targets or goals or our failure to meet those projections, targets or goals;

•announcements by us or our competitors of new offerings or platform features;

•investor sentiment and the public’s reaction to our press releases, earnings and other public announcements, and filings with the SEC, or those of our competitors or others in our industry;

•rumors and market speculation involving us or other companies in our industry;

•short selling of our Class A common stock or related derivative securities;

•actual or anticipated changes in our results of operations or fluctuations in our results of operations;

•actual or anticipated developments in our business, our competitors’ businesses or the competitive landscape generally;

•litigation involving us, our industry or both, or investigations by regulators into our operations or those of our competitors;

•developments or disputes concerning our intellectual property or other proprietary rights;

•announced or completed acquisitions of businesses, services or technologies by us or our competitors;

•new laws or regulations or new interpretations of existing laws or regulations applicable to our business or statements by public officials regarding potential new laws or regulations;

•changes in accounting standards, policies, guidelines, interpretations or principles;

•any significant change in our management or our board of directors; and

•general economic conditions and slow or negative growth of our markets~~; and~~.

•In addition, in the ~~impact~~past, following periods of ~~our~~volatility ~~dual~~in the overall market and the market price of a particular company’s securities, securities class ~~structure~~action litigation has often been instituted against these companies, including as described in the “Legal Proceedings” subheading in Note 10 “Commitments and Contingencies” to the consolidated financial statements included in this Annual Report on Form 10-K. Although we believe these lawsuits are without merit and we intend to vigorously defend against them, such matters could result in substantial costs and a diversion of our management’s attention and resources.

In addition, in the past, following periods of volatility in the overall market and the market price of a particular company’s securities, securities class action litigation has often been instituted against these companies, including as described in the “Legal Proceedings” subheading in Note 10. Commitments and Contingencies to the consolidated financial statements included in this Annual Report on Form 10-K. Although we believe these lawsuits are without merit and we intend to vigorously defend against them, such matters could result in substantial costs and a diversion of our management’s attention and resources.

Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer or proxy contest difficult, thereby depressing the market price of our Class A common stock.

Our status as a Delaware corporation and the anti-takeover provisions of the Delaware General Corporation Law may discourage, delay or prevent a change in control by prohibiting us from engaging in a business combination with an interested stockholder for a period of three years after the date of the transaction in which the person became an interested stockholder, even if a change of control would be beneficial to our existing stockholders. In addition, our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make the acquisition of our company more difficult, including the following:

•any amendments to our amended and restated certificate of incorporation or amendments by stockholders to our amended and restated bylaws require the approval of at least two-thirds of our then-outstanding voting power;

•our dual class common stock structure, which provides our Co-Founders, individually or together, with the ability to significantly influence the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the shares of our outstanding Class A common stock and Class B common stock;

•our board of directors is classified into three classes of directors with staggered three-year terms and directors are only able to be removed from office for cause;

•our stockholders are only able to take action at a meeting of stockholders and are not able to take action by written consent for any matter;

•our amended and restated certificate of incorporation does not provide for cumulative voting;

•vacancies on our board of directors are able to be filled only by our board of directors and not by stockholders;

•a special meeting of our stockholders may only be called by the chairperson of our board of directors, our Chief Executive Officer, our President or a majority of our board of directors;

•certain litigation against us can only be brought in Delaware;

•our amended and restated certificate of incorporation authorizes undesignated preferred stock, the terms of which may be established and shares of which may be issued without further action by our stockholders; and

•advance notice procedures apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders.

These provisions, alone or together, could discourage, delay or prevent a transaction involving a change in control of our company. These provisions could also discourage proxy contests and make it more difficult for stockholders to elect directors of their choosing and to cause us to take other corporate actions they desire, any of which, under certain circumstances, could limit the opportunity for our stockholders to receive a premium for their shares of our Class A common stock, and could also affect the price that some investors are willing to pay for our Class A common stock.

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Our amended and restated bylaws designate a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders and also provide that the federal district courts will be the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act of 1933 (as amended, the “Securities Act”), each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees.

Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by law, the sole and exclusive forum for (1) any derivative action or proceeding brought on our behalf, (2) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, stockholders, officers or other employees to us or our stockholders, (3) any action arising pursuant to any provision of the Delaware General Corporation Law, our amended and restated certificate of incorporation or our amended and restated bylaws or (4) any other action asserting a claim that is governed by the internal affairs doctrine shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, another State court in Delaware or the federal district court for the District of Delaware), in all cases subject to the court having jurisdiction over indispensable parties named as defendants. Our amended and restated bylaws also provide that the federal district courts of the ~~United~~U.S. ~~States~~ are the sole and exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act against any person in connection with any offering of our securities, including, without limitation and for the avoidance of doubt, any auditor, underwriter, expert, control person or other defendant.

Any person or entity purchasing, holding or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to these provisions. These exclusive-forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. If a court were to find the exclusive-forum provisions in our amended and restated bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm our results of operations.

Item 1B. Unresolved Staff Comments.

None.

Item 1C. Cybersecurity.

Risk Management and Strategy

We have established policies and processes for assessing, identifying, and managing material risk from cybersecurity threats, and have integrated these processes into our risk management systems and processes. We routinely assess material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein.

We conduct a regular risk assessment process with monthly management reviews of the cybersecurity risk landscape to identify threats and may conduct further assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks.

Following these risk assessments, we may accept identified risks; re-design, implement, and maintain reasonable safeguards to minimize identified risks; reasonably address any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate high-level personnel, including our Chief Information Security Officer (“CISO”), who reports to our Chief Information Officer (“CIO”), to manage the risk assessment and mitigation process.

As part of our risk management processes, we monitor and test our safeguards and train our employees on these safeguards, in collaboration with human resources, IT, and management. Personnel at all levels and departments are made aware of our cybersecurity policies through trainings. We require relevant third-party service providers to confirm that they have the ability to implement and maintain appropriate security measures, consistent with all applicable laws, to implement and maintain reasonable security measures in connection with their work with us, and to promptly report any ~~suspected~~ breach of its security measures that may affect our company.

We regularly discuss our internal controls over financial reporting with our independent registered public accounting firm and other service providers assist us in evaluating the design and implementation of our cybersecurity controls and procedures, as well as to monitor and test our safeguards.

For additional information regarding whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect our company, including our business strategy, results of operations, or financial condition, please refer to Item 1A, “Risk Factors,” in this ~~annual~~Annual ~~report~~Report on Form 10-K, including the risk factor entitled “Any actual or perceived security or privacy breach or incident could interrupt our operations, harm our brand and adversely affect our reputation, brand, business, financial condition and results of operations.”

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Governance

One of the key functions of our board of directors is informed oversight of our risk management process, including risks from cybersecurity threats. Our board of directors has oversight responsibilities for material risk for the company, and our executive officers are responsible for the day-to-day management of the material risks we face. Our board of directors administers its cybersecurity risk oversight function as a whole, as well as through the audit committee.

Our CISO has primary responsibility for assessing and managing our material risks from cybersecurity threats in partnership with our CIO and other business leaders. The CISO has served in various roles within the cybersecurity field for over 15 years, including security leadership roles in multiple organizations. The CISO holds an undergraduate degree in information security and forensics and a graduate degree in information assurance and has attained various professional certifications within the field including Certified Information Systems Security Professional and Certified Ethical Hacker certifications.

Our CISO oversees our cybersecurity policies and processes, including those described in “Risk Management and Strategy” above. The processes and procedures by which our CISO is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents include our incident response process, tracking in our centralized risk repository, and our vulnerability management process. Our Incident Response policy describes and supports the activities we take to prepare for discovery, response, and recovery from cybersecurity incidents, which include processes to determine severity, escalation, and response to incidents, as well as those necessary to comply with potentially applicable legal obligations and mitigate brand and reputational damage.

Our CISO or other business leaders provide quarterly updates to the audit committee regarding our company’s cybersecurity risks and activities. These updates include any relevant recent cybersecurity incidents and related mitigation and remediation efforts, cybersecurity systems testing, status updates on Security and Privacy team efforts, and the like. Our audit committee provides updates to the board of directors on material cybersecurity risks and activities.

Item 2. Properties.

Our corporate headquarters are located in San Francisco, California, and consist of approximately 170,000 square feet under lease agreements ~~through August 31, 2034~~. We maintain additional offices in multiple locations in the U.S. and internationally ~~in Toronto, Canada, Montreal, Canada, Mexico City, Mexico, Kyiv, Ukraine, Berlin, Germany and Munich, Germany~~.

We lease all of our facilities and do not own any real property. We believe our facilities are adequate and suitable for our current needs and that, should it be needed, suitable additional or alternative space will be available to accommodate our operations.

Item 3. Legal Proceedings.

See discussion under the heading Legal Proceedings in Note 10 to the consolidated financial statements included in Part II, Item 8 of this report.

Item 4. Mine Safety Disclosures.

Not applicable.

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PART II

Item 5. Market for registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information for Common Stock

Our Class A common stock is traded on The Nasdaq Global Select Market under the symbol “LYFT.” Our Class B common stock is neither listed nor traded.

Holders of Record

As of December 31, ~~2024~~2025, there were approximately ~~234~~218 stockholders of record of our Class A common stock. Because many of our shares of Class A common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial owners represented by these record holders. As of December 31, 2025, there were no stockholders of record of our Class B common stock.

As of December 31, 2024, there were 6 stockholders of record of our Class B common stock. All shares of Class B common stock are beneficially owned by either Logan Green or John Zimmer.

Dividend Policy

We have never declared or paid cash dividends on our capital stock. We currently intend to retain all available funds and future earnings, if any, and do not anticipate paying any cash dividends in the foreseeable future.

Stock Performance Graph

This performance graph shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act or incorporated by reference into any filing of Lyft, Inc. under the Securities Act.

The graph below compares the cumulative five-year total stockholder return on our Class A common stock with the cumulative total return on the S&P 500 Index and the S&P 500 Information Technology Index. The graph tracks the performance of a $100 investment in our Class A common stock and in each index from December 31, ~~2019~~2020 to December 31, ~~2024~~2025. Data for the S&P 500 Index and the S&P 500 Information Technology Index assume reinvestment of dividends.

The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock.

Item 1.1b - Cumulative Return for Lyft Graphic.jpg

Recent Sale of Unregistered Securities and Use of Proceeds

Recent Sale of Unregistered Securities

None.

Use of Proceeds

None.

Issuer Purchases of Equity Securities

~~None.~~The following table summarizes the share repurchase activity for the three months ended December 31, 2025 (in thousands, except per share data):


	Total Number of Shares Purchased	Average Price Paid per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2)
October 1 - 31, 2025	2,113	$	20.54	2,113	$	306,604
November 1 - 30, 2025	1,676	$	21.39	1,676	$	270,755
December 1 - 31, 2025	967	$	21.46	967	$	250,008
Total	4,756			4,756

_______________

(1)Average price paid per share excludes broker commissions and fees.

(2)On February 11, 2025, we announced that our board of directors authorized the repurchase of up to $500 million of our Class A common stock. On May 8, 2025, we announced that our board of directors authorized an increase to the share repurchase program of an additional $250 million of our Class A common stock, for a total overall authorization of up to $750 million. The repurchase program does not obligate us to acquire any particular amount of our Class A common stock, has no expiration date and may be modified, suspended, or terminated at any time at our discretion. Please refer to Note 12 “Common Stock and Employee Stock Plans” to the consolidated financial statements for further information.

Item 6. [Reserved].

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Annual Report on Form 10-K. This Management’s Discussion and Analysis of Financial Condition and Results of Operations focuses on a discussion of results for ~~2024~~2025 and ~~2023~~2024 and year-to-year comparisons between ~~2024~~2025 and ~~2023~~2024. For a discussion of results for ~~2022~~2023 and year-to-year comparisons between ~~2023~~2024 and ~~2022~~2023, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” within our Annual Report on Form 10-K for the year ended December 31, ~~2023~~2024 filed with the SEC on February 2014, ~~2024~~2025. This discussion contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such differences include those identified below and those discussed in the section titled “Risk Factors” and other parts of this Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.

Financial and Operational Results for the Year Ended December 31, ~~2024~~2025

	Year Ended December 31,
	2024			2023			% Change
	2025			2024			% Change
	(in millions, except percentages)
GAAP Financial Measures
Revenue	$	56,~~786~~316.03		$	45,~~403~~786.60		319%
Total costs and expenses	$	5,904.9		$	4,879.2		21%
Net income(1)	$	2,844.0		$	22.8		NM
Loss from operations	$	(118.9)		$	(475.6)		75%
Net income as a percentage of revenue	45.0		%	0.4		%
Net income (loss)	$	22.8		$	(340.3)		107%
Net cash provided by operating activities	$	1,168.4		$	849.7		38%
Net income (loss) as a percentage of revenue	0.4		%	(7.7)		%
Net cash provided by (used in) operating activities	$	849.7		$	(98.2)		965%
Net cash (used in) provided by investing activities	$	(518.0)		$	599.8		(186)%
Net cash used in financing activities	$	(155.9)		$	(122.1)		(28)%
Key Metrics and Non-GAAP Financial Measures
Active Riders for the fourth quarter	2429.72			2224.47			1018%
Rides	~~828~~945.35			~~709~~828.03			1714%
Gross Bookings	$	1618,~~099~~507.40		$	1316,~~775~~099.24		1715%
Adjusted EBITDA(1)	$	382.4		$	222.4		72%
Adjusted EBITDA(2)	$	528.8		$	382.4		38%
Net income (loss) as a percentage of Gross Bookings	0.1		%	(2.5)		%
Net income as a percentage of Gross Bookings	15.4		%	0.1		%
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)	2.49		%	12.64		%
Adjusted Net Income(1)(2)	$	391.5		$	250.7		56%
Free cash flow(2)(3)	$	1,115.6		$	766.3		46%
Free cash flow(1)(3)	$	766.3		$	(248.1)		409%

_______________

(1)~~For~~Net ~~more~~income ~~information~~for ~~regarding~~the ~~our~~year ~~use~~ended ofDecember ~~our~~31, ~~non-GAAP~~2025 ~~financial~~includes ~~measures~~a ~~and~~$2.9 billion ~~reconciliations~~benefit from the release of ~~these~~our ~~measures~~valuation toallowance ~~the~~of ~~most~~U.S. ~~comparable~~federal ~~GAAP~~and ~~measures,~~certain ~~see~~state ~~“Non-GAAP~~deferred ~~Financial~~tax ~~Measures”~~assets in the fourth quarter of 2025.

(2)~~Beginning~~For inmore ~~the~~information ~~first~~regarding ~~quarter~~our use of ~~2025,~~our wenon-GAAP ~~will~~financial nomeasures ~~longer~~and ~~present~~reconciliations ~~Adjusted~~of ~~Net~~these ~~Income~~measures ~~(Loss)~~to asthe amost ~~non~~comparable GAAP measures, see “Non-GAAP ~~financial~~Financial ~~measure~~Measures”.

(3)Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.

NMNot meaningful.

Recent Developments

Acquisition of Freenow

On July 31, 2025, we completed the previously announced acquisition of Freenow, a European multimodal application with a taxi offering at its core. The acquisition marked Lyft’s first expansion outside of North America, beyond bikes and scooters. The Company paid approximately €205.9 million ($236.8 million) in cash, inclusive of closing adjustments. Refer to Note 4 “Acquisitions” to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for information regarding the acquisition.

Acquisition of TBR

On October 14, 2025, we completed the acquisition of TBR, a global premium ground transportation and chauffeur service company, for a total purchase price of approximately £86.4 million ($115.2 million), inclusive of an immaterial amount of contingent consideration. Refer to Note 4 “Acquisitions” to the consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for information regarding the acquisition.

Definitions of Key Metrics

Active Riders

The number of Active Riders is a key indicator of the scale of our user community.

	Active Riders
	2024	2023
	2025	2024
	(in millions)
Three Months Ended March 31	2124.92	1921.69
Three Months Ended June 30	2326.71	2123.57
Three Months Ended September 30	2428.47	2224.4
Three Months Ended December 31	2429.72	2224.47

54We define Active Riders as all unique riders who have taken at least one ride during the quarter. If a ride is requested by another organization or person for the benefit of a rider, that rider is only included in the calculation of Active Riders if the ride is accessible in the rider’s Lyft apps.

WeIn ~~define~~the ~~Active~~first ~~Riders as all riders who take at least one ride during a~~ quarter ~~where~~of ~~the~~2025, ~~Lyft~~we ~~Platform~~updated ~~processes~~ the ~~transaction.~~definition Anof Active ~~Rider~~Riders isto ~~identified~~simplify bythe adefinition ~~unique phone number. If a rider has two mobile phone numbers or changed their phone number~~ and ~~that~~better ~~rider~~align ~~took rides using both phone numbers during~~ the ~~quarter,~~metric ~~that~~with ~~person~~future ~~would~~scaling ~~count~~of asour ~~two Active Riders~~business. IfAdditionally, aunique ~~rider~~riders ~~has~~were apreviously ~~personal~~identified ~~and~~by ~~business profile tied to the same mobile~~ phone number, ~~that~~and ~~person~~are ~~would~~now beidentified ~~considered~~through a ~~single~~unique ~~Active~~internal ~~Rider~~identifier. IfThe achange ~~ride~~was ~~has~~adopted ~~been~~prospectively ~~requested~~and byperiods anprior ~~organization~~to ~~using our Concierge offering for~~ the ~~benefit~~first quarter of a2025 ~~rider,~~were wenot ~~exclude~~changed ~~this~~as ~~rider in~~ the ~~calculation~~impact ofwas ~~Active~~not ~~Riders unless the ride is accessible in that rider’s Lyft App~~material.

In each of the three month periods ended March 31, June 30, September 30, and December 31, ~~2024~~2025, Active Riders increased compared to the same periods in ~~2023~~2024 primarily due to our focus on rider and driver engagement, improved retention, ~~and~~ overall marketplace health ~~which~~and ~~resulted~~international ~~in Active Riders reaching an all-time high in the fourth quarter of 2024~~expansion.

Rides

Rides represent the level of usage of our multimodal platform.

We define Rides as the total number of rides ~~including rideshare and bike and scooter rides~~ completed ~~using~~on our multimodal platform that contribute to our revenue. These include any Rides taken through our Lyft ~~App~~apps. If multiple riders take a private rideshare ride, including situations where one party picks up another party on the way to a destination, or splits the bill, we count this as a single rideshare ride. Each unique segment of a Shared Ride is considered a single Ride. For example, if two riders successfully match in Shared Ride mode and both complete their Rides, we count this as two Rides. We have largely shifted away from Shared Rides, and now only offer Shared Rides in limited markets. We include all Rides taken by riders via our Concierge offering, even though such riders may be excluded from the definition of Active Riders unless the ride is accessible in that rider’s Lyft ~~App~~apps.

The increase in Rides in the year ended December 31, ~~2024~~2025 as compared to the year ended December 31, ~~2023~~2024 was due primarily to our improved marketplace health which also resulted in ~~both~~an ~~Rides~~increase ~~and~~in Active Riders ~~reaching all-time highs in the fourth quarter of 2024~~.

Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)

Gross Bookings is a key indicator of the scale and impact of our overall platform.

We define Gross Bookings as the total dollar value of transactions ~~invoiced to rideshare riders~~ including any applicable taxes, tolls and fees, ~~excluding~~for ~~tips~~rides toand ~~drivers.~~other ~~Gross~~offerings ~~Bookings~~provided ~~also~~by ~~includes amounts invoiced for other offerings~~Lyft, ~~including~~excluding ~~but~~tips ~~not~~to ~~limited~~drivers. ~~to:~~In ~~Express~~the ~~Drive~~fourth ~~vehicle~~quarter ~~rentals~~of 2025, ~~bike~~we ~~and~~simplified ~~scooter~~the ~~rentals,~~definition ~~and~~of ~~amounts~~Gross ~~recognized~~Bookings ~~for~~to ~~subscriptions,~~better ~~bike~~align ~~and~~the ~~bike~~metric ~~station~~with ~~hardware~~future ~~and~~scaling ~~software~~of ~~sales,~~our ~~media,~~business. ~~sponsorships,~~There ~~partnerships,~~was ~~and~~no ~~licensing~~impact ~~and~~to ~~data~~prior ~~access agreements~~periods. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is calculated by dividing Adjusted EBITDA for a period by Gross Bookings for the same period. For the definition of Adjusted EBITDA, refer to “Non-GAAP Financial Measures”.

The increase in Gross Bookings in the year ended December 31, ~~2024~~2025 as compared to the year ended December 31, ~~2023~~2024 was due ~~primarily~~ to ~~Rides~~international ~~growth~~expansion ~~which~~and ~~benefited from increased ride frequency, which is demonstrated by Rides~~ growth ~~exceeding~~in Active Riders ~~growth,~~ and ~~improvements~~Rides inwhich ~~marketplace~~benefited ~~health.~~from ~~Gross~~continued ~~Bookings~~improvements ~~can~~in ~~be impacted by~~ marketplace health and competitive dynamics and near the end of the fourth quarter of 2024, we believe pricing pressure due to a dynamic competitive environment and softer ride volume had a moderate negative impact on Gross Bookings.

The improvements in net income ~~(loss)~~ as a percentage of Gross Bookings and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) in the year ended December 31, ~~2024~~2025 as compared to the year ended December 31, ~~2023~~2024 were due primarily to ~~Rides growth due to competitive pricing and improved marketplace health. Additionally, our net income (loss) in the year ended December 31, 2024 included~~ a $292.69 ~~million~~billion ~~gain~~benefit ~~related~~from tothe arelease ~~lease~~of ~~termination~~our ~~which~~valuation ~~positively~~allowance ~~impacted~~of ~~net~~U.S. ~~income~~federal ~~(loss)~~and ascertain astate ~~percentage~~deferred oftax ~~Gross~~assets ~~Bookings~~ in ~~the~~fourth ~~year~~quarter ~~ended~~of ~~December 31, 2024, but did not have a similar impact in 2023~~2025.

Components of Results of Operations

Revenue

Revenue consists of revenue recognized from fees paid by drivers for use of our Lyft Platform offerings, and gross amounts collected from riders in certain markets where we control the transportation services provided, Concierge platform fees from organizations that use our Concierge offering, subscription fees paid by riders to access transportation options through the Lyft Platform, revenue from bikes and bike station hardware and software sales, revenue from licensing and data access agreements and revenue from arrangements to provide advertising services to third parties that are interested in reaching users of our platform. Revenue derived from these offerings is recognized in accordance with ASC 606 as described in the Critical Accounting Policies and Estimates below and in Note 2 of the notes to our consolidated financial statements.

Revenue also consists of rental revenues recognized through leases or subleases primarily from Flexdrive and our network of Light Vehicles, which includes revenue generated from single-use ride fees paid by riders of Light Vehicles. Revenue derived from these offerings is recognized in accordance with ASC 842 as described in the Critical Accounting Policies and Estimates below and in Note 2 of the notes to our consolidated financial statements. 52

55Platform, bikes and bike station hardware and software sales, licensing and data access agreements and arrangements to provide advertising services to third parties that are interested in reaching users of our platform. Revenue also consists of rental revenues recognized through leases or subleases of vehicles primarily from our wholly-owned subsidiary, Flexdrive Services, LLC (“Flexdrive”). Revenue derived from these offerings is recognized in accordance with Accounting Standards Codification Topic 606 (“ASC 606”) and Accounting Standards Codification Topic 842 (“ASC 842”) as described in the Critical Accounting Policies and Estimates below and in Note 2 “Summary of Significant Accounting Policies”.

We offer various incentive programs to drivers that are recorded as a reduction to revenue if we do not receive a distinct good or service in consideration or if we cannot reasonably estimate the fair value of goods or services received.

Cost of Revenue

Cost of revenue primarily consists of costs directly related to ~~revenue~~ generating ~~transactions~~revenue through our multimodal platform which primarily includes insurance costs, payment processing charges, payments to drivers or driver incentive costs in certain markets where we control the transportation services provided, and other costs. Insurance costs consist of insurance generally required under TNC and city regulations for ridesharing, and bike and scooter rentals and also ~~include~~includes occupational hazard insurance for drivers. Payment processing charges include merchant fees, chargebacks and failed charges. Other costs included in cost of revenue are hosting and platform-related technology costs, personnel-related compensation costs, depreciation, amortization of technology-related intangible assets, asset write-off charges, and costs related to Flexdrive, which include vehicle lease expenses and remarketing gains and losses related to the sale of vehicles.

Operations and Support

Operations and support expenses primarily consist of personnel-related compensation costs of local operations teams and teams who provide phone, email and chat support to users, ~~Light~~bikes ~~Vehicle~~and scooters fleet operations support costs, driver background checks and onboarding costs, fees paid to third-parties providing operations support, facility costs and certain car rental fleet support costs. ~~Light~~Bikes ~~Vehicle~~and scooters fleet operations support costs include general repairs and maintenance, and other customer support activities related to repositioning bikes and scooters for rider convenience, cleaning and safety checks.

Research and Development

Research and development (“R&D”) expenses primarily consist of personnel-related compensation costs and facilities costs. Research and development costs are expensed as incurred.

Sales and Marketing

Sales and marketing expenses primarily consist of rider incentives, personnel-related compensation costs, certain driver incentives ~~for referring new drivers or riders~~, advertising expenses, rider refunds, amortization of certain intangible assets and marketing partnerships with third parties. Sales and marketing costs are expensed as incurred. Incentive programs are intended to improve our marketplace. In the second quarter of 2025, we determined that certain components should be excluded from our disclosure of incentives. Accordingly, prior period amounts disclosed have been changed to conform to current period presentation.

General and Administrative

General and administrative expenses primarily consist of personnel-related compensation costs, professional services fees, certain insurance costs that are generally not required under TNC regulations, certain loss contingency expenses including legal accruals and settlements, insurance claims administrative fees, policy spend, depreciation, facility costs, amortization of certain intangible assets and other corporate costs. General and administrative expenses are expensed as incurred.

Interest Expense

Interest expense consists primarily of interest incurred on our ~~2025~~convertible ~~Notes~~senior ~~and 2029 Notes~~notes, as well as the related amortization of deferred debt issuance costs and debt discount. Interest expense also includes interest incurred on our Non-Revolving Loan and our Master Vehicle Loan.

Other Income ~~(Expense)~~, Net

Other income ~~(expense)~~, net consists primarily of interest earned on our cash, cash equivalents and restricted and unrestricted ~~short-term~~ investments asand ~~well~~realized asand ~~sublease~~unrealized ~~income~~gains and losses on foreign currency transactions and balances.

~~Provision for~~ (Benefit from) Provision for Income Taxes

Our ~~provision for~~ (benefit from) provision for income taxes consists of federal and state taxes in the U.S. and foreign taxes in jurisdictions in which we conduct business. As we expand the scale of our international business activities, any changes in the U.S. and foreign taxation of such activities may increase our overall (benefit from) provision for income taxes in the future.

We have a valuation allowance for our U.S. deferred tax assets, including federal and state net operating loss carryforwards. We expect to maintain this valuation allowance until it becomes more likely than not that the benefit of our federal and state deferred tax assets will be realized. However, based on our current and anticipated future earnings, our management believes it is reasonably possible that sufficient positive evidence of sustained U.S. profitability may become available in the foreseeable future to reach a conclusion that the U.S. valuation allowance will no longer be needed. The timing and amount of the valuation allowance release could vary based on the level of profitability that we are actually able to achieve. A release of all or a portion of the valuation allowance would result in the recognition of certain deferred tax assets and a material income tax benefit for the period in which such release is recorded. 53

56For the year ended December 31, 2025, we recognized an income tax benefit of $2.9 billion, primarily due to the release of the valuation allowance on our U.S. federal and state net deferred tax assets.

We record a valuation allowance to reduce deferred tax assets to the net amount that we believe is more-likely-than-not to be realized. In assessing the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical profitability, expectations and risks associated with future taxable income, and ongoing tax planning strategies.

As of December 31, 2025, we have demonstrated sustained profitability in the U.S. based on pre-tax book income adjusted for permanent book-to-tax differences. After weighing all available positive and negative evidence, including the objective and verifiable evidence described above and anticipated future earnings, we concluded that it is more-likely-than-not that all of our U.S. federal and the majority of our state deferred tax assets will be realizable. We continue to maintain a valuation allowance against our California R&D credits as we do not believe their realization is more-likely-than-not, as we expect R&D tax credit generation to exceed our ability to use these credits in future periods.

Results of Operations

The following table summarizes our historical consolidated statements of operations data (in thousands):

	Year Ended December 31,
	2024		2023
	2025		2024
Revenue	$	56,~~786~~316,~~016~~261	$	45,~~403~~786,~~589~~016
Costs and expenses
Cost of revenue	3,~~337~~697,~~714~~653		23,~~543~~337,~~954~~714
Operations and support	~~443~~478,~~821~~332		~~427~~443,~~239~~821
Research and development	~~397~~451,~~073~~419		~~555~~397,~~916~~073
Sales and marketing	~~788~~875,~~972~~101		~~481~~788,~~004~~972
General and administrative	~~937~~1,~~348~~002,130		~~871~~937,~~080~~348
Total costs and expenses	56,~~904~~504,~~928~~635		45,~~879~~904,~~193~~928
Loss from operations	(~~118~~188,~~912~~374)		(~~475~~118,~~604~~912)
Interest expense	(2820,~~921~~755)		(2628,~~223~~921)
Other income (expense), net	173,183		170,123
Other income, net	155,882		173,183
Income (loss) before income taxes	25,350		(331,704)
(Loss) income before income taxes	(53,247)		25,350
Provision for (benefit from) income taxes	2,566		8,616
(Benefit from) provision for income taxes	(2,897,255)		2,566
Net income (loss)	$	22,784	$	(340,320)
Net income	$	2,844,008	$	22,784

The following table sets forth the components of our consolidated statements of operations data as a percentage of revenue:

	Year Ended December 31,
	2024		2023
	2025		2024
Revenue	100.0	%	100.0	%
Costs and expenses
Cost of revenue	5758.75		57.87
Operations and support	7.76		97.7
Research and development	67.91		~~12.~~6.9
Sales and marketing	13.69		1013.96
General and administrative	1615.29		1916.82
Total costs and expenses	~~102~~103.10		~~110~~102.81
Loss from operations	(23.10)		(102.81)
Interest expense	(0.53)		(0.65)
Other income (expense), net	3.0		3.9
Other income, net	2.5		3.0
Income (loss) before income taxes	0.4		(7.5)
(Loss) income before income taxes	(0.8)		0.4
Provision for (benefit from) income taxes	—		0.2
(Benefit from) provision for income taxes	(45.9)		—
Net income (loss)	0.4	%	(7.7)	%
Net income	45.0	%	0.4	%

Comparison of Years Ended December 31, ~~2024~~2025 and ~~2023~~2024

Revenue

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Revenue	$	56,~~786~~316,~~016~~261	$	45,~~403~~786,~~589~~016	319	%

Revenue increased $1530.~~4 billion~~2 million, or 319%, in ~~2024~~2025 as compared to the prior year, ~~due~~ primarily due to ~~growth~~an increase of 14% in ~~demand~~Rides as we benefited from improvements in marketplace health and international expansion which was reflected in the increases in Gross Bookings, Rides and Active Riders in ~~2024~~2025 as compared to ~~2023~~2024. Investments in driver supply, which are recorded as a reduction to revenue, decreased by $~~325~~121.74 million in ~~2024~~2025 as compared to the prior year as driver supply on the platform benefited from organic growth. The increase was also offset by a $168 million impact from certain legal, tax, and regulatory reserve changes and settlements, which were recorded as a reduction to revenue.

5755

We expect revenue will fluctuate based upon factors such as ride volume, driver supply, pricing, incentives and seasonality specifically related to our network of ~~Light~~shared ~~Vehicles~~bikes and scooters.

Cost of Revenue

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Cost of revenue	$	3,~~337~~697,~~714~~653	$	23,~~543~~337,~~954~~714	3111	%

Cost of revenue increased $~~793~~359.89 million, or 3111%, in ~~2024~~2025 as compared to the prior year. The increase was primarily due to a $~~687~~337.5 8 million increase in insurance costs driven by ~~higher~~increased ~~costs~~ride ~~per~~volume ~~mile~~ paired with ~~increased~~higher ~~ride~~costs ~~volume~~per mile. There were also increases of $7129.4 6 million in transaction fees due to higher ride volume~~, $19~~.~~6 million~~ inThese ~~depreciation~~increases ~~and~~were partially offset by a $1635.80 million decrease in ~~Flexdrive~~restructuring ~~related~~ costs ~~due to decreased gains from the sale of vehicles~~ in ~~2024~~2025 as compared to ~~2023~~2024.

We expect to see cost of revenue increase in the near term on a year-over-year basis due to higher insurance costs driven by recent economic factors and the renewals of our third party insurance agreements, but we expect total insurance costs will increase at a lower rate than they have historically as a result of a recently passed rideshare insurance reform bill, SB 371, which is expected to reduce our insurance rate in California.

Operations and Support

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Operations and support	$	~~443~~478,~~821~~332	$	~~427~~443,~~239~~821	48	%

Operations and support expenses increased $1634.65 million, or 48%, in ~~2024~~2025 as compared to the prior year. The increase was primarily due to increases of $1817.90 million in driver onboarding costs and rider, ~~and~~ driver ~~support~~and ~~costs,~~car ~~$17.7 million~~rental ~~in Light Vehicle~~ fleet ~~operations~~ support costs and $108.6 million in ~~Flexdrive~~ personnel-related costs. ~~These increases were partially offset by a $20.0 million decrease in facilities costs and a $7.1 million decrease in stock-based compensation~~ driven by ~~restructuring~~increased ~~events initiated in prior years, which included the cease use of certain facilities and reductions in~~ headcount.

Research and Development

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Research and development	$	~~397~~451,~~073~~419	$	~~555~~397,~~916~~073	~~(29)~~14	%

Research and development expenses ~~decreased~~increased $~~158~~54.83 million, or 2914%, in ~~2024~~2025 as compared to the prior year. The ~~decrease~~increase was primarily due to ~~decreases~~increases of $9632.35 million in ~~stock~~personnel-~~based~~related ~~compensation~~costs and $6217.9 million in ~~personnel~~stock-~~related~~based ~~costs~~compensation driven by aincreased ~~reduction in~~ headcount ~~after the restructuring events initiated in the third quarter of 2024 and in prior years~~.

Sales and Marketing

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Sales and marketing	$	~~788~~875,~~972~~101	$	~~481~~788,~~004~~972	6411	%

Sales and marketing expenses increased $~~308~~86.01 million, or 6411%, in ~~2024~~2025 as compared to the prior year. The increase was primarily due to ~~increases~~investments ~~of $280.7 million~~ in rider, ~~driver~~engagement ~~and~~including ~~Light~~(i) ~~Vehicle~~a ~~rider~~$43.0 million ~~incentive~~increase ~~programs~~of ~~due~~costs related to ~~investments~~our inincentive ~~rider~~programs ~~engagement,~~from $23402.38 million into ~~rebates,~~ $21445.48 million ~~in brand~~ and ~~other~~(ii) ~~marketing~~a ~~and~~ $1132.09 million increase in marketing partnerships with third parties. ~~These~~There ~~increases~~was ~~were~~also ~~partially~~a ~~offset by decreases of~~ $1314.90 million increase in ~~personnel-related~~brand ~~costs~~ and ~~$12~~other marketing.~~4 million~~ inThese ~~stock-based~~increases ~~compensation~~were ~~driven~~partially offset by a ~~reduction~~$22.6 million indecrease ~~headcount after the restructuring events initiated~~ in ~~the~~advertising ~~third~~expenses ~~quarter~~related ofto ~~2024~~riders and ~~in prior years~~drivers.

5856

General and Administrative

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
General and administrative	$	~~937~~1,~~348~~002,130	$	~~871~~937,~~080~~348	87	%

General and administrative expenses increased $6664.38 million, or 87%, in ~~2024~~2025 as compared to the prior year. The increase was primarily due to ~~increases~~a of $6945.42 million increase in ~~certain~~consultant ~~loss contingencies including legal~~ and ~~tax~~advisory ~~accruals and settlements~~costs, a $5835.05 million inincrease andue ~~accrual~~to ~~for~~higher self-retained general business liabilities, ~~$16.0 million in consultant~~ and ~~advisory~~the ~~costs~~impact ~~and~~of a $1129.5 6 million ingain ~~bad~~from ~~debt~~lease ~~expense.~~termination ~~These~~related ~~increases~~to ~~were~~our ~~partially~~San ~~offset~~Francisco byheadquarters ~~decreases~~recorded ~~of $32.5 million~~ in ~~stock-based~~2024 ~~compensation~~for ~~and~~which ~~$26.3 million~~there inwas ~~personnel-related~~no ~~costs~~equivalent ~~driven~~impact ~~by a reduction~~ in ~~headcount~~2025. ~~after~~These ~~the~~increases ~~restructuring~~were ~~events~~partially ~~initiated~~offset inby ~~the~~decreases ~~third quarter~~ of ~~2024 and in prior years. There was also a decrease of~~ $3427.70 million inrelated ~~facilities~~to ~~costs~~stock-based ~~primarily~~compensation ~~driven~~and ~~by a~~ $2923.63 million ~~gain~~in ascertain aloss ~~result~~contingencies ofincluding anlegal ~~amendment~~and totax ~~the~~accruals ~~lease of our San Francisco headquarters which occurred during the fourth quarter of 2024~~ and ~~impairment charges related to real estate lease right-of-use assets due to the restructuring events initiated in prior years~~settlements.

Interest Expense

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Interest expense	$	(2820,~~921~~755)	$	(2628,~~223~~921)	10(28)	%

Interest expense ~~increased~~decreased $28.72 million, or 1028%, in ~~2024~~2025 as compared to the prior year.

Other Income ~~(Expense)~~, Net

	Year Ended December 31,				% Change
	2024		2023
	2025		2024
	(in thousands, except for percentages)
Other income (expense), net	$	173,183	$	170,123	2	%
Other income, net	$	155,882	$	173,183	(10)	%

Other income ~~(expense)~~, net ~~increased~~decreased $317.13 million, or 210%, in ~~2024~~2025 as compared to the prior year. The ~~increase~~decrease was primarily due to a $2019.6 1 million ~~increase~~decrease in interest income ~~as compared to the prior year due to higher returns on investments~~ and a $5.1 million gain on extinguishment recognized in the first quarter of 2024 related to the partial repurchase of 2025 Notes. ~~These~~The ~~increases~~decrease ~~were~~was partially offset by a ~~prior year~~ $12.~~9 million~~6 ~~gain on an equity method investment incurred in the second quarter of 2023 and a $10.9~~ million ~~decrease~~increase due to foreign currency exchange.

59(Benefit from) Provision for Income Taxes


	Year Ended December 31,				% Change
	2025		2024
	(in thousands, except for percentages)
(Benefit from) provision for income taxes	$	(2,897,255)	$	2,566	NM

NMNot meaningful.

(Benefit from) provision for income taxes decreased $2.9 billion in 2025 as compared to the prior year primarily due to the release of our valuation allowance of U.S. federal and certain state deferred tax assets in the fourth quarter of 2025.

Non-GAAP Financial Measures

	Year Ended December 31,
	2024			2023			% Change
	(in millions, except for percentages)
GAAP Financial Measures
Revenue	$	5,786.0		$	4,403.6		31	%
Net income (loss)	$	22.8		$	(340.3)		107	%
Net income (loss) as a % of revenue	0.4		%	(7.7)		%
Net cash provided by (used in) operating activities	$	849.7		$	(98.2)		965	%
Net cash (used in) provided by investing activities	$	(518.0)		$	599.8		(186)	%
Net cash used in financing activities	$	(155.9)		$	(122.1)		(28)	%
Key Metrics and Non-GAAP Financial Measures
Gross Bookings	$	16,099.4		$	13,775.2		17	%
Adjusted EBITDA	$	382.4		$	222.4		72	%
Net income (loss) as a percentage of Gross Bookings	0.1		%	(2.5)		%
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)	2.4		%	1.6		%
Adjusted Net Income(1)	$	391.5		$	250.7		56	%
Free cash flow(2)	$	766.3		$	(248.1)		409	%

(1)Beginning in the first quarter of 2025, we will no longer present Adjusted Net Income (Loss) as a non-GAAP financial measure.

(2)Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.

Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)

Adjusted EBITDA is a key performance measure and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is a key metric, both of which our management uses to assess our operating performance and the operating leverage in our business. Because Adjusted EBITDA and Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA.

We calculate Adjusted EBITDA as net income (loss), adjusted for:

•interest expense;

•other income ~~(expense)~~, net;

•provision for (benefit from) income taxes;

•depreciation and amortization;

•stock-based compensation;

•payroll tax expense related to stock-based compensation;

•sublease income;

•gain from lease termination, if any;

•costs related to acquisitions, divestitures and ~~divestitures~~other corporate matters, if any; ~~and~~

•certain legal, tax, and regulatory reserve changes and settlements, if any; and

•restructuring charges, if any.

Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is calculated by dividing Adjusted EBITDA for a period by Gross Bookings for the same period.

We announced restructuring plans in the ~~fourth quarter of 2022,~~ second quarter of 2023 and third quarter of 2024 to reduce operating expenses and align strategic priorities. We believe the costs associated with the restructurings are distinguishable from ongoing operating costs and do not reflect current or expected performance of our ongoing operations. We believe the adjustment to exclude the costs related to restructuring from Adjusted EBITDA ~~and Adjusted Net Income (Loss)~~ is useful to investors by enabling them to better assess our ongoing operating performance and provide for better comparability with our historically disclosed Adjusted EBITDA amounts. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding these restructuring plans.

EBITDA and Adjusted Net Income (Loss) amounts. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding these restructuring plans.

We sublease certain office space and earn sublease income. Sublease income is included within other income, net on our consolidated statement of operations, while the related lease expense is included within operating expenses and loss from operations. We believe the adjustment to include sublease income in Adjusted EBITDA is useful to investors by enabling them to better assess our operating performance, including the benefits of recent transactions, by presenting sublease income as a contra-expense to the related lease charges within our operating expenses.

In the fourth quarter of 2024, we terminated a portion of the lease for our San Francisco headquarters. The right-of-use asset associated with the portion of this lease was previously impaired as part of our restructuring plans in the fourth quarter of 2022 and second quarter of 2023, and the extinguishment of the remaining lease liability resulted in the recorded gain within operating lease costs. We believe this does not reflect the current period performance of our ongoing operations and that the adjustment to exclude this gain from lease termination from Adjusted EBITDA ~~and Adjusted Net Income (Loss)~~ is useful to investors by enabling them to better assess Lyft’s ongoing operating performance and provide for better comparability with Lyft’s historically disclosed Adjusted EBITDA ~~and Adjusted Net Income (Loss)~~ amounts. Refer to Note 9 “Leases” to the consolidated financial statements for information regarding this gain from lease termination.

We exclude certain costs related to acquisitions including due diligence costs, professional fees in connection with an acquisition, certain financing costs, and certain integration-related expenses. These expenses are unpredictable, and depend on factors that may be outside of our control and are not reflective of our ongoing core operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of costs related to acquisitions, may not be indicative of such future costs. We believe excluding costs related to acquisitions, divestitures and other corporate matters facilitates the comparison of our financial results to our historical operating results and to other companies in our industry.

Certain legal, tax, and regulatory reserve changes and settlements are primarily related to certain reserves and/or settlements for significant legal proceedings or governmental investigations and the associated fees. These matters have limited precedent, cover extended historical periods and are unpredictable in both magnitude and timing, therefore are distinct from normal, recurring legal, tax and regulatory matters and related expenses incurred in our ongoing operating performance.

For more information regarding the limitations of Adjusted EBITDA, Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) and a reconciliation of net income (loss) to Adjusted EBITDA, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Adjusted Net Income (Loss)

Adjusted Net Income (Loss) is a measure used by our management to understand and evaluate our operating performance and trends. Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss).

We define Adjusted Net Income (Loss) as net income (loss) adjusted for:

•amortization of intangible assets;

•stock-based compensation;

•payroll tax expense related to stock-based compensation;

•gain from lease termination, if any;

•costs related to acquisitions and divestitures, if any;

•impairment charges, if any; and

•restructuring charges, if any.

Beginning in the first quarter of 2025, we will no longer present Adjusted Net Income (Loss) as our management no longer uses this metric for purposes of understanding and evaluating our operating performance.

Free Cash Flow

Free cash flow is a measure used by our management to understand and evaluate our operating performance and trends. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our ability to generate or use cash to enhance the strength of our balance sheet, further invest in our business and pursue potential strategic initiatives.

We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and scooter fleet.

Free cash flow has certain limitations, including that it does not reflect our future contractual commitments and it does not represent the total increase or decrease in our cash balance for a given period. Free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. For more information regarding the limitations of free cash flow and a reconciliation of net cash provided by (used in) operating activities to free cash flow, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

the limitations of free cash flow and a reconciliation of net cash provided by (used in) operating activities to free cash flow, see the section titled “Reconciliation of Non-GAAP Financial Measures”.

Reconciliation of Non-GAAP Financial Measures

We use our non-GAAP financial measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, our non-GAAP financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measure. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view our non-GAAP financial measures in conjunction with the respective most directly comparable GAAP financial measures.

~~Beginning~~Net inincome is the ~~first~~most ~~quarter~~directly ofcomparable ~~2025,~~financial wemeasure ~~will~~to ~~no longer present~~ Adjusted ~~Net~~EBITDA. ~~Income~~The ~~(Loss)~~following astable ~~our~~provides ~~management~~a noreconciliation ~~longer uses this metric for purposes~~ of ~~understanding~~net ~~and~~income ~~evaluating~~to ~~our~~Adjusted ~~operating~~EBITDA ~~performance.~~(in millions):

Net income (loss) is the most directly comparable financial measure to Adjusted EBITDA. The following table provides a reconciliation of net income (loss) to Adjusted EBITDA (in millions):


	Year Ended December 31,
	2025			2024
Net income	$	2,844.0		$	22.8
Adjusted to exclude the following:
Interest expense(1)	25.5			34.7
Other income, net	(155.9)			(173.2)
(Benefit from) provision for income taxes(2)	(2,897.3)			2.6
Depreciation and amortization	135.2			148.9
Stock-based compensation	322.3			330.9
Payroll tax expense related to stock-based compensation	13.0			14.8
Sublease income	0.9			3.5
Costs related to acquisitions, divestitures and other corporate matters	29.4			—
Certain legal, tax, and regulatory reserve changes and settlements	211.6			—
Gain from lease termination	—			(29.6)
Restructuring charges(3)	—			26.9
Adjusted EBITDA(4)	$	528.8		$	382.4
Gross Bookings	$	18,507.0		$	16,099.4
Net income as a percentage of Gross Bookings	15.4		%	0.1		%
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)	2.9		%	2.4		%

	Year Ended December 31,
	2024			2023
Net income (loss)	$	22.8		$	(340.3)
Adjusted to exclude the following:
Interest expense(1)	34.7			29.7
Other (income) expense, net	(173.2)			(170.1)
Provision for (benefit from) income taxes	2.6			8.6
Depreciation and amortization	148.9			116.5
Stock-based compensation	330.9			484.5
Payroll tax expense related to stock-based compensation	14.8			12.5
Sublease income	3.5			4.8
Gain from lease termination(2)	(29.6)			—
Restructuring charges(3)(4)	26.9			76.2
Adjusted EBITDA(5)	$	382.4		$	222.4
Gross Bookings	16,099.4			13,775.2
Net income (loss) as a percentage of Gross Bookings	0.1		%	(2.5)		%
Adjusted EBITDA margin (calculated as a percentage of Gross Bookings)	2.4		%	1.6		%

_______________

(1)Includes $54.8 7 million and $35.48 million related to the interest component of vehicle related finance leases in the year ended December 31, ~~2024~~2025 and ~~2023~~2024. Refer to Note 9 “Leases” to the consolidated financial statements for information regarding the interest component of vehicle-related finance leases.

(2)InIncludes ~~the fourth quarter of 2024, we recorded~~ a $292.69 billion ~~million~~benefit ~~gain~~from asthe arelease ~~result~~ of aour ~~lease~~valuation ~~termination.~~allowance ~~Refer~~of toU.S. ~~Note~~federal 9and ~~“Leases”~~certain tostate ~~the~~deferred ~~consolidated~~tax ~~financial~~assets ~~statements~~in ~~for~~fourth ~~information~~quarter ~~regarding~~of ~~this lease termination~~2025.

(3)In the year ended December 31, 2024, we incurred restructuring charges of $14.1 million of fixed asset disposals, $11.1 million of other current assets disposals and other costs and $1.8 million of severance and other employee costs. Restructuring related charges for accelerated depreciation of fixed assets of $10.6 million are included on its respective line item. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding the restructuring plan announced in September 2024.

(4)InDue ~~the year ended December 31, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs and $25.3 million related~~ to ~~right-of-use-asset impairments and other costs related to the restructuring plans announced in April 2023 and November 2022. Restructuring related charges for stock-based compensation of $9.9 million~~rounding, ~~accelerated~~numbers ~~depreciation~~presented ofmay ~~$1.0~~not ~~million~~add ~~and~~up ~~payroll~~precisely ~~tax expense related~~ to ~~stock-based compensation of $0.6 million incurred in~~ the ~~year~~totals ~~ended December 31, 2023 are included on their respective line items~~provided. ~~Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding the restructuring plan announced in April 2023.~~

~~(5)Due to rounding, numbers presented may not add up precisely to the totals provided.~~59

Net income (loss) is the most directly comparable financial measure to Adjusted Net Income (Loss). The following table provides a reconciliation of net income (loss) to Adjusted Net Income (in millions):

	Year Ended December 31,
	2024		2023
Net income (loss)	$	22.8	$	(340.3)
Adjusted for the following:
Amortization of intangible assets	15.0		16.8
Stock-based compensation	330.9		484.5
Payroll tax expense related to stock-based compensation	14.8		12.5
Gain from lease termination(1)	(29.6)		—
Restructuring charges(2)(3)	37.6		77.2
Adjusted Net Income(4)(5)	$	391.5	$	250.7

_______________

(1)In the fourth quarter of 2024, we recorded a $29.6 million gain as a result of a lease termination. Refer to Note 9 “Leases” to the consolidated financial statements for information regarding this lease termination.

(2)In the year ended December 31, 2024, we incurred restructuring charges of $14.1 million of fixed asset disposals, $11.1 million of other current assets disposals and other costs, $10.6 million of accelerated depreciation of fixed assets and $1.8 million of severance and other employee costs. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding the restructuring plan announced in September 2024.

(3)In the year ended December 31, 2023, we incurred restructuring charges of $50.9 million of severance and other employee costs, $25.3 million related to right-of-use-asset impairments and other costs and $1.0 million of accelerated depreciation related to the restructuring plans announced in April 2023 and November 2022. In addition, restructuring related charges for stock-based compensation of $9.9 million and payroll tax expense related to stock-based compensation of $0.6 million incurred in the year ended December 31, 2023 are included on their respective line items. Refer to Note 15 “Restructuring” to the consolidated financial statements for information regarding the restructuring plan announced in April 2023.

(4)Beginning in the first quarter of 2025, we will no longer present Adjusted Net Income (Loss) as a non-GAAP financial measure.

(5)Due to rounding, numbers presented may not calculate precisely to the totals provided.

Net cash provided by (used in) operating activities is the most directly comparable financial measure to free cash flow. The following table provides a reconciliation of net cash provided by (used in) operating activities to free cash flow (in millions):

	Year Ended December 31,
	2024		2023
	2025		2024
Net cash provided by (used in) operating activities	$	849.7	$	(98.2)
Net cash provided by operating activities	$	1,168.4	$	849.7
Less: purchases of property and equipment and scooter fleet	(8352.58)		(~~149~~83.85)
Free cash flow(1)	$	~~766~~1,115.36	$	~~(248~~766.1)3

_______________

(1)Due to rounding, numbers presented may not calculate precisely to the totals provided.

Cash Flows

The following table summarizes our cash flows for the periods indicated (in thousands):

	Year Ended December 31,
	2024		2023
	2025		2024
Net cash (used in) provided by operating activities	$	849,737	$	(98,244)
Net cash provided by operating activities	$	1,168,438	$	849,737
Net cash (used in) provided by investing activities	(517,978)		599,753
Net cash provided by (used in) investing activities	406,738		(517,978)
Net cash used in financing activities	(~~155~~685,~~869~~528)		(~~122~~155,~~078~~869)
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents	(1,~~636)~~682		~~533~~(1,636)
Net change in cash, cash equivalents and restricted cash and cash equivalents	$	174,254	$	379,964
Net increase in cash, cash equivalents and restricted cash and cash equivalents	$	891,330	$	174,254

Operating Activities

Cash provided by operating activities was $~~849~~1.72 billion ~~million~~ for the year ended December 31, ~~2024~~2025, which consisted of net income of $222.8 billion ~~million~~ adjusted for $~~375~~2.15 billion ~~million~~ of non-cash items, and changes in working capital of $~~451~~829.9 0 million. The year over year improvement in net income ~~(loss)~~ was $~~363~~2.~~1 million~~8 billion, from a net ~~loss~~income of $~~340~~22.3 8 million for the year ended December 31, ~~2023~~2024 to a net income of $222.8 billion ~~million~~ for the year ended December 31, ~~2024~~2025 primarily due to the release of our valuation allowance on U.S. ~~Non-cash~~federal ~~adjustments~~and ~~included~~certain ~~stock-based~~state ~~compensation~~deferred ~~expense~~tax assets in the fourth quarter of ~~$330~~2025.9 ~~million,~~Non-cash ~~which~~adjustments ~~decreased~~primarily ~~year~~consisted ~~over~~of ~~year~~deferred ~~due~~income totax aof ~~reduction~~$2.9 billion indue ~~headcount~~to ~~driven~~the byvaluation ~~the~~allowance ~~restructuring~~release, ~~activities~~stock-based ~~initiated~~compensation inexpense ~~prior~~of ~~years~~$322.3 million, and depreciation and amortization expense of $~~148~~135.9 2 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year, paired with an increase in ride volume in ~~2024~~2025 compared to the previous ~~period~~periods and ~~strategic~~(ii) ~~risk~~an increase in insurance-related accruals. There was also an increase in certain loss contingencies, including legal accruals. These were partially offset by (i) an increase in accounts receivable due to growth in certain initiatives and (ii) ordinary payments for our real estate operating leases.

63Cash provided by operating activities was $849.7 million for the year ended December 31, 2024, which consisted of a net income of $22.8 million adjusted for $375.1 million of non-cash items, and changes in working capital of $451.9 million. The year over year improvement in net income (loss) was $363.1 million, from a net loss of $340.3 million for the year ended December 31, 2023 to a net income of $22.8 million for the year ended December 31, 2024. Non-cash adjustments included stock-based compensation expense of $330.9 million, which decreased year over year due to a reduction in headcount driven by the restructuring activities initiated in prior years, and depreciation and amortization expense of $148.9 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in our insurance reserves due to a rise in commercial auto insurance rates on a per mile basis compared to the prior year, an increase in ride volume in 2024 compared to the previous period and strategic risk management decisions to retain additional risk in certain markets, and (ii) an increase in insurance-related accruals. There was also an increase in certain loss contingencies, including legal accruals. These were partially offset by (i) increases to prepaid expenses for cash outflows related to our insurance activities, including insurance premium payments and (ii) ordinary payments for our real estate operating leases. The timing of our scheduled driver payments also impacted prepaid and other current assets and accrued liabilities.

management decisions to retain additional risk in certain markets, and (ii) an increase in insurance-related accruals. There was also an increase in certain loss contingencies, including legal accruals. These were partially offset by (i) increases to prepaid expenses for cash outflows related to our insurance activities, including insurance premium payments and (ii) ordinary payments for our real estate operating leases. The timing of our scheduled driver payments also impacted prepaid and other current assets and accrued liabilities.

Cash used in operating activities was $98.2 million for the year ended December 31, 2023, which consisted of a net loss of $340.3 million (which has a positive contribution to cash for the year as it was impacted by significant non-cash items, such as depreciation, amortization, and stock-based compensations) which was primarily offset by changes in working capital of $(278.3) million. The year over year decrease in net loss from $1.6 billion to $340.3 million was a result of an increase in our revenue and the actions we have taken to reduce our operating expenses. Net loss was also offset by non-cash adjustments for stock-based compensation expense of $484.5 million and depreciation and amortization expense of $116.5 million. The changes in working capital were primarily driven by insurance, which saw (i) an increase in cash paid related to prepaid expenses and other assets driven by increases in premiums year over year due to higher rates and increased ride volumes, (ii) a decrease in our insurance reserves as insurance payments outpaced accruals in the period and (iii) an increase in our cash outflow related to accounts payable due to the timing of insurance claims payments. There was also an increase in our cash outflow related to accrued and other liabilities primarily due to settlement of historical legal and tax related liabilities.

Investing Activities

Cash provided by investing activities was $406.7 million for the year ended December 31, 2025, which primarily consisted of purchases of marketable securities of $3.3 billion, cash paid for the acquisition of Freenow and TBR of $307.3 million, net of cash acquired and purchases of property and equipment of $52.8 million, partially offset by proceeds from sales and maturities of marketable securities of $4.1 billion and the sale of property and equipment of $52.9 million.

Cash used in investing activities was $518.0 million for the year ended December 31, 2024, which primarily consisted of purchases of marketable securities of $4.2 billion and purchases of property and equipment of $83.5 million, partially offset by proceeds from sales and maturities of marketable securities of $3.6 billion and the sale of property and equipment of $92.0 million.

Cash provided by investing activities was $599.8 million for the year ended December 31, 2023, which primarily consisted of proceeds from sales and maturities of marketable securities of $3.9 billion and the sale of property and equipment of $92.6 million, partially offset by purchases of marketable securities of $3.3 billion and purchases of property and equipment of $149.8 million.60

Financing Activities

Cash used in financing activities was $685.5 million for the year ended December 31, 2025, which primarily consisted of repurchase of Class A common stock of $500.0 million, repayment of our 2025 Notes of $390.7 million, taxes paid related to net share settlement of equity awards of $151.3 million, repayment of loans of $62.4 million and principal payments on finance lease obligations of $41.3 million. This was partially offset by $500.0 million in proceeds from the issuance of our 2030 Notes, reduced by expenditures of $42.0 million related to the purchase of capped calls and $12.2 million in payments of debt issuance costs.

Cash used in financing activities was $155.9 million for the year ended December 31, 2024. This included a net cash inflow of $0.2 million for transactions related to the issuance of our 2029 Notes which included $460.0 million in proceeds from the issuance of the 2029 Notes and expenditures of $350.0 million related to the settlement of the 2025 Notes, $50.0 million related to the repurchase of Class A common stock, $47.9 million related to the purchase of capped calls and $11.9 million in payments of debt issuance costs. Additionally, our financing activities included a repayment of loans of $84.1 million, principal payments on finance lease obligations of $46.7 million and taxes paid related to net share settlement of equity awards of $40.3 million.

Cash used in financing activities was $122.1 million for the year ended December 31, 2023, which primarily consisted of repayment of loans of $72.5 million and principal payments on finance lease obligations for $43.5 million.

Liquidity and Capital Resources

As of December 31, ~~2024~~2025, our principal sources of liquidity were cash and cash equivalents of approximately $~~759~~1.31 ~~million~~billion and short-term investments of approximately $1705.2 ~~billion~~million, exclusive of restricted cash, and cash equivalents and restricted investments of $1.59 billion, and ~~a revolving credit facility in an aggregate principal amount of~~ $420.0 million asavailable ~~described~~to ~~below.~~draw ~~The~~under ~~portion of~~ our ~~cash~~revolving ~~and~~credit ~~cash~~facility, ~~equivalents~~as ~~that~~described isbelow. ~~not~~We ~~invested~~believe ~~is held at several large financial institutions and~~ our ~~investments~~existing ~~are focused on the preservation of capital~~cash, ~~fulfillment~~cash ~~of our liquidity needs~~equivalents, and ~~maximization~~short ofterm ~~investment~~investments, ~~performance~~along ~~within~~with the ~~parameters~~available ~~set~~borrowings ~~forth~~under in our ~~investment~~revolving ~~policy~~credit ~~and~~facility ~~subject~~will toprovide ~~market~~sufficient ~~conditions.~~liquidity ~~The~~to ~~investment~~meet ~~policy~~our ~~sets~~working ~~forth~~capital ~~credit rating minimums~~needs, ~~permissible~~inclusive ~~allocations,~~of ~~and~~short-term ~~limits~~commitments ~~our~~such ~~exposure~~as tocapital ~~specific~~expenditure ~~investment~~needs, ~~types.~~for Weat ~~believe~~least ~~these~~the ~~policies~~next ~~mitigate~~12 ~~our exposure to any risk concentrations~~months.

OnThe ~~November~~portion 3, 2022, we entered into a Revolving Credit Agreement with certain lenders which provides for a $420 million senior secured revolving credit facility (as amended to date, the “Revolving Credit Facility”) maturing on November 3, 2027 or February 13, 2025, if, as of ~~February 13, 2025,~~ our ~~Liquidity~~cash ~~(as~~and ~~defined~~cash inequivalents ~~the~~that ~~Revolving~~is ~~Credit~~not ~~Agreement)~~invested ~~minus~~is ~~the~~held ~~aggregate~~at ~~principal~~several ~~amount~~large offinancial ~~the~~institutions ~~2025~~and ~~Notes~~our ~~outstanding~~investments ~~on such date is less than $1.25 billion. We~~ are ~~obligated~~focused ~~to pay interest~~ on ~~loans under~~ the ~~Revolving~~preservation ~~Credit~~of ~~Facility~~capital, ~~and~~fulfillment ~~other customary fees for a credit facility~~ of ~~this~~our ~~size~~liquidity ~~and type~~needs, ~~including~~and anmaximization ~~unused~~of ~~commitment~~investment ~~fee.~~performance ~~The~~within ~~interest rate for~~ the ~~Revolving~~parameters ~~Credit Facility is determined based on calculations using certain market rates as~~ set forth in ~~the~~our ~~Revolving~~investment ~~Credit~~policy ~~Agreement.~~and Insubject ~~addition,~~to ~~the~~market ~~Revolving Credit Facility contains customary covenants, including restrictions on payments such as cash payments of dividends~~conditions. The ~~Revolving~~investment ~~Credit~~policy ~~Facility~~sets ~~provides~~forth ~~for borrowings up to the amount of the facility, with a sublimit of $168 million for the issuance of letters of~~ credit. Werating ~~entered into Amendment No. 1 to the Revolving Credit Agreement on December 12~~minimums, ~~2023~~permissible ~~and Amendment No. 2 on February 21~~allocations, ~~2024~~ and ~~such~~limits ~~amendments~~our ~~amended~~exposure ~~the existing agreement~~ to, ~~among~~specific ~~other~~investment things: (a) solely for the purposes of the financial covenant test, replace total leverage with total net leverage, which allows us to subtract the lesser of (i)(x) to the extent free cash flow for the most recently ended trailing four quarters is greater than $100types.0 ~~million,~~We ~~$300.0~~believe ~~million~~these ~~and~~policies ~~(y)~~mitigate ~~otherwise, $200.0 million and (ii) the amount of unrestricted cash and cash equivalents (as defined in the Amended Agreement) on~~ our ~~consolidated~~exposure ~~balance~~to ~~sheets~~any asrisk ~~of the calculation date and (b) permit us to~~ concentrations.

64Debt

~~repurchase~~On upNovember to3, 2022, we entered into a ~~specified~~Revolving ~~amount~~Credit ofAgreement ~~our~~with ~~common~~certain ~~stock~~lenders which provides for a $420 million senior secured revolving credit facility, with a sublimit of $168 million for the ~~proceeds~~issuance of aletters ~~convertible~~of ~~note~~credit ~~offering~~(as amended to date, the “Revolving Credit Facility”), maturing on November 3, 2027. ~~The~~As of December 31, 2025, no amounts have been drawn under the Revolving Credit Facility. ~~also~~Our ~~contains~~available ~~certain~~credit ~~customary~~under ~~events~~the Revolving Credit Facility is reduced by $61.3 million in letters of ~~default~~credit issued under the Revolving Credit Facility as of December 31, 2025. Refer to Note 11 “Debt” to the consolidated financial statements for further discussion on the Revolving Credit Facility, including covenant requirements.

In February 2024, we ~~completed~~issued ~~an offering of~~ $460 million aggregate principal amount of the 2029 Notes and in aSeptember ~~private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933~~2025, aswe ~~amended.~~issued ~~We used (1) approximately~~ $~~350~~500 million ~~of the net proceeds to repurchase approximately $356.8 million in~~ aggregate principal amount of ~~our 2025 Notes in separate and privately negotiated transactions entered into concurrently with~~ the ~~pricing~~2030 ~~of the offering with certain holders of the 2025~~ Notes ~~effected through one of the initial purchasers of the 2029 Notes or its affiliate~~, ~~acting~~maturing asin ~~our~~March ~~agent, (2) approximately $47.9 million of the net proceeds to pay the cost of the~~ 2029 ~~Capped Calls~~ and ~~(3)~~September ~~approximately~~2030, ~~$50 million of the net proceeds to purchase Class A common stock from institutional investors through one of the initial purchasers of the 2029 Notes or its affiliate~~respectively, ~~acting~~unless asearlier ~~Lyft’s agent~~converted, atredeemed aor ~~price per share equal to the last reported sale price of the Class A common stock on the Nasdaq Global Select Market on the date of the pricing of the 2029 Notes~~repurchased. Refer to Note 11 “Debt” and Note 12 "“Common Stock and Employee Stock Plans"” to the consolidated financial statements for information regarding these transactions.

WeRestricted collect the fare and related charges from riders on behalf of drivers at the time the ride is delivered using the rider’s authorized payment method, and we retain any fees owed to us before making the remaining disbursement to drivers. Accordingly, we maintain no accounts receivable from drivers. Our contracts with insurance providers require reinsurance premiums to be deposited into trust accounts with a third-party financial institution from which the insurance providers are reimbursed for claims payments. Our restricted reinsurance trust investments as of December 31, 2024 and 2023 were $1.4 billion and $837.3 million, respectively. Assets

We ~~have~~collect ~~$2.0~~the ~~billion~~fare ~~in unrestricted cash~~ and ~~cash~~related ~~equivalents~~charges ~~and~~from ~~short-term~~riders ~~investments~~on asbehalf of ~~December 31,~~drivers ~~2024.~~at Wethe ~~also~~time ~~have~~ the ~~ability~~ride tois ~~borrow~~delivered anusing ~~aggregate principal amount of up to $420.0 million under~~ the ~~Revolving~~rider’s ~~Credit~~authorized ~~Facility,~~payment ~~none of which has been drawn as of December 31~~method, ~~2024,~~ and ~~$72.6~~we ~~million~~retain inany ~~letters~~fees ofowed ~~credit~~to ~~were~~us ~~issued~~before ~~under~~making the ~~Revolving~~remaining ~~Credit~~disbursement ~~Facility~~to ~~as of December 31, 2024~~drivers. ~~We believe that this provides sufficient liquidity to meet our working capital~~Accordingly, ~~inclusive~~we ofmaintain ~~short-term~~no ~~commitments~~accounts ~~such~~receivable asfrom ~~the~~drivers. ~~current~~Our ~~portion~~contracts ofwith ~~our~~insurance ~~convertible~~providers ~~senior~~require ~~notes~~reinsurance ~~which~~premiums ~~we plan~~ to ~~settle~~be ~~with~~deposited ~~cash~~into intrust ~~early~~accounts ~~2025,~~with ~~and~~a ~~capital~~third-party ~~expenditures~~financial ~~needs~~institution ~~for~~from atwhich ~~least~~ the ~~next~~insurance 12providers ~~months.~~are Inreimbursed ~~the year ended December 31, 2024, we achieved annual net income~~ for ~~the~~claims ~~first time in our operating history~~payments. WeOur ~~plan~~restricted toreinsurance ~~continue~~trust toassets ~~focus~~as ~~on and actively manage our cash balances and liquidity, capital expenditures, working capital and operating expenses. In particular, we continue to actively monitor the impact~~ of ~~the uncertain macroeconomic environment~~December 31, ~~including~~2025 ~~tightening credit markets, inflation~~ and ~~changing interest rates and have made adjustments to our expenses and cash flow which include headcount reductions announced in the third quarter of~~ 2024, ~~second~~were ~~quarter of 2023 and fourth quarter of 2022~~$1.9 Webillion ~~have also incurred restructuring charges related to the exit~~ and ~~sublease or cease use of certain facilities to align with our anticipated operating needs in the fourth quarter of 2022 and the first quarter of 2023~~$1.5 ~~Refer~~billion, ~~to Note 15 “Restructuring” to the consolidated financial statements for information regarding these reductions in workforce~~respectively.

~~Our~~Share future capital requirements will depend on many factors, including, but not limited to our growth, the effectiveness of our efforts to align our expenses with our current operating needs and short-term commitments, our ability to attract and retain drivers and riders on our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, actual insurance payments for which we have made reserves, and the expansion of sales and marketing activities, as well as satisfaction of our obligations with respect to any indebtedness. Further, we may in the future enter into arrangements to acquire or invest in businesses, products, services and technologies. For example, we intend to invest further in EVs in order to achieve compliance with the California Clean Miles Standard which sets the target that 90% of rideshare miles in California must be in EVs by the end of 2030; the Massachusetts’ Climate Bill; New York City's goal to get to 100% of rideshare rides in EVs or wheelchair accessible vehicles by 2030, and the City of Toronto’s push to bring the industry to 100% electric by 2030. In addition, in February 2025, we announced that our board of directors had authorized a program for the repurchase of up to $500 million of our Class A common stock. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Refer to Note 17 “Subsequent Events” to the consolidated financial statements for additional information regarding this repurchase program. From time to time, we have and we may in the future seek additional equity or debt financing to fund capital expenditures, strategic initiatives or investments and our ongoing operations, or to refinance our existing or future indebtedness. In the event that we decide, or are required, to seek additional financing from outside sources, we may not be able to raise it on terms acceptable to us or at all. The terms of any additional financings or refinancings may place limits on our financial and operating flexibility. If we raise additional funds through further issuances of equity or equity-linked securities, our existing stockholders could suffer dilution in their percentage ownership of us, and any new securities we issue could have rights, preferences and privileges senior to those of holders of our common stock. If we are unable to raise additional capital when desired, our business, financial condition and results of operations could be adversely affected.Repurchase

65In February 2025, we announced that our board of directors had authorized a program for the repurchase of up to $500.0 million of our Class A common stock. In May 2025, our board of directors authorized an increase to this initial share repurchase program of an additional $250.0 million of our Class A common stock, for a total overall authorization of up to $750.0 million, and we announced our intent to utilize $500.0 million of this authorization before the end of the second quarter of 2026. As of December 31, 2025, we had repurchased an aggregate amount of $500.0 million of our Class A common stock, and $250.0 million remained available under the initial repurchase authorization. In February 2026, our board of directors authorized a new share repurchase program for the repurchase of up to $1.0 billion of our Class A common stock, in addition to amounts remaining available under our initial repurchase program. We have entered into, and from time to time expect to enter into, Rule 10b5-1 trading plans to facilitate the repurchase of shares under the authorization. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. Refer to Note

12 “Common Stock and Employee Stock Plans” and Note 16 “Subsequent Events” to the consolidated financial statements for information regarding these programs.

We plan to continue to focus on and actively manage our cash balances and liquidity, capital expenditures, working capital and operating expenses. In particular, we continue to actively monitor the impact of the uncertain macroeconomic environment, including credit markets, inflation and interest rates, and have made adjustments to our expenses and cash flow. Our future capital requirements will depend on many factors, including, but not limited to, our growth, the effectiveness of our efforts to align our expenses with our current operating needs and short-term commitments, our ability to attract and retain drivers and riders on our platform, the continuing market acceptance of our offerings, the timing and extent of spending to support our efforts to develop our platform, actual insurance payments for which we have made reserves, and the expansion of sales and marketing activities, as well as satisfaction of our obligations with respect to indebtedness. See the section titled “Risk Factors” including the subsection titled “Risk Factors—Risks Related to Financing and Transactional Factors” included in Part 1, Item 1A of this Annual Report on Form 10-K for additional discussion of risks that our business faces.

Contractual Obligations and Commitments

	Payments Due by Period
	Total(2)		12 months or less		Thereafter
Operating lease commitments	$	228.0	$	35.3	$	192.7
Financing lease commitments	94.2		35.3		58.9
Long-term debt, including current maturities(1)	995.0		429.1		566.0
Other noncancelable agreements	109.3		10.2		99.1

The following table summarizes our contractual obligations and commitments as of December 31, 2025 (in millions):


	Payments Due by Period
	Total(2)		12 months or less		Thereafter
Operating lease commitments	$	232.9	$	38.2	$	194.7
Financing lease commitments	81.2		38.8		42.4
Long-term debt, including current maturities(1)	1,053.0		50.6		1,002.4
Purchase commitments	672.6		146.4		526.2

_______________

(1)Includes the ~~convertible~~2029 ~~senior notes issued in May 2020 (the "2025~~ Notes") and ~~February~~2030 ~~2024 (the "2029~~ Notes") with outstanding principal amounts of $~~390~~460.70 million and $~~460~~500.0 million, respectively, as of December 31, ~~2024~~2025. The ~~2025~~2029 Notes and ~~2029~~2030 Notes mature on ~~May~~March 151, ~~2025~~2029 and ~~March~~September 115, ~~2029~~2030, respectively, unless earlier converted, redeemed or repurchased. Refer to Note 11 "“Debt"” to the consolidated financial statements for information regarding the ~~2025~~2029 Notes and ~~2029~~2030 Notes.

(2)Due to rounding, numbers presented may not add up precisely to the totals provided.

We did not have during the periods presented, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Policies and Estimates

Our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K are prepared in accordance with GAAP. The preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected.

We believe that the accounting policies described below involve a significant degree of judgment and complexity. Accordingly, we believe these are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations. For further information, see Note 2 “Summary of ~~the~~Significant ~~notes~~Accounting toPolicies” ~~our consolidated financial statements~~ included elsewhere in this Annual Report on Form 10-K.

Revenue Recognition

~~Revenues~~We generate substantially all our revenue from ~~Contracts~~our ~~with~~ridesharing ~~Customers~~marketplace (that connects drivers and riders. We recognize revenue from fees paid by drivers for use of our Lyft Platform offerings in accordance with ASC 606) as described in Note 2 “Summary of Significant Accounting Policies”.

We ~~generate~~recognize ~~substantially~~revenue ~~all~~upon ~~our~~completion ~~revenue~~of ~~from~~a ~~our~~ride ~~ridesharing~~as ~~marketplace~~the ~~that~~single ~~connects~~performance ~~drivers~~obligation is satisfied and ~~riders~~we have the right to receive payment for the services rendered upon the completion of the ride. We ~~recognize~~evaluate the presentation of revenue ~~from~~on ~~fees~~a ~~paid~~gross versus net basis based on whether we act as a principal by ~~drivers~~controlling the transportation service provided to the rider or whether we act as an agent by arranging for ~~use~~third ofparties ~~our~~to ~~Lyft~~provide ~~Platform~~the ~~offerings~~service to the rider. Judgment is required in ~~accordance~~this ~~with~~assessment, ~~ASC~~and ~~606~~in most cases, we act as ~~described~~an agent in ~~Note~~facilitating 2the ability of ~~the~~a ~~notes~~driver to ~~our~~provide ~~consolidated~~a ~~financial~~transportation ~~statements~~service to a rider. ~~Drivers~~Revenue ~~enter~~generated ~~into~~in ~~terms~~these ofcases is reported on a net basis, reflecting the service ~~(“ToS”)~~fees ~~with~~and commissions owed to us from the drivers as revenue, and not the gross amount collected from the rider. In certain markets, we act as a principal for transportation services as we control the services provided. Revenue generated in ~~order~~these markets is reported on a gross basis reflecting the gross amount collected from the rider, with payments to ~~use~~the ~~our~~drivers ~~Lyft~~recorded ~~Driver~~within ~~App.~~cost of revenue.

We ~~provide~~also aoffer ~~service~~various incentive programs to drivers toand ~~complete~~riders ato ~~successful~~encourage ~~transportation~~use ~~service~~of ~~for~~the ~~riders~~Lyft Platform. ~~This~~Judgment ~~service~~is ~~includes~~required ~~on-demand~~to ~~lead~~determine ~~generation~~the ~~that~~appropriate ~~assists~~classification ~~drivers~~of tothese ~~find,~~incentives. ~~receive~~Incentives ~~and~~provided ~~fulfill~~to ~~on-demand~~drivers ~~requests~~and ~~from~~bikes and scooters riders ~~seeking~~are ~~transportation~~generally ~~services~~recorded ~~and~~as ~~related~~reduction ~~collection~~to ~~activities~~revenue ~~using~~if ~~our~~we ~~Lyft~~do ~~Platform.~~not Asreceive a ~~result,~~distinct ~~our~~good ~~single~~or ~~performance~~service ~~obligation~~ in ~~the~~consideration ~~transaction~~or isif towe ~~connect~~cannot ~~drivers~~reasonably ~~with~~estimate ~~riders~~the tofair ~~facilitate~~value ~~the~~of ~~completion~~goods ofor aservices ~~successful~~received. In markets where we control the transportation ~~service~~services ~~for~~provided, ~~riders.~~incentives provided to

We evaluate the presentation of revenue on a gross versus net basis based on whether we act as a principal by controlling the transportation service provided to the rider or whether we act as an agent by arranging for third parties to provide the service to the rider. We facilitate the provision of a transportation service by a driver to a rider (the driver’s customer) in order for the driver to fulfill their contractual promise to the rider. The driver fulfills their promise to provide a transportation service to their customer through use of the Lyft Platform. While we facilitate setting the price for transportation services, the drivers and riders have the discretion in accepting the transaction price through the platform. We do not control the transportation services being provided to the rider nor do we have inventory risk related to the transportation services. As a result, we act as an agent in facilitating the ability for a driver to provide a transportation service to a rider. 62

Wedrivers ~~report~~are ~~revenue~~recognized onin ~~a net~~cost ~~basis,~~of ~~reflecting~~revenue. ~~the~~Incentives ~~service~~provided ~~fees and commissions owed~~ to usriders ~~from~~are ~~the~~generally ~~drivers~~recognized as ~~revenue,~~sales and ~~not~~marketing ~~the~~expense ~~gross amount collected from the rider. We made this determination of not being primarily responsible for the services since we do not promise the transportation services, do not contract~~ with ~~drivers to provide transportation services on our behalf, do not control whether~~ the ~~driver~~exception ~~accepts or declines the transportation request via the Lyft Platform, and do not control the provision~~ of ~~transportation~~market-wide ~~services~~marketing ~~by drivers to riders at any point in time either before, during, or after, the trip~~promotions.

We consider the ToS and our customary business practices in identifying the contracts under ASC 606. As our customary business practice, a contract exists between the driver and us when the driver’s ability to cancel the trip lapses, which typically is upon pickup of the rider. We collect the fare and related charges from riders on behalf of drivers using the rider’s pre-authorized credit card or other payment mechanism and retain any fees owed to us before making the remaining disbursement to drivers; thus the driver’s ability and intent to pay is not subject to significant judgment.

We earn service fees and commissions from the drivers either as the difference between an amount paid by a rider based on an upfront quoted fare and the amount earned by a driver based on actual time and distance for the trip or as a fixed percentage of the fare charged to the rider. In an upfront quoted fare arrangement, as we do not control the driver’s actions at any point in the transaction to limit the time and distance for the trip, we take on risks related to the driver’s actions which may not be fully mitigated. We earn a variable amount from the drivers and may record a loss from a transaction, which is recorded as a reduction to revenue, in instances where an up-front quoted fare offered to a rider is less than the amount we are committed to pay the driver.

We recognize revenue upon completion of a ride as the single performance obligation is satisfied and we have the right to receive payment for the services rendered upon the completion of the ride.

We offer various incentive programs to drivers that are recorded as reduction to revenue if we do not receive a distinct good or service in consideration or if we cannot reasonably estimate the fair value of goods or services received.

In some cases, we also earn Concierge platform fees from organizations that use our Concierge offering, which is a product that allows organizations to request rides for their customers and employees through our ridesharing marketplace. Concierge platform fees are earned as a fixed dollar amount per ride or a percentage of the ride price depending on the contract and such Concierge platform fee revenue is recognized on a gross basis.

We recognize revenue from subscription fees paid by users to access transportation options through the Lyft Platform and mobile-based applications over the applicable subscription period.

We also recognize revenue from bikes and bike station hardware and software sales when control is transferred to the customer. These revenues are not significant to the Company’s consolidated revenue.

We generate revenue from licensing and data access agreements. We are primarily responsible for fulfilling our promise to provide rideshare data and access to Flexdrive vehicles and bear the fulfillment risk, and the responsibility of providing the data, over the license period. We act as a principal in delivering the data and access licenses and present revenue on a gross basis. Consideration allocated to each performance obligation, the data delivery and vehicle access, are determined by assigning the relative fair value, which represents the stand alone selling price, to each of the performance obligations. Revenue is recorded ratably over the quarter for access to fleet vehicles as our respective performance obligation is satisfied upon the delivery of each. Revenue was recorded upon delivery of the rideshare data until expiration of the rideshare contract in the second quarter of 2024. These revenues are not significant to the Company’s consolidated revenue.

We have arrangements to provide advertising services to third parties that are interested in reaching users of our platform. These arrangements generally require us to provide advertising services over a fixed period of time for which revenue is recognized ratably over the contractual period. These revenues are not significant to the Company’s consolidated revenue.

Rental Revenue (ASC 842)

We generate rental revenues primarily from Flexdrive, an independently managed subsidiary, and our network of Light Vehicles. Under the Flexdrive program, we operate a fleet of rental vehicles comprised of both vehicles owned by us and vehicles leased from third-party leasing companies. We either lease or sublease vehicles to drivers and as a result, we are considered the accounting lessor or sublessor, as applicable, in these arrangements in accordance with ASC 842. For vehicles that are subleased, sublease income and head lease expense for these transactions are recognized on a gross basis on the consolidated financial statements. Drivers who rent vehicles are charged rental fees, which we collect from the driver by deducting such amounts from the driver’s earnings on the Lyft Platform.

Revenue generated from single-use ride fees paid by Light Vehicles riders are recognized upon completion of each related ride. Revenue generated from Flexdrive is recognized evenly over the rental period, which is typically seven days or less. Due to the short-term nature of the Flexdrive and Light Vehicle transactions, we classify these rentals as operating leases.

Insurance Reserves and Insurance-related Accruals

We utilize both a wholly-owned captive insurance subsidiary and third-party insurance, which may include deductibles and self-insured retentions, to insure or reinsure costs including auto liability, uninsured and underinsured motorist, auto physical damage, first party injury coverages including personal injury protection under state law and general business liabilities up to certain limits. The recorded liabilities reflect the estimated cost for claims incurred but not paid and claims that have been incurred but not yet reported and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. Liabilities are determined on a quarterly basis byusing ~~internal~~assumptions ~~actuaries~~based on actuarial judgment through an analysis of historical trends, changes in claims experience including consideration of new information and application of loss development factors for the insurance reserves and frequency and severity assumptions for the insurance-related accruals, among other inputs and assumptions.

67Insurance claims may take years to completely settle. Accordingly, we make certain assumptions based on currently available information and industry statistics, with the loss development factors as the most significant assumptions related to the insurance reserves and the frequency and severity assumptions as the most significant assumptions related to insurance-related accruals, and utilize actuarial models and techniques to estimate the reserves. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future years for events that occurred in a prior year at a rate that differs from previous actuarial projections. The impact of these factors on ultimate costs for insurance is difficult to estimate and could be material. However, while we believe that the insurance reserve and insurance-related accrual amounts are adequate, the ultimate liabilities may be in excess of, or less than, the amounts provided. As a result, the net amounts that will ultimately be paid to settle the liabilities and when amounts will be paid may significantly vary from the estimated amounts provided for in the consolidated balance sheets. We continue to review our insurance reserve estimates in a regular, ongoing process as historical experience develops, additional claims are reported as settled, and the legal, regulatory and economic environment evolves.

assumptions for the insurance-related accruals, among other inputs and assumptions. On an annual basis, an independent third-party actuary will evaluate the liabilities for appropriateness with claims reserve valuations.

Insurance claims may take years to completely settle, and we have limited historical loss experience. Because of the limited operational history, we make certain assumptions based on currently available information and industry statistics, with the loss development factors as the most significant assumptions related to the insurance reserves and the frequency and severity assumptions as the most significant assumptions related to insurance-related accruals, and utilize actuarial models and techniques to estimate the reserves. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future years for events that occurred in a prior year at a rate that differs from previous actuarial projections. The impact of these factors on ultimate costs for insurance is difficult to estimate and could be material. However, while we believe that the insurance reserve and insurance-related accrual amounts are adequate, the ultimate liabilities may be in excess of, or less than, the amounts provided. As a result, the net amounts that will ultimately be paid to settle the liabilities and when amounts will be paid may significantly vary from the estimated amounts provided for in the consolidated balance sheets. We continue to review our insurance reserve estimates in a regular, ongoing process as historical experience develops, additional claims are reported as settled, and the legal, regulatory and economic environment evolves.

Business Combinations

We account for our business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, we make significant estimates and assumptions, especially with respect to intangible assets. Our estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, we may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected on the consolidated statements of operations. ~~Acquisition costs, such as legal and consulting fees, are expensed as incurred.~~

Goodwill

Goodwill is not subject to amortization, but is tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying amount of the goodwill may not be recoverable. AsWe ~~part of the annual goodwill impairment test, we~~ first perform a qualitative assessment to determine whether further impairment testing is necessary. Judgment in the assessment of qualitative factors of impairment include, among other factors: financial performance; legal, regulatory, contractual, business, and other factors; entity specific factors; industry and market considerations, macroeconomic conditions, and other relevant events and factors affecting the reporting unit. To the extent we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed.

Loss Contingencies

We are involved in legal proceedings, claims, and regulatory and governmental inquiries and investigations in the ordinary course of business. Certain matters include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is both probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be reasonably estimated, we disclose the possible loss in the accompanying notes to the consolidated financial statements.

We review the developments in our contingencies that could affect the amount of the provisions that have been previously recorded, and the matters and related reasonably possible losses disclosed. We make adjustments to our provisions and changes to our disclosures accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Significant judgment is required to determine both the probability and the estimated amount of loss. These estimates have been based on our assessment of the facts and circumstances at each balance sheet date and are subject to change based on new information and future events.

The outcomes of our legal proceedings are inherently unpredictable and subject to significant uncertainties. For matters where the Company has recorded a probable and estimable loss, until the final resolution of the matter, there may be exposure to a material loss in excess of the amount recorded. 63

The outcomes of our legal proceedings are inherently unpredictable and subject to significant uncertainties. For matters where we have recorded a probable and estimable loss, until the final resolution of the matter, there may be exposure to a material loss in excess of the amount recorded.

Income Taxes

~~The~~We ~~Company~~record ~~records~~ a valuation allowance to reduce ~~its~~ deferred tax assets to the net amount that itwe ~~believes~~believe is more-likely-than-not to be realized. WeIn assessing the need for a valuation allowance, we consider all available evidence, both positive and negative, including historical ~~levels of income~~profitability, expectations and risks associated with ~~estimates of~~ future taxable income, and ongoing tax planning strategies. inWe ~~assessing~~weigh positive and negative evidence based on the ~~need~~extent ~~for~~to awhich ~~valuation~~it ~~allowance~~can be objectively verified. WeThe ~~have~~assessment aof the valuation allowance ~~for~~requires significant management judgment regarding future profitability, which may change due to many factors, including future market conditions and our Uability to successfully execute business plans.S. Changes in our assessment of the realizability of deferred tax assets, ~~including~~could ~~federal~~result in adjustments to the valuation allowance and ~~state~~corresponding ~~net~~impacts ~~operating~~to ~~loss~~our income tax provision in future periods.

68In recognizing tax benefits from uncertain tax positions, we assess whether it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities based on its technical merits. Evaluating our tax positions and determining our provision for income taxes are inherently uncertain and requires judgment and use of assumptions and estimates.

carryforwards. We expect to maintain this valuation allowance until it becomes more-likely-than-not that the benefit of our federal and state deferred tax assets will be realized. However, based on our current and anticipated future earnings, our management believes it is reasonably possible that sufficient positive evidence of sustained U.S. profitability may become available in the foreseeable future to reach a conclusion that the U.S. valuation allowance will no longer be needed. The timing and amount of the valuation allowance release could vary based on the level of profitability that the Company is able to actually achieve. A release of all or a portion of the valuation allowance would result in the recognition of certain deferred tax assets and a material income tax benefit for the period in which such release is recorded.

In recognizing tax benefits from uncertain tax `positions, the Company assesses whether it is more-likely-than-not that the tax position will be sustained upon examination by the taxing authorities based on its technical merits. Evaluating our tax positions and determining our provision for income taxes are inherently uncertain and requires judgement and use of assumptions and estimates.

Recent Accounting Pronouncements

See Note 2 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for recent accounting pronouncements as of the date of this report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risks in the ordinary course of our business, which primarily relate to fluctuations in interest rates and foreign currency exchange. Such fluctuations to date have not been significant.

Interest Rate Risk

As of December 31, ~~2024~~2025, we had unrestricted cash, cash equivalents and short-term investments of approximately $21.08 billion, which consisted primarily of institutional money market funds, certificates of deposits, commercial paper, corporate bonds, and ~~term~~U.S. ~~deposits~~government and agency securities, which each carry a degree of interest rate risk, and restricted cash, cash equivalents and restricted investments of $1.59 billion. As of December 31, ~~2024~~2025, we had long-term debt of $~~995~~1.01 ~~million~~billion, ~~39% of~~ which primarily consisted of the fixed-rate ~~2025~~2029 Notes we issued in ~~May~~February ~~2020,~~2024 and ~~45%~~the of2030 Notes which ~~consisted~~have ofa ~~the~~0% ~~fixed-~~interest rate ~~2029 Notes we~~ issued in ~~February~~September ~~2024~~2025. A hypothetical 100 basis points change in interest rates would not have a material impact on our financial condition or results of operations.

Foreign Currency Exchange Risk

Our international revenue, as well as costs and expenses denominated in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the U.S. dollar. We have experienced and will continue to experience fluctuations in our net income (loss) as a result of transaction gains or losses related to revaluing and ultimately settling certain asset and liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded. The effect of a hypothetical 10% change in foreign currency exchange rates applicable to our business would not have a material impact on our consolidated financial statements.

6964

Item 8. Financial Statements and Supplementary Data.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm (PCAOB ID: 238)			7166
Consolidated Balance Sheets			7368
Consolidated Statements of Operations			7469
Consolidated Statements of Comprehensive Income (Loss)			7570
Consolidated Statements of Stockholders’ Equity			7671
Consolidated Statements of Cash Flows			7772
Notes to Consolidated Financial Statements			7974

7065

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Lyft, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Lyft, Inc. and its subsidiaries (the "“Company"”) as of December 31, ~~2024~~2025 and ~~2023~~2024, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, ~~2024~~2025, including the related notes (collectively referred to as the "“consolidated financial statements"”). We also have audited the Company's internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2024~~2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Change in Accounting Principle

As discussed in Note 11 to the consolidated financial statements, the Company changed the manner in which it accounts for convertible debt in 2022.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a ~~whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.~~

~~Valuation of Insurance Reserves and Insurance-Related Accruals~~66

~~As described in Notes 2 and 8 to the consolidated financial statements~~whole, ~~the Company utilizes both a wholly-owned captive insurance subsidiary~~ and ~~third-party~~we ~~insurance,~~are ~~which may include deductibles and self-insured retentions~~not, toby ~~insure~~communicating orthe ~~reinsure~~critical ~~costs,~~audit ~~including~~matter ~~auto liability~~below, ~~uninsured~~providing and underinsured motorist, auto physical damage, first party injury coverages including personal injury protection under state law and general business liabilities up to certain limits. As of December 31, 2024, insurance reserves and insurance-related accruals totaled $1,701.4 million and $763.8 million, respectively. These liabilities are determined on a ~~quarterly~~separate ~~basis~~opinion ~~by internal actuaries through an analysis of historical trends and changes in claims experience. Management makes certain assumptions based~~ on ~~currently available information and industry statistics, with~~ the ~~loss~~critical ~~development~~audit ~~factors~~matter asor ~~the~~on ~~most significant assumption related to~~ the ~~insurance~~accounts ~~reserves~~or ~~and~~disclosures ~~the frequency and severity assumptions as the most significant assumptions related~~ to ~~the~~which ~~insurance-related~~it ~~accruals, and utilizes actuarial models and techniques to estimate the reserves~~relates.

~~The~~Valuation ~~principal considerations for our determination that performing procedures relating to the valuation~~ of ~~insurance~~Certain ~~reserves~~Insurance ~~and~~Reserves ~~insurance-related accruals is a critical audit matter are (i) the significant judgment by management when determining the estimated insurance reserves~~ and ~~insurance~~Insurance-~~related~~Related accruals; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence relating to the actuarial valuation techniques and management’s significant assumptions related to loss development factors for the insurance reserves and the frequency and severity for the insurance related accruals; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Accruals

~~Addressing~~As ~~the~~described ~~matter~~in ~~involved~~Notes ~~performing~~2 ~~procedures~~ and ~~evaluating~~8 ~~audit~~to ~~evidence~~the inconsolidated ~~connection~~financial ~~with~~statements, ~~forming~~the ~~our~~Company ~~overall~~utilizes ~~opinion~~both ona ~~the~~wholly-owned ~~consolidated~~captive ~~financial~~insurance ~~statements.~~subsidiary ~~These~~and ~~procedures~~third-party ~~included~~insurance, ~~testing~~which ~~the~~may ~~effectiveness~~include ofdeductibles ~~controls~~and ~~relating~~self-insured retentions, to ~~the~~insure ~~valuation~~or ofreinsure ~~insurance~~costs ~~reserves~~including auto liability, uninsured and ~~insurance-related~~underinsured ~~accruals~~motorist, ~~including~~auto ~~the~~physical ~~controls~~damage, ~~over~~first ~~the~~party ~~development~~injury ofcoverages ~~the~~including ~~actuarial~~personal ~~valuation~~injury ~~techniques~~protection ~~and~~under ~~the~~state ~~assumptions~~law ~~related~~and togeneral ~~loss~~business ~~development~~liabilities ~~factors~~up ~~for~~to ~~the~~certain ~~insurance~~limits. ~~reserves~~As ~~and~~of ~~the~~December ~~frequency~~31, ~~and~~2025, ~~severity~~insurance ~~for~~reserves ~~the~~and insurance-related accruals totaled $2,180.4 ~~These~~million ~~procedures~~and ~~also~~$892.8 ~~included~~million, ~~among~~respectively, ~~others~~of ~~(i)~~which ~~testing~~a ~~the~~majority ~~completeness~~relates ~~and~~to ~~accuracy~~certain ofinsurance ~~historical~~reserves ~~data~~and ~~provided~~insurance-related byaccruals. ~~management~~The ~~and~~recorded ~~(ii)~~liabilities reflect the ~~involvement~~estimated ofcost ~~professionals~~for ~~with~~claims ~~specialized~~incurred ~~skill~~but not paid and ~~knowledge~~claims tothat ~~assist~~have inbeen ~~evaluating~~incurred ~~the~~but ~~reasonableness~~not ofyet ~~management’s~~reported ~~estimates~~and byany ~~(a)~~estimable ~~developing~~administrative ~~independent~~run-out ~~estimates~~expenses related to the processing of ~~certain~~these ~~insurance~~outstanding ~~reserves~~claim ~~and~~payments. ~~insurance-related~~These ~~accruals~~liabilities ~~and~~are ~~comparing~~determined ~~these~~on ~~independent~~a ~~estimates~~quarterly tobasis ~~management’s~~using ~~actuarially~~assumptions ~~determined~~based ~~reserves;~~on ~~(b)~~actuarial ~~evaluating~~judgment ~~the~~through ~~appropriateness~~an analysis of ~~management’s~~historical ~~actuarial~~trends ~~techniques;~~and ~~(c)~~changes ~~evaluating~~in ~~the~~claims ~~reasonableness~~experience. ofManagement ~~management’s~~makes ~~significant~~certain assumptions bybased ~~independently~~on ~~developing~~currently available information and industry statistics, with the loss development factors ~~for~~as the most significant assumption related to the insurance reserves and the frequency and severity ~~for~~assumptions as the ~~insurance-related~~most ~~accruals~~significant ~~based~~assumptions onrelated ~~loss~~to ~~reporting~~the ~~and~~insurance-related ~~payment~~accruals, ~~experience~~ and ~~historical~~utilizes ~~trends;~~actuarial models and ~~(d)~~techniques ~~evaluating~~to estimate the ~~consistency of management’s actuarial techniques period-over-period~~reserves.

The principal considerations for our determination that performing procedures relating to the valuation of certain insurance reserves and insurance-related accruals is a critical audit matter are (i) the significant judgment by management when developing the estimate of certain insurance reserves and insurance-related accruals; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to loss development factors for the certain insurance reserves and the frequency and severity for the certain insurance-related accruals; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of insurance reserves and insurance-related accruals. These procedures also included, among others (i) testing the completeness and accuracy of underlying data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management’s estimates by (a) developing independent estimates of certain insurance reserves and insurance-related accruals and comparing these independent estimates to management’s actuarially determined reserves; (b) evaluating the appropriateness of management’s actuarial models and techniques and the reasonableness of management’s significant assumptions related to loss development factors for the certain insurance reserves and frequency and severity for the certain insurance-related accruals by considering historical loss experience and claims experience; and (c) evaluating the consistency of management’s actuarial models and techniques period-over-period.

/s/ PricewaterhouseCoopers LLP

San Francisco, CaliforniaFebruary 1410, ~~2025~~2026

We have served as the Company’s auditor since 2015.

7267

Lyft, Inc.

Consolidated Balance Sheets

(in thousands, except for per share data)

	December 31,
	2024		2023
	2025		2024
Assets
Current assets
Cash and cash equivalents	$	~~759~~1,~~319~~132,009	$	~~558~~759,~~636~~319
Short-term investments	1705,~~225,124~~172		1,~~126~~225,~~548~~124
Prepaid expenses and other current assets	~~966~~1,~~090~~082,334		~~892~~966,~~235~~090
Total current assets	2,~~950~~919,~~533~~515		2,~~577~~950,~~419~~533
Restricted cash and cash equivalents	~~186~~705,~~721~~361		~~211~~186,~~786~~721
Restricted investments	1,~~355~~230,~~451~~758		~~837~~1,~~291~~355,451
Other investments	4247,~~516~~066		3942,~~870~~516
Property and equipment, net	~~444~~418,~~864~~530		~~465~~444,~~844~~864
Operating lease right of use assets	148,397		98,202
Operating lease right-of-use assets	165,579		148,397
Intangible assets, net	42178,~~776~~944		5942,~~515~~776
Goodwill	~~251~~439,~~376~~754		~~257~~251,~~791~~376
Other assets	12,435		16,749
Deferred tax assets	2,906,135		435
Total assets	$	5,435,069	$	4,564,467
Other assets	18,411		12,000
Total assets	$	9,030,053	$	5,435,069
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	97120,~~704~~464	$	7297,~~282~~704
Insurance reserves	12,~~701~~180,~~393~~426		1,~~337~~701,~~868~~393
Accrued and other current liabilities	12,~~666~~196,~~278~~863		1,~~508~~666,~~855~~278
Operating lease liabilities — current	25,192		42,556
Operating lease liabilities, current	28,068		25,192
Convertible senior notes, current	~~390,175~~—		—390,175
Total current liabilities	34,~~880~~525,~~742~~821		23,~~961~~880,~~561~~742
Operating lease liabilities	~~152~~159,~~074~~904		~~134~~152,~~102~~074
Long-term debt, net of current portion	~~565~~1,~~968~~002,404		~~839~~565,~~362~~968
Other liabilities	6968,~~269~~401		8769,~~924~~269
Total liabilities	45,~~668~~756,~~053~~530		4,~~022~~668,~~949~~053
Commitments and contingencies (Note 10)
Stockholders’ equity
Preferred stock, $0.00001 par value; 1,000,000 shares authorized as of December 31, 2024 and 2023; no shares issued and outstanding as of December 31, 2024 and 2023	—		—
Preferred stock, $0.00001 par value; 1,000,000 shares authorized as of December 31, 2025 and December 31, 2024; no shares issued and outstanding as of December 31, 2025 and 2024	—		—
Common stock, $0.00001 par value; 18,000,000 Class A shares authorized as of December 31, 2024 and 2023; 409,474 and 391,239 Class A shares issued and outstanding as of December 31, 2024 and 2023, respectively; 100,000 Class B shares authorized as of December 31, 2024 and 2023; 8,531 and 8,567 Class B shares issued and outstanding, as of December 31, 2024 and 2023, respectively	4		4
Common stock, $0.00001 par value; 18,000,000 Class A shares authorized as of December 31, 2025 and 2024; 400,856 and 409,474 Class A shares issued and outstanding as of December 31, 2025 and 2024, respectively; 87,220 and 100,000 Class B shares authorized as of December 31, 2025 and 2024; no Class B shares issued and outstanding as of December 31, 2025 and 8,531 Class B shares issued and outstanding as of December 31, 2024	4		4
Additional paid-in capital	1110,~~035~~687,~~246~~017		1011,~~827~~035,~~378~~246
Accumulated other comprehensive income (loss)	~~(10,103)~~625		(410,~~949~~103)
Accumulated deficit	(107,~~258~~414,~~131~~123)		(10,~~280~~258,~~915~~131)
Total stockholders’ equity	~~767~~3,~~016~~273,523		~~541~~767,~~518~~016
Total liabilities and stockholders’ equity	$	59,~~435~~030,~~069~~053	$	45,~~564~~435,~~467~~069

The accompanying notes are an integral part of these consolidated financial statements.

7368

Lyft, Inc.

Consolidated Statements of Operations

(in thousands, except for per share data)

Year Ended December 31,

2024

2023

2022

2025

2024

2023

Revenue

56,~~786~~316,~~016~~261

45,~~403~~786,~~589~~016

4,~~095~~403,~~135~~589

Costs and expenses

Cost of revenue

3,~~337~~697,~~714~~653

23,~~543~~337,~~954~~714

2,~~435~~543,~~736~~954

Operations and support

~~443~~478,~~821~~332

~~427~~443,~~239~~821

~~443~~427,~~846~~239

Research and development

~~397~~451,~~073~~419

~~555~~397,~~916~~073

~~856~~555,~~777~~916

Sales and marketing

~~788~~875,~~972~~101

~~481~~788,~~004~~972

~~531~~481,~~512~~004

General and administrative

~~937~~1,~~348~~002,130

~~871~~937,~~080~~348

1871,~~286,180~~080

Total costs and expenses

56,~~904~~504,~~928~~635

45,~~879~~904,~~193~~928

54,~~554~~879,~~051~~193

Loss from operations

(~~118~~188,~~912~~374)

(~~475~~118,~~604~~912)

(1475,~~458,916~~604)

Interest expense

(2820,~~921~~755)

(2628,~~223~~921)

(1926,~~735~~223)

Other income (expense), net

173,183

170,123

(99,988)

Other income, net

155,882

173,183

170,123

Income (loss) before income taxes

25,350

(331,704)

(1,578,639)

(Loss) income before income taxes

(53,247)

25,350

(331,704)

Provision for (benefit from) income taxes

2,566

8,616

5,872

(Benefit from) provision for income taxes

(2,897,255)

2,566

8,616

Net income (loss)

222,~~784~~844,008

~~(340~~22,~~320)~~784

(1340,~~584,511~~320)

Net income (loss) per share attributable to common stockholders

Basic

06.0692

(0.~~88)~~06

(40.4788)

Diluted

06.0681

(0.~~88)~~06

(40.4788)

Weighted-average number of shares outstanding used to compute net income (loss) per share attributable to common stockholders

Basic

~~409~~410,~~181~~840

~~385~~409,~~335~~181

~~354~~385,~~731~~335

Diluted

~~413~~417,~~651~~659

~~385~~413,~~335~~651

~~354~~385,~~731~~335

Stock-based compensation included in costs and expenses:

Cost of revenue

2423,~~895~~600

3024,~~170~~895

4430,~~132~~170

Operations and support

810,~~397~~244

158,~~468~~397

2515,~~442~~468

Research and development

~~117~~135,~~833~~700

~~214~~117,~~160~~833

~~391~~214,~~983~~160

Sales and marketing

17,~~286~~240

2917,~~682~~286

4929,~~867~~682

General and administrative

~~162~~135,~~510~~484

~~195~~162,~~053~~510

~~239~~195,~~343~~053

The accompanying notes are an integral part of these consolidated financial statements.

7469

Lyft, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

Year Ended December 31,

2024

2023

2022

2025

2024

2023

Net income (loss)

222,~~784~~844,008

~~(340~~22,~~320)~~784

(1340,~~584,511~~320)

Other comprehensive income (loss)

Foreign currency translation adjustment, net of taxes

(48,~~925)~~960

(24,~~851~~925)

(12,~~154~~851)

Unrealized gain (loss) on marketable securities, net of taxes

~~(229)~~1,768

~~3,656~~(229)

(23,~~089)~~656

Other comprehensive income (loss)

(510,~~154)~~728

~~805~~(5,154)

~~(3,243)~~805

Comprehensive income (loss)

172,~~630~~854,736

~~(339~~17,~~515)~~630

(1339,~~587,754~~515)

The accompanying notes are an integral part of these consolidated financial statements.

7570

Lyft, Inc.

Consolidated Statements of Stockholders’ Equity

(in thousands)

	Class A and Class BCommon Stock			AdditionalPaid-in Capital		Accumulated Deficit		AccumulatedOtherComprehensive Income (Loss)		TotalStockholders’ Equity
	Shares	Amount
Balance as of December 31, 2021	344,938	$	3	$	9,706,293	$	(8,362,572)	$	(2,511)	$	1,341,213
Adjustments related to the adoption of ASU 2020-06	—	—		(139,958)		6,488				(133,470)
Issuance of common stock upon exercise of stock options	112	—		454		—		—		454
Issuance of common stock upon settlement of restricted stock units	23,928	1		—		—		—		1
Shares withheld related to net share settlement	(358)	—		(6,733)		—		—		(6,733)
Issuance of common stock under employee stock purchase plan	1,535	—		21,198		—		—		21,198
Stock-based compensation	—	—		753,619		—		—		753,619
Other comprehensive loss	—	—		—		—		(3,243)		(3,243)
Net loss	—	—		—		(1,584,511)		—		(1,584,511)
Other	—	—		140		—		—		140
Balance as of December 31, 2022	370,155	$	4	$	10,335,013	$	(9,940,595)	$	(5,754)	$	388,668
Issuance of common stock upon exercise of stock options	201	—		1,204		—		—		1,204
Issuance of common stock upon settlement of restricted stock units	28,397	—		—		—		—		—
Shares withheld related to net share settlement	(296)	—		(3,021)		—		—		(3,021)
Issuance of common stock under employee stock purchase plan	1,349	—		9,788		—		—		9,788
Stock-based compensation	—	—		484,533		—		—		484,533
Other comprehensive income	—	—		—		—		805		805
Net loss	—	—		—		(340,320)		—		(340,320)
Other	—	—		(139)		—		—		(139)
Balance as of December 31, 2023	399,806	$	4	$	10,827,378	$	(10,280,915)	$	(4,949)	$	541,518
Issuance of common stock upon exercise of stock options	780	—		3,613		—		—		3,613
Issuance of common stock upon settlement of restricted stock units	22,011	—		—		—		—		—
Shares withheld related to net share settlement	(2,529)	—		(40,328)		—		—		(40,328)
Issuance of common stock under employee stock purchase plan	1,080	—		11,438		—		—		11,438
Repurchase of common stock	(3,143)	—		(50,000)		—		—		(50,000)
Repurchase and retirement of common stock	(3,143)	—		(50,000)		—		—		(50,000)
Purchase of capped call	—	—		(47,886)		—		—		(47,886)
Stock-based compensation	—	—		330,921		—		—		330,921
Other comprehensive loss	—	—		—		—		(5,154)		(5,154)
Net income	—	—		—		22,784		—		22,784
Other	—	—		110		—		—		110
Balance as of December 31, 2024	418,005	$	4	$	11,035,246	$	(10,258,131)	$	(10,103)	$	767,016
Issuance of common stock upon settlement of restricted stock units	21,065	—		—		—		—		—
Shares withheld related to net share settlement	(9,010)	—		(151,311)		—		—		(151,311)
Issuance of common stock under employee stock purchase plan	1,077	—		14,861		—		—		14,861
Repurchase and retirement of common stock	(30,281)	—		(503,236)		—		—		(503,236)
Purchase of capped call, net of tax	—	—		(30,811)		—		—		(30,811)
Stock-based compensation	—	—		322,268		—		—		322,268
Other comprehensive income	—	—		—		—		10,728		10,728
Net income	—	—		—		2,844,008		—		2,844,008
Balance as of December 31, 2025	400,856	$	4	$	10,687,017	$	(7,414,123)	$	625	$	3,273,523

The accompanying notes are an integral part of these consolidated financial statements.

7671

Lyft, Inc.

Consolidated Statements of Cash Flows

(in thousands)

	Year Ended December 31,
	2024		2023		2022
	2025		2024		2023
Cash flows from operating activities
Net income (loss)	$	222,~~784~~844,008	$	~~(340~~22,~~320)~~784	$	(1340,~~584,511~~320)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	~~148~~135,~~892~~227		~~116~~148,~~513~~892		~~154~~116,~~798~~513
Stock-based compensation	~~330~~322,~~921~~268		~~484~~330,~~533~~921		~~750~~484,~~767~~533
Amortization of premium on marketable securities	284		117		2,955
Deferred income tax	(2,895,119)		(1,876)		(2,385)
Accretion of discount on marketable securities	(89,425)		(68,125)		(23,245)
Amortization of premium on marketable securities	307		284		117
Amortization of debt discount and issuance costs	3,737		2,877		2,823
Accretion of discount on marketable securities	(69,236)		(89,425)		(68,125)
(Gain) loss on sale and disposal of assets, net	7,831		(11,278)		(60,655)
Amortization of debt discount and issuance costs	3,655		3,737		2,877
Gain on lease termination	(29,610)		—		—
Loss (gain) on sale and disposal of assets, net	7,569		7,831		(11,278)
Impairment of non-marketable equity security	—		—		135,714
Gain on lease termination	—		(29,610)		—
Other	2(9,~~469~~232)		(42,~~261)~~469		23(4,~~592~~261)
Changes in operating assets and liabilities, net effects of acquisition
Prepaid expenses and other assets	(7651,~~359~~032)		(8676,~~922~~440)		(~~275~~86,~~945~~600)
Operating lease right-of-use assets	26,~~276~~978		2026,~~046~~276		9620,~~317~~046
Accounts payable	21,~~712~~684		~~(41~~21,~~079)~~712		(2741,~~215~~079)
Insurance reserves	~~363~~479,~~524~~033		~~(79~~363,~~482)~~524		~~348~~(79,~~721~~482)
Accrued and other liabilities	~~164~~385,~~057~~564		~~(75~~166,~~571)~~014		~~262~~(73,~~358~~508)
Lease liabilities	(4733,~~356~~236)		(1547,~~292~~356)		(4315,~~759~~292)
Net cash provided by (used in) operating activities	~~849~~1,~~737~~168,438		~~(98~~849,~~244)~~737		(~~237~~98,~~285~~244)
Cash flows from investing activities
Purchases of marketable securities	(43,~~177~~344,~~429~~891)		(34,~~288~~177,~~659~~429)		(43,~~049~~288,~~515~~659)
Purchases of term deposits	~~(4,388)~~—		(34,~~539~~388)		(133,~~586~~539)
Proceeds from sales of marketable securities	~~232~~728,~~910~~435		~~452~~232,~~465~~910		~~676~~452,~~854~~465
Proceeds from maturities of marketable securities	3,~~415~~329,~~318~~579		3,~~481~~415,~~042~~318		3,~~308~~481,~~664~~042
Proceeds from maturities of term deposits	52,~~733~~194		85,~~539~~733		~~395~~8,~~092~~539
Purchases of property and equipment and scooter fleet	(8352,~~470~~822)		(~~149~~83,~~819~~470)		(~~114~~149,~~970~~819)
Cash paid for acquisitions, net of cash acquired	—		1,630		(146,334)
Sales of property and equipment	52,893		92,045		92,594
Sales of property and equipment	92,045		92,594		129,840
Cash paid for acquisitions, net of cash acquired	(307,320)		—		1,630
Other	1,303		5,500		—
Other investing activities	(1,330)		1,303		5,500
Net cash (used in) provided by investing activities	(517,978)		599,753		186,045
Net cash provided by (used in) investing activities	406,738		(517,978)		599,753
Cash flows from financing activities
Repayment of loans	(8462,~~070~~448)		(7284,~~484~~070)		(6772,~~639~~484)
Proceeds from issuance of convertible senior notes	460,000		—		—
Payment for settlement of convertible senior notes due 2025	(390,719)		(350,000)		—
Payment of debt issuance costs	(11,888)		—		—
Proceeds from issuance of convertible senior notes due 2029	—		460,000		—
Purchase of capped call	(47,886)		—		—
Proceeds from issuance of convertible senior notes due 2030	500,000		—		—
Repurchase of Class A common stock	(50,000)		—		—
Payment of debt issuance costs	(12,229)		(11,888)		—
Payment for settlement of convertible senior notes due 2025	(350,000)		—		—
Purchase of capped calls	(41,950)		(47,886)		—
Proceeds from exercise of stock options and other common stock issuances	15,051		10,993		21,655
Repurchase of Class A common stock	(499,992)		(50,000)		—
Taxes paid related to net share settlement of equity awards	(40,328)		(3,021)		(6,733)
Proceeds from exercise of stock options and other common stock issuances	14,861		15,051		10,993
Principal payments on finance lease obligations	(46,748)		(43,466)		(34,783)
Taxes paid related to net share settlement of equity awards	(151,311)		(40,328)		(3,021)
Contingent consideration paid	—		(14,100)		—
Principal payments on finance lease obligations	(41,250)		(46,748)		(43,466)
Net cash used in financing activities	(155,869)		(122,078)		(87,500)
Contingent consideration paid	—		—		(14,100)
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents	(1,636)		533		(631)
Other financing activities	(490)		—		—
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	174,254		379,964		(139,371)
Net cash used in financing activities	(685,528)		(155,869)		(122,078)
Effect of foreign exchange on cash, cash equivalents and restricted cash and cash equivalents	1,682		(1,636)		533
Net increase in cash, cash equivalents and restricted cash and cash equivalents	891,330		174,254		379,964
Cash, cash equivalents and restricted cash and cash equivalents
Beginning of period	~~771~~946,~~786~~040		~~391~~771,~~822~~786		~~531~~391,~~193~~822
End of period	$	~~946~~1,~~040~~837,370	$	~~771~~946,~~786~~040	$	~~391~~771,~~822~~786

The accompanying notes are an integral part of these consolidated financial statements.

7772

Lyft, Inc.

Consolidated Statements of Cash Flows

(in thousands)

	Year Ended December 31,
	2024		2023		2022
	2025		2024		2023
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents to the consolidated balance sheets
Cash and cash equivalents	$	~~759~~1,~~319~~132,009	$	~~558~~759,~~636~~319	$	~~281~~558,~~090~~636
Restricted cash and cash equivalents	~~186~~705,~~721~~361		~~211~~186,~~786~~721		~~109~~211,~~368~~786
Restricted cash, included in prepaid expenses and other current assets	—		~~1,364~~—		1,364
Total cash, cash equivalents and restricted cash and cash equivalents	$	~~946~~1,~~040~~837,370	$	~~771~~946,~~786~~040	$	~~391~~771,~~822~~786
Supplemental disclosures of cash flow information
Cash paid for income taxes	$	117,~~207~~261	$	911,~~425~~207	$	109,~~723~~425
Cash paid for interest	2819,~~304~~821		2028,~~176~~304		1620,~~752~~176
Non-cash investing and financing activities
Financed vehicles acquired	$	8378,~~600~~134	$	~~127~~83,~~095~~600	$	48127,~~104~~095
Purchases of property and equipment and scooter fleet not yet settled	103,~~599~~623		410,~~505~~599		314,~~534~~505
Contingent consideration	—		—		15,000
Right-of-use assets acquired under finance leases	30,338		45,207		79,102
Right-of-use assets acquired under finance leases	45,207		79,102		11,428
Right-of-use assets acquired under operating leases	20,846		7,710		3,795
Right-of-use assets acquired under operating leases	7,710		3,795		498
Remeasurement of finance and operating lease right-of-use assets	(6,085)		54,689		(10,582)
Remeasurement of finance and operating lease right of use assets	54,689		(10,582)		(321)
Repurchase of Class A common stock, including excise tax, accrued and not yet paid	2,754		—		—

The accompanying notes are an integral part of these consolidated financial statements.

7873

Lyft, Inc.

Notes to Consolidated Financial Statements

1. Description of Business and Basis of Presentation

Organization and Description of Business

Lyft, Inc. (the “Company” or “Lyft”) is incorporated in Delaware with its headquarters in San Francisco, California. The Company operates multimodal transportation networks ~~in the United States and Canada~~ that offer access to a variety of transportation options through the Company’s global platform and mobile-based applications. This network enables multiple modes of transportation including, primarily, the facilitation of peer-to-peer ridesharing by connecting drivers who have a vehicle with riders who need a ride. The Company’s robust technology platform (the “Lyft Platform”) primarily provides a marketplace where drivers can be matched with riders via the Lyft mobile application (the “Lyft App”) where the Company operates as a transportation network company (“TNC”).

Transportation options through the Company’s platform and mobile-based applications are ~~substantially~~primarily comprised of its ridesharing marketplace, ~~that~~inclusive ~~connects~~of ~~drivers~~taxis, ~~and~~private ~~riders~~hire invehicles, ~~cities~~executive ~~across~~chauffeur ~~the~~services ~~United~~and ~~States~~car sharing, that connects drivers and inriders. ~~certain~~Transportation ~~cities~~options inalso ~~Canada,~~include Lyft’s network of bikes and scooters ~~(“Light Vehicles”),~~ and the Express Drive program, where drivers can enter into short-term rental agreements with the Company’s wholly-owned and independently managed subsidiary, Flexdrive Services, LLC (“Flexdrive”) or a third party for vehicles that may be used to provide ridesharing services on the Lyft Platform. In addition, the Company makes the ridesharing marketplace available to organizations through Lyft Business offerings, such as the Concierge and Lyft Pass programs, and generates revenue from licensing and data access agreements associated with the data from the Company'’s platform, subscription fees, revenue from bikes and bike station hardware and software sales and revenue from arrangements to provide advertising services.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries and entities consolidated under the variable interest entity model. All intercompany balances and transactions have been eliminated.

Prior period amounts related to deferred tax assets and deferred tax liabilities have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported total assets, total liabilities, results of operations, comprehensive income or net cash flows from operating, financing or investing activities.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on various factors and information which may include, but are not limited to, ~~history~~historical ~~and prior~~ experience, ~~expected~~where ~~future results~~applicable, ~~new related events~~ and ~~economic~~on ~~conditions,~~other ~~which~~assumptions ~~form~~that ~~the~~management ~~basis~~believes ~~for~~are ~~making~~reasonable ~~judgments~~under ~~about~~ the ~~carrying value of assets and liabilities that are not readily apparent from other sources~~circumstances. Actual results could differ materially from those estimates.

Significant items subject to estimates and assumptions include those related to losses resulting from insurance claims inclusive of insurance- related accruals, fair value of financial assets and liabilities, acquired identifiable intangible assets and goodwill and ~~identifiable~~related ~~intangible~~impairment assessments, useful lives of amortizable long-lived assets, leases, indirect tax obligations, legal contingencies, ~~valuation~~deferred ~~allowance~~tax ~~for~~assets ~~deferred~~and ~~income taxes~~liabilities, and the valuation of stock-based compensation.

2. Summary of Significant Accounting Policies

Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment. The Company has concluded that consolidated net income (loss) is the measure of segment profitability. The CODM assesses performance for the Company, monitors budget versus actual results, and determines how to allocate resources based on consolidated net income (loss) as reported in the consolidated statements of operations. There are no other expense categories regularly provided to the CODM that are not already included in the primary consolidated financial statements herein.

~~During~~No ~~the~~individual ~~years~~country ~~ended~~outside ~~December 31,~~of ~~2024,~~the ~~2023~~U.S. ~~and~~had ~~2022,~~long-lived ~~the~~assets ~~Company~~that ~~did~~were ~~not generate~~ material ~~international~~to ~~revenues~~the ~~and~~consolidated totals as of December 31, ~~2024,~~2025 ~~2023~~ and ~~2022, the Company did not have material assets located outside of the United States~~2024.

Cash and Cash Equivalents

Cash equivalents consist of institutional money market funds and certificates of deposits denominated in U.S. dollars as well as commercial paper and corporate bonds. Cash equivalents are highly liquid, short-term investments having an original maturity of 90 days or less that are readily convertible to known amounts of cash. Also included in cash and cash equivalents are cash in transit from payment processors for credit and debit card transactions.

days or less that are readily convertible to known amounts of cash. Also included in cash and cash equivalents are cash in transit from payment processors for credit and debit card transactions.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents consist primarily of amounts held in separate trust accounts and restricted bank accounts as collateral for insurance purposes and amounts pledged to secure certain letters of credit.

Investments

Debt Securities

The Company’s accounting for its investments in debt securities is based on the legal form of the security, the Company’s intended holding period for the security, and the nature of the transaction. Investments in debt securities include commercial paper, certificates of deposit, corporate bonds and U.S. government and agency securities. Investments in debt securities are classified as available-for-sale and are recorded at fair value.

The Company considers an available-for-sale debt security to be impaired if the fair value of the investment is less than its amortized cost basis. The entire difference between the amortized cost basis and the fair value of the Company’s available-for-sale debt securities is recognized on the consolidated statements of operations as an impairment if, (i) the fair value of the security is below its amortized cost and (ii) the Company intends to sell or is more likely than not required to sell the security before recovery of its amortized cost basis. If neither criterion is met, the Company evaluates whether the decline in fair value is due to credit losses or other factors. In making this assessment, the Company considers the extent to which the security’s fair value is less than amortized cost, changes to the rating of the security by third-party rating agencies, and adverse conditions specific to the security, among other factors. If the Company'’s assessment indicates that a credit loss exists, the credit loss is measured based on the Company'’s best estimate of the cash flows expected to be collected. When developing its estimate of cash flows expected to be collected, the Company considers all available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable forecasts.

Credit loss impairments are recognized through an allowance for credit losses adjustment to the amortized cost basis of the debt securities on the balance sheet with an offsetting credit loss expense on the consolidated statements of operations. Impairments related to factors other than credit losses are recognized as an adjustment to the amortized cost basis of the security and an offsetting amount in accumulated other comprehensive income (loss), net of tax. The Company determines realized gains or losses on the sale of debt securities on a specific identification method.

~~The~~Restricted ~~Company's investments in debt securities include:~~Investments

~~(i)Cash~~Restricted ~~and~~investments ~~cash~~are ~~equivalents.~~comprised ~~Cash~~of ~~equivalents~~debt ~~include~~security investments in commercial paper, certificates of ~~deposits~~deposit, ~~commercial~~corporate ~~paper~~bonds and ~~corporate~~U.S. ~~bonds~~government ~~that~~and ~~have~~agency ansecurities ~~original~~which ~~maturity~~are ofheld 90in ~~days~~trust oraccounts ~~less~~at ~~and~~third-party ~~are~~financial ~~readily~~institutions ~~convertible~~pursuant to ~~known~~certain ~~amounts~~contracts ofwith ~~cash.~~insurance providers.

(ii)Short-term investments. Short-term investments are comprised of commercial paper, certificates of deposit, and corporate bonds, which mature in twelve months or less. As a result, the Company classifies these investments as current assets in the accompanying consolidated balance sheets.

(iii)Restricted investments. Restricted investments are comprised of debt security investments in commercial paper, certificates of deposit, corporate bonds and U.S. government and agency securities which are held in trust accounts at third-party financial institutions pursuant to certain contracts with insurance providers.

Non-marketable Equity Securities

The Company has elected to measure its investments in non-marketable equity securities at cost, with remeasurements to fair value only upon the occurrence of observable transactions for identical or similar investments of the same issuer or impairment. The Company qualitatively assesses whether indicators of impairment exist. Factors considered in this assessment include the investees’ financial and liquidity position, access to capital resources, and macroeconomic conditions, among others. If an impairment exists, the Company estimates the fair value of the investment by using the best information available, which may include cash flow projections or other available market data, and recognizes a loss for the amount by which the carrying value exceeds the fair value of the investment on the consolidated statements of operations.

Enterprise and Trade Receivables

The Company collects any fees owed for completed transactions on the Lyft Platform primarily from the rider’s authorized payment method. Uncollected fees are included in prepaid expenses and other current assets on the consolidated balance sheets and represent receivables from (i) participants in the Company’s enterprise programs (“Enterprise Users”), where the transactions have been completed and the amounts owed from the Enterprise Users have either been invoiced or are unbilled as of the reporting date; and (ii) riders where the authorized payment method is a credit card but the fare amounts have not yet settled with third-party payment processors. Under the terms of service (“ToS”), drivers agree that the Company retains the applicable fee as consideration for their use of the Lyft Platform and related activities from the fare and related charges it collects from riders on behalf of drivers. Accordingly, the Company has no trade receivables from drivers. The portion of the fare receivable to be remitted to drivers is included in accrued and other current liabilities on the consolidated balance sheets.

8075

~~processors.~~The ~~Under~~Company ~~the~~records ~~ToS,~~an ~~drivers~~allowance ~~agree~~for credit losses for fees owed for completed transactions that ~~the~~may ~~Company~~never ~~retains~~settle ~~the~~or ~~applicable~~be ~~fee~~collected asin ~~consideration~~accordance with Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments—Credit Losses”. The allowance for ~~their~~credit ~~use~~losses ofreflects the ~~Lyft~~Company’s ~~Platform~~current ~~and~~estimate ~~related~~of ~~activities~~expected ~~from~~credit losses inherent in the ~~fare~~enterprise and ~~related~~trade ~~charges~~receivables itbalance. ~~collects~~In ~~from~~determining ~~riders~~the onexpected ~~behalf~~credit oflosses, ~~drivers.~~the ~~Accordingly~~Company considers its historical loss experience, the ~~Company~~aging ~~has~~of noits ~~trade~~receivable ~~receivables~~balance, ~~from~~current ~~drivers.~~economic ~~The~~and ~~portion~~business ofconditions, ~~the~~and ~~fare~~anticipated ~~receivable~~future toeconomic beevents ~~remitted~~that tomay ~~drivers~~impact iscollectability. ~~included~~The inCompany ~~accrued~~reviews its allowance for credit losses periodically and ~~other~~as ~~current~~needed, ~~liabilities~~and onamounts ~~the~~are ~~consolidated~~written ~~balance~~off ~~sheets~~when determined to be uncollectible.

The Company records an allowance for credit losses for fees owed for completed transactions that may never settle or be collected in accordance with Accounting Standards Update No. 2016-13 “Financial Instruments—Credit Losses”. The allowance for credit losses reflects the Company’s current estimate of expected credit losses inherent in the enterprise and trade receivables balance. In determining the expected credit losses, the Company considers its historical loss experience, the aging of its receivable balance, current economic and business conditions, and anticipated future economic events that may impact collectability. The Company reviews its allowance for credit losses periodically and as needed, and amounts are written off when determined to be uncollectible.

Concentrations of Credit Risk

The Company’s cash, cash equivalents and short-term investments are potentially subject to concentration of credit risk. Although the Company deposits its cash with multiple financial institutions, the deposits, at times, may exceed federally insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Management believes that the institutions are financially stable and, accordingly, minimal credit risk exists. The Company limits purchases of debt securities to investment-grade securities.

Fair Value Measurements

The Company measures assets and liabilities at fair value based on an expected exit price, which represents the amount that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis, whereby inputs used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

Level 1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3Unobservable inputs reflecting our own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The carrying values of the Company’s debt securities, accounts payable and accrued and other liabilities approximate their respective fair values due to the short period of time to payment.

Software Development Costs

The Company incurs costs related to developing the Lyft Platform and related support systems. The Company capitalizes development costs related to the Lyft Platform and related support systems once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. ~~The~~Capitalized ~~Company has capitalized~~ software development costs ofwere ~~$4.2~~not ~~million,~~material ~~$8.1 million, and $12.1 million~~ as of ~~the years ended~~ December 31, ~~2024,~~2025 ~~2023,~~ and ~~2022, respectively~~2024.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful life of the related asset, which is generally between one and eight years. Depreciation for property and equipment commences once they are ready for ~~our~~the Company’s intended use. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected on the consolidated statement of operations in the period realized. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease, or the useful life of the assets. Construction in progress is related to property and equipment that has not yet been placed in service for its intended use.

Leases

In accordance with Accounting Standards Codification Topic 842 (“ASC 842”), the Company determines if an arrangement is or contains a lease at contract inception by assessing whether the arrangement contains an identified asset and whether the lessee has the right to control such asset. The Company determines the classification and measurement of its leases upon lease commencement. The Company enters into certain agreements as a lessor and either leases or subleases the underlying asset in the agreement to customers. The Company also enters into certain agreements as a lessee.

agreements as a lessee. If any of the following criteria are met, the Company classifies the lease as a financing lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor):

•The lease transfers ownership of the underlying asset to the lessee by the end of the lease term;

•The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise;

•The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset;

•The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or

•The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Leases that do not meet any of the above criteria are accounted for as operating leases.

Lessor

The Company's lease arrangements include vehicle rentals to drivers or renters under the Flexdrive program and Light Vehicle rentals to single-use riders. Due to the short-term nature of these arrangements, the Company classifies these leases as operating leases. The Company does not separate lease and non-lease components, such as insurance or roadside assistance provided to the lessee, in its lessor lease arrangements. Lease payments are primarily fixed and are recognized as revenue in the period over which the lease arrangement occurs. Taxes or other fees assessed by governmental authorities that are both imposed on and concurrent with each lease revenue-producing transaction and collected by the Company from the lessee are excluded from the consideration in its lease arrangements. The Company mitigates residual value risk of its leased assets by performing regular maintenance and repairs, as necessary, and through periodic reviews of asset depreciation rates based on the Company's ongoing assessment of present and estimated future market conditions.76

The Company’s lease arrangements include vehicle rentals to drivers or renters under the Flexdrive program and bikes and scooters rentals to single-use riders. Due to the short-term nature of these arrangements, the Company classifies these leases as operating leases. The Company does not separate lease and non-lease components, such as insurance or roadside assistance provided to the lessee, in its lessor lease arrangements. Lease payments are primarily fixed and are recognized as revenue in the period over which the lease arrangement occurs. The Company mitigates residual value risk of its leased assets by performing regular maintenance and repairs, as necessary, and through periodic reviews of asset depreciation rates based on the Company’s ongoing assessment of present and estimated future market conditions.

Lessee

The Company'’s leases include real estate property to support its operations and Flexdrive vehicles that may be used by drivers to provide ridesharing services on the Lyft Platform. For leases with a term greater than 12 months, the Company records the related right-of-use asset and lease liability at the present value of lease payments over the term. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. The Company does not separate lease and non-lease components of contracts for real estate property leases, but has elected to do so for vehicle leases when non-lease components exist in these arrangements. However, these vehicle leases generally do not contain any non-lease components and, as such, all payments due under these arrangements are allocated to the respective lease component. For certain leases, the Company also applies a portfolio approach to account for right-of-use assets and lease liabilities that are similar in nature and have nearly identical contract provisions.

The Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment.

Lease payments may be fixed or variable; however, only fixed payments are included in the Company’s lease liability calculation. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, — current and operating lease liabilities on the consolidated balance sheets. Lease costs for the Company'’s operating leases are recognized on a straight-line basis primarily within operating expenses over the lease term. Finance leases are included in property and equipment, net, accrued and other current liabilities, and other liabilities on the consolidated balance sheets. Finance lease assets are amortized on a straight-line basis over the ~~shorter of the~~ estimated useful lives of the assets or the lease term in cost of revenue on the consolidated statements of operations. The interest component of finance leases is included in cost of revenue on the consolidated statements of operations and recognized using the effective interest method over the lease term. Variable lease payments are recognized primarily in operating expenses in the period in which the obligation for those payments is incurred.

Similar to other long-lived assets discussed below, the Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease. Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and ~~Intangible~~identifiable ~~Assets~~intangible assets acquired in a business combination.

Goodwill ~~represents~~is not subject to amortization, but is tested for impairment on an annual basis during the ~~excess~~fourth ofquarter or whenever events or changes in circumstances indicate the ~~purchase~~carrying ~~price~~value ~~over~~of the reporting unit may be in excess of its fair value. As part of the ~~net~~annual ~~tangible~~goodwill ~~and~~impairment ~~identifiable~~test, ~~intangible~~the ~~assets~~Company ~~acquired~~first inperforms a ~~business~~qualitative ~~combination.~~assessment ~~Intangible~~to ~~assets~~determine ~~resulting~~whether ~~from~~further ~~the~~impairment ~~acquisition~~testing is necessary. If, as a result of ~~entities~~its ~~are~~qualitative ~~accounted~~assessment, ~~for~~it ~~using~~is more-likely-than-not that the ~~purchase~~fair ~~method~~value of ~~accounting~~the ~~based on management~~Company’s ~~estimate~~reporting ofunit is less than its carrying amount, the ~~fair~~quantitative ~~value~~impairment oftest ~~assets~~will ~~received~~be required. ~~Intangible~~Alternatively, ~~assets~~the ~~are~~Company ~~amortized~~may onbypass athe ~~straight-line~~qualitative ~~basis~~assessment ~~over~~and ~~the~~perform ~~estimated~~a ~~useful~~quantitative ~~lives~~impairment ~~which~~test. ~~range~~There ~~from~~was ~~two~~no toimpairment ~~twelve~~of goodwill recorded for the years ended December 31, 2025, 2024 and 2023.

82Intangible Assets

~~Goodwill~~ isIntangible ~~not~~assets ~~subject~~are torecorded ~~amortization,~~at ~~but is tested for impairment on an annual basis during the fourth quarter or whenever events or changes in circumstances indicate the carrying value of the reporting unit may be in excess of its~~ fair value. Asas ~~part~~ of the ~~annual~~date ~~goodwill~~of ~~impairment~~acquisition ~~test,~~and ~~the~~amortized ~~Company~~on ~~first performs~~ a ~~qualitative assessment to determine whether further impairment testing is necessary. If, as a result of its qualitative assessment, it is more~~straight-~~likely-than-not~~line ~~that~~basis ~~the~~over ~~fair value of~~ the ~~Company’s~~estimated ~~reporting~~useful ~~unit~~lives iswhich ~~less~~range ~~than~~from ~~its~~two ~~carrying~~to ~~amount,~~twelve the quantitative impairment test will be required. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. There was no impairment of goodwill recorded for the years ~~ended December 31, 2024, 2023 and 2022~~.

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including property and equipment and intangible assets, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. ~~Such~~An ~~events and changes may include: significant changes in performance relative to expected operating results, changes in~~ asset ~~use,~~is ~~negative~~considered ~~industry~~impaired orif ~~economic~~its ~~trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the~~ carrying ~~amounts~~value toexceeds the future undiscounted cash flows ~~that~~ the ~~assets or the~~ asset ~~group~~is ~~are~~ expected to generate. IfWith the ~~carrying~~exception ~~value~~ of the ~~assets are not recoverable, the~~ impairment ~~recognized~~charge ~~is measured as the amount by which the carrying value of the asset exceeds its fair value. With the exception of impairment charges~~ related to real estate operating right-of-use assets discussed in Note 9 “Leases” and disposals of fixed assets and other current assets as a result of the restructuring events in prior years discussed in Note 15 “Restructuring”, there was no other material impairment of long-lived assets recorded for the years ended December 31, ~~2024~~2025, ~~2023~~2024 and ~~2022~~2023.

Insurance Reserves and Insurance-related Accruals

The Company utilizes both a wholly-owned captive insurance subsidiary and third-party insurance, which may include deductibles and self-insured retentions, to insure or reinsure costs including auto liability, uninsured and underinsured motorist, auto physical damage, first party injury coverages including personal injury protection under state law and general business liabilities up to certain limits. The recorded liabilities reflect the estimated cost for claims incurred but not paid and claims that have been incurred but not yet reported and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. Liabilities are determined on a quarterly basis byusing ~~internal~~assumptions ~~actuaries~~based on actuarial judgment through an analysis of historical trends, and changes in claims experience, including consideration of new information and application of loss development factors, and frequency and severity assumptions, among other inputs and assumptions for the insurance reserves and insurance-related accruals. ~~On an annual basis or more frequently as determined by management, an independent third-party actuary will evaluate the liabilities for appropriateness with claims reserve valuations.~~

Insurance claims may take years to completely settle. Accordingly, ~~and~~ the Company ~~has available limited historical loss experience because of the limited operational history. The Company~~ makes certain assumptions based on currently available information and industry statistics, with the loss development factors as the most significant assumption related to the insurance reserves and the frequency and severity assumptions as the most significant assumptions related to insurance-related accruals, and utilizes actuarial models and techniques to estimate the reserves. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future years for events that occurred in a prior year at a rate that differs from previous actuarial projections. The impact of these factors on ultimate costs for insurance is difficult to estimate and could be material. However, while the Company believes that the insurance reserve and insurance-related accrual amounts are adequate, the ultimate liabilities may be in excess of, or less than, the amounts provided. As a result, the net amounts that will ultimately be paid to settle the liabilities and when amounts will be paid may significantly vary from the estimated amounts provided for on the consolidated balance sheets. For example, disruptive factors may distort data, metrics and patterns and result in rapid increases in insurance cost and reserve deficiency. These disruptive factors can include recent economic conditions and ongoing global events such as the high inflationary environment, increased litigation, and higher than expected losses across the commercial auto industry. The Company continues to review its insurance estimates in a regular, ongoing process as historical loss experience develops, additional claims are reported and settled, and the legal, regulatory and economic environment evolves.

Foreign Currency

The functional currency of the Company’s ~~uses~~foreign subsidiaries is the local currency or U.S. dollar ~~predominantly~~depending ason the ~~functional~~nature ~~currency~~ of ~~its~~the ~~foreign~~ subsidiaries’ activities. For the foreign ~~subsidiaries~~subsidiary where the ~~U.S.~~local ~~dollar~~currency is the functional currency, ~~gains~~translation ~~and~~adjustments ~~losses from remeasurement~~ of foreign currency ~~balances~~financial statements into U.S. dollars are ~~included~~recorded onto ~~the~~a ~~consolidated~~separate ~~statements~~component of ~~operations~~accumulated other comprehensive income (loss). For ~~the~~ foreign ~~subsidiary~~subsidiaries where the ~~local~~U.S. ~~currency~~dollar is the funct

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