Lyft 2025 Forecast: Bookings to Soar 15% Annually, Ad Revenue to Explode by 2027
Discover Lyft's ambitious growth plans, projecting a 15% annual rise in gross bookings and an eightfold increase in advertising revenue by 2027, driven by innovative in-app and in-car ad platforms.
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Highlights to Know
- Lyft projects a steady 15% yearly increase in gross bookings through 2027, signaling robust growth.
- The ride-sharing giant aims for an adjusted EBITDA margin near 4% by 2027 and expects free cash flow conversion above 90% between 2025 and 2027.
- Advertising revenue from Lyft’s app, in-car tablets, and rooftop screens is set to surge, reaching $400 million in gross bookings by 2027—an eightfold jump from 2024.
On Thursday, Lyft (LYFT) shares climbed following the company’s optimistic long-term growth announcement at its inaugural investor day.
Lyft’s leadership outlined expectations for gross bookings to grow annually by 15% up to 2027. The firm also anticipates boosting its adjusted EBITDA margin to approximately 4% of gross bookings by 2027, alongside a strong free cash flow conversion rate exceeding 90% annually from 2025 through 2027.
Strategic Growth and Margin Expansion Ahead
CFO Erin Brewer emphasized that these financial targets underscore Lyft’s commitment to healthy revenue growth and expanding profit margins as it executes its strategic initiatives.
Despite the upbeat long-term outlook, Lyft maintained its current-quarter and full-year guidance unchanged.
In a pre-event interview with Reuters, Zach Greenberger, Lyft’s Executive VP of Partnership Ecosystem, shared that advertising revenue is expected to skyrocket to $400 million in gross bookings by 2027, up from much lower levels in 2024. Lyft’s ad placements span its mobile app, in-car tablets, and rooftop displays, tapping into multiple engagement points.
Following the announcement, Lyft shares rose 2.3% to $15.89 by midday Eastern Time on Thursday.
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