Lyft, Inc.LYFT
Lyft, Inc. Fair Value Disclosure
Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated by level within the fair value hierarchy (in thousands):
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Unrestricted cash equivalents and investments(1) | |||||||||||||||||||||||
| Money market funds | $ | 276,077 | $ | — | $ | — | $ | 276,077 | |||||||||||||||
| Certificates of deposit | — | 143,471 | — | 143,471 | |||||||||||||||||||
| Commercial paper | — | 216,525 | — | 216,525 | |||||||||||||||||||
| Corporate bonds | — | 267,491 | — | 267,491 | |||||||||||||||||||
| U.S. government and agency securities | — | 134,280 | — | 134,280 | |||||||||||||||||||
| Total unrestricted cash equivalents and short-term investments | 276,077 | 761,767 | — | 1,037,844 | |||||||||||||||||||
Restricted cash equivalents and investments(2) | |||||||||||||||||||||||
| Money market funds | 47,264 | — | — | 47,264 | |||||||||||||||||||
| Certificates of deposit | — | 104,370 | — | 104,370 | |||||||||||||||||||
| Commercial paper | — | 922,364 | — | 922,364 | |||||||||||||||||||
| Corporate bonds | — | 15,037 | — | 15,037 | |||||||||||||||||||
| U.S. government and agency securities | — | 844,063 | — | 844,063 | |||||||||||||||||||
| Total restricted cash equivalents and investments | 47,264 | 1,885,834 | — | 1,933,098 | |||||||||||||||||||
| Total financial assets | $ | 323,341 | $ | 2,647,601 | $ | — | $ | 2,970,942 | |||||||||||||||
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(1)$439.2 million of cash and $360.1 million of money market deposit accounts are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $1.8 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets.
(2)Excludes $3.0 million of restricted cash, which is included within the $1.9 billion of restricted cash and cash equivalents and restricted short-term investments on the consolidated balance sheets.
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Unrestricted cash equivalents and investments(1) | |||||||||||||||||||||||
| Money market funds | $ | 189,839 | $ | — | $ | — | $ | 189,839 | |||||||||||||||
| Certificates of deposit | — | 171,358 | — | 171,358 | |||||||||||||||||||
| Commercial paper | — | 762,546 | — | 762,546 | |||||||||||||||||||
| Corporate bonds | — | 70,231 | — | 70,231 | |||||||||||||||||||
| U.S. government and agency securities | — | 353,274 | — | 353,274 | |||||||||||||||||||
| Total unrestricted cash equivalents and investments | 189,839 | 1,357,409 | — | 1,547,248 | |||||||||||||||||||
Restricted cash equivalents and investments(2) | |||||||||||||||||||||||
| Money market funds | 42,699 | — | — | 42,699 | |||||||||||||||||||
| Certificates of deposit | — | 189,596 | — | 189,596 | |||||||||||||||||||
| Commercial paper | — | 782,556 | — | 782,556 | |||||||||||||||||||
| Corporate bonds | — | 59,266 | — | 59,266 | |||||||||||||||||||
| U.S. government and agency securities | — | 465,857 | — | 465,857 | |||||||||||||||||||
| Total restricted cash equivalents and investments | 42,699 | 1,497,275 | — | 1,539,974 | |||||||||||||||||||
| Total financial assets | $ | 232,538 | $ | 2,854,684 | $ | — | $ | 3,087,222 | |||||||||||||||
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(1)$132.5 million of cash and $304.7 million of money market deposit accounts are not subject to recurring fair value measurement and therefore excluded from this table. However, these balances are included within the $2.0 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets.
(2)$2.2 million of term deposits are not subject to recurring fair value measurement and therefore excluded from this table. However, this balance is included within the $1.5 billion of restricted cash and cash equivalents and restricted short-term investments on the consolidated balance sheets.
During the year ended December 31, 2025, the Company did not make any transfers between the levels of the fair value hierarchy.
During the year ended December 31, 2025, the Company entered into foreign exchange forward contracts to reduce exposure in foreign currency translation for a total notional amount of €50 million. The forward contracts were settled in the same period and immaterial gains were recognized in the statement of operations during the year ended December 31, 2025 from such derivatives which were not designated as hedging instruments.
Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
The Company’s non-marketable equity securities are investments in privately held companies without readily determinable fair values and the carrying value of these non-marketable equity securities are remeasured to fair value based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment. Any changes in carrying value are recorded within other income, net in the consolidated statements of operations.
There were $12.2 million and $9.1 million of financial instruments measured at fair value on a non-recurring basis within other investments on the consolidated balance sheets as of December 31, 2025 and 2024, respectively.
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.