Lyft settles California driver misclassification case for $272.5M, no change to Q3 2026 guidance

Lyft, Inc.

Settlement total $272.5M with State of California, CA AG, city attorneys of San Francisco, Los Angeles, San Diego, Labor Commissioner, and two PAGA plaintiffs.
Covers alleged misclassification of drivers from April 5, 2016 through December 15, 2020; payments over four years with 5% simple interest after year one, max $12.4M interest.
Lyft recorded a $210M accrual in Q4 2025; settlement amount is excluded from Adjusted EBITDA and Adjusted EBITDA margin.
No change to Q3 2026 Gross Bookings, Adjusted EBITDA, or Adjusted EBITDA margin guidance from August 6, 2026; Q3 results due in November 2026.
Settlement includes no prepayment penalties or prospective operational commitments and is not an admission of liability.

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