Lyft, Inc. (LYFT) saw its shares surge 7.99% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results and an announcement of an expanded share repurchase program. The ride-hailing company reported better-than-expected earnings and provided an optimistic outlook for the second quarter, signaling continued growth and improved profitability.

For the first quarter, Lyft reported revenue of $1.5 billion, representing a 14% increase year-over-year. While this figure slightly missed analysts' expectations of $1.47 billion, the company's adjusted EBITDA of $106.5 million surpassed estimates of $92.4 million. Notably, Lyft achieved a net income of $2.6 million, marking a significant improvement from a net loss in the same period last year.

In a move that further boosted investor confidence, Lyft announced an increase in its share repurchase program to $750 million, with plans to deploy $500 million within the next 12 months. This decision comes in response to activist investor Engine Capital's recent proposal for strategic alternatives. Looking ahead, Lyft provided a positive outlook for Q2 2025, forecasting gross bookings between $4.41 billion and $4.57 billion, and projecting ride growth in the mid-teens percentage range year-over-year. The company's focus on expanding into smaller, car-dependent markets appears to be paying off, with cities like Indianapolis seeing a 37% growth in rides during Q1. These factors combined have contributed to the strong after-hours rally in Lyft's stock price.