• Short interest in Lyft has ranged from about 17% to 26% of float in 2026 and is now 21.1%. Lyft faces thousands of lawsuits from passengers.

• Short sellers bought back shares as the price fell in July. A short squeeze followed from late July into August.

• Passive funds (index funds and ETFs) now hold the largest share of Lyft's long positions. Their share rose in May and June, while active funds and hedge funds lost share.

• Short sellers added positions from April to June as the market weighed the legal risks.

• The stock declined in early 2026, falling 16% following February earnings.

• Since February, the stock has traded between approximately $13 and $18.

• In late July, a short-side research firm published a report saying Lyft may face much more than $1 billion in legal costs.

• After the report, short sellers took profits and short interest began to fall.

• Lyft faces thousands of lawsuits, consolidated in multiple jurisdictions, from passengers alleging criminal conduct by drivers and negligence by Lyft. Uber has similar issues. These cases began before the short-side research firm's report.

• S3's crowding and squeeze scores run from 0 to 100, and scores above 70 are high. Lyft's crowding score stayed near 75 for most of 2026, showing that the short side was crowded. Its squeeze score was also high before the squeeze began in late July.

• From late July into August, the stock price rose more than 10% while short interest fell more than 10%. Short sellers' buying pushed the price higher.

• The mix of investors holding the stock changed little until mid-May.

• From mid-May to June, passive funds' share of long positions rose about 10 percentage points. Active funds' share fell by about the same amount. Hedge funds' share also fell.

• In August, after the short-side research firm's report, Lyft reported strong second-quarter results. Revenue and adjusted EBITDA beat expectations. Earnings per share were positive and grew from a year earlier, though they came in slightly below forecasts.

• Most analysts rate Lyft neutral, as they have in the past. About 1/3 rate it positive.

• Short interest is 76.1 million shares, or 21.1% of Lyft's 360.6 million-share float. Some of these short positions hedge Lyft's convertible bonds and do not reflect a negative view of the stock. Assuming the bonds are half-hedged, these hedges account for 13.5 million shares. Excluding them, short interest is about 17.4% of float, which is still crowded.

• For most of 2026, short sellers followed the price trend: they added positions when the price fell and closed positions when it rose. This is a momentum pattern.

• This pattern is different from convertible hedging, where short interest and the price move in the same direction.

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The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.