Lyft’s Huge Earnings Hit Spurred by SEC Accounting Warning (2)

Lyft Inc.'s dismal earnings news was worsened by a warning from the US Securities and Exchange Commission that the ride-hailing company had to include its massive insurance reserve costs in the unofficial accounting measures it touts to investors.

The impact of the SEC’s directive—which was outlined in correspondence publicly released on Friday—was sizeable. Instead of reporting adjusted earnings of $126.7 million for the fourth quarter of 2022, the rideshare company delivered adjusted earnings of negative $248.3 million. The huge swing was caused by the need to beef up the insurance reserve by $375 million, an increase the company said ...