Neutron (NASDAQ:LIME), the shared micromobility company operating under the Lime brand, reported record second-quarter revenue in its first earnings call as a public company, citing fleet growth, rider engagement and subscription adoption. The company also outlined third-quarter and full-year guidance that calls for continued revenue growth and positive free cash flow for 2026.
Lime reported Q2 revenue of $304.2 million, up 23.6% from a year earlier. Adjusted EBITDA rose to $84.2 million, representing a 27.7% margin. The quarter included net income of $295.4 million and diluted earnings per share of $4.73, though CFO Ann Gugino said those results included several IPO-related one-time items.
Fleet and rider base expanded
CEO Wayne Ting said Lime’s average operational fleet increased 22% year over year to 408,000 vehicles in the second quarter. Monthly active users also rose 22% to 5 million, while revenue per vehicle per day reached $8.20.
“The first and most important lever driving our growth is the expansion of our operational fleet,” Ting said, describing fleet density and vehicle availability as central to rider adoption and repeat usage.
Gugino said revenue per vehicle per day increased 1.2% on a reported basis, but grew in the mid-single digits on a same-market basis after accounting for growth in newer markets. Those newer markets initially carry lower utilization and margins as fleets scale, she said.
The company operates in approximately 230 cities across 29 countries. Ting said Lime recently renewed its London-wide scooter RSP permit and has continued to receive fleet increases and permit awards from city partners. He said the company believes it is at least three times larger than its nearest global competitor.
Subscription products pressure margins but support engagement
Lime highlighted early adoption of its LimePrime subscription offering, which launched globally in February. The product offers unlimited vehicle unlocks, flat-rate pricing and extended reservations. Gugino said LimePrime already represented a double-digit percentage of the company’s user base in the quarter.
Management said the product’s success has put near-term pressure on gross margins because subscribers may pay less per trip than pay-as-you-go users. However, Ting and Gugino said the company expects higher rider frequency, retention and lifetime value to offset that pressure over time.
Ting said historical LimePass users took more than six times as many trips after subscribing. He said LimePrime adoption has been notable among riders early in their lifecycle, rather than primarily among customers moving from LimePass.
“The overall lifetime value per rider and the total dollar profits is growing even though the margin or the average price per trip and the margin per trip could be declining,” Ting said.
Combined LimePass and LimePrime revenue accounted for about 40% of total revenue in Q2, up from the low-30% range a year earlier, according to Ting.
Q2 adjusted gross profit was $158.4 million, compared with $137 million a year earlier, while adjusted gross margin declined to 52.1% from 55.7%. Gugino attributed the margin decline to LimePrime investments and spending to scale newer “mega city” markets.
Canada acquisition and expansion plans
Lime expanded its Canadian footprint through the acquisition of Neuron Mobility’s Canadian operations. Ting said the transaction is expected to add operations in 12 new cities and regions, supporting potential expansion into markets including Montreal, the greater Toronto area and Calgary.
Gugino said the purchase price was under $10 million and that the acquisition primarily secured strategic permits and licenses. The company does not expect the transaction to be material to 2026 revenue, although it could add one to two percentage points to revenue growth over the longer term.
Management said it will pursue acquisitions selectively, with an emphasis on permits, attractive purchase prices, unit economics and returns on invested capital. Ting said Lime generally prefers transactions that allow it to deploy its own hardware, software and operating model.
The company also pointed to newer markets such as Sydney and Tokyo as areas of investment. Ting said these cities have lower utilization in their early stages but are expected to develop economics more consistent with the broader platform as fleet density and rider reliability improve.
Guidance calls for continued growth
For the third quarter, Lime expects revenue between $340 million and $360 million, representing 16% growth at the midpoint. Adjusted EBITDA is forecast at $120 million to $130 million.
Gugino said Q3 should benefit from the company’s seasonally strongest period, with a typical 300- to 400-basis-point improvement from Q2 driven by higher summer utilization. She also cited an expected sequential benefit of about $20 million from lower share-based compensation expense.
- Full-year 2026 revenue guidance: $1.04 billion to $1.1 billion
- Full-year adjusted EBITDA guidance: $265 million to $285 million
- Full-year capital expenditures guidance: $180 million to $185 million
- Expected full-year free cash flow: Positive
Capital expenditures totaled $75.7 million in Q2, up from $35 million a year earlier, as Lime invested in fleet growth, new markets and inventory ahead of peak season. Free cash flow was negative $4.1 million for the quarter due to those investments and working-capital timing.
Following its IPO, Lime received $155 million in net proceeds and used part of that amount to repay its $115 million senior secured term loan. Gugino said the company now has no long-term debt after the repayment and conversion of its convertible notes.
About Neutron (NASDAQ:LIME)
Lime is the largest global shared micromobility business. We are on a mission to build a future where transportation is shared, affordable, and carbon-free. Lime provides convenient and reliable short-term rentals of e-scooters and e-bikes at an affordable price. As of December 31, 2025, we operated in approximately 230 cities(1) across 29 countries(2). In 2025, we delivered a seamless rider experience to approximately 19 million riders. Our market leadership and scale have made Lime a widely recognized brand — valued by riders for our availability and trusted by cities for our operating track record.
