Lime Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $304 million, up 24% year-over-year, marking a record quarter.

Average Operational Fleet: Grew 22% year-over-year to 408,000 vehicles.

Monthly Active Users (MAUs): Increased 22% to 5 million.

Revenue per Vehicle per Day (RVD): $8.20, reflecting a 1.2% year-over-year growth.

Adjusted EBITDA: $84 million, representing a 28% margin.

Net Income: $295.4 million, with diluted EPS of $4.73, influenced by one-time items related to the IPO.

Adjusted Gross Margin: 52.1%, down from 55.7% year-over-year, impacted by investments in LimePrime and newer markets.

Capital Expenditures: $75.7 million, up from $35 million year-over-year.

2Strategic Updates and Business Highlights

Lime continues to strengthen its market position as the leading global micromobility provider, operating in approximately 230 cities across 29 countries.

The company renewed key permits, including a London-wide scooter RFP, enhancing its competitive advantage.

LimePrime, the new subscription service, exceeded expectations, contributing to higher engagement and retention rates.

The acquisition of Neuron Mobility's Canadian operations is expected to enhance Lime's footprint in Canada, adding 12 new cities.

Lime's operational model leverages data to improve vehicle design, demand forecasting, and fleet utilization.

3Forward Guidance and Outlook

Q3 Revenue Guidance: Expected between $340 million and $360 million, reflecting 16% growth at the midpoint.

Q3 Adjusted EBITDA Guidance: Forecasted between $120 million and $130 million.

Full Year 2026 Revenue Guidance: Estimated between $1.04 billion and $1.1 billion, marking a 21% year-over-year growth.

Full Year Adjusted EBITDA Guidance: Expected between $265 million and $285 million, representing 27% growth at the midpoint.

The company anticipates continued fleet growth and increased utilization, particularly from existing markets.

4Bad News, Challenges, or Points of Concern

Gross Margin Pressure: The adjusted gross margin declined due to investments in LimePrime and early-stage megacity markets, which may continue to affect margins in the near term.

Negative Free Cash Flow: Reported at $4.1 million for the quarter, although the company expects to be free cash flow positive for the full year.

Competitive Landscape: While Lime maintains a strong market position, ongoing competition in the micromobility space remains a concern.

5Notable Q&A Insights

Lime's strategy focuses on balancing growth investments with profitability, particularly through subscription services like LimePrime and LimePass, which enhance user engagement.

The World Cup event positively impacted user acquisition in cities like Atlanta, with a 60% increase in MAUs, though the long-term retention of these users is still being assessed.

The company is disciplined in its M&A strategy, focusing on acquiring permits and licenses that allow for efficient scaling in new markets.

LimePrime is expected to drive higher lifetime value for riders, even if initial margins are lower compared to pay-as-you-go models. Overall, Lime's Q2 2026 results reflect strong growth and strategic positioning in the micromobility market, despite some challenges related to margins and competitive pressures. The company is optimistic about its future growth trajectory, particularly with the expansion of its subscription services.