Earnings Analysis August 4, 2026

Lime ($LIME) Q2 2026 Earnings Analysis — Revenue Beats Expectations, New Guidance Issued, Shares Rally After-Hours

Earnings Scorecard

Revenue: $304M (+24% YoY, vs. $283M estimate) ✅ Beat

EPS: GAAP diluted $4.73 (attributable to common shareholders, including one-time tax benefit). Adjusted estimate was $1.93 — different basis, not directly comparable

Guidance: Newly issued — Q3 revenue $340–$360M and adjusted EBITDA $120–$130M; full-year revenue $1.04–$1.10B

Stock reaction: After-hours +5.02% ($32.64) — as of 08-05 06:19 KST

Highlights

Revenue beat: Q2 revenue of $304M, +24% YoY, topped the $283M estimate

Profitability held: Adjusted EBITDA of $84M, margin of 28% of revenue

Guidance & balance sheet strengthened: Issued new Q3 and full-year outlook; repaid all long-term debt

Lime is the world's largest shared micro-mobility (e-bikes and e-scooters) operator and, in its first quarter as a public company, posted its largest-ever quarterly revenue. Revenue of $304.22M comfortably exceeded the prior-year quarter's $246.07M and also topped the analyst consensus of $283M. Average active vehicles reached 407,707, up 22% YoY, providing the foundation for the top-line expansion.

Adjusted EBITDA — a key profitability metric for the core business — came in at $84.2M, improving from $76.18M a year earlier, with a margin of roughly 28% of revenue. Adjusted gross profit was $158.45M (adjusted gross margin of 52.1%). Using IPO proceeds, the company retired all of its long-term debt, shoring up its balance sheet, and shortly after quarter-end it closed the acquisition of Neuron Mobility's Canadian operations, expanding its North American footprint.

Shortcomings

One-time net income: Pre-tax result was a loss; net income reflects one-time impacts including a tax-valuation-allowance release

Sharp decline in operating income: A surge in stock-based compensation meaningfully narrowed operating income YoY

Margins and cash weakened: Gross margin declined, and free cash flow swung from a surplus last year to a deficit

GAAP net income of $295.38M (diluted EPS attributable to common shareholders of $4.73 / basic EPS of $26.70) looks large at first glance, but pre-tax income was actually a loss of $3.05M. Within the tax line, a roughly $298.43M benefit (largely a release of the U.S. deferred tax asset valuation allowance and other one-time items) flowed through, inflating net income — and management itself acknowledged that IPO-related one-time items had a positive impact on net income. The adjusted EPS estimate of $1.93 and the GAAP EPS figure use different bases and cannot be directly compared.

Operating income of $12.81M fell sharply from $41.54M in the prior-year quarter. The drop was driven mainly by higher SG&A and R&D expenses, along with a steep increase in stock-based compensation to $38.08M from $2.97M a year earlier. Gross margin slipped to 42.4% from 44.3%, and free cash flow deteriorated to negative $4.13M from a positive $52.27M in the year-ago period (reflecting higher capex on vehicles and other assets).

What Management Said

CEO Wayne Ting emphasized the record revenue and solid profitability in the first quarter as a public company, attributing the results to the vertically integrated platform, continued investment in existing and new markets, and expanded rider engagement. He framed the company as being in the early stages of a transportation shift, including the broader adoption of micro-mobility, and reiterated its mission of delivering shared, affordable, and carbon-free transportation.

CFO Ann Gugino said the company expects to sustain growth and profitability in Q3 and the full year, and noted that unit economics are favorable across markets of varying sizes worldwide. The company newly issued Q3 revenue guidance of $340–$360M and adjusted EBITDA of $120–$130M, along with full-year revenue of $1.04–$1.10B, adjusted EBITDA of $265–$285M, and capex of roughly $180–$185M. GAAP net income guidance was not provided due to variability in relevant items.

Market Reaction and Key Items to Watch

The market appears to be treating the revenue beat and the initial issuance of Q3 and full-year top-line and adjusted EBITDA guidance as evidence of improved growth visibility. Beyond the headline net income figure, the continued adjusted EBITDA margin, the deleveraging achieved through the debt repayment, and the core-business momentum from the Canada expansion naturally support the bullish interpretation. That said, the pre-tax loss excluding the one-time tax benefit, the narrowing of operating income, and the deterioration in free cash flow remain risks, and confirming the "underlying" numbers in coming quarters will be important.

Track whether the company hits its Q3 guidance of $340–$360M in revenue and $120–$130M in adjusted EBITDA.

Watch whether operating income excluding one-time items and adjusted EBITDA margin are sustained.

Monitor capex and free cash flow trends as the fleet expands and following the Canada acquisition.