Neutron Q2 Earnings Call Highlights

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. Those items included a $289.1 million non-cash benefit from releasing a valuation allowance on deferred tax assets tied to net operating losses, as well as a $35.8 million non-cash charge associated with the IPO-triggered vesting of restricted stock units. 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...