Neutron (NASDAQ:LIME) Posts Quarterly Earnings Results, Beats Estimates By $4.74 EPS

Key Points

• Neutron reported a major earnings beat, delivering $4.73 in quarterly EPS versus the consensus estimate of a $0.01 loss. Q2 revenue reached a record $304.2 million, up 23.6% year over year, while fleet size and monthly active users grew about 22%.
• Management forecast full-year revenue of $1.04 billion–$1.10 billion and adjusted EBITDA of $265 million–$285 million, supported by strong LimePrime adoption and increased rider engagement.
• Adjusted gross and EBITDA margins declined due to investments in subscriptions and new markets, but the company repaid its $115 million term loan and now has no long-term debt. Q2 net income also benefited from a one-time $289.1 million deferred-tax benefit.

Neutron (NASDAQ:LIME - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $4.73 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $4.74, Zacks reports.

Here are the key takeaways from Neutron's conference call:

• Lime reported record Q2 revenue of $304.2 million, up 23.6% year over year, with average fleet and monthly active users each growing approximately 22%.
• Management projected full-year revenue of $1.04 billion–$1.10 billion and adjusted EBITDA of $265 million–$285 million, implying the company’s first year above $1 billion in revenue and continued EBITDA growth.
• LimePrime adoption exceeded expectations, reaching a double-digit percentage of the user base and increasing rider engagement; management believes subscriptions can improve retention, lifetime value, vehicle utilization, and long-term cash flow.
• Adjusted gross margin fell to 52.1% from 55.7% a year earlier, while adjusted EBITDA margin declined to 27.7% from 31%, primarily due to investments in LimePrime and newer mega-city markets.
• Following the IPO, Lime repaid its $115 million senior secured term loan and converted its notes, leaving the company with no long-term debt; however, Q2 net income was boosted by a one-time $289.1 million deferred-tax benefit and affected by IPO-related share-based compensation.

Neutron Trading Up 9.3%

Neutron stock traded up $2.65 during trading hours on Tuesday, reaching $31.08. The stock had a trading volume of 721,461 shares, compared to its average volume of 320,542. Neutron has a 52 week low of $23.87 and a 52 week high of $32.87.

Analysts Set New Price Targets

A number of brokerages have weighed in on LIME. The Goldman Sachs Group initiated coverage on Neutron in a report on Monday, July 27th. They issued a "buy" rating and a $39.00 target price on the stock. William Blair started coverage on shares of Neutron in a research note on Monday, July 27th. They set an "outperform" rating on the stock. Zacks Research raised Neutron to a "hold" rating in a report on Tuesday, July 28th. Needham & Company LLC initiated coverage on Neutron in a research note on Monday, July 27th. They issued a "buy" rating and a $36.00 target price for the company. Finally, Wall Street Zen raised shares of Neutron to a "hold" rating in a research report on Sunday, July 12th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $38.29.

Insider Transactions at Neutron

In other news, Director Zhoujia Bao sold 73,397 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $25.00, for a total transaction of $1,834,925.00. Following the transaction, the director owned 668,859 shares in the company, valued at $16,721,475. This trade represents a 9.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Wayne Hsing-Yuan Ting sold 99,115 shares of Neutron stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $25.00, for a total value of $2,477,875.00. Following the completion of the sale, the chief executive officer directly owned 433,351 shares in the company, valued at $10,833,775. This represents a 18.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 3.80% of the company's stock.

Neutron Company Profile

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.

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