Neutron Q3 Earnings Call Highlights

Key Points

• Q3 revenue rose 20% to $361 million, with $118 million in adjusted EBITDA and $44 million in net income. Trailing 12-month revenue topped $1 billion, and Lime ended the quarter with $453 million in cash and no long-term debt.
• Fleet size grew 26% to 447,000 vehicles, but revenue per vehicle per day fell 4.8% to $8.77 as newer-market ramp-ups, subscriptions, and European competition weighed on utilization. Lime plans to invest in fleet reliability and compliance in Q4 rather than match competitors’ promotions.
• LimePrime subscribers took more trips, retained at three times the rate of non-subscribers, and generated twice their adjusted gross profit. Lime reiterated 2026 revenue guidance of $1.04 billion–$1.1 billion and adjusted EBITDA guidance of $253 million–$255 million.

Neutron NASDAQ: LIME, the company operating the Lime shared micromobility platform, reported third-quarter revenue of $361 million, up 20% from a year earlier, as fleet expansion and subscription adoption supported growth. The company also said trailing 12-month revenue surpassed $1 billion for the first time.

Adjusted EBITDA was $118 million, representing a 33% margin, while net income totaled $44 million, or $0.63 per diluted share. Lime generated $91 million in free cash flow during the quarter and ended the period with $453 million in cash and cash equivalents and no long-term debt.

Chief Executive Officer Wayne Ting said the company continued to operate as a “Rule of 40 Plus” business, referring to its combination of revenue growth and profitability. However, management said lower fleet utilization in certain European markets weighed on revenue per vehicle and profitability relative to expectations.

Fleet Growth Offsets Pressure on Utilization

Lime’s average operational fleet rose 26% year over year to 447,000 vehicles, an acceleration from the prior quarter’s growth rate. Management said fleet additions were driven by expansion in existing markets as well as newer markets, including Australia.

Revenue per vehicle per day, or RVD, was $8.77, down 4.8% from a year earlier. Ting attributed the decline to three factors: the ramp-up of fleet density in newer markets, increased adoption of the LimePrime subscription program, and competitive activity in select European markets.

New markets can initially produce lower RVD because Lime must first establish fleet reliability before rider demand reaches scale, Ting said. The company also said LimePrime’s flat-rate pricing can lower the average price paid by riders compared with pay-as-you-go trips.

Chief Financial Officer Ann Gugino said that, excluding market-mix effects from newer markets, same-market RVD growth was in the mid-single digits year over year. She said Lime expects to return to mid-single-digit RVD growth over time as its newer markets mature and subscription engagement increases.

Monthly active users increased 15.9% year over year to 5.5 million. The growth rate was moderated by heightened competition in certain markets, according to the company.

European Competition Prompts Investment Response

Management said competitive pressure was concentrated in Western European markets and the United Kingdom outside major cities. Ting said some smaller competitors had gained access to debt financing in recent months, enabling them to increase promotional activity and, in some cases, make commitments during request-for-proposal processes that Lime believes may be difficult to fulfill.

Lime said it chose not to match what it characterized as short-term, volume-focused competitive actions. Gugino said the company’s decision affected fleet utilization and accounted for the portion of RVD weakness that had not been anticipated in its forecast.

Instead, Lime plans to increase investments during the fourth quarter in fleet reliability, compliance and operational quality. Those efforts include local fleet-management investments, labor and parts for retrofits, sidewalk-riding detection and parking-verification technology.

“We thoughtfully chose not to match those actions, but that did impact fleet utilization in the quarter,” Gugino said. She added that Lime believes the investments made during its seasonally lower fourth quarter will position the business for growth in 2027.

Gross profit was $161 million, or a 45% margin, while adjusted gross profit was $195 million, or a 54% margin. Adjusted gross margin expanded 220 basis points sequentially. Adjusted EBITDA margin expanded by nearly 600 basis points from the prior quarter, but was below the company’s expectations because lower European utilization pressured gross margins.

LimePrime Shows Higher Engagement and Retention

Lime highlighted continued adoption of LimePrime, its recurring monthly membership program that includes unlimited vehicle unlocks, flat-rate pricing and extended vehicle reservations. Ting said LimePrime is on pace to exceed LimePass in trip volume this year.

In the third quarter, the average LimePrime rider took eight times as many trips as a pay-as-you-go rider and 16% more trips than a LimePass rider, according to the company. LimePrime retention improved sequentially and averaged three times higher than retention among non-subscribers.

Gugino said LimePrime subscribers generated twice the adjusted gross profit of non-subscription riders. She said the company has acquired LimePrime users largely through its owned channels, including in-app messaging, receipts and rider emails, rather than paid advertising.

Ting said Lime views memberships as a way to build customer loyalty rather than relying on short-term discounts. The company may explore other acquisition channels in the future if growth slows, but he said there are no current plans to alter the largely organic approach.

Fourth-Quarter and Full-Year Outlook

For the fourth quarter, Lime expects revenue of $240 million to $250 million, representing approximately 17% year-over-year growth at the midpoint. The company expects adjusted EBITDA of $43 million to $45 million, or an approximately 18% margin at the midpoint.

For full-year 2026, Lime reiterated revenue guidance of $1.04 billion to $1.1 billion, representing 21% growth at the midpoint. It expects adjusted EBITDA of $253 million to $255 million, or a 24% margin at the midpoint.

Full-year capital expenditures are expected to be between $172 million and $177 million. Gugino said the company reduced its CapEx outlook while growing its fleet because it has improved fleet availability and uptime through technology and maintenance practices.

Management also pointed to expansion opportunities in Australia and Canada. Ting said Australia grew more than 100% year over year during the quarter, while noting that most fleet growth continues to come from markets where Lime already operates.

Separately, Lime said its 2025 Carbon Inventory Report showed an 81% reduction in total carbon-emissions intensity from its 2019 baseline, while miles traveled on Lime vehicles increased 250% during the measurement period.

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.

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