Neutron Holdings, Inc. Common Stock 2026 Q2 Earnings Call

Thank you, operator, and thank you all for joining us today. Welcome to Lime's Q2 2026 earnings presentation, our first as a public company. On the call today, we have Wayne Ting, Lime's CEO, Ann Gugino, CFO, and this is Mark May, Head of Investor Relations. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements based on our current expectations, assumptions, and forecasts about future events. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. Please refer to our latest filings with the Securities and Exchange Commission for more information about factors that may cause actual results to differ materially from forward-looking statements. During today's call, we will refer to certain non-GAAP financial measures.

A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings press release, supplemental slides, and filings with the SEC, each of which is posted to our investor relations website at investors.li.me. Today's call is being webcast, and a replay will be available on our investor relations website following the call. After the prepared remarks, we will open the call to questions. With that, let me hand it over to Wayne.

Thank you, Mark. Welcome everyone to our first earnings call as a public company. This is a moment our teams have been diligently working toward, and we're very excited and proud to be here. I would like to thank all the Limers across the organization and everybody who has contributed to Lime's success. Their tireless contributions have gotten us here and have made Lime the micro-mobility provider of choice for riders and cities globally. In Q2 2026, Lime delivered record revenue of $304 million. That's up 24% year-over-year and reflects consistent strength in the core components of our growth algorithm, namely fleet growth and rider engagement. In fact, the average operational fleet grew by 22% year-over-year to 408,000 average vehicles. Our monthly active users grew 22% to five million users. Revenue per vehicle per day, which is our primary utilization metric, grew to $8.20.

It's important to note that Q2 and Q3 are the seasonally strongest quarters for Lime. Our 24% revenue growth this Q2 comes on top of a record Q2 last year as well. We are also proud to be a Rule 40+ company and continue to deliver on the bottom line in Q2, achieving adjusted EBITDA of $84 million, which reflects a 28% margin. Since this is our first earnings call as a public company, before getting into greater detail around the quarter, I'd like to take a few minutes to outline our business model, Lime's market position, and the secular trends shaping micro-mobility, as well as our strategic priorities to drive long-term growth. Lime was founded on a simple but ambitious idea that people and cities deserve transportation that is shared, affordable, and carbon-free.

Going public on Nasdaq this July was an important milestone in that journey, but it's only one step. Our objective remains the same, to further grow and scale a business that creates value for riders, cities, and shareholders alike. We believe we are still in the early innings of building and unlocking a substantial global market opportunity. The tailwinds driving micro-mobility adoption are strong. Rising urban congestion, a generational shift away from car ownership, and sustainability ambitions at a global scale. Cities are eager for solutions to congestion and pollution, and people want more accessible and affordable ways to move around the cities they live and visit. The incredible thing is that Lime is a solution to all of these transportation challenges, from congestion to affordability to sustainability. We believe we are the clear market leader making this industry a reality.

Since our founding, riders have taken more than 1 billion trips on Lime vehicles across five continents. Today, we operate in approximately 230 cities in 29 countries through close partnerships with local governments. Those partnerships are earned one permit and city at a time through reliable service and consistent execution. We have built a strong track record of winning, renewing, and expanding these local partnerships. One example of that strength in government relations is that we renewed the London-wide scooter RSP permit recently, extending our leadership in micro-mobility in one of the top-tier global cities. Our competitive advantage is based on the fact that we've built a vertically integrated platform that includes software, hardware, tech-enabled operations, and government relations expertise. We believe this integrated model is differentiated in the industry and has been a key contributor to our leading position.

At the heart of everything we do is data. The more than 1 billion trips that have been completed on our platform means we have a massive amount of real-world data, which informs the hardware and software we build, the operations we run, and the government relationships we grow. Importantly, this data advantage compounds over time. It improves our vehicle design, it sharpens our demand forecasting, it increases fleet utilization, and it's the reason why Lime innovates faster, operates more efficiently, and is better at meeting the needs of our riders and city partners. As we continue to scale, those advantages reinforce one another, creating positive feedback loops that we believe becomes increasingly difficult to replicate. The deep vertical integration has been driving our growth and keeping Lime in the lead in an industry where operational excellence is critical.

In short, scale begets scale, and Lime is the only scaled operator in our industry. Let's now turn to the powerful growth algorithm that's fueling our success. The first and most important lever driving our growth is the expansion of our operational fleet. Because cities tend to award permits and fleet increases to the most trusted operators, having strong compliant operations on the ground has enabled Lime to win a disproportionate share of the permits and fleet growth awarded by our city partners. Notably, while fleet growth comes from both existing markets and new cities, over the past few years, the majority of our growth has come from existing markets, and we continue to see significant opportunities to deepen our deployment. When we grow our fleet in existing markets, we also improve the reliability of our service to riders.

Because reliability is the most important purchase criteria for riders, winning with cities also means winning with riders. Another key growth lever in our business is the utilization of our fleet. The primary utilization metric is revenue per vehicle per day, or RVD. As we add more vehicles to our cities, we increase density. Density drives reliability, and in transportation, reliability is what gets riders to adopt and engage with the platform. When we couple density with industry-leading supply positioning software, that means there is typically a Lime vehicle available exactly when and where riders need it. Another tailwind to utilization has been the success of our LimePrime and LimePass engagement products. When riders become a subscriber to our membership programs, we typically see them do multiple times more trips on the platform relative to a pay-as-you-go rider.

This is also why in cities all over the world, we have seen utilization grow even as we expand our fleet, which tells us we are far from saturation anywhere in our network. In fact, we see significant room to grow in almost every market we serve, and this is why we believe existing markets will remain our biggest growth driver in the coming years. The third lever in our growth algorithm is monthly active users, or MAU, which has grown consistently at double-digit rates over the past few years. This reflects the strength of our service and the presence of our vehicles in-market, which acts as outdoor advertisement, driving customer acquisition while keeping our marketing spend extremely low. In Q2, MAU growth accelerated to 22%, demonstrating our strong execution and highlighting how early we are in our growth journey.

Looking ahead, we expect future growth to come from multiple proven drivers. This includes deepening our presence in existing markets, introducing enhancements that drive rider engagement, opening up new cities and countries, continuing to innovate around our software and fleet, and selectively pursuing strategic acquisitions and partnerships. Importantly, our track record demonstrates that when we invest for growth, we generate strong, predictable economics and long-term benefits. Two key areas of focus include new markets and rider engagement. We've highlighted countries like Australia, where cities like Sydney delivered triple-digit growth rates in Q2 as examples of newer markets with significant opportunity to drive growth and scale. Canada is another example where we recently made the strategic decision to expand on what was already a strong presence in the country, extending Lime's footprint with the acquisition of Neuron Mobility's Canadian operations.

This should bring Lime to 12 new cities and regions throughout Canada, positioning us for further expansion into cities like Montreal and the greater Toronto area, and importantly, marking our return to Calgary. Just as importantly, the Neuron transaction also reflects our disciplined approach to capital allocation. We pursue acquisitions selectively, focusing on strategic fit, strong unit economics, and opportunities where we have the potential to deliver a substantial value add to a market and generate a compelling return on investment for our shareholders. The recent World Cup Games are an example of how we use major sporting events to drive user trial and engagement, and also how Lime can uniquely deliver value to our city partners.

As host cities welcome millions of visitors, our teams work closely with local government officials and partners to expand fleet availability, optimize vehicle distribution, and help move riders efficiently between transit hubs, fan zones, stadiums, and surrounding neighborhoods. The results validated the model we've built at prior global events like the Paris and Milan Olympics. These moments demonstrate the flexibility of our operating model and reinforce why cities increasingly view shared micro-mobility as an essential part of their transportation system during major events. They also represent great opportunities for Lime to attract new riders to our platform cost-effectively, as every Lime vehicle is a rolling billboard for our service. We are always looking for ways to drive incremental adoption and utilization. Earlier this year, we completed the global rollout of our upgraded Lime Prime subscription program, which we have previously been piloting in select cities in 2025.