Neutron Holdings, Inc.

What they do

Neutron Holdings, Inc. (Lime) provides short-term rentals of e-scooters and e-bikes, generating revenue through unlock fees and per-minute usage fees from Pay-As-You-Go riders. It also offers subscription products called LimePass, including minute bundles and LimePrime. The company partners with cities to deploy its fleet and operates across five continents, having powered more than one billion rides.

Revenue drivers

• Pay-As-You-Go rides — Revenue comes from unlock fees plus per-minute usage fees; credits, coupons, and rider incentives reduce revenue. This is the core source of the $304 million quarterly revenue.
• LimePass: minute bundles — Riders purchase discounted ride minutes in increments, usable across multiple rides for 1 to 30 days. Revenue is recognized as minutes are used.
• LimePrime subscription — A recurring monthly subscription offering unlimited unlocks and extended reservations, recognized ratably over the subscription term. A new unlimited flat-rate ride option (up to 20 minutes each) was rolled out starting Q1 2026.

Recent performance

Second quarter 2026 revenue was $304 million, up 24% year-over-year, with net income of $295 million (positively impacted by one-time, IPO-related items) and Adjusted EBITDA of $84 million (28% margin). Average Operational Fleet grew 22% YoY to 407,707 vehicles. For the six months ended June 30, 2026, revenue rose 26% to $474 million, gross profit increased 26% to $174 million, and net income was $234 million versus a net loss of $35 million a year earlier. Operating cash flow was $49 million for the half, while free cash flow was negative $83 million.

Strategy

Lime aims to expand its platform by opening and winning new markets and growing within existing markets, while driving rider engagement through subscription offerings. The company invests in hardware and software innovation and in sales and marketing to attract and retain riders. Following its IPO, proceeds were used to pay down all outstanding long-term debt, strengthening the balance sheet. It also acquired Neuron Mobility's Canadian operations after quarter end to expand in Canada.

Risks

• Regulatory and permit risk — Lime operates under city permits and regulations that can change, limit fleet size, or revoke operating rights, directly impacting revenue and costs.
• Dependence on key markets and city partnerships — Revenue is concentrated in cities where Lime has permits; losing a major market or failing to renew permits could significantly reduce revenue.
• Vehicle depreciation and operating costs — Cost of revenue includes vehicle depreciation, field personnel, battery swapping, and insurance; higher-than-expected costs or vehicle damage can compress margins.
• Foreign exchange and international operations — Lime operates across five continents, exposing results to currency fluctuations and geopolitical risks in international markets.

Outlook

Management guided third quarter 2026 revenue of $340–$360 million and Adjusted EBITDA of $120–$130 million. For the full year 2026, guidance is revenue of $1.04–$1.10 billion and Adjusted EBITDA of $265–$285 million, with capital expenditures of approximately $180–$185 million. The company did not provide a GAAP net income outlook or reconciliation due to uncertainty in reconciling items.