Lime Cuts Its 2026 EBITDA Outlook to $253M-$255M as Q3 Revenue Rises 20% to $361M and Margin Slips
Net income rose 41% to $43.7M and the fleet grew 26%, but adjusted EBITDA margin slipped to 32.8% from 35.4% and Q4 is guided to $43M-$45M.
Lime (LIME) reported third-quarter 2026 revenue of $360.6 million, up 20% from a year earlier and just above the top of its $340 million to $360 million guide, and net income of $43.7 million, up 41%. Adjusted EBITDA of $118.4 million fell short of its $120 million to $130 million guide, and the company lowered its full-year adjusted EBITDA outlook to $253 million to $255 million from $265 million to $285 million. Shares were down about 10.8% in after-hours trading.
Third-quarter results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $360.6M | $301.6M | +20% |
| Net income | $43.7M | $30.9M | +41% |
| Adjusted EBITDA | $118.4M | n/a | Margin 32.8% versus 35.4% |
| Average operational fleet | 447,184 | n/a | +26% |
| Free cash flow | $90.6M | $98.8M | -8% |
Nine-month free cash flow was $7.3 million. Chief Executive Wayne Ting said Q3 was a landmark quarter as Lime crossed $1 billion in trailing twelve-month revenue for the first time, and Chief Financial Officer Ann Gugino said early trends in LimePrime engagement and retention are encouraging.
Outlook
| Item | New guidance | Prior guidance (Aug. 4) |
|---|---|---|
| Q4 2026 revenue | $240M to $250M | n/a |
| Q4 2026 adjusted EBITDA | $43M to $45M | n/a |
| Full-year revenue | $1.04B to $1.10B | $1.04B to $1.10B |
| Full-year adjusted EBITDA | $253M to $255M | $265M to $285M |
| Full-year capital expenditures | $172M to $177M | $180M to $185M |
By our calculation, the full-year EBITDA midpoint of $254 million is about 7.6% below the prior midpoint of $275 million, and the new range sits below the prior low end. The Q4 EBITDA midpoint of $44 million implies a margin of about 18%, against 32.8% in Q3. Nine-month revenue of $835.0 million plus the Q4 guide implies about $1.075 billion to $1.085 billion for the year. Lime announced no share repurchase program.
What to watch
- Conference call. What drove adjusted EBITDA below guidance and how much of the cut reflects timing.
- Margin. Whether the 32.8% quarterly margin is sustainable outside the peak summer season.
- LimePrime. Engagement and retention of the subscription product.
- Related coverage. See our reports on Starbucks, Marriott and Upwork.
Sources: Lime's investor relations site, its third-quarter 2026 results release and its second-quarter 2026 results on SEC EDGAR, which contains the prior guidance. The after-hours move comes from market data and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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