Lime Strong Execution While Investing Toward Future Growth; Maintain Overweight & $38 PT

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Lime

Strong Execution While Investing Toward Future

Growth; Maintain Overweight & $38 PT

Overweight

LIME, LIME US

Price (04 Aug 26):$31.08

▲Price Target (Dec-27):$38.00

Prior (Dec-27):$35.00

Lime delivered solid results in its first public quarter. 2Q revenue growth of

+24% exceeded our expectation, with strong execution driving +22% growth in

Average Operational Fleet, along with improving utilization & rider engagement.

Lime rolled out LimePrime globally in February, a recurring monthly subscription

program that provides unlimited vehicle unlock, flat rate pricing, & extended

vehicle reservations, and early adoption is exceeding internal expectations.

LimePrime subscribers already represent a DD% of the user base, w/notable

adoption among riders that are still early in the lifecycle. That said, accelerating

LimePrime adoption drove a headwind to 2Q margins & will continue to weigh

through the remainder of the year, as LimePrime profit per ride is lower vs. PAYG.

However, Lime expects LimePrime to drive higher rider engagement, retention, &

lifetime value and should further enhance Lime’s competitive positioning in what

we believe to be a winner-takes-most market. Looking ahead, the 3Q & 2026

guidance reflects continued broad-based strength across existing markets,

contribution from newer cities, & fleet productivity improvements, as well as

ongoing investments in LimePrime & newer megacities. We continue to believe

Lime has a best-in-class growth & profitability profile & remains focused on

scaling sustainably over time with multiple levers for growth. We maintain our

Overweight rating, and our December 2027 PT of $38 is based on ~10x our 2028E

FCF of $196M.

Strong Execution Drives Top-Line Upside. 2Q Revenue of $304M (+24%

Y/Y) came in above JPMe/consensus, including +22% growth in Average

Operational Fleet & +1% growth in RVD. Existing markets were the primary

driver of growth, with execution across fleet scaling, repairs, & maintenance

supporting vehicle uptime. While RVD remains pressured by fleet growth in

newer megacities, rider engagement was strong & 2Q MAU reached 5M

(+22% Y/Y).…