Lime posts $295M net income on $289M tax benefit; material weakness in controls disclosed

Filed August 11, 2026 · Period ending June 30, 2026 · ~2 min read

Key Changes

• high

  Net income of $295.4M in Q2 2026 (vs $20.5M prior year) driven almost entirely by a $289.1M discrete tax benefit from releasing the U.S. valuation allowance, not from operations. Operating profit fell to $12.8M from $41.5M.

  MD&A: Profitability and Tax Benefit verify on EDGAR →
• high

  Management disclosed a material weakness in internal controls due to insufficient accounting personnel with appropriate technical expertise. Disclosure controls were ineffective as of June 30, 2026; remediation underway but not yet complete.

  Controls and Procedures verify on EDGAR →
• high

  Revenue grew 24% to $304.2M in Q2 2026 on 22% fleet and user expansion, but free cash flow was negative $83.3M for the six months (vs negative $19.9M prior year) due to $132.6M in capex for fleet growth.

  MD&A: Revenue and Cash Flow verify on EDGAR →