Movida Participações S.A. (MOVI3) Earnings Call Transcript & Summary

Welcome to Movida's 3Q '25 Earnings Call. Today, joining us are Gustavo Moscatelli, CEO; and Daniela Sabbag, CFO and IR Officer. This event has been streamed on Zoom and also available on the company's website at ri.movida.com.br. [Operator Instructions] Before we begin, we would like to clarify that any forward-looking statements made during this call regarding the company's business outlook, operational and financial projections and targets are based on Movida's management beliefs and assumptions as well on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions as they relate to future events and therefore, depend on circumstances that may or may not a general economic conditions, industry conditions and other operating factors may affect the future performance of the company and lead to results that differ materially from those in the forward-looking statements. The results to be discussed in this call are presented in the earnings release and in the financial highlights spreadsheet available on the company's IR website. I'll now turn the floor to Mr. Gustavo Moscatelli. Sir, you may go on.

Good morning, everyone, and welcome to Movida's 3Q '25 Earnings Conference Call. I'd like to start by thanking our more than 6,000 employees for their efficiency, dedication and quality in executing the deliveries that resulted in this quarter's performance. Now let's begin with Slide 3. I'd like to highlight the continued initiatives reinforcing our commitment to improving the customer experience and capturing operational efficiency gains. This pillar has been key to consolidating Movida as a benchmark in the Brazilian car rental sector. The first highlight is the expansion of the digital experience in our physical stores. Today, 10 stores already feature self-service kiosks, which account for 26% of contracts opened in these locations, reducing the average time to open a contract to just 2 minutes and insurance and NPS of 95%. Our goal is to reach 20 stores by the end of this year, further enhancing convenience for our customers. The second highlight is the launch of Movida Pit Stop. Our first quick service center designed to serve Rent-a-Car, GTF and Car Subscription customers. These facilities were designed to offer greater convenience, located in parking lots of shopping centers and supermarkets as they already show an EPS of 94%. By December '25, we plan to expand to 10 units, ensuring greater control, management and maintenance cost reduction while also improving the customer experience. Another important initiative was the launch of the new Movida Loyalty Program, which already has more than 2.5 million registered customers. The goal is to increase rental frequency and strengthen preference for our services by offering exclusive benefits and strengthening relationships with our clients. All these initiatives reflect our ongoing commitment to innovation, operational efficiency and above all, to delivering the best experience for those who choose Movida. Moving on to Slide 4. We brought a summary of the structural improvements we continue to deliver consistently, always focused on generating value for our shareholders. The first relevant action refers to ongoing price adjustments in the Rent-a-Car segment. The average daily rate increased 12% in 3Q '25 year-on-year, reaching a record consolidated rate of BRL 159 per day. Second, we have maintained strong pricing levels in our fleet outsourcing segment with new contracts delivering an average monthly yield of 3.5% compared to 3.3% in the same period last year. Next, I'd like to highlight our capital allocation in long-term contracts. In 3Q '25, 61% of the company's gross fixed assets were allocated to the GTF segment. This initiative continues to drive predictability and resilience to our consolidated results and cash generation. The fourth initiative refers to the ongoing optimization of costs and expense management. As a result, we've maintained record EBITDA margins 68.8% in Rent-a-car and 76.5% in GTF, showing an improvement in operational efficiency across the company. Lastly, we have sustained strong performance in Used Cars. In the third quarter, we sold nearly 24,500 cars and kept stable EBITDA margins in this segment at around 1%. Now I'm going to move on to Slide 5 with our consolidated results. We reported another quarter of sequential record highs in net revenue from rental, EBITDA and EBIT operational improvements across all business lines have led to a true transformation in profitability indicators throughout the year. In 3Q '25, net revenue reached BRL 3.8 billion, record EBITDA of BRL 1.5 billion and record EBIT of BRL 854 million. Net income was BRL 17 million for the quarter and BRL 216 million year-to-date. As a result, we delivered the highest return on invested capital over the past 3 years, 14.4%, which expanded 2 percentage points compared to the same period in '24 and 6.4 percentage points higher than '23. It's important to highlight how these indicators evolved when we analyze the rental segment, which is our core business. Our operating fleet increased only by 4%, while net revenue from rental grew 15%, the highest in the company's history. Over the same period, EBITDA and EBIT from rental grew 19% and 23%, respectively, both reaching record highs. The current live operational efficiency is reflected in the company's strong results, driving a significant improvement in our value creation cycle for shareholders. Now I'm going to go to Slide 6, where we present the evolution of our rental EBITDA margin. Since 2016, showing that we have sustainably reached the best operating result since the company's IPO. As mentioned, in the third quarter, EBITDA margin in both Rent-a-Car and GTF reached record levels, 68.8% in the Rent-a-Car and 76% in GTF, demonstrating consistent profitability in recent quarters. This record level of margins reaffirms the accuracy of the measures implemented to enhance efficiency and reflect cost and expansion reduction initiatives we've been executing since early last year, positioning the company for a new phase of value creation. Now turning to Slide 7, we bring the depreciation trends of our assets. In Rent-a-Car, annualized depreciation per operating car in 3Q '25 was BRL 69,000 a year. Consistent with the past 5 quarters, showing a stable, healthy depreciation rate for the segment as a result of a well-defined fleet mix with new car depreciation between 8% and 9% per year. In GTF, annualized depreciation per car in 3Q '25 was BRL 11,000, also showing stability in depreciation rates between 9% and 10% a year. On Slide 8, I'm going to give you a breakdown of 1 of the strategies for this quarter focused on Rent-a-Car. As shown in the top left chart, pricing in the Rent-a-Car segment has grown sequentially, expanding business profitability. The average daily rate in 3Q '25 was BRL 159, 12% higher than in 3Q '24. Over the 9-month period, the increase was even greater, 15%, reaching a consolidated rate of BRL 157. One point I'd like to highlight is that for the first time, we achieved a simultaneous increase in both average rates and rental volume. That is the number of rental days, showing growing accuracy in business management. The chart below shows yield evolution across quarters, reflecting how pricing strategies and sales mix composition have raised yield levels to a record 4.3% per month in 3Q '25, the highest in the company's history. Continuous improvement in service quality has also driven higher participation of occasional rentals in the mix. This strategy has proven successful as occasional rentals have shown better price elasticity and demand. Consequently, occasional rentals accounted for 43% of the total rental base in the quarter, up 19% year-on-year. Now let's move to Slide 9 with Movida's consolidated financial results. Net revenue reached BRL 3.8 billion in 3Q '25 and BRL 10.2 billion year-to-date, up 7.6%. Net revenue from rental grew 15.3% in the quarter. Once again, I would like to highlight that our fleet grew only 4% year-on-year, which demonstrate productivity gains across operations. For the 9 months period, rental revenue grew 19.3%. EBITDA reached BRL 1.5 billion in the quarter, expansion of 18.5% year-on-year and 21% over the 9-month period. As mentioned earlier, EBITDA margins remain at record levels, confirming the accuracy of all measures implemented recently across all rental lines. EBIT in 3Q '25 totaled BRL 854 million, up 22.6% year-on-year. Finally, net income in the quarter reached BRL 70 million and BRL 216 million year-to-date, an expansion of 27.6% versus 2024. I'm moving on to Slide 10, where we show how these results translate into higher returns on invested capital. Return on invested capital reached 14.4% in 3Q '25, a significant improvement compared to both '24 and '23. This result demonstrates the continuation of value creation for our shareholders, exceeding the cost of debt by 4.1 percentage points and marking the highest return in 3 years. This progress combined with ongoing initiatives such as price adjustments, yield evolution, productivity in Used Cars and disciplined capital allocation and debt management positions us for sustainable and increase ROIC levels. On Slide 11, we bring our net income and leverage guidance for 4Q '25. This projection reflects the consistent improvement of our operating indicators, which have been steadily driving strong sustainable results. For 4Q '25, we project net income between BRL 75 million and BRL 90 million, representing growth of 21% to 44% year-on-year and 42% to 70% above market consensus. This will be the company's best quarter result in the past 3 years. Considering this guidance, full year '25, will -- net income will total between BRL 291 million and BRL 306 million, representing growth of 26% to 32% compared to '24. The second guidance indicator refers to leverage measured by net debt over EBITDA. We closed the fourth quarter last year of '24 at 3x and projects to reduce to between 2.6 to 2.8x by the end of this year, maintaining a healthy and solid capital structure and reinforcing our financial discipline. With these projections, we reaffirm our commitment to sustainable growth and value creation for shareholders. Now I will turn over to Daniela. Daniela?

Thank you, Moscatelli. Good morning, everyone. Continuing with the presentation, let's go through the highlights by business slide. On Slide 13, we show Rent-a-Car highlights. The first chart shows record monthly revenue per car, reaching BRL 3,497 a month in 3Q '25, up 7% year-on-year and BRL 3,421 year-to-date, up 9% versus 2024. This progress, combined with optimized capital allocation and an ideal mix led to a significant yield in yield, 4.3% a month in 3Q '25 versus 4.2% in 3Q '24. On Slide 14, we move to Rent-a-Car performance indicators. Net revenue was BRL 874 million in the quarter, up 14.3% year-on-year. The average operating fleet expanded just 6% in the same comparison, reaching 92,000 cars in 3Q '25. EBITDA reached BRL 601 million, up nearly 22% year-on-year. EBITDA margin reached a new profitability level, 68.8%, the highest ever reported by the company, expansion of 4.2 percentage points. As a result, EBITDA per car continued to grow totaling BRL 2,170 per month in the quarter, up 15.1% year-on-year and 14.4% year-to-date, reaching BRL 2,085 per car. On Slide 16, we present our GTF indicators. We closed 3Q '25 with an average operating fleet of about 128,000 cars, up 3% year-on-year. Future revenue backlog totaled BRL 7.1 billion in 3Q '25, up 2% versus 3Q '24. The next chart shows the share of GTF in gross fixed assets, which remains as part of our strategic focus for the year. This year, continuous high and reached 61% of our fixed assets in '25. On Slide 17, we show GTF financial results. Net revenue was BRL 1 billion this quarter, up 16% year-on-year, while the operating fleet grew at a much slower pace, 3.4% over the same period. This, therefore, resulted in another sequential increase in monthly revenue per car, reaching BRL 3,025 in 3Q '25, up 12.2% year-on-year and 15.1% for the 9 months period. EBITDA grew this quarter, 17.1% year-on-year to BRL 791 million with EBITDA margin at 76.5% in the segment. Consequently, EBITDA per car also grew, averaging BRL 2,057 per month in 3Q '25, up 13.2% year-on-year and 16.7% year-to-date. On Slide 19, which show our Used Car performance. We continue a healthy operation, selling 24,500 cars in the quarter. Since 1Q '24 we've kept a stable volume around 25,000 cars per quarter, reinforcing the company's maturity and operational efficiency. Year-to-date, we sold 75,200 cars. It's important to highlight the reduction of the average of the rental car fleet, which fell from 11 to 10 months in the quarter and from 12 to 10 months year-to-date, maintaining the fleet at age -- healthy age levels. Net revenue was BRL 1.8 billion in the quarter and BRL 5.2 billion year-to-date. It's important to highlight that the average selling price per car increased from BRL 67,700 to BRL 73,400 in the quarter and from BRL 67,100 to BRL 71,100 year-to-date. EBITDA margin remained stable over the past 5 quarters at 1% in 3Q '25. It's important to highlight on the slide that maintaining consistent sales volumes over the past 7 quarters ensures a stable average fleet age and operational predictability. Finally, SG&A, we observed stability in the quarter at 4.9% in both 3Q '24 and 3Q '25. For the 9 months period, it slightly increased from 5.2% to 5.3%, a minimum variation of 0.1 percentage points. The result demonstrates strict control of administrative and commercial expenses and reinforces our cost discipline. Going on to Slide 20, we highlight our inventory mix progress, which is a key driver of Used Car performance. The current profile offers higher liquidity and sales attractiveness with a greater share of entry-level cars. Hatchbacks accounted for 63% of our inventory this quarter, supporting faster asset turnover in the coming months. We also show the fit price table, which indicates an average monthly depreciation of 0.4% in 2025 through October compared to 0.8% in '24, clearly demonstrating the accuracy of our purchase mix and full asset cycle management. In addition to the car mix, Movida's distinctive position comes from brands and model diversification, strategic store locations, balanced retail, wholesale channel mix and marketing investments that foster retail sales. On Slide 22, I'm going to talk about our debt profile. On this slide, we highlight our cash position and debt maturity schedule pro forma as well as the quarterly maturities for '26. I'd like to highlight that our schedule remains extremely well balanced with no relevant concentration next year. Cash position in 3Q '25 exceeded BRL 3.3 billion, enough to cover over 100% of gross debt payments until the end of '26. We also have a breakdown of our cash showing 53% in AAA-rated Brazilian banks, 44% in government securities and the remainder in offshore accounts. Gross debt in 3Q '25 totaled BRL 18.8 billion. Net debt reached BRL 15.5 billion with an average cost of CDI plus 1.9% a year, an average maturity of 3.2 years. I'd like to reinforce that we continue to have broad access to credit lines with total funding of BRL 4.3 billion as of 3Q '25. After quarter end, the '23 and '24 debenture issuances highlighted on the slide, allowed us to extend '25 and '27 maturities to 5 years at lower funding costs. On Slide 23, we bring our indicators on leverage, interest coverage and supplier payment schedules. On the left of the slide, we have less first measured by net debt over EBITDA, which reached its lowest level in 5 years, 2.7x in 3Q '25, down 0.4x year-on-year. If we annualize 3Q '25 results, leverage would be 2.5x. In addition, our interest coverage ratio, EBITDA LTM over net financial expense remained stable at the level of last year at 2.4x. In the top chart, supplier balances decreased from BRL 5.1 billion in '24 to BRL 4.2 billion over the past 9 months of '25, a reduction of nearly BRL 900 million in the quarter. Now I will turn back to Gustavo Moscatelli for the closing remarks. Gustavo?

Thank you, Daniela. To conclude on Slide 24 and I'd like to reinforce Movida's main strategic priorities to ensure operational efficiency, profitability and sustainable value creation. The first point is improving Rent-a-Car occupancy rates to maximize fleet use and dilute fixed costs. Increasing profitability and contributing to higher yield and margin expansion currently among the best in the sector. Next, we are continuing to review price adjustments, using artificial intelligence and machine learning to capture greater value in car location across stores. Another highlight is the internalization of -- sorry, with the use of technology to have the best value in each store. Another highlight is the internalization of maintenance through Movida Pit Stop and preparation centers, ensuring greater control, quality and fleet availability combined with significant cost reduction and more efficient capital use while enhancing the customer experience. We are also advancing in process digitalization aiming to reduce SG&A and increase margins through automation and greater technology use. Lastly, we are expanding retail sales channels for Used Cars with new store models and a focus on converting wholesale profile cars into retail profile cars, ensuring higher returns on invested capital. All these initiatives reinforces Movida's commitment to maintaining premium service levels to our customers, fostering customer loyalty and expanding our client base to deliver sustainable profitability and long-term value. We are confident in the execution of our strategic plan and remain committed to evolving with accuracy, ensuring satisfactions to our customers and value creation to our shareholders. I'm confident we are on the right path, and that will still have much more to deliver. Once again, I thank the entire Movida team for their dedication and for everything, we are continuing building together with our clients, shareholders and partners. Thank you all for your trust. And now we are going to open for the Q&A session. Thank you.

[Operator Instructions] Our first question comes from Filipe Nielsen from Citi.

Congratulations on your results. I have 2 questions on my side. I will start with depreciation. We have seen the numbers that you saw in terms of sales mix vis-a-vis the [ FIP ] table, it seems things are stable. The milk helps. But this quarter, we did see a slightly higher depreciation, both for the Rent-a-Car and GTF, the depreciation by car. I'd like to understand if you see any pressure in terms of depreciation, any adjustments to be made or if this higher depreciation rate quarter-on-quarter should be stable. So just trying to understand the depreciation trends. And second question, a bit more related to the guidance. You had a good deleveraging this quarter, but your leverage guidance for 4Q does not imply a major continuity of deleveraging. So I would like to understand a bit of this dynamics, how we are going to keep you are deleveraging stability even with a better quarter and with very strong operations.

Filipe, this is Moscatelli speaking. Thanks for your questions. I'm going to start with depreciation. As you did mention, you could see that we had a depreciation value per car annualized is slightly above previous quarters, both in Rent-a-Car and GTF and that is 100% connected to the price of the cars we are buying to make up our fleet. You saw that acquisition costs in the third quarter were slightly higher. And so in the second quarter. Therefore, you have a higher level of depreciation. However, what is most important here is the annual depreciation rate, which is stable. So as you have a slightly higher average price because of car inflation in the last 12 months, obviously, the cost of replacement is slightly higher and then the nominal value of depreciation is higher, but depreciation rate has been stable in Rent-a-Car between 8% and 9% and GTF between 9% and 10%. It's just an average purchase price. I do not see any additional pressure on depreciation, as you mentioned. As for leverage, I think we had a huge efforts in the last 12 months. We went from 3.1% in 3Q 24 to 2.7%. The fourth quarter is seasonally the best quarter of the year to us. And the expectation, as we mentioned in our guidance is quite positive. And that might reflect leverage we did show an interval in which we are going to have a reduction compared to the third quarter, but this is a quarter where we grow the fleet a bit. So the mix of these 2 things should lead to a leverage ratio from 2.6% to 2.8%. So an upside compared to the third quarter, perhaps not that representative, but considering the size of the company, today, any 0.1x is a big thing. So anyhow, we are closing the year with a very strong capital structure and a much healthier leverage than what we had in the beginning of the year and with operations a lot more well oiled. So I think the whole thing is quite positive.

Our next question comes from Andre Ferreira from Bradesco BBI.

Congratulations on your results. I have 2 questions. The first is the guidance in terms of net income for the fourth quarter. If you could give us a bit more color, you have the seasonality of Rent-a-Car any margin expansion that is relevant in GTF in the Rent-a-Car, I suppose so because of seasonality, but any comparable improvement costs, for example, the car purchases, anything additional to what is business as usual in fourth quarter. So what are you supposing in terms of rates, depreciation? Any color is most welcome. And the second question is the price of new cars that were a bit higher in the second quarter and third quarter, both in the Rent-a-Car and GTF segment. What is the changing mix that is leading to those increasing prices? So that's my question.

Andre, this is Moscatelli. Thanks for your questions. Thanks for attending the call. I'll start with the guidance. You asked a bit more color on the guidance on net income for the fourth quarter. We obviously have our numbers for October closed. And in November, we already have a huge clarity on what the month is going to be like. And these 2 months in terms of results were very positive and beyond our initial expectations. In addition to that, as we are looking into December, as we did last year, our volume of reserves is between 10% to 15% higher and prices at the level that you saw in recent quarters, 10% to 15%. And so the combination of all this, particularly in Rent-a-Car and GTF continuing growing but not as volatile as Rent-a-Car. So no big surprises for the fourth quarter, but Rent-a-Car is what is driving the results for the fourth quarter. And that was the background for the numbers that we disclosed in the guidance. You talked about acceleration in car purchases, GTF margins no acceleration in terms of car purchases. We are following our year plan by the latter. And we had committed to have a flat fleet number for the year, of course, respecting seasonality to capture more value, but this is what we are doing. So nothing disruptive, no major acceleration. It is what we had planned for the year. And I think this is the result of this guidance with profit well beyond expectations. Purchase prices and depreciation. In the third quarter, we bought some cars to cope with the seasonality of the fourth quarter. And obviously, for this type of seasonality. We have a huge demand for higher-priced parts, automatic cars, SUVs. So in the end of the third quarter, we had so -- some opportunities that made us advance the purchase. But if you think of the average price is BRL 85,000, which is the mix that we consider optimal for the Rent-a-Car fleet. So no change in mix. Just using a timely purchase to cope with the seasonality of the fourth quarter.

Very clear. Just a follow-up in terms of guidance. In the guidance for the fourth quarter, can we assume a positive impact of interest on capital similar to what we had in the third quarter?

That's a good question. Thanks for raising the point. Along the last 2 years, Andre, we put our energy and focus on the company to improve the company's operational leverages to generate value. And now we are coming into a period in which we want to refine our whole P&L. And Daniela and the financial team have produced excellent work because we're not capturing all the benefits that we had in the payout of dividends and part of its property -- profit, I'm sorry, interest on capital. So now we are making our payments on interest on capital. And now we are going to have a rate very close to the competition. Our rate was 30%, 32% and the competitors 18%. So as of now, as we are making our payment of dividends through interest on capital, that's what we're going to have for the third quarter, fourth quarter and the remainder and also the entire next year.

Our next question comes from Lucas Esteves from Santander.

Congratulations on your quarter. The sequence of results makes it clear all your efforts to improve the company. I have 1 question on Used Cars, hatchback inventories went from 72% to 62% showing that the sales mix in the period could be more concentrated on those models and still the average price went up 4.3% quarter-on-quarter. I would like to understand the drivers of price increase. Is it a mix in fact, sales channel, average age? And how you expect the average sales price to be in the fourth quarter, considering that you already have lots of information on the quarter? Thank you and congratulations once again.

Lucas, this is Moscatelli, thanks for attending. Thanks for your questions. Used Cars, average prices. This is connected to 2 main factors. One is what you mentioned, and I did say that during the call, which is Used Cars that were bought at a higher price, especially in the last 1.5 years. So the average being a bit high here. But the profile hatchback, sedans, SUVs, has changed a little compared to last year, but it should be stable at 60% of the Rent-a-Car. So we don't see a huge change given the fleet and the sales of the fourth quarter that we already can predict well. So the average price of the fourth quarter is going to be very close to the third quarter with a mix on 60% of hatchbacks. Another important point is that part of the increase on average prices, and I did mention that in terms of priorities for the future, which is to increase the share of retail sales on the total mix. We did increase it a little this year, but we have much room with the initiatives that we disclosed, opening of stores in car shopping centers to capture cars that we believe today have a wholesale profile but that we can be sold in retail to some consumers. And with that, we are going to have a slightly higher average price and therefore, higher profitability. The difference of prices between wholesale and retail is 10 percentage points. If you remove 6% of SG&A, used to have 4%, which is huge considering the amount of cars that we saw. So we are starting to see the improvement, but most of the benefits will be seen as we direct more cars from wholesale to retail.

Our next question comes from Daniel Gasparete from Itau BBA.

I would just -- most of my questions were answered already, but what has drawn my attention is the Rent-a-Car resilience, impressive volumes, even with the migration to occasional rates, a growing prices. Moscatelli, what do you see in market behavior in terms of resilience? Do you think you have more room to increase rates? And the second question is just to explore what you just said, the breakdown between wholesale and retail markets. This is quite impressive because it seems -- it was very difficult for you to migrate from wholesale to retail. And you did mention the possibility. It's certainly not easy. But can you tell how you're increasing penetration on reallocating sales, why you couldn't do that before? What are you doing now? Is it something different in terms of sales capacity? Because the difference is so high. It doesn't seem logical that you didn't try to do this before. So I would like to know the dynamics now.

Gasparete, this is Moscatelli. Thanks for your questions. I will start with room to increase rates, volumes and how we see that. I think we are still in a process of learning by doing. So we have been testing new tools, new initiatives, new strategies to establish the right price and to have the right mix with the company. And we are learning with our errors sometimes. Now indeed, and you did see that an improvement. I think it was the first time that we had a representative increase in prices and still some increase in volume, although small. So to me, what's clear is that the potential is so huge. And why is that? Because we did a lot of things and the idea of going into more occasional rates, and this is all positive. But occupancy rate is at 72%. For me, it's not optimal. So our major focus for the coming 3 months, which is the fourth quarter, but for the whole of next year is to work to increase utilization rates above 77% with the same mix. And for us, this is getting clearer that it is possible. So because we had so many changes of fundamentally rentals to occasional rentals, which just get a bit hurt in terms of occupancy rates, but this is getting clearer, and it's going to be another level of value. More fleet better prices, better margin, better profitability for the business. Your second question on migration from wholesale to retail sales and why we didn't do that before. We've always been very careful about the profile of cars that we make available at retail stores because it has to be appealing to customers, they have to feel that it is not very old, not to use. And we have some rules in terms of mileage, car status and et cetera. And that was a barrier of what cars we could direct to retail. But then taking a deep dive in the business model, we realized that there is part of the retail market that wants to buy cars with higher mileage. A clear example, the rule is not to sell cars above 50,000 -- 55,000 kilometers. So everything that was about 55,000 kilometers would be wholesale. But we realized that there is a buyer up to 80,000. So we want the sales channel to get to these consumers. So we have this car shopping centers. I don't know if you know them, they are multi-brand car centers with customers is slightly different from our usual retail clients. And that has been going very well and realize that, that can be a sales channel for us to increase our share in retail with cars that until today, we're only wholesale. Just to give you a clear example of our mindset and why we want to migrate. We think it's possible to migrate more cars from wholesale to retail. I think that we have a well stable operation, which helps us think outside the box. We are selling the same number of cars, 25,000 per quarter since the beginning of the year, no huge volatility. So this profile of a more mature stable company brings benefits thinking of constant improvements that we could not consider before. So the combo of all that has brought new actions that we or the sector considered before, and obviously, with benefits to business profitability.

Thank you, Moscatelli makes sense. Just a follow-up to your first answer. When you say price increases, and rental is increasing prices. What is your perception in terms of consumer behavior? It is being more expensive to Rent-a-Car and even the perception of the car itself. Sometimes, they rented a better cars at a better price. And now they are renting worst cars at a worse price. Do consumers have an alternative. If not, they are just accepting the price increases. There is no competition. I don't know. And why your NPS is so strong?

I think this is an excellent point, Gasparete. Everything that we mentioned in terms of results are indeed very consistent, because of 1 priority for us, which is to improve the customer experience more and more. You follow us from close and you probably realized during this period, that the company's main initiatives, especially in the last 12 months have been directed to improve customer experience in many areas, digital, physical stores, POS, et cetera. And that has indeed increased customer loyalty and the customer base. Allied to that, I think that all the efficiency actions that I mentioned have made consumers at the time to choose prefer Movida. This is very clear to us. Now when you think of prices isolatedly, on a trip, you see hotel prices and other alternatives, Uber, taxes, also with increased prices. So you cannot see the Rent-a-Car business isolatedly. When it is part of larger budgets, that is vacations, including all those players. So I think that our market, the Rent-a-Car market is still behind all these other players that make up the budget of a trip.

Our next question comes from Guilherme Mendes from JPMorgan.

First follow-up on Gasparete's questions on the Rent-a-Car. So just to confirm my understanding is that the main leverage would be increased occupancy not necessarily to the extent of decreasing prices. It's just an upside in terms of occupancy. Is that a correct understanding? And thinking of prices that you're passing on. We saw in the Q3, there was a combination of mix and price pass-throughs. Thinking for the future, do you see Vrum to continue passing through prices without changing your mix? And the second question, thinking of 2026. This year was a year that we saw operational improvements, deleveraging, does it make sense to think of '26 as a year that you're going to grow your fleet compared to the numbers of '25?

Gabriel, this is Moscatelli, thanks for your question. Thanks for attending. I'm going to start with the Rent-a-Car business. Indeed, the lever to improve profitability, is very objective in terms of occupancy. We have 72% occupancy this quarter, and I believe we should be between 77%, 78%. That is almost 5,000 cars a day being used. So if you do the math, the potential is huge to improve profitability by increasing occupancy, but prices are not an element not to consider. They have to follow occupancy. We see the prices of brand-new cars going up. So pass-through is something that you have to do to have business sustainability. The whole industry has to continue to pass through prices. because, as I mentioned, the price of brand-new cars is growing, and we have high interest rates in Brazil. So I don't think it's one or the other. We have to address both. As for mix for next year and pass-through prices, I think we should consider the same increases we had for next year with the same mix. I do not see a change or a reason for us to change our mix between monthly and occasional, but the pass-through should be as high as this year. Finally, you did talk about growth for next year with the scenario that we have today, and being very cautious because I think that caution is very valuable at this point. I don't see any reason for us to bring risk to the company. So increased fleet now with the interest rates at the levels that we have today, I think is unnecessary risk. So for now with the visibility I have we are going to continue to direct all cash generation to deleverage the company. I think this is the greatest value that we have, combined with the return on investment capital that we are generating.

Our next question comes from Alberto Valerio from UBS.

Well, at, I have 2 questions also on my side. We are talking about occupancy of your operating fleet but you have operating fleet compared to total fleet. I would like to know if you can reduce this difference a bit. You have reduced in previous quarters. I understand that it's also logistics. Now you have a more stable fleet no major growth for the future, do you think you could decrease this difference between total fleet and operating fleet? And second question on your balance sheet. If you could talk a bit of your plans for the coming quarters and next year. You had a fantastic funding effort in October, a very good rate, what should you expect? You have the supplier lines. You have amortizations for the next year. So if you could give us a bit more color?

Alberto, before starting to answer, I'm going to apologize to Guilherme, I called you Gabriel, but I knew it was you. So my bad. But going back to you, Alberto. Undoubtedly, when we take a look at the company's profitability, we see total occupancy of the fleet. Operating fleet is something that the market follows. But in terms of capital allocation, of course, the best indicator is the total fleet. We did decommission a bit more cars to advance sales and inventory for the Used Car sales. We know that December is not the best month to sell December or January, but we made it so that September and October would be better months. So we want to improve our total occupancy rate, and it comes from these 2 things. Occupancy in sales of Used Cars. But also by increasing the occupancy rate of our operating fleet. Balance sheet. I think Daniel and the team developed excellent work throughout the year. we almost removed all maturities for '26 and a bit of '27. Today, we have approximately BRL 2.3 billion to maturing '26 and we have a pipeline of settlements of BRL 1.9 billion into operations. The market has been very good to us in terms of bank credit. We haven't seen any restriction to raise funds by the opposite and I think that certainly, the performance that we have been disclosing has helped us in raising new funds. So for the end of the year, about BRL 1.9 billion, very well advanced, and that will make us probably clear all maturities for next year, and we start the year already thinking for '27.

Our next question comes from Rogério Araújo from Bank of America.

If you could talk a bit about the recurrence of some items, especially costs. The first PIS/COFINS tax credits, 10.1% in gross rental revenue. So do you think this is coming back to 9.25%? And could you talk about why it increased? And the second question is the line of other costs. When you talk about the breakdown of IRR, it was BRL 13 million. And you have an average of about 30% in the last 2 years. And finally we estimated a gain with bond repurchases of BRL 7 million, if it makes sense and what to expect for the future?

This is Moscatelli. Thanks for attending and for your questions. I'm going to start to answer, if I miss anything, just let me know. PIS/COFINS tax credits. In the end of last year, we had a corporate restructuring within Movida subsidiaries to put together 2 tax payer numbers. To have a better tax structure and have more tax efficiency, as you're seeing now. So along '25, you saw credit slightly higher than last year, but it was because of the corporate change we had last year. Two taxpayer numbers, 1 that was taking credit, the other that was paying COFINS taxes. So putting together these 2 subsidiaries, these 2 taxpayer numbers, brought those benefits throughout '25 and for the future. The second point was the others line. Well, this is a line that traditionally has some volatility some bonus reversal, some leg issues in the first quarter is at 36%, then 1 than 13. You have certain volatility but really not quite representative. If you want to have a bit more disclaimer of what we have inside, we can talk about that later on. And interest on capital, I think I did mention that. Indeed, we were a bit behind in some initiatives to improve our tax base. And this is one. We always paid out dividends, and we didn't enjoy the benefits of interest on capital. As our competitor does. So we are going to do everything through interest on capital. And with that, we are going to have a rate much closer to the competition and well beyond what we had. We paid 32%, and now it's going to be between 18% and 20%. So this is what you're going to consider for the fourth quarter and the coming quarters.

Thank you, Moscatelli. Just potential buyback. We had an average in face value. We got to BRL 24 million of potential gains in the quarter. Does it make sense? And is the company continue to buy back given the opportunity. And if I may, a follow-up on PIS/COFINS tax credits, you talked about the corporate change, putting together 2 taxpayers. When the line is above 9.25%, you create tax credits that you don't use? Or do you use it for income tax or any other tax that is not PIS/COFINS.

Bonds. The amount does not make much sense. The third quarter was the 1 that we least bought back in the domestic and foreign markets. because the spreads were very decreased in the secondary market. In the beginning of the year, the spread was much higher. We bought more in the third quarter, they are almost at the price of issuance. So the amount does not make sense. We can talk about that later on. But it was the quarter with the less buybacks in the year. Second, we do use yes, this credit even when it is about 9.25% , we have credits on maintenance, inputs, depreciation, and we enjoy this benefit. What is credit receivable, but because cars have a higher average price, we can enjoy everything. Again, if you want a bit more color, we can share that with you. But thank you for your questions that are very good to clarify everyone's questions. Thank you very much.

This concludes Movida's earnings call for today. I'm going to invite Mr. Moscatelli, for his closing remarks.

Well, I would like to close our conference call this quarter. And I could not fail to start thanking everyone that works me on the day to day and are making this company better every day that are changing the perception of our services, which is the basis of everything that we shared with you today. In addition, I'd like to reinforce that we are very much focused in discipline of execution. This has brought benefits to the company in all business lines more stable sales volumes in Used Cars, Used Cars stable margins, no pressure to sell or buy cars. So this new company has a lot more stability and has brought a much clearer view of levers yet not explored to increase value. And this is the company's priority as it was in last years and will continue to be in the fourth quarter and year of '26. So once again, thank you very much the company's law is available to answer your questions. The IR team is fully available and see you in the conference call for the fourth quarter. Once again, thank you very much, and have a good day.

This concludes Movida's earnings call for today. Thank you very much for attending, and have a good day.