Movida Participações S.A. ($MOVI3)

[Interpreted] And welcome to Movida's conference call to discuss the results regarding the Fourth Quarter of 2025. Today, with us, we have Gustavo Moscatelli; CEO; Daniela Sabbag, CFO and IRO; and Camila Francischelli, Director of Investor Relations. This event is being streamed on Zoom and can be reached at the company's website at ri.movida.com.br. [Operator Instructions] We would like to remind you all that today's presentation will be in Portuguese with simultaneous translation into English. [Operator Instructions] Before we begin, we would like to let you know 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 occur. General economic conditions, industry conditions and other operating factors may affect the future performance of the company and lead to results that will materially differ from those in the forward-looking statements. The results to be discussed in this call are presented in the earnings release and the financial highlights spreadsheet available on the company's IR website. Now I will turn the call over to Mr. Moscatelli. Mr. Moscatelli, you may go ahead.

[Interpreted] Good morning, everyone. Welcome to Movida's conference call on the fourth quarter '25 and full year '25. I would like to begin by sincerely thanking all of our people, more than 6,000 team members for their dedication and execution in delivering these results. I'm very proud to close the year presenting this level of operational excellence, which has positioned us as a leader in [ value ] creation in Brazil's car rental sector. I'll start with Slide 3, showing the key indicators of this new phase of Movida. Customer satisfaction is at the core of our strategy as we believe it is basis the real sustainability and long-term continuity of our positive results. We highlight that in '25, we were recognized as the best car rental service by the Opinion Box Award for the first time. We also achieved the highest NPS in the sector, confirming the quality of our service and customers' preference for Movida. This strengthening the perception of value of our brands translated directly into market share gains. In 4Q '25, we led market share growth in the sector with Rent-a-Car rental days increasing by 12.3%, which is truth of our operational efficiency and based on the capturing of a combined demand and the increase of utilization rates. It is possible to see also that in our EBITDA margins, where once again, we were a benchmark in the sector in '25. We closed the year with a 67.4% margin in the rental car and 75.9% in GTF, supported by price adjustment and disciplined cost management. The discipline in which we executed our strategic plan has led us to become the company with the highest return on invested capital in the sector with a return on invested capital of 16.6% in '25, the highest in our history. So we are now at our best moment. And what excites us the most is that we see multiple levers to further enhance value creation for our stakeholders in the coming years. I'll start now with Slide 4, where we bring the main foundations of our strategy, which is to deliver the best services to our customers. Our focus is to create services to anticipate the needs of our customers with operational efficiency to capture value. We think of how we can join the customer journey and not follow -- for him to follow a specific flow. In this way, in addition to improve their experience, we have the self-service totem, which makes a digital experience with physical stores, and that has been very much used and complemented by customers. We are now at 23 stores, 35% of the contracts open at the start. In the next 6 months, -- we are going to expand to another 18 stores. It's important to say that we are the only company in the sector with this kind of solution. We also have an option with Movida Express, 100% digital. This is for a customer niche and more common also in other rental car companies. I would just like to say that our strategy is based to provide the best services with the best operational efficiency in that each customer has a customized experience. These initiatives and our brand strength resulted in a record number of new customers in '25, 676,000 people choosing Movida for the first time. Now on to Slide 5. We bring the continuous evolution of our yield and improvements in all operating indicators in the rent of our segment since '23. This performance reflects pricing discipline, a better product mix and Movida's ability to grow demand without compromising profitability. As you can see, we combined to growth in the number of rental days with discipline and consistent improvement in operating indicators. As I mentioned, the number of rental days increased by 12%, and utilization rose almost 1 percentage points compared to 4Q '25. Rent-a-Car rates reached BRL 158 in '25, up 13% compared to '24, maintaining a solid expansion trajectory in along the year, what we believe is also sustainable for '26. Now on to Slide 6. We bring another quarter of sequential records in net revenue, EBITDA and EBIT. The operating performance along the year led to a consistent transformation of the main profitability indicators in '25, we reached a record net revenue of BRL 14.7 billion, EBITDA record of BRL 5.7 billion, record EBIT of BRL 3.3 billion and net income of BRL 318 million. As a result, we delivered the best return on invested capital in our history, 16.6%, up 4.3 percentage points versus '24 and 8.6 percentage points compared '23. It's important to highlight the breakdown of these indicators when we see the rental business as our core operation. Operating fleet grew 6%, while net rental revenue increased 19%, reaching the highest level ever recorded by the company. In the same period, rental EBITDA and EBIT grew 22% and 24%, respectively, both at record levels. The level of operational efficiency continues to support value creation for shareholders, reflecting these results. Moving on to Slide 7. I'd like to highlight the stability of our operation as an important share of monthly rental cars in car rented in Rent-a-Car and GTF. The recurring revenues grew 51%, reaching 73% of the company's total revenue for '25. Capital invested in recurring market increased 45% in the period, now 78% of total capital allocation. The increase of share of recurring revenues above capital invested shows the predictability of our results reduces operational volatility and gives more stability to our business model. Now I'm going to go to Slide 8, where we bring Movida's consolidated financial results. Net revenue totaled BRL 3.7 billion in 4Q '25, up 12.6% compared to 4Q '24 and BRL 14.7 billion in '25. Rental revenue grew 17.1% in the quarter. It's worth noting that our fleet increased only by 4.5% year-over-year, demonstrating productivity gains in our operations. EBITDA reached BRL 1.5 billion in the quarter, expanding 19% almost 20% compared to the previous year. And rental EBITDA grew even more 20.2% compared to the previous quarter and 22% year-over-year. As I mentioned, EBITDA margins continue at record levels. EBIT in the fourth quarter '25 was BRL 851 million, up 24.2% compared to the same period last year. With this, we raised the company's results to a new level, closing the year with net income of BRL 102 million in the quarter, up 64.5% and BRL 318 million for the year, an increase of 37.5% compared to '24. On Slide 9, we present the continuous work and the company's continuous efforts and improvements implemented reflect return on invested capital. ROIC reached 16.6% in '25, up 4.3 percentage points compared to '24 and 8.6 percentage points compared to '23. The performance highlights the continued expansion of value creation for shareholders, exceeding the cost of debt by 5.8 percentage points and representing the highest return ever recorded by the company. This evolution combined with ongoing initiatives such as price adjustments, yield improvements, continued productivity gains in used cars and discipline in capital allocation and debt management positions us on a sustainable path of ROIC spread expansion. Now on Slide 10, we bring the disciplined execution of our strategic plan. Over the past 2 years, all operational and financial targets communicated to the market through guidance have been fully delivered, reinforcing the predictability of our business model and the credibility of the commitments as taken before the market. This strategy enhances the trust of our market and positions Movida to continue in a sustainable manner in the coming years. On Slide 11, we bring the new net income guidance for the first quarter '26. The projection reflects the consistent improvement of our operating indicators and service quality, which has been driving increasingly solid results. For the quarter, we estimate net income between BRL 110 million and BRL 130 million, which represents a growth considering the midpoint of 54% compared to the same period of the previous year and 71% compared to the market consensus for the quarter. We believe that with this, we'll have the best quarterly results of the 5 years of the company. Now I will turn the call over to our Director of IR, Camila.

[Interpreted] Thanks, Moscatelli. Good morning, everyone. Continuing the presentation, we go to the highlights by business segment. On Slide 13, we see the Rent-a-Car segment highlights. In the first chart, net revenue reached BRL 979 million in the quarter, growth of 19.8% compared to the same period last year. The average operational fleet grew only 9.2% in the same comparison, reaching 97,000 cars. During the quarter, we had the highest revenue per car in the company's history, BRL 3,704 per month, an increase of almost 10% compared to 4Q '24. In '25, revenue per car was BRL 3.493, up 8.9% compared to '24. EBITDA totaled BRL 649 million in the quarter, up 21.7% year-over-year. EBITDA margin remained at robust levels, reaching 67% in the period, up 1 percentage point compared to 4Q '24. As a result, EBITDA per car continued its upward trend, reaching BRL 2.239 per month in the quarter, up 11.4% year-over-year and BRL 2.125 per car in '25. Going to Slide 15, we bring our operational indicators for fleet management and outsourcing. We closed 4Q '25 with a total fleet of 129,703 cars, an increase of 1.9% compared to 4Q '24. The future revenue backlog, which considers only contracts already in operation totaled BRL 8.4 billion in 4Q '25, up 22.8% compared to the same period last year. On the right, we highlight the continued positive trend in yield for new GTF contracts. We closed 4Q '25 with an increase of 0.2 percentage points with a yield of 3.5% a month. This reflects stronger pricing aligned with the high risk profile of the clients onboarded through '25. On Slide 16, we bring the financial results for GTF. Net revenue reached BRL 1.1 billion in the quarter, up 14.9% year-over-year, while the operational fleet grew only 1.9% over the same period, as we have already mentioned. In '25, net revenue totaled BRL 4.1 billion, representing a 21.9% increase compared to '24, while the average operational fleet grew only 6.3%. We, therefore, recorded another sequential increase in monthly revenue per car, reaching [ 3,123,000 ] in '25, up 12.3% year-over-year. In '25, the same increase was 14.2% compared to '24. EBITDA in 4Q '25 grew 18.7% year-over-year, reaching BRL 812 million and increasing the segment's EBITDA margin to 74.9%. In '25, EBITDA totaled BRL 3.1 billion up 23.9%. As a result, EBITDA per car also showed strong growth with an average of BRL 2,086 per month, up 16.5% year-over-year. In '25, the same -- the increase was 16.6%. Now we go to Slide 18, where we show our used vehicles indicator. We continue to deliver a healthy performance with sales of 22,200 cars in the quarter. Thinking of seasonality, but we have maintained a stable quarterly sales volume along the year, which reinforces the material maturity and the scale of the company which drives operational efficiency. In '25, altogether, we sold 97,300 cars. Net revenue was BRL 1.6 billion in 4Q and BRL 6.8 billion in 2025. Average price increasing from BRL [ 67,300 ] to BRL [ 714,000 ] for the full year. EBITDA margin remained stable over the past 6 quarters, 1% in 4Q '25. It's important to note on this slide that the continued volume of sales volumes over the last 8 quarters ensures that the average fleet age remains at appropriate levels. Finally, SG&A, we see a reduction of 1.7 percentage points in the quarter from 6.7% of revenues in the 4Q '24 to 5% in 4Q '25. In the whole year, there was a decrease of 0.3 percentage points from 5.5% to 5.2%. Continuing on Slide 19, we bring the evolution of the FIPE table for our car inventory. In December '25, we had an average monthly depreciation of 0.4% compared to 4.7% in '24, clearly showing the accuracy of our purchasing mix and asset life cycle management. Also worth highlighting is the new sales channel through the auto shops that expands our geography and captures more customers at retail. In this spaces, we have a complementary of our physical network. We already have 17 auto mall locations, and we wants to open more until May '26. Now on Slide 20, we show our depreciation rates. In rent-a-car, the level was kept at BRL 7,000 per year per car and in GTF, BRL 11,000 per year per car with the same percentage compared to the acquisition level. On the right of the slide, we highlight the performance of used vehicles in the last 2 years. We have already turned over 99% of RAC vehicles since 4Q '23. GTF, 68% of cars that we had in '23 were also sold. The EBITDA margin of the sale of the assets was positive at 1.3% in the same period. The set of data reinforce the accuracy of residual values and Movida's asset life cycle management. Now I will turn the call to our CFO and IRO, Daniela Sabag.

[Interpreted] Thanks, Camila. Good morning, everyone. Moving on to Slide 22. We start talking about capital structure, liquidity and debt management, one of the key pillars of our financial agenda through '25 and early '26. On this slide, we bring Movida's debt trend and the details of funding transactions executed in the period, primarily aimed at strengthening liquidity and extending the debt maturity profile. Here, it's important to highlight the strengths of the funding raised in the first 2 months of '26, totaling BRL 3.5 billion, completing the company's funding needs compared to '26 maturities. Among the transactions shown on the slide, we highlight the $235 million funding with IFC, equivalent to approximately BRL 1.3 billion with IFC's on funding as well as the participation for international banks that are starting relationships with Movida further reinforcing our access to funding. The set of transactions represent a significant capital reinforcement, strengthening the company's balance sheet and strategic flexibility. Gross debt in 4Q '25 added up to BRL 18.1 billion, net debt BRL 15.5 billion at an average cost of CDI plus 1.8% a year and average maturity of 4.1 years. On Slide 23, we bring our debt leverage and supplier payment schedule indicators. On the left, our leverage measured as net debt to EBITDA reached its lowest level in the past 5 years at 2.6x EBITDA in 4Q '25 continuing a downward trend and standing 0.5x below 1Q '25. If we analyze 4Q '25 results, leverage would be 2.5x. We also bring the evolution of debt and fixed assets comparing year-end '24 and '25. While gross debt decreased roughly BRL 1 billion, that is 5.2% compared to '25, Fixed assets increased by 8.1%. In the supplier payment schedule chart, we see a balance of BRL 5.5 billion in '25 and the expected quarterly disbursement for '26. Important to highlight that these amounts are very well distributed throughout the year with payments to OEMs extending through 4Q '26, reflecting better improvement in payment terms. Now I will turn it back to Gustavo Moscatelli for the closing remarks. Thank you very much.

[Interpreted] Thanks, Daniela. Before going through our priorities, I would like to highlight that Movida is at its best moment. We are entering '26 with even more levers to enhance customer experience and operational efficiency, resulting in an increasingly strong business model. With more personalized journeys, increasingly integrated processes, the company reinforces its ability to deliver sustainable value and capture meaningful profitability opportunities. An example, we started the year already innovating. Today, we are the only company in the sector offering customer services directly in airport boarding areas. The rationale here is to be present at a key moment in the customer journey where there is time to address the next step of the trip with convenience and peace of mind. Now talking about our strategic priorities. I'd like to highlight the following: First, continued price adjustment across both rental segments with opportunities across multiple markets. Structural reduction in maintenance costs through service verticalization, higher rental car utilization rents, driving revenue growth on the same asset base and stability in used vehicles margins and volumes supported by a mature operation and new opportunities in sales, channels and retail. These initiatives will support improved cash generation and deleveraging, sustaining our profitability trajectory. We believe that we are in a unique moment, leading value creation with our operations and comfortable with the scale we have built confidence in our team and certain that we will once again surpass our own targets this year. To our customers, shareholders, partners, suppliers, thank you for your trust. And let's open for the Q&A session. Thank you all very much.

[Interpreted] [Operator Instructions] Our first question comes from Andre Ferreira from Bradesco BBI.

[Interpreted] Congratulations on your results. I have 2. First, talking about the guidance for the first quarter. What's the main assumption here in terms of volume and margin expansion GTF, Rent-a-Car? And what is the effective rate you are assuming? My second question is the volume of used cars. The pace decelerated a bit in recent quarters, but at a level that enables you to renew your fleet. So what is the difficulty in selling cars? And how has this deteriorated along the year? And what is the volume of sales per quarter that you wish to get to in 2026?

[Interpreted] We had the significant growth in volume with prices at the same level of growth that you saw in the fourth quarter that in Rent-a-Car. And the other operations are stable, used cars with stable margins and volumes. And we also had the growth you saw in this quarter. With this, we adopted the strategy of releasing those volumes and also a preview and estimates of what we want to deliver in the first quarter, given that January and February have already been delivered with results above expected. As for the assumptions of each business, we did not release that information. But we consider payments on interest on equity, about 20% to 25%, stable depreciation. We do not see a movement of depreciation write-down, although there are operational improvements that may even reduce depreciation, but not for now, that is we're not expecting that. And the main driver was performance way above expected in the Rent-a-Car in the volume, gaining market share and in prices continue to be adjusted as you saw last year. Used cars I have a different interpretation. We have an operation, if you look at the company as a whole, that is stable in terms of volumes. We did not have a growth of cars or just 2%, so stable operation and the volume of used cars that we have to sell every quarter to keep the fleet age, which is about 10 months now, which is very healthy, in my opinion, is about 23,000 to 25,000 cars. Obviously, there is seasonality in the fourth quarter because of December has a lower volume of car sales, but that is something everybody knows. But apart from that, I do not see any point of attention, quite the opposite. I think it is a strengths in our current business model. No challenge to increase used car sales. Although we see a trend of a better market, we still have credit restrictions, high interest rates. So we -- not having to increase the number of store and not to have an additional sales effort is a strengths right now.

[Interpreted] Our next question comes from Gabriel Rezende from Itau BBA.

[Interpreted] Congratulations on your results and the guidance for the first quarter of the year. I'd like to have a bit more information on your presentation, especially the rent-a-car strategy. We were surprised by an increased price adjustment. You talked about gaining market share. So I'd like to see how the company is focusing its strategy, more focus on occasional. How much increase in rent-a-car have an apple-to-apple effect more than a changing mix. So how could we think about the pricing in '26? Are we going to have more volumes, more prices for '26, higher utilization rates just for us to try and enhance our models. And in used cars, it seems that you are at a very healthy level. So I would like to understand the dynamics of new car and used car prices. I know that you have operating controls to decrease depreciation, but I would like to know more of the exogenous effects that is how the industry is behaving in terms of new and used car prices.

[Interpreted] Gabriel, thanks for your questions. Thanks for joining us today. Rent-a-Car strategy. We adopt a strategy of allocating more capital on occasional rentals because they are more susceptible to the increase in prices that we had in the last 2 years. And that brought rental car profitability and the companies as a whole to a new level, and you saw that from close. But regardless of that, last year, we operated on a lower utilization rate, 72% to 73%. The strategy now is trying to get to the optimal mix, which is not far from what we have today, but the optimal mix between monthly and occasional products to increase utilization rates to close to 78% or whereabouts. And I think the first quarter will show that. Part of the guidance already reflects an improvement in this indicator. Again, we are still comparing apples-to-apples. That is the mix has not changed, but we do see an opportunity to improve efficiency at the front end with a higher share of occasional products. We have seen some movement in terms of monthly products that are more adherent to price increases. So we might have a higher exposure to monthly rentals this year. But in the fourth quarter, I think that was just a perfect balance between occasional and monthly. Used cars, we do not see any price behavior out of expected for new or used cars. New car prices are following inflation rates, especially perhaps a bit above inflation and used cars depreciation very much in line with what we had in the past 2 years in the Rent-a-Car between 8% and 9% and GTF around 10%. So no surprises so far, although everybody has the expectation that, that should improve once the interest rates go down and the liquidity of used cars increases and that can retrofit the whole asset chain and reduce depreciation. But so far, if you think of prices purely and isolatedly, I do not see any surprises.

[Interpreted] Our next question comes from Alberto Valerio from UBS.

[Interpreted] One more point on used cars. I would just also like to talk about your debt management strategy, which has been very good, and congratulations to the whole team. But in used cars, Rent-a-Car depreciation is close to 9%, 8.7% in our model. On the average fleet price and GTF close to 10%. Considering the prices that you're selling today and when you bought 22 months ago in the Rent-a-Car or even more than that in fleet, can I assume that you are considering a worsening in the spread, which is today between 6% and 7%. So you're depreciating at 9%, you are worsening the spread. And in fleet, we see close to 28% in purchase and sale, the car that you bought and what you're selling today. So can we consider there is going to be an improvement in the sale of fleet cars and Rent-a-Car sales a bit worse than what you bought before. Is that correct? And in that management, what is the cash cap for the year? We saw the movement of the BNDES that is going to invest in Simpar, but also at Movida and Vamos. We have the suppliers line that. So what is the cash gap for the year? Is it closed?

[Interpreted] Thanks for your questions. Thanks for joining us today. I'm going to start with used cars/ depreciation. I see depreciation rates at the Rent-a-Car and GTF segments is stable, given not only what I mentioned in the previous question about the prices per se, but also because of other factors, and I could not fail to mention the stability of the sales volume, and that brings us control of residual prices a lot more because we don't have the pressure from sales. And I think there are also important initiatives going on, like the opening of a new retail channel that can be quite surprising and bring an even higher percentage of retail sales, which will retrofit depreciation leads to lower depreciation rates. So in this case, I do see positive signs compared to what we released the year before last and last year, that is 8 to 9 in the rent-a-car and 10 in GTF. The gap of the renewal amount is something that I see in a different perspective because in GTF, you have a very long cycle, then you have a much longer gap. But in the rent-a-car, we changed the fleet mix. We went from 78,000 to 85,000. So naturally, when you compare the same car, you see the gap has not increased. It is a mix strategy that was adopted. And I think now we have just the right mix. You saw rent-a-car volumes growing up and prices going up as well. For your second point with regards to the debt, we released a material fact in the beginning of the year, showing that we indeed have completed all our funding needs for '26. So the cash cap for this year is 0. But we had new funds like the IFC operation that really brings a certificate for the company in terms of governance, long-term view. I think it's very important, $235 million, a very long-term operation. And together with that, it shows that for this year, we don't have any more homeworks to do in terms of funding. The amount that we have for suppliers, almost BRL 5 billion is naturally paid with cash generation from the rent-a-car segment. And also the sale of used cars, about BRL 1.7 billion, BRL 1.8 billion per quarter. So we are very much in line with that. And I think there is an additional point that is very important in terms of capital structure, which is the transaction with the BNDES that you mentioned, which can bring even more stability and strength for the company. And naturally, the consequence of that will be a reduction in the average cost of debt and marginal debt, which will bring in terms of value creation, higher profitability from now on.

[Interpreted] Our next question comes from Guilherme Mendes from JPMorgan.

[Interpreted] Two points, a follow-up from the previous question, thinking of capital allocation in a bit more encompassing way. If you think of the money that is coming to the company, the [ non-need ] to add to your liability management, how do you want to allocate your marginal capital for fleet renewal, deleveraging, payout of dividends or interest on equity? How do you see this along the year? And also second question about GTF. You talk a lot about rent-a-car, the increase in utilization rates. But how about GTF? What is the profile of growth although a bit more marginal than the rent-a-car, thinking of the traditional GTF and the long-term rentals for individuals. So if you could give us an outlook on the GTF segment, that would be much appreciated.

[Interpreted] Guilherme, thanks for your questions. Thanks for joining us. I'll start with capital allocation. Last year, we adopted the strategy of prioritizing capital allocation of all cash generation in the year to reduce the company's leverage. And you followed quarter-on-quarter this trend, and we got to the lowest leverage level of the company in the past 4, 5 years. So this year, the strategy continues. We do not want to expand the fleet. Of course, we have a renewal CapEx, but all the surplus will continue to be allocated to reduce company's indebtedness because indeed, we are still in an environment of very high interest rates. Even with the downward trend, it's still an average interest rate that is quite high. So the best allocation now is to reduce company's indebtedness. As for the GTF profile, for now, when you see the numbers of our results, Basically, growth in GTF comes from traditional GTF that is corporate rental and rental also to state one/listed companies. And also, we invested a lot in structuring teams, processes, technology to create a product that is operationally healthy if you think internally. And as of now, we are going to adopt a more go-to-market strategy to grow the segment because we think there is a huge avenue of growth. So growth profile was more for the traditional more corporate segment. But from now on, we might even have an additional disclosure of the growth of what we call the subscription cars for the coming quarters and years.

[Interpreted] The follow-up. When you think of the subscription cars compared to the traditional GFT are the profiles of ROIC spread and profitability very different? Could we have an increase of these indicators as we increase rentals for individuals in the long term?

[Interpreted] Yes. The ROIC spread profile of subscription cars is higher than traditional GTF segment because in subscription cars, you can include all the benefits that you have because of the scale that we have today, including the cost of capital of the company vis-a-vis an individual, which is much lower, of course. So when you consider all that, when you compare it to our company, even a smaller company, the ROIC spread is much higher. Now what's important is even without not considering an expansion in the subscription car segment, we already have contracted numbers much bigger than last year. If you take a look at the company's backlog, we had in the end of '25, 3.2% yield in '24, 3%. And now we are going to 3.5% contracts already closed and the results will show in '26, '27. So even without subscription cars, there is work for adjusting prices in a traditional GTF segment that will bring profitability that was not seen in '25, but will be seen in '26.

[Interpreted] Our next question comes from [ Luisa Cruz ] from Stoxos.

[Interpreted] Congratulations on your results. The whole Movida team. I have 2 questions. The first, I would like to know little more about margin gains. When you talked about taking a view that you're going to capture in '26, does that tend to be followed by margin gains? So a bit more color on that. And the other question is about the increase of yields. Why is that? Is it because you have low competition because you are gaining more from the sale -- the purchase of cars, OEMs giving you better opportunities? How can I see that? And what is the trend for the coming quarters?

[Interpreted] Thanks again for your questions and for joining us today. It's very clear to us that gains that we had in margin and gains that are expected for the future as well as gains in yields, they are the result of the work and the pricing strategy that we have adopted in the last 2 years. We indeed paid very much attention. We invested time and money to structure our team, adjust our prices and pricing became an area that is one of the most strategic areas in the company. And I monitor that on a day-to-day basis. And indeed, whenever we take a deep dive and we do that recurrently, we see more opportunities in terms of pricing because this is a business with huge granularity. You have to have the right price of the car at the right date with the right number of daily rentals, all that throughout Brazil, considering seasonality and everything. So it is very well done work, but we still have more opportunities ahead. So we do expect gains in yield for '26 because we are indeed very much focused on pricing. And together with that, naturally margin gains. But margin gains have another important lever, not only prices compared to the same price of the same quarter last year, but which is the increase in utilization rates. As I mentioned before, we were at about 72%, 73% utilization. And even if we couldn't increase prices, but we went up to 78%, we would have a substantial increase of yield profitability and margins. But again, I will say that again, price increases are very clear for this year as well as an improved efficiency to increase utilization rates, which I mentioned was one of the drivers for our guidance in the first quarter.

[Interpreted] Our next question comes from [ Samuel Alves ] from BTG.

[Interpreted] My question is about used cars margins. Do you have any impact in 4Q because of the IPVA program, if you advance the payments? And how do you see the margin in the first quarter because of this program of free IPVA?

[Interpreted] I did hear the beginning of your question, but your audio was a bit choppy. So could you say that again?

[Interpreted] Just to know if you do expect an impact of the free IPVA program in the first quarter on your used cars margins.

[Interpreted] Let me talk about used cars and the point you brought. Thanks for your question. We did not see an impact in the market, as you mentioned, and as another company mentioned. It was almost business as us for us. You saw the volumes if you compare the fourth quarter compared to the fourth quarter of last year was even better. So I do not believe that the IPVA program was a driver of volumes. it might be a one-off action, but not structurally, I don't think there was a change. Margins were stable, and it continues like this in the beginning of this quarter. That was not a point that really moved the market. And for us, you saw the numbers, no change.

[Interpreted] That concludes Movida's earnings call Q&A for today. I would like to invite Mr. Moscatelli to proceed with his closing remarks.

[Interpreted] Well, I'd like to close our call for the year of '25, thanking all Movida's employees that work with me every day to make this company be better every day. I'd like to thank all investor market analysts to join our call, the trust of our shareholders and controller shareholder, suppliers. And the message is we are very happy with the company's performance in '25. We did change levels, and we reached a new level of maturity in the company as a whole. Today, I feel that I'm the CEO of a much more mature company, which brings me the confidence of managing the company on the day-to-day and looking into opportunities in this market that is still very recipient in Brazil. And what I would like to say is that what we see ahead, and I think the guidance of the first quarter supports that is very encouraging. We are still in an environment of high interest rates, but the results of the first quarter with an interest rate much higher than last year grew more than 50% year-on-year. And we see that as an exponential increase throughout the year. So everything that we have done and there's so much under development. We talked about increased sales in retail with a new used car channel. Verticalization of maintenance. So all that has not reflected in the results of '25, but are very important levers for the results of '26. So I close the call thanking everyone for joining us and leaving you the message that '26 indeed is a year that we expect to develop the company in a sustainable manner, looking into the long term, but watching the results of the short term from close.

[Interpreted] Well, that's the end of Movida's earnings call. Thank you very much for attending, and have a nice day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]