T4F Entretenimento S.A. ($SHOW3)

Good morning, everyone, and thank you for participating in Time For Fun's earnings conference call for the first quarter of 2026. The first quarter is traditionally the period with the lowest relative weight in the annual results for our industry. Even so, we started 2026 with relevant deliveries across our main business fronts. In the Live Music segment, we held the Phonica Marisa Monte & Orquestra tour in the Northeast with performances in Recife, Salvador and Fortaleza. The expansion of the tour to the region was a consequence of the strong performance observed in the Southeast region in 2025. And once again, we had an excellent reception from the public with box office and critical success. At Teatro Renault, we hosted Ópera do Malandro, a work by Chico Buarque, which marks the beginning of the 2026 theater season and reinforced the relevance of venues and ticketing operations for the company. For the coming months, Shrek the Musical is playing at Teatro Renault and new performances of Minha Vida em Marte, starring Monica Martelli are scheduled for the second half of the year in addition to other contents under planning. Let's now comment on the main financial highlights of the quarter. On Slide 5, we highlight operational performance. During the first Q of '26, we held 3 live music events corresponding to the performances of Phonica Marisa Monte tour in the cities of Recife, Salvador and Fortaleza, with 52,800 tickets sold. In addition to the promoted events, Teatro Renault hosted Ópera do Malandro with 42 performances and more than 55,000 tickets sold, contributing to the continuity of the theater operation at the beginning of 2026. On Slide 6, net revenue in the first Q of '26 totaled BRL 33.1 million, a growth of 44.4% compared to the first quarter of '25. The increase was mainly driven by the resumption of the event promotion line, which totaled BRL 13.3 million in the quarter due to the Phonica tour in the Northeast. In ticketing, food and beverage, and venues operation, net revenues was BRL 16.7 million, a decrease of 11.6% compared to the first quarter of '25, whose comparison base benefited from the performance of the musical Wicked at Teatro Renault. Sponsorship net revenue totaled BRL 3.1 million, a decrease of 24.6%, reflecting the calendar and mix of sponsored content in the period. On Slide 7, we see gross profit, which reached BRL 8.3 million in the first Q of '26, a growth of 107% compared to the first Q of '25. Gross margin was 25%, an increase of 7.6 percent points compared to the same period of the previous year. This result reflects the contribution of the Phonica tour and the continuity of venues and ticketing operations. Still on Slide 7, operating expenses totaled BRL 7.8 million compared to BRL 9 million in the first Q of '25, a reduction of 13%. The improvement reflects the company's ongoing efforts in efficient resource management and in the pursuit of greater operational efficiency. Moving on to Slide 8. EBITDA in the first quarter of '26 was positive at BRL 2.2 million compared to negative EBITDA of BRL 3.4 million in the first quarter of '25, a positive variation of BRL 5.6 million. EBITDA margin reached 6.7% in the quarter compared to a negative margin of 14.8% in the first quarter of 2025, an improvement of 21.4 percentage points. On Slide 9, we see the financial results. Net financial result was negative at BRL 6.2 million in the first quarter of '26 compared to a negative balance of BRL 4.8 million recorded in the first quarter of '25. The variation mainly reflects the higher negative impact of exchange rate, monetary, and hyperinflation effects in the period without changing the company's operational dynamics. On the other hand, the balance between financial income and financial expenses showed a relevant improvement, moving from negative BRL 7.5 million in the first quarter of '25 to negative BRL 3 million in the first quarter of '26, mainly driven by the reduction in losses from swap operations, which decreased from BRL 7 million to BRL 2.8 million. On Slide 10, we analyze net income. The company recorded net loss of BRL 4.1 million in the first quarter of '26, a 66% reduction compared to the net loss of BRL 11.9 million recorded in the first quarter of '25. Net margin ended the quarter at negative 12.1%, an improvement of 39.8 percentage points compared to the same period of the previous year. On Slide 11, working capital ended the first quarter of '26 positive at BRL 3 million compared to negative BRL 2.8 million in the first Q of '25. The variation reflects a sharper decrease in current liabilities than in current assets in the annual comparison. Regarding the company's cash position, as shown on Slide 12, we ended the first Q of '26 with gross cash of BRL 62.4 million and total debt of BRL 34.9 million resulting in net cash of BRL 27.5 million. Operating cash flow was positive at BRL 9.1 million in the first quarter of '26 compared to negative BRL 13.8 million in the same quarter in 2025, an improvement of BRL 22.9 million, driven by the receipt of proceeds from ticket sales of the Phonica tour. Cash flow from financing was negative at BRL 13.3 million compared to negative BRL 9 million in the first quarter of '25, reflecting the payment of principal and interest installments related to contracted loans. Total debt reached BRL 34.9 million, a reduction of 13% compared to the first Q of '25 and 30% compared to the 4Q of '25, reinforcing the company's discipline in cash management and debt profile. Now we will present the pipeline. In live music, after the completion of the Phonica tour in the Northeast, the company continues to evaluate new shows and partnerships for the 2026 calendar. In the Family and theater segment, Shrek the Musical remains in season at Teatro Renault with performances scheduled until July. For the second half of the year, new performances of Minha Vida em Marte, starring Monica Martelli are planned in addition to other contents to be announced to the public soon. We remain attentive to the opportunities in the industry and committed to delivering high-quality experiences to the public, our partners and our shareholders. I reinforce our commitment to generating value in a sustainable way with financial discipline and focus on the execution of relevant content. We ended the first quarter with operational improvement, positive EBITDA, and the maintenance of a positive net cash position while keeping a content agenda under development for the next cycles. I thank everyone for their trust and reaffirm our purpose of bringing people together through exciting experiences that celebrate life.