By Brazil Stock Guide – Movida is doubling down on price increases as its main lever to defend profitability in an environment still dominated by high borrowing costs and expensive vehicles. CEO Gustavo Moscatelli told analysts that pricing power has become structural to the company’s operating model: “The sector needs to keep passing prices on, given where interest rates are and how car prices keep rising,” he said during the 3Q25 call.
Record pricing and resilient demand
The company’s average daily rate rose to R$159, up 12% year over year, while the monthly rental yield reached 4.3%, the highest in Movida’s history. More strikingly, both prices and volumes rose together — something rare in Brazil’s competitive car rental market. Digital convenience has been key: 10 stores now use self-service kiosks that open contracts in just two minutes, supporting an NPS of 95%.
Managing costs and depreciation
Moscatelli said the depreciation rate per vehicle remains stable, but nominal costs rose as the company renewed its fleet with higher-value cars. To prepare for the seasonally strong final quarter, Movida front-loaded purchases of sedans and SUVs, balancing product mix and cash control. “We’re not seeing pressure on depreciation, but the average ticket has gone up due to inflation in car prices,” he explained.
Deleveraging before expansion
Financial discipline remains central. Movida’s net leverage fell to 2.7x EBITDA, the lowest in five years, and should decline further to between 2.6x and 2.8x by December. With R$3.3 billion in cash, the company has full coverage of maturities through 2026.
CFO Daniela highlighted recent bond rollovers that extended debt duration and reduced the average cost to CDI + 1.9%. “With interest rates where they are, adding more cars would mean adding unnecessary risk,” Moscatelli said.
Utilization and yield go hand in hand
Rather than expanding the fleet, Movida aims to raise fleet utilization from 72% to above 76%, potentially adding 5,000 more rented cars per day without extra investment. Moscatelli called this “the most powerful profitability lever,” alongside continuous pricing optimization. “Both are first priorities,” he said, underscoring the dual focus on price and efficiency.
Technology as the new core driver
Movida is now using AI and machine learning to dynamically price rentals across models and locations, adapting in real time to demand elasticity. The same tools are being applied to back-office automation, helping to hold SG&A at 4.9% of revenue, a level the CEO described as “a benchmark for the sector.”
Used-car retail transformation
The seminovos division is stabilizing, with 24,500 cars sold in the quarter and the average sale price rising to R$73,400. The company is shifting more of this business from wholesale to retail, using new “auto-shopping” outlets to capture higher margins. Retail prices are typically up to 10 percentage points above wholesale, offering room for further profitability gains in 2026.
Outlook: sustainable growth over scale
Movida expects 4Q25 net profit of R$75–90 million, potentially up to 70% above consensus, marking the best quarter in three years. With ROIC at 14.4%, also the highest since IPO, Moscatelli says the company is prioritizing predictability over expansion. “We’ve reached a stage of maturity and stability. Growth now means sustainable profitability,” he said.