Movida released preliminary results for the second quarter of this year, and the results are generating optimism regarding the company's prospects for further reducing its financial leverage – a topic that has been weighing on the investment thesis for the car rental company.
The company reported on Thursday, July 16th, that its net profit totaled R$ 135.6 million between April and June of this year. This amount is the highest recorded by the company in a single quarter in the last four years.
The figure is also double that recorded in the same period of 2025 and exceeded the guidance released by the company, which projected net income between R$ 110 million and R$ 130 million.
According to Felipe Nielsen, an analyst at Citi , the operating results "showed strength, profits exceeded the upper limit of guidance and were 11.4% above our estimates."
The preliminary data also showed that gross revenue totaled R$ 4 billion in the second quarter, a 3.2% increase year-on-year. According to Movida, the rental unit recorded record revenue of R$ 2.6 billion, a 21% increase compared to the same period of the previous year.
"Rental revenue was a positive highlight, possibly driven by better fleet utilization and improved pricing, especially considering the quarter's low seasonality," added the Citi expert.
EBITDA was R$1.7 billion, a 22% increase, and EBIT surpassed the R$1 billion mark for the first time, with a 29% expansion compared to the second quarter of 2025. The full financial report is scheduled to be released on August 12.
The preliminary results also pleased analysts at Banco Safra , who, in a report released on Monday, July 13, projected a net profit of R$ 131 million and EBITDA of R$ 1.6 billion.
According to analysts Luiz Peçanha and Arthur Godoy, the expectation was based on "increased profitability of the rental division." They also pointed out that the performance should be sustained "by strong demand, high fleet utilization levels, and the maintenance of discipline in pricing policy, both in car rental (RAC) and in fleet management and outsourcing (GTF)."
The second-quarter performance is good news for the company's plans to reduce leverage, a recurring theme in analysts' reports.
Movida closed the first quarter with a net debt to EBITDA ratio of 2.6 times, the lowest in the last five years, but stable compared to the fourth quarter of 2025. The indicator considers the injection of R$ 750 million from the capital increase that formalized BNDESPar 's entry as a significant shareholder in the company.
Reducing leverage is considered crucial, as Movida operates in a capital-intensive sector and needs to navigate a high-interest rate environment, which puts pressure on its financial results.
In the first three months of the year, the company recorded net financial expenses of R$ 753.8 million, a 15% increase. In its financial statement, Movida states that this growth reflects the increase in the Selic rate , which caused the average CDI to rise from 11.23% per year in the first quarter of 2025 to 14.79% in the same period of 2026, in addition to the increase in net debt, from R$ 15.9 billion to R$ 16.3 billion.
In a report released in May, XP Investimentos assessed that, from a credit perspective, the first quarter results indicated operational improvement and progress in the gradual deleveraging process.
"But the company remains dependent on continued EBITDA generation, capex control, and access to capital markets to manage a capital structure that is still under pressure in the short term, especially from a liquidity perspective," says an excerpt from the report.
Preliminary second-quarter results reinforce Fitch Ratings' expectations, released on June 1st. According to the rating agency, the operational improvements recorded and the injection of resources pave the way for Movida to sustainably reduce its financial leverage.
"The agency expects the net debt/EBITDA ratio to remain below 3 times over the rating horizon, compared to an average of 3.6 times recorded between 2022 and 2025 and 3.2 times in 2025, reflecting the company's aggressive expansion in 2024," says an excerpt from the commentary.
The agency also expects cash flow to return to positive territory, with cash flow from operations (CFFO) reaching R$ 3.8 billion in 2026 and R$ 4.2 billion in 2027.
In the first quarter, Movida reported that its free cash flow before interest reached R$ 17.6 million, reversing the R$ 1.2 billion consumption observed in the same period of 2025, mainly due to increased EBITDA and reduced net capex.
Around 12:30 PM, MOVI3 shares were up 1.49%, at R$ 8.84. Year-to-date, Movida's shares have fallen 9.24%, bringing its market capitalization to R$ 3.5 billion.
