Good morning, everyone. I'd like to thank you all for attending us in this video conference on the results of the third quarter.

We are very happy to report another quarter with strong numbers and figures. I'd like to congratulate all the franchise stores, all collaborators, all partners in this company.

Let me share with you some of our highlights. Then Patricia will talk about the figures, and Fred will later talk about TFC and TFSports.

Let's talk about this quarter. Once again, the company managed to keep up with the level of growth in a very robust top line: 28.3% growth versus the Q3 24, and also growth in stores of almost 23%.

That's a trend we have seen since the beginning of the year, strong growth. On top of this growth, we have some comments to make.

First, obviously, there is this outlook, this environment that is really favorable for a company like ours that works in the segment of wellness, of a healthy life, which is our mission, to connect people to a healthy lifestyle. This has started years ago, and we believe that this has recently accelerated.

There are more people engaged with physical activities, more interested in health, practicing more sports. In this environment, we have a good positioning for our brand.

With this important tailwinds that help us. The company also have its own merits on its performance in 2025.

I'd like to talk about some of our products. The year we really got it right in our products in both collections: the winter collection that impacted the first half of the year mostly, and also the summer collection that was recently launched that has a more impact on the third quarter and giving us a very favorable perspective.

Also we have many collections that we call them capsule collections, and we also had a very big hit with them in terms of products. We also have other leverages like stores renovations.

We have consistently renovated stores, and that has been giving us as robust and consistent growth even in same-store concepts and store renovations. We have allocated capital to this renovations with very good returns for us, and this year we will close this of six with 60% of the network under this new format with good perspectives in the number of stores.

In the next few years, this will bring us more growth. Another highlight to account for our growth is the digital segment.

It has been growing consistently for a while now. Once again, in this third quarter, it has achieved a growth above the average.

It has had a participation of 3% pre-pandemic, and today it's above 10%. For a company of our size, this is a pretty relevant growth.

This strategy to increase this segment has been very important to account for this good performance. Today we have the ship-from-store concept that is consolidated.

Over 70% of sales made are delivered through stores that are closer to our customers. We achieved two main goals: first, to have our customer to be a customer-centric company and delivering the best experience to our customers with faster deliveries, and inserting the franchise stores into this digital segment and strategy.

Accounting for over 10% of digital figures is our sales teams can see the whole inventory. We also have a very good inventory management.

This strategies has helped, and the digital segment has been an important leverage. Let me also talk about our marketing, which evolved very much.

We have a marketing talking about the whole ecosystem, very good strategy involving influencers. This year will have a very good evolution in this front as well.

We have a favorable environment and also our own performance. Revenue has grown at a faster pace in terms of the sell-out.

Which was the main point regarding the net revenue. I'd like to talk more about this, and then later we'll discuss it more.

We had a participation of the sell-in for the franchises stores that was again a participation of 55%. The sell-in has pushed the net revenue upwards.

This helps explain the impact of gross margin that Patricia will discuss. In the sell-in in our business model, with a very small margin, the goods for the franchised stores.

We have a participation that is larger in the sales mix connected to the sell-in, and there is a pressure of a margin that is lower. Let me underscore for you that today's sell-in is the royalty of tomorrow.

Today we have a margin of 60%. Sell-in and stores are well supplied, and we have worked on this very good supply.

It means that this will come back to our profitability in the form of royalties where I have the highest margin of the company mix. The sell-in of today is the royalty of tomorrow.

We have a very good and positive balance. The more net revenue I have, mainly due to the sell-in of these goods for the franchised companies, I also manage my expenses.

Part of this comes in the form of a decrease in expenses in this quarter. This is a quarter in which we had very good sales and also very good profitability, with an EBITDA that grew 28%, and adjusted net revenue of 30% growth.

A very good top line in this quarter with profitability. From the expansion standpoint, we had new franchise stores, 417 stores, and 17 renovations.

When you look at the accumulated in the year, we see that the company has maintained a growth near 30%, 23% same stores. This was a growth in this nine-month period that was above what we expected.

In the beginning of the year, we've had the need to make a series of adjustments in our operation from the product, production, logistics standpoints. We had some bottlenecks in the beginning of the years in terms of supply to the stores, which is normal, because when a company grows at this level, we will have this type of bottlenecks.

If you compare '23 to '24 and '25, we have grown 18%. We've had this 18% growth, and now we have this 30% growth.

Some bottlenecks will naturally appear. The good news is that we've had, in this third quarter, an excellent collection launch, very good supply to the stores, and we have very good signs for this fourth quarter.

Another merit of ours this year is that we reacted pretty quickly, and we adjusted our operation very quickly. Profitability indicators are very good.

Consolidated EBITDA growth of 37% in all business. Net revenue grew 35%.

The company maintains with zero debt in the cash flow. We've had a period of higher investments in store renovations, tech platforms.

We have some expenses to make in this cash flow. We have maintained a very good position in this terms, zero debt.

To finalize in terms of expansion, you could go to the next slide, please. That's the one.

Thank you. Just a history of our expansion.

Now, if you go back to 2011, which was the beginning of the franchise Track&Field, then we've had a steady and long growth. We almost multiplied by 10 the number of stores, with a growth prioritarily through franchised stores, which is the blue part of the bar chart.

In this year, we have the perspective of opening around 40 new stores, a very similar number to last year, which is a level of stores that we believe that we can keep the quality of the point of sales, the quality of the franchises, which is something that is truly important to us. We want to balance this growth and maintain the quality of operation.

In terms of renovations, which is super important, we will perform over 40 renovations. Our goal was 40, and maybe we will go on top of that.

This program of store renovations is very important for us and for our franchise stores. These are my remarks, and I'd like to call Patricia.

Thank you very much. I'm very pleased to report our results to you today, which is the hard work of people here, our partners, with our franchisees, our suppliers.

Let me, first and foremost, thank all of partners directly and indirectly connected to these results. Tracanella talked about our expansion a bit.

Today, we had over five a new five other stores. We had four 417 by the end of the quarter, and today we have five other, 422.

In terms of sell-out, which was our sales, this sales is the reflection of many initiatives that have been taken through time and that have gained ground with time. We have 28% growth in sell-out.

This growth we have seen in the first quarter, in the second quarter, in the third quarter brings the company to this level of almost 30% growth in the nine-month period. This has been truly relevant to see this growth.

This will corroborate with the success and the performance of our summer collection. I'm paying tribute to our collection, very beautiful pieces.

I like to make this correlation with what happens in our stores. The summer collection is wonderful.

Winter sales clearance also had a very good effect. Our Father's Day sales was very good, too, very relevant for this quarter, and sales even above what we have seen in previous years.

There's no doubt that this better supplied network has made a difference: the right product at the right time, at the right place. A lot of energy has been devoted to that.

This leverage is very important for our growth. A higher flow of customers in our stores with the renovations, new stores, renovations here growing in terms of 46%, that's a lot.

We cannot forget about the events. The events have been truly successful.

In this quarter, we had over 1,000 events in TFSports. Fred will talk about them.

Almost 150,000 participants. This is another reflection of our sell-out.

In terms of e-commerce, with this participation of our sell-out in almost 11% in the total of the captured figures. When we look at e-commerce, this is the channel where we capture this digital sales in our website, and this is realized in our city and all of our physical stores, our owned stores or franchise stores.

Remember that when I look at the e-commerce in this nine-month period, it will grow almost 42% if you consider the whole period. A lot of opportunities, and we have worked really hard in this digital front.

In terms of the omnichannel, it also discusses our concern of having the right product at the right time, bringing the opportunities for our customers who are looking for a product, and maybe they don't find this product they're looking for at the physical store. This is very good for us.

Today, we have 378 stores connected through this tool. When I can offer to our customer what they were looking for if they haven't found this in the physical store.

Through this connection, through this network, we could increase almost 13% in our digital sell-out. In social selling, this initiative is also very important, very successful, accounting for almost 39% of the sales in the quarter.

It starts through WhatsApp channel, in our store sales team, and people involved with this selling initiative. The sale follows after this contact through WhatsApp.

Social selling has been very good in this quarter. Now, talking about net revenue, our net revenue is 31.4%.

Tracanella has explained this to us, but let me tell you how the sell-out will grow 28.3, and net revenue grows 34 31.4. It's because of the sale to franchise stores, which is the sell-in.

The sales that we make to the franchisees today is very important because these franchised stores are well supplied. They anticipate movements in their stores.

Now in the fourth quarter, we have Black Friday, we have Christmas, and people will anticipate buying products at the stores. The franchised stores, they are better supplied.

They have a different behavior. We have this discrepancy in the net revenue.

This business, the sell-in growing 55%, precisely because of this signalization. The network is confident in the collection, is confident in the product we are delivering, and they will be supplied, and they will become better positioned to take this opportunities.

We have demand for that, and we have been delivering. This part of sell-in has taken a part of our net revenue that was relevant when you compare this to last year, with 5 percentage points above our net revenue in this quarter regarding the Q3 24.

Now, I will connect this information to the gross revenue later. Retail grew 24%, also reflecting renovations, clearance sales, Father's Day sales, with excellent results.

Our royalties, and now I'm talking about what franchisees have sold through the quarter and what this generated to us in terms of royalties. This is directly connected to the increase of the sell-out, 31.2% year-over-year.

This will happen in the next few months. Our sell-in today means better royalties in the near future.

We need to keep this in mind. TFS and TF Mall, we have a reduction of 11.1% in this period, basically due to the end of PERSE tax benefit.

This PERSE tax benefit helped companies that were connected to events back at the time of the pandemic. This segment was paralyzed due to the pandemic.

We had this PERSE tax benefits. PIS and COFINS tax were exempted.

From April on, PIS and COFINS started being paid again. This explains this reduction.

Now gross profit connecting to sell-in, let me talk about that. The sell-in today is my sell-out tomorrow.

Is my royalty on my net revenue that will pressure myself in my gross margin, because I have 5 points above representativeness in the net revenue with a lower margin. In the business mix that we have, this is my channel with the lowest margin.

That's why you have this pressure. It's nice to see that if you look at the nine-month period, I have a very similar margin.

This seasonality that occurs among quarters, in the nine-month period, you can see that it is similar. In the nine-month period, we can better compare this.

If you compare this to the fourth quarter, at the fourth quarter, we'll be able to better explain this mix. All channels had a very good gross margin.

That's about gross profit. Now, moving on to operating expenses, we've had a strong growth of revenue.

There's no doubt that will help us dilute our operating expenses, especially those related to sales, because these are expenses that are correlated to a sale that I make. This sale is made in one channel in which it doesn't require the same magnitude of a sales in a physical store.

This will be preserved, and I can dilute this. This is due to a management work that has been done through the years that delivers this decrease in 1.2%.

33.6% of our operating expenses in net sales in Q3 25. In terms of EBITDA margin, we are in line with last year because let me talk about that.

We had net revenue growing 31, the gross profit in '24 at 24. I lose this 2.7 of gross margin, delivered by 2.2 in sales.

EBITDA, it's aligned. This is also what Traca discussed in the beginning.

You can have some pressure in the gross margin, but I can dilute our expenses, and so the EBITDA comes in a more similar level. In the nine-month period is 1.3.

In terms of TFSports, in terms of what we have made in investments to TFSports, it represented 4.1% of consolidated net revenue in Q3 24, and 3% in the nine-month period, diluting this even more what we have seen compared to last year. Now talking about our net profit, if this EBITDA is less -0.5%, almost in line with last year, I will have a depreciation and a better IR if compared to last year because I have a more relevant JSCP that was better, we have a better margin here, and 0.6 percentage points in margin expansion, resulting in 15.9% due to share buyback at the order of $44 million.

We have 0.2 net profit if compared to last year in net profit, and over 34.6% growth in the period, 0.6 above. Generation of cash was almost 34%, very strong growth for us, above what we have seen in terms of growth in net profit, better management of our working capital, particularly in terms of stocks and inventory.

If you look at this inventory position, we had more turnover because of the sell-in initiative, which also helped decrease our average term for inventory and suppliers, also a little down. We had the receive date because of my net revenue behavior, which is more channeled to sell-in, which is a channel in which I have a longer period of receiving period if compared to the retail period.

We had a reduction of 30% in terms of investing activities. We dislocated this to the fourth quarter in terms of renovations because we have this postponement of store renovations to the fourth quarter of '25.

In terms of financing activities, last year we had $12 million in terms of shares buyback, and we have a significant reduction of 43% in terms of this financing activities. Net cash used decreased 43.2% due to the non-recurrence of share repurchased.

In cash position, we had almost 20.7 million. We remain debt-free, and our sustainable growth, constant cash generation, is very important for us.

I believe that's it. That's what I had to say.

Now, I call Fred. Fred, the floor is yours, please.

Good morning, everyone. It's a pleasure to welcome you all here.

Now, moving on to our next slide, let me talk about TFSports. We had over 1.1 million users as of September the 30th.

We grew almost 47% year-over-year in the number of users in our app. This year, we transitioned from the app to our new platform.

Now we have expanded the services provided by our platform. Our focus is very important in the frequency of the users of our platforms.

We have 8.8 thousand registered trainers. I believe that with a new version, we'll have more trainers, a growth of almost 15%.

In terms of events, we had 1,100 events and 148.3 thousand participants in these events. There is an increased number of participants per event.

We have also increased the number of modalities. We have a wider groups of people involved because we have a wider range of sports.

A net revenue of $14.3 million, a decrease of 7.2% versus Q3 24. This is due to seasonality also.

TFSports, we are very excited about this. We have this correlation with Track&Field sports.

We're very excited with the attraction we are gaining and the number of users we've been attracting to the platform. Now, talking about TFC, we can see an increase of addressable market in our supplementation and food market, a growth of 58% in our sales in food and market, 36% increase in clients that we have reached.

We have increased the number of foods that we offer, grab-and-go, and supplements also grew substantially. We had differentiation, a breakdown per category, and we have worked in terms of creating the stores to get them ready for that.

We are very satisfied with TFC and how we've been able to increase this addressable market. In terms of TF Mall, we have increased from one year to the next over 50% the number of partner brands.

We also increased our initiatives in marketplace, the number of stores in our marketplace, we can meet the demands of a higher number of customers with products that are within the Track&Field scope and also outside our scopes, like tennis, for running, and other products. We are very excited with the momentum and the ground we have been gaining in this market.

In terms of our platform, we've been very encouraged by this in our company, in our addressable market. We can protect our brand in the sense of being able to have a complete journey for those people who want to connect their lives to a well-being and a healthy lifestyle.

That's it from my side. Maybe we'll start our Q&A session now.

I'm not sure.

Thank you for allowing me to have to ask a question. Regarding gross margin, the main factor was the sell-in activity, but trying to isolate this effect, was how was the evolution of margin gross margin year-on-year oh year-over-year in the channel?

What about the structuration of e-commerce in Portugal? What about the expectations with the platforms and talk about the the schedule and how you are structuring your operations in the country?

That's it. Thank you.

Hi, Kelvin. Good morning.

Thank you for your question. Let me talk about gross margin.

Yes, all channels, if you compare them per business, they follow aligned, maybe a little over year-over-year. Just a complement, just something to add here.

If you look at the promotional effort made this year, and the periods of clearance sales, we have a lower median discount in relation to 2024. Just like Patricia said, our gross margin isolated per channel has grown if compared to last year.

Fred, can you talk a little bit more about our international operation, please?

Yes, sure. By the end of this year, we'll be launching an international website we have been developing with Shopify, which will be launched internationally.

It's a multi-currency, multi-language website. Quickly, we can offer in our product lines to several countries in different currencies, in different languages, and also considering local forms of payment.

The idea is to use our Portugal store initially as a inventory basis. We just do this in Brazil as well for the franchised stores.

Little by little, we will start our expansion strategy. We open our store in specific places.

We use this in inventory for the channels, and then we use the D2C brand with integration with the stores, and we perform local marketing in different markets. We are pretty excited with this marketing initiative, and little by little, we'll begin this internationalization and learn about the international market.

We have a very very good competitive price, very good product, and product set, and then we can test new markets more objectively without making very large investments at once. This is our step-by-step internationalization initiative and strategy.

Thank you very much.

Congratulations once again for the strong results. Just two questions.

I would like to double-check this anticipation of the collection. Which was the rationale behind this?

Or was this for this collection or can we expect the same dynamics for future collections? I'd like to ask you about this beginning of this fourth quarter.

I would like to ask you about this first days of November and also the end of October and your expectations for Black Friday and for Christmas. Thank you.

I can start, and then Patricia can continue. In fact, we've had a progression in September that was more robust if compared to the same period in previous years.

Our effort in the operations area to have a higher volume of items, more launches, more items. This is interesting because we've had new things for the customers.

We've had more items, more new items if compared to other years, to other periods. Yes, maybe we can expect this for future seasons.

Also we have a good perspective for the fourth quarter. For this two months that we still have to close the year.

We've made an effort to be well supplied for this period, and we have a very good expectation for the fourth quarter overall. We cannot talk about figures yet, but our perspective is positive because we have a scenario in which the network is better supplied, is more robust, is healthier, there's no surplus in inventory, the inventory is healthy, and very good acceptance by our customers.

In terms of expectation, we have a very good expectation for the fourth quarter in terms of sales. We cannot say this will be for sure an excellent quarter, but we have positive expectations because the company has followed a strategy of being an extremely promotional brand and we do not train our customers to buy our products only when they are on sales.

We want to have more which work to have more loyal customers. We know that Black Friday is always strong, but we have a very good basis of customers, loyal customers, and this is what we try to achieve with our brand.

We try to preserve what we have built in this terms of customer loyalty and loyalty to the product in our brand. Anyway, yeah, we have a good expectation for the Black Friday, but not a crazy expectation.

Our expectation is to keep up with what's usually achieved and have very good perspective.

Thank you very much. I wish you have a great fourth quarter in sales.

Thank you. Good morning, Pat, Fred, and Tracanella.

Fernando, how can we see the increase of added value in products? When we evaluate future opportunities, how can we see advantage?

How can you consider cost structure as you develop your marketplace in this area? Considering higher added value, do you have the people, structure, and processes needed?

Can we look for investments that are needed? Thank you.

I will take the first part, and then maybe Patti will talk about the second part. Regarding the added value, in fact, we had a good effect of a mix this year of products with higher added value, which was successful, especially in our mini collections, what we call capsule collections.

We've had a very good performance, and we take risks with this, but they helped us with the average price, and it grew more because of this. We've had an improvement due to the mix this year, especially because of the mini collections that were successfully launched.

There are other interesting things to be pointed out in terms of product mix: products for kids, we continue this line with a wider range of products. People who have kids and also teenagers, we have a wider range of products covering teenagers as well.

This has been good for us. We see a lot of opportunities in this range of products, and added-value or higher-added-values products, they are more linked to this mini collections that were launched.

Fred, can you talk a little bit more about market place, please?

Hi, Bob. It's a pleasure to welcome you here.

In terms of marketplace and TFSports as a whole, we obviously have a plan, not only a business plan, but also a budget we are working with internally for 2026. We have we want to accelerate this process of of business as we perceive the new possibilities of monetization and acquisition of TFSports users.

We We do not want to increase the investments. We do not want to take more cash, not more than it has taken today.

This in terms of investments and funding, it will depend on what we find regarding the development of TFSports. This has to do with discussions with the board moving forward.

At now Right now, we we want this company to become break-even company and becoming more profitable within our business plan. We've have worked in curatorship in our market place environment with events, foods and beverage, and clothing.

In terms of events, we've been bringing more events at TFSports platform, and the well-being business is a potential market for for us, well-being and healthy segment. We keep we have we try to be conservative in terms of taking cash flow.

We want to make TFSports a profitable company and accelerate this company as a startup, this company can become a wellness platform where people go after anything related to this market.

Thank you very much. Congratulations once again.

Talking about Portugal, we decided to start our operations in Portugal due to two factors: first, language and cultural connection, the presence of Brazilians in the country also is important, and it's a smaller market in Europe. It's like a blue ocean market, as we call it.

We have a strong partner there in Portugal. They have helped us immensely.

Our idea is to start with a smaller market, to learn from that market, and then expand to other markets. When you talk about Portugal, talk about Europe.

If we get it right in Europe, we can expand to other European markets. Portugal has the advantage and the disadvantage of being a smaller market.

We have seen advantage. We have retail there, and we have organized events there as well.

We've been pretty happy about the results so far, so that's why we want to increase the number of stores.

Competition is part of the game. Competition will grow because the market is more and more attractive for customers.

Our performance is very good if even comparing ourselves to our competitors. In terms of performance, we have two strong points: one is fashion, along with performance.

This is something that is consolidated in our brand. We have something that may be unique, which is a wide range of age groups that not all brands managed to get.

We have products for kids, for men, for women, for the elderly. We have a wide range of audiences we have products for.

This is a brand that have the possibility of being seen as a brand people go for when they want to buy presents and buy products for themselves. Yes, we have competition, but our focus is to develop products that are more connected to durability, to fashion, to technology that have to do with the ecosystem.

This is our focus, and even considering a higher competition, we believe we are well positioned.

Could you talk about more details in this inventory policy? The current level, in spite of year-over-year reduction, is well above the IPO.

I'd like to understand how you see this level, and if you see any opportunities moving forward.

Hi, Thomas. In fact, this is a point we worry about since the IPO, as you said, in this comparison you drew.

There are several initiatives we have made in the past few years. Let me mention some of them.

Before, I'd like to make a correlation of how hard it is. When you think you have a demand that is extremely strong, coming from a market that, in the past few years, we had an overall growth of 25% last year, 18%, and this year, a growth of 30%.

On our side, we have a strong pressure of offering this product to this customer at the right time, and not hurting our working capital with this high inventory or high stock. We have implemented some initiatives in the past few years and months.

Some are more positive initiatives, some are initiatives that offset others. Initiatives that helped us achieve this efficiency are: first, we have a pulled production developed in the past few years.

This year, we felt this impact. What I mean by that?

We can see the need of a product in a given store and being able to stop a little bit of the production at the factory and then starting with that product that is in demand. We use our productive capacity to place products that were at the top of summer instead of winter, for example, to have this awareness.

You also have awareness on products that are less acceptable to weather, to the weather, or changes in seasons. We have an inventory of products that we call hero products.

They are important products, we maintain them in stock. We have this opportunity of having them in our stock, and we can supply them.

We've made some changes in our water sports and beachwear, and this collection, if we can correlate them with what I mentioned about awareness and sensitiveness, this beachwear and other collections were really sensitive to this changes. Water sports, for kitesurf, for beachwear in general, we've made some changes in that, and we work with the only category of products of pre-order.

We have pre-order with the franchised stores. For beachwear and water sports products, we have this pre-order with our franchised stores that help us manage the stock.

Now, talking about numbers and products, we have opened a factory in Joinville. It opened in June of '22, and we've verticalized the Thermodry product, that t-shirt that is highly technological, and we verticalized that production there in that factory.

It hurts our stock a little bit, if you compare this to the previous period. In December 2024, we were self-sufficient in Thermodry.

Today, we no longer buy this fabric in the market anymore. We don't do this anymore.

At the same time, it gave me a great margin opportunity, because I have this productive capacity in-house. I have margin to offset some changes in sales of this product.

This is good. On the other hand, considering my cycle, if you consider the stock cycle, I have other pressures because now I have to create the fabric, the raw material.

These were some of the initiatives.

I just wanted to add that this is a topic, we look at this, but our main focus is to have availability of product. If we can gradually and cautiously have no markdown without hurting our margins, we will have this lower coverage.

Our product is a product that we can work with through time, through seasons. We have implemented this initiatives, and we have opportunities to generate cash on demand, to have to manage supply.

We have a lower coverage. Our main focus today is to keep that, to follow that, but not hurting product availability, without deteriorating, without causing any damage to the brand.

Because we have some statement pieces of our brand, and in terms of cash flow, we make decisions taking the long term into account.

I would like to thank you all for attending this call. We are very happy about our results.

We'll keep working with Track&Field. We have worked very hard.

I'd like to thank our team, our franchise stores, our suppliers, our partners, investors for your support, with very interesting takes. Thank you for important comments and questions.

I hope you have a wonderful weekend, and we remain at your disposal.