Financial Data and Key Metrics Changes - The company achieved a 5.2% year-over-year increase in service revenues for the first nine months of 2025, with EBITDA rising 6.7% year-over-year and a net income increase of 42.2% year-over-year [3][4] - Operational cash flow reached R$ 4.5 billion, with a disciplined approach to CapEx maintaining investment efficiency [3][11] - The company distributed R$ 1.8 billion in interest on capital and repurchased R$ 369 million in shares, reinforcing its commitment to shareholder remuneration [4][11] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.6% annually over nine months, with postpaid expansion being a key contributor [4] - The company added 415,000 postpaid lines in the quarter, with a low postpaid monthly churn rate of 0.8% [4][5] - TIM Ultrafibra showed operational improvements, with broadband ARPU at R$ 94 in the third quarter and a 3.7% year-over-year growth in the client base [5] Market Data and Key Metrics Changes - The company has expanded its 5G network to 1,000 cities across Brazil, leading in download speed and network quality [5][6] - The competitive environment in mobile remains rational, with the company planning price adjustments for the next year [21][22] Company Strategy and Development Direction - The company is focusing on innovation, customer experience, and operational excellence to drive sustainable growth [3] - The B2B segment is a key aspect of the strategic plan, with a focus on expanding revenue streams through IoT solutions and partnerships [8][41] - The company aims to maintain its leadership in network quality while expanding its service offerings [6][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals and emphasized the importance of mobile postpaid and B2B segments for future growth [12] - The company anticipates continued recovery in prepaid and broadband segments, with a focus on efficiency and shareholder returns [12] Other Important Information - TIM was recognized in the top 10 of the FTSE & Russell Diversity and Inclusion Index, highlighting its commitment to ESG practices [4] - The Revamp My Team app has over 17.7 million unique users, driving digital engagement and e-commerce growth [6][7] Q&A Session Summary Question: About mobile service revenues and competition - Management noted that the slight deceleration in mobile service revenues is consistent with seasonal patterns and not heavily influenced by competition [15][16] Question: Competitive environment and potential price increases - The competitive environment remains positive, with plans for price adjustments in the next year [20][22] Question: Lease efficiency plan and expected impacts - The company is in discussions with partners to optimize lease costs while expanding coverage [24][25] Question: Growth opportunities in B2B and IoT - Management highlighted the focus on specific verticals like agro business and mining, with plans for organic and inorganic growth [40][41] Question: Operating cash flow growth and revenue guidance - Management confirmed guidance for operating cash flow expansion within the expected range [44][47] Question: Price increase magnitude and impact on customer base - The company implemented price adjustments for both control and pure postpaid customers, with plans to assess further adjustments in the next year [50][53]

Financial Performance - Service Revenue increased by 5.2% year-over-year in 9M25[9] - EBITDA grew by 6.7% year-over-year with a 50.3% margin in 9M25[9] - Net Income increased by 42.2% year-over-year, reaching R$ 3.0 Billion in 9M25[9] - Operating Cash Flow (OpCF) reached R$ 4.5 Billion in 9M25[9] Revenue Growth & Customer Base - Mobile Service Revenues grew by 5.6% year-over-year in 9M25[11] - Postpaid net adds increased by 414k in 3Q25, with Prepaid to Postpaid Migration YoY growth of 11.4%[13] - The number of cities with 5G coverage reached 1,000 in Brazil by October 2025[16] Efficiency & Cost Control - Capex on Revenues was 16.2% in 9M25, a decrease of 0.7 percentage points year-over-year[9] - Interactions through automatic channels increased by 1.4 percentage points year-over-year[33] - E-commerce sales grew by 20% year-over-year[33] B2B & IoT - Contracted revenue in B2B IoT reached R$ 435 Million since 1Q24[28] - Total hectares covered with 4G increased by 29.3% year-over-year, reaching approximately 23.5 Million hectares[28] Shareholder Returns - R$ 1.8 Billion was announced as Interest on Capital (IoC), and R$ 369 Million in shares were repurchased[9] - The company is set to meet the guidance of approximately R$ 2.1 to 2.3 Billion in IoC/Dividends[44]

Financial Performance - TIM S.A. reported net revenue of R$6,710,987 thousand for Q3 2025, an increase of 4.55% compared to R$6,418,943 thousand in Q3 2024[18] - The company's gross income for the quarter was R$3,685,333 thousand, up from R$3,459,563 thousand in the same period last year, reflecting a growth of 6.53%[18] - Net profit for the period reached R$1,207,705 thousand, representing a significant increase of 50% compared to R$805,026 thousand in Q3 2024[20] - Earnings per share for Q3 2025 were R$0.50, compared to R$0.32 in Q3 2024, marking a growth of 56.25%[18] - The company’s total comprehensive income for the period was R$1,207,705 thousand, consistent with the net profit for the period[20] - TIM S.A. reported a net profit of R$2,980,714 thousand for the period ended September 30, 2025, compared to R$2,105,669 thousand in the same period of 2024, reflecting a year-over-year increase of approximately 41.5%[21] - Normalized Net Income for Q3 2025 was R$1,208 million, a significant increase of 50.0% YoY [37] - Normalized net income for Q3 2025 was R$1,208 million, reflecting a 50.08% increase compared to R$805 million in Q3 2024[53] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$57,371,375 thousand, a rise from R$56,327,311 thousand at the end of December 2024[15] - Total liabilities increased to R$32,158,148 thousand from R$29,922,675 thousand, indicating a growth of 7.36%[16] - Current liabilities rose to R$14,678,541 thousand, compared to R$12,827,248 thousand in December 2024, showing an increase of 14.39%[16] - TIM S.A. reported a decrease in profit reserves from R$12,559,460 thousand in December 2024 to R$10,016,294 thousand as of September 30, 2025[16] - The company’s retained earnings increased to R$1,680,714 thousand as of September 30, 2025, compared to R$1,305,669 thousand in the previous year, indicating strong profitability retention[29] Cash Flow and Investments - The company’s cash and cash equivalents stood at R$3,673,535 thousand, up from R$3,258,743 thousand, reflecting an increase of 12.7%[15] - Cash generated by operations for the period was R$9,420,114 thousand, compared to R$7,900,062 thousand in the previous year, indicating an increase of approximately 19.2%[25] - The net cash used in investment activities was R$3,376,594 thousand for the period, slightly higher than R$3,256,358 thousand in the previous year, indicating continued investment in growth[27] - TIM S.A. maintained cash and cash equivalents at R$3,673,535 thousand at the end of the period, an increase from R$2,287,330 thousand in September 2024, reflecting improved liquidity[27] Revenue Streams - Service Revenue increased to R$6,534 million in Q3 2025, reflecting a 4.8% YoY growth, driven primarily by Mobile Services [37] - Mobile Service Revenue rose by 5.2% YoY to R$6,203 million in Q3 2025, with a record Mobile ARPU of R$33.1, up 4.6% YoY [38] - Clients Generated Revenue (CGR) grew by 6.3% YoY to R$5,819 million in Q3 2025, indicating strong revenue growth from both TIM and non-TIM customers [39] Customer Metrics - The Mobile Customer Base stood at 62,619,000, with a 9.0% increase in postpaid customers YoY [37] - TIM recorded 426,000 mobile net additions in Q3 2025, a significant increase compared to 163,000 in Q3 2024[79] - The prepaid segment saw a decline of 6.8% year-over-year, with 30.275 million users, while the postpaid segment grew by 8.0% to 32.344 million users[79] - The average revenue per user (ARPU) for postpaid customers was R$ 441, reflecting a 1.9% increase year-over-year[79] Operational Efficiency - Normalized Operating Expenses totaled R$3,242 million in Q3 2025, up 1.8% YoY, remaining below the inflation rate of 5.17% [46] - Normalized EBITDA for Q3 2025 reached R$3,469 million, a 7.28% increase year-over-year from R$3,236 million in Q3 2024[53] - Normalized EBITDA margin improved to 51.7%, up 1.3 percentage points from 50.4% in Q3 2024[53] - Operating free cash flow for Q3 2025 was R$1,820 million, a 4.5% increase from R$1,743 million in Q3 2024[66] Partnerships and Strategic Initiatives - The partnership with IHS Brasil aims to construct and operate up to 3,000 telecommunications towers, enhancing infrastructure for IoT projects [36] - The strategic partnership with Cartão de Todos generated over 1 million leads, with over 50% being complete and qualified registrations[75] - TIM's education services launched an exclusive AI course with Google, achieving 50,000 enrollments shortly after launch, contributing to a total of 250,000 enrolled users[74] - The partnership with Axia Energia expanded to nationwide coverage, focusing on renewable energy solutions for corporate clients[76] Market and Regulatory Environment - The Company is currently studying the potential impacts of the OECD Pillar Two legislation, which establishes a minimum tax rate of 15% for large corporate groups, effective from 2025[130][133] - The Company assessed the impact of the new accounting standards and did not identify any material impact on its quarterly information[123][127] Accounts Receivable and Inventory - Trade accounts receivable increased to R$5,132,439 thousand in September 2025 from R$4,815,750 thousand in December 2024, representing a growth of approximately 6.6%[173] - Total gross accounts receivable increased to R$5,809,910 thousand in September 2025 from R$5,486,319 thousand in December 2024, reflecting a growth of about 5.9%[173] - Total inventory increased to R$371,966 thousand in September 2025 from R$310,054 thousand in December 2024, marking a rise of about 19.9%[179]

Core Insights - First Financial Bankshares has appointed Tim Brown as Executive Vice President and Chief Information Officer, and CEO of First Technology Services, Inc. as part of its succession planning [1] - John Ruzicka, the former CIO, will transition to Chief Banking Operations Officer, focusing on enhancing the bank's backroom operations [1][3] Leadership Changes - Tim Brown brings over 35 years of technology innovation and operations experience, having previously worked at USAA and Johnson Financial Group, which positions him well for the bank's growth into a mid-size regional bank [2] - John Ruzicka has been with the company since 2018 and has significantly improved the bank's tech infrastructure and digital modernization [2][3] Company Overview - First Financial Bank is a wholly owned subsidiary of First Financial Bankshares, Inc., operating multiple banking regions with 79 locations across Texas [3]

Core Insights - Three stocks are highlighted with a buy rank and strong income characteristics for investors to consider on October 16th Group 1: TIM (TIMB) - The company offers mobile cellular service throughout Brazil and has seen a 3.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - It holds a Zacks Rank 1 (Strong Buy) and has a dividend yield of 4.4%, which is higher than the industry average of 2.6% [1] Group 2: Banco Bilbao Viscaya Argentaria (BBVA) - Engaged in a variety of banking and financial activities in Spain, BBVA has experienced a 1.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The company also holds a Zacks Rank 1 (Strong Buy) with a dividend yield of 4.1%, surpassing the industry average of 3.1% [2] Group 3: California Resources (CRC) - This oil and natural gas exploration and production company, primarily operating in California, has seen a 5.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - CRC has a Zacks Rank 1 (Strong Buy) and offers a dividend yield of 3.2%, compared to an industry average of 0.0% [3]

Group 1 - TIM S.A. has reported strong results for 1H25, confirming its position as a leading player in the Brazilian telecom sector [1] - The market has been pricing in TIM's solid performance, indicating investor confidence in the company's growth trajectory [1] Group 2 - The analysis highlights the importance of identifying undercovered stocks in Brazil and Latin America, suggesting potential investment opportunities in these markets [2] - The focus on less prominent stocks may yield significant returns, as they often do not attract immediate attention from investors [2]

Group 1 - Investors in TIM S.A. (TIMB) should monitor the stock due to significant movements in the options market, particularly the Nov. 21, 2025 $15 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in TIM shares, possibly due to an upcoming event [2] - TIM currently holds a Zacks Rank 3 (Hold) in the Wireless Non-US industry, which is in the bottom 33% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter [3] Group 2 - The high implied volatility for TIM could indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Company Overview - TIM S.A. Sponsored ADR (TIMB) is based in Rio De Janeiro and operates in the Computer and Technology sector, with a year-to-date share price change of 82.74% [3] - The company currently pays a dividend of $0.09 per share, resulting in a dividend yield of 4.03%, which is significantly higher than the Wireless Non-US industry's yield of 2.6% and the S&P 500's yield of 1.5% [3] Dividend Performance - TIMB's current annualized dividend of $0.87 represents a 56.5% increase from the previous year [4] - Over the past five years, TIMB has increased its dividend three times on a year-over-year basis, averaging an annual increase of 9.26% [4] - The company's current payout ratio is 60%, indicating that it pays out 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TIMB's earnings in 2025 is $1.38 per share, with an expected increase of 14.05% from the previous year [5] - The company is positioned as a strong dividend play, appealing to income investors due to its solid earnings growth prospects [6] Investment Considerations - High-yielding stocks, like TIMB, may face challenges during periods of rising interest rates, but the company remains a compelling investment opportunity [6] - TIMB holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]

Company Overview - TIM S.A. Sponsored ADR (TIMB) is based in Rio De Janeiro and operates in the Computer and Technology sector [3] - The stock has experienced a price increase of 79.85% since the beginning of the year [3] Dividend Information - TIMB currently pays a dividend of $0.09 per share, resulting in a dividend yield of 4.09% [3] - The Wireless Non-US industry has a yield of 2.73%, while the S&P 500's yield is 1.49% [3] - The company's annualized dividend of $0.87 has increased by 56.5% compared to the previous year [4] - Over the past 5 years, TIMB has raised its dividend three times, averaging an annual increase of 9.26% [4] - The current payout ratio is 60%, indicating that 60% of its trailing 12-month EPS is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TIMB's earnings in 2025 is $1.38 per share, reflecting a year-over-year growth rate of 14.05% [5] - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] Investment Considerations - TIMB is considered a strong dividend investment opportunity, especially in the context of rising interest rates where high-yielding stocks may face challenges [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]

Core Viewpoint - TIM S.A. Sponsored ADR (TIMB) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the changing earnings picture of a company, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - For the fiscal year ending December 2025, TIM is expected to earn $1.36 per share, which remains unchanged from the previous year, but the Zacks Consensus Estimate has increased by 1.9% over the past three months [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, with institutional investors using these estimates to determine the fair value of shares, leading to buying or selling actions that affect stock prices [5]. Business Improvement Indicators - The upgrade in TIM's rating reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - TIM's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].