Lavoro Limited (LVRO) AI Stock Analysis

• Market Cap: $142.10M
• Dividend Yield: N/A
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,767
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): N/A
• Shares Outstanding: 114,595,436
• 10 Day Avg. Volume: 8,789
• 30 Day Avg. Volume: 6,715
• PEG Ratio: 0.01
• Price to Book (P/B): -0.88
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.51
• Enterprise Value/Market Cap: 2.93
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: 1.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.00 ▼(-9.09% Downside)

The score is primarily held down by weak financial performance, driven by a sharp revenue contraction, large losses, negative equity, and ongoing cash burn. Technicals provide some short-term support (above 20/50-day averages), but longer-term trend signals remain weak (below 100/200-day and negative MACD). Valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Retail & distribution footprint

A broad retail and distribution network serving Latin American farmers is a durable competitive asset: it creates recurring product demand, local customer relationships and logistical scale that support stable revenue streams, higher share-of-wallet and resilience to single-market shocks.

Strategic divestment to deleverage

Divesting non-core Crop Care assets to Patria is a structural move to reduce leverage and fixed costs while preserving commercial ties. Proceeds earmarked for deleveraging improve solvency and free cash priorities, enabling focus on core retail and biologicals businesses long-term.

Restructuring ratification and leadership change

Court‑ratified restructuring and trade payable rescheduling address supply‑chain and creditor pressures, potentially stabilizing operations. A planned CEO transition provides an opportunity to reset strategy and execution, which can materially improve governance and turnaround prospects over months.

Negative Factors

Severe revenue collapse and negative margins

A dramatic drop in scale and deeply negative operating margins materially weaken unit economics: fixed costs are harder to absorb, supplier and customer leverage shifts, and restoring profitable volumes will require sustained demand recovery and margin improvement to reestablish financial viability.

Negative equity and contracted asset base

Negative equity and a much smaller asset base constrain financial flexibility: borrowing capacity and covenant headroom shrink, creditor influence rises, and the company may be forced into asset sales or dilutive funding, limiting investment in the retail network and long‑term growth.

Persistent cash burn and volatile cash generation

Sustained negative operating and free cash flow elevates refinancing and liquidity risk. Ongoing cash burn reduces ability to fund inventory, working capital and capital expenditures, making operational normalization dependent on durable cash generation or successful, non‑recurring balance sheet remedies.

Lavoro Limited Business Overview & Revenue Model

Company Description

Lavoro Limited operates as an agricultural inputs retailer. It sells agricultural inputs, including seeds, fertilizers and specialty products, crop protection products, and others for the agricultural industry. The company also produces specialty fertilizers, crop protection products, and biological crop inputs. It operates in Brazil, Colombia, and Uruguay. The company sells its products through its physical stores and digital. Lavoro Limited was founded in 2017 and is based in Sao Paulo, Brazil.

How the Company Makes Money

Lavoro Limited generates revenue primarily through the sale of agricultural inputs such as seeds, fertilizers, and crop protection products. The company leverages its extensive distribution network to reach a wide customer base, including individual farmers and large agricultural enterprises. Key revenue streams include direct sales of products as well as strategic partnerships with manufacturers and suppliers to offer competitive pricing and exclusive product lines. Additionally, Lavoro Limited may engage in value-added services such as consulting and agronomic support, further enhancing its revenue model and customer loyalty.

Lavoro Limited Financial Statement Overview

Summary

Latest year shows a severe deterioration: revenue collapsed (~1.14B vs. ~9.39B prior year), margins are deeply negative (net margin ~-41%, EBIT margin ~-32%), equity turned negative (~-283M), and operating/free cash flow are negative (OCF ~-160M; FCF ~-165M). Earlier profitability and occasional positive cash flow are outweighed by the most recent reset and elevated financing risk.

Income Statement

Profitability has deteriorated sharply in the latest annual period: revenue fell to ~1.14B (vs. ~9.39B prior year), while margins are deeply negative (net margin ~-41% and EBIT margin ~-32%). The business has a track record of stronger results earlier in the period (2021–2022 showed positive net income and healthier operating margins), but the most recent year reflects a severe step-down in scale and significant operating losses, which overwhelms the earlier progress.

Balance Sheet

Financial risk is elevated due to negative equity in the latest year (stockholders’ equity ~-283M), which makes leverage structurally strained even though total debt is lower (~380M vs. ~1.85B prior year). Total assets also contracted materially (~788M vs. ~8.35B), indicating a significantly smaller balance sheet and reduced cushion against volatility. Prior years showed positive equity and manageable-to-high leverage, but the latest shift to negative equity is the key weakness.

Cash Flow

Cash generation weakened meaningfully in the latest year, with operating cash flow of about -160M and free cash flow of about -165M, pointing to ongoing cash burn. That said, cash flow performance has been mixed historically (positive operating and free cash flow in 2024 and 2021, but negative in 2022 and 2020), suggesting volatility rather than a stable cash-producing profile. The current direction is the main concern.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.08B	1.14B	9.39B	9.35B	7.75B	5.10B
Gross Profit	1.37B	158.37M	1.34B	1.73B	1.33B	735.89M
EBITDA	387.04M	-337.88M	411.68M	594.52M	853.01M	165.21M
Net Income	-944.45M	-466.09M	-762.46M	-260.71M	78.17M	38.39M
Balance Sheet
Total Assets	9.06B	787.77M	8.35B	7.52B	5.69B	4.40B
Cash, Cash Equivalents and Short-Term Investments	510.86M	94.29M	911.34M	564.29M	254.41M	459.46M
Total Debt	1.87B	380.33M	1.85B	1.15B	865.80M	317.54M
Total Liabilities	7.97B	1.07B	6.99B	5.41B	4.02B	2.93B
Stockholders Equity	870.12M	-283.29M	1.12B	1.86B	1.45B	1.35B
Cash Flow
Free Cash Flow	-75.47M	-165.16M	51.33M	42.69M	-292.26M	18.88M
Operating Cash Flow	20.48M	-160.30M	165.75M	108.07M	-244.56M	53.82M
Investing Cash Flow	-218.57M	12.59M	-318.27M	-220.73M	-293.95M	-393.36M
Financing Cash Flow	145.53M	73.15M	489.52M	448.73M	333.47M	640.50M

Lavoro Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVRO, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 0.90, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.26 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LVRO.

Lavoro Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAN	68 Neutral	$1.09B	8.60	42.00%	12.33%	16.52%	141.96%
SMG	62 Neutral	$3.75B	43.75	―	4.52%	-3.93%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPI	58 Neutral	$462.69M	-2.09	-33.37%	―	8.88%	-349.99%
BIOX	49 Neutral	$37.94M	-0.58	-20.52%	―	-27.90%	-4194.67%
LVRO	45 Neutral	$142.10M	-0.33	―	―	―	―
AVD	45 Neutral	$149.17M	-1.28	-40.84%	―	-4.29%	-276.74%

Lavoro Limited Corporate Events

Lavoro Swings to R$1.6 Billion Loss and Negative Equity in Interim December 2024 Results

On December 29, 2025, Lavoro Limited filed an interim balance sheet and income statement for the six months ended December 31, 2024, showing essentially flat total assets of R$8.2 billion compared with June 30, 2024, but a significant deterioration in equity, which swung from positive R$1.36 billion to a negative R$226 million as accumulated losses deepened. The interim results reveal a sharp downturn in profitability, with revenue falling to R$4.37 billion from R$5.43 billion a year earlier and the company posting a net loss of R$1.61 billion versus a R$61.8 million loss in the prior-year period, driven by much higher selling, general and administrative expenses and increased finance costs, developments that heighten balance sheet pressure and may raise concerns among creditors, shareholders and other stakeholders about Lavoro’s capital structure and financial resilience.

The most recent analyst rating on (LVRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.

Lavoro Sells Controlling Stake in Crop Care Units to Patria Funds to Cut Debt

On December 19, 2025, São Paulo-based Lavoro Limited announced that its indirect subsidiary Lavoro Uruguay S.A. has signed definitive agreements to separate and sell a controlling stake in its Crop Care segment companies—Agrobiológica, Cromo Química and Union Agro—to funds managed by Patria Investments Limited, a transaction unanimously backed by Lavoro’s independent directors. The divestment, which excludes Perterra that will remain wholly owned, is designed to support Lavoro’s broader restructuring efforts to right-size fixed costs, improve operational efficiency and sharpen focus on its core retail and biologicals businesses, with proceeds earmarked primarily to deleverage the balance sheet and enhance liquidity while keeping the commercial relationship with the Crop Care businesses largely intact.

The most recent analyst rating on (LVRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.

Lavoro Limited Announces Restructuring Plan Ratification and Leadership Changes

On November 25, 2025, Lavoro Limited announced the court ratification of its out-of-court restructuring plan for its subsidiary, Lavoro Brazil, which aims to reschedule approximately R$2.5 billion in trade payables to agricultural input suppliers. This plan is expected to support Lavoro Brazil’s operations and mitigate supply chain risks. Additionally, Lavoro is undergoing executive leadership changes, with Marcelo Pessanha set to succeed Ruy Cunha as CEO on December 1, 2025. The company is also in advanced discussions to sell certain Crop Care assets, which could enhance liquidity and reduce financial leverage.

The most recent analyst rating on (LVRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.

Lavoro Limited Faces Nasdaq Non-Compliance Notice Over Form 20-F Delay

On November 19, 2025, Lavoro Limited received a non-compliance notice from Nasdaq due to a delayed filing of its Form 20-F for the year ended June 30, 2025. The delay is attributed to complexities associated with the EJ Plan announced in June 2025. Although this notification does not immediately affect the company’s Nasdaq listing, Lavoro must submit a compliance plan by November 28, 2025, to address the issue. Nasdaq has previously granted an exception until December 29, 2025, for the company to file interim financial information, with any further exceptions limited to 180 days from the initial delinquent filing date.

The most recent analyst rating on (LVRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.

Lavoro Limited Faces Revenue Decline Amid Restructuring Efforts

Lavoro Limited has announced preliminary unaudited financial results for the fiscal year ending June 30, 2025, revealing a 34% year-over-year decline in revenue to approximately $6.2 billion, primarily due to inventory shortages in the Brazil Ag Retail segment. The company is undergoing an out-of-court restructuring plan, with court ratification expected by late November 2025, which has delayed the filing of its Annual Report on Form 20-F. The restructuring plan has gained increased support from creditors, now at 64%, up from 52% in September 2025. The financial results and restructuring efforts underscore challenges and strategic shifts within Lavoro’s operations, impacting its market positioning and stakeholder relations.

The most recent analyst rating on (LVRO) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.