Lavoro Limited (LVRO) AI Stock Analysis

• Market Cap: $22.35M
• Dividend Yield: N/A
• Average Volume (3M): 6.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• 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: 14.36
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.24
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.42
• Revenue Forecast (FY): $1.37B

• Rating: 40 Underperform
• Price Target: $0.29 ▼(-73.73% Downside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is driven primarily by very weak financial performance (sharp revenue contraction, large losses, negative equity, and cash burn). Technical indicators reinforce downside pressure with the stock trading well below major moving averages and negative MACD, despite oversold readings. Valuation is not a clear positive because the negative P/E reflects ongoing losses and there is no dividend yield provided.

Positive Factors

Essential, recurring product mix

Lavoro’s core business supplies essential farm inputs through a retail and distribution network. Essential agricultural products generate recurring demand tied to planting cycles and food production, providing a durable revenue base and resilience versus discretionary businesses.

Regional market focus

Concentration in Latin America exposes Lavoro to large, agriculture-heavy markets where crop input demand is structural. Regional specialization supports tailored supply chains, local relationships and agronomic services that can create customer stickiness and distribution advantages over time.

Prior ability to generate cash

Historical positive operating and free cash flow in selected years shows the business can be cash-generative under normalized conditions. This indicates existing operational leverage and a potential path to restore cash generation if scale, pricing and working capital recover.

Negative Factors

Severe revenue and margin deterioration

A dramatic collapse in revenue and deeply negative margins reflect structural issues in demand, pricing or cost control. Such a step-down impairs fixed-cost absorption, supplier leverage and profitability, making recovery harder and raising the risk that scale economics may not return quickly.

Weak balance sheet / negative equity

Negative shareholders’ equity and a materially smaller asset base mean the company has a thin financial cushion. This elevates refinancing and covenant risk, limits capacity for capital investments or working capital, and reduces strategic flexibility over the medium term.

Ongoing cash burn

Sustained operating and free cash flow deficits indicate the company is burning cash, constraining runway for operations and reinvestment. Persistent cash outflows increase dependence on external financing, which can be costly or dilutive and reduce long-term viability if not reversed.

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

Financial quality is very weak: the latest year shows a sharp revenue collapse (~1.14B vs. ~9.39B), deeply negative profitability (net margin ~-41%, EBIT margin ~-32%), negative equity (~-283M), and negative operating/free cash flow (OCF ~-160M; FCF ~-165M). Earlier periods were stronger, but the most recent results dominate and imply elevated execution and 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	Jun 2025	Sep 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	9.08B	1.14B	9.35B	7.75B	5.10B	2.71B
Gross Profit	1.37B	158.37M	1.73B	1.33B	735.89M	322.20M
EBITDA	387.04M	-337.88M	594.52M	853.01M	165.21M	-68.12M
Net Income	-944.45M	-466.09M	-260.71M	78.17M	38.39M	-108.70M
Balance Sheet
Total Assets	9.06B	787.77M	7.52B	5.69B	4.40B	2.66B
Cash, Cash Equivalents and Short-Term Investments	510.86M	94.29M	564.29M	254.41M	459.46M	158.50M
Total Debt	1.87B	380.33M	1.15B	865.80M	317.54M	210.18M
Total Liabilities	7.97B	1.07B	5.41B	4.02B	2.93B	1.81B
Stockholders Equity	870.12M	-283.29M	1.86B	1.45B	1.35B	787.71M
Cash Flow
Free Cash Flow	-75.47M	-165.16M	42.69M	-292.26M	18.88M	-45.27M
Operating Cash Flow	20.48M	-160.30M	108.07M	-244.56M	53.82M	-11.43M
Investing Cash Flow	-218.57M	12.59M	-220.73M	-293.95M	-393.36M	-280.43M
Financing Cash Flow	145.53M	73.15M	448.73M	333.47M	640.50M	381.00M

Lavoro Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LVRO, the sentiment is Negative. The current price of 1.1 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.87, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 19.49 is Positive, neither overbought nor oversold. The STOCH value of 0.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$1.05B	10.69	35.31%	12.33%	16.52%	141.96%
SMG	62 Neutral	$4.09B	47.68	―	4.52%	-3.93%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPI	58 Neutral	$450.34M	-2.24	-33.37%	―	8.88%	-349.99%
BIOX	48 Neutral	$36.04M	-0.60	-20.52%	―	-27.90%	-4194.67%
AVD	45 Neutral	$142.34M	-1.26	-40.84%	―	-4.29%	-276.74%
LVRO	40 Underperform	$22.35M	-0.06	―	―	―	―

Lavoro Limited Corporate Events

Lavoro to Voluntarily Delist Shares and Warrants from Nasdaq

On February 13, 2026, Lavoro Limited announced it would voluntarily delist its ordinary shares and warrants from the Nasdaq Global Market, with the last expected trading day around February 23, 2026. The company plans to file to deregister these securities and suspend its U.S. reporting obligations, shifting any future trading to private transactions or potential over-the-counter venues.

The board-approved move follows challenging market conditions in Brazil, low trading volumes, and a small public shareholder base that have limited the benefits of a U.S. listing. By exiting the Nasdaq and related reporting regime, Lavoro aims to reduce audit, legal, compliance and management costs that it says now outweigh the advantages for the company and its shareholders, though future liquidity for investors may be further constrained.

The most recent analyst rating on (LVRO) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Lavoro Limited stock, see the LVRO Stock Forecast page.

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.