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Lavoro Limited (LVROF)
OTHER OTC:LVROF
US Market
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Lavoro Limited (LVROF) AI Stock Analysis

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LVROF

Lavoro Limited

(OTC:LVROF)

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Underperform 38 (OpenAI - 5.2)
Rating:38Underperform
Price Target:
$0.01
▲(0.00% Upside)
Action:Reiterated
Date:07/07/26
The score is driven primarily by very weak financial performance (sharp revenue decline, large losses, negative equity, and cash burn), which indicates elevated execution and financing risk. Technicals further weigh on the rating, with the stock trading well below key moving averages and negative MACD signaling a strong downtrend. Valuation does not provide support given a negative P/E and no dividend yield data.
Positive Factors
Agricultural inputs market exposure
Serving crop producers in Latin America ties the business to essential, recurring demand for seeds, fertilizer and crop inputs. That structural end-market stability supports steady long-term volume potential and reduces exposure to discretionary consumer cycles.
Negative Factors
Negative equity
Reported negative shareholders' equity is a structural balance-sheet impairment that constrains financing options, increases insolvency risk, and complicates creditor negotiations. It reduces the firm's ability to absorb shocks and limits long-term investment capacity without recapitalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Agricultural inputs market exposure
Serving crop producers in Latin America ties the business to essential, recurring demand for seeds, fertilizer and crop inputs. That structural end-market stability supports steady long-term volume potential and reduces exposure to discretionary consumer cycles.
Read all positive factors

Lavoro Limited (LVROF) vs. SPDR S&P 500 ETF (SPY)

Lavoro Limited Business Overview & Revenue Model

Company Description
Lavoro Limited operates as a prominent provider of essential agricultural supplies. The company organizes its business across three primary divisions: Brazil Ag Retail, Latam Ag Retail, and Crop Care. It offers a comprehensive array of farm inputs...
How the Company Makes Money
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Lavoro Limited Earnings Call Summary

Earnings Call Date:Jun 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Negative
The earnings call highlighted significant challenges faced by Lavoro, including a substantial decline in revenue and gross profit across various segments due to inventory shortages and unfavorable market conditions. However, the introduction of a reorganization plan for Lavoro Brazil and positive developments in Latam Ag Retail are seen as steps toward stabilization and future growth.
Positive Updates
Reorganization Plan for Lavoro Brazil
Lavoro Brazil announced a reorganization plan to standardize supplier relationships and extend payment terms, aiming to create a leaner and more resilient business unit.
Negative Updates
Decline in Consolidated Preliminary Revenue
Consolidated preliminary revenue for the second quarter declined 27% year-over-year to BRL 2.25 billion, primarily due to inventory shortages in Brazil Ag Retail.
Read all updates
Q2-2025 Updates
Negative
Reorganization Plan for Lavoro Brazil
Lavoro Brazil announced a reorganization plan to standardize supplier relationships and extend payment terms, aiming to create a leaner and more resilient business unit.
Read all positive updates
Company Guidance
In the recent business update call, Lavoro provided guidance on their fiscal second quarter 2025 performance and strategic initiatives. The company reported a 27% year-over-year decline in preliminary unaudited revenue to BRL 2.25 billion, impacted by severe inventory shortages in Brazil Ag Retail, which also indirectly affected Crop Care revenue. In U.S. dollar terms, revenue fell by 38% to $384 million, exacerbated by a 15% depreciation of the Brazilian real. Segment-wise, Brazil Ag Retail revenue dropped 30% to BRL 1.84 billion, while Crop Care revenue decreased by 30% to BRL 251 million. Latam Ag Retail, however, grew by 4% to BRL 287 million. The company announced an out-of-court reorganization plan to mitigate supply chain disruptions and extend BRL 2.5 billion in supplier trade payables, aiming to enhance operational efficiency and profitability. Gross profit fell by 28% to BRL 366 million, with gross margins contracting by 40 basis points to 16.3%. Despite these challenges, Lavoro remains committed to strengthening supplier relationships and improving operational resilience.

Lavoro Limited Financial Statement Overview

Summary
Financial quality is very weak in the latest period: a sharp revenue contraction (~1.14B vs. ~9.39B prior year), deeply negative profitability (net margin ~-41%, EBIT margin ~-32%), negative equity (~-283M), and negative operating/free cash flow (OCF ~-160M; FCF ~-165M). Earlier years showed intermittent profitability/cash generation, but the latest reset and balance-sheet stress dominate near-term risk.
Income Statement
18
Very Negative
Balance Sheet
20
Very Negative
Cash Flow
24
Negative
BreakdownTTMJun 2025Sep 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue8.33B6.24B9.39B7.75B5.10B2.71B
Gross Profit1.37B867.52M1.34B1.33B735.89M322.20M
EBITDA387.04M-1.85B411.68M853.01M165.21M-36.54M
Net Income-944.45M-2.55B-762.46M78.17M38.39M-108.70M
Balance Sheet
Total Assets9.06B4.32B8.35B5.69B4.40B2.66B
Cash, Cash Equivalents and Short-Term Investments510.86M516.48M911.34M254.41M459.46M158.50M
Total Debt1.87B2.08B1.85B865.80M317.54M210.18M
Total Liabilities7.97B5.84B6.99B4.02B2.93B1.81B
Stockholders Equity870.12M-1.55B1.12B1.45B1.35B787.71M
Cash Flow
Free Cash Flow-75.47M-904.69M51.33M-307.17M18.88M-45.27M
Operating Cash Flow20.48M-878.08M165.75M-259.47M53.82M-11.43M
Investing Cash Flow-218.57M68.96M-318.27M-244.69M-393.36M-280.43M
Financing Cash Flow145.53M400.70M489.52M299.12M640.50M381.00M

Lavoro Limited Risk Analysis

Lavoro Limited disclosed 1 risk factors in its most recent earnings report. Lavoro Limited reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks

Lavoro Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.36B8.5151.56%9.98%17.47%82.16%
71
Outperform
$456.19M31.825.27%9.55%
64
Neutral
$3.82B52.54-19.33%3.81%-1.95%44.91%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
52
Neutral
$68.37M-1.52-21.86%-0.96%66.81%
43
Neutral
$22.76M-0.09-151.30%-31.20%-796.06%
38
Underperform
$1.15M>-0.011189.81%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LVROF
Lavoro Limited
0.01
-2.01
-99.50%
AVD
American Vanguard
2.56
-1.88
-42.34%
UAN
CVR Partners
126.60
40.55
47.12%
IPI
Intrepid Potash
33.75
2.72
8.77%
SMG
Scotts Miracle-Gro Company
66.13
8.24
14.24%
BIOX
Bioceres Crop Solutions
0.36
-3.01
-89.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 07, 2026