Lavoro Limited (LVROF) AI Stock Analysis

Lavoro Limited

(Other OTC:LVROF)

Select Model

Rating:37Underperform

Price Target:$0.01▲(900.00% Upside)

Action:reiterated

Date:07/07/26

Lavoro Limited receives the minimum possible score (37) due to severe structural and financial instability. The rating is driven primarily by an alarming revenue collapse, negative equity, and heavy cash burn. The stock's extremely bearish technical downtrend and highly volatile, deeply unprofitable valuation further cement its high-risk profile.

Positive Factors

Agricultural inputs market exposureServing 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 equityReported 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.

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

Market Cap: $114.97K
Dividend Yield: ―
Average Volume (3M): 1,594
Price to Earnings (P/E): 0.0
Beta (1Y): 7.75
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 2,975
Sector: Basic Materials
Sector Strength: 61
Industry: Agricultural Inputs

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, e...

How the Company Makes Money

null

Lavoro Limited Earnings Call Summary

Earnings Call Date:Jun 17, 2025(Q2-2025)|% Change Since:-99.96%|Next Earnings Date:May 31, 2023

Earnings Call SentimentNegative

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.

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 performance is critically weak, reflecting severe distress. The company suffers from a massive 87% revenue contraction, deeply negative margins, negative stockholders' equity, and unsustainable operating cash burn.

Income Statement

10Very Negative

Balance Sheet

15Very Negative

Cash Flow

12Very Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Sep 2024	Sep 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	8.33B	6.24B	9.39B	9.35B	7.75B	5.10B
Gross Profit	1.37B	867.52M	1.34B	1.73B	1.33B	735.89M
EBITDA	387.04M	-1.85B	411.68M	594.52M	853.01M	185.43M
Net Income	-944.45M	-2.55B	-762.46M	-260.71M	78.17M	38.39M
Balance Sheet
Total Assets	9.06B	4.32B	8.35B	7.52B	5.69B	4.40B
Cash, Cash Equivalents and Short-Term Investments	510.86M	516.48M	911.34M	564.29M	254.41M	459.46M
Total Debt	1.87B	2.08B	1.85B	1.15B	865.80M	317.54M
Total Liabilities	7.97B	5.84B	6.99B	5.41B	4.02B	2.93B
Stockholders Equity	870.12M	-1.55B	1.12B	1.86B	1.45B	1.35B
Cash Flow
Free Cash Flow	-75.47M	-904.69M	51.33M	42.69M	-307.17M	18.88M
Operating Cash Flow	20.48M	-878.08M	165.75M	108.07M	-259.47M	53.82M
Investing Cash Flow	-218.57M	68.96M	-318.27M	-220.73M	-244.69M	-393.36M
Financing Cash Flow	145.53M	400.70M	489.52M	448.73M	299.12M	640.50M

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.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk

1.Text to select risk factors from:Q2, 2025

Lavoro Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

LVROF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTVA	74Outperform	$7.77B	51.28	4.08%	0.93%	3.70%	-26.39%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ICL	60Neutral	$5.91B	18.76	5.02%	4.50%	10.92%	-16.91%
AVD	44Neutral	$32.45M	-0.58	-27.83%	―	-3.54%	56.67%
FMC	42Neutral	$964.39M	-0.19	-308.88%	5.16%	-21.99%	-677.23%
LVROF	37Underperform	$114.59K	0.00	1189.81%	―	―	―
BIOX	34Underperform	$13.15M	-0.06	-216.09%	―	-26.10%	14.85%

* Basic Materials Sector Average

Performance Comparison

LVROF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LVROF	Lavoro Limited	0.01	-1.31	-99.24%
AVD	American Vanguard Corporation	1.10	-3.57	-76.45%
FMC	FMC Corp	6.20	-7.62	-55.14%
ICL	Icl Group Ltd.	4.58	-1.77	-27.85%
BIOX	Bioceres Crop Solutions	0.21	-1.65	-88.82%
CTVA	Corteva	11.64	2.42	26.19%

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

Lavoro Limited AI Stock Analysis