Cash conversion efficiency is poor, highlighted by a $735.8 million operating cash outflow in 2025Q1 that significantly diverged from the company's reported net loss.
| Cash from Operations | 20.48M | -160.3M | 165.75M | 108.07M | -259.47M | 53.82M | -11.43M |
| Operating CF Margin % | - | -14.08% | 1.76% | 1.16% | -3.35% | 1.06% | -0.42% |
| Operating CF Growth % | 31.58% | -196.71% | 53.38% | 141.65% | -582.07% | 570.78% | - |
| Net Income | -944.45M | -466.09M | -810.62M | -260.71M | 140.42M | -46.37M | -108.7M |
| Depreciation & Amortization | 180.92M | 28M | 178.98M | 140.57M | 118.51M | 53.43M | 36.66M |
| Stock-Based Compensation | 11.98M | 0 | 15.65M | 14.53M | 0 | 0 | 0 |
| Deferred Taxes | 416K | 0 | 0 | -27.15M | 32.66M | 24.68M | -53.38M |
| Other Non-Cash Items | 1.12B | 264.3M | 287.06M | 548.23M | 40.88M | 20.76M | 137.06M |
| Working Capital Changes | -476.5M | 13.49M | 494.69M | -307.4M | -591.94M | 1.33M | -23.07M |
| Change in Receivables | -158.72M | 205.26M | -425.4M | -608.55M | 19.56M | 262.67M | -88.58M |
| Change in Inventory | 713.23M | 128.98M | 135.34M | 49.74M | -721.6M | 5.75M | -19.92M |
| Change in Payables | -803.35M | -308.18M | 1.02B | -117.57M | 273.61M | -316.57M | -46.85M |
| Cash from Investing | -218.57M | 12.59M | -318.27M | -220.73M | -244.69M | -393.36M | -280.43M |
| Capital Expenditures | -95.95M | -4.86M | -114.43M | -65.38M | -47.7M | -34.94M | -33.84M |
| CapEx % of Revenue | 1.06% | 0.43% | 1.22% | 0.7% | 0.62% | 0.69% | 1.25% |
| Acquisitions | -138.03M | -5.98M | -222.96M | -157.44M | -198.31M | -362.66M | -247.15M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 15.4M | 23.42M | 19.12M | 2.08M | 1.31M | 4.24M | 551K |
| Cash from Financing | 145.53M | 73.15M | 489.52M | 448.73M | 299.12M | 640.5M | 381M |
| Debt Issued (Net) | -574.06M | -261.61M | 111.46M | -67.14M | 270.56M | -14.59M | -111.01M |
| Equity Issued (Net) | 0 | 0 | 0 | 1000K | 1000K | 1000K | 1000K |
| Dividends Paid | -5.03M | 0 | -4.07M | -2.28M | -139.51M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 724.62M | 334.76M | 382.13M | 457.27M | -34.35M | 0 | 0 |
| Net Change in Cash | -53.45M | -100.19M | 347.04M | 309.88M | -205.04M | 300.96M | 89.13M |
| Free Cash Flow | -75.47M | -165.16M | 51.33M | 42.69M | -307.17M | 18.88M | -45.27M |
| FCF Margin % | -0.83% | -14.5% | 0.55% | 0.46% | -3.97% | 0.37% | -1.67% |
| FCF Growth % | 8.04% | -421.78% | 20.22% | 113.9% | -1726.6% | 141.71% | - |
| FCF per Share | -0.66 | -1.46 | 0.45 | 0.38 | -2.32 | 0.14 | -0.34 |
| FCF Conversion (FCF/Net Income) | 0.08x | 0.34x | -0.22x | -0.41x | -3.32x | 1.40x | 0.11x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High credit delinquency exposure
According to recent financial disclosures, Lavoro's operating cash flow frequently diverges from net income, as evidenced by the 2025Q1 period where the company reported a net loss of $248.5 million alongside a significantly larger operating cash outflow of $735.8 million, highlighting poor cash conversion quality.
The persistent gap between net income and operating cash flow suggests that accounting earnings are not capturing the true cash-burning nature of the business model. Investors should monitor whether this divergence stems from aggressive revenue recognition practices or the inherent difficulty in collecting cash from farmers during periods of commodity price weakness.
As reported in quarterly filings, Lavoro's working capital dynamics are highly erratic, with a massive $524.4 million outflow in 2025Q1 following a $843.7 million inflow in 2024Q4, illustrating the extreme sensitivity of the company's liquidity to the timing of seasonal agricultural input cycles and farmer payment schedules.
These violent swings in working capital suggest that the company's cash position is hostage to the Brazilian harvest cycle and the creditworthiness of its customer base. The reliance on barter arrangements appears to create significant timing mismatches that complicate the company's ability to maintain a stable cash buffer.
Based on the provided cash flow data, Lavoro's free cash flow trajectory is highly inconsistent, oscillating between a positive $649.4 million in 2024Q4 and a negative $741.2 million in 2025Q1, which indicates that the business has yet to achieve a self-sustaining cash generation profile.
The lack of a consistent positive FCF trend suggests that the company's current operational scale is insufficient to cover its fixed costs and capital requirements. This volatility warrants further investigation into whether the business can generate meaningful cash outside of specific, favorable points in the agricultural cycle.
As indicated by historical cash flow statements, Lavoro has consistently deployed capital toward acquisitions, such as the $24.8 million net outflow in 2025Q1, even while the core business struggles to generate positive operating cash flow, suggesting a prioritization of growth over immediate balance sheet preservation.
The continued pursuit of inorganic growth through acquisitions appears to be a significant drain on liquidity at a time when the company's internal cash generation is under pressure. Investors should monitor whether this capital allocation strategy remains viable if credit conditions in the Brazilian agricultural sector continue to tighten.
Quick answers to the most common questions about buying LVRO stock.
Lavoro Limited (LVRO) generated $-160.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Lavoro Limited (LVRO) reported negative free cash flow of $165.2M in 2025, indicating capital requirements exceeded cash from operations.
Lavoro Limited (LVRO) spent $4.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.