Lavoro's revenue trajectory remains highly erratic due to seasonal agricultural cycles, with gross margins struggling to exceed 15.6% as of 2025Q1.
| Sales/Revenue | 9.08B | 1.14B | 9.39B | 9.35B | 7.75B | 5.1B | 2.71B |
| Revenue Growth % | -3.7% | -87.88% | 0.48% | 20.67% | 51.94% | 88.4% | - |
| Cost of Goods Sold | 7.71B | 980.39M | 8.05B | 7.62B | 6.42B | 4.36B | 2.38B |
| COGS % of Revenue | - | 86.09% | 85.76% | 81.48% | 82.89% | 85.57% | 88.09% |
| Gross Profit | 1.37B | 158.37M | 1.34B | 1.73B | 1.33B | 735.89M | 322.2M |
| Gross Margin % | 15.04% | 13.91% | 14.24% | 18.52% | 17.11% | 14.43% | 11.91% |
| Gross Profit Growth % | - | -88.16% | -22.73% | 30.58% | 80.12% | 128.39% | - |
| Operating Expenses | 1.31B | 425.12M | 1.33B | 1.5B | 965.63M | 603.89M | 383.86M |
| OpEx % of Revenue | - | 37.33% | 14.11% | 16.09% | 12.47% | 11.84% | 14.18% |
| Selling, General & Admin | 1.36B | 425.12M | 1.36B | 1.23B | 1.02B | 619.51M | 394.66M |
| SG&A % of Revenue | - | 37.33% | 14.53% | 13.14% | 13.2% | 12.15% | 14.58% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | -4M | 0 | -39.05M | 275.81M | -56.76M | -15.62M | -10.79M |
| Operating Income | 53.19M | -266.75M | 11.91M | 226.87M | 359.87M | 132M | -61.66M |
| Operating Margin % | 0.59% | -23.42% | 0.13% | 2.43% | 4.65% | 2.59% | -2.28% |
| Operating Income Growth % | - | -2339.51% | -94.75% | -36.96% | 172.63% | 314.07% | - |
| EBITDA | 234.12M | -238.75M | 190.89M | 367.44M | 478.38M | 165.21M | -25M |
| EBITDA Margin % | 2.58% | -20.97% | 2.03% | 3.93% | 6.18% | 3.24% | -0.92% |
| EBITDA Growth % | 50.9% | -225.07% | -48.05% | -23.19% | 189.55% | 760.72% | - |
| D&A (Non-Cash Add-back) | 180.92M | 28M | 178.98M | 140.57M | 118.51M | 33.21M | 36.66M |
| EBIT | 206.11M | -365.88M | 232.7M | 453.95M | 734.5M | 132M | -104.78M |
| Net Interest Income | -727.71M | -24.68M | -721.1M | -587.03M | -177.92M | -87.96M | -31.84M |
| Interest Income | 308.5M | 55.9M | 322.22M | 257.85M | 416.15M | 207.21M | 50.52M |
| Interest Expense | 1.04B | 80.59M | 1.04B | 844.88M | 594.08M | 295.17M | 70.1M |
| Other Income/Expense | -883.28M | -179.49M | -822.53M | -617.81M | -219.44M | -85.79M | -113.22M |
| Pretax Income | -830.09M | -446.24M | -810.62M | -390.94M | 140.42M | 46.21M | -174.88M |
| Pretax Margin % | -9.14% | -39.19% | -8.63% | -4.18% | 1.81% | 0.91% | -6.46% |
| Income Tax | 150.98M | 57.67M | -25.62M | -172.26M | 32.66M | 24.68M | -53.38M |
| Effective Tax Rate % | -18.19% | -12.92% | 3.16% | 44.06% | 23.26% | 53.4% | 30.52% |
| Net Income | -944.45M | -466.09M | -762.46M | -260.71M | 78.17M | 38.39M | -108.7M |
| Net Margin % | -10.4% | -40.93% | -8.12% | -2.79% | 1.01% | 0.75% | -4.02% |
| Net Income Growth % | -144.13% | 38.87% | -192.45% | -433.52% | 103.62% | 135.32% | - |
| Net Income (Continuing) | -981.07M | -503.91M | -785M | -218.68M | 107.76M | 21.53M | -121.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 218.21M | 5.6M | 236.4M | 250.24M | 218.08M | 123.06M | 68.92M |
| EPS (Diluted) | -8.31 | -4.13 | -6.71 | -2.29 | 0.59 | 0.29 | -0.82 |
| EPS Growth % | -139.24% | 38.45% | -193.01% | -488.14% | 103.45% | 135.37% | - |
| EPS (Basic) | - | -4.13 | -6.71 | -2.29 | 0.59 | 0.29 | -0.82 |
| Diluted Shares Outstanding | 113.6M | 112.99M | 113.6M | 113.6M | 132.29M | 132.29M | 132.29M |
| Basic Shares Outstanding | 113.48M | 112.99M | 113.6M | 113.6M | 132.29M | 132.29M | 132.29M |
| Dividend Payout Ratio | - | - | - | - | 178.47% | - | - |
High credit delinquency exposure
As reported in recent financial filings, Lavoro's revenue trajectory exhibits extreme quarterly volatility, with figures fluctuating between $1.3 billion and $3.1 billion, reflecting the inherent seasonality of the Brazilian agricultural cycle and the company's heavy reliance on the timing of the Safra and Safrinha planting windows.
The inconsistent top-line performance suggests that Lavoro's growth is less a function of organic market expansion and more a reflection of timing differences in barter-based revenue recognition. Investors should monitor whether the company can achieve consistent year-over-year growth once the impact of its aggressive acquisition-led roll-up strategy stabilizes.
Based on the provided income statement data, Lavoro's gross margins have struggled to maintain stability, recently hovering near 15.6% in 2025Q1, which highlights the company's limited pricing power when competing against global input manufacturers in a commodity-driven agricultural retail environment that is highly sensitive to input cost inflation.
The inability to consistently expand gross margins suggests that Lavoro remains a price-taker in the chemical and fertilizer supply chain. This margin profile warrants further investigation into whether the proprietary Crop Care segment can eventually provide the necessary product differentiation to offset the low-margin nature of third-party distribution.
According to the historical income statement, Lavoro's operating leverage appears severely constrained, as SG&A expenses have consistently remained elevated near $300 million per quarter, frequently outpacing gross profit growth and resulting in negative operating margins that reached -23.42% in recent periods, indicating significant integration-related fixed cost burdens.
The failure of operating income to scale alongside revenue suggests that the company's rapid acquisition strategy has created a bloated cost structure that is not yet optimized for efficiency. Management must demonstrate a clear path to rationalizing these overhead costs to prevent further erosion of the bottom line during cyclical downturns.
As evidenced by the company's financial statements, net income has been consistently negative, with a significant loss of $248.5 million in 2025Q1, suggesting that the reported earnings quality is heavily impacted by non-operating items, high financing costs, and the amortization of intangible assets from recent acquisitions.
The persistent gap between gross profit and net income implies that Lavoro's business model is currently reliant on external capital to bridge the gap between cash-intensive operations and profitability. Investors should be cautious of the recurring nature of these losses, which may indicate that the underlying business is not yet self-funding.
Based on the reported figures, Lavoro's reliance on barter arrangements and the financing of farmer receivables creates a precarious liquidity profile, as evidenced by the company's $94 million cash position, which may be insufficient to absorb potential credit defaults if the Brazilian agricultural sector faces a sustained downturn.
Short-term risks are amplified by the company's role as a non-bank lender, where rising NPLs could rapidly deplete available liquidity. The market may be underestimating the potential for a liquidity crunch if the conversion of inventory and receivables into cash fails to align with the company's debt service obligations.
Quick answers to the most common questions about buying LVRO stock.
For fiscal year 2025, Lavoro Limited (LVRO) reported total revenue of $1.14B. This represents a 57.9% decline compared to $2.71B in 2020.
Lavoro Limited (LVRO) reported a net loss of $466.1M for the fiscal year ending 2025.
Lavoro Limited (LVRO) reported an operating income of $-266.7M, resulting in an operating profit margin of -23.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Lavoro Limited (LVRO) generated $158.4M in gross profit for the year, representing a gross profit margin of 13.9%. This demonstrates the company's core pricing power and production efficiency.