Lavoro Limited (NASDAQ:LVRO) recently disclosed its earnings for the second quarter of 2025. The company, which is listed on the NASDAQ exchange, reported an earnings per share (EPS) of -$0.67, aligning with the anticipated EPS. Despite this, Lavoro's revenue of approximately $303.7 million did not meet the expected $338 million.

During the earnings conference call on June 18, 2025, CEO Ruy Cunha and other key figures provided updates on the company's operations. Despite matching EPS estimates, Lavoro's financials reveal several challenges. The company's negative price-to-earnings (P/E) ratio stands at -1.45, indicating ongoing losses. Its price-to-sales ratio is 0.16, suggesting the market values its sales relatively low compared to its stock price. The enterprise value to sales ratio is 0.30, providing insights into the company's valuation in relation to its revenue.

Moreover, Lavoro's enterprise value to operating cash flow ratio is significantly high at 135.20, pointing to low cash flow in comparison to its enterprise value. The earnings yield is also negative at -0.69%, further emphasizing the company's current lack of profitability. With a debt-to-equity ratio of 2.15, Lavoro is heavily leveraged, indicating a substantial reliance on debt financing. The current ratio is 0.95, highlighting potential difficulties in covering short-term liabilities with current assets.