Lavoro Ltd. (Nasdaq: LVRO, LVROW) has announced preliminary unaudited financial results for the second quarter of fiscal 2025. The company reported consolidated revenue of R$2.25 billion, reflecting a 27% decline compared to the same period last year. In U.S. dollar terms, this equates to $384.4 million, a 38% decrease year-over-year, exacerbated by a 15% depreciation of the Brazilian real. The decline in revenue is primarily attributed to inventory shortages in Brazil's agricultural retail sector, which led to booking cancellations and indirectly impacted Crop Care revenue. Alongside this, Lavoro's consolidated gross profit saw a 28% reduction, amounting to R$366.9 million. Amidst these financial challenges, Lavoro has reached an out-of-court restructuring agreement with principal suppliers. This agreement includes a multi-year inventory financing framework and the extension of payment terms, positioning the company for recovery. Lavoro has withdrawn its fiscal 2025 guidance, citing complexities associated with its restructuring plan and financial closing procedures.