Jumia Technologies AG reported third‑quarter 2025 revenue of $45.6 million, a 25 percent increase from the $36.4 million earned in the same period last year. The jump was driven by a 34 percent rise in physical goods orders, largely fueled by accelerated demand in Nigeria and a rebound in consumer spending across its core markets. In constant‑currency terms, revenue grew 22 percent, underscoring the strength of underlying demand after accounting for exchange‑rate fluctuations.
Gross merchandise volume (GMV) climbed 21 percent year‑over‑year to $170.5 million, reflecting a 26 percent lift when excluding the recently exited South Africa and Tunisia markets. The GMV growth was supported by a 30‑34 percent increase in orders, but margin compression to 12 percent from 14 percent in Q3 2024 was attributed to lower corporate sales in Egypt and higher logistics costs in secondary cities.
The company’s loss before income tax narrowed to $17.7 million, a modest improvement from the $23.4 million loss reported in Q3 2024. Cash burn fell to $12.4 million, down from $26.8 million the prior year, as disciplined cost management and operational efficiencies offset the higher volume of orders. The narrowing loss reflects both higher revenue and tighter expense control, but the company remains in the red as it continues to invest in its logistics network and payment services.
Management reaffirmed its 2025 guidance, projecting physical goods orders growth of 25‑30 percent and GMV growth of 15‑20 percent for the full year. CEO Francis Dufay emphasized that Jumia has reached an inflection point, stating, “We believe Jumia has reached an inflection point… We are on track to reach breakeven on a loss‑before‑income‑tax basis in Q4 2026 and achieve full‑year profitability in 2027.” The guidance signals confidence in sustained demand and the effectiveness of cost‑control initiatives.
Investor sentiment was muted following the results. The widened 2025 loss forecast—now projected at $50‑55 million versus the prior $45‑50 million range—combined with a reported revenue miss against a $50 million analyst forecast, led to a negative market reaction. Analysts noted that while revenue growth was solid, the higher projected losses and margin compression raised concerns about the timeline to profitability.
Overall, Jumia’s Q3 2025 performance demonstrates a clear acceleration in core consumer business, with significant gains in orders and GMV. The company’s ability to narrow losses and reduce cash burn indicates progress toward its 2027 profitability target, but the widened loss forecast and margin pressure highlight the challenges that remain as it scales its logistics and payment platforms across Africa.
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