African e-commerce giant Jumia reported a significant improvement in its second-quarter 2025 financial performance, with narrowing losses and accelerating revenue growth signaling early returns from its ongoing restructuring efforts.
According to its latest SEC filing, revenue for the quarter rose 25% year-over-year to $45.6 million, up from $36.5 million in Q2 2024. The growth was largely fueled by stronger consumer demand in Nigeria and an improved product mix across Jumia’s core markets.
Operating losses narrowed by 18% to $16.5 million, while adjusted EBITDA losses fell 17% to $13.6 million. Loss before income tax dropped 28% to $16.3 million. CEO Francis Dufay described the quarter as one of “continued momentum,” marked by disciplined cost controls and renewed top-line growth.
Jumia’s streamlining strategy—focused on scaling back operations in unprofitable markets and concentrating on core product categories—has begun to bear fruit. The company also restructured its logistics operations into a standalone revenue-generating unit, helping to contain costs despite rising competition from international players like Temu.
Gross merchandise volume rose 6% year-over-year to $180.2 million, or 5% in constant currency. GMV for physical goods in Jumia’s core markets (excluding South Africa and Tunisia) climbed 10%, supported by an 18% surge in physical goods orders and a 13% increase in quarterly active customers.
Cross-border trade also saw momentum, with gross items sold from international sellers rising 36%, indicating growing demand for global product variety among African consumers.
Net cash used in operating activities declined to $12.7 million from $21.2 million in Q1 2025, aided by a $4.1 million contribution from working capital. Liquidity stood at $98.3 million by quarter-end—a healthy cushion, albeit lower than the previous year, with the rate of decline slowing to $12.4 million in Q2 from $23.2 million in Q1.
Performance in Nigeria was particularly strong, with orders increasing 25% and GMV soaring 36% year-over-year. In contrast, Egypt showed some weakness due to lower corporate sales, though underlying consumer trends remained positive. Excluding corporate transactions, Egypt’s GMV in reported currency grew 24% year-over-year.
Looking ahead, Jumia reaffirmed its goal of achieving break-even on a loss-before-tax basis by Q4 2026 and full-year profitability by 2027. The company also raised its full-year 2025 guidance and long-term margin targets.
While investors may view the narrowing losses and improved working capital as encouraging signs, key risks remain—including currency volatility, macroeconomic uncertainty, and intensifying competition in Africa’s rapidly evolving e-commerce sector.
Still, Jumia’s Q2 results reflect a company gaining maturity and tightening its operational model. Whether it can maintain this momentum and turn its early wins into lasting profitability will be closely watched in the quarters to come.
