E-commerce giant Jumia reported narrowing losses and accelerating revenue growth in Q2 2025, driven by stronger consumer demand in key African markets. Revenue for the period jumped 25% to $45.6 million, up from $36.5 million the previous year, according to its SEC filing.
The jump was driven largely by robust trading in Nigeria and an improved product mix across core markets. Jumia saw operating losses fall by 18% to $16.5 million. The adjusted EBITDA loss narrowed 17% to $13.6 million, while the loss before income tax fell 28% to $16.3 million.
This quarter’s results signal that its restructuring and operational investments are beginning to pay off. Over the past year, Jumia’s aggressively streamlined, including retreats from unprofitable markets and a sharp focus on core product categories. The company has invested heavily in its logistics arm—now spun out as a standalone revenue centre—helping to contain costs even as it faces mounting pressure from global rivals like Temu.
Gross merchandise volume (GMV) for the quarter climbed 6% year-over-year to $180.2 million (5% in constant currency), with GMV growth for physical goods in core markets (excluding South Africa and Tunisia) reaching 10%, underscoring the strength of Jumia’s physical goods segment.
Orders for physical goods surged 18% year-over-year, highlighting rising consumer engagement, while quarterly active customers ordering physical goods rose 13%—an indication, Jumia said, of sustained customer retention.
Gross items sold from international sellers grew 36% year-over-year, reflecting growing cross-border merchant participation and demand for product variety from African consumers.
Net cash flow used in operating activities was $12.7 million, down from $21.2 million in Q1 2025, contributing to a liquidity decrease of $12.4 million in Q2 2025, compared to $8.7 million in Q2 2024. This reflects disciplined cost management and a $4.1 million positive contribution from working capital.
The company ended the quarter with $98.3 million in liquidity, still substantial, though down from the prior year, with the rate of decrease slowing compared to $23.2 million in Q1 2025. While this is adequate for the near term, Jumia’s continued cash burn means it will need to reach profitability or raise new funds before this cushion erodes further.
Performance in Nigeria stood out, with orders up 25% and GMV surging 36% year-over-year. However, some softness was noted in Egypt, largely attributed to weaker corporate sales. Excluding corporate transactions, GMV in reported currency accelerated 24% year-over-year, a sign of underlying strength in consumer sectors.
CEO Francis Dufay described the quarter as a period of “continued momentum,” citing improved top-line growth, disciplined cost controls, and a strengthened marketplace business.
He reaffirmed confidence in achieving break-even on a loss-before-tax basis by the fourth quarter of 2026 and achieving full-year profitability by 2027. The company raised its full-year 2025 guidance and long-term profitability targets, signalling growing expectations for both growth and margin improvement. However, these are long-term, forward-looking statements. Investors may view the ongoing reduction in losses and improved working capital as positive, but concerns about growth sustainability, margin improvement, currency risks, and the competitive environment remain live.
Nonetheless, Jumia’s Q2 results demonstrate the company’s increasing maturity as it strives for scalable profitability across Africa’s fragmented e-commerce landscape. The narrowing losses, sequential improvement in net cash flow used in operating activities, and resilient growth in core markets represent early wins for management’s renewed focus on operational excellence and sustainable expansion.
Whether Jumia can sustain this momentum, particularly amid macroeconomic uncertainties and the competitive landscape, remains the key question for the company going forward.
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