In Q2 2025, e-commerce behemoth Jumia reported reducing losses and increasing revenue growth, fueled by higher customer demand in important African markets.
According to its SEC filing, revenue increased by 25 per cent to $45.6 million from $36.5 million in 2024.
An improved product mix across core markets and strong trading in Nigeria were significant factors in the jump.
Jumia’s operating losses dropped to $16.5 million, an 18 per cent decrease.
Both the loss before income tax and the adjusted EBITDA loss decreased by 28 per cent to $16.3 million and 17 per cent to $13.6 million, respectively.
Jumia’s investment is bearing fruit
The results for this quarter show that its operational and restructuring investments are starting to bear fruit.
Jumia has aggressively streamlined over the past year, retreating from unprofitable markets and concentrating intently on its core product categories.
Despite growing pressure from international competitors like Temu, the company has made significant investments in its logistics division, which has since been spun out as a stand-alone revenue centre, helping to keep costs under control.
The strength of Jumia’s physical goods segment was highlighted by the quarter’s gross merchandise volume (GMV), which increased 6 per cent year over year to $180.2 million (5 per cent in constant currency). GMV growth for physical goods in core markets (apart from South Africa and Tunisia) reached 10 per cent.
Physical product orders increased by 18 per cent
Physical product orders increased 18 per cent year over year, indicating increased consumer engagement, while quarterly active customers placing physical product orders increased 13 per cent, indicating sustained customer retention, according to Jumia.
Increasing cross-border merchant participation and African consumers’ desire for a broader range of products explain the 36 per cent year-over-year growth in gross items sold by foreign sellers.
Net cash flow decreased
From $21.2 million in Q1 2025 to $12.7 million in Q2 2025, net cash flow for operating activities decreased, resulting in a $12.4 million drop in liquidity from $8.7 million in Q2 2024.
This results from careful cost control and a working capital contribution of $4.1 million.
At the end of the quarter, the business had $98.3 million in liquidity, which is still significant but lower than a year earlier.
The decline was slowing down from $23.2 million in Q1 2025. For the time being, this is sufficient, but Jumia’s ongoing cash burn means it will need to turn a profit or find new funding before this buffer erodes any more.
Nigeria’s outstanding performance
Nigeria’s performance was particularly noteworthy, as orders increased by 25 per cent and GMV increased by 36 per cent annually. In Egypt, however, some softness was observed, which was mostly ascribed to lower corporate sales.
A sign of underlying strength in the consumer sectors, GMV in reported currency accelerated 24 per cent year over year when corporate transactions were excluded.
The CEO, Francis Dufay, described the quarter as one of “continued momentum,” pointing to enhanced marketplace business, disciplined cost controls, and improved top-line growth.
Jumia’s outlook
He reiterated his belief that the company will break even on a loss-before-tax basis by the fourth quarter of 2026 and turn a profit for the entire year by 2027.
The company signalled rising growth and margin improvement expectations by raising its long-term profitability targets and full-year 2025 guidance. These are statements that are forward-looking and long-term, though.
Although investors may view the continuous decrease in losses and enhanced working capital favorably, they still have worries about the competitive environment, margin improvement, growth sustainability, and currency risks.
The company’s growing maturity as it aims for scalable profitability across Africa’s fragmented e-commerce landscape is evident in Jumia’s Q2 results.
Early successes for management’s renewed emphasis on operational excellence and sustainable expansion can be seen in the decreasing losses, the sequential improvement in net cash flow used in operating activities, and the robust growth in core markets.
The main question for Jumia moving forward is whether it can maintain this momentum, especially given the competitive environment and macroeconomic uncertainties.