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Jumia Technologies AG Reports Q2 Revenue Growth, Narrowed EBITDA Loss Amid Cost Management Strategies
ByAinvest
Friday, Aug 8, 2025 3:39 pm ET1min read
Jumia Technologies AG (JMIA) reported a 24.9% YoY revenue increase to $45.6 million in Q2, exceeding market expectations. The company's adjusted EBITDA loss narrowed by 6% to $13.6 million. Despite this, Wall Street analysts suggest a mixed outlook with target prices showing potential downside. Jumia's cost management strategies have reduced cash burn and improved financial stability.
Jumia Technologies AG (JMIA), the leading e-commerce platform in Africa, reported its financial results for the second quarter of 2025. The company's revenue grew by 24.9% year-over-year (YoY) to $45.6 million, surpassing market expectations. This growth was driven by strong execution and an improved product assortment across key categories, with orders increasing by 18% YoY and quarterly active customers ordering physical goods growing by 13% YoY [1].Despite the revenue growth, Jumia reported an adjusted EBITDA loss of $13.6 million, a 6% improvement from the same period last year. This narrowing of the loss reflects the company's disciplined cost management and ongoing operational efficiencies, with cash burn decreasing to $12.4 million in Q2 2025 from $23.2 million in Q1 2025 [2].
Wall Street analysts have expressed a mixed outlook for Jumia. While some analysts have raised their target prices, others remain cautious, pointing to potential downside risks. The company's cost management strategies have been credited with improving its financial stability, but the mixed analyst sentiment underscores the challenges ahead.
Looking ahead, Jumia has raised its full-year 2025 guidance and long-term profitability targets. The company is focused on reaching its strategic goal of breakeven on a Loss before Income tax basis in the fourth quarter of 2026 and achieving full-year profitability in 2027 [2].
References:
[1] https://seekingalpha.com/news/4481150-jumia-technologies-ag-reports-q2-results
[2] https://www.morningstar.com/news/accesswire/1057561msn/jumia-reports-second-quarter-2025-results
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