Jumia Technologies reported Q2 2025 earnings with revenue of $45.6m, up 25% YoY, and a net loss of $16.6m, a 25% improvement from Q2 2024. The company's shares have risen 30% in the past week. Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Multiline Retail industry in the US.
Jumia Technologies AG reported a robust performance in its second quarter of 2025, with revenue rising to $45.6 million, a 25% year-over-year increase. The company's net loss narrowed to $16.6 million, marking a 25% improvement from the same period in 2024. This positive financial performance has contributed to a 30% rise in the company's shares over the past week.
The quarter's growth was driven by several key factors. Jumia's marketplace monetization and international brand partnerships, such as Starlink in Nigeria and Kenya, significantly contributed to the revenue increase. Physical goods orders grew by 18% year-over-year, with a 10% increase in gross merchandise value (GMV), excluding impacts from exited markets. This growth was supported by strong demand, affordability, and expansion into secondary cities, as well as effective marketing strategies.
Jumia's adjusted EBITDA loss narrowed to $13.6 million, and cash burn reduced to $12.4 million, driven by higher revenue and cost reduction initiatives, including a 5% reduction in overall headcount. The company's focus on scaling physical goods e-commerce and reducing reliance on JumiaPay app transactions has led to improved unit economics and disciplined cost management.
Looking ahead, Jumia expects its revenue to grow at an average annual rate of 13% over the next three years, compared to a 9.5% growth forecast for the Multiline Retail industry in the US. The company's strategic focus on expanding into underserved markets and improving operational efficiency positions it well for future growth.
References:
[1] https://www.ainvest.com/news/jumia-q2-2025-navigating-contradictions-inventory-marketing-market-expansion-strategies-2508/
[2] https://www.insidermonkey.com/blog/jumia-technologies-ag-nysejmia-q2-2025-earnings-call-transcript-1587163/
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