Ahead of 2027 profitability target, Jumia’s revenue grows 25% in Q2 2025

Jumia, Africa’s prominent online retailer, literally said, “Hold my beer and watch me blow your mind.” The ecommerce company reported a $45.6 million revenue in the second quarter of 2025 compared to $36.5 million a year ago, being on track to achieve breakeven in the fourth quarter of 2026, and delivering full-year profitability in 2027.

In summary, the turnaround is remarkably impressive, better than first-quarter reports, demonstrating considerable improvements in almost every area of the business.

The company attributed the revenue increase to strong usage growth and increases in take rate, but partially offset by lower commissions from third-party corporate sales in Egypt.

First-party sales revenue was $23.6 million, up 47% year-over-year both on a reported and constant currency basis, driven by strong momentum with key international brands, such as Starlink or Adidas.

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“Our second quarter results demonstrate continued momentum in our core consumer business, with robust usage growth and strong engagement across markets. This reinforces our confidence in reaching our strategic goal to break even on a Loss before Income tax basis in the fourth quarter of 2026 and achieving full-year profitability in 2027,” said CEO Francis Dufay, who sounded quite confident.

“Based on current trends, we are raising our full-year 2025 guidance and long-term profitability targets. These results underscore the resilience of our platform and our focus on profitable growth and operational excellence.”

Key takeaways:

• Jumia’s reported revenue of $45.6 million for Q2 2025, up 25%
• Operational losses declined to $16.5 million, down 18%
• Quarterly active users grew to 2.2 million for the first time in a while, adding 200k customers. It hovered around 1.9 – 2 million previously

The value of total orders (GMV) surged to $180.2 million, with the number of orders increasing 4% year-over-year to 5 million. Adjusted for perimeter effects, physical goods GMV and orders grew by 10% and 18% year-over-year, respectively. The increase in GMV was driven by robust consumer demand, partially offset by lower corporate sales in Egypt.

This quarter, Jumia attracted 2.2 million customers compared to 2 million in Q1 2025. It will continue to leverage low-cost acquisition channels involving radio jingles, SEO and CRM strategies to retain customers.

Jumia has taken several steps to improve its financial performance, including exiting non-core markets like South Africa and Tunisia and raising capital through a secondary share offering. However, achieving profitability remains a significant challenge due to ongoing economic uncertainties. Loss before Income tax was $16.3 million in the second quarter of 2025, as compared to $22.5 million in the second quarter of 2024

The improvement in loss before income tax was primarily driven by a decrease in operating expense,a positive impact on gross profit and an improvement in net finance result, driven by net foreign exchange gains. To improve order volume, the company has discontinued its emphasis on digital products sold through the JumiaPay App, which contributes to high order volumes with limited revenue impact. The strategy is to expand into secondary cities to deliver results.

Regarding cash efficiency, Jumia has a cash balance of $95.6 million, a liquidity position of $98.3 million and $2.7 million in term deposits. The company said the liquidity position decreased by $12.4 million in the second quarter of 2025, compared to a decrease of $8.7 million in the second quarter of 2024 and a decrease of $23.2 million in the first quarter of 2025.

JumiaPay transactions reached $1.4 million by June 2025, down 23% year-over-year. The decline is due to their reduced emphasis on the digital product sold through the app. Today, Jumia’s share price has risen by 25%, demonstrating a high level of shareholder confidence. The stock currently trades at $5.75 at the time of this report.