Jumia shares fall 3.9% despite strong quarterly gains and narrowing losses

Jumia Technologies’ shares closed at $10.14, down 3.98% on Tuesday, even as the pan-African e-commerce company reported strong third-quarter results that beat analyst expectations. The company posted $45.6 million in Q3 2025 revenue, a 25% increase from $36.4 million in the same period last year, driven by stronger marketplace activity and improved logistics efficiency. Gross Merchandise Value (GMV) rose 21% year-over-year to $197.2 million, while physical goods orders climbed 34%. Jumia also saw a 23% rise in active customers, signaling renewed consumer confidence across its major markets.

Operational losses continued to shrink as the company pushed deeper into AI-driven efficiency measures. Jumia’s operating loss narrowed to $17.4 million, a 13% improvement compared to last year’s results.  CEO Francis Dufay reaffirmed the company’s target to reach pre-tax breakeven by Q4 2026, positioning the e-commerce pioneer for a long-term turnaround.

However, the company’s cash position fell by $15.8 million to $82.5 million, raising concerns about liquidity amid Jumia’s cost-optimization efforts. The company now expects GMV growth of 15% to 17% in 2025, signaling a cautious yet steady outlook amid persistent macroeconomic and currency headwinds across African markets.

Despite the solid financial progress, investor confidence remains mixed. Analysts note that the share decline may reflect ongoing doubts about the pace of Jumia’s path to profitability, even as operational metrics improve. Still, the stock’s pre-market rebound suggests that some investors are beginning to reward the company’s disciplined focus on growth and efficiency.