Investors cheer as Jumia delivers turnaround surprise in Q2 2025

Jumia’s stock surged 27% in early Thursday trading following the release of its second quarter 2025 earnings, as investors cheered results that signalled steady progress in the e-commerce company’s turnaround strategy.

Shares rose from $4.58 to $5.82, lifting the company’s market capitalisation by roughly $150 million in a single session. The rally follows a quarter in which Jumia delivered revenue growth of 25% year-over-year to $45.6 million, fueled largely by resilient consumer demand in Nigeria and an 18% increase in order volumes.

Operating losses narrowed to $16.5 million, while net cash used in operating activities fell to $12.7 million, a sign of improved working capital discipline. Liquidity ended the quarter at $98.3 million, down from Q1, but with a noticeably slower cash burn rate. Management reaffirmed its target of breaking even by late 2026 and achieving profitability in 2027.

Despite exiting some major African markets and reducing marketing spend, Jumia reported deeper user engagement on its platform. Analysts say this could be a sign that its leaner, more focused strategy is starting to pay off.

However, questions remain over long-term competitiveness, particularly against aggressive entrants like Temu, and whether Jumia can sustain momentum without eroding margins. For now, the strong investor reaction shows markets are willing to give the company the benefit of the doubt at least until its next earnings report.

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