JMIA

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jumia Technologies AG (NYSE:JMIA) delivered strong operational growth with physical goods orders up 28% and quarterly active customers up 23% year-over-year, both adjusted for perimeter effects. Gross profit expanded 28% year-over-year, with gross profit margin as a percentage of GMV improving by 92 basis points to 14.2%, driven by higher take rates and a favorable category mix shift. Adjusted EBITDA loss narrowed by 36% year-over-year to $8.7 million, demonstrating significant operating leverage and progress toward the Q4 2026 breakeven target. High-margin revenue streams showed robust growth, with marketing and advertising revenue up 88% and value-added services revenue up 61% year-over-year, indicating improved platform monetization. The company secured a $50 million capital raise anchored by a $25 million investment from the International Finance Corporation (IFC), strengthening its balance sheet and de-risking its path to profitability. Fulfillment costs per physical goods order decreased by 7% year-over-year to $2.04, reflecting productivity gains and economies of scale despite temporary fuel surcharges. International sourcing scaled significantly, with gross items sourced internationally up 96% year-over-year, diversifying the supply chain and supporting growth in high-margin categories. Seller adoption of retail media advertising increased to 26% from 19% in the prior year, with management highlighting meaningful headroom for future advertising revenue growth. The company maintained its guidance for Q4 2026 adjusted EBITDA breakeven and positive cash flow, expressing high confidence despite external headwinds. Operational efficiency improved through AI-driven automation, which has expanded quality control coverage to the full catalog and automated SLA monitoring across over 40,000 daily orders. Jumia Technologies AG (NYSE:JMIA) faced significant external headwinds, including supply disruptions in memory chips and CPUs, which impacted the availability of entry-level smartphones and other electronics. GMV growth was tempered by a slowdown in Ivory Coast, where a nearly 60% decline in cocoa farmgate prices reduced purchasing power and negatively impacted demand. Fulfillment costs were negatively impacted by temporary fuel surcharges from local logistics partners, following fuel price increases driven by the war in the Middle East. The company lowered its full-year 2026 GMV growth guidance to between 20% and 30% (from a previous higher range) due to volatility in higher-value categories, and projected Q3 GMV growth of only 15% to 25%. Quarterly cash burn increased to $14.3 million in Q2 2026, up from $12.4 million in Q2 2025, due to a shift in working capital dynamics. First-party sales revenue declined 3% year-over-year, impacted by supply and demand headwinds in higher-value electronic items. Average order value for physical goods decreased to $34.6 from $36.3 in Q2 2025, reflecting a category mix shift towards lower-value items. The company incurred non-recurring termination costs from fulfillment headcount reductions during the quarter, which partially offset cost improvements. The competitive environment in Egypt remains intense, with major competitors investing heavily in quick commerce and groceries, although Jumia is focusing on a different segment. The company's liquidity position decreased to $48.3 million, and while the capital raise will help, the ongoing external volatility and supply chain disruptions persist into the early third quarter of 2026. Warning! GuruFocus has detected 6 Warning Signs with JMIA. Is JMIA fairly valued? Test your thesis with our free DCF calculator. Q: Can you run through the duration assumptions you've embedded in your guidance regarding the supply chain headwinds, cocoa pricing in Ivory Coast, and the Middle East affecting fulfillment costs? Also, on the capital raise, how much of this was a necessity to hit your Q4 expectations versus just fortifying the balance sheet? A: Francis Toufe, CEO: We are keeping a fairly broad range on GMV guidance on purpose because we can't make strong assumptions on when these external factors will end. Fuel prices are out of our control, and the supply disruption in electronics (entry-level smartphones, computing, smart TVs using memory chips) is hard to timeline. We saw some improvement after May, with June better, but clear headwinds persist in Q3. However, gross profit does not track GMV one-for-one, and we remain highly confident in delivering on the bottom line. Regarding the raise, we don't need cash to make it to breakeven. The big trigger was onboarding the IFC, which brings credibility and deep due diligence. We also chose not to go for crazy amounts ($50 million) to be mindful of dilution, but strengthening the balance sheet makes sense given the volatile international environment. Q: You lowered the GMV outlook but held adjusted EBITDA targets. Can you talk about the areas of the business seeing the strongest growth and how this supports profitability targets? Also, on advertising, what are the key drivers to continue expanding penetration and where do you see advertising reaching as a percentage of GMV in the long run? A: Francis Toufe, CEO: Our GMV is impacted by external headwinds, mostly supply of affordable smartphones. However, volumes and gross profit are strongly supported by lower-value categories like home and living, fashion, beauty, and accessories, where take rates are significantly higher than smartphones (4%-6% vs. many times higher). This supported gross profit as a percentage of GMV reaching above 14%, a one-point increase year-over-year. We remain maniacal about cost efficiency, reducing unit costs in fulfillment by 7% year-over-year per order despite surcharges and termination costs. On advertising, we rolled out a new platform and started building revenues from sponsored brands. Seller adoption reached 26% versus 19% last year, showing significant headroom. We deliberately keep high return on ad spend to prioritize vendor activation. Our target is to reach 2% of GMV equivalent in advertising revenue, which is achievable in the medium term. Q: What was GMV in electronics and phones specifically on a year-over-year basis? And can you quantify what overall GMV growth would have been excluding electronics and phones? A: Francis Toufe, CEO: We have not disclosed the specific GMV of electronics and phones, but on page 11 of our slide deck, you can see the share. Phones GMV is between 10% and 20%, and other electronics would be slightly above 20%. You can see a year-over-year decrease in absolute GMV from phones. Interestingly, in items sold, the share of phones is holding better, driven by strong supply of accessories from international vendors in China. The impact on the share of GMV is clearly visible. Q: Is it reasonable to assume the five points of GMV guidance reduction is entirely electronics and phones? A: Francis Toufe, CEO: Yes, that's a fair assumption. That's broadly the idea. Q: Take rate improved nicely relative to GMV. How much of that is a structural change from increasing take rates versus mix shift from electronics and phones? A: Francis Toufe, CEO: We did not change the take rate by category this quarter. All take rate increases happened in Q1, with commissions increased across the board and across countries mid-January. The improved ratio of gross profit above 14% of GMV reflects that increase, with a slight impact from mix shift and better advertising and logistics services sales. Quarter-over-quarter, you have mix shift and the fact that new commissions were implemented only mid-January, so we lost about 20-30 days in Q1 to get the full impact. Q: Has the competitive environment changed meaningfully? Some competitors have moved towards fast-moving consumer goods in primary cities. A: Francis Toufe, CEO: When we look at local platforms with operations on the ground (like Konga, Jiji, Kilimall in Kenya), we see no change in trajectory. In Egypt, which is more competitive, our biggest competitors are investing heavily in quick commerce focused on groceries, which is not our segment. We remain consistent with our strategy of focusing on the lower middle class and smaller towns, opening new cities in the upper Nile Valley. We're fighting different battles. Regarding non-resident platforms like Temu, we saw an increase in traffic in Nigeria due to specific events, but it's going down now. No material change in competition intensity or cost of online bidding. Q: Can you provide more detail on the $50 million capital raise, specifically the IFC investment and how the proceeds will be used? A: Francis Toufe, CEO: The $50 million raise is anchored by a $25 million investment from the International Finance Corporation (IFC), a member of the World Bank Group, along with investments from Axion (one of our largest shareholders) and selected new investors. The IFC brings credibility in the eyes of other institutions and runs deep due diligence on the ground. They invest as a partner to drive impact together, which will also help us get better access and understanding from local regulators. We plan to use the net proceeds to support our next phase of growth, enhance efficiency across core African markets, and strengthen our integrated marketplace and logistics network. Specifically, we plan to gradually increase working capital over Q3 2026 to capture attractive supply opportunities and make targeted investments in fulfillment operations to further reduce unit costs. Q: Can you elaborate on the impact of the external headwinds (supply disruptions, fuel surcharges, cocoa prices) on Q2 results and how you navigated them? A: Francis Toufe, CEO: Q2 faced real external headwinds: supply disruptions in phones and electronics (memory chips and CPU shortages impacting entry-level smartphones around $100), fuel surcharges from local logistics partners, and demand pressure from cocoa farmgate price declines in Ivory Coast (down nearly 60% from early 2026). Despite this, we delivered 23% GMV growth (adjusted for perimeter effects), 28% growth in physical goods orders, and a 36% improvement in adjusted EBITDA loss to $8.7 million. We deliberately chose to protect margins and unit economics rather than chase GMV at the expense of profitability. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Jumia Technologies? Here are five stocks we like better. Jumia delivered stronger operating results in Q2 2026: Revenue rose 14% to $52 million, physical-goods orders increased 28%, gross profit grew 28% to $30.7 million, and the adjusted EBITDA loss narrowed 36% to $8.7 million. Supply disruptions and weaker purchasing power limited growth: Shortages in smartphones and electronics, fuel surcharges, and falling cocoa prices in Ivory Coast led Jumia to reduce its 2026 GMV growth outlook to 20%–30%, despite strong growth in markets including Nigeria, Egypt and Ghana. Jumia maintained its path to profitability and strengthened its balance sheet: The company reiterated its target of adjusted EBITDA break-even and positive cash flow in Q4 2026, while announcing a $50 million capital raise led by a $25 million investment from the International Finance Corporation. Jumia Technologies Stock Jumps: Analyst Update Drives 30% Gain Jumia Technologies (NYSE:JMIA) reported second-quarter 2026 results marked by higher order volumes, expanding gross profit and a narrower adjusted EBITDA loss, while supply disruptions in electronics, fuel surcharges and weaker purchasing power in Ivory Coast weighed on GMV growth. Chief Executive Officer Francis Dufay said the company chose to protect margins and unit economics rather than pursue GMV growth “at the expense of profitability” amid the external pressures. Jumia maintained its target of adjusted EBITDA break-even and positive cash flow in the fourth quarter of 2026, as well as full-year adjusted EBITDA profitability and positive cash flow in 2027. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Jumia’s Turnaround Takes a Page Out of Dollar General’s Strategy Revenue rose 14% year over year to $52 million, or 15% on a constant-currency basis. Marketplace revenue increased 34% to $28.8 million, while third-party sales rose 26% to $23.5 million. First-party sales declined 3% to $22.8 million, reflecting supply and demand pressure in higher-value electronics and the growing mix of third-party marketplace transactions. GMV increased 23% year over year, adjusted for perimeter effects. Physical-goods orders rose 28%, while quarterly active customers increased 23%. The company said repeat behavior improved, with 44% of customers acquired in the first quarter making another purchase within 90 days, compared with 42% for customers acquired in the first quarter of 2025. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Average order value for physical goods fell to $34.60 from $36.30 a year earlier as sales shifted toward lower-value categories including fashion, beauty, home and living. However, gross profit per physical-goods order increased to $4.90 from $4.80. Gross profit climbed 28% to $30.7 million, with gross profit margin reaching 14.2% of GMV, up from 13.3% a year earlier. Dufay said the company benefited from higher take rates in lower-value categories, commission increases introduced in January, and growth in advertising and value-added services. → First Solar’s Profit Engine Faces a New Policy Test in Washington Adjusted EBITDA loss narrowed 36% to $8.7 million from $13.6 million in the second quarter of 2025. Loss before income tax improved 33% to $10.9 million. Marketing and advertising revenue rose 88% to $3.5 million. Value-added-services revenue increased 61% to $1.9 million, supported by warehousing fees. Fulfillment expense per physical-goods order declined 7% to $2.04, despite temporary fuel surcharges and non-recurring termination costs. Technology and content expense decreased 2% year over year to $9 million. General and administrative expense, excluding share-based compensation, fell 5% to $15.2 million. Dufay said shortages of memory chips and CPUs constrained supply of entry-level smartphones and certain other electronics, while air-freight disruptions through the Middle East temporarily affected smartphone supply chains. The company also faced fuel surcharges from logistics partners after fuel-price increases tied to broader oil-market conditions. Jumia said the disruption was concentrated in phones and electronics, which are lower-margin categories. In response to an analyst question, Dufay said phones account for between 10% and 20% of GMV, while other electronics account for slightly more than 20%. He said it was “a fair assumption” that the reduction in GMV guidance was broadly attributable to phones and electronics. In Ivory Coast, physical-goods GMV declined 1% year over year. The company cited a nearly 60% decline in cocoa farm-gate prices from early 2026, which reduced purchasing power among upcountry farmers and cooperatives, as well as electronic-supply disruption and tax reforms affecting vendors. Performance was stronger in several other markets. Nigeria’s physical-goods GMV rose 36%, Kenya’s increased 23%, Egypt’s grew 50% excluding deprioritized corporate sales, and Ghana’s rose 77%. Across the platform, 61% of order volume came from upcountry regions, compared with 59% in the prior quarter. Executive Vice President of Finance and Operations Antoine Maillet-Mezeray said total headcount had declined 11% since March 31 to just over 1,770 employees as of June 30. He said Jumia was using AI-driven automation in areas including logistics, customer service, seller operations, cybersecurity and code-quality workflows. The company said 75% of shipped packages were fulfilled through pickup stations during the quarter, up from 71% a year earlier, adjusted for perimeter effects. Jumia is continuing to expand its delivery and pickup-station networks, particularly outside major urban centers. Jumia also said quarterly active sellers grew 20% year over year. Retail-media advertising adoption reached 26% of sellers, up from 19% a year earlier. Dufay said the company began generating revenue from Sponsored Brands during the quarter and is targeting advertising revenue equal to 2% of GMV over the medium term, compared with 1.6% in the second quarter. The company lowered its 2026 GMV outlook because of uncertainty in higher-value categories. Jumia now expects full-year GMV growth of 20% to 30%, adjusted for perimeter effects, and third-quarter GMV growth of 15% to 25%. It reiterated expected full-year adjusted EBITDA of negative $25 million to negative $30 million and maintained its fourth-quarter break-even and positive-cash-flow targets. Jumia also announced a $50 million capital raise anchored by a $25 million investment from the International Finance Corporation, with participation from existing shareholder AXIAN and selected new investors. Dufay said the company did not need the capital to reach break-even, but viewed the IFC’s participation as an important strategic opportunity and said the funding would strengthen the balance sheet in a volatile environment. Jumia ended the quarter with $48.3 million of liquidity, including $47.4 million in cash and cash equivalents. Its liquidity position declined by $14.3 million during the quarter, compared with a $12.4 million decrease a year earlier, as a $3 million working-capital outflow more than offset improvement in operating losses. Jumia Technologies AG (NYSE: JMIA) operates as a leading e-commerce and technology platform in Africa, facilitating online retail, logistics and digital payments. The company's marketplace connects millions of consumers with a diverse array of sellers offering electronics, fashion, home goods, groceries and more. Beyond its core retail services, Jumia has developed JumiaPay, a payment solution that enables secure transactions both on and off its platform, and Jumia Logistics, which provides end-to-end delivery and fulfillment support across the continent. Jumia serves a broad geographic footprint in Africa, with operations in key markets such as Nigeria, Egypt, Kenya, Morocco, Ghana, Côte d'Ivoire, Uganda, Tunisia and South Africa. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jumia Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Jumia Delivers Continued Operating Leverage, Narrowing Adjusted EBITDA Loss by 36% andGrowing Gross Profit by 28% on 23%[1] GMV Growth; Reaffirms Path to Q4 2026 Breakeven and 2027 Profitability on an Adjusted EBITDA Basis; Announces $50 Million Capital Raise Anchored by the International Finance Corporation, a Member of the World Bank Group LAGOS, NIGERIA / ACCESS Newswire / August 12, 2026 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the second quarter ended June 30, 2026. Financial highlights for the second quarter 2026 Revenue of $52.0 million compared to $45.6 million in the second quarter of 2025, up 14% year-over-year, and up 15% in constant currency, amid a shift from first-party to third-party sales. GMV of $216.3 million compared to $180.2 million in the second quarter of 2025, up 20% year-over-year, and up 15% in constant currency. Adjusted for perimeter effects, GMV grew 23% year-over-year. Gross Profit of $30.7 million compared to $23.9 million in the second quarter of 2025, up 28% year-over-year, and up 31% in constant currency. Operating loss of $12.4 million compared to $16.5 million in the second quarter of 2025, down 25% year-over-year and down 24% in constant currency. Adjusted EBITDA loss of $8.7 million compared to $13.6 million in the second quarter of 2025, down 36% year-over-year, and down 35% in constant currency. Loss before Income tax of $10.9 million compared to $16.3 million in the second quarter of 2025, down 33% year-over-year, and down 34% in constant currency. Liquidity position of $48.3 million, a decrease of $14.3 million in the second quarter of 2026, compared to a decrease of $12.4 million in the second quarter of 2025. Net cash flow used in operating activities of $11.8 million compared to $12.7 million in the second quarter of 2025 and $12.5 million in the first quarter of 2026. The result includes a cash outflow related to an increase in working capital[2] of $3.0 million, compared to a cash inflow related to a decrease in working capital of $4.1 million in the second quarter of 2025. Business highlights for the second quarter 2026 Unless otherwise stated, all reported KPIs are for physical goods and exclude results from Algeria, which was exited in early 2026. $50 million capital raise anchored by a $25 million investment from the International Finance Corporation, a member of the World Bank Group, and including investments by current leading shareholders, as well as selected new investors, announced today. Orders grew 28% year-over-year, reflecting disciplined execution and resilient consumer demand across key categories. Quarterly Active Customers grew by 24% year-over-year, reflecting continued traction in both acquisition and retention. GMV adjusted for perimeter effects increased 23% year-over-year, notwithstanding supply headwinds in higher value categories, specifically phones and electronics, inflationary pressure from fuel prices across markets, and softer demand in Ivory Coast following the decline in cocoa farmgate prices, reflecting resilient underlying demand and effective execution across our marketplace. Nigeria delivered standout performance, with GMV up 36% year-over-year and Orders up 34% year-over-year, driven by continued execution against the market's substantial remaining potential. Gross items sold from international sellers grew 96% year-over-year in the second quarter of 2026, reflecting the continued scaling of our Chinese seller base, as well as growing volumes from our supply base for affordable fashion in Turkey. Company Commentary "Our second quarter results demonstrate the resilience of the model we've built for Africa. Despite real headwinds - supply disruptions in phones and electronics, rising fuel costs, and a demand slowdown in Ivory Coast tied to cocoa prices - GMV and physical goods Orders, each adjusted for perimeter effects, grew 23% and 28%, respectively, year-over-year, and our Adjusted EBITDA loss narrowed by 36% to $8.7 million. Gross profit grew 28% year-over-year, reflecting continued progress in marketplace monetization. Importantly, we deliberately chose to protect our margins and unit economics this quarter rather than chase GMV at the expense of profitability. "Growth was strong across most of our markets, with Nigeria and Ghana delivering another strong quarter and Egypt confirming its sustained recovery. The headwinds we faced don't change our path to profitability. If anything, they reinforce the case for a locally embedded, sea-freight-based model built for exactly this kind of disruption. More broadly, we believe our focus on "value for money" makes Jumia even more relevant to consumers in an inflationary environment, as value-focused platforms tend to gain share when household budgets tighten. "We can't say with certainty how long these headwinds will last, but the second quarter of 2026 proved we have the right fundamentals to navigate this kind of macro uncertainty. The agreed investment anchored by the International Finance Corporation, a member of the World Bank Group, and joined by current leading shareholders and selected new investors, will strengthen our balance sheet as we execute against that plan. We continue to see ourselves firmly on track toward our target of achieving Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, and full-year profitability on an Adjusted EBITDA basis and positive cash flow in 2027." - Francis Dufay, CEO International Environment In the second quarter, two external developments had a tangible impact on our business. First, memory chip and CPU price increases drove a supply disruption in smartphones through the second quarter, affecting our phones category across most markets, with a further slowdown in other electronics subcategories driven by specific supplier shortages. While supply volatility persists into the early third quarter 2026, we continue to mitigate concentration risk by diversifying our supplier base. Second, the war in the Middle East disrupted air freight through the Gulf and, combined with broader oil market dynamics, drove significant fuel price increases across our markets in the second quarter, which our local logistics partners passed through as surcharges, creating a tangible negative impact on our second quarter fulfillment costs. Our strategy of expanding pickup stations across our markets meaningfully limits our exposure to fuel price volatility, with 75% of our shipped packages fulfilled through pickup stations in the second quarter of 2026, up from 71% in the second quarter of 2025, both adjusted for perimeter effects. We continue to monitor the situation closely. We believe that our business fundamentals, which were rebuilt from 2022 to 2025, mostly in tougher times than this, are strong and resilient. We do not expect these developments to change our short- or mid-term Adjusted EBITDA targets or our belief in Jumia's long-term opportunity for growth. SELECTED FINANCIAL INFORMATION Financial Results for the second quarter ended June 30, 2026 (1) See "Non-IFRS Financial and Operating Metrics" for a reconciliation of non-IFRS measures to IFRS measures. (2) Loss before Income tax in constant currency, and the corresponding year-over-year change, exclude the impact of foreign exchange gains/(losses) recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $2.8 million in the second quarter of 2025 and $1.7 million in the second quarter of 2026. For the six months ended June 30, these amounts were $4.9 million in 2025 and $(1.7) million in 2026, respectively. Revenue Revenue[3] of $52.0 million, up 14% year-over-year or up 15% year-over-year on a constant currency basis, reflecting strong volume growth partly moderated by a higher share of third-party sales relative to first-party sales, as third-party transactions generate commission income rather than full sales revenue. Marketplace revenue, comprised of third-party sales, marketing and advertising revenue, and value-added services, was $28.8 million, up 34% year-over-year or up 36% year-over-year on a constant currency basis. First-party sales revenue was $22.8 million, down 3% year-over-year or down 4% year-over-year on a constant currency basis, consistent with supply and demand headwinds in higher value electronic items, alongside the strong pace of marketplace growth. We generally undertake first-party activity in an opportunistic manner to complement the breadth of the product assortment on our platform; its scale will naturally vary with market conditions. Shifts in the relative proportion of first-party and third-party sales trigger variations in revenue, as we record the full sales price as revenue for first-party sales and only a percentage of the sales price (commission) for third-party sales, both net of returns and VAT. While we track revenue, we recognize that the relative proportion of first-party and third-party sales can impact its interpretation; accordingly, we utilize gross profit alongside revenue to steer our operations. Gross Profit Gross profit was $30.7 million, up 28% year-over-year or up 31% year-over-year on a constant currency basis. Gross profit as a percentage of GMV was 14.2% in the second quarter of 2026, compared to 13.3% in the second quarter of 2025. This improvement reflects a shift in the mix toward higher take rate revenue streams, and our disciplined strategy of prioritizing attractive category economics and take rates rather than pursuing discount-driven volume growth. Expenses Fulfillment expense was $12.7 million, up 18% year-over-year or up 21% year-over-year on a constant currency basis, primarily due to higher volumes. Sales and Advertising expense totaled $5.5 million, up 33% year-over-year both on reported and constant currency basis. The increase reflects higher marketing investments to support customer acquisition and engagement, while maintaining efficiency through targeted and performance-driven campaigns. Technology and Content expense totaled $9.0 million, down 2% year-over-year, or down 3% year-over-year on a constant currency basis. The decrease was driven by continued headcount optimization and savings from renegotiated contracts. General and Administrative expense was $16.8 million, down 1% year-over-year, or up 1% year-over-year on a constant currency basis. We continue to streamline the organization. The total headcount has declined by 11% since March 31, 2026, with just over 1,770 employees on payroll as of June 30, 2026. At the end of the fourth quarter of 2022, when current leadership was installed, we had 4,318 employees. As such, we have delivered on our commitment to reduce headcount by at least 200 full-time employees, and achieved this in one quarter, ahead of the two-quarter timeline we had indicated. AI-driven automation across each of our operations, finance, support functions, and technology teams - including in relation to cybersecurity and code quality workflows - is enabling us to drive further headcount efficiency, and we expect to continue reducing headcount going forward. We are also deploying artificial intelligence across our operations - including logistics, customer service, and seller management - to improve service quality while lowering costs. Loss before Income tax Operating loss was $12.4 million in the second quarter of 2026, compared to $16.5 million in the second quarter of 2025, driven by strong usage growth, higher monetization, and continued cost discipline. Adjusted EBITDA loss, which excludes depreciation, amortization and share-based compensation expense, declined to $8.7 million in the second quarter of 2026, compared to $13.6 million in the second quarter of 2025, consistent with the improvement in operating performance. Loss before Income tax was $10.9 million in the second quarter of 2026, compared to $16.3 million in the second quarter of 2025, a 33% improvement year-over-year, reflecting higher gross profit and improved operating performance. In constant currency, Loss before Income tax, excluding the impact of foreign exchange recorded in finance income and finance costs, was $12.7 million, down 34% year-over-year. Cash Position As of June 30, 2026, the Company's liquidity position was $48.3 million, comprised of $47.4 million in cash and cash equivalents and $0.9 million in term deposits and other financial assets. Jumia's liquidity position decreased by $14.3 million in the second quarter of 2026, compared to a decrease of $12.4 million in the second quarter of 2025, and a decrease of $15.3 million in the first quarter of 2026. The year-over-year change reflects an improvement in operating loss that was more than offset by a shift in working capital contribution. Net cash used in operating activities was $11.8 million in the second quarter of 2026, compared to a net cash used in operating activities of $12.7 million in the second quarter of 2025 and $12.5 million used in the first quarter of 2026. The result includes a cash outflow related to an increase in working capital of $3.0 million in the second quarter of 2026, compared to a cash inflow related to a decrease in working capital of $4.1 million in the second quarter of 2025. Despite these working capital dynamics, net cash used in operating activities nonetheless improved year-over-year, reflecting the continued strengthening of our marketplace flywheel. We plan to gradually increase our working capital over the third quarter of 2026 in order to capture attractive supply opportunities. CAPITAL RAISE On August 11, 2026, Jumia priced a capital raise anchored by a $25 million investment from the International Finance Corporation, a member of the World Bank Group, and including investments by Axian, one of our largest shareholders, as well as other investors. The investors agreed to purchase 9.1 million ADSs at a price of $5.52 per ADS, resulting in expected gross proceeds to Jumia of $50.0 million. The transactions are subject to customary conditions and are expected to close in the second half of August 2026. Jumia currently intends to use the net proceeds to support its next phase of growth, enhance efficiency across its core African markets and strengthen its integrated marketplace and logistics network. SELECTED OPERATIONAL KPIs Marketplace KPIs (1) Adjustments for perimeter effects relate to the exit from Algeria. As of the first quarter of 2026, we have revised our perimeter effects adjustments to exclude Algeria following our exit, and we have recast comparative prior period amounts accordingly. GMV increased by 20% year-over-year to $216.3 million and physical goods Orders grew by 26% year-over-year to 6.3 million in the second quarter of 2026. Adjusted for perimeter effects, GMV and physical goods Orders grew by 23% and 28% year-over-year, respectively. GUIDANCE Jumia remains committed to delivering profitable growth through the fourth quarter of 2026 by scaling usage, improving operational efficiency, and continuing to reduce cash burn. Usage growth is the clearest evidence that our fundamentals remain intact: physical goods Orders grew by 28% and Quarterly Active Customers grew by 23% year-over-year in the second quarter, both adjusted for perimeter effects. Gross profit grew by 28% year-over-year, reflecting continued progress in marketplace monetization. Importantly, we deliberately chose to protect our margins and unit economics this quarter rather than chase GMV at the expense of profitability on an Adjusted EBITDA basis. With continued cost discipline, our Adjusted EBITDA loss narrowed by 36% year-over-year. We are updating our GMV growth target for 2026, given the volatility and uncertainty surrounding the market for higher-value categories. Our Adjusted EBITDA and cash flow targets remain unchanged. Reaching them does not require pursuing GMV growth at any cost - we will keep prioritizing healthy usage growth and sales growth in lower-value but higher-margin categories. Based on current trends, we are updating our full-year 2026 guidance as follows: GMV is projected to grow between 20% and 30% year-over-year, adjusted for perimeter effects. We forecast Adjusted EBITDA loss to be between $25 million and $30 million. We confirm our strategic goal to achieve breakeven on an Adjusted EBITDA basis and positive cash flow in the fourth quarter of 2026, and to deliver full-year profitability on an Adjusted EBITDA basis and positive cash flow in 2027. Third quarter 2026: GMV is projected to grow between 15% and 25% year-over-year, adjusted for perimeter effects. The above forward-looking statements reflect Jumia's expectations and strategic goals as of August 12, 2026, are subject to change, and involve inherent risks, which are partially or fully beyond its control. These risks include but are not limited to political and economic conditions across countries where it operates, the broader economic impact of the ongoing regional conflicts, and global supply chain issues. See "Forward Looking Statements" below for further details. CONFERENCE CALL AND WEBCAST INFORMATION Jumia will host a conference call to discuss its second quarter 2026 results at 8:30 AM ET on August 12, 2026. Interested parties can access the conference at: US Dial-in (Toll Free): 877-545-0523International Dial-in: 973-528-0016Entry Code: 494499 The live call will also be available via webcast on Jumia's Investor Relations Website: https://investor.jumia.com/investor-relations/default.aspx. A replay of the call will be available until Wednesday, August 26, 2026 and can be accessed by dialing 877-481-4010 for toll free access or 919-882-2331 for international access using the replay passcode: 54325. (UNAUDITED) Consolidated statement of comprehensive income for the periods ended June 30, 2025 and 2026 (UNAUDITED) Consolidated statement of financial position as of December 31, 2025 and June 30, 2026 (UNAUDITED) Consolidated statement of cash flows for the periods ended June 30, 2025 and 2026 Forward Looking Statements This release includes forward-looking statements. All statements other than statements of historical facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "believes," "estimates," "potential" or "continue" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. "Key Information-D. Risk Factors," in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission for the year ended December 31, 2025. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Considering these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. Non-IFRS Financial and Operating Metrics Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures. This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including Annual Active Customers, Quarterly Active Customers, Orders and GMV. We define Annual Active Customers, Quarterly Active Customers, Orders, GMV, General and administrative expense, excluding SBC, and Adjusted EBITDA as follows: Annual Active Customers means unique customers who placed an order for a product or a service on our platform, within the 12-month period preceding the relevant date, irrespective of cancellations or returns. Quarterly Active Customers means unique customers who placed an order for a product or a service on our platform, within the 3-month period preceding the relevant date, irrespective of cancellations or returns. We believe that Annual Active Customers and Quarterly Active Customers are useful indicators of the adoption of our offering by customers in our markets. Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period. Within Orders, we differentiate between physical goods Orders and Orders through the JumiaPay App. We believe that the number of orders is a useful indicator to measure the total usage of our platform, irrespective of the monetary value of the individual transactions. Gross Merchandise Value ("GMV") corresponds to the total value of orders for products and services, including shipping fees, value-added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns for the relevant period. We believe that GMV is a useful indicator for the usage of our platform that is not influenced by shifts in our sales between first-party and third-party sales or the method of payment. We use Quarterly Active Customers, Orders and GMV as some of many indicators to monitor usage of our platform. General and administrative expense, excluding SBC, corresponds to the General & Administrative ("G&A") expense excluding share-based compensation expense ("SBC"). We use this metric to measure the development of our G&A costs exclusive of the impact of SBC which is mainly a non-cash expense, influenced, in part, by share price fluctuations. Adjusted EBITDA corresponds to loss for the period, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization and further adjusted for share-based compensation expense. Adjusted EBITDA is a supplemental non-IFRS measure of our operating performance that is not required by, or presented in accordance with, IFRS. Adjusted EBITDA is not a measurement of our financial performance under IFRS and should not be considered as an alternative to Loss for the period, Loss before Income tax or any other performance measure derived in accordance with IFRS. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. Management believes that investors' understanding of our performance is enhanced by including non-IFRS financial measures as a reasonable basis for comparing our ongoing results of operations. By providing this non-IFRS financial measure, together with a reconciliation to the nearest IFRS financial measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Management uses Adjusted EBITDA: as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations; for planning purposes, including the preparation of our internal annual operating budget and financial projections; to evaluate the performance and effectiveness of our strategic initiatives; and to evaluate our capacity to expand our business. Items excluded from this non-IFRS measure are significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for analysis of our results reported in accordance with IFRS, including loss for the period. Some of the limitations are: Adjusted EBITDA does not reflect our share-based compensation, income tax expense (benefit) or the amounts necessary to pay our taxes; although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these and other limitations by providing a reconciliation of Adjusted EBITDA to the most directly comparable IFRS financial measure, loss for the period. The following table provides a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated: Constant currency data Certain metrics have also been presented on a constant currency basis. We use constant currency information to provide us with a picture of underlying business dynamics, excluding currency effects. Constant currency metrics are calculated using the average foreign exchange rates for each month during 2025 and applying them to the corresponding months in 2026, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations. Constant currency information is not a measure calculated in accordance with IFRS. While we believe that constant currency information may be useful to investors in understanding and evaluating our results of operations in the same manner as our management, our use of constant currency metrics has limitations as an analytical tool, and you should not consider it in isolation, or as an alternative to, or a substitute for analysis of our financial results as reported under IFRS. Further, other companies, including companies in our industry, may report the impact of fluctuations in foreign currency exchange rates differently, which may reduce the value of our constant currency information as a comparative measure. The following table sets forth the constant currency data for selected metrics: (1) Loss before Income tax in constant currency, and the corresponding year-over-year change, exclude the impact of foreign exchange recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $2.8 million in the second quarter of 2025 and $1.7 million in the second quarter of 2026. For the six months ended June 30, these amounts were $4.9 million in 2025 and $(1.7) million in 2026, respectively. [1] Adjusted for perimeter effects, which relate to the exit from Algeria. As of the first quarter of 2026, we have revised our perimeter effects adjustments to exclude Algeria following our exit, and we have recast comparative prior period amounts accordingly. [2] Working capital comprises movements in: (i) trade and other receivables, prepaid expenses and other tax receivables; (ii) inventories; and (iii) trade and other payables, deferred income and other tax payables. [3] In addition to marketplace revenue and first-party sales, revenue included other revenue of $0.4 million in the second quarter of 2025 and $0.3 million in the second quarter of 2026. SOURCE: Jumia Technologies AG View the original press release on ACCESS Newswire

It's been a pretty great week for Jumia Technologies AG (NYSE:JMIA) shareholders, with its shares surging 16% to US$7.77 in the week since its latest first-quarter results. The results were positive, with revenue coming in at US$50m, beating analyst expectations by 8.6%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the most recent consensus for Jumia Technologies from four analysts is for revenues of US$237.2m in 2026. If met, it would imply a notable 17% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 41% to US$0.30. Before this latest report, the consensus had been expecting revenues of US$239.7m and US$0.25 per share in losses. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. See our latest analysis for Jumia Technologies As a result, there was no major change to the consensus price target of US$14.90, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Jumia Technologies, with the most bullish analyst valuing it at US$18.02 and the most bearish at US$7.44 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Jumia Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.03% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So it looks like Jumia Technologies is expected to grow faster than its competitors, at least for a while. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Jumia Technologies. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Jumia Technologies going out to 2028, and you can see them free on our platform here.. And what about risks? Every company has them, and we've spotted 1 warning sign for Jumia Technologies you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Jumia Technologies? Here are five stocks we like better. Jumia posted strong Q1 growth, with GMV up 32% year over year on an adjusted basis and revenue rising 39% to $50.6 million. Adjusted EBITDA loss narrowed to $10.7 million, or $9.7 million excluding Algeria exit costs, showing continued progress toward profitability. The company reaffirmed its 2026 guidance and said it remains on track for adjusted EBITDA breakeven and positive cash flow in Q4 2026, followed by full-year profitability and positive cash flow in 2027. Management said 2026 will be the year it demonstrates its path to profitability. Marketplace momentum and cost discipline helped offset macro pressures, with physical goods orders up 31%, active customers up 25%, and gross margin improving to 13.9%. Jumia is also cutting costs through automation, headcount reductions, and higher reliance on pickup stations to limit logistics and fuel exposure. Jumia Technologies Stock Jumps: Analyst Update Drives 30% Gain Jumia Technologies (NYSE:JMIA) reported stronger first-quarter growth and narrower operating losses as management said the African e-commerce company remains on track for its profitability targets despite supply chain and macroeconomic headwinds. On the company’s first-quarter 2026 earnings call, CEO Francis Dufay said gross merchandise value, or GMV, rose 32% year over year on a perimeter-adjusted basis, while revenue increased 39% to $50.6 million. Adjusted EBITDA loss narrowed to $10.7 million from $15.7 million in the prior-year quarter. Excluding approximately $1 million in one-time costs related to Jumia’s exit from Algeria, Dufay said adjusted EBITDA loss would have been $9.7 million, representing a 38% improvement year over year in the company’s core business. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Jumia’s Turnaround Takes a Page Out of Dollar General’s Strategy “2025 was the year we demonstrated the resilience and scalability of our model,” Dufay said. “2026 is the year we plan to demonstrate our path to profitability.” The company reaffirmed its full-year 2026 outlook, calling for GMV growth of 27% to 32% year over year, adjusted for perimeter effects, and an adjusted EBITDA loss of $25 million to $30 million. Management also reiterated its goal of reaching adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, followed by full-year profitability and positive cash flow in 2027. → 3 Ways to Target the Resources Powering AI and Data Centers Dufay said first-quarter usage trends were strong across Jumia’s platform, with physical goods orders up 31% year over year on a perimeter-adjusted basis. Quarterly active customers increased 25%, and repeat purchasing also improved: 47% of new customers from the fourth quarter of 2025 made another purchase within 90 days, compared with 45% for the comparable 2024 cohort. The company continued to emphasize physical goods, which accounted for nearly all orders and GMV during the quarter. Dufay said digital transactions through the JumiaPay app now represent only a residual share of orders, and Jumia will discontinue quarterly disclosure of total payment volume and Jumia payment gateway transaction KPIs beginning with the first quarter of 2026. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players Average order value for physical goods increased to $36 from $35 a year earlier. Dufay said demand was broad-based across electronics, home and living, fashion and beauty, and most countries. Jumia also reported growth in international sourcing. The company sourced 4.9 million gross items internationally during the quarter, up 87% year over year on a perimeter-adjusted basis, reflecting growth in Chinese sellers and increased supply from affordable fashion vendors in Turkey. Executive Vice President of Finance and Operations Antoine Maillet-Mezeray said marketplace revenue totaled $27 million, up 50% year over year, or 35% on a constant currency basis. Third-party sales rose 45% to $23.2 million, driven by higher usage and effective take rates. Marketing and advertising revenue rose 44% to $2.2 million, supported by sponsored products and tools rolled out in mid-2025. Maillet-Mezeray said advertising revenue represents roughly 1% of GMV, leaving “meaningful opportunity” to scale the revenue source. Value-added services revenue increased to $1.7 million from $0.6 million a year earlier, driven by warehousing fees and demand from Chinese sellers. First-party sales revenue reached $23.1 million, up 30% year over year, supported by international partnerships, including Starlink in Nigeria and Kenya. Gross profit rose 48% to $29.4 million, while gross profit margin as a percentage of GMV expanded 160 basis points to 13.9%. Management attributed the improvement to higher marketplace monetization, including commission increases implemented across most countries in January. Fulfillment expense rose 29% to $12.2 million as volumes increased, but fulfillment expense per order excluding JumiaPay app orders was flat year over year at $2.06, or down 10% on a constant currency basis. Dufay said productivity gains, call center automation and improved logistics partner rates helped offset higher activity. Technology and content expense declined 8% to $8.9 million, reflecting headcount optimization, automation and renegotiated vendor contracts, including cloud infrastructure. General and administrative expense excluding share-based compensation rose 4% to $16.8 million, partly due to Algeria-related termination benefits and local currency appreciation. Maillet-Mezeray said Jumia’s payroll stood at just over 1,980 employees as of March 31, 2026, down 8% since Dec. 31, 2024 and significantly below the 4,318 employees the company had at the end of the fourth quarter of 2022. He said Jumia expects to reduce headcount by at least another 200 full-time employees over the next two quarters. Management also highlighted artificial intelligence and automation as drivers of efficiency. Maillet-Mezeray cited AI use in cybersecurity, software development, accounting, HR, logistics, customer service and seller operations. Jumia reported strong growth in several key markets. In Nigeria, physical goods GMV increased 42% year over year, supported by home and living, upcountry expansion and more than 80 additional pickup stations opened during the quarter. Kenya physical goods GMV rose just under 50%, driven by local suppliers in home and living and international suppliers in fashion. Ghana was the company’s fastest-growing market in the quarter, with physical goods GMV up 142% due to upcountry expansion, local marketplace scaling and international seller supply. Egypt’s physical goods GMV rose 3% year over year, but excluding corporate sales that were material in the prior-year period and have since been deprioritized, GMV increased 56%. Ivory Coast was more challenged, with physical goods GMV up 16%. Dufay cited appliance supply disruption, smartphone headwinds and a nearly 60% decline in regulated cocoa farm gate prices effective in March, which he said reduced purchasing power for a large share of the country’s upcountry population. The company completed its exit from Algeria in February. Dufay said Algeria represented about 2% of GMV in 2025, and the exit simplifies Jumia’s footprint while improving operational focus. Management said Jumia is monitoring memory chip and CPU price increases, Middle East geopolitical tensions, supply chain disruptions, shipping costs and fuel prices. Dufay said entry-level smartphone prices increased by approximately 20% between late 2025 and early April, with the impact felt most clearly in March. Smartphones account for roughly 10% of GMV, but Dufay said the category carries lower margins than categories such as fashion and does not represent 10% of gross profit. He characterized the smartphone pressure as temporary, saying consumers are trading down while some brands face market-specific supply constraints. Jumia is mitigating the issue by diversifying its smartphone supplier base and scaling both local and international sellers. Dufay also said fuel price increases began affecting several markets in March, with the most notable first-quarter cost impact in Nigeria. If higher fuel prices persist, he said they could pressure second-quarter logistics costs and partially offset savings from third-party logistics renegotiations. However, Jumia’s pickup station strategy is helping reduce exposure to fuel costs. In the first quarter, 74% of shipped packages were fulfilled through pickup stations rather than door delivery, up from 67% a year earlier on a perimeter-adjusted basis. Asked about the path to cash flow positivity, Dufay said the company’s priorities are clear: continue scaling top-line growth, improve unit economics and reduce fixed costs. “It’s mostly an execution game,” he said. Jumia Technologies AG (NYSE: JMIA) operates as a leading e-commerce and technology platform in Africa, facilitating online retail, logistics and digital payments. The company's marketplace connects millions of consumers with a diverse array of sellers offering electronics, fashion, home goods, groceries and more. Beyond its core retail services, Jumia has developed JumiaPay, a payment solution that enables secure transactions both on and off its platform, and Jumia Logistics, which provides end-to-end delivery and fulfillment support across the continent. Jumia serves a broad geographic footprint in Africa, with operations in key markets such as Nigeria, Egypt, Kenya, Morocco, Ghana, Côte d'Ivoire, Uganda, Tunisia and South Africa. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jumia Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Jumia Reports 32%[1] GMV Growth and 39% Revenue Increase; Adjusted EBITDA Loss Narrowed 32%, Reflecting Continued Progress Toward Profitability; Jumia Reaffirms 2026 Guidance   LAGOS, NIGERIA / ACCESS Newswire / May 7, 2026 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the first quarter ended March 31, 2026. Financial highlights for the first quarter 2026 Revenue of $50.6 million compared to $36.3 million in the first quarter of 2025, up 39% year-over-year, and up 28% in constant currency. GMV of $211.2 million compared to $161.7 million in the first quarter of 2025, up 31% year-over-year, and up 18% in constant currency. Adjusted for perimeter effects, GMV grew 32% year-over-year. Operating loss of $13.9 million compared to $18.7 million in the first quarter of 2025, down 26% year-over-year and down 25% in constant currency. Adjusted EBITDA loss of $10.7 million compared to $15.7 million in the first quarter of 2025, down 32% year-over-year, and down 31% in constant currency. Loss before Income tax of $17.8 million compared to $16.5 million in the first quarter of 2025, up 8% year-over-year, and down 21% in constant currency. Liquidity position of $62.6 million, a decrease of $15.3 million in the first quarter of 2026, compared to a decrease of $23.2 million in the first quarter of 2025. Net cash flow used in operating activities of $12.5 million compared to net cash flow used in operating activities of $21.2 million in the first quarter of 2025 and due to favorable year-end seasonality, $1.7 million used in the fourth quarter of 2025. The result includes a broadly neutral working capital[2] contribution, compared to a negative working capital contribution of $7.1 million in the first quarter of 2025. Business highlights for the first quarter 2026 Unless otherwise stated, all reported KPIs are for physical goods and exclude results from Algeria, which was exited in early 2026. Orders grew 31% year-over-year, reflecting disciplined execution and resilient consumer demand across key categories. Quarterly Active Customers grew by 26% year-over-year, demonstrating strong customer engagement and improving retention. GMV increased 33% year-over-year, driven by strong supply and effective execution. Nigeria delivered standout performance, with GMV up 42% year-over-year. Gross items sold from international sellers grew 87% year-over-year in the first quarter of 2026, reflecting the continued scaling of our Chinese seller base, as well as growing volumes from our supply base for affordable fashion in Turkey. [1] Adjusted for perimeter effects [2] Working capital comprises movements in: (i) trade and other receivables, prepaid expenses and other tax receivables; (ii) inventories; and (iii) trade and other payables, deferred income and other tax payables. Company Commentary "Our first quarter results demonstrate that the operating leverage we have been building is translating into our financials. GMV and physical goods Orders, each adjusted for perimeter effects, grew 32% and 31%, respectively, year-over-year, and our Adjusted EBITDA loss narrowed by 32% to $10.7 million as higher volumes result in structurally better economics across our platform. Gross profit grew 48% year-over-year, reflecting our continued progress in marketplace monetization. At the start of 2026, we committed to scaling usage across our existing markets, deepening customer engagement, and unlocking operating leverage while continuing to improve availability, affordability, and reliability for our customers. Our first quarter results reflect early and tangible delivery for each of these priorities. Growth was broad-based across our markets. Nigeria delivered an exceptional quarter with physical goods GMV up 42% year-over-year, Egypt confirmed its recovery, with physical goods GMV up 3%, or 56% excluding corporate sales, year-over-year. We continue to monitor the dynamic macro environment and manage our business accordingly. We believe that we have the right business fundamentals to navigate current uncertainties and that the opportunity for Jumia remains strong. We are executing with discipline and these results keep us firmly on track toward our target of achieving Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, and full-year profitability and positive cash flow in 2027." - Francis Dufay, CEO International Environment We are navigating an international environment that is evolving quickly, with two principal developments having the potential to affect our business. First, increases in memory chip and CPU prices have raised the prices of certain products, including phones, and have caused reorganizations in supply chains and inventories. This is impacting our business at least in the near term. We are mitigating this by diversifying our supplier base for smartphones and scaling our marketplace across both local and international sellers. Second, the war in the Middle East has led to logistics and supply chain disruptions, as well as rising fuel costs. We have seen limited impact in the first quarter of 2026, but expect greater pressure in the second quarter of 2026 if conditions persist. This exposure is partially mitigated by reductions in our reliance on fuel-intensive delivery through the increased use of pick-up stations. While we are currently navigating an uncertain international environment, we believe that our business fundamentals, which were rebuilt from 2022 to 2025, mostly in tougher times than this, are strong. We do expect some temporary disruption, but this does not change our mid-term profitability targets or our belief in Jumia's long-term opportunity for growth. SELECTED FINANCIAL INFORMATION Financial Results for the first quarter ended March 31, 2026 (1) See "Non-IFRS Financial and Operating Metrics" for a reconciliation of non-IFRS measures to IFRS measures. (2) Loss before Income tax in constant currency, and the corresponding year-over-year change, exclude the impact of foreign exchange gains/(losses) recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $2.1 million in the first quarter of 2025 and $(3.5) million in the first quarter of 2026. Revenue Revenue[3] of $50.6 million, up 39% year-over-year or up 28% year-over-year on a constant currency basis. Marketplace revenue, comprised of third-party sales, marketing and advertising revenue, and value-added services, was $27.0 million, up 50% year-over-year or up 35% year-over-year on a constant currency basis. Third-party sales revenue was $23.2 million, up 45% year-over-year or up 31% year-over-year on a constant currency basis. Year-over-year growth was driven by strong execution in our marketplace business and supported by rising customer usage. Marketing and advertising revenue was $2.2 million, up 44% year-over-year or up 31% year-over-year on a constant currency basis, driven by growth in sponsored products following the launch of our new retail advertising platform. With advertising revenue at 1% of GMV, we see substantial upside potential. Value-added services revenue was $1.7 million in the first quarter of 2026, compared to $0.6 million in the first quarter of 2025, driven by growth in warehousing fees, reflecting higher volumes flowing through our storage infrastructure and improved monetization of our warehousing services. First-party sales revenue was $23.1 million, up 30% year-over-year or up 21% year-over-year on a constant currency basis, reflecting strong demand and continued momentum with key international brands. Gross Profit Gross profit was $29.4 million, up 48% year-over-year or up 33% year-over-year on a constant currency basis. Gross profit as a percentage of GMV was 13.9% in the first quarter of 2026, compared to 12.3% in the first quarter of 2025. Expenses Fulfillment expense was $12.2 million, up 29% year-over-year or up 17% year-over-year on a constant currency basis, primarily due to higher volumes. Fulfillment expense per Order, excluding JumiaPay App Orders, which do not incur logistics costs, was $2.06, flat year-over-year or down 10% year-over-year on a constant currency basis. The improvement reflects productivity gains and economies of scale in fulfillment operations, automation in call centers, and improved rates with logistics partners. Sales and Advertising expense totaled $5.1 million, up 64% year-over-year, or up 54% year-over-year on a constant currency basis. The increase reflects higher marketing investments to support customer acquisition and engagement, while maintaining efficiency through targeted and performance-driven campaigns. Technology and Content expense totaled $8.9 million, down 8% year-over-year, or down 10% year-over-year on a constant currency basis. The decrease was driven by ongoing headcount optimization and savings from recently renegotiated contracts. General and Administrative expense was $18.0 million, up 4% year-over-year, or down 2% year-over-year on a constant currency basis. General and Administrative expense, excluding share-based compensation expense, was $16.8 million, up 4% year-over-year, or down 3% year-over-year on a constant currency basis. Staff costs within General and Administrative expense, excluding share-based compensation expense, increased by 16% year-over-year, driven by approximately $0.8 million in one-time termination benefits related to our Algeria exit and the appreciation of local currencies against the US dollar compared to the first quarter of 2025. We continue to streamline the organization. The total headcount has declined by 8% since December 31, 2024, with just over 1,980 employees on payroll as of March 31, 2026. At the end of the fourth quarter of 2022, when current leadership was installed, we had 4,318 employees. We are actively working to further reduce headcount, continue process automation and leverage AI tools. We expect to reduce by at least an additional 200 full-time employees over the next two quarters. AI-driven automation across each of our operations, finance, headcount efficiency, support functions, and technology teams - including in relation to cybersecurity and code quality workflows - enabled a reduction in our headcount and contributed to improved operational leverage in the first quarter of 2026. Artificial intelligence is also helping us solve operational problems on the ground, including in logistics, customer service, and seller management, improving the quality of the service we offer, while reducing costs. Loss before Income tax Operating loss was $13.9 million in the first quarter of 2026, compared to $18.7 million in the first quarter of 2025. The year-over-year improvement primarily reflects higher revenue and gross profit, partially offset by higher operating expenses. Adjusted EBITDA loss, which excludes depreciation, amortization and share-based compensation expense, declined to $10.7 million in the first quarter of 2026, compared to $15.7 million in the first quarter of 2025, consistent with the improvement in operating performance. Excluding the one-time costs related to our Algeria exit, Adjusted EBITDA loss would have been $9.7 million, reflecting the underlying improvement of 38% year-over-year, in our core business. Loss before Income tax was $17.8 million in the first quarter of 2026, compared to $16.5 million in the first quarter of 2025, primarily reflecting non-cash foreign exchange losses. In constant currency, Loss before Income tax, excluding the impact of foreign exchange recorded in finance income and finance costs, was $14.7 million, down 21% year-over-year. Cash Position As of March 31, 2026, the Company's liquidity position was $62.6 million, comprised of $61.5 million in cash and cash equivalents and $1.1 million in term deposits and other financial assets. Jumia's liquidity position decreased by $15.3 million in the first quarter of 2026, compared to a decrease of $23.2 million in the first quarter of 2025, and a decrease of $4.7 million in the fourth quarter of 2025. The shift from the previous quarter is consistent with typical seasonal dynamics. Net cash used in operating activities was $12.5 million in the first quarter of 2026, compared to a net cash used of $21.2 million in the first quarter of 2025 and $1.7 million used in the fourth quarter of 2025. The result includes a broadly neutral working capital contribution in the first quarter of 2026, compared to a negative working capital contribution of $7.1 million in the first quarter of 2025. The improvement primarily reflects the continued strengthening of our marketplace flywheel, with higher volumes and better payment flows, as well as improved bargaining power with large third-party accounts. [3] In addition to marketplace revenue and first-party sales, revenue included other revenue of $0.4 million in the first quarter of 2025 and $0.4 million in the first quarter of 2026. SELECTED OPERATIONAL KPIs Marketplace KPIs (1) Adjustments for perimeter effects relate to the exit from Algeria. As of the first quarter of 2026, we have revised our perimeter effects adjustments to exclude Algeria following our exit, and we have recast comparative prior period amounts accordingly. Note: Effective as of the first quarter of the fiscal year 2026, Jumia has discontinued its quarterly disclosure of the KPIs "Total Payment Volume (TPV)" and "Jumia Payment Gateways Transactions". See "Selected Operational KPIs-TPV and Jumia Payment Gateways Transactions Reporting" for further details. GMV increased by 31% year-over-year to $211.2 million and physical goods Orders grew by 30% year-over-year to 5.9 million. Adjusted for perimeter effects, GMV and physical goods Orders grew by 32% and 31% year-over-year, respectively. The increase in GMV was driven by robust consumer demand. Order growth reflects continued improvement in product assortment and a stronger customer value proposition in physical goods. In line with our strategic focus on scaling physical goods, we have reduced our emphasis on digital products sold through our JumiaPay App, that contribute to order volumes with limited revenue impact. While this shift influenced total order metrics for the quarter, physical goods Orders growth remained robust. Our strategy to expand into secondary cities continues to deliver results. Adjusted for perimeter effects, Orders from upcountry regions represented 62% of total Orders in the first quarter of 2026, up from 58% in the prior-year period. Jumia continues to deploy marketing with a focus on efficiency and ROI, focusing investment on efficient channels to support customer acquisition, engagement, and repeat behavior. These include paid online marketing, customer relationship management ("CRM"), search engine optimization ("SEO"), and relevant offline local channels (e.g. radio and print) while also leveraging its JForce agent network. As a result of these efforts and adjusted for perimeter effects, Jumia is attracting what it believes to be a stickier and higher quality customer base as evidenced by a 185 basis point year-over-year improvement in repurchase rates.[4] Jumia's cohort analysis indicates that 47% of new customers, who placed their first order in the fourth quarter of 2025, made a second purchase within 90 days, compared to 45% of new customers in the fourth quarter of 2024. TPV and Jumia Payment Gateways Transactions Reporting Effective as of the first quarter of 2026, Jumia has discontinued its quarterly disclosure of the KPIs "Total Payment Volume (TPV)" and "Jumia Payment Gateways Transactions". Since 2023, Jumia has been shifting its strategic focus towards physical goods. Following this strategic shift and the discontinuation of the standalone JumiaPay App in 2025 (except in Egypt where it remained live to manage certain legacy payment partnerships), these metrics are no longer among the primary indicators used by management to assess Jumia's operating performance. [4] Adjusted for perimeter effects to exclude South Africa, Tunisia and Algeria. As of the first quarter of 2026, we have revised our perimeter effects adjustments to exclude Algeria following our exit, and we have recast comparative prior period amounts accordingly. GUIDANCE Jumia remains committed to delivering profitable growth in 2026 by scaling usage, improving operational efficiency, and continuing to reduce cash burn. We are navigating an evolving international environment. While we expect some temporary disruption from memory chip and CPU price pressures and the ongoing conflict in the Middle East, our business fundamentals are strong, our Q1 2026 results demonstrate continued execution, and we have not changed our mid-term profitability targets or our belief in Jumia's long-term opportunity for growth. Based on current business trends, we reaffirm our full-year 2026 guidance as follows: GMV is projected to grow between 27% and 32% year-over-year, adjusted for perimeter effects. We forecast Adjusted EBITDA loss to be between $25 million and $30 million. We confirm our strategic goal to achieve breakeven on an Adjusted EBITDA basis and positive cash flow in the fourth quarter of 2026, and delivering full-year profitability and positive cash flow in 2027. Second quarter 2026: GMV is projected to grow between 27% and 32% year-over-year, adjusted for perimeter effects. The above forward-looking statements reflect Jumia's expectations and strategic goals as of May 7, 2026, are subject to change, and involve inherent risks, which are partially or fully beyond its control. These risks include but are not limited to political and economic conditions across countries where it operates, the broader economic impact of the ongoing regional conflicts, and global supply chain issues. CONFERENCE CALL AND WEBCAST INFORMATION Jumia will host a conference call to discuss its first quarter 2026 results at 8:30 AM ET on May 7, 2026. Interested parties can access the conference at: US Dial-in (Toll Free): 888-506-0062 International Dial-in: 973-528-0011 Entry Code: 642806 The live call will also be available via webcast on Jumia's Investor Relations Website: https://investor.jumia.com/investor-relations/default.aspx. A replay of the call will be available until Thursday, May 21, 2026 and can be accessed by dialing 877-481-4010 for toll free access or 919-882-2331 for international access using the replay passcode: 53941. (UNAUDITED) Consolidated statement of comprehensive income as of March 31, 2025 and 2026 (UNAUDITED) Consolidated statement of financial position as of December 31, 2025 and March 31, 2026 (UNAUDITED) Consolidated statement of cash flows as of March 31, 2025 and 2026 Forward Looking Statements This release includes forward-looking statements. All statements other than statements of historical facts contained in this release, including statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "believes," "estimates", "potential" or "continue" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. "Key Information-D. Risk Factors," in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission for the year ended December 31, 2025. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Considering these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. The forward-looking statements included in this release are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations, except as may be required by law. You should read this release with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. Non-IFRS Financial and Operating Metrics Changes, percentages, ratios and aggregate amounts presented have been calculated on the basis of unrounded figures. This release includes certain financial measures and metrics not based on IFRS, including Adjusted EBITDA, as well as operating metrics, including Annual Active Customers, Quarterly Active Customers, Orders and GMV. We define Annual Active Customers, Quarterly Active Customers, Orders, GMV, General and administrative expense, excluding SBC, and Adjusted EBITDA as follows: Annual Active Customers means unique customers who placed an order for a product or a service on our platform, within the 12-month period preceding the relevant date, irrespective of cancellations or returns. Quarterly Active Customers means unique customers who placed an order for a product or a service on our platform, within the 3-month period preceding the relevant date, irrespective of cancellations or returns. We believe that Annual Active Customers and Quarterly Active Customers are useful indicators of the adoption of our offering by customers in our markets. Orders corresponds to the total number of orders for products and services on our platform, irrespective of cancellations or returns, for the relevant period. We believe that the number of orders is a useful indicator to measure the total usage of our platform, irrespective of the monetary value of the individual transactions. Gross Merchandise Value ("GMV") corresponds to the total value of orders for products and services, including shipping fees, value-added tax, and before deductions of any discounts or vouchers, irrespective of cancellations or returns for the relevant period. We believe that GMV is a useful indicator for the usage of our platform that is not influenced by shifts in our sales between first-party and third-party sales or the method of payment. We use Quarterly Active Customers, Orders and GMV as some of many indicators to monitor usage of our platform. General and administrative expense, excluding SBC, corresponds to the General & Administrative ("G&A") expense excluding share-based compensation expense ("SBC"). We use this metric to measure the development of our G&A costs exclusive of the impact of SBC which is mainly a non-cash expense, influenced, in part, by share price fluctuations. Adjusted EBITDA corresponds to loss for the period, adjusted for income tax expense (benefit), finance income, finance costs, depreciation and amortization and further adjusted for share-based compensation expense. Adjusted EBITDA is a supplemental non-IFRS measure of our operating performance that is not required by, or presented in accordance with, IFRS. Adjusted EBITDA is not a measurement of our financial performance under IFRS and should not be considered as an alternative to Loss for the period, Loss before Income tax or any other performance measure derived in accordance with IFRS. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate Adjusted EBITDA in the same manner. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. Management believes that investors' understanding of our performance is enhanced by including non-IFRS financial measures as a reasonable basis for comparing our ongoing results of operations. By providing this non-IFRS financial measure, together with a reconciliation to the nearest IFRS financial measure, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Management uses Adjusted EBITDA: as a measurement of operating performance because it assists us in comparing our operating performance on a consistent basis, as it removes the impact of items not directly resulting from our core operations; for planning purposes, including the preparation of our internal annual operating budget and financial projections; to evaluate the performance and effectiveness of our strategic initiatives; and to evaluate our capacity to expand our business. Items excluded from this non-IFRS measure are significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for analysis of our results reported in accordance with IFRS, including loss for the period. Some of the limitations are: Adjusted EBITDA does not reflect our share-based compensation, income tax expense (benefit) or the amounts necessary to pay our taxes; although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any costs for such replacements; and other companies may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure. Due to these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these and other limitations by providing a reconciliation of Adjusted EBITDA to the most directly comparable IFRS financial measure, loss for the period. The following table provides a reconciliation of loss for the period to Adjusted EBITDA for the periods indicated: Constant currency data Certain metrics have also been presented on a constant currency basis. We use constant currency information to provide us with a picture of underlying business dynamics, excluding currency effects. Constant currency metrics are calculated using the average foreign exchange rates for each month during 2025 and applying them to the corresponding months in 2026, so as to calculate what our results would have been had exchange rates remained stable from one year to the next. These calculations do not include any other macroeconomic effect such as local currency inflation effects or any price adjustment to compensate local currency inflation or devaluations. Constant currency information is not a measure calculated in accordance with IFRS. While we believe that constant currency information may be useful to investors in understanding and evaluating our results of operations in the same manner as our management, our use of constant currency metrics has limitations as an analytical tool, and you should not consider it in isolation, or as an alternative to, or a substitute for analysis of our financial results as reported under IFRS. Further, other companies, including companies in our industry, may report the impact of fluctuations in foreign currency exchange rates differently, which may reduce the value of our constant currency information as a comparative measure. The following table sets forth the constant currency data for selected metrics: (1) Loss before Income tax in constant currency, and the corresponding year-over-year change, exclude the impact of foreign exchange recorded in finance income/costs. Net foreign exchange gains/(losses) in reported currency were $2.1 million in the first quarter of 2025 and $(3.5) million in the first quarter of 2026. Note: Effective as of the first quarter of the fiscal year 2026, Jumia has discontinued its quarterly disclosure of the KPI "Total Payment Volume (TPV)". See "Selected Operational KPIs-TPV and Jumia Payment Gateways Transactions Reporting" for further details. SOURCE: Jumia Technologies AG View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Revenue: $61.4 million, up 34% year-over-year. Gross Profit: $34.2 million, up 43% year-over-year. Gross Profit Margin: 12.2% of GMV, up from 11.6% in Q4 2024. Adjusted EBITDA: Negative $7.3 million, improved from negative $13.3 million in the prior year quarter. Loss Before Income Tax: Negative $9.7 million, a 45% decrease year-over-year. Cash Burn: $4.7 million in Q4 2025, down from $15.8 million in Q3 2025. Liquidity Position: $77.8 million, including $76.7 million in cash and cash equivalents. Fulfillment Cost Per Order: $1.97, a 12% year-over-year reduction. Headcount: Declined 7% in 2025 to approximately 2,010 employees. Physical Goods GMV Growth: 38% year-over-year. Average Order Value: Increased to $37 from $35 in Q4 2024. Marketplace Revenue: $31 million, up 36% year-over-year. Third-Party Sales: $26.7 million, up 33% year-over-year. Marketing and Advertising Revenue: $2.9 million, up 42% year-over-year. Value-Added Services Revenue: $1.4 million, up 79% year-over-year. First-Party Sales Revenue: $29.1 million, up 33% year-over-year. Technology and Content Expenses: Declined 6% year-over-year. Staff Costs: Decreased by 18% to $8.2 million. Net Cash Flow Used in Operating Activities: $1.7 million, with a positive working capital impact of $9.6 million. Warning! GuruFocus has detected 3 Warning Signs with JMIA. Is JMIA fairly valued? Test your thesis with our free DCF calculator. Release Date: February 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jumia Technologies AG (NYSE:JMIA) reported a 38% year-over-year growth in physical goods GMV, indicating strong demand and improved execution. The company achieved a 34% year-over-year increase in revenue, driven by higher usage and improved monetization. Adjusted EBITDA loss narrowed significantly to $7.3 million from $13.3 million in the prior year quarter, showcasing improved profitability metrics. Jumia Technologies AG (NYSE:JMIA) successfully reduced cash burn to $4.7 million in Q4 2025, compared to $15.8 million in Q3 2025, reflecting tighter working capital management. The company expanded its international sourcing capabilities by opening a new office in Yiwu, China, enhancing its direct sourcing capabilities and collaboration with international suppliers. Despite improvements, Jumia Technologies AG (NYSE:JMIA) still reported a loss before income tax of $9.7 million, highlighting ongoing profitability challenges. The company experienced lower than expected advertising monetization, which impacted the bottom line negatively. Jumia Technologies AG (NYSE:JMIA) announced its decision to cease operations in Algeria, which could lead to short-term costs related to employee and lease exits. The competitive environment remains challenging, with increased regulatory scrutiny on non-resident and cross-border platforms in several countries. The company plans further headcount reductions in 2026, which may impact employee morale and operational capacity. Q: What are the main drivers for Jumia's acceleration in 2026? A: Francis Dufay, CEO, highlighted four main drivers: improving assortment and availability at lower price points, expanding market coverage, increased marketing efforts, and improved quality of service and customer satisfaction. Q: How does Jumia plan to manage capacity expansion over the next few years? A: Francis Dufay stated that Jumia's current fulfillment and tech infrastructure can support higher volumes until at least the end of 2027. They have already made significant investments in warehouse space and tech stack, which should suffice for the next two years. Q: What is the outlook for Jumia's advertising revenue, and what steps are being taken to improve it? A: Francis Dufay mentioned that advertising revenue was about 1% of GMV in Q4 2025, with a medium-term target of 2%. Jumia has implemented new tools and reorganized teams to enhance retail advertising and brand campaigns, aiming for gradual improvements. Q: Are there any plans for Jumia to exit or enter new markets? A: Francis Dufay confirmed that Jumia does not plan to enter new markets until achieving full-year break-even. They have recently exited Algeria and currently focus on optimizing operations in their eight core markets. Q: How is Jumia addressing competitive pressures in its markets? A: Francis Dufay noted that competitive pressure from international platforms has softened, and local regulators are implementing measures to level the playing field, such as enforcing VAT and profit taxes on non-resident platforms. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Feb. 10, 2026, 8:30 a.m. ET Chief Executive Officer — Francis Dufay Executive Vice President, Finance and Administration — Antoine Maillet-Mezeray Francis Dufay: Good morning, everyone, and thank you for joining Jumia's Fourth Quarter and Full year '25 Earnings Call. 2025 was the year we demonstrated that we can turn the playbook we began building several years ago into tangible results. Over the past few years, Jumia has been building an e-commerce model designed specifically for Africa, adapted to the unique structural, logistical and consumer realities of our markets. In 2025, we proved that this model positions us to scale with the right economics. As we shared at our Investor Day in November, the question was never whether Africa is ready for e-commerce. Demand has always existed and much of it remains underserved. The real question was when e-commerce would be ready for Africa. We believe that Jumia has now answered that question. This foundation drove our strong operating momentum in the fourth quarter. Physical goods GMV grew 38% year-over-year, adjusted for perimeter effects. Growth accelerated as the quarter progressed, reflecting strengthening demand and improved execution across our markets with seasonal events, including Black Friday, contributing to volume acceleration during the fourth quarter. At the same time, profitability metrics continued to move in the right direction. Adjusted EBITDA improved, cash burn was meaningfully reduced and the business absorbed higher volumes with increased efficiency. Based on the progress we made in '25 and the momentum exiting the year, we remain focused on achieving our target of adjusted EBITDA breakeven and positive cash flow in the fourth quarter of '26 and delivering full year profitability and positive cash flow in 2027. Let me now walk you through the key highlights of the quarter. Usage trends remain strong across our platform. Adjusted for perimeter effects, physical goods orders grew 32% year-over-year, driven by expanding geographic coverage, improved assortment and sustained consumer demand. Our focus remains squarely on physical goods, which accounted for nearly all of total orders and GMV this quarter. Digital transactions through the JumiaPay app now represent a residual share of our orders as we continue to prioritize transactions with stronger economics. Adjusting for perimeter effects, quarterly active customers increased 26% year-over-year, reflecting continued traction in both acquisition and retention. Repeat behavior continued to improve with 46% of new customers from Q3 '25 making a repeat purchase within 90 days, up from 42% in Q3 '24. Demand was broad-based across electronics, phones, Home & Living, Fashion and beauty and consistent across both countries, reflecting a similar quality of execution and inputs across our markets. Adjusted for perimeter effects, physical goods GMV grew 38% year-over-year in reported currency. Average order value for physical goods increased to $37 from $35 in Q4 '24, reflecting a mix shift towards higher-value categories such as appliances. Revenue totaled $61.4 million, up 34% year-over-year, driven by higher usage and improved monetization. First-party sales represented 49% of total revenue, supported by continued strength from international partnerships, including Starlink in Nigeria and Kenya. Now turning to profitability. The progress made over the past 3 years continues to translate into measurable operating leverage. Cost improvements across general and administrative, technology and fulfillment are structural. In addition, we renegotiated third-party logistics contracts and implemented increases in commissions and take rates across most countries in mid-January '26, reflecting the scale of our platform and improved service levels delivered to vendors. These changes are consistent across markets and reflect stronger marketplace fundamentals. Headcount declined 7% in '25 to approximately 2,010 employees. This is a more focused organization built to support significantly higher volumes without proportional cost growth. Looking ahead, we are targeting a further reduction in headcount in '26, primarily across technology and G&A, driven by continued efficiency initiatives and organizational streamlining. Fulfillment cost per order improved to $1.97, a 12% year-over-year reduction on a reported basis, reflecting productivity gains and economies of scale in fulfillment operations, increased call center automation and improved logistics partner rates. Technology and content expenses declined 6% year-over-year, reflecting automation, platform simplification and the benefit of renegotiated vendor agreements, including cloud infrastructure. As a result, adjusted EBITDA loss narrowed to $7.3 million from $13.3 (sic) [ $13.7 ] million in the prior year quarter. Loss before income tax was $9.7 million, a 45% decrease year-over-year or 17% decline on a constant currency basis. Quarterly cash burn declined to $4.7 million in Q4 '25 compared to $15.8 million in Q3 '25, reflecting tighter working capital management and improved operating efficiency. While we may continue to look opportunistically at financing options, based on our current trajectory, we continue to believe our existing liquidity is sufficient to reach profitability without raising additional capital. Turning to operational highlights and execution at the country level. Black Friday was a standout moment in our history. The event delivered strong volumes, higher customer engagement and improved repeat behavior. Performance during and after the event highlighted a strengthening marketplace flywheel as improvements in assortment, affordability and reliability reinforced our value proposition for Africa's value-conscious customers. We also continue to strengthen our international sourcing capabilities, particularly in China. To support this priority, we recently opened a new office in Yiwu, China, our second in the region and located within one of the world's largest wholesale commodities. This expansion strengthens our direct sourcing capabilities and deepens collaboration with a broader set of international suppliers. This enables us to expand assortment at attractive price points and deliver competitively priced goods to African consumers at scale. In the fourth quarter, we saw 6.1 million gross items internationally, up over 80% year-over-year, reflecting the continued scaling of our Chinese vendor base and a more diversified supply pipeline. Operationally, we continue to extend our reach beyond major urban centers. Orders from upcountry regions accounted for 61% of total volumes, up from 56% in the prior year quarter. These regions are delivering strong growth while benefiting from a cost structure that we believe scales efficiently with volume. In secondary cities, we are addressing clear customer pain points, including limited product availability and elevated prices from local traders. As a result, our value proposition continues to resonate strongly, driving both adoption and repeat purchase. Now at the country level. Nigeria delivered a standout quarter. Physical goods GMV increased 50% year-over-year, while physical goods orders grew 33%, marking the fourth consecutive quarter of double-digit growth. Performance was broad-based across key categories and channels with geographic expansion continuing to deliver results. Initiatives launched in the Northern region in the third quarter of '25 are translating into steady active customer growth, while the South-South and Southeast regions sustained strong performance. This momentum was supported by an improving macro environment in '25, including greater currency stability as well as the positive effects of structural reforms. Kenya performed strongly with physical goods orders up 50% year-over-year and physical goods GMV increasing 48% in reported currency. Performance was driven by a strong shopping season with Black Friday delivering a clear uplift. Ivory Coast delivered a strong performance with physical goods orders up 15% year-over-year and physical goods GMV increasing 31% in reported currency, reflecting higher value baskets and improved mix. Growth was driven by strong momentum in home and appliances as well as TVs alongside solid performance in Beauty. Ivory Coast remains a significant growth opportunity, and our market-leading position supports a continued focus on profitable growth. Egypt's performance this quarter validated the growth turnaround. Physical goods orders increased 23% year-over-year, while physical goods GMV grew 2% year-over-year, reflecting a return to positive growth. Excluding corporate sales, physical goods GMV grew 56% year-over-year, confirming a full market recovery. Growth was broad-based across core categories, supported by an optimized mass market assortment and a strong Black Friday campaign that contributed over half of quarterly volume. The buy now, pay later offering continued to deepen with record penetration in high-value categories, driving stronger conversion and higher ticket sizes. Upcountry expansion remained a tailwind with volumes shifting further towards these areas. Ghana delivered an exceptional quarter with physical goods order up 82% year-over-year and physical goods GMV increasing 124% in reported currency. This performance was supported by continued expansion of an increasingly loyal customer base, underscoring improving engagement and highlighting the scalability of our model in Ghana. Our other markets portfolio also performed well, collectively delivering 18% physical goods, GMV growth and a 16% increase in physical goods orders. In February '26, we announced our decision to cease operations in Algeria, which represented approximately 2% of GMV in 2025. We expect a short-term impact from employees and lease exit costs and asset liquidation. Over the medium to long term, this decision simplifies our footprint and improves operational focus, allowing us to allocate resources more efficiently towards markets with stronger growth and profitability profiles. The competitive environment remained rational during the quarter with competitive intensity continuing to normalize across our markets. We are seeing less aggressive behavior from certain global entrants in selected countries, including Nigeria, while our local market share continues to build. At the same time, we are seeing increased regulatory scrutiny on nonresident and cross-border platforms across several countries. Recent examples include the introduction of a new tax on the profits of nonresident e-commerce platforms in the Ivory Coast as well as Ghana's VAT Amendment Act, which requires nonresident digital and e-commerce platforms supplying services into Ghana to register for VAT and comply with local VAT requirements. These regulatory developments contribute to a more level playing field. As we begin '26, our focus shifts from rebuilding to scaling. First, we plan to accelerate top line growth across our existing markets. Upcountry regions already represent the majority of our volumes, and we still see significant opportunity to deepen penetration by leveraging the infrastructure and partnerships already in place. Second, we will continue to strengthen our value proposition by expanding and refining our product assortment. Improving availability, affordability and relevance remain central to driving higher conversion and order frequency. Third, marketing represents a meaningful growth lever for -- in 2026 and an important contributor to operating leverage. After rebuilding and stabilizing our off-line channels, we see significant opportunity to scale and optimize online marketing channels that remain underpenetrated, including CRM, paid online marketing, SEO and affiliate partnerships. As volumes increase, these channels benefit from improving efficiency and targeting, allowing us to support growth while maintaining attractive returns on investment. Fourth, '26 is about operating leverage. With our current cost base, we believe the platform can support meaningfully higher volumes. As scale increases, we expect fulfillment, technology and G&A costs to grow materially slower than revenue, driving margin expansion. We also intend to scale high-margin revenue streams. We believe that advertising remains underpenetrated and offers meaningful upside while Jumia delivery improves asset utilization and contributes incremental margin with limited additional cost. Taken together, these priorities reinforce our confidence that Jumia has entered its scaling phase, delivering stronger growth with improving profitability and having what we believe to be a clear path to breakeven. Let me close with this. Jumia operates in markets that remain significantly underpenetrated for e-commerce. Through years of on-the-ground execution, we have built meaningful barriers to entry, a trusted consumer brand and a playbook that demonstrably works. We believe that we are now in the right markets at the right time and finally, with the right product market fit. Our fourth quarter results reinforce that conviction. With that, I will now turn the call over to Antoine to walk you through the financials in more detail. Antoine Maillet-Mezeray: Thank you, Francis, and thank you, everyone, for joining us today. I will now walk you through our financial performance for the fourth quarter. Starting with revenue. Fourth quarter revenue reached USD 61.4 million, up 34% year-over-year or up 24% on a constant currency basis. Results reflect sustained consumer demand and consistent execution across our platform. Marketplace revenue for the fourth quarter totaled USD 31 million, up 36% year-over-year and up 24% on a constant currency basis. Third-party sales were USD 26.7 million, up 33% year-over-year or 22% on a constant currency basis. Growth was driven by solid performance in the marketplace, including healthy usage trends and higher effective take rates. Marketing and advertising revenue was USD 2.9 million, up 42% year-over-year or 33% on a constant currency basis. The improvement was driven by continued growth in sponsored products, with advertising revenue currently representing roughly 1% of GMV, we see meaningful opportunity to scale this channel. Value-added services revenue was USD 1.4 million, up 79% year-over-year or up 64% year-over-year on a constant currency basis. Revenue from first-party sales was USD 29.1 (sic) [ USD 29.9 ] million, up 33% year-over-year or up 23% year-over-year on a constant currency basis, driven by strong momentum with key international brands. Turning to gross profit. Fourth quarter gross profit was USD 34.2 million, up 43% year-over-year or up 31% year-over-year on a constant currency basis. Gross profit margin as a percentage of GMV was 12.2% for the quarter compared to 11.6% in the fourth quarter of 2024, reflecting continued progress in marketplace monetization. As we enter 2026, we implemented broad-based increases in commissions across most countries, leveraging the scale and improved service levels we have built with vendors. These changes are expected to support gross profit growth going forward. Now moving to expenses. We continue to see the benefits of our cost initiatives in the fourth quarter with additional improvements expected to materialize over the coming quarters. Fulfillment expense for the fourth quarter was USD 14.8 million, up 15% year-over-year and up 5% in constant currency, primarily due to higher volumes. Fulfillment expense per order, excluding JumiaPay app orders, was $1.97, down 12% year-over-year or down 20% year-over-year on a constant currency basis, reflecting productivity gains and economies of scale in fulfillment operations, increased call center automation and improved logistics partner rates. In January 2026, we also closed a new cycle of third-party logistics renegotiations, securing meaningful cost savings that are expected to further support fulfillment efficiency and margin progression in 2026. Sales and advertising expense was USD 7 million for the fourth quarter, up 47% year-over-year and up 39% in constant currency. The increase reflects targeted investment in customer acquisition, particularly across high ROI online channels, supporting efficient top line growth. Technology and content expense was USD 9.4 million for the fourth quarter, representing a decrease of 6% year-over-year or a decrease of 8% on a constant currency basis, driven primarily by continued headcount optimization and ongoing renegotiated vendor contracts. Fourth quarter G&A expense, excluding share-based payment expense, was USD 13 million, up 1% year-over-year and down 3% on a constant currency basis. Staff costs within general and administrative expense, excluding share-based compensation expense, decreased by 18% to USD 8.2 million. The fourth quarter of 2025 included a tax benefit of USD 4.3 million compared to $8.4 million tax benefit in the fourth quarter of 2024. Turning to profitability. Adjusted EBITDA for the quarter was negative $7.3 million or negative $10.2 million on a constant currency basis. Loss before income tax was $9.7 million, a 45% decrease year-over-year or 17% decline on a constant currency basis. Turning to the balance sheet and cash flow. We ended the fourth quarter with a liquidity position of USD 77.8 million, including $76.7 million in cash and cash equivalents and $1.2 million in term deposits and other financial assets. Our liquidity position decreased by USD 4.7 million in Q4 '25 compared to a decrease of $13.6 million in Q4. Net cash flow used in operating activities was $1.7 million in the quarter, including a positive working cap impact of $9.6 million. The improvement reflects the continued strengthening of our marketplace flywheel driven by higher volumes, improved payment flows and stronger bargaining power with large third-party accounts. CapEx in Q4 '25 was USD 1.7 million compared to $1.8 million in the fourth quarter of 2024, primarily reflecting investments in supply chain equipment ahead of the end of the year season. In summary, we delivered another quarter of solid execution and strong top line growth while continuing to improve cost efficiency. Progress on structural cost reductions, automation and cash discipline reinforces our confidence in meeting our near-term objectives and moving closer to profitability. Looking ahead, we remain focused on operational discipline, margin expansion and prudent and informed capital allocation, positioning Jumia for sustainable growth and long-term value creation. I'll now turn the call back over to Francis for a discussion of our updated guidance. Francis Dufay: Thanks, Antoine. Let me now turn to our expectations for '26. As we enter the next phase of scaling, we are refining how we frame profitability. Given our increasing focus on operating leverage and the underlying performance of the business, we believe adjusted EBITDA is the most appropriate metric to assess progress towards profitability. It provides a clearer view of operating performance and unit economics as non-operating items and non-cash charges become less representative of the business trajectory. Importantly, this does not change our underlying profitability objectives, and we believe we remain on track to achieve adjusted EBITDA breakeven and positive cash flow in the fourth quarter of '26 and delivering full year profitability and positive cash flow in 2027. With that context in mind, our focus for '26 remains on accelerating growth, driving further operating efficiency and continuing our progress towards profitability. We are seeing encouraging trends early in the year, which give us confidence in establishing our full year 2026 outlook. For the full year of 2026, we anticipate GMV to grow between 27% and 32% year-over-year adjusted for perimeter effects. On profitability, we expect adjusted EBITDA to be in the range of negative $25 million to negative $30 million. We confirm our strategic goal to achieve breakeven on an adjusted EBITDA basis and positive cash flow in the fourth quarter of '26 and to deliver full year profitability and positive cash flow in 2027. Looking specifically at the first quarter, GMV is projected to grow between 27% and 32% year-over-year adjusted for perimeter effects, and we expect higher cash outflows in the first quarter, reflecting typical seasonality and the timing of annual contract renewals for technology and insurance. As part of ongoing operational optimization, the company has announced it will exit Algeria in February '26 and expects to incur related onetime costs. Thank you for your attention. We'll now be happy to take questions. Operator: [Operator Instructions] Your first question for today is from Brad Erickson with RBC Capital Markets. Bradley Erickson: I guess just to start, if you had to kind of rank order the accelerants in 2026, you're talking about, I guess, you've got improving assortment, you're going to spend more on marketing, it sounds like, and then there's obviously just kind of the rising tide of underpenetrated e-commerce, which of those is kind of most impactful to the acceleration you see in 2026? And any other clear drivers you'd call out along those lines? Francis Dufay: Yes, sure. I think we have 3, maybe 4 main drivers. I mean the most important one, structurally speaking, would be assortment and our ability to bring more assortment, more availability at lower price points for value-driven customers. And that's been an effort that's been pushed for the past 3 years. So it's a long-term impact. Second big driver that's quite structural as well is coverage, market coverage. So we've significantly expanded our network back in '24 and in early '25 as well, and it will continue in '26. And as we cover a greater share of the population, well, the addressable market simply increases, and that's been a big push over the past few years as well. And then marketing started playing a more important role, I would say, in the second half of the year. And you've seen in the numbers that we've ramped up slightly our marketing investments in Q3 and Q4. And we see very strong return investments, particularly on the online channels that we have kind of revived in the process, and it's been contributing definitely to the acceleration you see in the second half of the year. And then you have a more diffused but very important factor, which is the improvement in quality of service and satisfaction. That is really hard to pinpoint in terms of very direct impact, but it's really happening on the ground. Bradley Erickson: Got it. That's helpful. And then to the point on capacity, you've said, I think, many times, including today that you have kind of what you need in place to support a lot higher volumes. As we look forward maybe over the next few years, how should we think about lead times for kind of further investment in capacity expansion? Francis Dufay: So you can look at it in different ways. I mean when we talk capacity, usually, I think about fulfillment and supply chains. And then you can discuss -- well, I mean, you can talk about the platform as well, and I'll take that one. When we look at the fulfillment capacity, which is the usual bottleneck for a growing e-commerce business, we believe we're in the right place in pretty much all countries until the end of '26 or maybe the end of '27. So the next 2 years should be very manageable with the capacity we have. I'm mostly talking warehouse space and equipment. We know already that some countries will need to scale and get to -- simply to move to bigger fulfillment centers, such as Ghana, for example, in '27. But most of the countries should be fine. We don't expect major CapEx on that front because we've done a pretty big work on this topic already in '24 and '25, moving to new bigger fulfillment centers in most countries. And then when we look at the tech platform, the tech stack, we believe we have the right tech stack to manage 2 or 3x the volumes we've been running in '25. So it would not take any major investment, additional major investment compared to the amounts you see today in our fixed costs to be able to sustain 2 or 3x the volumes. Bradley Erickson: Got it. That's great. And then following up kind of on the tech stack, and you mentioned the take rate expansion and some of the drivers there. Would you say that was kind of like a step-up to what we might consider now a market rate? Or is that more like an ongoing, say, annual thing? How should we think about that? Francis Dufay: So take rate expansion, well, I mean, we're a marketplace. So as you scale, you should be able to take more, right? That's the name of the game for all the big players. We see that happening with our customers and vendors as well. So for example, early this year, we've already renegotiated the rates. I mean, we've enforced new rates with all of our marketplace in all countries. We need to look at it as a gradual effect. We -- I mean, we see it as a byproduct of scale, obviously. and the gradual effect comes from improving commissions, which we do on a yearly basis, then improving retail margins -- sorry, reducing waste and very importantly, improving advertising monetization, so retail advertising, which we believe is still pretty low in our case. We're still around 1% of GMV. We believe we should be closer to 2%. We did not deliver as much as we wanted in '25, but I believe that we've taken the right steps, the right -- I mean, we put in place the right structural enablers to be able to scale our retail advertising. We've launched a new platform for sponsored products. We've reorganized the team, and we've really scaled volume with key accounts, so we can also sell more campaigns to brands. So we're looking for -- definitely, we're looking for an acceleration here in '26. Bradley Erickson: Got it. And then just in terms of the guidance for the year, can you just -- I guess, a couple of things on what you're sort of embedding First, just around first-party, third-party corporate mix? And then second, just are there any FX changes in there? Or is it just assuming kind of FX stays in the course? Francis Dufay: I'll take the mix, and I will let Antoine elaborate on the FX. I think high level in the guidance this year, we're not -- I mean, we're not betting on any significant volume in corporate sales. As you know, we've de-prioritized that line of business. And then we expect the mix of marketplace versus retail to be pretty much stable. I would say if we do well, we should slightly grow the share of marketplace, but we're assuming the mix pretty much stable. Antoine, you want to take the FX. Antoine Maillet-Mezeray: Yes. It's a bit of the same. On the FX side, we do not factor any potential improvement in our guidance. And typically, if you look at the recent evolution of the naira, this is not taken into account into the way we forecast. So a very cautious approach. Bradley Erickson: Got it. That's helpful. And then just on the exit of Algeria, I wonder, are there other countries that could be exit opportunities? And conversely, I guess, are there any countries you'd consider entering? Francis Dufay: So I'll start with the second half of your question. We're not considering entering any new country until we hit full year breakeven. So we don't want to get distracted. And we don't want to delay the target for breakeven because we know that any new country we would open would be loss-making for at least 2 years. So that's not part of the plan until we hit full year breakeven. And then other countries to exit, at this stage, we believe we have the right footprint with 8 core markets that all have pretty big scale and profitability potential. I think the message we gave to the teams as well in all countries is that all countries, all business units are expected to deliver scale and profitability in a very reasonable time frame. That's the message within the whole company. And we're not shy of taking the tough decisions even though the company is doing a lot better at group level, we'll still be able to reassess the portfolio and take tough decisions if needed. But no other country where we're contemplating an exit at this stage or thinking of. Bradley Erickson: That's great. And then one last one for me. Thanks for putting up with me here. You mentioned the balance sheet, not needing to raise capital. Obviously, you've been through this kind of period the last couple of years of being just incredibly judicious with your liquidity here. Is there any other reason or areas where you maybe think about playing a little bit more offense at some point where a capital injection might make sense? Francis Dufay: So -- yes, so it's very important for us not to need to raise capital. We don't want to have to do it. We want to be -- we want to keep control of our future, definitely. If we had more liquidity, and that's a big if, of course, there would be opportunities for us. And so we could push a bit harder on working capital to secure more assortment and better prices like we did last year after the ATM. We could be able to invest a bit more in marketing, especially now that we're seeing pretty good return on investment on key online channels. And there would be topic in tech and product where we could be able to invest a bit to get more efficiencies, for example, and get to profitability a little faster. But that's purely hypothetical. And we believe -- I mean, as I was saying, we believe we have what we need to take it to profitability without having to raise further cash. Operator: Your next question is from Fawne Jiang with Benchmark. Yanfang Jiang: First of all, I just want to focus a bit more on your underlining core markets. Tremendous growth momentum across the board. Just wonder how should we look at the overall macro and consumption dynamic for 2026? Related to that, Egypt is clearly on a recovery trajectory. Are you expecting Egypt to catch up in terms of the overall growth rate in 2026 or longer term? Or is the market somewhat structurally disadvantaged growing at a slower pace? Just want to get a sense on the potential of that market. Francis Dufay: Okay. Sure. Thanks. So on the macro side, I think we're now turning cautiously optimistic. Without sarcasm, I think Africa is starting to look like a very stable place related to the rest of the world. But more seriously, what we've seen over the past 1.5 years across the continent is that the macro is stabilizing. The most -- I mean, the best KPI for that is currencies. Well, the FX rates have been stable or slightly improving. For example, the Nigerian naira is slowly appreciating against the dollar, has been appreciating over more than a year. The Egyptian pound is stable. Most of the other currencies have been stable or appreciating. And that's really changing -- that's changing the whole context for us. Having stable currencies gives trust to our customers, and it enables massive improvement on the supply side because basically importers can start importing again. They know that currency will be fairly stable. They know what to expect. Chinese international sellers can ship again to Africa. They have more confidence that they will be paid the right amount 6 months later. So the whole stabilization on the currency front on the macro front is really helping the business. And across our footprint of 8 countries now, there should be no major disturbance in '26, no major election that should disturb the business. We're becoming fairly optimistic now about the stability of the macro and possibly slight improvement in many countries. I think the best example is Nigeria. I mean, Nigeria has been through hell for 3, 4 years. They've come back. I mean, they've taken very tough measures. The political reforms that have been implemented were tough and almost unexpected, but it seems to be working. And the whole economy is starting to get better, and Jumia will be well positioned to take advantage of that. And then when we look at Egypt, yes, we expect -- I mean, we do expect Egypt to catch up, right? There's no reason for Egypt to be a slow growth country among Jumia's portfolio. We believe in Egypt, we are relatively -- we're still a relatively small business in a big market, and there's definitely a lot of room for expansion. It's obviously a competitive market. So there's more competition in the big cities, main metropolitan areas, but we still have opportunities in those areas, and there's a great opportunity to expand up country like we've done successfully in the other countries. So yes, we have big expectations for Egypt. Yanfang Jiang: Understood. That's helpful. My second question is actually on the operating leverage. You guys have made substantial headway across fulfillment, G&A, R&D. One item like sales and marketing, you guys seem to be still fairly aggressive in 2025. I guess the question here is for 2026, how do you balance your user acquisition and retention, which is an important driver for your overall growth versus your marketing efficiency? Are we expecting like operating leverage for sales and marketing line for 2026? Any color on that, especially your cohort user behavior, repeat purchase? And yes, any granularity, that would be helpful. Francis Dufay: Yes. So just to explain first. So we've indeed scaled our marketing spend in H2 this year, but we believe for the right reasons. When you look at the presentation on Page 19, you have the breakdown of the whole operating leverage. It does make sense for us to push a bit harder on volumes because, well, all unit economics are a lot better. So now with 36% growth, we're able to get plus 100% on gross profit after free segment and after marketing. So the leverage is working and a slight acceleration in marketing, we believe, does make sense. However, our North Star is to become profitable at the end of this year and then full year '27, most important. That's the most important thing to us. We need to hit EBITDA breakeven. So we'll remain extremely reasonable in the way we spend our marketing money. So I think ballpark, H2 this year gives you an idea of what aggressive means for us in terms of marketing spend. Yanfang Jiang: Understood. Francis, another question I have is actually on your sourcing of supply. You mentioned that you opened a new center in Yiwu. How could that impact your potential, I don't know, assortment? Would that change your category exposure? How would that shape up your, I guess, AOV for 2026 and potential margin impact? Any color on yes, incremental, I think, availability? Francis Dufay: So that's exactly what you say. It's going to help us improve our category exposure because until recently in China, we had an office only in Shenzhen, which was the right place to start with. But the Shenzhen area is mostly famous for electronics, 3P. So we have plenty of suppliers to support us on, well, electronic accessories, devices and so on. But expanding to Yiwu gives us access to a supplier base more diversified with more fashion, more home products, home improvements, and that will really help us diversify the product mix we're getting from our international vendors. Of course, that push should help sales of relatively lower value items compared to what we're selling today, but with higher margins in percentage. So it's hard to -- I mean, it's hard to anticipate the impact on the whole AOV or the whole average item value at Jumia. But indeed, expanding in China and expanding specifically in this region should help to drive more volumes from Chinese vendors in categories where we know that the average selling point will be lower, but with very strong profitability. Yanfang Jiang: Understood. Last one on my side. You mentioned -- if I heard you correctly, you mentioned that the buy now, pay later has been an important driver for your Egypt market. I just wonder, can you remind us, do you offer that product across your market? And if not, how do you see the potential of that product services as, I guess, the driver for future growth? Francis Dufay: Sure. So what's specific about Africa when you mentioned fintech and as part of fintech consumer finance is that it's heavily fragmented. The regulation is very different market by market, and you end up with very, very different local ecosystems. Typically in Egypt, the ecosystem is very well structured. Banking regulation is very strong. Enforcement is strong. And there has been a very strong ecosystem for buy now, pay later with strong local providers who are willing to integrate with e-commerce platforms. So we've done a big push, and we -- I think we've been the leaders in onboarding as many of those players as possible. We've done a big push in onboarding so -- consumer finance providers fully online. And now it's a significant share of our sales in Egypt, particularly for high-value items like appliances, TV, devices and so on. But that's also quite specific to Egypt. What we see in the other markets is that we don't find the same kind of ecosystem. There are much fewer players in some countries like in Eastern Africa, it's only assets backed -- sorry, BNPL, so based on phones that can be disabled. And in most of the other countries where we operate, sorry, the ecosystem is just naturally at this stage. So it's on a country-by-country basis. And I cannot comment about when we could be -- we would be able to expand that across more countries. Operator: Your next question for today is from Ryan Sigdahl with Craig-Hallum Capital Group. Ryan Sigdahl: A lot has been asked here. I'm going to ask one and then just one follow-up here. I guess to be clear, I mean, very, very strong operational performance, nice acceleration fundamentals, a lot of things going very well. Curious if anything negatively surprised you in Q4. And I know we don't want to focus necessarily, but just looking at Q4 results relative to your guidance, anything to call out there? Francis Dufay: Yes. I mean, of course, not everything went well. I will not give you the whole list, but I think I'll give you one point, for example, the advertising, so basically monetization on the advertising side, as I was mentioning earlier, is still lower than our expectations in Q4 included across the whole year, actually, and that's the reason for deviation on the bottom line on our end, unfortunately. But yes, we did expect more in '25 and definitely at the end of the year from monetization -- advertising, sorry. What matters here is that we believe we have taken the right steps. So we've made a lot of changes on sponsored products for retail advertising earlier in the year. And we see that revenues are really improving literally on a weekly basis. And we've been rebuilding the team and rebuilding the processes so we can now go ahead and also monetize brands with bigger campaigns. And we're looking forward to seeing the results in '26 on the back also of much bigger volumes that definitely help when you want to sell advertising. Ryan Sigdahl: Good segue, Francis [indiscernible] my next question is just on the ads. I think it was mentioned 1% of GMV. Where do you think that can go in '26? Or what's implied? Where can that go longer term? And then what are you specifically doing today that you're going to improve brand advertising campaigns, et cetera. But are these sponsored listings? Is this advertising around the outside of the website, but help explain, I guess, really what you guys are doing and what you're going to do incrementally. Francis Dufay: Sure. So in Q4, our advertising revenue was about 1% of GMV. We believe that over the medium term, we should get closer to 2%, and that's the right benchmark for e-commerce players in emerging markets. It will not happen in '26, right? It will take a few years to get to 2%, but that's the right target for us with gradual improvement. What we've done in '25 to start getting there, so we have 2 different segments here. We have sponsored products or retail advertising that we mostly sell to medium-sized and smaller market size vendors -- marketplace vendors, sorry. And then we have marketing campaigns that we sell to official distributors and brands. On the first topic, so retail advertising, we've rolled out a new tool from a company called Mirakl that was implemented in the first half of the year, took a lot -- I mean, it took some time. It was quite well executed, I must say, from their end, but it took some time and it kind of disrupted our operations, of course, due to the transition. But we're now back on track. The teams really like the tool. The vendors give us really good feedback. It's reliable, it's stable and we see good profitability on the ads. So we are really seeing renewed momentum on that revenue line. And we're clearly going to beat last year's numbers in '26 by a margin. And then the second stream of revenue here is campaigns, mostly sold to big distributors and brands. '25 has been disappointing [indiscernible] mostly as we -- I mean, one of the big drivers has been the reduction of revenues we get from FMCG brands because we deprioritized FMCG back in '23, '24. And of course, the marketing dollars reduced as well in the process. What we've done this year is that we've rebuilt the team. We organized the teams and the processes, set new targets and the right incentives. We're rolling out a few specific tools and features that will be relevant for brands such as sponsored brands, for example. So you can bid for sponsored brands on the platform now has been released only a few weeks back. And now we have a much more focused and better organized team on the back of bigger volumes from -- for our brands on the platform, thanks to growth in most of our markets. And so we believe it should put us in a much better place for '26. Operator: Your next question is from Deepak Mathivanan with Cantor Fitzgerald. John Halpert: This is Jack on for Deepak. I'll start with just a little bit on competition. I know you said things are relatively rational from a competitive standpoint. But are you kind of seeing any outside competitive pressure more from the local or international side? Can you just like talk to that a little bit more about the dynamics you're seeing there? Francis Dufay: So to be honest, we haven't seen much change in the fourth quarter. Maybe -- I mean, I would say we've seen some softening from international competitors and not much change from local platforms. We -- I mean, there are a few countries where we're competing against local platforms. We're by far the market leaders in those countries. There would be Kenya, Nigeria, Morocco, for example. No, really no change. I mean, as usual, as I'd like to repeat, we believe that we have an edge against those local platforms because of -- I mean, thanks to our scale, thanks to the learnings we can get across Africa, thanks to our sourcing infrastructure in China and with international brands that are harder for them to reach. And thanks to our tech infrastructure that requires significant investment that's not sustainable for one single market. And then on the -- regarding international platforms, I think no meaningful change. We've seen Temu still active in Nigeria, still active in Ghana, active in Morocco, but we've seen the pressure slightly decreasing actually over the past 2, 3 quarters. We've seen big pushes and then its slowdown through the year of '25. What we're seeing now that's interesting is that local regulators are looking into the issue of international platforms, nonresident platforms. It took a bit of time like everywhere in the world. But basically, local regulators are starting to address the fact that international nonresident platforms are not really -- not contributing at all to the local economy. So we've seen new regulation in the Ivory Coast, in Ghana to make sure that VAT is implemented on their sales that there's a tax on their profits. And it all -- I mean, it's good news for us, right, because it contributes to a more level playing field for e-commerce players and some of the slightly unfair advantage that these guys used to have will be removed because they have to compete and also paying their taxes like everyone else. John Halpert: Great. No, that makes a lot of sense. And then just my second question is sort of around fulfillment. Obviously, down again year-over-year, excluding the digital. How much runway is there for kind of more structural improvements through efficiency gains and whatnot versus like do you guys expect to get leverage just from pure like order volumes going forward? Francis Dufay: Yes. So on that front, we have 2 things at play. We have productivity improvement, like pure productivity improvement, and then we have -- well, benefiting from scale effect and doing some work on it. So on pure productivity improvement, we still have some room to go. So we can still push more automation to our call centers, so we can manage more volumes with fewer people. We are looking to rebuild some of our warehouse management system features this year to have faster picking, faster packing, faster inbound and so on. So still a lot we can do on pure productivity topics, and we've massively improved tracking as well on those matters. And then we benefit from scale in many ways. Of course, in the fulfillment operations, there's a dimension of fixed costs and scale definitely helps. But also in the logistics or distribution operations, we are actually able to get much better prices from our 3 peers, thanks to volumes. A lot of our third-party logistics are running pickup stations. So they're running mostly fixed costs in those pickup stations. So when we increase volumes for them, we're actually able to discuss a new profit-sharing kind of and reduce their fees for each package. We're also able to optimize our moves for middle mile for the truck moves, and we can renegotiate better fees, better costs for all that part of logistics. So this is actually what we've been doing through the month of January and early February as well. So we've renegotiated lower fees with most of our 3 peers in all countries, both for last mile for door delivery and pickup stations, but also for middle mile for the truck moves. And that's definitely a byproduct of scale again, and that will keep on improving over time as we're able to sustain this growth rate. Sorry, Jack, ballpark, we're looking for about 10% year-over-year improvement in unit cost per package delivered. Operator: Your next question is from Tracy Kivunyu with SBG Securities. Tracy Kivunyu: One question from me on GMV guidance for next year. Considering -- I appreciate the feedback you've given on the question on whether you're looking at constant currency performance or not. But even on a constant currency basis, the guidance looks quite light considering there is the low base effect of corporate sales in the first quarter of 2025 that should help to boost that year-on-year comparison. So I was just wondering if there are any risks to that guidance in the markets that you're factoring in? Or are you just taking a more conservative approach than you were possibly when you're releasing your third quarter results? Francis Dufay: So we're not factoring any specific risk at market level. I think as I was mentioning, we're fairly confident with the macro environment, there are no specific events in the countries where we operate that will take place this year that might disrupt the market as far as we know. So I would say we've been -- I mean, we're providing a guidance that's realistic and related -- I mean, hopefully, a bit conservative. And -- sorry, and Tracy, I would add to that as well. I mean we're providing this guidance. And to your question, maybe it looks a bit shy compared to the growth rate we're delivering in Q4. But it's also a guidance that we want to deliver while improving the take rate. So we're increasing commissions, we're increasing fees. We'll be tighter on some dimensions of spend. So we look -- we'll be looking for better marketing ratios and so on. So we're adding additional constraints on that growth. So we believe it's the right balance here. Antoine Maillet-Mezeray: Maybe also corporate sales GMV was not extremely high in 2025, so less than USD 20 million, which is not very material. Tracy Kivunyu: Okay. And what is the scope of the commission increase in percentage terms, if you could share that you've implemented in this year? Francis Dufay: So we have not disclosed, but -- actually, it's public information in each country because we communicate those numbers to vendors. So it depends on countries. In some countries, we've increased by a few decimals. In some other countries, we've increased by almost 2 points. We've had a more aggressive increase on our international vendors because we believe that we're providing now a much better service with much better volumes for them. So we want to -- we need to monetize that a little bit as well and make sure it remains profitable for them. So all in all, at group level, I mean, we should be between 0.5 point and a full point over GMV ballpark. Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Jumia Technologies Ag, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Jumia Technologies Ag wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,362!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,164,984!* Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 196% for the S&P 500. 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