African e-commerce platform Jumia significantly narrowed its 2025 losses after scaling back operations in underperforming markets and tightening spending, strengthening its trajectory toward profitability. The New York-listed group reported a pre-tax loss of $60.1 mn (Kshs 7.8 bn), a 38.0% improvement from the previous year, as revenue growth and transaction activity accelerated into the final quarter. Full-year revenue rose 13.0% to $188.9 mn (Kshs 24.4 bn), while gross merchandise value (GMV) increased 14.0% to $818.6 mn (Kshs 105.6 bn), reflecting stronger engagement across its streamlined African footprint.
The company exited South Africa and Tunisia in late 2024 and formally ceased operations in Algeria in February 2026 as part of efforts to focus on higher-growth markets. Fourth-quarter momentum was particularly robust, with GMV surging 36% year-on-year to $279.5 million (Kshs 36.1 bn) and revenue climbing 34.0% to $61.4 mn (Kshs 7.9 bn). Operating losses narrowed sharply during the period, with fourth-quarter operating loss falling 39.0% to $10.6 mn (Kshs 1.4 bn), while adjusted EBITDA loss shrank 47.0% to $7.3 mn (Ksh 0.9 bn), supported by stronger marketplace volumes, logistics efficiencies, and disciplined cost management.
Cash flow performance marked a notable turnaround. Net cash used in operating activities dropped to $1.7 mn (Kshs 0.22 bn) in the fourth quarter, down from $26.5 mn (Kshs 3.4 bn) a year earlier, aided by a positive $9.6 mn (Kshs 1.2 bn) working-capital contribution. For the full year, operating cash outflows improved to $47.9 bn (Kshs 6.2 bn) from $57.2 mn (Kshs 7.4 bn) in 2024. Liquidity stood at $77.8 mn (Kshs 10.0 bn) at year-end, lower than the prior year when equity issuance had boosted cash reserves.
Operational indicators also strengthened. Physical goods orders grew 32.0% in the fourth quarter, while quarterly active customers rose 26.0%, pointing to improved user retention and engagement. Nigeria remained the group’s primary growth driver, with orders increasing 33% and GMV surging 50.0%. Kenya continues to operate within Jumia’s East Africa cluster, though the company no longer reports country-specific financial details.
The exit from Algeria, which accounted for roughly 2.0% of 2025 GMV—about $16.4 million (Kshs 2.12 bn) is expected to enhance operational efficiency and sharpen focus on core markets. Cost control remained evident, with fulfilment expense per order declining 12.0% to $2.0 (Kshs 254.0), reflecting productivity gains and improved logistics rates. Technology and content expenses also fell, while headcount was reduced by 7% to just over 2,010 employees as operations were streamlined.
Looking ahead, Jumia projects GMV growth of 27.0%–32.0% in 2026 on a perimeter-adjusted basis and expects an adjusted EBITDA loss of $25.0–$30.0 million (Kshs 3.2–3.9 bn). Management is targeting adjusted EBITDA breakeven and positive cash flow by the fourth quarter of 2026, with full-year profitability anticipated in 2027, underpinned by a leaner operational base and improving unit economics.
