Jumia shares soar over 41% following strong Q1 2025 performance

Shares of Jumia Technologies AG (NYSE: JMIA) surged more than 41% month-to-date on the New York Stock Exchange after the company released its first-quarter 2025 financial results, signaling a notable recovery and renewed investor confidence.

Jumia reported a significant reduction in its pre-tax loss to $16.4 million for Q1 2025, down sharply from $39.6 million in the same period last year. The company’s active customer base grew to 2.1 million, up from 1.9 million, while orders processed rose to 5.1 million compared to 4.6 million a year earlier. This marks Jumia’s strongest quarterly performance in two years, driven by increased consumer engagement despite ongoing challenges in some markets.

Revenue for the quarter stood at $36.3 million, a 26% decline year-over-year, largely due to reduced corporate sales in Egypt and currency devaluations. Gross merchandise value (GMV) also fell by 11% to $161.7 million. However, excluding corporate sales, GMV grew by 10%, underscoring the resilience of Jumia’s consumer segment.

Operating loss widened to $18.7 million from $8.3 million in Q1 2024, and adjusted EBITDA loss increased to $15.7 million. Yet, the company improved its loss before income tax by 58%, helped by a $33.5 million improvement in net finance results, reflecting better cost management and reduced finance costs.

Jumia’s CEO, Francis Dufay, acknowledged the progress made but emphasized that profitability remains a key focus. “The gap is clear, and closing it is our top priority,” he said. He highlighted rising usage trends during the quarter as a positive sign and reaffirmed the company’s guidance to reach breakeven on a loss-before-income-tax basis by Q4 2026, with full-year profitability expected in 2027.

The company’s stock, which started the year at $3.85 before falling to a low of $1.78 in early April, has rebounded strongly since early April, reaching $3.33 by May 12, supported by a monthly trading volume of 27 million shares.