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Investing.com -- Jumia Technologies AG (NYSE:JMIA) shares surged 14.9% in pre-market trading Thursday after the African e-commerce firm posted stronger-than-expected second quarter results and raised its full-year 2025 guidance. The company reported accelerating momentum in its core consumer business, improved cash flow metrics, and signs of operational discipline that are helping tighten its path toward long-term profitability.
Revenue for the quarter rose 25% year-over-year to $45.6 million, exceeding Wall Street’s estimate of $43 million. Adjusted EBITDA loss narrowed to $13.6 million from $16.3 million in the same period last year, while loss before income tax improved to $16.3 million from $22.5 million.
Key operational metrics also showed signs of traction, particularly in physical goods. Orders excluding Tunisia and South Africa (both exited markets) rose 18% year-over-year, while Gross Merchandise Value climbed by 10% on the same basis.
“Our second quarter results demonstrate continued momentum in our core consumer business, with robust usage growth and strong engagement across markets,” CEO Francis Dufay said in the company’s earnings release. “We also delivered a meaningful improvement in cash burn quarter-over-quarter, driven by growth and a positive impact from working capital.”
Jumia’s pivot away from lower-margin digital services to a focus on physical goods is reshaping its growth trajectory. Marketplace revenue came in at $21.6 million while first-party sales surged 47% to $23.6 million, driven by strong performance from global brands including Adidas (OTC:ADDYY) and Starlink.
Investors welcomed the guidance update, which boosted expectations for full-year physical goods order growth to 25%–30%, up five percentage points. Gross Merchandise Value is projected to grow 15%–20%, also raised from prior projections, while forecasted loss before income tax narrowed to a range of $45 million–$50 million.
The company reiterated its long-term goal of breaking even on a pre-tax loss basis by the fourth quarter of 2026. “These results underscore the resilience of our platform and our focus on profitable growth and operational excellence,” Dufay stated, underscoring the strategic effort to balance expansion with cost discipline.