JMIA Stock Slides Pre-Market On Higher 2025 Loss Guidance Despite Long-Term Profit Target

• Jumia forecasts a 2025 loss before income tax to be between $50 million and $55 million, compared with the previous forecast of a loss in the range of $45 million to $50 million.
• Jumia added that AI-driven workflows in customer service, marketing, and technology operations are improving efficiency, streamlining processes, and supporting a leaner cost structure.
• The company’s third-quarter revenue came in at $45.6 million, compared with Wall Street estimates of $49.84 million, according to data compiled by Fiscal AI.

Jumia Technologies AG (JMIA) shares fell nearly 15% in premarket trading on Wednesday after the company widened its 2025 loss forecast, even as it reaffirmed its plans to reach full-year profitability by 2027. 

CEO Francis Dufay said that the company was confident about its turnaround strategy and that the third quarter marked a significant acceleration in customer demand and order growth.

“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation,” Dufay said.

Jumia’s 2025 Forecast

Jumia forecasts a 2025 loss before income tax to be between $50 million and $55 million. This compares to the previous forecast of a loss before income tax in the range of $45 million to $50 million.

The company said that it continues to streamline its organization, with a total headcount decline of 7% since December 31, 2024, and a payroll of just over 2,010 employees as of September 30, 2025.

“We are leveraging AI across key functions to enhance productivity and reduce operating expenses,” Jumia said.

Jumia added that AI-driven workflows in customer service, marketing, and technology operations are improving efficiency, streamlining processes, and supporting a leaner cost structure. “These initiatives are contributing to ongoing reductions in total operating expenses and improved scalability,” the company said.

The company said that it expects physical goods orders to grow between 25% and 27% for 2025, compared with the prior forecast of 25% to 30%.

Jumia has now projected gross merchandise value (GMV) to rise between 15% and 17% year-over-year, compared with an earlier expectation of 15% to 20% growth.

Q3 Earnings Fineprint

The company’s third-quarter revenue came in at $45.6 million, compared with Wall Street estimates of $49.84 million, according to data compiled by Fiscal AI.

Jumia said quarterly GMV was $197.2 million compared to $162.9 million in the third quarter of 2024. The company reported that its loss before income tax for the third quarter was $17.7 million, compared to $17.8 million a the same period last year.

Retail sentiment on Jumia jumped to ‘extremely bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Shares of Jumia have gained over 176% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: USA Rare Earth Stock Rises After Clearing Final Regulatory Hurdle In LCM Acquisition

Share

·

Add us on