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.
Growth and profitability metrics
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.
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.
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.
Supply, fuel and Ivory Coast pressures
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.
Cost actions and platform expansion
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.
Guidance and capital raise
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.
About Jumia Technologies (NYSE:JMIA)
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.
