…targets profitability by 2027
Jumia, Africa’s leading e-commerce platform, has announced plans to cease operations in Algeria in the first quarter of 2026, a move it says may temporarily weigh on its financial performance but will ultimately strengthen its long-term growth and profitability prospects.
The company said in a statement released on Tuesday that the decision will result in short-term costs, including employee termination expenses, lease termination fees, and asset liquidation charges.
However, Jumia expects that streamlining its geographic footprint will enhance operational efficiency and improve resource allocation, allowing it to concentrate on markets with stronger growth potential and clearer paths to profitability.
Jumia reaffirmed its commitment to delivering profitable growth in 2026 by scaling customer usage, improving operational efficiency, and further reducing cash burn. As part of this next phase of growth, the company has adopted Adjusted EBITDA as its primary profitability metric for guidance, noting that it better reflects underlying operating performance.
Read also: Jumia’s revenue surges 34% in Q4 2025, as group sets sights on 2026 breakeven target
Jumia also said it remains on track to achieve breakeven on an Adjusted EBITDA basis in the fourth quarter of 2026, with full-year profitability and positive cash flow targeted for 2027.
For the full year 2026, the company projects gross merchandise value (GMV) growth of between 27 percent and 32 percent year-on-year, adjusted for perimeter effects. Adjusted EBITDA loss is forecast to range between $25 million and $30 million.
In the first quarter of 2026, Jumia expects GMV to grow within the same 27 percent to 32 percent range year-on-year.
However, higher cash outflows are anticipated due to seasonal factors, annual contract renewals for technology and insurance agreements, and one-time costs related to the exit from Algeria.
The company cautioned that its forward-looking statements are subject to change and exposed to risks beyond its control, including political and economic conditions across its markets, the broader impact of regional conflicts, and global supply chain disruptions.
Jumia’s outlook follows a strong performance in the fourth quarter of 2025, when the company recorded revenue of $61.4 million, up from $45.7 million a year earlier. The revenue growth was driven primarily by its marketplace business, rising customer usage, and a standout performance in Nigeria.
Loss before income tax narrowed significantly to $9.7 million in the quarter, compared to $17.6 million in the same period of 2024, reflecting strong revenue growth and continued gains in operational efficiency.
“We closed 2025 with clear momentum across the platform, delivering strong GMV and revenue growth, improving customer engagement, and continued progress on our path to profitability,” said Francis Dufay, Jumia’s CEO. “In 2026, we’ll focus on scaling usage across our existing markets and deepening customer engagement by continuing to improve availability, affordability, and reliability.”
Dufay stated that the company remains focused on unlocking operating leverage, optimising its cost structure, and refining its market footprint.
“Our priority is driving usage growth in our core markets, intending to achieve Adjusted EBITDA breakeven and positive cash flow in the fourth quarter of 2026, and delivering full-year profitability and positive cash flow in 2027,” he added.
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