Jumia Technologies AG (JMIA) experienced a significant pre-market decline of 8.15% on Tuesday, following the release of its fourth-quarter financial results.
The e-commerce company reported strong year-over-year growth in revenue, gross merchandise value, and gross profit for Q4 2025. However, the market reaction appears focused on the company's continued operating loss of $10.6 million and its announcement to cease operations in Algeria. While Algeria represented only about 2% of GMV in 2025, the company anticipates short-term negative financial impacts from exit costs. Furthermore, Jumia's guidance indicates it expects to reach breakeven on an Adjusted EBITDA basis not until the fourth quarter of 2026.
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