Jumia Technologies AG

And let me reiterate, we remain fully committed to our strategic goal of achieving full-year profitability in 2027. Let me now walk you through some of our key highlights for the quarter. We continue to build momentum in usage trends, driven by solid execution across our markets. Adjusted for perimeter effects, physical goods orders grew 34% year-over-year, driven by strong customer demand, improved product offering, increased marketing efficiency, and our expansion into secondary cities. our core focus remained physical goods, which represented 100% of total orders and nearly all GMV this quarter. The remaining share came from digital products sold through the JumaPay app, such as Airtime and Vouchers. As we scale our core marketplace, we are phasing out these non-core digital transactions to streamline operations and enhance organizational efficiency. Adjusted for parameter effects, Quarterly active customers increased 22% year-over-year, reflecting healthy customer acquisition and retention, and marked the highest increase in the past three years. Customer loyalty also strengthened, with our NPS score increasing to 64 from 63 in the prior year period. In addition, 43% of new customers from Q2 2025 made a repeat purchase within 90 days, up from 40% in Q2 2024. Demand remains strong across key categories, including electronics, phones, home and living, fashion, and beauty. Adjusted for perimeter effects, physical goods GMV grew by 26% year-over-year in reported currency, and excluding corporate sales, GMV increased 37%, reflecting accelerating momentum in our core consumer business. The average order value for physical goods in Q3 25 stood at $35, done from $38 in Q3-24, mainly reflecting reduced corporate sales in Egypt. We expect GMV growth to accelerate over the remainder of the year as underlying demand remains robust, business fundamentals continue to strengthen, and we begin to lap the impact of lower corporate sales. Revenue reached $45.6 million, up 25% year-over-year, with first-party sales representing 52% of total revenue. In addition to top-line growth, we continue to make progress on monetization initiatives that enhance revenue quality and support margin expansion. Importantly, we believe that acceleration in usage is not coming at the expense of monetization. We're driving both growth and improved unit economics simultaneously. Our new retail advertising platform, launched in the second quarter of 2025, continues to scale across our seller base and represents a strategic high margin revenue opportunity, supporting our path to profitability. With advertising revenue at 1% of GMV, Jumias is substantial upside potential. In addition to our third quarter performance, we are sharing early fourth quarter trends to provide further visibility into the current momentum. In October, and adjusting for perimeter effects, physical goods orders and GMV each grew over 30% year over year. These results highlight sustained customer demand and strong start of the final quarter of the year, reinforcing our confidence in achieving our full-year outlook. Now let's discuss our progress towards profitability. We remain on track towards our profitability objectives, driven by disciplined execution and continued efficiency gains across the business. Our initiatives in G&A, technology, and fulfillment are delivering meaningful and sustainable cost improvements. We continue to streamline the organization. The total headcount declined by 7% since December 24 to just over 2,010 employees on payroll at the end of the third quarter, reflecting a leaner, more agile organization and ongoing efforts to strengthen operating leverage. Fulfillment cost per order decreased 22% year-over-year to $1.86, driven by structural efficiencies across our logistics network. Technology and content expenses decreased by 10% year-over-year, benefiting from automation, platform optimization, and improved vendor terms. As a result, adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year, reflecting both operating leverage and continued cost discipline. Loss before income tax was $17.7 million, a 1% decrease year-over-year or 8% decline on a constant currency basis. Cash used in operating activities declined year-over-year to $12.4 million, underscoring our focus on prudent capital management. We continue to make strong operational progress during the quarter, particularly in two strategic areas that are driving growth. First, our upcountry expansion is unlocking meaningful opportunities beyond major urban centers. We're leveraging our logistics and commercial infrastructure to efficiently serve secondary cities and rural regions, which are now driving some of our fastest growth. Orders from upcountry regions represented 60% of total volume this quarter, up from 54% in the same quarter last year. Second, we significantly expanded our international seller partnerships, particularly with suppliers from China. In the third quarter, we sourced 3.4 million growth items from international sellers, representing a 52% year-over-year increase, adjusted for perimeter effects. This allows us to offer a broader selection at more competitive prices while maintaining healthy unit economics and strengthening our overall value proposition. Turning to country level execution, Nigeria delivers strong performance with physical goods orders up 30% year-over-year and physical goods GMV up 43%, reflecting sustained momentum following the macroeconomic and currency challenges of 2024. Our upcountry expansion strategy is driving tangible results, fueling steady growth in our active customer base nationwide. Performance in the southwest and southeast regions remains robust, and we are seeing encouraging traction as we expand into the north, building a more balanced geographic footprint. Kenya also performs strongly, with physical goods orders up 56% year-over-year and physical goods GMV increasing 38% in reported currency. Growth was driven by our upcountry expansion as secondary cities and smaller towns continue to outpace Nairobi and other major urban centers. Operationally, we reduced logistics costs through better shipment consolidation, volume leverage, and route optimization, underscoring our ability to scale efficiently. We also launched a new initiative, Jumia Instant, offering four-hour delivery in Nairobi, focusing on more convenience-driven customers. Ivory Coast delivered a solid performance with physical goods orders up 23% year-over-year and physical goods GMV increasing 22% in reported currency, both accelerating from the second quarter. The growth acceleration demonstrates Jumia's ability to win market share, even in a major market. We remain focused on deepening engagement, improving monetization and expanding penetration from our clear leadership position. Egypt showed very clear signs of recovery. Physical goods orders increased 27% year over year, while physical goods GMV fell 23% in reported currency due to strong corporate sales in Q3-24. However, excluding corporate sales, physical goods GMV grew 44% year over year, marking an important inflection point after several quarters of restructuring. This improvement was driven by three factors. A rebuilt supply base with broader assortment in both high-value and high frequency categories, growing adoption of buy now, pay later for phones and TV, and early momentum from our upcountry expansion, which is driving higher volumes outside major cities. Ghana delivered outstanding performance with physical goods orders up 94% year over year and physical goods GMV increasing 157% in reported currency. This exceptional growth came despite significant currency volatility and was driven by our upcountry expansion and a broader product assortment that includes both local and international. Our other markets portfolio also performed well. Collectively, our remaining markets delivered 18% physical goods, GMV growth, and a 15% increase in physical goods orders. The competitive environment remained stable during the quarter. We continue to see a pullback from certain global entrants in some markets like Nigeria, while we continue to steadily gain local market share. Our localized operating model, built on strong vendor partnerships, cost-efficient logistics, and deep market knowledge remains a clear competitive advantage that is proving to be difficult to replicate. Looking ahead, we are very encouraged by the progress we are making across the business. Our focus remains on consistent execution, strengthening our unit economics, and capturing the significant growth opportunities ahead of us. We are building a stronger, more efficient and more trusted Jumia, one that can deliver sustainable profitable growth and create long-term value for shareholders, customers and partners across Africa. With that, I will hand it over to Antoine to walk you through the financial performance in more detail.

Thank you Francis and thank you everyone for joining us today. Let me now walk you through our financial results for the third quarter. Starting with our top-line performance, Third quarter revenue was 45.6 million USD up 25% year-over-year or up 22% on a constant currency basis. The increase reflects strong consumer demand and ongoing execution. Marketplace revenue for the third quarter was 21.5 million USD up 4% year-over-year and up 1% year-over-year on a constant currency basis. Third-party sales came in at 19 million USD, up 5% year-over-year or 2% on a constant currency basis. Growth was driven by strong momentum in our core marketplace business, where we continue to see healthy usage trends and higher take rates. This strength was partially offset by a 3.5 million USD decline in third-party corporate sales, mainly in Egypt. Excluding corporate sales, Third-party sales were up 30% year-over-year, or 26% on a constant currency basis, reflecting the solid performance of our marketplace platform. Marketing and advertising revenue totaled 1.3 million USD, down 24% year-over-year, or 26% on a constant currency basis. The decline reflected lower spending from large sellers, as brands reassessed their budgets from 2025 and 2026. This was partially offset by strong momentum in sponsored products, which continued to ramp up following the launch of our new retail advertising platform in the second half of 2025. With advertising revenue currently representing just 1% of GMV, we see significant upside potential as this revenue stream continued to scale. Value-added services revenue was 1.1 million USD up 59% year-over-year or up 56% year-over-year on a constant currency basis. Growth was driven by higher usage and improved take rates, partially offset by lower commissions from third-party corporate sales in Egypt. Revenue from first-party sales was 23.8 million USD, up 54% year-over-year or up 50% year-over-year on a constant currency basis, driven by strong momentum with key international brands. Turning now to gross profit. Third quarter gross profit was 23.8 million USD, up 4% year-over-year or up 1% year-over-year on a constant currency basis. Gross profit margin as a percentage of GMV for the third quarter was 12%, compared to 14% in the third quarter of 2024, and 13% in the second quarter of 2025. The year-over-year margin decline is primarily due to reduced corporate sales in Egypt. The sequential decline is mainly driven by currency depreciation in Ghana, which reduced reported revenue and gross profit quarter over quarter. Turning to expenses. While we continue to see benefits from our cost initiatives we expect further improvements to materialize over the next few quarters. Let me walk you through the key expense lines. Fulfillment expense for the third quarter was 10.4 million USD up 1% year-over-year and down 2% in constant currency. Fulfillment expense per order, excluding JumiaPay app orders, was $1.86, down 22% year-over-year, or down 25% year-over-year on a constant currency basis. Sales and advertising expense was 5.2 million euros for the third quarter, up 18% year-over-year, and up 19% in constant currency. The increase reflects targeted investment in sales and marketing, particularly across IROI social media channels, allowing us to efficiently scale top-line growth. Technology and content expense was 8.7 million USD for the third quarter, representing a decrease of 10% year-over-year and down 11% in constant currency. The decrease was primarily driven by ongoing account optimization and savings from recently renegotiated contracts. Third quarter G&A expense, excluding share-based payment expense, was 16.2 million USD, down 8% year-over-year, and down 10% on a constant currency basis. The year-over-year decrease was primarily driven by lower tax expenses, partially offset by higher staff costs and professional fees. Staff costs, within general and administrative expense, excluding share-based compensation expense, increased by 1% to 8 million USD, mainly reflecting currency translation effects. Turning to profitability. Adjusted EBITDA for the quarter was negative 14 million USD or negative 14.1 million on a constant currency basis. Loss before income tax was 17.7 million USD, a 1% decrease year-over-year or 8% decline on a constant currency basis. The loss in the quarter reflects a 0.1 million USD improvement in gross profit alongside 1.8 million lower operating expenses and a 2.6 million reduction in net finance results driven by lower net foreign exchange gains. Turning to the balance sheet and cash flow. We ended the third quarter with a liquidity position of 82.5 million USD including 81.5 million in cash and cash equivalent and 1 million in term deposits and other financial assets. Overall, Jumia's liquidity position decreased by 15.8 million USD in Q3 2025, compared to an increase of 71.8 million USD in Q3 2024, which included net proceeds from the August 2024 ad market offering. Net cash flow used in operating activities was 12.4 million USD in the quarter, including a positive working capital impact of 0.4 million. CapEx in Q3 2025 was 1.4 million USD compared to 0.9 million in the first quarter of 2024, primarily reflecting investment in supply chain equipment ahead of the end of the year season. In summary, we delivered another quarter of solid execution and strong top-line growth while continuing to reduce underlying costs. Our progress on structural cost reductions, automation, and cash efficiency reinforces our confidence in achieving our near-term targets and advancing toward profitability. Looking ahead, our focus remains on operational discipline, improving margins, and maintaining prudent capital allocation. These priorities will position Jumia for sustainable growth and long-term value creation. I now turn the call back over to Francis for a discussion of our updated guidance.

Thanks Antoine. Based on current business trends, we are refining our 2025 financial guidance as follows. We expect physical goods order growth to be in the 25% to 27% range. GMV is projected to grow between 15% and 17% year over year. we anticipate loss before income tax to be approximately negative $55 to $50 million. For 2026, we are maintaining our target for loss before income tax to be in the range of negative $25 to $30 million, reflecting continued improvement. We confirm our strategy goal to achieve breakeven on a loss before income tax basis in the fourth quarter of 2026 and deliver full-year profitability in 2027. Thank you all for your attention. We are now ready to take questions.