Shares of Jumia Technologies AG (JMIA) are soaring 5.21% in pre-market trading on Thursday following the release of the company's first-quarter financial results and an improved outlook for future profitability. The African e-commerce giant reported revenue of $36.3 million for Q1 2025, demonstrating resilience in a challenging economic environment.

Despite posting an adjusted EBITDA loss of $15.7 million, Jumia has raised its full-year 2025 guidance, now expecting a loss before income tax of $50-55 million. This adjustment signals growing confidence in the company's financial trajectory. Furthermore, Jumia announced ambitious targets for the coming years, projecting to achieve breakeven in the fourth quarter of 2026 and anticipating a reduced loss of $25-30 million for the full year 2026.

Investors are particularly encouraged by Jumia's statement targeting full-year profitability on a loss before income tax basis in 2027. This clear path to profitability, coupled with the better-than-expected Q1 performance, has sparked renewed interest in the stock. As Jumia continues to navigate the evolving African e-commerce landscape, the market appears optimistic about its long-term prospects and ability to capitalize on the continent's growing digital economy.