Jumia Technologies AG (JMIA) saw its stock price plummet 15.16% during Tuesday's intraday trading session. The sharp decline followed the release of the company's fourth-quarter financial results, which presented a mixed picture to investors.
The e-commerce company reported a quarterly loss of $0.08 per share, missing analyst consensus estimates of $0.05 by 60 percent. While revenue of $61.395 million exceeded expectations and showed a 34.38% year-over-year increase, the significant earnings miss and continued operating loss of $10.6 million weighed heavily on investor sentiment.
Further contributing to the negative market reaction was Jumia's announcement that it will cease operations in Algeria, which represented approximately 2% of its gross merchandise value in 2025. The company anticipates short-term negative financial impacts from exit costs. Additionally, Jumia's guidance indicates it does not expect to reach breakeven on an Adjusted EBITDA basis until the fourth quarter of 2026, extending the timeline for profitability.