Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Jumia's Results Conference Call for the first quarter of 2026. At this time, all participants are in a listen-only mode. And after the management's prepared remarks, there will be a question and answer session. With us today are Frances Dufay, CEO of Jumia, and Antoine Melet-Misere, Executive Vice President, finance and operations. We'll start by covering the safe harbor. We would like to remind you that our discussions today will include forward-looking statements. Actual results may differ materially from those indicated in the forward-looking statements. Moreover, these forward-looking statements may speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the risk factors that could cause actual results to differ from the forward-looking statements expressed today, please see the Risk Factor section of our Annual Report on Form 20F as published on February 24, 2026, as well as our other submissions with the SEC. In addition on this call, we will refer to certain financial measures not reported in accordance with IFRS. You can find reconciliations of these non-IFRS financial measures to the corresponding IFRS financial measures in our earnings press release, which is available on our Investor Relations website. With that, I will hand the call over to Francis.

Good morning, everyone, and thank you for joining Jumia's first quarter 2026 earnings 2025 was the year we demonstrated the resilience and scalability of our model, and 26 is the year, we plan to demonstrate our path to profitability. Q1 26 showed that our momentum towards profitability is continuing, and in several important ways, accelerating. Over the past few years, Jumia has been building an e-commerce model designed specifically for Africa, adapted to the unique structural, supply, logistical, and consumer realities of our markets. In 2025, we proved that this model delivers scale with improving economics, and Q126 confirmed that the flywheel is turning. This foundation drove our strong operating momentum in the first quarter. GMV grew 32% year over year, adjusted for perimeter effects. Growth was broad-based across our core markets, reflecting the continued strengthening of our marketplace fundamentals and efficient execution. Profitability metrics continue to move in the right direction. Adjusted EBITDA loss narrowed to $10.7 million from $15.7 million in Q125. The business absorbed higher volumes with increasing efficiency while maintaining a disciplined approach on costs. Excluding the one-time cost related to our Algea exit in February 26, adjusted EBITDA loss would have been $9.7 million, reflecting an underlying improvement of 38% year-over-year in our core business. Based on the progress we made in 2025 and the momentum continuing into Q1-26, we remain focused on achieving our target of adjusted EBITDA break-even and positive cash flow in the fourth quarter of 26 and delivering full-year profitability and positive cash flow in 27. I should also note that we are monitoring the broader macro environment, including cost increases in memory chips and the ongoing geopolitical tensions in the Middle East, as well as their potential effects on global supply chains, shipping costs, and commodity prices. While we have observed limited impact on our business to date, we remain attentive to downstream risks, including potential pressure on smartphone components availability and transport costs. We believe the resilience of our model and diversity of our supplier base positions us well to navigate this uncertain environment. Notwithstanding these external matters, we reiterate our guidance for 2026. Let me walk you through the key highlights of the quarter. Usage trends remain strong across our platform. Adjusted for perimeter effects, physical goods orders grew 31% year over year, driven by expanding in-country geographic coverage, improved assortment, and sustained consumer demand. Our focus remains clearly on physical goods. which accounted for nearly all orders in GMV this quarter. Digital transactions through the JumiaPay app now represent a residual share of our orders as we continue to prioritize transactions with stronger economics. Relatedly, TPV and JumiaPayment gateway transactions have become less meaningful as indicators of our operating performance, and effective as of the first quarter of 26, we will discontinue the quarterly disclosure of these KPIs. Adjusting for perimeter effects, quarterly active customers increased 25% year-over-year, reflecting continued traction in both acquisition and retention. Repeat behavior continued to improve, with 47% of new customers from Q425, making a repeat purchase within 90 days, up from 45% in Q424. Demand was broad-based across electronics, home and living, fashion and beauty, and consistent across most countries, reflecting a similar quality of execution and inputs across our markets. Adjusted for perimeter effects, GMV grew 32% year-over-year in reported currency. Average order value for physical goods increased to $36 from $35 in Q125. Revenue totaled $50.6 million, up 39% year-over-year, driven by higher usage and improved monetization. First-party sales represented 46% of total revenue, supported by continued strength from international partnerships, including Starlink in Nigeria and Kenya. Now turning to profitability. The progress made over the past three years continues to translate into measurable operating leverage. Cost improvements across general administrative, technology, and fulfillment are structural. In addition, we renegotiated third-party logistics contracts in February and March and implemented increases in commissions and take rates across most countries in mid-January 26. This reflects the scale of our platform and improved service levels delivered to sellers. Importantly, these commission increases had limited impact on growth, validating our strategy of progressive monetization increases on the back of greater volumes and better seller experience. We also drove meaningful growth in higher margin revenue streams, with marketing and advertising revenue up 44% year-over-year and value-added services revenue nearly tripling, which both reflect improved platform monetization. These changes are consistent across markets and reflect stronger marketplace fundamentals. Fulfillment cost per order was $2.06, flat year-over-year on a reporting basis, or down 10% year-over-year on a constant currency basis. This reflects productivity gains and economies of scale in fulfillment operations, increased call center automation, and improved logistics partner rates. Most fulfillment operating expenses are incurred in local markets and denominated in local occurrences. Technology and content expenses declined 8% year-over-year, reflecting ongoing headcount optimization, automation, platform simplification, and the benefit of renegotiated seller agreements, including cloud infrastructure. As a result, adjusted EBITDA loss narrowed to $10.7 million from $15.7 million in Q125. Loss before income tax was $17.8 million, an 8% increase year-over-year or 21% decline on a constant currency basis, primarily reflecting non-cash foreign exchange losses. quarterly cash burn increased to 15.3 million dollars in q126 compared to 4.7 million dollars in q425 the shift from the previous quarter is consistent with typical seasonal dynamics this compares favorably to the 23.2 million dollars decrease in liquidity in q125 demonstrating the improvement in our financial trajectory now turning to operational highlights and execution at the country level. Q1 26 demonstrated continued execution strength across our markets. Supply fundamentals remained solid, with improvements in both local and international sourcing. Growth was supported by strong performance across multiple categories, with fashion and beauty among the top contributors to item sold growth year over year, and with international items continuing to gain share. Efficient marketing deployment, including CRM, paid online, SEO channels, supported customer acquisition at Attractive Unit Economics. In the first quarter, we sourced 4.9 million gross items internationally, up 87% year-over-year, adjusted for perimeter effects. This reflects the continued scaling of our Chinese seller base, as well as growing volume from our supply base from affordable fashion in Turkey. Operationally, we continued to extend our reach beyond major urban centers. Orders from upcountry regions accounted for 62% of total volumes, up from 58% in the prior year quarter, both adjusted for perimeter effects. These regions are delivering strong growth while benefiting from a cost structure that scales efficiently with volume. In secondary cities, we are addressing clear customer pain points, including limited product availability and elevated prices from local traders. As a result, our value proposition continues to resonate strongly, driving both adoption and repeat purchase. Now at the country level. Nigeria delivered a strong quarter. Physical goods GMV increased 42% year-over-year. Sustained growth was driven by a broad range of categories, with home and living performing particularly strongly alongside continued traction from upcountry expansion, where a large part of the addressable market remains untapped. We opened over 80 additional pickup stations during the quarter, further extending our delivery network. I should note that Nigeria experienced a significant increase in local fuel prices during March, which created headwinds in our 3PL cost negotiations. However, consumer demand remains sustained and strong. Kenya performed strongly with physical goods GMV up just below 50% year over year. Performance was driven by continued strong supply fundamentals and efficient marketing despite similar headwinds to other countries in the phones category. Strong performance in home and living driven by local suppliers and in fashion driven by international suppliers more than offset the tighter supply in phones. Kenya remains a relatively underpenetrated market for Jumia with vast opportunities upcountry, and we continue to invest in expanding our reach. Ivory cost growth gradually moderated over the course of the quarter. Physical goods GMV was up 16% over a year. Growth was affected by two converging headwinds. First, supply disruption in appliances, which is market-specific, and in smartphones, which is a global dynamic. Both felt directly in a market where we have our highest penetration levels. And second, a sharp decline in regulated cocoa farm get prices, down nearly 60% effective in March 26, which reduced the purchasing power of a large share of the upcountry population. Cocoa is the primary export of Ivory Coast, and approximately 6 million people depend on it for their livelihood. This is a meaningful demand-side headwind that we expect to persist in the second quarter. However, we remain confident in the fundamentals of our business in Ivory Coast, where we hold a very strong position with a trusted brand and healthy monetization. Egypt's performance this quarter confirmed sustained recovery. Physical goods GMV grew 3% year-over-year, excluding corporate sales, which were still material in Q125 but has since been deprioritized. Physical goods GMV grew 56% year-over-year, confirming genuine market-level recovery. Very strong dynamics on the supply side of our marketplace are driving top-line acceleration, supported by improved assortment and seller engagement. Our buy-now-pay-letter offering continued to gain traction, with strong penetration in high-value categories. Egypt experienced a fuel price increase in March as well, which we are monitoring. However, core marketplace dynamics remain positive. We are also expanding our delivery network through pickup stations in more remote regions, which are poorly served by physical retail. Ghana delivered an exceptional first quarter, with physical goods GMV increasing 142%, driven by upcountry expansion, a scaling of local marketplace, and strong supply from international sellers. Ghana was largely unaffected by the disruption in the electronics segment. Our current focus is to continue building logistics capacity to sustain this rapid expansion with stronger customer experience and cost efficiency. Our other markets portfolio also performed well, collectively delivering 10% physical goods GMV growth. Huguen then experienced a nearly one-week internet blackout during the quarter, temporarily impacting volumes, though the market still delivered growth for the period. In February 26, we completed our exit from Algeria, which represented approximately 2% of GMV in 25. The wind down resulted in total one-time exit costs of approximately $1 million, reflecting employee termination benefits and assets impairment, which were all recognized in our Q1 26 results. Over the medium to long term, this decision simplifies our footprint and improves operational focus, allowing us to allocate resources more efficiently towards markets with stronger growth and profitability profiles. We have not seen significant changes in our competitive environment in Q1 26. The softening of competitive intensity trends observed in the second half of 25 has continued, with competitive intensity remaining subdued across our core markets. The recent disruption of air freight going through the Middle East is expected to create headwinds for non-resident platforms that rely on direct international shipping, contributing to a more level playing field for locally embedded operators like Jumia. Most of our supply comes via sea freight, which was not impacted. We are also seeing increased regulatory scrutiny on cross-border platforms across several of our markets, further reinforcing this dynamic. We are navigating an international environment that is evolving quickly, with two main developments having the potential to impact our business. First, the memory chips and CPU price increases. We saw a delayed impact on entry-level phone prices and the availability of components for products like smart TVs taking place gradually over Q1. Phone prices increased by approximately 20% between late 25 and early April. We do not see this as a fundamental long-term shift, but it is impacting our business in the near term as supply chains reorganize. Distributors remain temporarily reluctant to release fresh inventory, while prices may increase further, and older, cheaper inventory in some markets is still temporarily competing with our more recent supply. We are mitigating this by diversifying our supply base for smartphones and scaling our marketplace across both local and international sellers. Second, there were in the Middle East. The most immediate impact was the disruption of air freight through the UAE from Asia, which affected some smartphone distributors. Supply routes have since reorganized through other hubs. There are also delayed effects. Disruption to helium supplies creates additional uncertainty for chips production, and the majority of our markets have seen fuel prices begin to rise from March, which is expected to weigh on local logistics costs. particularly for middle-mile trekking operations run by our local partners. The impact on our Q1 P&L has been limited, with extra costs primarily in Nigeria. If high fuel prices persist, we should expect greater pressure in Q2, potentially partially upsetting the savings from our 3PL rates in renegotiations. That said, our strategy of building pickup stations throughout countries is very helpful in this regard, as it means that we have already decorrelated a significant share of our delivery costs from fuel prices. In particular, 74% of our ship packages are fulfilled through pickup stations rather than door delivery in Q126, up from 67% in Q125, both adjusted for perimeter effects. We have also taken steps to electrify our last-mile delivery fleet in Uganda, and we are looking to replicate this successful pilot in more countries as we continue to reduce our dependence on fuel in logistics operations. 25 was the year when we showed that our business model is on the right track. It delivered growth and improved economics at the same time. 26 is the year when we intend to show that this model will take us to profitability. In this regard, Q1 is a strong data point that is consistent with Q425 trends. We see sustained growth despite an uncertain environment, continued operational leverage, and improved unit economics across the whole P&L, resulting in significantly reduced losses. We are committed to delivering the trajectory to breakeven by chasing more scale in a disciplined way, improving operational execution, and further streamlining our fixed cost base. While we are currently navigating an uncertain international environment, we believe that our business fundamentals, which were rebuilt from 22 to 25, mostly in much tougher times than this, are strong. We do expect some temporary disruption, but it does not change our mid-term profitability targets or our belief in Jumia's long-term opportunity for growth. With that, I will now turn the call over to Antoine to walk you through the financials in more details.

Thank you, Francis, and thank you, everyone, for joining us today. I will now walk you through our financial performance for the first quarter. Starting with revenue, first quarter revenue reached $50.6 million, up 39% year-over-year, or up 28% on a constant currency basis. Results reflect sustained customer demand and consistent execution across our platform. Marketplace revenue for the first quarter totaled $27 million USD, up 50% year-over-year, and up 35% on a constant currency basis. Third-party sales were $23.2 million USD, up 45% year-over-year, or up 31% on a constant currency basis. Growth was driven by solid performance in the marketplace, including healthy usage trends and higher effective take rates. Marketing and advertising revenue was 2.2 million USD, up 44% year over year, or up 31% on a constant currency basis. The improvement was driven by continued growth in sponsored products, supported by strong tools rolled out in mid-2025 that increased seller adoption, improved return on ad spend, and drove greater density and competition on all marketplaces. With advertising revenue currently representing roughly 1% of GMB, as we are improving this figure, we see meaningful opportunity to scale this profitable source of revenue. Value-added services revenue was US$1.7 million in the first quarter of 2026 compared to US$0.6 million in the first quarter of 2025, driven by strong growth in warehousing fields, reflecting higher volumes flowing through our storage infrastructure, largely driven by demand from Chinese sellers and improved monetization of our warehousing services. Revenue from first-party sales was 23.1 million USD, up 30% year-over-year, or up 21% year-over-year on a constant currency basis, driven by strong momentum with key international brands. Turning to gross profit. First quarter gross profit was $29.4 million USD, up 48% year-over-year or up 33% year-over-year on a constant currency basis. Gross profit margin as a percentage of GMB increased by 160 bps to 13.9% for the quarter, compared to 12.3% in the first quarter of 2025, reflecting continued progress in marketplace monetization. As we enter 2026, we implemented broad-based increases in commissions across most countries, leveraging the scale and improved service levels we have built with sellers. Q1 2026 was already tracking the expected impact, with gross profit margin expanding by 160 dips year-over-year, marketing and advertising revenue up 44%, and value-added services revenue nearly tripling we expect these trends to continue supporting gross profit growth going forward now moving to expenses we continued to see the benefits of our cost initiatives in the first quarter with additional improvements expected to materialize over the coming quarters fulfillment expense for the first quarter was 12.2 million usb up 29 percent year over year and up 17% in constant currency, primarily due to higher volumes. Fulfillment expense per order, excluding JumiaPay app orders, was $2.06 flat year-over-year or down 10% year-over-year on a constant currency basis, reflecting productivity gains and economies of scale in fulfillment operations, increased call center automation, and improved logistics partner rates. Sales and advertising expense was $5.1 million USD for the first quarter, up 64% year over year, and up 54% in constant currency. We view this increase positively. We are scaling high ROI marketing investment on the back of stronger product fundamentals, improved quality of service, and higher platform reliability, driving not only top-down growth, but also better unit economics as higher volumes and improved customer retention contribute directly to operate leverage and margin improvement. Technology and content expense was $8.9 million for the first quarter, representing a decrease of 8% year-over-year or a decrease of 10% on a constant currency basis, driven primarily by continued headcount optimization and ongoing renegotiated seller contracts. First quarter G&A expense, excluding share-based compensation expense, was $16.8 million, up 4% year-over-year, and down 3% on a constant currency basis. The year-over-year increase was primarily driven by staff costs with general and administrative expense, excluding share-based compensation expense, which increased by 16% to $9.1 million USD, driven by approximately 0.8 million USD in one-time termination benefits related to our Algeria exit and the appreciation of local currencies against the US dollars compared to the first quarter of 2025. We continue to streamline the organization. The total head count has declined by 8% since December 31st, 2024, with just over 1,980 employees on payroll as of March 31st, 2026. At the end of the fourth quarter of 2022, when current leadership was installed, we had 4,318 employees. We are actively working to further reduce headcount, continue process automation, and leverage AI tools. We expect to reduce our headcount by at least an additional 200 full-time employees over the next two quarters more broadly ai and automation are becoming meaningful drivers of efficiency across jumia we are deploying ai tools across corporations finance processes headcount efficiency programs and our technology organization encompassing cyber security monitoring and software development which supported the net FT reduction and road efficiency gains year-over-year. Importantly, AI is also helping us solve problems on the ground. In logistics, it improves routing and reduces failed data risk. In customer services, it enables faster resolution with fewer agents. And in sellers' operations, it streamlines onboarding and compliance monitoring. This is not only reducing cost, but also improving the quality of service we deliver to customers and sellers, reflecting our ongoing commitment to structural cost efficiency. Turning to profitability, adjusted EBITDA for the quarter was negative 10.7 million or negative 10.9 million on a constant currency basis. Loss before income tax was 17.8 million, an 8% increase year-over-year or 21% decline on a constant currency basis, primarily reflecting non-cash foreign exchange losses. Turning to the balance sheet and cash flow, we ended the first quarter with a liquidity position of $62.6 million, including $61.5 million USD in cash and cash equivalent, and $1.1 million in term deposits and other financial assets. Our liquidity position decreased by $15.3 million in Q1 2026, compared to a decrease of $23.2 million in Q1 2025. Net cash flow used in operating activities was $12.5 million in the quarter, including a broadly neutral working capital contribution. The improvement reflects the continued strengthening of our marketplace flywheel, driven by higher volumes, improved payment flows, and stronger bargaining power with large third-party accounts. In summary, we delivered another quarter of solid execution and strong top-line growth, while continuing to improve cost efficiency. Progress on structural cost reductions, automation, and cash discipline reinforces our confidence in meeting our near-term objectives and moving closer to profitability. Looking ahead, we remain focused on operations discipline, margin expansion, and prudent and informed capital allocation, possession in Jumia for sustainable growth and long-term value creation. I now turn the call back over to Francis for a discussion of our outdated guidance.

Thank you, Antoine. Let me now turn to our expectations for 2026. Our focus for 2026 remains on accelerating growth, driving further operating efficiency, and continuing our progress towards profitability. We are seeing continued strong momentum, validated by our Q1 results, which give us confidence in reaffirming our full year 2026 outlook. We are navigating an evolving international environment. While we expect some temporary disruption from memory chips and CPU price pressures and the ongoing conflict in the Middle East, our business fundamentals are strong. Our Q1 26 results demonstrate continued execution, and we have not changed our mid-term profitability targets or our belief in Jumia's long-term opportunity for growth. for the full year 26 we anticipate gmv to grow between 27 32 percent year over year adjusted for perimeter effects on profitability we expect adjusted abda to be in the range of negative 25 to negative 30 million dollars we confirm our strategic goal to achieve break even on an adjusted abda basis and positive cash flow in the fourth quarter of 26 and to deliver full-year profitability and positive cash flow in 27. Looking specifically at the second quarter, GMV is projected to grow between 27% and 32% year-over-year, adjusted for perimeter effects. Thank you for your attention. We will now be happy to take your questions.

Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star 1 to ask a question. One moment, please, while we poll for questions. Your first question for today is from Jack Halbert with Cantor Fitzgerald.

Thanks, guys, for taking my question. I just have two fleas. So on the memory chip inflation, are you maybe able to quantify this at all in terms of the impact in the quarter and maybe how much of this has been resolved already versus expected to continue in 2Q and beyond? And just is it more about consumers like deferring purchases, trading down, or is it more of a supply availability issue? That's the first question. And then the second question just on the ai efficiency you guys mentioned and uh i think the planned uh 200 uh reduction in headcount um first just how much of this headcount reduction is tied to the algeria exit if at all and then maybe on the ai side what are a few examples of areas you're seeing the most efficiency in the business from ai currently thanks hi jack um let me take those two questions

And Antoine will also comment on the AI impact across our business. Starting with memory chips, CPU, prices, inflation. So to quantify the impact, you can look at our presentation where we show the share of smartphones category in our mix. You'll see the whole smartphones category, I mean, is directly roughly 10% of all sales in GMV. This is usually a category with lower unique contributions. It's lower margins than, let's say, fashion, for example. So it definitely has, I mean, it's not 10% of our gross profit, as you can imagine. It's not the whole category that's in danger. Obviously, it can impact the growth of the category, and it has in the first quarter. It's likely to continue in the second quarter. But we're not talking of a major impact over the whole top line of Jumia, okay? It's something that we have to flag because it's global trends and it's relevant for our business. But we're talking impact on the fraction of our total business. And it will not wipe out like half of the sales, obviously. It's limited. And most importantly, we see it as temporary. The timing here is that we had delayed impact, really. A lot of people asked us questions late 2025 and in the first month of 26. and really not much was changing on the market at this time. And then the price increase of directionally 20% that we've mentioned on entry-level smartphones was mostly felt in the month of March across key countries. So that's directionally what happened. We believe it's a matter of timing. I mean, we're used to those kinds of supply disruptions and market reorganizations. So it doesn't last forever, but we know that for a couple of months supply may be disrupted some brands may be doing better and some brands may be more disrupted which we're seeing on the market some brands will be running out of stock some brands will still be available with sometimes lower price increases for example we see that samsung has had lower price increases because they have much better integration of the whole supply chain but basically we see it as temporary disruption as the as the supply chain reorganizes um and when it comes to consumer impact which you were asking um we see a mix of both right we see a mix of of course prices increasing so consumers are straight trading down when people are still buying smartphones that will never change but they're buying lower specs with the same amount of money in their in their pockets um and on the other hand we also see supply i mean your supply availability issues on very specific brands in very specific markets So as we mentioned earlier in the call, we've been more impacted in the Ivory Coast, for example, than in Kenya in terms of pure supply availability. So all of that is having an impact, some level of impact, but we see it as clearly temporary. It's not a long-term challenge. We will keep on selling smartphones and the market will reorganize. And what matters is that we have access to the best supply, the best prices, and our distribution is a huge advantage when it comes to selling smartphones across Africa. And then to your second question about headcount, the 200 target is not tied to Algeria. So most of the impact on Algeria is already behind us. So the 200 headcount reduction that we mentioned has nothing to do with the exit from Algeria. Antoine, do you want to comment on the use of AI across our team?

Yes, I can take this one. Thank you. Obviously, we're using AI in tech, be it in cybersecurity or coding. We are able to be much, much more productive thanks to the different tools that we are using. We pay a lot of attention to be agnostic in terms of tools so that we don't end up with one or two suppliers that will change the pricing policy overnight. But we are going much further than pure tech. We are using AI in accounting, for instance, to automate bank reconciliations. If you want a very pragmatic example, we are also using AI in HR. Basically, we have a lot of database which are very structured. and ready-to-be-used, consumed by AI, allowing us to produce smarter reporting in a much faster way and being able to share the information across our very large footprint, resulting in better efficiency.

Awesome. Thank you, guys.

Your next question is from Brad Erickson with RBC Capital Markets.

Hey, guys. Just a couple of follow-up on that first question. And I guess with maintaining the full year guide looks like maybe a little bit of deceleration built in there through the year. I guess would you say that outlook kind of reflects this idea that, you know, some of these headwinds you're talking about are sort of dynamic and adjusting and reflected in Q2, but then sort of stabilized through the year? Or is there any contemplation in the range that maybe things get worse?

um well in the current international environment if you brad if you know for sure what's going to happen please tell me um we could make a lot of money um well more seriously we we analyzed some level of uncertainty in the international environment with very specific aspects that can have a negative impact on our planet we mentioned um chips prices and and true prices We remain confident in the range that we have given as guidance for the full year and for the second quarter. It covers, it includes some level of uncertainty, but I think it reflects, I mean, the fact that we stabilized that range reflects our opinion that most of the disruption we're seeing is temporary. So we're seeing real headwinds like the demand side headwinds in the Ivory Coast due to cocoa prices is real and can be felt on the ground. Smartphones price increases and supply disruption is real and can be felt on the markets. But we all see that as quite temporary and really not disrupting the fundamentals of our business, neither the mid-term or long-term opportunity. And we're also seeing continued strength in the trends in several countries, especially Nigeria, which is still growing over 40 percent, Ghana, which is growing over 100 percent. So in short, those headwinds and that level of uncertainty is not structurally challenging our business and it's not something we expect for the long run. So this range of 27% to 32% or top-line growth that we're giving for the second quarter as well is our best assessment in the current environment based on the early results of the quarter that we're already seeing and reflects the level of confidence in our business model.

Got it. And then you called out marketing and being a strong point in your prepared remarks. I guess just within your outlook, how much kind of flexibility do you think you have on marketing, given some of these other headwinds you're talking about? And I guess how much kind of like offense do you feel like you can play here in 2026 in terms of, you know, putting your putting your foot down on on marketing or is it still fairly measured given how some of the macro factors you're talking about? Just just kind of the upside downside considerations there with with marketing spend.

Yeah, I think three things on the marketing side. So first of all, I think we remain at spend ratios that are very reasonable for an e-commerce company of our size. Our ratio of spend is slightly lower than much, much bigger peers in emerging markets, which shows frugality and efficiency in that field. So we were very confident in our ability to spend very efficiently on marketing budget and driving strong returns. Second, we still have major improvements coming over the year in terms of efficiency and better use of our marketing channels, especially online. and third we are very reactive as well a large part of those budgets are spent on online channels where it's very easy to uh to pilot on a monthly weekly daily basis um so we we are able to make decisions if needed if we see low attraction in a given market we're very dynamic in relocating budgets when we when we need to on a daily or weekly basis um at this stage uh we believe we We still have, I mean, we do have sufficient traction and that justifies the amount that we're spending. But we are very flexible and we can be extremely reactive if we see different trends.

Got it. And then one last one. When you think about the journey to cash flow positive and the next year, you talked about the headcount reduction here in the next few quarters. Besides that, what are some of the major pain points on reaching that goal that you feel like you still have to get through? You mean the goal of cash flow positive?

I would not talk about pain points. I mean, I let Andre in comment as well, but I think the path is pretty clear, right? I mean, if you look at our numbers now, it's not just us talking. You have very clear, verifiable numbers showing that we're able to scale, we're able to improve the unit economics, get operating leverage, and further reduce the fixed costs. So there's a very clear trajectory that takes us to break even. It's mostly an execution game. It's mostly an execution game. I would not say we have blockers or pain points. We know very much what we're working on. We need to keep on scaling the top line and keep on delivering those improvements in the unit economics and further reducing in absolute terms the fixed costs. I think you can see a clear trajectory in the last two quarters. It's extremely consistent. It's all about execution. Unless there would be a major macro disruption that we're not seeing at this stage, it's really about execution.

Your next question for today is from Ryan Sigdal with Craig Hallam.

Hey, guys. Very nice quarter in execution. um laundry list of let's call them crosswinds some headwinds uh in q1 into q2 uh outside of those it feels like the business is actually outperforming because you reiterated the guide the outperformed in q1 q2 guide is in line despite kind of all of those challenges so i guess trying to take a step back and maybe normalizing for a lot of those uh outside factors how you feel about the progress thus far in the year internally.

Yeah, thanks, Ryan, for putting it this way. I mean, Antoine and I are very deeply in the business and it's sometimes good to step back and realize the progress. I mean, we have a tendency to look more at the problems than at the successes, but it's how we manage to push it forward. But, yeah, I think there are very clear bright sides this quarter. It's very clear, and that's what you see in our presentation on the operating leverage. And we see that we, again, this quarter, just like in the fourth quarter of 2025, we're able to show significant GMV growth. So the business model is working while clearly improving all the unit economics. So 31% GMV growth that translates into a significant improvement of 64% of all gross profit after fulfillment and marketing costs. So that's real operating leverage, and we're able to further reduce our fixed costs thanks to pretty hard work on tech, specifically this quarter, but also a lot happening in G&A that will pay off in the coming quarters. You see the one-third, the 32% improvement in adjusted BTA. So I think the key message of this quarter is we're able to show very consistent improvement after Q4 with significant growth that's sustained in spite of the environment and continued progress on the end economics and fixed costs. And we expect that to continue. There's no reason why the trends should change in the coming quarters.

Very good. We've noticed, you mentioned, you know, Nigeria strength, we've noticed an expanded pickup station footprint there, particularly in secondary cities. Can you talk about Nigeria, but also, you mentioned it in Kenya and others, but kind of the upcountry expansion, how you think about that strategy with pickup stations, and then if maybe that strategy has evolved or changed in recent kind of months, as you guys have right sized the cost structure, infrastructure and overall company.

yeah so um i'll talk about at niger right afterwards but overall across countries we keep on expanding our reach so basically opening new pickup stations in new cities that we're not covering or densifying the network in existing bigger cities this is a very important component of our of our growth plan because it basically increases the addressable market right we are building our distribution network and partnering with local entrepreneurs. And if we don't have, I mean, if we do not build distribution network in a given city, it means that city is outside of our addressable market. So by expanding this network of pickup stations, we are increasing our addressable market, which is arguably one of the easiest and cheapest ways to grow out our plane. This is happening across all countries. But Nigeria is the most striking example. So a few months back, in Nigeria, we were still covering about one-third of the adjustable market of the population. If we looked at the cities where we had established distribution, the total population was about one-third of total population, which leaves massive room for improvement. In our more mature markets, we're close to 60 percent, in Ivory Coast, for example. So it gives you an idea of the potential that's still untapped in a country like Nigeria. So we're very, I mean, we're happy about the growth in Nigeria. We believe we can still get more than that. The growth in Nigeria is largely driven by upcountry. So distribution expansion, that's a big driver. But we're also seeing very favorable trends across categories and supplies. We mentioned home and living as a strong category this quarter in Nigeria. We're seeing strong engagement in our local marketplace. We're seeing increased supply from international vendors, mostly from China, but also from Turkey in Nigeria. So I think we have lots of tailwinds in Nigeria and the hard work of the past couple of years is really paying off, which is critically important in a market where, first of all, there's so much potential to address. Second, the competitive intensity has reduced around us. And third, and quite importantly, it's a market where we have good unit economics, especially after the devaluations over the past few years. Local unit costs are fairly low, and it's quite profitable to scale in Nigeria, to put it this way.

Setting times. Well done, guys. Thanks.

Thanks, Ryan.

Your next question is from Fawn Jang with Benchmark Company.

Thanks for taking my question. First of all, your international seller growth appeared very strong. I just wonder how should we think about the merchants of pub and the typical lead time from onboarding to more meaningful GMV contribution, particularly considering you are opening a new sourcing center in Yiwu, and how would that

potentially impact your takeaway going forward um yeah um hi hi um so uh that's an important question yes because so um how can i put it so the growth we're seeing today um in uh in volumes items sold and whole business from international sellers um is actually the result of the last three to four years of work typically the the timelines when when supply when a new chinese vendor is on board it um we expect meaningful contribution after more than a year or sometimes two years or more uh to deliver volumes and margins um it's because we on board we onboard vendors who don't always i mean don't know very well our markets they need to test the waters first they send small small supply to the countries and then gradually they will scale their inventory in our most important countries so this process does take time so they learn the market and they commit more and more working cap and inventory to our countries um and so what you see today is really the result of like three to four years of real hard work um what you see on the ground in china i mean since um since the whole terrorist thing last year we've seen like strong i mean much stronger enthusiasm and uh and strong engagement uh with uh with chinese vendors we've seen more and more vendors willing to join our platform and sell on Jumia. The trend has been very well maintained over the past quarter and it's still consistent now. And this increased volume of onboarding of vendors is going to reflect over time, but it's not yet fully felt in the numbers. So the good news here is that we really have a pipeline of vendors and a pipeline of supply coming to Africa that should get stronger over time due to the medium to long-term structural nature of the work we're doing with our Chinese vendors. And in terms of margins, as we mentioned in the past, the rise of international supply is accretive to our margins. These vendors typically operate in categories that have the highest, higher, sorry, gross profit ratios, such as fashion, accessories, women living, and so on. They are also much better contributors to our margins when it comes to purchasing advertising services and using our storage services. So at the end of the day, it enables us to get higher monetization from those sellers and from the local marketplace.

And so, for instance, another, I guess, topic going into the touch point is actually your fulfillment leverage. You guys continue to show the leverage there. Just given you are going through very high growth momentum, especially in some of the countries, how sustainable is the fulfillment leverage? Any logistic capacity constraints or upcoming investment we should be mindful?

uh thanks so um i spent some time on fulfillment it's an important one because it's our biggest cost bucket um so first of all i mean we still think some leverage on cost this quarter um with the fulfillment cost per order that's declining 10 percent in local currency and it's almost all local opex so the local currency view is relevant but we're not happy with the progress right in dollars we're flat year over year at 2.1 dollars per per gross order we want to do better than that So just to set the stage, we're not happy with the progress here, although there is some leverage that's visible in local currency. We believe those costs per order should keep on going down, going forward, and scale should play in our favor. There can be very specific temporary cases where very high volumes lead to some level of inefficiency, but that's really not what should happen across countries and over the long run. So looking specifically at the improvements and the leverage we have on that fulfillment cost per order, we have a lot of work that has been ongoing over the past two quarters already. So on fulfillment staff cost, which is about one third of the cost here, we have a big push for higher productivity and more automation. We're rolling out at the moment, for example, new tools at the warehouse to increase productivity and tracking of the workforce. So we believe we have some potential to improve there. And on the transport side, which is around two-thirds of the fulfillment staff cost, about 60%. So on transport, which is basically all the money we're paying to our local logistics partners, we have recently implemented a renegotiation of all the fees, I mean a reduction of all the fees. Some of that will be partly offset by the fuel price increases, which will lead to surcharges in some countries. But over the long run, as prices will normalize, we expect the surcharges to go away. And we are working to improve also the efficiency of our local partners for logistics so we can renegotiate their fees. So we're working on new tools to make middle-mile trucking more efficient for our partners, so we're able to split the savings with them, and this will be operational later this year. So we still have a lot to do, and we still have a lot of efficiencies to capture there. It's a lot of hard work, right? We're using more and more AI to make it more efficient in the supply chain as well. Part of it depends on tech progress which we're seeing on the ground, and scale should be a tailwind in this in this regard yeah I hope that answers the question yeah that's very

helpful lastly more like housekeeping um can you provide some color on the FX

latest FX trend for your key countries yes Antoine you want to take FX yes

so you can see that we've had a disconnect between the progress we made on the adjusted bda basis and the net allows before tax and this was driven by forex exchange which was non-cash if you compare to q125 last year we had a net fx gain of 2.1 million uaz and this year we have recorded the loss of 3.5 again that that swing is not cash cash base there is no cash impact and this reflects the impact of effect swing or on intercompany balances that we have between them between the the top holding and the operations we are working actively on this one to reduce the impact of the forex by accelerating repatriating cash and other restructuring restructuring operations this was from the finance and accounting parts on on the on the business side before francis comments if you want we see some impact but what is important for us is that the movement the movement are not too violent so that our vendors do not hesitate to um to to import in the countries which has been the case this year so so far we are able to to handle properly the ethics swing that we are seeing yeah i'll just add briefly on that we've

seen huge swings in ethics over the past four years across all key countries like nigeria and egypt there's no such thing happening right now local currencies have been behaving much more strongly over the even over the best few months and as antoine mentioned the most important part here is that it's not impacting suppliers confidence it's not impacting customers purchasing power and in any significant ways and we're not seeing any disruption in the business because of this I'm still thank you both we have reached

the end of the question and answer session and conference call you may disconnect your phone lines at this time thank you for your participation