- Bubs Australia reported H1 FY26 Revenue of $55.5 million, up 14% YoY.
- The company achieved maiden positive underlying EBITDA of $4.4 million.
- US sales increased 48% to $34.2 million during H1 FY26.
- Bubs upgraded FY26 revenue guidance to $120 million to $125 million.
Bubs Australia (ASX:BUB) is an infant nutrition company focused on infant formula, toddler nutrition and goat-milk-based products. The company has been expanding its presence in the United States while working to improve profitability and reduce reliance on historical Demand patterns in other markets
At the time of writing on 14 August 2026, Bubs Australia (ASX:BUB) was trading at AUD 0.09, up 1.12% on the day
The company’s latest results highlighted increasing US contribution, improved Earnings performance and continued focus on scaling its infant nutrition portfolio
What Just Happened?
In its H1 FY26 results, Bubs Australia reported revenue of $55.5 million, representing growth of 14% YoY. The company achieved its first positive underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) result of $4.4 million, compared with a loss of approximately $0.7 million in the prior corresponding period
Gross Margin was reported at 48%, remaining within the company’s expectations
The United States was the main growth contributor, with sales increasing 48% to $34.2 million and representing approximately 62% of group revenue. Infant formula sales increased 16% to $48.6 million
Other markets recorded mixed performance, with China sales declining 27% to $7.5 million and Australian sales decreasing 9% to $9.5 million
Following the US growth performance, management upgraded FY26 revenue guidance to a range of $120 million to $125 million
Why It Matters
The achievement of positive underlying EBITDA represents a key milestone as Bubs transitions from a growth-focused Business toward improving profitability
The geographic mix of revenue has also changed, with the United States becoming the company’s largest market contributor. This reduces reliance on China, which previously represented a more significant
The US growth reflects increasing distribution and retail presence for Bubs products, particularly within the premium natural infant formula category
However, maintaining profitability while managing inventory levels, Supply requirements and competitive pressures will remain important as the company continues expanding
The Bigger Picture
Bubs Australia develops infant formula, toddler nutrition and adult goat-milk products, with goat-milk formula forming part of its product differentiation strategy
The company’s products are manufactured through Australian supply channels and distributed across international markets, including the United States, China and other regions
Bubs has expanded its US presence through retail distribution and benefited from increased Brand exposure following its involvement in supplying infant formula during the 2022 US infant formula shortage
The company ended H1 FY26 with approximately $9.9 million in cash and around $20 million in undrawn facilities. Inventory increased to approximately $28.5 million as the company built stock to support US expansion
The Working CapitalInvestment supports growth plans but remains an important area to monitor as inventory converts into sales
What Could Drive the Shares Next?
The FY26 full-year results will be the next key milestone for Bubs, with investors focused on whether the company achieved its upgraded revenue guidance of $120 million to $125 million and maintained improved profitability
Further growth in US retail distribution and premium natural formula sales will remain important drivers
Investors will also monitor inventory management, gross margin performance and supply availability as the company scales operations
A stabilisation of China sales could provide additional support, while continued execution in the United States will remain central to the company’s growth strategy
Risks Investors Should Watch
Bubs faces risks related to market concentration, supply chain management, regulation and competition. The company’s increasing reliance on the United States creates exposure to changes in retail demand, regulatory conditions and competitive pressures. Inventory levels and working capital requirements may affect cash resources as expansion continues. Infant nutrition is a highly regulated and competitive category where maintaining retail presence and consumer trust is important. Additional risks include currency movements, freight costs, supply constraints and share price Volatility associated with smaller ASX-listed companies.
Bottom Line
Bubs Australia (ASX:BUB) has reported a significant shift in its operating performance, with H1 FY26 revenue growth, maiden positive underlying EBITDA and increased contribution from its United States business
The company is progressing a strategy focused on US expansion, premium infant nutrition products and improved profitability. The next challenge will be maintaining growth while managing inventory, supply requirements and market competition
The FY26 full-year results will provide further insight into whether the improved earnings profile can be sustained
