Bubs Australia (ASX:BUB) disclosed its performance for the first half of 2026, characterised by a surge in earnings and an upgraded full-year outlook.
The company reported a group revenue of $55.5 million, marking a 14% increase over the previous corresponding period.
The growth was primarily propelled by an exceptional 48% revenue jump in the United States market, which now contributes $34.2 million to the total.
The company’s profitability saw a substantial boost, with underlying EBITDA climbing to $4.4 million, up from just $0.5 million in H1 FY25.
The improvement is attributed to higher-margin US sales and a 3% reduction in operating expenses following the completion of the FDA growth study.
While the gross margin dipped slightly to 48%, total infant milk formula sales grew by 16%, reaching $48.6 million.
CEO Joe Coote noted that the US remains the company’s "main growth engine" as major retailers expand store counts.
He also highlighted stabilising markets in Australia and the Rest of World, alongside building momentum in China.
Bubs maintains a solid liquidity position with $9.9 million in cash and $20 million in undrawn debt facilities.
Confident in its current trajectory, Bubs has upgraded its FY26 guidance.
The company now forecasts full-year group revenue between $120 million and $125 million, with EBITDA expected to land between $4 million and $6 million.