Bubs Australia (BUB) H2 2026 earnings summary

Executive summary

• Revenue grew 9.2% year-over-year to just under AUD 112 million ($111.9m), driven by 24% growth in the U.S. market, now representing 59% of total revenue, while Australia and ROW were weaker.

• Underlying EBITDA rose to AUD 5.3 million ($5.3m), up 338% from the prior year, reflecting operational leverage despite one-off costs; reported EBITDA was a loss of AUD 1.8 million ($1.8m).

• Inventory was strategically restocked to AUD 36.3 million ($36.3m) to support future growth and supply continuity, normalizing working capital metrics.

• The business navigated significant regulatory resets globally, incurring one-off costs, and invested heavily in inventory and marketing to support growth.

• The company is in the final stages of obtaining permanent FDA approval in the U.S., supporting further growth.

Financial highlights

• Revenue up 9.2% year-over-year to AUD 112 million ($111.9m); U.S. sales up 24%.

• Gross profit down 9.4% to AUD 44.5 million ($44.5m) due to higher air freight, tariffs, and regulatory costs; gross margin at 39.8%, down from 47.8%.

• Operating expenses rose 5% to AUD 48.8 million ($48.8m), mainly from increased marketing spend.

• Net loss after tax of AUD 4.6 million ($4.6m) compared to a profit in the prior year.

• Operating cash outflow of AUD 15.1 million ($15.1m), driven by inventory investment.

Outlook and guidance

• Confident in continued growth, especially in the U.S. and China, with expanded store presence and marketing; positive revenue growth expected in H1 FY27.

• Gross margin expected to improve and normalize as one-off costs and regulatory/tariff environments stabilize.

• Continued investment in brand and marketing, targeting mid-teens percentage of net revenue.

• FDA approval in the U.S. expected soon, supporting further growth.

• Focus remains on finalizing FDA approval to support US expansion.