Bubs Revenue Falls 9.8% as FDA Clears Formula
Retailers and suppliers of US infant formula should note the regulatory clearance alongside a sharp quarterly revenue decline.
Updated on Nov. 3, 2026 in Retail
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Bubs Australia reported net revenue of $23.1 million for the quarter ended September 30, down 9.8 per cent, with US sales falling 8.9 per cent to $15.3 million. The infant formula maker also secured permanent FDA authorisation for three products in September, a development that matters for competitors and retailers carrying formula in the US market.
Why it matters
The US decline was attributed mainly to foreign currency translation, while Walmart and Target sales grew strongly and Amazon sales were lower. Australian revenue slid on cost-of-living pressures and softer trading conditions, and rest-of-world revenue fell 36 per cent amid disrupted trading in key markets.
Bubs products are available in more than 12,000 stores across all 50 US states, and US net revenue was $15.3 million for the quarter ended September 30. Company figures show the decline was led by currency translation in the US and softer trading in Australia and key overseas markets.
The players
Bubs Australia
An Australian infant formula and nutritional products company that sells through major US retailers and e-commerce platforms.
US Food and Drug Administration
The US federal agency that authorises and regulates infant formula sold in the United States.
Walmart
A large US mass-market retailer and one of the channels that drove growth in Bubs sales this quarter.
Target
A large US general-merchandise retailer whose sales of Bubs products grew strongly during the quarter.
Amazon
A major e-commerce platform where Bubs sales were lower during the quarter.
The details
Bubs sells through large retail and e-commerce channels including Walmart, Target and Amazon, and the quarter's results diverged across them, with Walmart and Target growing strongly while Amazon sales were lower. The company attributed the US revenue drop mainly to foreign currency translation rather than volume alone. Its September FDA authorisation for three infant formula products removes a regulatory barrier in the US, while its re-entry into Singapore and Vietnam has been delayed.
Timeline
September 2026: Bubs secured permanent FDA authorisation for three infant formula products.
Quarter ended September 30, 2026: Net revenue fell 9.8 per cent to $23.1 million.
Market Landscape
Bubs' results show a US infant formula brand relying on large mass-market and online retail channels, where performance varies sharply by retailer. The FDA authorisation places it on a regulated footing in its largest market, a step competitors in US retail formula must also clear.
Retailers carrying infant formula should review how Bubs' FDA-authorised products fit their US assortments and supplier terms. Operators should also track how currency translation and channel-level differences are affecting their own international supplier pricing.
The takeaway
The main operating signal is that regulatory clearance in the US did not offset a quarterly revenue decline, so channel mix and currency effects are driving near-term results. Businesses dealing with international infant formula suppliers should monitor quarterly channel performance, particularly across major US retailers and online platforms.
Further reading
For more on how brands like Bubs compete across shelves and online storefronts, see our Retail coverage.
Source note: This article includes information reported by Inside FMCG.
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