It has been an unusual end to the week for Bubs Australia Ltd (ASX: BUB) shareholders.
The infant formula stock was up 7.53% to 10 cents on Friday when trading was paused shortly before 1pm.
Not long after, Bubs requested a trading halt while it prepares an announcement relating to an update from the US Food and Drug Administration (FDA).
The move caps off a strong few days for the shares, which have climbed around 16% over the past week. However, they remain down roughly 27% since the start of 2026.
So, what are investors waiting to hear?
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Why are Bubs shares halted?
According to the release, Bubs requested an immediate trading halt pending an announcement relating to an update from the FDA.
Trading will remain suspended until the announcement is released or the market opens on Tuesday, 8 September, whichever comes first.
The FDA decision is a big one for Bubs because the United States has become its largest market.
The company first expanded into the country during the 2022 infant formula shortage, when overseas suppliers were brought in to help ease supply shortages.
At last week's FY26 result, management said its FDA approval pathway remained on track and that it was confident of achieving authorisation.
In the meantime, Bubs products have continued to be imported, sold and distributed in the US while the FDA completes its review.
Investors will now have to wait for the next announcement to find out exactly what has changed.
Directors have been buying
The halt also comes after a run of director buying over the past few days.
The Australian reported that Bubs chair Paul Jensen and directors Pascal De Petrini and Lori Tauber Marcus have bought around 2.4 million shares on market since 31 August.
Jensen bought 1.5 million shares for about $130,500, while De Petrini picked up 800,000 shares for around $69,600.
On Thursday, US-based director and former PepsiCo executive Lori Tauber Marcus bought her first 100,000 shares at 9.5 cents each.
The US has become a key market
A lot of Bubs' recent growth has come from the US.
Group revenue rose 9.2% to $111.9 million in FY26, while US revenue increased 24% to $65.8 million as the company expanded into more than 10,000 stores.
Profitability also improved, with underlying EBITDA rising to $5.3 million from $1.2 million a year earlier.
Reported EBITDA was less impressive, coming in at a $1.8 million loss after higher airfreight, regulatory and tariff costs.
Brokers remain fairly positive on the stock as well. TipRanks has three buy ratings, with an average 12-month price target of 13 cents.
That's about 30% above the halted price of 10 cents.
