Highlights

  • Experience Co (ASX:EXP) reported FY26 continuing Revenue of A$129.6 million, with Earnings affected by seasonal and external operating conditions.
  • A proposed combination of its skydiving and aviation Assets with Inflite could significantly reshape the business.
  • Cost management initiatives removed approximately A$2.0 million in annualised costs during FY26.
  • International tourism recovery, peak-season trading and the Inflite transaction remain key areas to monitor.

Experience Co (ASX:EXP) operates in the adventure tourism sector, where performance is influenced by factors including weather, travel Demand and seasonal visitor patterns.

During FY26, the company focused on improving operational efficiency, reducing costs and reshaping its portfolio while awaiting a broader recovery in international tourism.

The next stage of the Investment story is less about short-term seasonal movements and more about whether these structural changes can create a simpler and more sustainable business.

Latest Development

In its FY26 results released in late August 2026, Experience Co (ASX:EXP) reported continuing revenue of A$129.6 million, up from A$127.3 million in FY25.

Underlying EBITDA declined to A$17.6 million from A$19.0 million, while net profit before Goodwill and Impairment decreased to A$2.0 million from A$2.9 million.

Management highlighted that the Business faced significant external challenges during FY26, with modest revenue growth supported by cost management initiatives.

The company removed approximately A$2.0 million of annualised costs during the year.

Trading momentum showed some improvement at the beginning of FY27, with July underlying EBITDA reaching A$2.3 million compared with A$2.1 million in the prior corresponding period.

Company Overview

Experience Co (ASX:EXP) operates across two main segments: Adventure Experiences and Skydiving.

The Adventure Experiences division generated FY26 revenue of A$65.8 million, up 6%, with underlying EBITDA of A$15.4 million.

The segment includes Reef Unlimited operations in Cairns and Port Douglas, as well as the Treetops Adventure network.

Reef operations recorded approximately 261,000 passengers, while Treetops Adventure attracted around 396,000 visitors.

The Skydiving segment, covering Australia and New Zealand operations, generated revenue of A$63.8 million, down 2%, with underlying EBITDA of A$9.7 million.

The division includes locations such as Byron Bay, the Great Ocean Road, Queenstown and Wanaka.

Recent Developments

In July 2026, Experience Co (ASX:EXP) announced a non-binding term sheet to combine its skydiving and aviation assets with Inflite.

Under the proposed transaction, the combined entity was valued at approximately A$110 million on a cash-free, debt-free basis.

Experience Co's proposed consideration included approximately A$41 million in cash, a A$5 million vendor note and a 32.5% stake in the combined business valued at approximately A$19 million.

The transaction remains subject to Due Diligence and further approvals.

Elsewhere, Experience Co completed the sale of Wild Bush Luxury to Intrepid Travel for A$5.1 million in May 2026, acquired West Beach Adventure in late June 2026 and placed Melbourne skydiving operations into care and maintenance.

The company is also progressing Reef Magic IV, supported by a A$4.0 million Queensland Government grant.

Financial and Operational Position

Experience Co (ASX:EXP) reported cash of A$5.4 million at 30 June 2026, compared with A$11.1 million a year earlier.

Gross Debt reduced to A$16.2 million from A$22.0 million, while net debt remained broadly stable at A$10.7 million.

Undrawn facilities totalled A$15.8 million, and net tangible assets were reported at 10.0 cents per share.

Capital expenditure during FY26 included A$7.7 million of maintenance and fleet investment and A$2.5 million of growth capital.

The business remains highly seasonal, with approximately 80% of group EBITDA generated across July, December, January and April.

What Investors May Watch Next

Completion of due diligence for the Inflite transaction remains the most important strategic milestone, as a binding agreement and Shareholder approval would significantly alter Experience Co's business structure.

Investors may also monitor trading performance through the key December and January tourism period, progress on Reef Magic IV and broader international visitor recovery trends.

The ability to convert cost reductions into stronger profitability will also be an important measure of progress.

Risks

The Inflite transaction remains non-binding and may not proceed on the proposed terms.

Experience Co (ASX:EXP) remains exposed to weather conditions, aviation safety requirements, industrial action, seasonal demand patterns and fluctuations in international tourism.

Management has indicated that earnings recovery has taken longer than previously expected.

Cash reduced during FY26 and debt remains a consideration relative to the company's earnings base, making operational improvement and capital discipline important factors.

Conclusion

Experience Co (ASX:EXP) enters FY27 after a period of cost reduction, portfolio adjustments and strategic repositioning.

The FY26 result showed a business that remained stable but continued to face external pressures, while the proposed Inflite combination represents a potential turning point for the group's structure.

The next phase will depend on whether the company can complete the transaction, maintain stronger seasonal trading and convert its operational changes into improved financial performance.