Experience Co (ASX:EXP) is an adventure-tourism operator whose activities span skydiving and a portfolio of adventure and reef experiences across Australia and New Zealand. Its Earnings are closely tied to leisure-travel demand, tourist numbers and the weather, making it a direct play on consumers’ appetite for experiences.

A FY26 result in which adventure and reef tours offset softer skydiving has framed the question of whether consumer Demand can drive the next leg higher.

Latest Development

For FY26, Experience Co reported Revenue up 2% to A$129.6 million, but underlying EBITDA down 8% to A$17.6 million as costs weighed on earnings. Skydiving revenue eased to A$63.8 million on around 117,000 tandem passengers, while the Adventure Experiences division grew 6% to A$65.8 million, offsetting the skydiving softness.

What Could Drive the Shares Next?

Catalysts include a recovery in leisure-travel and tourist demand, continued growth in adventure and reef experiences, completion of the portfolio reshaping including any skydiving divestment, and relief on fuel and cost pressures. A stronger tourism season would lift volumes.

Evidence that the reshaped portfolio can grow earnings alongside revenue would be the clearest positive signal.

Risks Investors Should Watch

Experience Co is highly exposed to discretionary leisure spending, tourist numbers, weather and fuel costs, all of which can move earnings quickly. The divestment of skydiving is subject to completion, and portfolio reshaping carries execution risk.

Cost Inflation and the cyclicality of tourism are ongoing considerations.

Investor Takeaway

Experience Co grew FY26 revenue 2% to A$129.6 million but saw underlying EBITDA fall 8% on cost pressures, with adventure experiences offsetting softer skydiving. Whether consumer demand drives the next leg higher depends on a tourism recovery and the portfolio reshaping delivering. Visitor volumes, costs and the skydiving divestment are the things to watch.