Experience Co (ASX:EXP) is Australia’s largest commercial skydiving operator and a growing adventure-tourism group, running tandem skydives, reef and rainforest tours and other experiences aimed largely at domestic and international leisure travellers. As a pure-play on discretionary adventure spending, its fortunes rise and fall with the travel cycle, the weather and consumer confidence — and its FY26 result showed a Business still working to translate a tourism recovery into stronger earnings.

A mixed FY26

For the year to June 2026, reported on 27 August 2026, Experience Co lifted Revenue from continuing operations about 2% to AUD 129.6 million, but underlying EBITDA fell 8% to AUD 17.6 million and underlying net profit dropped 30% to AUD 2.0 million. The company posted a small statutory loss after tax of AUD 0.3 million. In short, revenue grew while cost pressures ate into profitability.

The two divisions moved in different directions. Skydiving revenue slipped 2% to AUD 63.8 million, with tandem passenger numbers easing to about 117,000 from 119,000, as softer inbound Demand and weather disruption weighed. Adventure Experiences — the reef, rainforest and touring businesses — lifted revenue 6% to AUD 65.8 million and now accounts for the large majority of group EBITDA, underlining its growing importance to the overall mix.

Balance sheet and outlook

Experience Co finished the year with net Debt of about AUD 10.7 million, or roughly 0.76 times trailing EBITDA, with cash of AUD 5.4 million and an undrawn Facility of AUD 15.8 million, leaving it modestly geared. Management struck a cautious tone, noting the Earnings recovery of the group is likely to take longer than previously anticipated, citing ongoing cost pressures and operational challenges.

That candour matters: it signals that the post-pandemic rebound in adventure tourism has not been a straight line, and that Margin recovery, not just revenue growth, is the real task ahead. Wage and insurance costs, aircraft and equipment maintenance, and the Fixed Cost of running drop zones and tour operations all bear on a business where revenue can be highly seasonal and weather-dependent, so even a solid Top Line does not automatically translate into rising profit.

Why it matters to investors

Experience Co gives investors direct exposure to Australia’s inbound and domestic leisure-travel cycle. If international visitor numbers to key destinations such as Cairns and the reef continue to recover, both divisions stand to benefit, and the Adventure Experiences segment provides some Diversification away from weather-sensitive skydiving. A relatively modest debt load gives the company room to invest or absorb shocks.

Catalysts to watch include trends in inbound tourist arrivals, tandem skydiving volumes, cost control and margin recovery, and any portfolio moves such as acquisitions or divestments as the group refines its mix toward higher-return experiences.

Risks to weigh

The risks are clear from FY26. Earnings are highly sensitive to discretionary spending, international travel patterns and weather, all of which are outside the company’s control. Cost Inflation compressed margins even as revenue rose, and management has flagged a longer recovery timeline. Skydiving is a weather- and safety-dependent operation, and any disruption can hit volumes quickly.

For investors, the question posed by the headline is really about the cycle: Experience Co has the Assets and market position to benefit from a sustained travel upswing, but FY26 is a reminder that cost discipline and steadier conditions are needed before revenue growth converts into a genuine new growth chapter.