Experience Co Lifts Revenue as Adventure Experiences Offset Skydiving Weakness

Revenue edged up, but profits fell sharply as costs outpaced modest growth.

Risk flags

• ●Profitability is deteriorating despite modest revenue growth, with underlying EBITDA down 31% for the quarter and 8% for the year; this signals that cost pressures are outpacing top-line gains and may persist if inflation and fuel costs remain elevated.
• ●The announcement lacks audited results, net profit, EPS, and cash flow disclosures, making it impossible to assess true financial health, liquidity, or sustainability; this opacity increases the risk of negative surprises when audited figures are released.
• ●The divestment of the skydive and aviation business is only at a non-binding term sheet stage, so there is no guarantee of completion, timing, or terms; any anticipated benefits are speculative until a binding agreement is reached.
• ●Forward-looking benefits from Reef Magic IV are long-term, with the vessel not expected to enter service until December 2027; project execution, cost overruns, or delays could materially affect the timeline and financial outcome.

Bottom line

Experience Co's latest update shows that while revenue is inching higher, profitability is falling as cost inflation—especially fuel and wages—erodes margins. The company is attempting to reposition through promotions and cost-out programs, but without audited numbers or cash flow data, the true financial position is unclear. The planned divestment of the skydive and aviation business is not yet binding, so any upside is speculative. The Reef Magic IV project is fully funded but will not deliver benefits until at least late 2027, leaving a multi-year execution gap. For investors, the key takeaway is that near-term earnings are under pressure, and the company's ability to restore profitability or deliver on long-term projects remains unproven without more transparent financial disclosure. The next material change would require audited results or a binding transaction announcement.

Announcement summary

(ASX: EXP) Experience Co increased its fourth-quarter sales revenue by 1% to $29.4 million, with growth across Adventure Experiences offsetting softer trading at Skydive Australia. Unaudited underlying EBITDA for the quarter fell 31% to $2.0m, impacted by weather disruption, higher fuel costs, wage inflation, and additional promotional activity. For FY26, continuing operations generated $129.6m in revenue, up 2%, while underlying EBITDA declined 8% to $17.6m. Adventure Experiences revenue rose 5% during the quarter and 6% across FY26, while Skydiving segment revenue declined 4% for the quarter and 2% for FY26. Skydive New Zealand delivered 17% revenue growth and a 25% volume increase, while Skydive Australia recorded quarterly revenue and volume declines of 15% and 12%. Experience Co agreed a non-binding term sheet with Inflite Group to divest its Australian and New Zealand skydive and aviation business and retain a minority interest. The company projects that Reef Magic IV, funded by a $4m Queensland Government Tourism Icons Investment Fund grant, is expected to enter service in December 2027.

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