Experience Co Ltd (ASX: EXP) reported a 2% rise in revenue to $129.6 million for the fiscal year ended June 30, 2026, driven by growth in adventure experiences, though underlying earnings before interest, taxes, depreciation and amortization declined 8% to $17.6 million.
Underlying net profit after tax fell 30% year-over-year to $2.0 million, while statutory loss after tax narrowed to $0.3 million from a $1.0 million loss in FY25. The company attributed the earnings decline to higher operating costs, with underlying EBITDA margins compressing despite revenue growth.
Net debt remained broadly stable at $10.7 million, with gross borrowings decreasing by $5.8 million to $16.2 million. Cash and cash equivalents declined to $5.4 million from $11.1 million, while free cash flow dropped 69% to $2.3 million. Operating cash flow fell 32% to $11.9 million, with a cash conversion rate of 84%, down from 108% in FY25.
Revenue growth was led by the Adventure Experiences division, which increased 6% to $65.8 million, contributing 87% of total underlying EBITDA. The Skydiving division reported a 2% revenue decline to $63.8 million, with New Zealand operations growing 7% in local currency but Australia’s segment contracting due to operational closures. Total tandem passenger volumes across Australia and New Zealand reached 117,000 in FY26, down from 119,000 in FY25.
Management noted a "challenging operating environment" in the second half of FY26 and indicated that an earnings recovery would take longer than previously anticipated. The company’s share price fell 2.17% to $0.09 following the results announcement.
Experience Co also provided an early FY27 trading update, with unaudited revenue from continuing operations rising to $11.7 million in July 2026, compared with $11.4 million in the prior-year period, while underlying EBITDA increased to $2.3 million from $2.1 million.
Separately, the company confirmed plans to merge its Skydive and Aviation business unit with Inflite Aviation, with an estimated enterprise value of $110 million for the combined entity. Experience Co would receive approximately $65 million in consideration, including $41 million in upfront cash, a $5 million vendor note, and a 32.5% equity stake valued at $19 million.
