How Did Reef Unlimited Propel Experience Co’s 17% EBITDA Surge in Q1 FY26?
Experience Co Limited reported an 8% revenue increase and 17% underlying EBITDA growth in Q1 FY26, driven by strong demand in its Adventure Experiences segment, especially Reef Unlimited, despite weather challenges affecting Skydiving operations.
- Q1 FY26 revenue up 8%, underlying EBITDA up 17% vs prior year
- Adventure Experiences, led by Reef Unlimited, drive growth
- Skydiving segment stable amid seasonal and weather impacts
- Cost-out program targeting over $2 million annual savings underway
- Fully franked dividend of 0.25 cents per share paid in September
Strong Start to FY26 Backed by Adventure Experiences
Experience Co Limited has kicked off its 2026 financial year with encouraging growth, reporting an 8% increase in revenue and a 17% rise in underlying EBITDA for the first quarter ended September 30, 2025. This performance reflects a rebound in consumer demand, particularly within its Adventure Experiences portfolio, which includes Reef Unlimited and Treetops Adventure.
The Adventure Experiences segment was the standout contributor, with Reef Unlimited posting a robust 16% revenue increase driven by higher visitor numbers, favourable weather, and product enhancements. Treetops Adventure also grew revenue by 5%, supported by new offerings such as a zipline experience in Canberra and steady demand across its sites.
Skydiving Segment Navigates Seasonal and Weather Challenges
While Adventure Experiences surged, the Skydiving segment experienced a more mixed quarter. Revenue grew modestly by 4%, with New Zealand operations showing stronger volume and revenue gains compared to Australia. However, weather disruptions, especially in August and September, tempered overall performance. The company noted that Skydiving volumes aligned with typical seasonal patterns, with July trading stronger but offset by weather-impacted months.
Notably, the NZONE/Queenstown drop zone was recognised as the top-selling experience on China’s C-Trip platform during the second quarter of calendar 2025, highlighting the segment’s appeal to international tourists as inbound travel recovers.
Strategic Initiatives and Dividend Payout
Experience Co is actively managing costs with a program targeting more than $2 million in annualised savings, aiming for progressive earnings benefits over the next year. This cost discipline complements the company’s growth trajectory and supports shareholder returns, evidenced by the payment of a fully franked dividend of 0.25 cents per share in late September.
Booking trends remain positive, bolstered by improving domestic consumer sentiment and inbound tourism, although weather remains a variable factor. The company also launched new experiences, such as the Maria Island Walk’s summer season, which began with bookings ahead of the prior year.
Outlook and Market Positioning
Experience Co’s Q1 results underscore its resilience and adaptability in a competitive leisure and tourism market. The combination of product innovation, geographic diversity, and operational efficiency positions the company well to capitalise on the ongoing recovery in travel and consumer spending. However, weather-related disruptions and the inherent uncertainties of forward-looking statements suggest cautious optimism as the year progresses.
Bottom Line?
Experience Co’s early FY26 momentum sets a promising stage, but weather and cost management will be key to sustaining growth.
Questions in the middle?
- How will weather variability continue to impact Skydiving operations in coming quarters?
- What progress will the cost-out program make toward delivering targeted savings?
- Can inbound tourism recovery sustain or accelerate revenue growth across segments?
