“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings reflecting continued demand for our specialized expertise across industries,” stated Dr.
“These results reflect the powerful long-term trends driving our business, including rapid technological innovation, increasing complexity, growing energy demand, investment in resilient power and digital infrastructure, and rising expectations for safety, reliability, and performance. As artificial intelligence becomes embedded in an expanding array of physical products and systems, organizations face increasingly daunting human factors, operational, and risk management challenges that extend well beyond software. Clients turn to Exponent when they encounter critical questions involving the interaction of technology, people, and complex real-world environments, particularly when the consequences of failure are exceptionally high. Our multidisciplinary teams provide the independent, science-based insights needed to accelerate innovation, improve decision-making, and reduce high-consequence risk in areas where few organizations possess comparable expertise,”
Second Quarter Financial Results
Total revenues and revenues before reimbursements for the second quarter of 2026 increased 21% to
Net income increased to
EBITDA1 increased to
Year-to-Date Financial Results
Total revenues and revenues before reimbursements for the first half of 2026 increased 18% to
Net income increased to
EBITDA1 increased to
For the first half of 2026, Exponent paid
In a separate press release today, Exponent announced its quarterly cash dividend of
Business Overview
Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 13% during the second quarter and 12% during the first half of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity in consumer electronics, risk management and infrastructure-related work in the utilities sector, and reactive engagements across the consumer products, chemicals, and transportation industries.
Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 9% during the second quarter and 5% during the first half of 2026, as compared to the same period in the prior year. Growth during the quarter was driven by engagements evaluating the impacts of chemicals on human health and the environment.
Business Outlook
“Our second quarter results demonstrate continued disciplined execution across the business, with strong utilization of 74% contributing to performance that exceeded our expectations,” commented
For the third quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:
- Revenues before reimbursements to grow 8% to 10%; and,
- EBITDA1 to be 28.0% to 28.5% of revenues before reimbursements.
For the full fiscal year 2026 as compared to fiscal year 2025, Exponent is raising its revenue and margin guidance, anticipating:
- Revenues before reimbursements to grow 9% to 10%; and,
- EBITDA1 to be 27.8% to 28.1% of revenues before reimbursements.
“Exponent remains well positioned to support clients as emerging technologies, critical infrastructure, and increasingly complex and interconnected systems reshape industries around the world,”
Today’s Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today,
Use of non-GAAP Financial Measures 1
EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.
Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.
About Exponent
Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.
Exponent’s consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent’s offices in North America, Asia, and Europe. Exponent’s consultants, laboratories, and integrated technical platform work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward at speed.
Exponent may be reached at (888) 656-EXPO, info@exponent.com, or www.exponent.com.
Forward Looking Statements
This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.
Source: Exponent, Inc.
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| For the Three and Six Months Ended | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenues | |||||||||||||||||
| Revenues before reimbursements | $ | 148,860 | $ | 132,868 | $ | 300,677 | $ | 270,305 | |||||||||
| Reimbursements | 22,752 | 9,094 | 37,238 | 17,164 | |||||||||||||
| Revenues | 171,612 | 141,962 | 337,915 | 287,469 | |||||||||||||
| Operating expenses | |||||||||||||||||
| Compensation and related expenses | 100,571 | 97,474 | 191,980 | 173,377 | |||||||||||||
| Other operating expenses | 12,865 | 12,072 | 25,690 | 24,167 | |||||||||||||
| Reimbursable expenses | 22,752 | 9,094 | 37,238 | 17,164 | |||||||||||||
| General and administrative expenses | 7,402 | 6,145 | 13,606 | 11,152 | |||||||||||||
| 143,590 | 124,785 | 268,514 | 225,860 | ||||||||||||||
| Operating income | 28,022 | 17,177 | 69,401 | 61,609 | |||||||||||||
| Other income | |||||||||||||||||
| Interest income, net | 716 | 2,344 | 2,434 | 5,058 | |||||||||||||
| Miscellaneous income (expense), net | 12,028 | 17,294 | 11,270 | 7,908 | |||||||||||||
| 12,744 | 19,638 | 13,704 | 12,966 | ||||||||||||||
| Income before income taxes | 40,766 | 36,815 | 83,105 | 74,575 | |||||||||||||
| Income taxes | 11,371 | 10,262 | 24,141 | 21,372 | |||||||||||||
| Net income | $ | 29,395 | $ | 26,553 | $ | 58,964 | $ | 53,203 | |||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | 0.60 | $ | 0.52 | $ | 1.20 | $ | 1.04 | |||||||||
| Diluted | $ | 0.60 | $ | 0.52 | $ | 1.19 | $ | 1.03 | |||||||||
| Shares used in per share computations: | |||||||||||||||||
| Basic | 48,753 | 51,185 | 49,271 | 51,234 | |||||||||||||
| Diluted | 48,987 | 51,502 | 49,571 | 51,587 | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (unaudited) | ||||||||||
| (in thousands) | ||||||||||
| 2026 | 2026 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 66,629 | $ | 221,930 | ||||||
| Accounts receivable, net | 218,504 | 181,507 | ||||||||
| Prepaid expenses and other assets | 26,881 | 24,143 | ||||||||
| Total current assets | 312,014 | 427,580 | ||||||||
| Property, equipment and leasehold improvements, net | 70,854 | 71,981 | ||||||||
| Operating lease right-of-use asset | 68,954 | 73,376 | ||||||||
| 8,607 | 8,607 | |||||||||
| Other assets | 192,294 | 195,975 | ||||||||
| $ | 652,723 | $ | 777,519 | |||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 26,942 | $ | 30,942 | ||||||
| Accrued payroll and employee benefits | 102,186 | 121,302 | ||||||||
| Deferred revenues | 21,953 | 18,868 | ||||||||
| Operating lease liability | 6,757 | 6,890 | ||||||||
| Total current liabilities | 157,838 | 178,002 | ||||||||
| Other liabilities | 132,305 | 133,232 | ||||||||
| Operating lease liability | 73,964 | 75,944 | ||||||||
| Total liabilities | 364,107 | 387,178 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 66 | 66 | ||||||||
| Additional paid-in capital | 389,568 | 369,747 | ||||||||
| Accumulated other comprehensive loss | (2,378 | ) | (2,290 | ) | ||||||
| Retained earnings | 696,405 | 668,423 | ||||||||
| (795,045 | ) | (645,605 | ) | |||||||
| Total stockholders' equity | 288,616 | 390,341 | ||||||||
| $ | 652,723 | $ | 777,519 | |||||||
| EBITDA and EBITDAS (1) | |||||||||||||||||
| For the Three and Six Months Ended | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Net Income | $ | 29,395 | $ | 26,553 | $ | 58,964 | $ | 53,203 | |||||||||
| Add back (subtract): | |||||||||||||||||
| Income taxes | 11,371 | 10,262 | 24,141 | 21,372 | |||||||||||||
| Interest income, net | (716 | ) | (2,344 | ) | (2,434 | ) | (5,058 | ) | |||||||||
| Depreciation and amortization | 2,678 | 2,520 | 5,193 | 5,012 | |||||||||||||
| EBITDA (1) | 42,728 | 36,991 | 85,864 | 74,529 | |||||||||||||
| Stock-based compensation | 6,680 | 5,246 | 15,738 | 13,426 | |||||||||||||
| EBITDAS (1) | $ | 49,408 | $ | 42,237 | $ | 101,602 | $ | 87,955 | |||||||||
| (1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. | |||||||||||||||||
