Exponent, Inc.: Exponent Reports Second Quarter 2026 Financial Results

MENLO PARK, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter of fiscal year 2026 ended July 3, 2026.

"Exponent delivered another strong quarter, with double-digit growth in revenues and earnings reflecting continued demand for our specialized expertise across industries," stated Dr. Catherine Corrigan, Chief Executive Officer. "Our proactive work experienced strong growth in the quarter, led by demand for user research studies as clients accelerate the development of AI-enabled products across an increasingly diverse range of hardware form factors and applications, with engagements continuing to expand in scope, scale and complexity. Proactive activity was also supported by increased risk management and infrastructure-related engagements in the utility sector. Reactive work grew, with strong demand for our dispute-related expertise from the consumer products, chemicals, and transportation industries.

"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," Dr. Corrigan continued.

Second Quarter Financial Results

Total revenues and revenues before reimbursements for the second quarter of 2026 increased 21% to $171.6 million and 12% to $148.9 million, respectively, as compared to $142.0 million and $132.9 million in the second quarter of 2025.

Net income increased to $29.4 million, or $0.60 per diluted share, in the second quarter of 2026, as compared to $26.6 million, or $0.52 per diluted share, in the same period of 2025. The tax impact associated with share-based awards was immaterial in both the second quarter of 2026 and 2025. Exponent's consolidated tax rate was 27.9% in the second quarter of 2026, unchanged from the same period in 2025.

EBITDA¹ increased to $42.7 million, or 28.7% of revenues before reimbursements, in the second quarter of 2026, as compared to $37.0 million, or 27.8% of revenues before reimbursements in the second quarter of 2025.

Year-to-Date Financial Results

Total revenues and revenues before reimbursements for the first half of 2026 increased 18% to $337.9 million and 11% to $300.7 million, respectively, as compared to $287.5 million and $270.3 million in the same period of 2025.

Net income increased to $59.0 million, or $1.19 per diluted share, in the first half of 2026, as compared to $53.2 million, or $1.03 per diluted share, in the same period of 2025. During the first half of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million as compared to $0.5 million in the first half of 2025. Inclusive of the tax impact associated with share-based awards, Exponent's consolidated tax rate was 29.0% in the first half of 2026, as compared to 28.7% for the same period last year.

EBITDA¹ increased to $85.9 million, or 28.6% of revenues before reimbursements, in the first half of 2026, as compared to $74.5 million, or 27.6% of revenues before reimbursements, in the first half of 2025.

For the first half of 2026, Exponent paid $31.3 million in dividends, repurchased $146.1 million of common stock, and closed the period with $66.6 million in cash and cash equivalents.

In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on September 18, 2026, and reiterated its intent to continue to pay quarterly dividends. Additionally, Exponent's Board of Directors approved an increase in the current stock repurchase program of $50 million.

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 Eric Anderson, Chief Financial Officer. "We continued to invest in our talent and capabilities while maintaining a disciplined capital allocation strategy, returning a combined $272 million to shareholders over the last twelve months through share repurchases and our ongoing dividend program."

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," Dr. Corrigan said. "Whether helping clients evaluate AI-enabled products, enhancing the resilience and performance of infrastructure, or navigating complex technical and regulatory challenges, our expert ecosystem provides the rigorous, independent insights needed when the stakes are high. We remain confident in our ability to expand our impact across industries and deliver long-term value for our shareholders."

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Thursday, July 30, 2026, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing [phone] or [phone]. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing [phone] or [phone] and entering passcode 7563057#.

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, [e-mail], 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.

EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Six Months Ended July 3, 2026 and July 4, 2025
(unaudited)
(in thousands, except per share data)
			Quarter Ended								Six Months Ended
			July 3,				July 4,				July 3,				July 4,
			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

EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
July 3, 2026 and January 2, 2026
(unaudited)
(in thousands)
				July 3,				January 2,
				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
Goodwill					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
	Treasury stock, at cost				(795,045	-			(645,605	-
			Total stockholders' equity		288,616				390,341
				-	652,723			-	777,519

EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Three and Six Months Ended July 3, 2026 and July 4, 2025
(unaudited)
(in thousands)
			Quarter Ended								Six Months Ended
			July 3,				July 4,				July 3,				July 4,
			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.