Exponent Reports Fourth Quarter and Fiscal Year 2025 Financial Results
Rhea-AI Summary
Exponent (Nasdaq: EXPO) reported Q4 and fiscal 2025 results: Q4 revenue $147.4M (+7.8% vs. prior-year quarter) and FY revenue $582.0M (+4.2% vs. prior year). Q4 net income was $24.8M ($0.49 diluted EPS); FY net income was $106.0M ($2.07 diluted EPS). EBITDA for FY 2025 was $148.1M (27.6% of revenues before reimbursements). The board raised the quarterly cash dividend to $0.31 payable March 20, 2026, and the company repurchased $97.8M of common stock during the year.
Management expects high-single-digit revenue growth for Q1 and full-year 2026 and FY EBITDA margin around 27.6%–28.1% of revenues before reimbursements.
Positive
- Revenue +7.8% in Q4 to $147.4M
- Dividend increased to $0.31 per share, payable March 20, 2026
- Share repurchases of $97.8M during fiscal 2025
- Guidance: high-single-digit revenue growth forecast for FY 2026
Negative
- Fiscal 2025 net income declined to $106.0M from $109.0M
- Consolidated tax rate rose to 28.0% in fiscal 2025 from 26.0%
Key Figures
Market Reality Check
Peers on Argus
EXPO was modestly higher pre-release (+0.24%), while key construction/engineering peers TPC, AGX, ECG, and MYRG showed declines between about 4% and 8%, indicating a stock-specific setup rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Positive | +2.2% | Q3 revenue and margin growth with dividend and buyback increase. |
| Jul 31 | Q2 2025 earnings | Negative | -0.9% | Soft revenue growth with lower net income and margin compression. |
| May 01 | Q1 2025 earnings | Negative | -1.3% | Flat revenues, declining net income and EBITDA, guidance maintained. |
| Feb 06 | Q4/FY 2024 earnings | Positive | +1.2% | Strong Q4 and FY revenue growth and higher EBITDA margins. |
| Oct 24 | Q3 2024 earnings | Positive | -8.9% | Margin expansion and EPS growth but market reacted negatively. |
Earnings releases have usually produced modest, sentiment-consistent moves, with one notable negative divergence in Q3 2024 despite positive metrics.
Over the last several earnings cycles, Exponent has delivered steady revenue growth with mixed profit trends. Q4 and FY 2024 results were strong, with rising revenues and higher EBITDA margins. Through 2025, quarterly updates often showed flat-to-low revenue growth and some EPS pressure, but margins remained in the high-20% range and capital returns via dividends and buybacks continued. This announcement extends that pattern with mid-single-digit revenue growth, stable EBITDA margins, and another dividend increase.
Historical Comparison
In the past five earnings releases, EXPO’s average move was -1.55%, with mostly modest, sentiment-consistent reactions and one sharp selloff despite strong Q3 2024 results.
Recent earnings show Exponent sustaining high-20% EBITDA margins while transitioning from stronger FY 2024 growth to more muted 2025 trends, alongside consistent dividends and buybacks.
Market Pulse Summary
This announcement reports mid-single-digit revenue growth for Q4 and FY 2025, stable high-20% EBITDA margins, and a dividend increase to $0.31 per share alongside continued buybacks. Historically, Exponent’s earnings have produced modest moves around an average of -1.55%. Investors may watch how FY 2026 high-single-digit growth and EBITDA margin guidance compare with these results and how the stock behaves while trading below its 200-day moving average.
Key Terms
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AI-generated analysis. Not financial advice.
MENLO PARK, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the fourth quarter and fiscal year 2025 ended January 2, 2026.
“We delivered a strong finish to 2025 reflecting the strength, diversification, and resilience of our portfolio,” stated Dr. Catherine Corrigan, President and Chief Executive Officer. “Growth in proactive engagements during the fourth quarter was driven by increased demand for user research services in the consumer electronics sector and expanded risk management work within utilities. Growth in reactive engagements was led by failure analysis and dispute-related activities across a broad range of sectors, including energy, construction, transportation, and life sciences.”
“Our market drivers are stronger than ever, supported by the durable and diversified platform Exponent has built over decades across industries, scientific disciplines, and client engagements,” Dr. Corrigan continued. “As artificial intelligence and other advanced technologies become increasingly embedded in complex and performance-critical systems, rising societal expectations for safety and reliability continue to drive demand for our specialized expertise. Exponent is uniquely positioned to support clients with rigorous and independent insights across the full product lifecycle.”
Fourth Quarter Financial Results
Total revenues increased
Net income increased to
EBITDA1 increased to
Fiscal Year 2025 Financial Results
Total revenues increased
Net income was
EBITDA1 increased to
In a separate press release today, Exponent announced an increase in its quarterly cash dividend from
During fiscal year 2025, Exponent paid
Business Overview
Exponent’s engineering and other scientific segment represented
Exponent’s environmental and health segment represented
Business Outlook
“We ended 2025 with strong third and fourth quarters and executed on our plan to grow headcount, which increased sequentially and was up approximately
For the first quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:
- Revenues before reimbursements to grow in the high-single digits; and,
- EBITDA1 to be
27.5% to28.5% of revenues before reimbursements.
For the full fiscal year 2026 as compared to fiscal year 2025, Exponent anticipates:
- Revenues before reimbursements to grow in the high-single digits; and,
- EBITDA1 to be
27.6% to28.1% of revenues before reimbursements.
“Looking ahead, we remain confident in Exponent’s ability to deliver profitable growth as the pace of innovation accelerates and systems become more complex. While advanced analytics and artificial intelligence continue to enhance decision-making, the most critical and high-stakes situations—where systems fail, interact in unexpected ways, or operate at the edge of design limits—require independent scientific judgment and deep multidisciplinary expertise. Exponent’s team combines rigorous, data-driven analysis with decades of scientific and engineering experience to help clients strengthen the reliability of critical systems and deliver trusted insight when performance falls short. Supported by strong market drivers, a proven operating model, and a long track record of execution, Exponent is well positioned to create long-term value for our shareholders,” concluded Dr. Corrigan.
Today's Conference Call Information
Exponent will discuss its financial results in more detail on a conference call today, Thursday, February 5, 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 (844) 481-2781 or (412) 317-0672. 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 (855) 669-9658 or (412) 317-0088 and entering passcode 4311570.
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, databases, and computing resources 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.
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.
| EXPONENT, INC. | ||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
| For the Quarters Ended January 2, 2026 and January 3, 2025 | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| Quarters Ended | Years Ended | |||||||||||||||||
| January 2, | January 3, | January 2, | January 3, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| (13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | |||||||||||||||
| Revenues | ||||||||||||||||||
| Revenues before reimbursements | $ | 129,382 | $ | 123,764 | $ | 536,760 | $ | 518,490 | ||||||||||
| Reimbursements | 18,043 | 13,002 | 45,254 | 40,024 | ||||||||||||||
| Revenues | 147,425 | 136,766 | 582,014 | 558,514 | ||||||||||||||
| Operating expenses | ||||||||||||||||||
| Compensation and related expenses | 80,891 | 78,264 | 341,994 | 330,011 | ||||||||||||||
| Other operating expenses | 12,636 | 12,505 | 49,458 | 46,196 | ||||||||||||||
| Reimbursable expenses | 18,043 | 13,002 | 45,254 | 40,024 | ||||||||||||||
| General and administrative expenses | 6,715 | 5,742 | 25,521 | 22,726 | ||||||||||||||
| Total operating expenses | 118,285 | 109,513 | 462,227 | 438,957 | ||||||||||||||
| Operating income | 29,140 | 27,253 | 119,787 | 119,557 | ||||||||||||||
| Other income (expense), net | ||||||||||||||||||
| Interest income, net | 1,937 | 2,585 | 9,307 | 10,001 | ||||||||||||||
| Miscellaneous income, net | 3,028 | 1,490 | 18,203 | 17,812 | ||||||||||||||
| Total other income (expense), net | 4,965 | 4,075 | 27,510 | 27,813 | ||||||||||||||
| Income before income taxes | 34,105 | 31,328 | 147,297 | 147,370 | ||||||||||||||
| Income taxes | 9,343 | 7,739 | 41,288 | 38,368 | ||||||||||||||
| Net income | $ | 24,762 | $ | 23,589 | $ | 106,009 | $ | 109,002 | ||||||||||
| Net income per share: | ||||||||||||||||||
| Basic | $ | 0.49 | $ | 0.46 | $ | 2.08 | $ | 2.13 | ||||||||||
| Diluted | $ | 0.49 | $ | 0.46 | $ | 2.07 | $ | 2.11 | ||||||||||
| Shares used in per share computations: | ||||||||||||||||||
| Basic | 50,277 | 51,215 | 50,904 | 51,129 | ||||||||||||||
| Diluted | 50,602 | 51,649 | 51,244 | 51,569 | ||||||||||||||
| EXPONENT, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| January 2, 2026 and January 3, 2025 | |||||||||||||||
| (unaudited) | |||||||||||||||
| (in thousands) | |||||||||||||||
| January 2, | January 3, | ||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 221,930 | $ | 258,901 | |||||||||||
| Accounts receivable, net | 181,507 | 161,407 | |||||||||||||
| Prepaid expenses and other assets | 24,143 | 26,573 | |||||||||||||
| Total current assets | 427,580 | 446,881 | |||||||||||||
| Property, equipment and leasehold improvements, net | 71,981 | 73,007 | |||||||||||||
| Operating lease right-of-use asset | 73,376 | 75,248 | |||||||||||||
| Goodwill | 8,607 | 8,607 | |||||||||||||
| Other assets | 195,975 | 173,527 | |||||||||||||
| Total Assets | $ | 777,519 | $ | 777,270 | |||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable and accrued liabilities | $ | 30,942 | $ | 22,136 | |||||||||||
| Accrued payroll and employee benefits | 121,302 | 119,285 | |||||||||||||
| Deferred revenues | 18,868 | 16,369 | |||||||||||||
| Operating lease liability | 6,890 | 5,393 | |||||||||||||
| Total current liabilities | 178,002 | 163,183 | |||||||||||||
| Other liabilities | 133,232 | 116,935 | |||||||||||||
| Operating lease liability | 75,944 | 76,084 | |||||||||||||
| Total liabilities | 387,178 | 356,202 | |||||||||||||
| Stockholders' equity: | |||||||||||||||
| Common stock | 66 | 66 | |||||||||||||
| Additional paid-in capital | 369,747 | 345,689 | |||||||||||||
| Accumulated other comprehensive loss | (2,290 | ) | (3,791 | ) | |||||||||||
| Retained earnings | 668,423 | 624,151 | |||||||||||||
| Treasury stock, at cost | (645,605 | ) | (545,047 | ) | |||||||||||
| Total stockholders' equity | 390,341 | 421,068 | |||||||||||||
| $ | 777,519 | $ | 777,270 | ||||||||||||
| EXPONENT, INC. | |||||||||||||||||||||
| EBITDA and EBITDAS (1) | |||||||||||||||||||||
| For the Quarters Ended January 2, 2026 and January 3, 2025 | |||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Quarter Ended | Years Ended | ||||||||||||||||||||
| January 2, | January 3, | January 2, | January 3, | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||
| (13 weeks) | (14 weeks) | (52 weeks) | (53 weeks) | ||||||||||||||||||
| Net Income | $ | 24,762 | $ | 23,589 | $ | 106,009 | $ | 109,002 | |||||||||||||
| Add back (subtract): | |||||||||||||||||||||
| Income taxes | 9,343 | 7,739 | 41,288 | 38,368 | |||||||||||||||||
| Interest income, net | (1,937 | ) | (2,585 | ) | (9,307 | ) | (10,001 | ) | |||||||||||||
| Depreciation and amortization | 2,539 | 2,490 | 10,083 | 9,689 | |||||||||||||||||
| EBITDA (1) | 34,707 | 31,233 | 148,073 | 147,058 | |||||||||||||||||
| Stock-based compensation | 5,028 | 4,857 | 23,795 | 23,239 | |||||||||||||||||
| EBITDAS (1) | $ | 39,735 | $ | 36,090 | $ | 171,868 | $ | 170,297 | |||||||||||||
| (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. | |||||||||||||||||||||
FAQ
What were Exponent's (EXPO) Q4 2025 revenue and EPS results?
How much did Exponent (EXPO) repurchase in fiscal 2025 and why does it matter?
What dividend change did Exponent (EXPO) announce and when is it payable?
What guidance did Exponent (EXPO) give for revenue and EBITDA in 2026?
How did Exponent's (EXPO) fiscal 2025 EBITDA and margins compare to fiscal 2024?
Which Exponent (EXPO) business segments drove growth in Q4 2025?
