Exponent Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Exponent (Nasdaq: EXPO) reported second quarter 2026 revenues of $171.6 million, up 21% year over year, with revenues before reimbursements rising 12% to $148.9 million. Net income was $29.4 million, or $0.60 per diluted share, versus $26.6 million and $0.52 a year earlier. EBITDA increased to $42.7 million, representing a margin of 28.7% of revenues before reimbursements.
For the first half of 2026, revenues before reimbursements grew 11% to $300.7 million and net income reached $59.0 million ($1.19 diluted EPS). According to Exponent, it paid $31.3 million in dividends, repurchased $146.1 million of stock, declared a $0.31 quarterly dividend, and added $50 million to its repurchase authorization. The company raised 2026 guidance, now expecting revenues before reimbursements to grow 9%–10% and EBITDA margins of 27.8%–28.1%.
Positive
- Q2 2026 revenues up 21% to $171.6 million
- Revenues before reimbursements Q2 growth 12% to $148.9 million
- Diluted EPS Q2 2026 increased to $0.60 from $0.52
- EBITDA margin improved to 28.7% from 27.8% in Q2
- Capital returns $272 million to shareholders over last 12 months
- Raised 2026 guidance revenue growth 9%–10%, EBITDA margin 27.8%–28.1%
Negative
- Cash and cash equivalents declined to $66.6 million from $221.9 million since January 2, 2026
- Total stockholders’ equity decreased to $288.6 million from $390.3 million year-to-date
News Explained
The new liquidity disclosure is July 3 cash of $66.6 million, versus $221,930 at January 2 after shareholder returns.
Exponent's July 30 release reports its second-quarter results for the period ended
Cash and cash equivalents were
The release defines EBITDA as net income before income taxes, interest income, depreciation and amortization. It presents EBITDA as a non-GAAP measure to supplement, not replace, GAAP operating income, cash flow and other financial measures.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Positive | -2.4% | Revenue and earnings increased while full-year guidance was maintained. |
| Feb 05 | Q4 earnings report | Positive | +12.7% | Quarterly and annual revenue increased alongside higher earnings and shareholder returns. |
| Oct 30 | Q3 earnings report | Positive | +6.0% | Quarterly revenue increased and the board expanded the buyback authorization. |
| Jul 31 | Q2 earnings report | Negative | -0.9% | Net income declined and full-year guidance remained at modest growth. |
| May 01 | Q1 earnings report | Negative | -1.3% | Revenue and earnings were flat or lower while management cited Q2 headwinds. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Among five earnings-tagged events, four reactions aligned with the event tone and one diverged; the tagged average move was 2.79%.
Key Terms
ebitda financial
ebitdas financial
non-gaap financial measure financial
revenues before reimbursements financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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
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
Exponent’s environmental and health segment represented
Business Outlook
“Our second quarter results demonstrate continued disciplined execution across the business, with strong utilization of
For the third quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:
- Revenues before reimbursements to grow
8% to10% ; and, - EBITDA1 to be
28.0% to28.5% 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% to10% ; and, - EBITDA1 to be
27.8% to28.1% 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 (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 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, 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 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. | |||||||||||||||||
