Exponent Reports Third Quarter 2026 Financial Results

Cash and cash equivalents fell to $114.7 million as year-to-date share repurchases totaled $146.1 million.

Rhea-AI Summary

Exponent (Nasdaq: EXPO) reported third-quarter revenue of $173.7 million, with earnings rising from the same period a year earlier. Revenue increased 18%, while revenue before reimbursements rose 12% to $153.1 million. Net income reached $30.9 million, or $0.64 per diluted share, versus $28.0 million, or $0.55. EBITDA, a non-GAAP earnings measure excluding taxes, interest income, depreciation and amortization, increased to $45.0 million; its margin on revenue before reimbursements rose to 29.4% from 28.3%.

Through the first three quarters, revenue rose 18% to $511.6 million and diluted earnings reached $1.83 versus $1.58. Exponent raised its full-year revenue and margin guidance: it expects revenue before reimbursements to grow 10%–11% and an EBITDA margin of 28.0%–28.3%. Fourth-quarter expectations are 8%–10% growth and a 26.3%–26.8% margin, respectively.

16 points · 1 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year guidance raised: Exponent expects revenue before reimbursements growth of 10%–11% and EBITDA margin of 28.0%–28.3%.
• Moderate pointThird-quarter total revenue increased 18% to $173.7 million from $147.1 million a year earlier.
• Moderate pointThird-quarter revenue before reimbursements increased 12% to $153.1 million from $137.1 million.
• Moderate pointThird-quarter net income rose to $30.9 million from $28.0 million; diluted EPS increased to $0.64 from $0.55.
• Moderate pointThird-quarter operating income increased to $41.877 million from $29.038 million a year earlier.
• Moderate pointThird-quarter EBITDA rose to $45.0 million; margin on revenue before reimbursements expanded to 29.4% from 28.3%.
• Moderate pointYear-to-date common-stock repurchases returned $146.1 million to shareholders. 4% of market cap

9 minor points

• Minor pointYear-to-date total revenue increased 18% to $511.6 million from $434.6 million a year earlier.
• Minor pointYear-to-date revenue before reimbursements increased 11% to $453.7 million from $407.4 million.
• Minor pointYear-to-date net income reached $89.9 million versus $81.2 million; diluted EPS rose to $1.83 from $1.58.
• Minor pointYear-to-date operating income increased to $111.278 million from $90.647 million a year earlier.
• Minor pointYear-to-date EBITDA rose to $130.8 million; margin on revenue before reimbursements expanded to 28.8% from 27.8%.
• Minor pointEngineering and other scientific revenue before reimbursements grew 13% in both the quarter and year to date.
• Minor pointEnvironmental and health revenue before reimbursements grew 3% quarterly and 4% year to date versus prior-year periods.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter outlook calls for revenue before reimbursements growth of 8%–10% and EBITDA margin of 26.3%–26.8%.
• Minor pointThird-quarter general and administrative expenses fell to $7.334 million from $7.654 million a year earlier.

Negative

• Moderate pointCash and cash equivalents declined to $114.689 million on October 2 from $221.930 million on January 2, 2026.
• Minor pointThird-quarter net interest income fell to $0.668 million from $2.312 million; year-to-date fell to $3.102 million from $7.370 million.
• Minor pointThird-quarter net miscellaneous income fell to $0.448 million from $7.267 million; year-to-date fell to $11.718 million from $15.175 million.
• Minor pointThird-quarter compensation and related expenses rose to $90.038 million from $87.726 million a year earlier.
• Minor pointYear-to-date compensation and related expenses rose to $282.018 million from $261.103 million a year earlier.

5 minor points

• Minor pointThird-quarter other operating expenses rose to $13.814 million from $12.655 million a year earlier.
• Minor pointYear-to-date other operating expenses rose to $39.504 million from $36.822 million a year earlier.
• Minor pointYear-to-date general and administrative expenses increased to $20.940 million from $18.806 million a year earlier.
• Minor pointThird-quarter consolidated tax rate increased to 28.0% from 27.4%; year-to-date increased to 28.7% from 28.2%.
• Minor pointYear-to-date negative tax impact from share-based awards increased to $0.8 million from $0.4 million.

News Explained

Through the first three quarters of 2026, Exponent paid $46.1 million in dividends and repurchased $146.1 million of common stock; at October 2, 2026, it held $114.7 million in cash, and separately declared a $0.31 quarterly dividend payable December 18, 2026.

Key Figures

Revenues before reimbursements: $153.1 million; +12% Net income: $30.9 million Diluted EPS: $0.64 +5 more

Revenues before reimbursements

$153.1 million; +12%

Q3 FY2026, compared with $137.1 million in Q3 FY2025

Net income

$30.9 million

Q3 FY2026, compared with $28.0 million in Q3 FY2025

Diluted EPS

$0.64

Q3 FY2026, compared with $0.55 in Q3 FY2025

EBITDA margin

29.4%

Q3 FY2026, compared with 28.3% of revenues before reimbursements in Q3 FY2025

Q4 revenue growth outlook

8% to 10%

Q4 FY2026 versus the same period one year prior

Q4 EBITDA margin outlook

26.3% to 26.8%

Q4 FY2026 as a percentage of revenues before reimbursements

Full-year revenue growth outlook

10% to 11%

FY2026 versus FY2025

Full-year EBITDA margin outlook

28.0% to 28.3%

FY2026 as a percentage of revenues before reimbursements

Previous Earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Q2 earnings

   24h Move

   +3.5%

   Raised FY2026 revenue growth outlook to 9%–10% and EBITDA margin to 27.8%–28.1%.

2. Apr 30

   Q1 earnings

   24h Move

   -2.4%

   Revenue and diluted EPS increased year over year; FY2026 guidance was maintained.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, ebitdas, non-gaap financial measure, gaap

4 terms

ebitda financial

"EBITDA increased to $45.0 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

ebitdas financial

"EBITDAS is a non-GAAP financial measure"

EBITDAs are measures of a company’s operating profit calculated before subtracting interest, taxes, depreciation and amortization. Think of it as the cash-like earnings from running the business—revenue minus routine operating costs—before loan payments and accounting adjustments; investors use it to compare underlying performance across companies and industries. It matters because it highlights core cash-generating ability, but it does not replace full profit or cash-flow analysis.

non-gaap financial measure financial

"EBITDA is a non-GAAP financial measure defined by the Company"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

gaap financial

"prepared in accordance with GAAP"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MENLO PARK, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the third quarter of fiscal year 2026 ended October 2, 2026.

“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings, reflecting continued demand for our specialized, integrated engineering and scientific expertise,” stated Dr. Catherine Corrigan, Chief Executive Officer. “User research studies continued to be a strong contributor to our growth, as clients move quickly to understand how people interact with technology across a widening range of devices and applications. Reactive work also grew, on top of a strong prior-year quarter, with increased dispute-related and failure analysis demand in the chemical, consumer products and transportation industries.

“These results reflect the durable, long-term trends shaping our business, including rapid technological innovation, increasing complexity, investment in critical infrastructure, and rising societal expectations for safety and reliability. As artificial intelligence and other digital technologies become increasingly embedded into physical systems, the digital and physical worlds are converging. Exponent is differentiated at that convergence, where data and computation meet real-world evidence, and where technology must ultimately work for the user. Our multidisciplinary scientists and engineers bring together deep domain expertise, scientific rigor, and an understanding of complex physical systems to help clients innovate with confidence, solve their most challenging problems, and manage high-consequence risk,” Dr. Corrigan continued.

Third Quarter Financial Results

Total revenues and revenues before reimbursements for the third quarter of 2026 increased 18% to $173.7 million and 12% to $153.1 million, respectively, as compared to $147.1 million and $137.1 million in the third quarter of 2025.

Net income increased to $30.9 million, or $0.64 per diluted share, in the third quarter of 2026, as compared to $28.0 million, or $0.55 per diluted share, in the same period of 2025. The tax benefit associated with share-based awards was immaterial in both the third quarter of 2026 and 2025. Inclusive of the tax benefit, Exponent’s consolidated tax rate was 28.0% in the third quarter of 2026, as compared to 27.4% for the same period in 2025.

EBITDA¹ increased to $45.0 million, or 29.4% of revenues before reimbursements, in the third quarter of 2026, as compared to $38.8 million, or 28.3% of revenues before reimbursements in the third quarter of 2025.

Year to Date Financial Results

Total revenues and revenues before reimbursements for the first three quarters of 2026 increased 18% to $511.6 million and 11% to $453.7 million, respectively, as compared to $434.6 million and $407.4 million in the same period of 2025.

Net income increased to $89.9 million, or $1.83 per diluted share, through the first three quarters of 2026, as compared to $81.2 million, or $1.58 per diluted share, in the same period of 2025. During the first three quarters of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million, as compared to $0.4 million during the same period one year ago. Inclusive of the tax impact associated with share-based awards, Exponent’s consolidated tax rate was 28.7% through the first three quarters of 2026, as compared to 28.2% for the same period last year.

EBITDA¹ increased to $130.8 million, or 28.8% of revenues before reimbursements, through the first three quarters of 2026, as compared to $113.4 million, or 27.8% of revenues before reimbursements, in the same period of 2025.

Through the first three quarters of 2026, Exponent paid $46.1 million in dividends, repurchased $146.1 million of common stock, and closed the period with $114.7 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 December 18, 2026, and reiterated its intent to continue to pay quarterly dividends.

Business Overview

Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 13% in the third quarter and through the first three quarters of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity spanning a broad set of challenges, including health applications, dynamic and unstructured real-world environments, and sensory perception. Dispute-related services involving chemical facilities, consumer products and advanced transportation technologies also drove growth in the quarter, as clients rely on Exponent in critical, high-stakes situations.

Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the third quarter and through the first three quarters of 2026. Revenues before reimbursements in this segment increased 3% in the third quarter and 4% through the first three quarters of 2026, as compared to the prior year period. Growth in this segment was driven by increased projects assessing the effects of chemicals on human health and the environment.

Business Outlook

“Our ability to scale our operating model in response to market demand resulted in 77% utilization and expanded profitability during the third quarter of 2026. We are encouraged by the market opportunities across the industries we serve and continue to strategically build upon our diversified portfolio of talent and capabilities,” commented Eric Anderson, Chief Financial Officer. “As we close out 2026, we are raising our full-year revenue and margin guidance, reflecting the strength of our year-to-date performance and our outlook for the remainder of the year. Looking ahead, we remain confident in Exponent’s long-term growth trajectory and our ability to capitalize on the strong demand for our differentiated expertise.”

For the fourth 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 26.3% to 26.8% of revenues before reimbursements.
  
  

For the full fiscal year 2026 as compared to fiscal year 2025, Exponent anticipates:

• Revenues before reimbursements to grow 10% to 11%; and,
• EBITDA¹ to be 28.0% to 28.3% of revenues before reimbursements.
  
  

“Rapid innovation continues to reshape industries as companies race to make physical products more intelligent, while expectations for safety, reliability, and performance continue to rise. Exponent is built for this moment. We help clients navigate these increasingly complex challenges, whether validating AI-enabled systems, strengthening critical infrastructure, or understanding how people interact with the technologies around them. Across these areas, our integrated platform brings the scientific and engineering expertise needed to deliver explainability, clarity, and trust. This distinctive ecosystem, together with strong long-term growth drivers, positions Exponent to deliver sustainable value for our clients and shareholders,” concluded Dr. Corrigan.

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Thursday, October 29, 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 5957331#.

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 October 2, 2026 and October 3, 2025
(unaudited)
(in thousands, except per share data)
							Quarter Ended						Nine Months Ended
							October 2,			October 3,			October 2,			October 3,
							2026			2025			2026			2025
Revenues
	Revenues before reimbursements						$	153,063		$	137,073		$	453,740		$	407,378
	Reimbursements							20,670			10,047			57,908			27,211
		Revenues						173,733			147,120			511,648			434,589
Operating expenses
	Compensation and related expenses							90,038			87,726			282,018			261,103
	Other operating expenses							13,814			12,655			39,504			36,822
	Reimbursable expenses							20,670			10,047			57,908			27,211
	General and administrative expenses							7,334			7,654			20,940			18,806
								131,856			118,082			400,370			343,942
		Operating income						41,877			29,038			111,278			90,647
Other income (expense), net
	Interest income, net							668			2,312			3,102			7,370
	Miscellaneous income (expense), net							448			7,267			11,718			15,175
								1,116			9,579			14,820			22,545
		Income before income taxes						42,993			38,617			126,098			113,192
Income taxes								12,050			10,573			36,191			31,945
		Net income					$	30,943		$	28,044		$	89,907		$	81,247
Net income per share:
	Basic						$	0.64		$	0.55		$	1.84		$	1.59
	Diluted						$	0.64		$	0.55		$	1.83		$	1.58
Shares used in per share computations:
	Basic							48,131			50,872			48,891			51,113
	Diluted							48,422			51,179			49,195			51,454

EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
October 2, 2026 and January 2, 2026
(unaudited)
(in thousands)
							October 2,				January 2,
								2026				2026
			Assets
Current assets:
	Cash and cash equivalents						$	114,689			$	221,930
	Accounts receivable, net							209,604				181,507
	Prepaid expenses and other assets							28,976				24,143
		Total current assets						353,269				427,580
Property, equipment and leasehold improvements, net								69,900				71,981
Operating lease right-of-use asset								68,208				73,376
Goodwill								8,607				8,607
Other assets								193,092				195,975
							$	693,076			$	777,519
			Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities						$	34,733			$	30,942
	Accrued payroll and employee benefits							121,993				121,302
	Deferred revenues							18,503				18,868
	Operating lease liability							6,533				6,890
		Total current liabilities						181,762				178,002
Other liabilities								128,822				133,232
Operating lease liability								74,606				75,944
		Total liabilities						385,190				387,178
Stockholders' equity:
	Common stock							66				66
	Additional paid-in capital							392,784				369,747
	Accumulated other comprehensive loss							(2,496	)			(2,290	)
	Retained earnings							712,318				668,423
	Treasury stock, at cost							(794,786	)			(645,605	)
			Total stockholders' equity					307,886				390,341
							$	693,076			$	777,519

EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended October 2, 2026 and October 3, 2025
(unaudited)
(in thousands)
							Quarter Ended								Nine Months Ended
							October 2,				October 3,				October 2,				October 3,
								2026				2025				2026				2025
Net Income							$	30,943			$	28,044			$	89,907			$	81,247
Add back (subtract):
	Income taxes							12,050				10,573				36,191				31,945
	Interest income, net							(668	)			(2,312	)			(3,102	)			(7,370	)
	Depreciation and amortization							2,651				2,532				7,844				7,544
		EBITDA (1)						44,976				38,837				130,840				113,366
	Stock-based compensation							6,694				5,341				22,432				18,767
		EBITDAS (1)					$	51,670			$	44,178			$	153,272			$	132,133
(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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Exponent's third-quarter 2026 earnings and revenue?

Exponent reported $173.7 million in revenue and $0.64 in diluted earnings per share for the quarter ended October 2, 2026. Revenue increased 18% from $147.1 million a year earlier. Net income rose to $30.9 million from $28.0 million, while prior-year diluted earnings were $0.55 per share.

What is Exponent's full-year 2026 financial guidance?

Exponent expects full-year 2026 revenue before reimbursements to grow 10% to 11% compared with fiscal 2025, with EBITDA equal to 28.0% to 28.3% of revenue before reimbursements. The company raised both its revenue and margin guidance.

What drove Exponent's segment growth in the third quarter of 2026?

Exponent identified user research and dispute-related services as growth drivers in engineering and other scientific services, while environmental and health growth reflected increased chemical-assessment projects. Engineering and other scientific services accounted for 85% of quarterly revenue before reimbursements; environmental and health accounted for 15%.

What quarterly dividend did Exponent announce alongside its 2026 third-quarter results?

Exponent announced a quarterly cash dividend of $0.31 per share, payable on December 18, 2026. Through the first three quarters of 2026, it paid $46.1 million in dividends. The company reiterated its intent to continue quarterly dividends.