Exponent (NASDAQ: EXPO) Q2 revenue hits $171.6M as AI-driven projects expand

Rhea-AI Filing Summary

Exponent, Inc. delivered strong Q2 2026 results, with total revenues rising to $171.6 million from $141.9 million and revenues before reimbursements increasing to $148.9 million. Growth was driven mainly by the Engineering and Other Scientific segment and AI-related user research studies, including one large study equal to about 4% of net revenues. Net income grew to $29.4 million, diluted EPS to $0.60 from $0.52, and EBITDA to $42.7 million, or 28.7% of revenues before reimbursements.

For the first half of 2026, revenues reached $337.9 million and net income $59.0 million, with diluted EPS of $1.19. Operating cash flow was $29.9 million, while cash and equivalents fell to $66.6 million from $221.9 million, primarily due to increased share repurchases. The company spent $146.1 million buying back stock in six months, including 1.125 million shares in Q2 at an average $59.88, and declared cash dividends of $0.62 per share year to date. After quarter-end, the board approved another $0.31 dividend and authorized an additional $50 million share repurchase program.

Filing Explained

Repurchase authorization capacity is distinct from completed purchases, while lease liabilities remain disclosed.

Form 10-Q is an unaudited quarterly report; this filing covers the quarter ended July 3, 2026. During the quarter, Exponent repurchased stock; the board later added $50 million on July 30.

The authorization is capacity rather than a reported commitment to buy that amount: the filing separately reports completed repurchases and says the authorization has no expiration date. The completed purchases used company cash and increased treasury shares during the period.

The filing also records an operating-lease liability and scheduled lease payments, including amounts listed as payable after 2030. These are disclosed contractual obligations, not current-period cash payments in full.

Exponent's deferred-compensation plans had vested liabilities and invested assets at July 3, 2026; the filing says those assets are held in a rabbi trust and remain subject to creditors' claims.

The open item is the July 30 repurchase authorization: the filing establishes its amount and lack of expiration, but does not report purchases under that later authorization.

Key Figures

Q2 2026 total revenues: $171,612,000 Q2 2026 net income: $29,395,000 Q2 2026 diluted EPS: $0.60 +4 more

7 metrics

Q2 2026 total revenues $171,612,000 Three months ended July 3, 2026; up from $141,962,000 a year earlier.

Q2 2026 net income $29,395,000 Net income for the three months ended July 3, 2026 versus $26,553,000 in Q2 2025.

Q2 2026 diluted EPS $0.60 Diluted earnings per share for the quarter, compared with $0.52 in Q2 2025.

Cash and cash equivalents $66,629,000 Balance as of July 3, 2026, down from $221,930,000 at January 2, 2026.

Net cash from operating activities $29,914,000 Net cash provided by operating activities for the six months ended July 3, 2026.

Share repurchases H1 2026 $146,138,000 Cash used to repurchase common stock in the six months ended July 3, 2026.

EBITDA Q2 2026 $42,728,000 EBITDA for the three months ended July 3, 2026; 28.7% of revenues before reimbursements.

Key Terms

deferred compensation plan, nonqualified deferred compensation plans, rabbi trust, reimbursable expenses, +2 more

6 terms

deferred compensation plan financial

"including money market securities, trading fixed income and equity securities held in its deferred compensation plan"

A deferred compensation plan is an arrangement where an employer agrees to pay part of an employee’s pay or bonus at a later date instead of immediately, often to reduce current tax bills or to tie rewards to long-term performance. For investors it matters because these promises create future cash obligations and influence executive incentives and retention; they can affect a company’s reported liabilities, cash flow planning and the risk profile if the business faces financial trouble.

nonqualified deferred compensation plans financial

"The Company maintains nonqualified deferred compensation plans for the benefit of a select group"

rabbi trust financial

"Company assets that are earmarked to pay benefits under the plans are held in a rabbi trust"

A rabbi trust is a special account a company sets up to hold promised future pay for executives, like bonus or retirement money, so those employees can see there are funds earmarked for them. It matters to investors because it signals the company’s commitment to keep key people, but the money is still part of the company’s assets and can be claimed by creditors if the company goes bankrupt—think of it as a labeled jar that isn’t completely off-limits.

reimbursable expenses financial

"reimbursable expenses are included in operating expenses"

utilization financial

"Our utilization increased to 74% during the second quarter of 2026"

Utilization measures how much a resource, service or capacity is actually used compared with how much is available, like tracking how often a car in a fleet is on the road versus sitting idle. For investors it signals demand, efficiency and future revenue potential—high utilization can mean strong sales and better returns but also risk of capacity strain or higher costs, while low utilization can indicate weak demand or excess capacity.

EBITDAS financial

"We define EBITDAS as EBITDA before stock-based compensation"

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.

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

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Available on EDGAR 08/07/2026 - 04:03 PM Accepted by SEC EDGAR 08/07/2026 - 04:02 PM Learn about SEC filing dates

FAQ

How did Exponent (EXPO) perform financially in Q2 2026?

Exponent reported Q2 2026 revenues of $171.6 million, up from $141.9 million a year earlier, and net income of $29.4 million. Diluted EPS increased to $0.60 from $0.52, while EBITDA reached $42.7 million, reflecting solid growth and profitability.

What drove revenue growth for Exponent (EXPO) in Q2 2026?

Revenue growth was led by the Engineering and Other Scientific segment, where revenues reached $148.8 million. The company highlighted strong demand for AI-related user research studies and risk management work in utilities, plus reactive engagements in consumer products, chemicals, and transportation, including one large study worth about 4% of net revenues.

What were Exponent (EXPO)’s key profitability metrics in the first half of 2026?

For the first six months of 2026, Exponent generated net income of $59.0 million on revenues of $337.9 million. Diluted EPS was $1.19. EBITDA totaled $85.9 million, and EBITDA was 28.6% of revenues before reimbursements, slightly higher than the prior-year period.

What was Exponent (EXPO)’s cash position and operating cash flow in H1 2026?

As of July 3, 2026, cash and cash equivalents were $66.6 million, down from $221.9 million at year-end. Net cash provided by operating activities in the first half of 2026 was $29.9 million, reflecting profitable operations but higher working-capital needs, particularly accounts receivable and payroll-related changes.

How much stock did Exponent (EXPO) repurchase and what dividends were paid?

In the first six months of 2026, Exponent repurchased $146.1 million of common stock, including 1.125 million shares in Q2 at an average $59.88 per share. Cash dividends declared were $0.62 per share year to date, and a further $0.31 dividend was approved after quarter-end.

How did Exponent (EXPO)’s business segments perform in Q2 2026?

In Q2 2026, the Engineering and Other Scientific segment generated revenues of $148.8 million, up 23.0%. The Environmental and Health segment produced $22.8 million, up 8.6%. Overall billable hours rose 9% to 390,000 and utilization improved to 74%, supporting higher operating income.

Did Exponent (EXPO) report any major customer or legal issues in Q2 2026?

One client represented about 11% of revenues in Q2 2026, but no single client exceeded 10% for the six-month period. The company stated it is not engaged in any material legal proceedings and reported no material changes to previously disclosed risk factors.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 3, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to___________

Commission File Number 0-18655

EXPONENT, INC.

(Exact name of registrant as specified in its charter)

delaware		77-0218904
(State or other jurisdiction of		(I.R.S. Employer Identification No.)
incorporation or organization)
149 COMMONWEALTH DRIVE, MENLO PARK, California		94025
(Address of principal executive office)		(Zip Code)

(650) 326-9400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.001 per share		EXPO		Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐		Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of July 31, 2026, the latest practicable date, the registrant had 47,546,084 shares of common stock outstanding.

EXPONENT, INC.

FORM 10-Q

TABLE OF CONTENTS

				Page
PART I – FINANCIAL INFORMATION				3
Item 1.		Financial Statements (unaudited):		3
		Condensed Consolidated Balance Sheets as of July 3, 2026 and January 2, 2026		3
		Condensed Consolidated Statements of Income For the Three and Six Months Ended July 3, 2026 and July 4, 2025		4
		Condensed Consolidated Statements of Comprehensive Income For the Three and Six Months Ended July 3, 2026 and July 4, 2025		5
		Condensed Consolidated Statements of Stockholders’ Equity For the Three and Six Months Ended July 3, 2026 and July 4, 2025		6
		Condensed Consolidated Statements of Cash Flows For the Six Months Ended July 3, 2026 and July 4, 2025		8
		Notes to Unaudited Condensed Consolidated Financial Statements		9
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		29
Item 4.		Controls and Procedures		29
PART II – OTHER INFORMATION				30
Item 1.		Legal Proceedings		30
Item 1A.		Risk Factors		30
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		30
Item 3.		Defaults Upon Senior Securities		30
Item 4.		Mine Safety Disclosures		30
Item 5.		Other Information		30
Item 6.		Exhibits		31
		Signatures		32

- 2 -

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

EXPONENT, INC.

Condensed Consolidated Balance Sheets

July 3, 2026 and January 2, 2026

(unaudited)

(In thousands, except par value)		July 3, 2026				January 2, 2026
Assets
Current assets:
Cash and cash equivalents		$	66,629			$	221,930
Accounts receivable, net of allowance for contract losses and doubtful accounts    of $7,486 and $7,478 at July 3, 2026 and January 2, 2026, respectively			218,504				181,507
Prepaid expenses and other current assets			26,881				24,143
Total current assets			312,014				427,580
Property, equipment and leasehold improvements, net of accumulated depreciation and    amortization of $127,108 and $122,072 at July 3, 2026 and January 2, 2026,    respectively			70,854				71,981
Operating lease right-of-use assets			68,954				73,376
Goodwill			8,607				8,607
Deferred income taxes			64,850				67,075
Deferred compensation plan assets			122,823				123,454
Other assets			4,621				5,446
Total assets		$	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 liabilities			6,757				6,890
Total current liabilities			157,838				178,002
Other liabilities			4,466				4,587
Deferred compensation plan liabilities			127,839				128,645
Operating lease liabilities			73,964				75,944
Total liabilities			364,107				387,178
Stockholders’ equity:
Common stock, $0.001 par value; 120,000 shares authorized; 65,707 shares issued    at July 3, 2026 and January 2, 2026			66				66
Additional paid-in capital			389,568				369,747
Accumulated other comprehensive loss
Foreign currency translation adjustments			(2,378	)			(2,290	)
Retained earnings			696,405				668,423
Treasury stock, at cost; 18,176 and 16,087 shares held at July 3, 2026    and January 2, 2026, respectively			(795,045	)			(645,605	)
Total stockholders’ equity			288,616				390,341
Total liabilities and stockholders’ equity		$	652,723			$	777,519

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

- 3 -

EXPONENT, INC.

Condensed Consolidated Statements of Income

For the Three and Six Months Ended July 3, 2026 and July 4, 2025

(unaudited)

		Three Months Ended								Six Months Ended
(In thousands, except per share data)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 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
Total operating expenses			143,590				124,785				268,514				225,860
Operating income			28,022				17,177				69,401				61,609
Other income, net:
Interest income, net			716				2,344				2,434				5,058
Miscellaneous income, net			12,028				17,294				11,270				7,908
Total other income, net			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
Cash dividends declared per common share		$	0.31			$	0.30			$	0.62			$	0.60

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

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EXPONENT, INC.

Condensed Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended July 3, 2026 and July 4, 2025

(unaudited)

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Net income		$	29,395			$	26,553			$	58,964			$	53,203
Other comprehensive income (loss):
Foreign currency translation    adjustments, net of tax			193				352				(88	)			1,298
Comprehensive income		$	29,588			$	26,905			$	58,876			$	54,501

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

- 5 -

EXPONENT, INC

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended July 3, 2026 and July 4, 2025

(unaudited)

		Three and Six Months Ended July 3, 2026
		Common Stock								Additional paid-in				Accumulated other comprehensive				Retained				Treasury Stock
(In thousands)		Shares				Amount				capital				loss				earnings				Shares				Amount				Total
Balance at January 2, 2026			65,707			$	66			$	369,747			$	(2,290	)		$	668,423				16,087			$	(645,605	)		$	390,341
Employee stock purchase plan			-				-				249				-				-				(5	)			58				307
Amortization of unrecognized stock-based    compensation			-				-				5,087				-				-				-				-				5,087
Purchase of treasury shares			-				-				-				-				-				1,157				(79,445	)			(79,445	)
Foreign currency translation adjustments			-				-				-				(281	)			-				-				-				(281	)
Grant of restricted stock units to settle accrued    bonus			-				-				13,381				-				-				-				-				13,381
Settlement of restricted stock units			-				-				(2,391	)			-				-				(129	)			(2,722	)			(5,113	)
Exercise of stock options			-				-				256												(18	)			214				470
Dividends and dividend equivalent rights			-				-				-				-				(15,979	)			-				-				(15,979	)
Net income			-				-				-				-				29,569				-				-				29,569
Balance at April 3, 2026			65,707			$	66			$	386,329			$	(2,571	)		$	682,013				17,092			$	(727,500	)		$	338,337
Employee stock purchase plan			-				-				278				-				-				(6	)			72				350
Amortization of unrecognized stock-based    compensation			-				-				2,736				-				-				-				-				2,736
Purchase of treasury shares			-				-				-				-				-				1,125				(68,023	)			(68,023	)
Foreign currency translation adjustments			-				-				-				193				-				-				-				193
Settlement of restricted stock units			-				-				(133	)			-				-				(11	)			111				(22	)
Exercise of stock options			-				-				358				-				-				(24	)			295				653
Dividends and dividend equivalent rights			-				-				-				-				(15,003	)			-				-				(15,003	)
Net income			-				-				-				-				29,395				-				-				29,395
Balance at July 3, 2026			65,707			$	66			$	389,568			$	(2,378	)		$	696,405				18,176			$	(795,045	)		$	288,616

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

- 6 -

EXPONENT, INC

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended July 3, 2026 and July 4, 2025

(unaudited)

		Three and Six Months Ended July 4, 2025
		Common Stock								Additional paid-in				Accumulated other comprehensive				Retained				Treasury Stock
(In thousands)		Shares				Amount				capital				income (loss)				earnings				Shares				Amount				Total
Balance at January 3, 2025			65,707			$	66			$	345,689			$	(3,791	)		$	624,151				14,893			$	(545,047	)		$	421,068
Employee stock purchase plan			-				-				326				-				-				(5	)			58				384
Amortization of unrecognized stock-based    compensation			-				-				5,028				-				-				-				-				5,028
Purchase of treasury shares			-				-				-				-				-				65				(5,000	)			(5,000	)
Foreign currency translation adjustments			-				-				-				946				-				-				-				946
Grant of restricted stock units to settle accrued    bonus			-				-				12,179				-				-				-				-				12,179
Settlement of restricted stock units			-				-				(1,499	)			-				-				(95	)			(2,667	)			(4,166	)
Exercise of stock options			-				-				53				-				-				(5	)			47				100
Dividends and dividend equivalent rights			-				-				-				-				(15,781	)			-				-				(15,781	)
Net income			-				-				-				-				26,650				-				-				26,650
Balance at April 4, 2025			65,707			$	66			$	361,776			$	(2,845	)		$	635,020				14,853			$	(552,609	)		$	441,408
Employee stock purchase plan			-				-				361				-				-				(6	)			66				427
Amortization of unrecognized stock-based    compensation			-				-				2,251				-				-				-				-				2,251
Purchase of treasury shares			-				-				-				-				-				366				(27,680	)			(27,680	)
Foreign currency translation adjustments			-				-				-				352				-				-				-				352
Settlement of restricted stock units			-				-				(84	)			-				-				(8	)			84				-
Dividends and dividend equivalent rights			-				-				-				-				(15,535	)			-				-				(15,535	)
Net income			-				-				-				-				26,553				-				-				26,553
Balance at July 4, 2025			65,707			$	66			$	364,304			$	(2,493	)		$	646,038				15,205			$	(580,139	)		$	427,776

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

- 7 -

EXPONENT, INC.

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended July 3, 2026 and July 4, 2025

(unaudited)

		Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025
Cash flows from operating activities:
Net income		$	58,964			$	53,203
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation and amortization of property, equipment and    leasehold improvements			5,193				5,012
Provision for contract losses and doubtful accounts			2,076				586
Stock-based compensation			15,738				13,426
Deferred income tax provision			2,225				(3,094	)
Changes in operating assets and liabilities:
Accounts receivable			(39,073	)			(10,191	)
Prepaid expenses and other current assets			9,428				7,135
Change in operating leases			2,309				1,756
Accounts payable and accrued liabilities			(4,930	)			4,153
Accrued payroll and employee benefits			(25,101	)			(23,774	)
Deferred revenues			3,085				(4,716	)
Net cash provided by operating activities			29,914				43,496
Cash flows from investing activities:
Capital expenditures			(4,228	)			(4,028	)
Net cash used in investing activities			(4,228	)			(4,028	)
Cash flows from financing activities:
Payroll taxes for restricted stock units			(5,135	)			(4,166	)
Repurchase of common stock			(146,138	)			(32,680	)
Exercise of stock-based payment awards			1,780				911
Dividends and dividend equivalents rights			(31,340	)			(31,582	)
Net cash used in financing activities			(180,833	)			(67,517	)
Effect of foreign currency exchange rates on cash and cash equivalents			(154	)			949
Net change in cash and cash equivalents			(155,301	)			(27,100	)
Cash and cash equivalents at beginning of period			221,930				258,901
Cash and cash equivalents at end of period		$	66,629			$	231,801

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

- 8 -

EXPONENT, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1: Basis of Presentation

Exponent, Inc. (referred to as the “Company” or “Exponent”) is an engineering and scientific consulting firm that provides solutions to complex problems. The Company operates on a 52-53 week fiscal year ending on the Friday closest to the last day of December.

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. Accordingly, they do not contain all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments which are necessary for the fair presentation of the condensed consolidated financial statements have been included and all such adjustments are of a normal and recurring nature. The operating results for the three and six months ended July 3, 2026 are not necessarily representative of the results of future quarterly or annual periods. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2026, which was filed with the U.S. Securities and Exchange Commission on February 27, 2026.

The unaudited condensed consolidated financial statements include the accounts of Exponent and its subsidiaries, which are all wholly owned. All intercompany accounts and transactions have been eliminated in consolidation.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts. Actual results could differ from those estimates.

Recent Accounting Pronouncement Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (subtopic 220-40), which requires disclosure of disaggregation of certain relevant expenses included in the statements of operations on an annual and interim basis. ASU 2024-03 will be effective for our annual periods beginning January 2, 2027 and interim periods beginning January 1, 2028. The amendments must be applied retrospectively, and early adoption is permitted. The Company is evaluating the effect that this standard may have on its consolidated financial statements and related disclosures.

Note 2: Revenue Recognition

Substantially all of the Company’s engagements are performed under time and materials or fixed-price arrangements. For time and materials contracts, the Company utilizes the practical expedient under Accounting Standards Codification 606 – Revenue from Contracts with Customers, which states if an entity has a right to consideration from a customer in an amount that corresponds directly with the value of the entity’s performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided) then the entity may recognize revenue in the amount to which the entity has a right to invoice.

- 9 -

The following table discloses the percent of the Company’s revenue generated from time and materials contracts:

		Three Months Ended								Six Months Ended
		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering & Other Scientific			68	%			65	%			65	%			66	%
Environmental and Health			12	%			15	%			13	%			14	%
Total time and materials revenues			80	%			80	%			78	%			80	%

For fixed-price contracts, the Company recognizes revenue over time because of the continuous transfer of control to the customer. The customer typically controls the work in process as evidenced either by contractual termination clauses or by the Company’s rights to payment for work performed to date to deliver services that do not have an alternative use to the Company. Revenue for fixed-price contracts is recognized based on the relationship of incurred labor hours at standard rates to the Company’s estimate of the total labor hours at standard rates it expects to incur over the term of the contract. The Company believes this methodology achieves a reliable measure of the revenue from the consulting services it provides to its customers under fixed-price contracts given the nature of the consulting services the Company provides.

The following table discloses the percent of the Company’s revenue generated from fixed price contracts:

		Three Months Ended								Six Months Ended
		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering & Other Scientific			19	%			19	%			21	%			19	%
Environmental and Health			1	%			1	%			1	%			1	%
Total fixed price revenues			20	%			20	%			22	%			20	%

Deferred revenues represent amounts billed to clients in advance of services provided. During the second quarter of 2026, $4,528,000 of revenues were recognized that were included in the deferred revenue balance at April 3, 2026. During the first six months of 2026, $9,538,000 of revenues were recognized that were included in the deferred revenue balance at January 2, 2026.

Reimbursements, including those related to travel and other out-of-pocket expenses, and other similar third- party costs such as the cost of materials and certain subcontracts, are included in revenues, and an equivalent amount of reimbursable expenses are included in operating expenses. Any service fee associated with reimbursable expenses is included in revenues before reimbursements. The Company reports revenues net of subcontractor fees for certain subcontracts where the Company has determined that it is acting as an agent because its performance obligation is to arrange for the provision of goods or services by another party. The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were $4,683,000 and $3,178,000 during the second quarter of 2026 and 2025, respectively, and $11,458,000 and $6,682,000 during the first six months of 2026 and 2025, respectively.

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Note 3: Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including money market securities, trading fixed income and equity securities held in its deferred compensation plan and the liability associated with its deferred compensation plan. There were no transfers between fair value measurement levels during the three and six months ended July 3, 2026 and July 4, 2025. Any transfers between fair value measurement levels would be recorded on the actual date of the event or change in circumstances that caused the transfer. The fair value of these financial assets and liabilities was determined using the following inputs at July 3, 2026:

		Fair Value Measurements at Reporting Date Using
(In thousands)		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Money market securities (1)		$	10,769			$	10,769			$	-			$	-
Fixed income trading securities held in deferred    compensation plan (2)			44,548				44,548				-				-
Equity trading securities held in deferred compensation    plan (2)			97,550				97,550				-				-
Total		$	152,867			$	152,867			$	-			$	-
Liabilities
Deferred compensation plan (3)			146,447				146,447				-				-
Total		$	146,447			$	146,447			$	-			$	-

(1)Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2)Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3)Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

The fair value of these financial assets and liabilities was determined using the following inputs at January 2, 2026:

		Fair Value Measurements at Reporting Date Using
(In thousands)		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Money market securities (1)		$	60,170			$	60,170			$	-			$	-
Fixed income trading securities held in deferred    compensation plan (2)			45,332				45,332				-				-
Equity trading securities held in deferred compensation    plan (2)			94,183				94,183				-				-
Total		$	199,685			$	199,685			$	-			$	-
Liabilities
Deferred compensation plan (3)			144,706				144,706				-				-
Total		$	144,706			$	144,706			$	-			$	-

- 11 -

(1)Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2)Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3)Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

Money market securities as of July 3, 2026 and January 2, 2026 represent obligations of the United States Treasury. Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan. See Note 6 for additional information about the Company’s deferred compensation plan.

Cash and cash equivalents consisted of the following as of July 3, 2026:

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
(In thousands)		Cost				Gains				Losses				Fair Value
Classified as current assets:
Cash		$	55,860			$	-			$	-			$	55,860
Cash equivalents:
Money market securities			10,769				-				-				10,769
Total cash equivalents			10,769				-				-				10,769
Total cash and cash equivalents		$	66,629			$	-			$	-			$	66,629

Cash and cash equivalents consisted of the following as of January 2, 2026:

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
(In thousands)		Cost				Gains				Losses				Fair Value
Classified as current assets:
Cash		$	161,760			$	-			$	-			$	161,760
Cash equivalents:
Money market securities			60,170				-				-				60,170
Total cash equivalents			60,170				-				-				60,170
Total cash and cash equivalents		$	221,930			$	-			$	-			$	221,930

At July 3, 2026 and January 2, 2026, the Company did not have any assets or liabilities valued using significant unobservable inputs.

The following financial instruments are not measured at fair value on the Company’s unaudited condensed consolidated balance sheet at July 3, 2026 and January 2, 2026, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. Due to their short-term nature, the estimated fair value of such instruments at July 3, 2026 and January 2, 2026 approximates their carrying value as reported on the Company’s unaudited condensed consolidated balance sheet.

- 12 -

Note 4: Net Income Per Share

Basic per share amounts are computed using the weighted-average number of shares of common stock outstanding during the period. Diluted per share amounts are calculated using the weighted-average number of shares of common stock outstanding during the period and, when dilutive, the weighted-average number of potential shares of common stock from the issuance of common stock to satisfy outstanding restricted stock units and the exercise of outstanding options to purchase common stock using the treasury stock method.

The following schedule reconciles the shares used to calculate basic and diluted net income per share:

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Shares used in basic per share computation			48,753				51,185				49,271				51,234
Effect of dilutive common stock options    outstanding			8				82				28				93
Effect of dilutive restricted stock units    outstanding			226				235				272				260
Shares used in diluted per share    computation			48,987				51,502				49,571				51,587

Common stock options to purchase 296,933 shares and 175,833 shares were excluded from the diluted per share calculation for the three months ended July 3, 2026 and July 4, 2025, respectively, due to their anti-dilutive effect. Common stock options to purchase 296,933 shares and 135,833 shares were excluded from the diluted per share calculation for the six months ended July 3, 2026 and July 4, 2025, respectively, due to their anti-dilutive effect.

Note 5: Stock-Based Compensation

Restricted Stock Units

Restricted stock unit grants are designed to attract and retain employees, and to better align employee interests with those of the Company’s stockholders. For a select group of employees, up to 40% of their annual bonus is settled with fully vested restricted stock unit awards. Under these fully vested restricted stock unit awards, the holder of each award has the right to receive one share of the Company’s common stock for each fully vested restricted stock unit four years from the date of grant. Each individual who receives a fully vested restricted stock unit award is also granted a matching number of unvested restricted stock unit awards. Unvested restricted stock unit awards are also granted for select new hires and promotions. These unvested restricted stock unit awards generally cliff vest four years from the date of grant, at which time the holder of each award will have the right to receive one share of the Company’s common stock for each restricted stock unit award provided the holder of each award has met certain employment conditions. In the case of retirement at 59½ years or older, all unvested restricted stock unit awards will continue to vest, provided that the holder of each award does all consulting work through the Company and does not become an employee for a past or present client, beneficial party or competitor of the Company.

The value of these restricted stock unit awards is determined based on the market price of the Company’s common stock on the date of grant. The value of fully vested restricted stock unit awards issued is recorded as a reduction to accrued bonuses. The portion of bonus expense that the Company expects to settle with fully vested restricted stock unit awards is recorded as stock-based compensation during the period the bonus is earned. The Company recorded stock-based compensation expense associated with accrued bonus awards of $3,944,000 and $2,995,000 during the three months ended July 3, 2026 and July 4, 2025, respectively. For the six months ended July 3, 2026 and July 4, 2025, the Company recorded stock-based compensation expense associated with accrued bonus awards of $7,915,000 and $6,147,000, respectively. The value of the unvested restricted stock unit awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded stock-based compensation expense associated with the unvested restricted stock unit awards of $2,468,000 and $2,076,000 during the three months ended July 3, 2026 and July 4, 2025, respectively. The Company recorded stock-based compensation expense associated with the

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unvested restricted stock unit awards of $6,882,000 and $6,316,000 during the six months ended July 3, 2026 and July 4, 2025, respectively.

Stock Options

Stock options are granted for terms of ten years and generally vest 25% per year over a four-year period from the grant date. Unvested stock option awards will continue to vest in the case of retirement at 59½ years or older, provided that the holder of each award does all consulting work through the Company and does not become an employee for a past or present client, beneficial party or competitor of the Company. The value of the unvested stock option awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded stock-based compensation expense associated with stock option grants of $268,000 and $175,000 during the three months ended July 3, 2026 and July 4, 2025, respectively. The Company recorded stock-based compensation expense associated with stock option grants of $941,000 and $963,000 during the six months ended July 3, 2026 and July 4, 2025, respectively.

The Company uses the Black-Scholes option-pricing model to determine the fair value of options granted. The determination of the fair value of stock option awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include expected stock price volatility over the term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends.

The Company used historical exercise, forfeiture, and post-vesting expiration data to estimate the expected term of options granted. The historical volatility of the Company’s common stock over a period of time equal to the expected term of the options granted was used to estimate expected volatility. The risk-free interest rate used in the option-pricing model was based on United States Treasury zero-coupon issues with remaining terms similar to the expected term of the options. The dividend yield assumption considers the expectation of continued declaration of dividends, offset by option holders’ dividend equivalent rights.

The Company accounts for forfeitures of stock-based awards when they occur. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards.

Note 6: Deferred Compensation Plans

The Company maintains nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees. Under these plans, participants may elect to defer up to 100% of their compensation. Company assets that are earmarked to pay benefits under the plans are held in a rabbi trust and are subject to the claims of the Company’s creditors. As of July 3, 2026 and January 2, 2026, the invested amounts under the plans totaled $142,098,000 and $139,515,000, respectively, and are recorded in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to miscellaneous income, net.

As of July 3, 2026 and January 2, 2026, vested amounts due under the plans totaled $146,447,000 and $144,706,000, respectively, and are recorded within accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended July 3, 2026, the Company recognized additional compensation expense of $11,783,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a gain in miscellaneous income, net. During the three months ended July 4, 2025, the Company recognized additional compensation expense of $16,963,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a gain in miscellaneous income, net. During the six months ended July 3, 2026, the Company recognized additional compensation expense of $10,645,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a gain in miscellaneous income, net. During the six months ended July 4, 2025, the Company recognized additional compensation expense of $7,627,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a gain in miscellaneous income, net.

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Note 7: Supplemental Cash Flow Information

The following is supplemental disclosure of cash flow information:

		Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025
Cash paid during period:
Income taxes		$	23,062			$	20,330
Non-cash investing and financing activities:
Vested stock unit awards issued to settle accrued bonuses		$	13,381			$	12,179
Accrual for capital expenditures		$	80			$	189
Right-of-use asset obtained in exchange for operating lease obligations		$	510			$	685

Note 8: Accounts Receivable, Net

At July 3, 2026 and January 2, 2026, accounts receivable, net, was comprised of the following:

		July 3,				January 2,
(In thousands)		2026				2026
Billed accounts receivable		$	158,882			$	134,700
Unbilled accounts receivable			67,108				54,285
Allowance for contract losses and doubtful accounts			(7,486	)			(7,478	)
Total accounts receivable, net		$	218,504			$	181,507

The Company maintains allowances for estimated losses over the remaining contractual life of its receivables resulting from the inability of customers to meet their financial obligations or for disputes that affect the Company’s ability to fully collect amounts due. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations or aware of a dispute with a specific customer, a specific allowance is recorded to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers the Company recognizes allowances for doubtful accounts based upon historical write-offs, customer concentration, customer creditworthiness, current economic conditions, aging of amounts due and future expectations.

A reconciliation of the beginning and ending amount of the allowance for contract losses and doubtful accounts is as follows:

(In thousands)
Balance at January 2, 2026		$	7,478
Provision for contract losses and doubtful accounts			2,076
Write-offs			(2,068	)
Balance at July 3, 2026		$	7,486

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Note 9: Segment Reporting

The Company has two reportable operating segments based on two primary areas of service. The Engineering and Other Scientific segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health segment provides services in the areas of environmental, epidemiology and health risk analysis. This segment provides a wide range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment. Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments, but does not review total assets in evaluating segment performance and capital allocation.

Segment information for the three and six months ended July 3, 2026 and July 4, 2025 follows:

Revenues

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering and Other Scientific		$	148,829			$	120,980			$	290,241			$	243,115
Environmental and Health			22,783				20,982				47,674				44,354
Total revenues		$	171,612			$	141,962			$	337,915			$	287,469

Compensation and related expenses

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering and Other Scientific		$	63,862			$	56,914			$	127,920			$	114,162
Environmental and Health			12,945				11,740				25,842				24,188
Total segment compensation and related expenses			76,807				68,654				153,762				138,350
Corporate compensation and related expenses			23,764				28,820				38,218				35,027
Total compensation and related expenses		$	100,571			$	97,474			$	191,980			$	173,377

Operating Income

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering and Other Scientific		$	49,540			$	42,942			$	99,955			$	88,055
Environmental and Health			7,625				7,020				16,010				15,718
Total segment operating income			57,165				49,962				115,965				103,773
Corporate operating expense			(29,143	)			(32,785	)			(46,564	)			(42,164	)
Total operating income		$	28,022			$	17,177			$	69,401			$	61,609

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, legal, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with its deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in its allowance for contract losses and doubtful accounts.

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Capital Expenditures

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering and Other Scientific		$	475			$	306			$	1,107			$	781
Environmental and Health			62				39				102				101
Total segment capital expenditures			537				345				1,209				882
Corporate capital expenditures			1,120				2,045				2,857				2,760
Total capital expenditures		$	1,657			$	2,390			$	4,066			$	3,642

Certain capital expenditures associated with the Company’s corporate cost centers and the related depreciation are excluded from the Company’s segment information.

Depreciation and Amortization

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Engineering and Other Scientific		$	1,979			$	1,836			$	3,828			$	3,662
Environmental and Health			48				49				93				96
Total segment depreciation and    amortization			2,027				1,885				3,921				3,758
Corporate depreciation and amortization			651				635				1,272				1,254
Total depreciation and amortization		$	2,678			$	2,520			$	5,193			$	5,012

One client comprised 11% of the Company’s revenues during the three months ended July 3, 2026. No other client comprised more than 10% of the Company’s revenues during the three months ended July 3, 2026. No single client comprised more than 10% of the Company’s revenues during the six months ended July 3, 2026. No single client comprised more than 10% of the Company’s revenues during the three and six months ended July 4, 2025.

Note 10: Leases

The Company determines if an arrangement is a lease at the inception of the arrangement. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and long-term operating lease liabilities in the Company’s condensed consolidated balance sheet. The Company does not have any finance leases as of July 3, 2026.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The amortization of operating lease ROU assets and the change in operating lease liabilities is disclosed as a single line item in the condensed consolidated statements of cash flows.

The Company leases office, laboratory, and storage space in 13 states and the District of Columbia, as well as in China, Germany, Hong Kong, Switzerland, and the United Kingdom. Leases for these office, laboratory, and storage facilities have terms generally ranging between one and ten years. Some of these leases include options to extend or terminate the lease, none of which are currently included in the lease term as the Company has determined that exercise of these options is not reasonably certain.

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The Company has a Test and Engineering Center on 147 acres of land in Phoenix, Arizona. The Company leases this land from the State of Arizona under an agreement that expires in January of 2043 and includes an option to renew for one fifteen-year period.

The Company’s equipment leases are included in the ROU asset and liability balances, but are not material.

The Company leases excess space in its Silicon Valley and Natick facilities. Rental income of $397,000 and $285,000 was included in other income for the three months ended July 3, 2026 and July 4, 2025, respectively. Rental income of $729,000 and $476,000 was included in other income for the six months ended July 4, 2025 and July 4, 2025, respectively.

The components of lease expense included in other operating expenses on the condensed consolidated statements of income were as follows:

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Operating lease cost		$	3,256			$	2,896			$	6,451			$	6,108
Variable lease cost			407				414				1,036				717
Short-term lease cost			281				381				547				737

Supplemental cash flow information related to operating leases was as follows:

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Cash paid for amounts included in the    measurement of operating lease    liabilities		$	2,122			$	1,678			$	5,231			$	4,280

Supplemental balance sheet information related to operating leases was as follows:

		July 3, 2026		July 4, 2025
Weighted Average Remaining Lease Term		12.9 years		13.5 years
Weighted Average Discount Rate		6.3%		6.3%

Maturities of operating lease liabilities as of July 3, 2026:

		Operating
(In thousands)		Leases
2026 (excluding the six months ended July 3, 2026)		$	4,177
2027			8,381
2028			11,107
2029			9,668
2030			9,097
Thereafter			80,132
Total lease payments			122,562
Less imputed interest			41,841
Total lease liability		$	80,721

Note 11: Contingencies

The Company is a party to various legal actions from time to time and may be contingently liable in connection with claims and contracts arising in the normal course of business, the outcome of which the Company believes, after consultation with legal counsel, will not have a material adverse effect on its financial condition, results

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of operations or liquidity. However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results. All legal costs associated with litigation are expensed as incurred.

Note 12: Subsequent Events

On July 30, 2026, the Company’s Board of Directors announced a cash dividend of $0.31 per share of the Company’s common stock, payable September 18, 2026, to stockholders of record as of September 4, 2026. On July 30, 2026, the Company announced that its Board of Directors authorized $50 million for the repurchase of the Company’s common stock which is in addition to the amounts remaining under prior repurchase authorizations. These repurchase authorizations have no expiration date.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included herein and with our audited consolidated financial statements and notes thereto for the fiscal year ended January 2, 2026, which are contained in our fiscal 2025 Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission on February 27, 2026 (our “2025 Annual Report”).

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains 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 our management, as well as assumptions made by and information currently available to our management. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. When used in this document, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to us or our management, identify such forward-looking statements. Such statements reflect the current views of us or our 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, our 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 general 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 2025 Annual Report under the heading “Risk Factors” and elsewhere in this 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 we contemplated will be achieved. Due to such uncertainties and risks, you are warned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. We do not intend to release publicly any updates or revisions to any such forward-looking statements.

Business Overview

Exponent, Inc. is an engineering and scientific consulting firm providing solutions to complex problems. Our interdisciplinary organization of scientists, engineers, and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today. The firm leverages over 55 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes, ensure the safety and health of their users, and address the challenges of sustainability.

CRITICAL ACCOUNTING ESTIMATES

There have been no significant changes in our critical accounting estimates during the six months ended July 3, 2026, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Annual Report.

RESULTS OF CONSOLIDATED OPERATIONS

Executive Summary

Revenues for the second quarter of 2026 increased 21% to $171,612,000 as compared to $141,962,000 during the same period last year. Revenues before reimbursements for the second quarter of 2026 increased 12% to $148,860,000 as compared to $132,868,000 during the same period last year. 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. This work includes a large study that represented approximately 4% of our net revenues during the quarter. Proactive activity was also supported by increased risk management and

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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.

Net income increased 11% to $29,395,000 during the second quarter of 2026 as compared to $26,553,000 during the same period last year. Diluted earnings per share increased to $0.60 per share during the second quarter of 2026 as compared to $0.52 in the same period last year.

We remain focused on building our world-class engineering and scientific team to position us at the forefront of innovation and meet the ever-changing needs of our clients and the market. We also remain focused on capitalizing on emerging growth areas, managing other operating expenses, generating cash from operations, maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance stockholder value.

Overview of the Three Months Ended July 3, 2026

During the second quarter of 2026, billable hours increased 9% to 390,000 as compared to 359,000 during the same period last year. Our utilization increased to 74% during the second quarter of 2026 as compared to 72% during the same period last year. Average technical full-time equivalent employees increased 6% to 1,012 during the second quarter of 2026 as compared to 958 during the same period last year.

Three Months Ended July 3, 2026 compared to Three Months Ended July 4, 2025

Revenues

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Engineering and Other Scientific		$	148,829			$	120,980				23.0	%
Percentage of total revenues			86.7	%			85.2	%
Environmental and Health			22,783				20,982				8.6	%
Percentage of total revenues			13.3	%			14.8	%
Total revenues		$	171,612			$	141,962				20.9	%

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billable hours, increase in billing rates and an increase in revenues from reimbursements associated with user research projects. Growth during the quarter was driven by user research studies in consumer electronics and risk management in the utilities industry, along with reactive engagements across the consumer products, chemicals, and transportation industries. During the second quarter of 2026, billable hours for this segment increased by 10% to 320,000 as compared to 291,000 during the same period last year. Utilization for this segment increased to 76% during the second quarter of 2026 as compared to 74% during the same period last year. Average technical full-time equivalent employees in this segment increased 7% to 810 during the second quarter of 2026 as compared to 756 for the same period last year.

The increase in revenues for our Environmental and Health segment was due to an increase in billable hours and an increase in billing rates. Growth in this segment was driven by engagements evaluating the impacts of chemicals on human health and the environment. During the second quarter of 2026, billable hours for this segment increased by 3% to 70,000 as compared to 68,000 during the same period last year. Utilization for this segment increased to 66% during the second quarter of 2026 as compared to 65% during the same period last year. Average technical full-time equivalent employees in this segment were flat at 202 during the second quarter of 2026 and 2025.

Compensation and Related Expenses

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Compensation and related expenses		$	100,571			$	97,474				3.2	%
Percentage of total revenues			58.6	%			68.7	%

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The increase in compensation and related expense during the second quarter of 2026 was due to an increase in payroll expense and an increase in bonus expense partially offset by a change in the value of assets associated with our deferred compensation plan. During the second quarter of 2026 payroll expense increased by $4,849,000 due to the impact of our annual salary increase and an increase in technical full-time equivalent employees. During the second quarter of 2026, bonus expense increased by $2,990,000 due to a corresponding increase in our bonus pool which is 33% of income before income taxes, interest income, bonus expense, and stock-based compensation. During the second quarter of 2026, deferred compensation expense decreased by $5,180,000 with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plans. During the second quarter of 2026, the value of plan assets increased by $11,783,000 as compared to an increase of $16,963,000 during the same period last year. We expect our compensation expense, excluding the change in value of deferred compensation plan assets, to increase as we selectively add new talent and adjust compensation to market conditions.

Other Operating Expenses

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Other operating expenses		$	12,865			$	12,072				6.6	%
Percentage of total revenues			7.5	%			8.5	%

Other operating expenses include facilities-related costs, technical materials, computer-related expenses and depreciation and amortization of property, equipment and leasehold improvements. The increase in other operating expenses during the second quarter of 2026 was primarily due to an increase in computer-related expenses of $354,000 and an increase in occupancy expense of $270,000. The increase in computer-related expenses and occupancy expenses were due to continued investments in our corporate infrastructure. We expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Reimbursable Expenses

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Reimbursable expenses		$	22,752			$	9,094				150.2	%
Percentage of total revenues			13.3	%			6.4	%

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The increase in reimbursable expenses was due to an increase in reimbursable expenses associated with user research projects.

General and Administrative Expenses

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
General and administrative expenses		$	7,402			$	6,145				20.5	%
Percentage of total revenues			4.3	%			4.3	%

The increase in general and administrative expenses was primarily due to an increase in personnel expenses of $498,000, an increase in travel and meals of $246,000, and several other individually insignificant increases. The increase in personnel expenses was primarily due to an increase in relocation expenses. The increase in travel and meals was due to an increase in client and business development activities. We expect general and administrative expenses to increase as we selectively add new talent and expand our business development and staff development initiatives.

Operating Income

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		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Engineering and Other Scientific		$	49,540			$	42,942				15.4	%
Environmental and Health			7,625				7,020				8.6	%
Total segment operating income			57,165				49,962				14.4	%
Corporate operating expense			(29,143	)			(32,785	)			(11.1	)%
Total operating income		$	28,022			$	17,177				63.1	%

The increase in operating income for our Engineering and Other Scientific segment and our Environmental and Health segment during the second quarter of 2026 was due to an increase in utilization.

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, legal, finance, information technology, corporate, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plans; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

The decrease in corporate operating expenses during the second quarter of 2026 as compared to the same period last year was primarily due to a decrease in deferred compensation expense. During the second quarter of 2026, deferred compensation expense decreased by $5,180,000, with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plans. During the second quarter of 2026, the value of plan assets increased by $11,783,000 as compared to an increase of $16,963,000 during the same period last year.

Other Income, Net

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Other income / (loss), net		$	12,744			$	19,638			(35.1%)
Percentage of total revenues			7.4	%			13.8	%

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The decrease in other income, net, was primarily due to a change in the value of assets associated with our deferred compensation plan and a decrease in interest income. During the second quarter of 2026, deferred compensation expense decreased by $5,180,000 with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. During the second quarter of 2026, the value of plan assets increased by $11,783,000 as compared to an increase of $16,963,000 during the same period last year. During the second quarter of 2026, interest income decreased by $1,628,000 due to lower average cash equivalent balances.

Income Taxes

		Three Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Income taxes		$	11,371			$	10,262				10.8	%
Percentage of total revenues			6.6	%			7.2	%
Effective tax rate			27.9	%			27.9	%

The tax impact associated with share-based awards was immaterial in both the second quarters of 2026 and 2025.

Six Months Ended July 3, 2026 compared to Six Months Ended July 4, 2025

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Revenues

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Engineering and Other Scientific		$	290,241			$	243,115				19.4	%
Percentage of total revenues			85.9	%			84.6	%
Environmental and Health			47,674				44,354				7.5	%
Percentage of total revenues			14.1	%			15.4	%
Total revenues		$	337,915			$	287,469				17.5	%

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billable hours, an increase in billing rates and an increase in revenues from reimbursements associated with user research projects. Growth during the first six months of 2026 was primarily driven by user research studies in consumer electronics and risk management in the utilities industry, along with reactive engagements across the consumer products, construction, and transportation industries. During the first six months of 2026, billable hours for this segment increased by 10% to 648,000 as compared to 591,000 during the same period last year. Utilization for this segment increased to 77% during the first six months of 2026 as compared to 75% during the same period last year. Average technical full-time equivalent employees in this segment increased 7% to 812 during the first six months of 2026 as compared to 759 for the same period last year.

The increase in revenues for our Environmental and Health segment was due to an increase in billing rates partially offset by a decrease in billable hours. During the first six months of 2026, billable hours for this segment decreased by 2% to 141,000 as compared to 144,000 during the same period last year. Utilization in this segment was flat at 68% during the first six months of 2026 and 2025. Average technical full-time equivalent employees in this segment decreased by 1% to 200 during the first six months of 2026 as compared to 203 during the same period last year.

Compensation and Related Expenses

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Compensation and related expenses		$	191,980			$	173,377				10.7	%
Percentage of total revenues			56.8	%			60.3	%

The increase in compensation and related expenses during the first six months of 2026 was due to an increase in payroll, an increase in bonuses and the change in the value of assets associated with our deferred compensation plans. During the first six months of 2026, payroll expense increased by $9,008,000 due to an increase in technical full-time equivalent employees and the impact of annual salary increases. During the first six months of 2026, bonus expense increased by $5,928,000 due to a corresponding increase in our bonus pool which is 33% of income before income taxes, interest income, bonus expense, and stock-based compensation. During the first six months of 2026, deferred compensation expense increased by $3,018,000 with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of plan assets of $10,645,000 during the first six months of 2026 as compared to an increase in the value of plan assets of $7,627,000 during the same period last year.

Other Operating Expenses

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Other operating expenses		$	25,690			$	24,167				6.3	%
Percentage of total revenues			7.6	%			8.4	%

Other operating expenses include facilities-related costs, technical materials, computer-related expenses and depreciation and amortization of property, equipment and leasehold improvements. The increase in other operating expenses during the first six months of 2026 was primarily due to an increase in occupancy expense of $658,000 and an increase in computer-related expenses of $608,000. The increase in occupancy expense and computer-related

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expenses was due to continued investments in our corporate infrastructure. We expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Reimbursable Expenses

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Reimbursable expenses		$	37,238			$	17,164				117.0	%
Percentage of total revenues			11.0	%			6.0	%

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The increase in reimbursable expenses was due to an increase in reimbursable expenses associated with user research projects.

General and Administrative Expenses

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
General and administrative expenses		$	13,606			$	11,152				22.0	%
Percentage of total revenues			4.0	%			3.9	%

The increase in general and administrative expenses was primarily due to an increase in personnel expenses of $676,000 and an increase in travel and meals of $654,000. The increase in personnel expenses was due to an increase in relocation expenses. The increase in travel and meals was due to an increase in client and business development activities. We expect general and administrative expenses to increase as we expand our business development and staff development initiatives.

Operating Income

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Engineering and Other Scientific		$	99,955			$	88,055				13.5	%
Environmental and Health			16,010				15,718				1.9	%
Total segment operating income			115,965				103,773				11.7	%
Corporate operating expense			(46,564	)			(42,164	)			10.4	%
Total operating income		$	69,401			$	61,609				12.6	%

The increase in operating income for our Engineering and Other Scientific segment during the first six months of 2026 as compared to the same period last year was due to an increase in utilization. The increase in operating income for our Environmental and Health segment during the first six months of 2026 was due to an increase in billing rates.

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, legal, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

The increase in corporate operating expenses during the first six months of 2026 as compared to the same period last year was primarily due to an increase in deferred compensation expense. During the first six months of 2026, deferred compensation expense increased by $3,018,000, with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plans. During the first six months of 2026, the value of plan assets increased by $10,645,000 as compared to an increase of $7,627,000 during the same period last year.

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Other Income, Net

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Other income (loss), net		$	13,704			$	12,966				5.7	%
Percentage of total revenues			4.1	%			4.5	%

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The increase in other income, net, was primarily due to a change in the value of assets associated with our deferred compensation plan partially offset by a decrease in interest income. During the first six months of 2026, deferred compensation expense increased by $3,018,000 with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. During the first six months of 2026, the value of plan assets increased by $10,645,000 as compared to an increase of $7,627,000 during the same period last year. During the first six months of 2026, interest income decreased by $2,624,000 due to a decrease in interest rates and lower average cash equivalent balances.

Income Taxes

		Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				Percent Change
Income taxes		$	24,141			$	21,372				13.0	%
Percentage of total revenues			7.1	%			7.4	%
Effective tax rate			29.0	%			28.7	%

During the first six months of 2026, we realized a negative tax impact associated with stock-based awards of $843,000 as compared to a negative tax impact of $485,000 during the same period last year. The change in the tax impact associated with stock-based awards was due to the change in the difference of the value of our common stock between the grant date and the release date for the restricted stock units released during the first six months of 2026 as compared to the same period last year. Excluding the negative tax impact, our consolidated tax rate was 28.0% in the first six months of 2026 and 2025.

LIQUIDITY AND CAPITAL RESOURCES

We believe our existing balances of cash, cash equivalents, short-term investments and cash generated from operations will be sufficient to satisfy our working capital needs, capital expenditures, outstanding commitments, stock repurchases, dividends and other liquidity requirements over at least the next 12 months.

		Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025
Net cash provided by operating activities		$	29,914			$	43,496
Net cash used in investing activities			(4,228	)			(4,028	)
Net cash used in financing activities			(180,833	)			(67,517	)

We financed our business during the first six months of 2026 through available cash. As of July 3, 2026, our cash and cash equivalents were $66,629,000 as compared to $221,930,000 at January 2, 2026. The decrease in cash and cash equivalents was primarily due to an increase in repurchases of our common stock. During the first six months of 2026, we repurchased $146,138,000 of our common stock as compared to $32,680,000 during the same period last year.

Generally, our net cash provided by operating activities is used to fund our day-to-day operating activities. First quarter operating cash requirements are generally higher due to payment in the first quarter of annual bonuses accrued during the prior year. The largest source of operating cash flows is collections from our clients. Our primary

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uses of cash from operating activities are for employee-related expenditures, leased facilities, taxes, and general operating expenses.

The increase in net cash used in investing activities during the first six months of 2026, as compared to the same period last year, was due to an increase in capital expenditures. The increase in capital expenditures was due to an increase in investment in our corporate infrastructure.

The increase in net cash used in financing activities during the first six months of 2026, as compared to the same period last year was primarily due to an increase in repurchases of our common stock. During the first six months of 2026, we repurchased $146,138,000 of our common stock as compared to $32,680,000 during the same period last year.

We lease office, laboratory, and storage space in 13 states and the District of Columbia, as well as in China, Germany, Hong Kong, Switzerland, and the United Kingdom under non-cancellable operating lease arrangements that expire at various dates through 2033. On June 19, 2024, we entered into an agreement with the State of Arizona to extend our land lease for 15 years beginning on January 17, 2028. We are currently obligated to make payments under the lease of $1,009,000 per year, which obligation will continue at that level until January 16, 2028. Beginning on January 17, 2028, our payments under the lease will increase to approximately $6,183,000 per year for the 15-year extension term with adjustments to the annual rent payment in 2033 and 2038 based on the consumer price index.

We expect to continue our investing activities, including capital expenditures. Furthermore, cash reserves may be used to repurchase common stock under our stock repurchase programs, pay dividends, procure facilities and equipment or strategically acquire professional service firms that are complementary to our business.

We maintain nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees. Vested amounts due under the plans of $127,839,000 were recorded as a deferred compensation plan liability on our unaudited condensed consolidated balance sheet at July 3, 2026. Vested amounts due under the plans of $18,609,000 were recorded as an accrued payroll and employee benefits on our unaudited condensed consolidated balance sheet at July 3, 2026. Company assets that are designated to fund the benefits under the plans are held in a rabbi trust and are subject to the claims of our creditors. As of July 3, 2026, invested amounts under the plans of $122,823,000 were recorded as a non-current asset on our unaudited condensed consolidated balance sheet. As of July 3, 2026, invested amounts under the plans of $19,274,000 were recorded as other current assets on our unaudited condensed consolidated balance sheet.

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid. We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.

Non-GAAP Financial Measures

Regulation G, Conditions for Use of Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures, and other U.S. Securities and Exchange Commission (“SEC”) rules and regulations define and prescribe the conditions for use of Non-GAAP financial information. 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. We closely monitor two financial measures, EBITDA and EBITDAS, which meet the definition of Non-GAAP financial measures. We define EBITDA as net income before net interest income, income taxes, depreciation and amortization. We define EBITDAS as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance 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. These measures are used to evaluate our financial results, develop budgets and determine employee compensation. These measures, however, should be considered in addition to, and not as a substitute for or superior to, operating income, cash flows,

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or other measures of financial performance prepared in accordance with GAAP. A reconciliation of the Non-GAAP measures to the nearest comparable GAAP measure is set forth below.

The following table is a reconciliation of EBITDA and EBITDAS to the most comparable GAAP measure, net income, for the three and six months ended July 3, 2026 and July 4, 2025:

		Three Months Ended								Six Months Ended
(In thousands)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 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			42,728				36,991				85,864				74,529
Stock-based compensation			6,680				5,246				15,738				13,426
EBITDAS		$	49,408			$	42,237			$	101,602			$	87,955

The following table shows EBITDA (determined as shown in the reconciliation table below) as a percentage of revenues before reimbursements for the three and six months ended July 3, 2026 and July 4, 2025:

		Three Months Ended								Six Months Ended
(In thousands, except percentages)		July 3, 2026				July 4, 2025				July 3, 2026				July 4, 2025
Revenues before reimbursements		$	148,860			$	132,868			$	300,677			$	270,305
EBITDA		$	42,728			$	36,991			$	85,864			$	74,529
EBITDA as a % of revenues before    reimbursements			28.7	%			27.8	%			28.6	%			27.6	%

The increase in EBITDA as a percentage of revenues before reimbursements during the three and six months ended July 3, 2026 as compared to the same periods last year was primarily due to an increase in net revenues and an increase in utilization.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate risk associated with our balances of cash and cash equivalents. We manage our interest rate risk by maintaining an investment portfolio primarily consisting of debt instruments with high credit quality and relatively short average effective maturities in accordance with our investment policy. The maximum effective maturity of any issue in our portfolio is three years and the maximum average effective maturity of the portfolio cannot exceed 12 months. If interest rates were to instantaneously increase or decrease by 100 basis points, the change in the fair market value of our portfolio of cash equivalents would not have a material impact on our financial statements. We do not use derivative financial instruments in our portfolio. There have not been any material changes during the period covered by this Quarterly Report on Form 10-Q to our interest rate risk exposures, or how these exposures are managed. Notwithstanding our efforts to manage interest rate risk, there can be no assurances that we will be adequately protected against the risks associated with interest rate fluctuations.

We have foreign currency risk related to our revenues and expenses denominated in currencies other than the U.S. dollar, primarily the British Pound, the Euro, the Chinese Yuan, the Hong Kong Dollar, and the Singapore Dollar. Accordingly, changes in exchange rates may negatively affect the revenues and net income of our foreign subsidiaries as expressed in U.S. dollars.

At July 3, 2026, we had net assets of approximately $12.5 million with a functional currency of the British Pound, net assets of approximately $2.8 million with a functional currency of the Chinese Yuan, net assets of approximately $2.8 million with a functional currency of the Hong Kong Dollar, and net assets of approximately $1.8 million with a functional currency of the Singapore Dollar associated with our operations in the United Kingdom, China, Hong Kong, and Singapore, respectively.

We also have foreign currency risk related to foreign currency transactions and monetary assets and liabilities denominated in currencies that are not the functional currency. We have experienced and will continue to experience fluctuations in our net income as a result of gains (losses) on these foreign currency transactions and the remeasurement of monetary assets and liabilities. At July 3, 2026, we had net assets denominated in the non-functional currency of approximately $2.7 million.

We do not use foreign exchange contracts to hedge any foreign currency exposures. To date, the impacts of foreign currency exchange rate changes on our consolidated revenues and consolidated net income have not been significant. However, our continued international growth increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

Item 4. Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that, as of July 3, 2026, the Company’s disclosure controls and procedures were effective.

We review and evaluate the design and effectiveness of our disclosure controls and procedures on an ongoing basis, to improve our controls and procedures over time and to correct any deficiencies that we may discover in the future. Our goal is to ensure that our senior management has timely access to all material financial and non-financial information concerning our business. While we believe the present design of our disclosure controls and procedures is effective to achieve our goal, future events affecting our business may cause us to significantly modify our disclosure controls and procedures.

(b)Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three-month period ended July 3, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not engaged in any material legal proceedings.

Item 1A. Risk Factors

There have been no material changes from risk factors as previously discussed under the heading “Risk Factors” in the Company’s 2025 Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information on the Company’s repurchases of the Company’s common stock for the three months ended July 3, 2026:

(In thousands, except price per share)		Total Number of Shares Purchased				Average Price Paid Per Share				Total Number of Shares Purchased as Part of Publicly Announced Programs				Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (1)
April 4 to May 1			109			$	64.96				109			$	60,662
May 2 to May 29			313				60.10				313				41,837
May 30 to July 3			703				59.00				703				342
Total			1,125			$	59.88				1,125			$	342

(1)Repurchases of the Company’s common stock were made pursuant to a repurchase program authorized by the Company’s Board of Directors. On October 30, 2025, the Company’s Board of Directors announced approval of $100,000,000 for the repurchase of the Company’s common stock. On April 30, 2026, the Company’s Board of Directors announced approval of $50,000,000 for the repurchase of the Company’s common stock. The Company’s repurchase authorization has no expiration date

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Rule 10b5-1 Plans. None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s second quarter ended July 3, 2026.

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Item 6. Exhibits

(a)Exhibit Index

31.1	Certification of Chief Executive Officer pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Embedded Linkbase Documents
Exhibit 104	Cover page formatted as Inline XBRL and contained in Exhibit 101

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EXPONENT, INC.

(Registrant)

Date: August 7, 2026

/s/ Catherine Ford Corrigan

Catherine Ford Corrigan, Ph.D., Chief Executive Officer

/s/ Eric Anderson

Eric Anderson, Chief Financial Officer

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