Exponent Q3 2026 revenue rises 18.1% to $174M

User-research and reactive-work demand grew; increased share repurchases were the primary reason cash balances declined.

Available on EDGAR 11/06/2026 - 04:08 PM EST Accepted by SEC EDGAR 11/06/2026 - 04:07 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Exponent, Inc. (EXPO) reported third-quarter revenue of $173.7 million for the three months ended October 2, 2026, up 18.1% from $147.1 million a year earlier; revenue before reimbursements rose 12% to $153.1 million. Net income was $30.9 million, compared with $28.0 million, and diluted earnings per share were $0.64 versus $0.55. Operating income increased 44.2% to $41.9 million.

Management attributed growth to user-research demand as clients accelerated development of AI-enabled products, alongside increased dispute-related and failure-analysis work. For the nine months ended October 2, 2026, operating cash flow was $93.1 million versus $76.1 million. Cash and cash equivalents were $114.7 million as of October 2, 2026, compared with $221.9 million as of January 2, 2026; Exponent said the decrease was primarily due to increased repurchases, totaling $146.1 million during the nine months.

The board declared a $0.31-per-share cash dividend, payable December 18, 2026, to stockholders of record December 4, 2026. One client accounted for 11% of third-quarter revenue and 10% of revenue for the first nine months.

3 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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

How the balance worksHow Sentiment works

0 major · 0 points

How the balance works

Positive

• Moderate pointQuarterly revenue rose 18.1% to $173.7 million.
• Moderate pointQuarterly net income increased 10% to $30.9 million.
• Moderate pointNine-month operating cash flow was $93.1 million, versus $76.1 million.

Negative

• None.

Filing Explained

The report says Exponent has agreed to extend its Arizona land lease, committing it to higher annual rent: from $1.009 million to about $6.183 million starting January 17, 2028, for the 15-year extension, with CPI-based adjustments in 2033 and 2038.

Key Figures

Revenue: $173.7 million Revenue before reimbursements: $153.1 million Net income: $30.9 million +5 more

8 metrics

Revenue $173.7 million Three months ended October 2, 2026; up 18.1% from $147.1 million a year earlier

Revenue before reimbursements $153.1 million Three months ended October 2, 2026; up 12% from $137.1 million

Net income $30.9 million Three months ended October 2, 2026; up 10% from $28.0 million

Diluted earnings per share $0.64 per share Three months ended October 2, 2026, versus $0.55 per share a year earlier

Operating income $41.9 million Three months ended October 2, 2026; up 44.2% from $29.0 million

Net cash provided by operating activities $93.1 million Nine months ended October 2, 2026, versus $76.1 million in the comparable period

Common stock repurchases $146.1 million Nine months ended October 2, 2026, versus $72.7 million in the comparable period

Cash dividend $0.31 per share Payable December 18, 2026, to stockholders of record December 4, 2026

Key Terms

time and materials contracts, fixed-price contracts, rabbi trust, EBITDAS

4 terms

time and materials contracts financial

"percent of the Company’s revenue generated from time and materials contracts"

fixed-price contracts financial

"Revenue for fixed-price contracts is recognized based on the relationship"

Fixed-price contracts are agreements where a seller or service provider commits to deliver a defined product or service for a set total price, regardless of the actual costs incurred while performing the work. They matter to investors because they create more predictable revenue and clear margin exposure—like agreeing to pay a fixed bill for a meal even if ingredient costs rise—which affects earnings stability, cash flow forecasting, and the company's cost risk.

rabbi trust financial

"held in a rabbi trust and are subject to the claims of the Company’s creditors"

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.

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.

FAQ

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

What revenue did EXPO report for the third quarter of 2026?

EXPO reported total revenue of $173.7 million for the three months ended October 2, 2026, up 18.1% from $147.1 million for the three months ended October 3, 2025. Revenue before reimbursements was $153.1 million, up 12%.

Which EXPO business segments grew in the third quarter of 2026?

Engineering and Other Scientific revenue was $150.1 million, a 21.0% increase from $124.0 million; Environmental and Health revenue was $23.6 million, up 2.3% from $23.1 million in the third quarter of 2025.

What dividend did EXPO declare, and when is it payable?

The board declared a cash dividend of $0.31 per share, payable December 18, 2026, to stockholders of record December 4, 2026.

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

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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 October 2, 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 October 30, 2026, the latest practicable date, the registrant had 47,552,453 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 October 2, 2026 and January 2, 2026		3
		Condensed Consolidated Statements of Income For the Three and Nine Months Ended October 2, 2026 and October 3, 2025		4
		Condensed Consolidated Statements of Comprehensive Income For the Three and Nine Months Ended October 2, 2026 and October 3, 2025		5
		Condensed Consolidated Statements of Stockholders’ Equity For the Three and Nine Months Ended October 2, 2026 and October 3, 2025		6
		Condensed Consolidated Statements of Cash Flows For the Nine Months Ended October 2, 2026 and October 3, 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

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

EXPONENT, INC.

Condensed Consolidated Balance Sheets

October 2, 2026 and January 2, 2026

(unaudited)

(In thousands, except par value)		October 2, 2026				January 2, 2026
Assets
Current assets:
Cash and cash equivalents		$	114,689			$	221,930
Accounts receivable, net of allowance for contract losses and doubtful accounts    of $7,784 and $7,478 at October 2, 2026 and January 2, 2026, respectively			211,412				181,507
Prepaid expenses and other current assets			28,405				24,143
Total current assets			354,506				427,580
Property, equipment and leasehold improvements, net of accumulated depreciation and    amortization of $129,688 and $122,072 at October 2, 2026 and January 2, 2026,    respectively			69,900				71,981
Operating lease right-of-use assets			68,208				73,376
Goodwill			8,607				8,607
Deferred income taxes			66,603				67,075
Deferred compensation plan assets			122,620				123,454
Other assets			4,440				5,446
Total assets		$	694,884			$	777,519
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities		$	36,541			$	30,942
Accrued payroll and employee benefits			121,993				121,302
Deferred revenues			18,503				18,868
Operating lease liabilities			6,533				6,890
Total current liabilities			183,570				178,002
Other liabilities			4,431				4,587
Deferred compensation plan liabilities			124,391				128,645
Operating lease liabilities			74,606				75,944
Total liabilities			386,998				387,178
Stockholders’ equity:
Common stock, $0.001 par value; 120,000 shares authorized; 65,707 shares issued    at October 2, 2026 and January 2, 2026			66				66
Additional paid-in capital			392,784				369,747
Accumulated other comprehensive loss
Foreign currency translation adjustments			(2,496	)			(2,290	)
Retained earnings			712,318				668,423
Treasury stock, at cost; 18,154 and 16,087 shares held at October 2, 2026    and January 2, 2026, respectively			(794,786	)			(645,605	)
Total stockholders’ equity			307,886				390,341
Total liabilities and stockholders’ equity		$	694,884			$	777,519

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

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EXPONENT, INC.

Condensed Consolidated Statements of Income

For the Three and Nine Months Ended October 2, 2026 and October 3, 2025

(unaudited)

		Three Months Ended								Nine Months Ended
(In thousands, except per share data)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Revenues:
Revenues before reimbursements		$	153,063			$	137,073			$	453,740			$	407,378
Reimbursements			20,670				10,047				57,908				27,211
Revenues			173,733				147,120				511,648				434,589
Operating expenses:
Compensation and related expenses			90,038				87,726				282,018				261,103
Other operating expenses			13,814				12,655				39,504				36,822
Reimbursable expenses			20,670				10,047				57,908				27,211
General and administrative expenses			7,334				7,654				20,940				18,806
Total operating expenses			131,856				118,082				400,370				343,942
Operating income			41,877				29,038				111,278				90,647
Other income, net:
Interest income, net			668				2,312				3,102				7,370
Miscellaneous income, net			448				7,267				11,718				15,175
Total other income, net			1,116				9,579				14,820				22,545
Income before income taxes			42,993				38,617				126,098				113,192
Income taxes			12,050				10,573				36,191				31,945
Net income		$	30,943			$	28,044			$	89,907			$	81,247
Net income per share:
Basic		$	0.64			$	0.55			$	1.84			$	1.59
Diluted		$	0.64			$	0.55			$	1.83			$	1.58
Shares used in per share computations:
Basic			48,131				50,872				48,891				51,113
Diluted			48,422				51,179				49,195				51,454
Cash dividends declared per common share		$	0.31			$	0.30			$	0.93			$	0.90

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 Nine Months Ended October 2, 2026 and October 3, 2025

(unaudited)

		Three Months Ended								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Net income		$	30,943			$	28,044			$	89,907			$	81,247
Other comprehensive income (loss):
Foreign currency translation    adjustments, net of tax			(118	)			91				(206	)			1,389
Comprehensive income		$	30,825			$	28,135			$	89,701			$	82,636

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

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EXPONENT, INC.

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended October 2, 2026 and October 3, 2025

(unaudited)

		Three and Nine Months Ended October 2, 2026
		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 2, 2026			65,707			$	66			$	369,747			$	(2,290	)		$	668,423				16,087			$	(645,605	)		$	390,341
Employee stock purchase plan			-				-				527				-				-				(11	)			130				657
Amortization of unrecognized stock-   based compensation			-				-				7,823				-				-				-				-				7,823
Purchase of treasury shares			-				-				-				-				-				2,282				(147,468	)			(147,468	)
Foreign currency translation adjustments			-				-				-				(88	)			-				-				-				(88	)
Grant of restricted stock units to settle    accrued bonus			-				-				13,381				-				-				-				-				13,381
Settlement of restricted stock units			-				-				(2,524	)			-				-				(140	)			(2,611	)			(5,135	)
Exercise of stock options			-				-				614				-				-				(42	)			509				1,123
Dividends and dividend equivalent rights			-				-				-				-				(30,982	)			-				-				(30,982	)
Net income			-				-				-				-				58,964				-				-				58,964
Balance at July 3, 2026			65,707			$	66			$	389,568			$	(2,378	)		$	696,405				18,176			$	(795,045	)		$	288,616
Employee stock purchase plan			-				-				208				-				-				(4	)			48				256
Amortization of unrecognized stock-    based compensation			-				-				2,603				-				-				-				-				2,603
Foreign currency translation adjustments			-				-				-				(118	)			-				-				-				(118	)
Exercise of stock options			-				-				405				-				-				(18	)			211				616
Dividends and dividend equivalent rights			-				-				-				-				(15,030	)			-				-				(15,030	)
Net income			-				-				-				-				30,943				-				-				30,943
Balance at October 2, 2026			65,707			$	66			$	392,784			$	(2,496	)		$	712,318				18,154			$	(794,786	)		$	307,886

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

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EXPONENT, INC.

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended October 2, 2026 and October 3, 2025

(unaudited)

		Three and Nine Months Ended October 3, 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			-				-				687				-				-				(11	)			124				811
Amortization of unrecognized stock-    based compensation			-				-				7,279				-				-				-				-				7,279
Purchase of treasury shares			-				-				-				-				-				431				(32,680	)			(32,680	)
Foreign currency translation adjustments			-				-				-				1,298				-				-				-				1,298
Grant of restricted stock units to settle    accrued bonus			-				-				12,179				-				-				-				-				12,179
Settlement of restricted stock units			-				-				(1,583	)			-				-				(103	)			(2,583	)			(4,166	)
Exercise of stock options			-				-				53				-				-				(5	)			47				100
Dividends and dividend equivalent rights			-				-				-				-				(31,316	)			-				-				(31,316	)
Net income			-				-				-				-				53,203				-				-				53,203
Balance at July 4, 2025			65,707			$	66			$	364,304			$	(2,493	)		$	646,038				15,205			$	(580,139	)		$	427,776
Employee stock purchase plan			-				-				239				-				-				(5	)			54				293
Amortization of unrecognized stock-    based compensation			-				-				2,298				-				-				-				-				2,298
Purchase of treasury shares			-				-				-				-				-				568				(40,649	)			(40,649	)
Foreign currency translation adjustments			-				-				-				91				-				-				-				91
Exercise of stock options			-				-				169				-				-				(11	)			133				302
Dividends and dividend equivalent rights			-				-				-				-				(15,294	)			-				-				(15,294	)
Net income			-				-				-				-				28,044				-				-				28,044
Balance at October 3, 2025			65,707			$	66			$	367,010			$	(2,402	)		$	658,788				15,757			$	(620,601	)		$	402,861

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

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EXPONENT, INC.

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended October 2, 2026 and October 3, 2025

(unaudited)

		Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025
Cash flows from operating activities:
Net income		$	89,907			$	81,247
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation and amortization of property, equipment and    leasehold improvements			7,844				7,544
Provision for contract losses and doubtful accounts			3,465				2,097
Stock-based compensation			22,432				18,767
Deferred income tax provision			472				(5,961	)
Changes in operating assets and liabilities:
Accounts receivable			(33,370	)			(22,686	)
Prepaid expenses and other current assets			8,456				3,114
Change in operating leases			3,473				3,057
Accounts payable and accrued liabilities			3,807				3,964
Accrued payroll and employee benefits			(12,992	)			(11,528	)
Deferred revenues			(365	)			(3,467	)
Net cash provided by operating activities			93,129				76,148
Cash flows from investing activities:
Capital expenditures			(5,388	)			(6,703	)
Net cash used in investing activities			(5,388	)			(6,703	)
Cash flows from financing activities:
Payroll taxes for restricted stock units			(5,135	)			(4,166	)
Repurchase of common stock			(146,138	)			(72,712	)
Exercise of stock-based payment awards			2,652				1,506
Dividends and dividend equivalents rights			(46,080	)			(46,652	)
Net cash used in financing activities			(194,701	)			(122,024	)
Effect of foreign currency exchange rates on cash and cash equivalents			(281	)			1,058
Net change in cash and cash equivalents			(107,241	)			(51,521	)
Cash and cash equivalents at beginning of period			221,930				258,901
Cash and cash equivalents at end of period		$	114,689			$	207,380

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

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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 nine months ended October 2, 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 the Company's annual periods beginning January 2, 2027 and interim periods beginning January 1, 2028. The amendments may be applied prospectively, with retrospective application 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								Nine Months Ended
		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering & Other Scientific			68	%			63	%			66	%			64	%
Environmental and Health			12	%			14	%			13	%			15	%
Total time and materials revenues			80	%			77	%			79	%			79	%

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								Nine Months Ended
		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering & Other Scientific			19	%			22	%			20	%			20	%
Environmental and Health			1	%			1	%			1	%			1	%
Total fixed-price revenues			20	%			23	%			21	%			21	%

Deferred revenues represent amounts billed to clients in advance of services provided. During the third quarter of 2026, $7,484,000 of revenues were recognized that were included in the deferred revenue balance at July 3, 2026. During the first nine months of 2026, $10,622,000 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 mark-up on 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 $5,422,000 and $2,578,000 during the third quarter of 2026 and 2025, respectively, and $16,880,000 and $9,259,000 during the first nine months of 2026 and 2025, respectively.

- 10 -

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 nine months ended October 2, 2026 and October 3, 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 certain financial assets and liabilities was determined using the following inputs at October 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)		$	10,834			$	10,834			$	-			$	-
Fixed income trading securities held in deferred    compensation plan (2)			43,840				43,840				-				-
Equity trading securities held in deferred    compensation plan (2)			97,346				97,346				-				-
Total		$	152,020			$	152,020			$	-			$	-
Liabilities
Deferred compensation plan (3)			142,610				142,610				-				-
Total		$	142,610			$	142,610			$	-			$	-

(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 certain 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			$	-			$	-

(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.

- 11 -

(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 October 2, 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 October 2, 2026:

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
(In thousands)		Cost				Gains				Losses				Fair Value
Classified as current assets:
Cash		$	103,855			$	-			$	-			$	103,855
Cash equivalents:
Money market securities			10,834				-				-				10,834
Total cash equivalents			10,834				-				-				10,834
Total cash and cash equivalents		$	114,689			$	-			$	-			$	114,689

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 October 2, 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 October 2, 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 October 2, 2026 and January 2, 2026 approximates their carrying value as reported on the Company’s unaudited condensed consolidated balance sheet.

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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								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Shares used in basic per share computation			48,131				50,872				48,891				51,113
Effect of dilutive common stock options    outstanding			4				71				20				84
Effect of dilutive restricted stock units    outstanding			287				236				284				257
Shares used in diluted per share    computation			48,422				51,179				49,195				51,454

Common stock options to purchase 296,933 and 215,833 shares were excluded from the diluted per share calculation for the three months ended October 2, 2026 and October 3, 2025, respectively, due to their anti-dilutive effect. Common stock options to purchase 296,933 and 175,833 shares were excluded from the diluted per share calculation for the nine months ended October 2, 2026 and October 3, 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 $4,091,000 and $3,042,000 during the three months ended October 2, 2026 and October 3, 2025, respectively. For the nine months ended October 2, 2026 and October 3, 2025, the Company recorded stock-based compensation expense associated with accrued bonus awards of $12,006,000 and $9,189,000, 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 $2,335,000 and $2,123,000 during the three

- 13 -

months ended October 2, 2026 and October 3, 2025, respectively. The Company recorded stock-based compensation expense associated with the unvested restricted stock unit awards of $9,217,000 and $8,438,000 during the nine months ended October 2, 2026 and October 3, 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 $176,000 during the three months ended October 2, 2026 and October 3, 2025, respectively. The Company recorded stock-based compensation expense associated with stock option grants of $1,209,000 and $1,139,000 during the nine months ended October 2, 2026 and October 3, 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 October 2, 2026 and January 2, 2026, the invested amounts under the plans totaled $141,186,000 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 October 2, 2026 and January 2, 2026, vested amounts due under the plans totaled $142,610,000 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 sheets. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended October 2, 2026, the Company recognized additional compensation expense of $159,000 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 October 3, 2025, the Company recognized additional compensation expense of $7,005,000 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 nine months ended October 2, 2026, the Company recognized additional compensation expense of $10,804,000 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 nine months ended October 3, 2025, the Company recognized additional compensation

- 14 -

expense of $14,632,000 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.

Note 7: Supplemental Cash Flow Information

The following is supplemental disclosure of cash flow information:

		Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025
Cash paid during period:
Income taxes		$	34,493			$	32,367
Non-cash investing and financing activities:
Vested stock unit awards issued to settle accrued bonuses		$	13,381			$	12,179
Right-of-use asset obtained in exchange for operating lease obligations		$	1,690			$	3,540
Accrual for capital expenditures as of period end		$	617			$	653
Excise tax accrued on repurchases of common stock		$	1,330			$	617

Note 8: Accounts Receivable, Net

At October 2, 2026 and January 2, 2026, accounts receivable, net, were comprised of the following:

		October 2,				January 2,
(In thousands)		2026				2026
Billed accounts receivable		$	144,728			$	134,700
Unbilled accounts receivable			74,468				54,285
Allowance for contract losses and doubtful accounts			(7,784	)			(7,478	)
Total accounts receivable, net		$	211,412			$	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			3,465
Write-offs			(3,159	)
Balance at October 2, 2026		$	7,784

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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. The Company's Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of the Company's reportable segments, but does not review total assets in evaluating segment performance and capital allocation.

Segment information for the three and nine months ended October 2, 2026 and October 3, 2025 follows:

Revenues

		Three Months Ended								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering and Other Scientific		$	150,098			$	124,016			$	440,339			$	367,130
Environmental and Health			23,635				23,104				71,309				67,459
Total revenues		$	173,733			$	147,120			$	511,648			$	434,589

Compensation and related expenses

		Three Months Ended								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering and Other Scientific		$	64,224			$	58,040			$	192,144			$	172,202
Environmental and Health			12,881				12,017				38,723				36,205
Total segment compensation and related expenses			77,105				70,057				230,867				208,407
Corporate compensation and related expenses			12,933				17,669				51,151				52,696
Total compensation and related expenses		$	90,038			$	87,726			$	282,018			$	261,103

Operating Income

		Three Months Ended								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering and Other Scientific		$	52,444			$	45,829			$	152,399			$	133,883
Environmental and Health			8,244				8,429				24,254				24,147
Total segment operating income			60,688				54,258				176,653				158,030
Corporate operating expense			(18,811	)			(25,220	)			(65,375	)			(67,383	)
Total operating income		$	41,877			$	29,038			$	111,278			$	90,647

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								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering and Other Scientific		$	562			$	691			$	1,669			$	1,472
Environmental and Health			79				17				181				118
Total segment capital expenditures			641				708				1,850				1,590
Corporate capital expenditures			1,056				2,431				3,913				5,191
Total capital expenditures		$	1,697			$	3,139			$	5,763			$	6,781

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								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Engineering and Other Scientific		$	1,952			$	1,844			$	5,780			$	5,506
Environmental and Health			50				52				143				148
Total segment depreciation and    amortization			2,002				1,896				5,923				5,654
Corporate depreciation and amortization			649				636				1,921				1,890
Total depreciation and amortization		$	2,651			$	2,532			$	7,844			$	7,544

One client comprised 11% of the Company’s revenues during the three months ended October 2, 2026. One client comprised 10% of the Company's revenues during the nine months ended October 2, 2026. No other client comprised more than 10% of the Company’s revenues during the three and nine months ended October 2, 2026. No single client comprised more than 10% of the Company’s revenues during the three and nine months ended October 3, 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 October 2, 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, 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 $380,000 and $226,000 was included in other income, net, for the three months ended October 2, 2026 and October 3, 2025, respectively. Rental income of $1,109,000 and $702,000 was included in other income, net, for the nine months ended October 2, 2026 and October 3, 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								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Operating lease cost		$	3,303			$	3,091			$	9,754			$	9,199
Variable lease cost			382				377				1,418				1,093
Short-term lease cost			266				434				813				1,171

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

		Three Months Ended								Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Cash paid for amounts included in the    measurement of operating lease    liabilities		$	2,143			$	1,868			$	7,374			$	6,149

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

		October 2, 2026		October 3, 2025
Weighted Average Remaining Lease Term		12.8 years		13.1 years
Weighted Average Discount Rate		6.4%		6.3%

Maturities of operating lease liabilities as of October 2, 2026:

		Operating
(In thousands)		Leases
2026 (excluding the nine months ended October 2, 2026)		$	2,095
2027			8,631
2028			11,416
2029			9,955
2030			9,394
Thereafter			80,464
Total lease payments			121,955
Less imputed interest			(40,816	)
Total lease liability		$	81,139

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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 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 October 29, 2026, the Company’s Board of Directors announced a cash dividend of $0.31 per share of the Company’s common stock, payable December 18, 2026, to stockholders of record as of December 4, 2026.

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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 nine months ended October 2, 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 third quarter of 2026 increased 18% to $173,733,000 as compared to $147,120,000 during the same period last year. Revenues before reimbursements for the third quarter of 2026 increased 12% to $153,063,000 as compared to $137,073,000 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. Reactive work also grew, with increased dispute-related and failure analysis demand in the chemical, consumer products, and transportation industries.

- 20 -

Net income increased 10% to $30,943,000 during the third quarter of 2026 as compared to $28,044,000 during the same period last year. Diluted earnings per share increased during the third quarter of 2026 to $0.64 per share as compared to $0.55 in the same period last year. The increase in net income was primarily due to the 12% increase in revenues before reimbursements.

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 October 2, 2026

During the third quarter of 2026, billable hours increased 8% to 405,000 as compared to 376,000 during the same period last year. Our utilization increased to 77% during the third quarter of 2026 as compared to 74% during the same period last year. Average technical full-time equivalent employees increased by 4% to 1,016 during the third quarter of 2026 as compared to 976 during the same period last year due to our recruiting and retention efforts.

Three Months Ended October 2, 2026 compared to Three Months Ended October 3, 2025

Revenues

		Three Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Engineering and Other Scientific		$	150,098			$	124,016				21.0	%
Percentage of total revenues			86.4	%			84.3	%
Environmental and Health			23,635				23,104				2.3	%
Percentage of total revenues			13.6	%			15.7	%
Total revenues		$	173,733			$	147,120				18.1	%

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 quarter was driven by user research studies in consumer electronics along with reactive engagements across the chemical, consumer products, and transportation industries. During the third quarter of 2026, billable hours for this segment increased by 10% to 334,000 as compared to 305,000 during the same period last year. Utilization for this segment increased to 79% during the third quarter of 2026 as compared to 76% during the same period last year. Average technical full-time equivalent employees in this segment increased 5% to 812 during the third quarter of 2026 as compared to 775 for the same period last year.

The increase in revenues for our Environmental and Health segment was due to an increase in billing rates. Billable hours for this segment were 71,000 during the third quarter of both 2026 and 2025. Utilization for this segment decreased to 67% during the third quarter of 2026 as compared to 68% during the same period last year. Average technical full-time equivalent employees in this segment increased 1% to 204 as compared to 201 during the same period last year.

Compensation and Related Expenses

		Three Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Compensation and related expenses		$	90,038			$	87,726				2.6	%
Percentage of total revenues			51.8	%			59.6	%

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The increase in compensation and related expenses during the third quarter of 2026 was due to an increase in payroll expense, fringe benefits and an increase in bonus expense partially offset by a change in the value of assets associated with our deferred compensation plan. During the third quarter of 2026, payroll expense increased by $4,498,000 and fringe benefits increased by $1,111,000 due to the impact of our annual salary increase and an increase in average technical full-time equivalent employees. During the third quarter of 2026, bonus expense increased by $3,368,000 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 third quarter of 2026, deferred compensation expense decreased by $6,846,000 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. This decrease consisted of an increase in the value of plan assets of $159,000 during the third quarter of 2026 as compared to an increase in the value of plan assets of $7,005,000 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)		October 2, 2026				October 3, 2025				Percent Change
Other operating expenses		$	13,814			$	12,655				9.2	%
Percentage of total revenues			8.0	%			8.6	%

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 third quarter of 2026 was primarily due to an increase in computer-related expenses of $527,000 and an increase in facilities-related expenses of $405,000. The increases in computer-related expenses and facilities-related 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)		October 2, 2026				October 3, 2025				Percent Change
Reimbursable expenses		$	20,670			$	10,047				105.7	%
Percentage of total revenues			11.9	%			6.8	%

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)		October 2, 2026				October 3, 2025				Percent Change
General and administrative expenses		$	7,334			$	7,654				(4.2	)%
Percentage of total revenues			4.2	%			5.2	%

The decrease in general and administrative expenses was primarily due to a decrease in travel and meals of $581,000 partially offset by several individually insignificant increases. The decrease in travel and meals was primarily due to a company-wide principals' meeting held during the third quarter of 2026 which was smaller than the company-wide managers' meeting we held during the third quarter of 2025. We expect general and administrative expenses to increase as we add new talent and expand our business development and staff development initiatives.

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Operating Income

		Three Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Engineering and Other Scientific		$	52,444			$	45,829				14.4	%
Environmental and Health			8,244				8,429				(2.2	)%
Total segment operating income			60,688				54,258				11.9	%
Corporate operating expense			(18,811	)			(25,220	)			(25.4	)%
Total operating income		$	41,877			$	29,038				44.2	%

The increase in operating income for our Engineering and Other Scientific segment during the third quarter of 2026 as compared to the same period last year was due to an increase in utilization. The decrease in operating income for our Environmental and Health segment was due to a decrease in utilization during the third quarter of 2026 as compared to the same period last year.

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 expense during the third quarter of 2026 as compared to the same period last year was primarily due to a decrease in deferred compensation expense. During the third quarter of 2026, deferred compensation expense decreased by $6,846,000, 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. This decrease consisted of an increase in the value of plan assets of $159,000 during the third quarter of 2026 as compared to an increase in the value of plan assets of $7,005,000 during the same period last year.

Other Income, Net

		Three Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Other income / (loss), net		$	1,116			$	9,579				(88.3	)%
Percentage of total revenues			0.6	%			6.5	%

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 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 third quarter of 2026, deferred compensation expense decreased by $6,846,000 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. This decrease consisted of an increase in the value of plan assets of $159,000 during the third quarter of 2026 as compared to an increase in the value of plan assets of $7,005,000 during the same period last year. During the third quarter of 2026, interest income decreased by $1,644,000 due to lower average cash equivalent balances.

Income Taxes

		Three Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Income taxes		$	12,050			$	10,573				14.0	%
Percentage of total revenues			6.9	%			7.2	%
Effective tax rate			28.0	%			27.4	%

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The increase in income tax expense was due to an increase in pre-tax income. The tax impact associated with stock-based awards was immaterial in both the third quarters of 2026 and 2025.

Nine Months Ended October 2, 2026 compared to Nine Months Ended October 3, 2025

Revenues

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Engineering and Other Scientific		$	440,339			$	367,130				19.9	%
Percentage of total revenues			86.1	%			84.5	%
Environmental and Health			71,309				67,459				5.7	%
Percentage of total revenues			13.9	%			15.5	%
Total revenues		$	511,648			$	434,589				17.7	%

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 nine months of 2026 was driven by user research activity, spanning health applications, dynamic and unstructured real-world environments, and sensory perception. Dispute-related services involving chemical facilities, consumer products and advanced transportation technologies also drove growth in the first nine months of 2026, as clients rely on us in critical, high-stakes situations. During the first nine months of 2026, billable hours for this segment increased by 10% to 983,000 as compared to 896,000 during the same period last year. Utilization for this segment increased to 78% during the first nine months of 2026 as compared to 75% during the same period last year. Average technical full-time equivalent employees in this segment increased 6% to 813 during the first nine months of 2026 as compared to 764 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 nine months of 2026, billable hours for this segment decreased by 2% to 211,000 as compared to 215,000 during the same period last year. Utilization in this segment decreased to 67% during the first nine months of 2026 as compared to 68% during the same period last year. Average technical full-time equivalent employees in this segment decreased by 1% to 201 during the first nine months of 2026 as compared to 202 during the same period last year.

Compensation and Related Expenses

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Compensation and related expenses		$	282,018			$	261,103				8.0	%
Percentage of total revenues			55.1	%			60.1	%

The increase in compensation and related expenses during the first nine months of 2026 was due to increases in payroll expense, fringe benefits, and bonus expense partially offset by the change in the value of assets associated with our deferred compensation plans. During the first nine months of 2026, payroll expense increased by $13,506,000 and fringe benefits increased by $1,376,000 due to the impact of our annual salary adjustments and an increase in average technical full-time equivalent employees. During the first nine months of 2026, bonus expense increased by $9,297,000 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 nine months of 2026, deferred compensation expense decreased by $3,828,000 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. This decrease consisted of an increase in the value of plan assets of $10,804,000 during the first nine months of 2026 as compared to an increase in the value of plan assets of $14,632,000 during the same period last year.

Other Operating Expenses

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		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Other operating expenses		$	39,504			$	36,822				7.3	%
Percentage of total revenues			7.7	%			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 first nine months of 2026 was primarily due to an increase in computer-related expenses of $1,135,000, an increase in facilities-related expenses of $1,062,000 and an increase in depreciation expense of $301,000. These increases 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

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Reimbursable expenses		$	57,908			$	27,211				112.8	%
Percentage of total revenues			11.3	%			6.3	%

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

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
General and administrative expenses		$	20,940			$	18,806				11.3	%
Percentage of total revenues			4.1	%			4.3	%

The increase in general and administrative expenses was primarily due to an increase in personnel expenses of $872,000, an increase in marketing and promotion expense of $321,000 and an increase in other professional services of $314,000. The increase in personnel expenses was due to an increase in relocation expenses. The increase in marketing and promotion expenses was due to higher spending on business development initiatives. We expect general and administrative expenses to increase as we expand our business development and staff development initiatives.

Operating Income

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Engineering and Other Scientific		$	152,399			$	133,883				13.8	%
Environmental and Health			24,254				24,147				0.4	%
Total segment operating income			176,653				158,030				11.8	%
Corporate operating expense			(65,375	)			(67,383	)			(3.0	)%
Total operating income		$	111,278			$	90,647				22.8	%

The increase in operating income for our Engineering and Other Scientific segment during the first nine months of 2026 as compared to the same period last year 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, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with

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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 decrease in corporate operating expense during the first nine months of 2026 as compared to the same period last year was primarily due to a decrease in deferred compensation expense partially offset by an increase in the costs associated with our human resources, legal, finance, information technology and business development groups. During the first nine months of 2026, deferred compensation expense decreased by $3,828,000, 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. This decrease consisted of an increase in the value of plan assets of $10,804,000 during the first nine months of 2026 as compared to an increase in the value of plan assets of $14,632,000 during the same period last year.

Other Income, Net

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Other income, net		$	14,820			$	22,545				(34.3	)%
Percentage of total revenues			2.9	%			5.2	%

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 decrease in interest income of $4,268,000 and a change in the value of assets associated with our deferred compensation plans. The decrease in interest income was due to lower average cash equivalent balances. During the first nine months of 2026, deferred compensation expense decreased by $3,828,000 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. This decrease consisted of an increase in the value of plan assets of $10,804,000 during the first nine months of 2026 as compared to an increase in the value of plan assets of $14,632,000 during the same period last year.

Income Taxes

		Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				Percent Change
Income taxes		$	36,191			$	31,945				13.3	%
Percentage of total revenues			7.1	%			7.4	%
Effective tax rate			28.7	%			28.2	%

During the first nine months of 2026, we realized a negative tax impact associated with stock-based awards of $754,000 as compared to a negative tax impact of $354,000 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 nine months of 2026 as compared to the same period last year. Excluding the negative tax impact, the effective tax rate would have been 28.1% during the first nine months of 2026 as compared to 27.9% during the same period last year.

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LIQUIDITY AND CAPITAL RESOURCES

We believe our existing balances of cash, cash equivalents, 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.

		Nine Months Ended
(In thousands)		October 2, 2026				October 3, 2025
Net cash provided by operating activities		$	93,129			$	76,148
Net cash used in investing activities			(5,388	)			(6,703	)
Net cash used in financing activities			(194,701	)			(122,024	)

We financed our business during the first nine months of 2026 through available cash. As of October 2, 2026, our cash and cash equivalents were $114,689,000 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 nine months of 2026, we repurchased $146,138,000 of our common stock as compared to $72,712,000 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 uses of cash from operating activities are for employee-related expenditures, leased facilities, taxes, and general operating expenses.

The decrease in net cash used in investing activities during the first nine months of 2026, as compared to the same period last year, was due to a decrease in capital expenditures.

The increase in net cash used in financing activities during the first nine months of 2026, as compared to the same period last year was due to an increase in repurchases of our common stock. During the first nine months of 2026, we repurchased $146,138,000 of our common stock as compared to $72,712,000 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, Hong Kong, Switzerland, and the United Kingdom under non-cancellable operating lease arrangements that expire at various dates through 2043. 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 $124,391,000 were recorded as a deferred compensation plan liability on our unaudited condensed consolidated balance sheet at October 2, 2026. Vested amounts due under the plans of $18,219,000 were recorded as an accrued payroll and employee benefits on our unaudited condensed consolidated balance sheet at October 2, 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 October 2, 2026, invested amounts under the plans of $122,620,000 were recorded as a non-current asset on our unaudited condensed consolidated balance sheet. As of October 2, 2026, invested amounts under the plans of $18,566,000 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

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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 accounting principles generally accepted in the United States of America (“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, 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 nine months ended October 2, 2026 and October 3, 2025:

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

The following table shows EBITDA (determined as shown in the reconciliation table above) as a percentage of revenue before reimbursement, for the three and nine months ended October 2, 2026 and October 3, 2025:

		Three Months Ended								Nine Months Ended
(In thousands, except percentages)		October 2, 2026				October 3, 2025				October 2, 2026				October 3, 2025
Revenues before reimbursements		$	153,063			$	137,073			$	453,740			$	407,378
EBITDA		$	44,976			$	38,837			$	130,840			$	113,366
EBITDA as a % of revenues before    reimbursements			29.4	%			28.3	%			28.8	%			27.8	%

The increase in EBITDA as a percentage of revenues before reimbursements during the three and nine months ended October 2, 2026 as compared to the same periods last year was primarily due to an increase in revenues before reimbursements 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 October 2, 2026, we had net assets of approximately $15.3 million with a functional currency of the British Pound, net assets of approximately $7.5 million with a functional currency of the Hong Kong Dollar, net assets of approximately $3.2 million with a functional currency of the Chinese Yuan and net assets of approximately $1.4 million with a functional currency of the Singapore Dollar associated with our operations in the United Kingdom, Hong Kong, China 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 October 2, 2026, we had net assets denominated in the non-functional currency of approximately $5.0 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 October 2, 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 October 2, 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

None.

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 third quarter ended October 2, 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 With Embedded Linkbase Documents
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: November 6, 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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