Exponent Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 1 raised, 1 new, 2 kept. The quarter’s numbers.

Key takeaways

Revenue before reimbursements grew 10%: Revenues before reimbursements rose to $151.8 million from $137.4 million. Total revenues rose 14% to $166.3 million, with reimbursements of $14.5 million against $8.1 million. Source
Engineering segment grew 12%: Engineering and other scientific revenues before reimbursements rose 12% from the prior year period. Source
Proactive work drove growth: Proactive engagements included user research for consumer electronics clients integrating AI into devices, and utility risk management for asset performance under extreme weather. Source
EBITDA margin rose to 28.4%: EBITDA was $43.1 million, or 28.4% of net revenues, against $37.5 million, or 27.3%, a year earlier. Stock-based compensation was $9.1 million. Source
Repurchase program raised by $50 million: The Board approved a $50 million increase to the current stock repurchase program. Source
Second-quarter revenue growth guided: For the second quarter against a year earlier, revenues before reimbursements are guided to grow in the high-single digits. Source
Full-year guidance unchanged: Full-year fiscal 2026 guidance is kept at high-single digit revenue growth and 27.6% to 28.1% EBITDA margin, as in the prior release. Source
John Pye leadership role: Management described John Pye as bringing visionary leadership and a track record of innovation, with a key role in advancing capabilities. Source

“Exponent delivered double-digit growth in revenues and earnings during the first quarter, reflecting the strength of our multidisciplinary portfolio and increased demand for our specialized expertise across industries”
Dr. Catherine Corrigan, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
EBITDA as % of revenues before reimbursements Source	Second quarter of fiscal 2026	27.0% to 27.8%	New
EBITDA as % of revenues before reimbursements Source	Full fiscal 2026 vs fiscal 2025	27.6% to 28.1%	Kept
Stock repurchase program Source	Current program	$50 million increase	Raised
Quarterly cash dividend Source	Payment on June 18, 2026	$0.31	Kept

What changed from last quarter

New guidance: Second-quarter guidance is new; the prior release covered the first quarter and the full year. Source
Guidance kept: Full-year fiscal 2026 guidance is kept, as stated in the prior release. Source
Ended: First-quarter guidance from the prior release covered the quarter now reported.
New: The Board approved a $50 million increase to the stock repurchase program. Source
New: Leadership changes: John Pye and Eric Anderson in new roles, and Rich Schlenker nominated to the Board. Source

Results and growth drivers

Revenue before reimbursements grew 10%: Revenues before reimbursements rose to $151.8 million from $137.4 million. Total revenues rose 14% to $166.3 million, with reimbursements of $14.5 million against $8.1 million. Source
Net income and diluted EPS rose: Net income was $29.6 million, or $0.59 per diluted share, against $26.7 million, or $0.52 a year earlier. Diluted shares used were 50.1 million, against 51.7 million. Source
Fourth-quarter growth had been 4.5%: The prior release reported revenues before reimbursements up 4.5% in the 13-week fourth quarter of 2025.

Segments and end markets

Engineering segment is 85% of revenue: The engineering and other scientific segment made up 85% of revenues before reimbursements in the first quarter. The environmental and health segment made up 15%. Source
Engineering segment grew 12%: Engineering and other scientific revenues before reimbursements rose 12% from the prior year period. Source
Environmental and health grew 2%: Environmental and health revenues before reimbursements rose 2%, primarily from regulatory consulting in the chemical industry. Source

“We are encouraged by the market opportunities and remain confident in the long-term growth trajectory of the business.”
Richard Schlenker, Executive Vice President and Chief Financial Officer

Growth drivers and engagement mix

Proactive work drove growth: Proactive engagements included user research for consumer electronics clients integrating AI into devices, and utility risk management for asset performance under extreme weather. Source
Reactive dispute and failure work grew: Reactive work also grew, with more dispute-related and failure analysis demand across construction projects, energy facilities and medical devices. Source
AI integration cited as demand driver: Management said AI and other advanced technologies in physical products and performance-critical systems are driving more reliance on Exponent’s expertise. Source

Demand, staffing and utilization

Headcount up 5%, utilization at 76%: The CFO cited 5% year-over-year headcount growth, 76% utilization and rate realization as drivers of growth. Source
Energy and infrastructure trends cited: Management said trends in energy demand, infrastructure risk and innovation continue to support demand for the company's technical capabilities. Source
Positioning as AI reaches physical world: Management described Exponent as well positioned as innovation accelerates and systems grow more complex, particularly as AI embeds in the physical world. Source

“These dynamics continue to drive demand for our differentiated multidisciplinary expertise, independent evaluation, and trusted insight.”
Dr. Catherine Corrigan, President and Chief Executive Officer

Costs, margins and tax

EBITDA margin rose to 28.4%: EBITDA was $43.1 million, or 28.4% of net revenues, against $37.5 million, or 27.3%, a year earlier. Stock-based compensation was $9.1 million. Source
Compensation expense rose: Compensation and related expenses were $91.4 million against $75.9 million, and operating income was $41.4 million against $44.4 million. Source
Tax rate rose to 30.2%: The share-based award tax impact was negative $0.9 million, against $0.5 million a year earlier. The consolidated tax rate was 30.2%, against 29.4%. Source

Capital, cash and shareholder returns

Cash closed at $118.6 million: The company paid $16.6 million in dividends and repurchased $78.8 million of stock, ending the quarter with $118.6 million cash, down from $221.9 million at January 2, 2026. Source
Quarterly dividend held at $0.31: The quarterly cash dividend is $0.31, the amount increased from $0.30 in the prior release.
Repurchase program raised by $50 million: The Board approved a $50 million increase to the current stock repurchase program. Source
Remaining repurchase capacity $17.7 million: Separately, $17.7 million was available for repurchases as of April 3, 2026, in addition to the increase. Source

Guidance for second quarter and year

Second-quarter revenue growth guided: For the second quarter against a year earlier, revenues before reimbursements are guided to grow in the high-single digits. Source
Second-quarter EBITDA margin range: EBITDA is guided to 27.0% to 27.8% of revenues before reimbursements for the second quarter. Source
Full-year guidance unchanged: Full-year fiscal 2026 guidance is kept at high-single digit revenue growth and 27.6% to 28.1% EBITDA margin, as in the prior release. Source

Leadership changes

John Pye leadership role: Management described John Pye as bringing visionary leadership and a track record of innovation, with a key role in advancing capabilities. Source
Eric Anderson leadership role: Management said Eric Anderson adds financial and operational expertise and an understanding of the business and strategy. Source
Schlenker continues, nominated to Board: Rich Schlenker continues as Executive Vice President and has been nominated for election to the Board of Directors. Source

Coming up, as management said on 30 April 2026

Dividend payment June 18, 2026: The $0.31 quarterly cash dividend is to be paid on June 18, 2026. Source
Board election date not given: The company gave no date for the election of Rich Schlenker to the Board of Directors. Source

Figures management reported

Figure	Reported
Headcount growth, year over year Source	5%
Utilization Source	76%
Consultants Source	950+

Earlier plans management reported on

Not stated: Management referred to maintaining its full-year guidance, which the release restates. Source
Not stated: Management reiterated its intent to keep paying quarterly dividends. Source
Met: The prior release said the company executed its plan to grow headcount, which was up about 4% for the year.
Not stated: The prior release said the company expected accelerated year-over-year growth in 2026.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Exponent Reports First Quarter 2026 Financial Results

MENLO PARK, Calif., April 30, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the first quarter of fiscal year 2026 ended April 3, 2026.

“Exponent delivered double-digit growth in revenues and earnings during the first quarter, reflecting the strength of our multidisciplinary portfolio and increased demand for our specialized expertise across industries,” stated Dr. Catherine Corrigan, President and Chief Executive Officer. “Growth was driven by proactive engagements, including user research studies for consumer electronics clients integrating AI into their devices, as well as risk management work for utility clients evaluating asset performance under extreme weather conditions. Reactive engagements also contributed to our growth, with increased dispute-related and failure analysis demand across construction projects, energy facilities, and medical devices.

“The integration of AI and other advanced technologies into physical products and performance-critical systems, combined with rising expectations for safety and reliability, is driving increased reliance on Exponent’s specialized expertise. At the same time, trends in energy demand, infrastructure risk, and innovation continue to support demand for our deep technical capabilities, reinforcing our essential role in helping clients navigate complex, high-stakes decisions,” Dr. Corrigan continued.

First Quarter Financial Results

Total revenues and revenues before reimbursements for the first quarter of 2026 increased 14% to $166.3 million and 10% to $151.8 million, respectively, as compared to $145.5 million and $137.4 million in the first quarter of 2025.

Net income increased to $29.6 million, or $0.59 per diluted share, in the first quarter of 2026, as compared to $26.7 million, or $0.52 per diluted share, in the same period of 2025. During the quarter, Exponent realized a negative tax impact associated with share-based awards of $0.9 million as compared to $0.5 million in the first quarter of 2025. Inclusive of the negative tax impact, Exponent's consolidated tax rate was 30.2% in the first quarter, as compared to 29.4% for the same period in 2025.

EBITDA increased to $43.1 million, or 28.4% of net revenues, in the first quarter of 2026, as compared to $37.5 million, or 27.3% of net revenues in the first quarter of 2025.

During the first quarter of 2026, Exponent paid $16.6 million in dividends, repurchased $78.8 million of common stock, and closed the period with $118.6 million in cash and cash equivalents.

In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on June 18, 2026, and reiterated its intent to continue to pay quarterly dividends. Additionally, Exponent’s Board of Directors approved an increase in the current stock repurchase program of $50 million. This is in addition to the $17.7 million available for repurchases as of April 3, 2026.

Business Overview

Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the first quarter of 2026. Revenues before reimbursements in this segment increased 12% in the first quarter, compared to the prior year period. Growth during the quarter was driven by user research studies in consumer electronics and risk management in the utilities sector, along with reactive engagements in the energy and life sciences sectors.

Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the first quarter. Revenues before reimbursements in this segment increased 2% in the first quarter, compared to the prior year period. Growth in this segment was primarily driven by Exponent’s regulatory consulting in the chemical industry.

Business Outlook

“Exponent delivered a strong first quarter, with 5% year-over-year headcount growth, 76% utilization, and strong rate realization driving growth,” commented Richard Schlenker, Executive Vice President and Chief Financial Officer. “We are encouraged by the market opportunities and remain confident in the long-term growth trajectory of the business.”

For the second quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:

Revenues before reimbursements to grow in the high-single digits; and,
EBITDA to be 27.0% to 27.8% of revenues before reimbursements.

For the full fiscal year 2026 as compared to fiscal year 2025, Exponent is maintaining its guidance and anticipates:

Revenues before reimbursements to grow in the high-single digits; and,
EBITDAto be 27.6% to 28.1% of revenues before reimbursements.

“Exponent is well positioned to support the evolving needs of our clients as innovation accelerates and systems grow more complex, particularly as AI is increasingly embedded in the physical world,” Dr. Corrigan said. “These dynamics continue to drive demand for our differentiated multidisciplinary expertise, independent evaluation, and trusted insight.

“Our recent leadership evolution further strengthens our ability to capitalize on these opportunities,” Dr. Corrigan continued. John Pye brings visionary leadership and a proven track record of innovation, playing a key role in advancing our capabilities while remaining firmly grounded in the technical rigor and independence that define Exponent. Eric Anderson adds deep financial and operational expertise, along with a strong understanding of our business and strategy. Rich Schlenker will continue to serve as Executive Vice President and has been nominated for election to the Board of Directors. Supported by our exceptional talent and distinct position in the marketplace, Exponent is well positioned to build on our momentum and deliver long-term value for our clients and shareholders.”

Today's Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Thursday, April 30, 2026, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company's website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (855) 669-9658 or (412) 317-0088 and entering passcode 4146822#.

Use of non-GAAP Financial Measures

EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.

Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.

About Exponent

Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.

Exponent's consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent's offices in North America, Asia, and Europe. Exponent's consultants, laboratories, databases, and computing resources work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward.

Exponent may be reached at (888) 656-EXPO, info@exponent.com, or www.exponent.com.

Forward Looking Statements

Forward-looking statements notice

This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.

Source: Exponent, Inc.

	Quarters Ended
	April 3,	April 4,
	2026	2025
EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Quarters Ended April 3, 2026 and April 4, 2025
(unaudited)
(in thousands, except per share data)
Revenues
Revenues before reimbursements	$151,817	$137,437
Reimbursements	14,486	8,070
Revenues	166,303	145,507
Operating expenses
Compensation and related expenses	91,409	75,903
Other operating expenses	12,825	12,095
Reimbursable expenses	14,486	8,070
General and administrative expenses	6,204	5,007
Total operating expenses	124,924	101,075
Operating income	41,379	44,432
Other income
Interest income, net	1,718	2,714
Miscellaneous income (expense), net	(758)	(9,386)
	960	(6,672)
Income before income taxes	42,339	37,760
Income taxes	12,770	11,110
Net income	$29,569	$26,650
Net income per share:
Basic	$0.59	$0.52
Diluted	$0.59	$0.52
Shares used in per share computations:
Basic	49,790	51,283
Diluted	50,119	51,650

	April 3,	January 2,
	2026	2026
EXPONENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
April 3, 2026 and January 2, 2026
(unaudited)
(in thousands)
Assets
Current assets:
Cash and cash equivalents	$118,553	$221,930
Accounts receivable, net	197,336	181,507
Prepaid expenses and other assets	24,999	24,143
Total current assets	340,888	427,580
Property, equipment and leasehold improvements, net	71,875	71,981
Operating lease right-of-use asset	70,451	73,376
Goodwill	8,607	8,607
Other assets	195,560	195,975
Total assets	$687,381	$777,519
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$37,354	$30,942
Accrued payroll and employee benefits	82,561	121,302
Deferred revenues	15,568	18,868
Operating lease liability	6,715	6,890
Total current liabilities	142,198	178,002
Other liabilities	132,523	133,232
Operating lease liability	74,323	75,944
Total liabilities	349,044	387,178
Stockholders' equity:
Common stock	66	66
Additional paid-in capital	386,329	369,747
Accumulated other comprehensive loss	(2,571)	(2,290)
Retained earnings	682,013	668,423
Treasury stock, at cost	(727,500)	(645,605)
Total stockholders' equity	338,337	390,341
Total liabilities & stockholders' equity	$687,381	$777,519

	Quarters Ended
	April 3,	April 4,
	2026	2025
EXPONENT, INC.
EBITDA and EBITDAS (1)
For the Quarters Ended April 3, 2026 and April 4, 2025
(unaudited)
(in thousands)
Net Income	$29,569	$26,650
Add back (subtract):
Income taxes	12,770	11,110
Interest income, net	(1,718)	(2,714)
Depreciation and amortization	2,515	2,492
EBITDA (1)	43,136	37,538
Stock-based compensation	9,058	8,179
EBITDAS (1)	$52,194	$45,717
(1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.