EXPO · Exponent, Inc.

Exponent delivered a strong first quarter, with total revenues increasing 14% to $166.3 million and revenues before reimbursements up 10% to $151.8 million. Growth was driven by proactive engagements, including user research studies for consumer electronics clients integrating AI, and risk management work for utilities evaluating asset performance under extreme weather. Reactive engagements also contributed, with increased dispute-related and failure analysis demand across construction, energy, and medical devices. Net income rose to $29.6 million ($0.59 per diluted share) from $26.7 million ($0.52) in the prior year. EBITDA margin improved to 28.4% of net revenues from 27.3%, reflecting operating leverage. The engineering and other scientific segment (85% of revenues before reimbursements) grew 12%, while the environmental and health segment (15%) grew 2%. Management highlighted 5% year-over-year headcount growth, 76% utilization, and strong rate realization. For Q2 FY2026, Exponent expects high-single digit revenue growth and EBITDA margin of 27.0%-27.8%. Full-year guidance remains unchanged: high-single digit revenue growth and EBITDA margin of 27.6%-28.1%. The company also declared a $0.31 quarterly dividend and authorized an additional $50 million for share repurchases, underscoring confidence in its cash generation and capital allocation strategy.