Exponent (EXPO) investor relations material

Executive summary

• Delivered double-digit year-over-year growth in both revenues and earnings for Q2 2026, driven by strong demand for specialized expertise in both proactive and reactive engagements across industries, particularly in AI-enabled products and risk management.

• Demonstrated resilience and growth through a balanced mix of reactive (disputes, failure analysis) and proactive (user research, risk management) engagements, leveraging multidisciplinary expertise.

• Maintained a compelling investment thesis with profitable organic growth, a healthy balance sheet, and robust cash flow generation.

Financial highlights

• Q2 2026 total revenues rose 21% to $171.6 million; revenues before reimbursements up 12% to $148.9 million year-over-year; net income grew 11% to $29.4 million ($0.60/diluted share); EBITDA increased 16% to $42.7 million (28.7% margin).

• First half 2026 revenues before reimbursements grew 11% to $300.7 million; net income reached $59.0 million ($1.19/diluted share).

• FY25 revenue reached $582 million, up from $559 million in FY24; EBITDA margin was 28%.

• Free cash flow for FY25 was $138 million, with dividends paid totaling $62 million.

• Billable hours up 8% to 390,000; average technical full-time employees up 6% to 1,012; utilization rate improved to 74%-75%.

Outlook and guidance

• Q3 2026 net revenues expected to grow 8%-10% year-over-year; EBITDA margin projected at 28.0%-28.5%.

• Full-year 2026 guidance raised: net revenues to grow 9%-10%, EBITDA margin 27.8%-28.1%.

• Average technical FTEs expected to increase 4%-5% for Q3 and 4.5%-5% for the year; utilization to remain strong.

• Stock-based compensation for 2026 forecasted at $27.9-$28.4 million; capital expenditures expected at $12-$14 million.

• Positioned to capitalize on global trends in safety, health, and environment, with continued focus on high-growth areas.