Exponent (EXPO) investor relations material

Executive summary

• Q3 total revenue increased 18% to $173,733,000; revenue before reimbursements rose 12% to $153,063,000, with net income up 10% to $30,943,000.

• User research and reactive dispute and failure-analysis work supported growth across chemical, consumer-products and transportation industries.

• FY26 revenue-before-reimbursements growth and EBITDA margin guidance increased to 10%-11% and 28.0%-28.3%, respectively.

Financial highlights

• Q3 operating income increased 44.2% to $41,877,000; net income was $30,943,000 vs. $28,044,000, and diluted EPS was $0.64 vs. $0.55.

• Q3 billable hours rose 8% to 405,000; average technical FTEs increased 4% to 1,016, and utilization reached 76.7% from 74.1%.

• Nine-month revenue rose 17.7% to $511,648,000; operating income was $111,278,000 and net income $89,907,000.

• Nine-month diluted EPS was $1.83 vs. $1.58; dividends declared per share were $0.93 vs. $0.90.

Outlook and guidance

• FY26 revenue-before-reimbursements growth guidance increased to 10%-11%; EBITDA margin guidance rose to 28.0%-28.3%, from 27.6% in 2025.

• Q4 revenue-before-reimbursements growth guidance is 8%-10%, with EBITDA margin of 26.3%-26.8%.

• Average technical FTE growth expected at 4%-5% in Q4 and 4.7%-5% for FY26; utilization guidance is 69%-70% in Q4 and 73.5%-74% for FY26.

• Realized rate growth expected at 3%-3.5% in Q4 and 3.7%-4% for FY26; FY26 stock-based compensation forecast at $28.1M-$28.4M.

• FY26 tax rate expected at 28.5%; capital expenditures forecast at $10M-$12M.