Exponent (EXPO) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in revenues and earnings for Q1 2026, driven by strong demand for multidisciplinary expertise in AI-integrated consumer electronics, utilities, energy, medical devices, and construction, with both proactive and reactive client engagements.

• Leadership transition announced: John Pye as President and Eric Anderson as CFO, effective May 1, 2026, with outgoing CFO remaining as EVP.

• Over 50 years of multidisciplinary consulting expertise, serving high-risk, high-exposure challenges globally.

• Positioned to benefit from trends in safety, health, sustainability, automation, and digital health, leveraging a diversified client base and resilient business model.

• Integration of AI and advanced technologies continues to drive demand for specialized expertise.

Financial highlights

• Q1 2026 total revenues rose 14% year-over-year to $166.3 million; revenues before reimbursements up 10% to $151.8 million.

• Net income increased 11% to $29.6 million; diluted EPS up 13% to $0.59.

• EBITDA grew 15% to $43.1 million (28.4% margin), with margin improving from 27.3% in Q1 2025.

• Billable hours up 6% to 399,000; technical FTEs increased 5% to 1,013; utilization rose to 76%.

• G&A expenses increased 24% to $6.2 million, mainly due to higher travel and recruiting costs.

Outlook and guidance

• Q2 and full-year 2026 guidance: net revenues expected to grow high single digits year-over-year; EBITDA margin projected at 27%-28.1%.

• Technical FTEs expected to grow 4%-5% for the year; utilization to remain around 72.5%-73%.

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

• Management expects continued investment in talent and infrastructure, with ongoing focus on emerging growth areas and capital allocation to enhance shareholder value.

• Leadership changes expected to strengthen capabilities and support long-term growth.