Exponent (EXPO) Q2 2026 earnings summary

Executive summary

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

• Demonstrated resilience and growth through a balanced mix of reactive (disputes, failure analysis) and proactive (user research, risk management) work, 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 $171.6M; revenues before reimbursements increased 12% to $148.9M year-over-year.

• Net income grew 11% to $29.4M; diluted EPS up 15% to $0.60.

• EBITDA for Q2 2026 increased 16% to $42.7M (28.7% of revenues before reimbursements).

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

• Cash and cash equivalents at end of Q2 2026: $66.6M, down from $221.9M at year-start due to increased share repurchases.

Outlook and guidance

• Q3 2026 revenues before reimbursements expected to grow 8–10% year-over-year; EBITDA margin guidance at 28.0–28.5%.

• Full-year 2026 guidance raised: revenues before reimbursements to grow 9–10%, EBITDA margin at 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–$28.4M; capital expenditures expected at $12–$14M.