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 products and risk management in utilities.

• Multidisciplinary expertise and ability to address complex, novel challenges cited as key differentiators as AI integration and product complexity rise.

• Demonstrated resilience and growth through a balanced mix of proactive and reactive work across consumer products, chemicals, transportation, and utilities.

• 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% year-over-year to $171.6M; revenues before reimbursements increased 12% to $148.9M; 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); operating income up 63% year-over-year.

• Billable hours up 8–9% year-over-year; average technical full-time employees up 6%.

• Utilization rate improved to 74% from 72% year-over-year.

• Cash and cash equivalents at quarter-end: $66.6M, down from $221.9M at year-start, mainly 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 expected at 74–75% for Q3 and 72.5–73% for the year.

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

• Strategic agility and resource management expected to drive further profitable growth.