Exponent (EXPO) Q3 2026 earnings summary

Executive summary

• Q3 delivered double-digit revenue and earnings growth on continued demand for integrated engineering and scientific expertise.

• Demand spanned user research, disputes, failure analysis and product safety; FY26 net revenue and EBITDA margin guidance were raised.

• AI-related work is estimated at 15%-20% of 2026 business, including real-world testing, data center systems and safety investigations.

Financial highlights

• Q3 total revenue rose 18% to $173.7M; net revenue increased 12% to $153.1M, with the difference driven by reimbursable expenses.

• Operating income was $41.9M vs. $29.0M YoY; net income rose 10% to $30.9M from $28.0M, and diluted EPS increased 16% to $0.64 from $0.55.

• EBITDA increased 16% to $45.0M; EBITDA margin was 29.4% of net revenue, up from 28.3% YoY.

• Nine-month net revenue rose 11% to $453.7M; total revenue increased 18% to $511.6M, and net income rose to $89.9M from $81.2M.

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

Outlook and guidance

• FY26 net revenue growth guidance was raised to 10%-11%; EBITDA margin guidance rose to 28%-28.3%, versus 27.6% in 2025.

• Q4 net revenue growth guidance is 8%-10%; EBITDA margin guidance is 26.3%-26.8%.

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

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