Exponent (EXPO) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 and FY2025 results, driven by diversified engagements in consumer electronics, utilities, energy, transportation, and life sciences, with increased demand for user research, risk management, and failure analysis as AI and advanced technologies proliferate.

• Over 50 years of multidisciplinary consulting expertise, serving diverse industries with a focus on technical excellence and objectivity.

• Strong reputation for rigorous analysis and bespoke solutions for high-risk, high-exposure challenges globally.

• Positioned to benefit from trends in safety, health, sustainability, and digital transformation, leveraging a resilient, diversified portfolio.

Financial highlights

• FY2025 total revenues grew 4.2% to $582M; net revenues before reimbursements up 3.5% to $536.8M.

• Q4 2025 total revenues rose 7.8% to $147.4M; net revenues up 5% to $129.4M year-over-year.

• FY2025 net income was $106M ($2.07/diluted share), down 3% year-over-year; Q4 net income was $24.8M ($0.49/diluted share), up from $23.6M ($0.46/diluted share) in Q4 2024.

• FY2025 EBITDA was $148.1M (27.6% margin); Q4 EBITDA was $34.7M (26.8% margin).

• Year-end cash and equivalents: $221.9M; free cash flow for FY2025 was $138M.

Outlook and guidance

• Net revenues for Q1 and FY2026 expected to grow in the high single digits year-over-year, with EBITDA margin guidance of 27.5%-28.5%.

• Average technical FTEs expected to increase 4%-5% in 2026; utilization targeted at 72.5%-73%.

• Realized rate increase for 2026 expected at 3%-3.5%.

• FY2026 tax rate expected at 28.5%; capital expenditures forecast at $12M-$14M.

• Strategic focus on capitalizing on global trends in automation, energy transition, and health, with continued investment in talent and innovation.