Exponent (NASDAQ:EXPO) Announces Earnings Results

Exponent (NASDAQ:EXPO) released its quarterly earnings data on Thursday. The business services provider reported $0.49 EPS for the quarter, beating the consensus estimate of $0.47 by $0.02, FiscalAI reports. The business had revenue of $147.43 million for the quarter, compared to the consensus estimate of $128.48 million. Exponent had a net margin of 18.21% and a return on equity of 25.00%. The business’s revenue for the quarter was up 4.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.46 EPS.

Here are the key takeaways from Exponent’s conference call:

• Exponent reported a strong finish to FY25 with Q4 net revenues of $129.4 million (up 5% YoY; low-double-digit on a week-adjusted basis), Q4 net income of $24.8 million ($0.49/share), and year-end cash of $221.9 million, while returning capital via dividends and $97.8 million of buybacks for the year.
• Demand drivers are diversified and accelerating — growth in proactive work (user research in consumer electronics, utility risk/asset integrity, life‑sciences regulatory support) and reactive failure‑analysis/dispute work across energy, construction, transportation and data centers.
• Outlook for 2026 targets continued momentum with high-single-digit net revenue growth, EBITDA margins roughly in the 27.6%–28.1% range for the year, planned technical headcount growth of ~4%–5%, and modest utilization improvement.
• Management views AI as a net benefit — both a growth driver (mid‑teens% of business tied to AI or one step removed) and an operations lever, using AI tools to boost efficiency while emphasizing Exponent’s multidisciplinary, physics‑enabled expertise for complex AI‑related failures.
• Cost and cash considerations — G&A and other operating expenses rose (notably due to a managers’ meeting and a Phoenix lease renewal), stock‑based compensation and tax rate increased, EBITDA margin was down ~80 bps YoY for the year, and elevated reimbursements/DSOs pressured near‑term cash conversion.

Exponent Stock Up 12.7%

EXPO opened at $79.79 on Friday. The firm’s fifty day simple moving average is $73.00 and its two-hundred day simple moving average is $70.99. Exponent has a 52-week low of $63.81 and a 52-week high of $97.57. The company has a market cap of $3.98 billion, a price-to-earnings ratio of 38.36 and a beta of 0.79.

Exponent Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, March 6th. This is a boost from Exponent’s previous quarterly dividend of $0.30. Exponent’s payout ratio is presently 58.54%.

Exponent declared that its board has authorized a share buyback program on Thursday, October 30th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the business services provider to purchase up to 3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Exponent

In related news, CEO Catherine Corrigan sold 4,900 shares of the firm’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $70.39, for a total value of $344,911.00. Following the transaction, the chief executive officer directly owned 83,429 shares of the company’s stock, valued at approximately $5,872,567.31. This trade represents a 5.55% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last three months, insiders have sold 9,788 shares of company stock worth $693,648. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Exponent

Several hedge funds and other institutional investors have recently made changes to their positions in EXPO. FORA Capital LLC acquired a new position in Exponent in the 2nd quarter valued at $228,000. United Services Automobile Association purchased a new stake in shares of Exponent during the first quarter worth $270,000. Brevan Howard Capital Management LP acquired a new stake in shares of Exponent in the third quarter valued at about $324,000. Corient Private Wealth LLC lifted its stake in shares of Exponent by 57.0% in the second quarter. Corient Private Wealth LLC now owns 4,793 shares of the business services provider’s stock worth $358,000 after buying an additional 1,741 shares in the last quarter. Finally, Quantinno Capital Management LP boosted its position in Exponent by 44.1% during the second quarter. Quantinno Capital Management LP now owns 4,872 shares of the business services provider’s stock worth $364,000 after acquiring an additional 1,490 shares during the last quarter. Hedge funds and other institutional investors own 92.37% of the company’s stock.

Analyst Ratings Changes

EXPO has been the subject of a number of research reports. UBS Group restated a “neutral” rating and set a $81.00 target price (up from $76.00) on shares of Exponent in a research report on Monday, December 15th. Weiss Ratings restated a “hold (c-)” rating on shares of Exponent in a research note on Thursday, January 22nd. JPMorgan Chase & Co. assumed coverage on Exponent in a research report on Monday, January 26th. They set an “overweight” rating and a $100.00 price target for the company. Finally, William Blair raised shares of Exponent from a “market perform” rating to an “outperform” rating in a research note on Monday, November 17th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $90.50.

Trending Headlines about Exponent

Here are the key news stories impacting Exponent this week:

• Positive Sentiment: Q4 results beat on both EPS and revenue — Exponent reported $0.49 EPS vs. $0.47 consensus and revenue of $147.4M vs. ~$128.5M est; revenue was up 4.5% YoY and margins/ROE remain healthy, signaling profitable growth that supports higher valuation multiples. Exponent Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Management set targets for high single‑digit revenue growth and margin expansion in 2026, citing AI‑driven demand for services — this forward guidance lifts growth expectations and gives investors a reason to re-rate the stock. Exponent outlines high single-digit revenue growth and margin expansion targets for 2026 amid AI-driven demand
• Positive Sentiment: Dividend increased to $0.31 quarterly (3.3% bump) — management’s raise and continued payout signal confidence in cash flow and return of capital to shareholders, supporting investor sentiment. Exponent Increases Quarterly Dividend Payment from $0.30 to $0.31 per Share for Q1 2026
• Positive Sentiment: Strategic bolt‑on: Exponent acquired the international region of Optimas Solutions (Optimas will operate independently), which can broaden service footprint and client exposure outside the U.S. — a modest inorganic growth catalyst. Optimas Solutions to Operate as Independent Business Following Sale of International Region to Exponent
• Neutral Sentiment: Full earnings call transcripts and coverage are available (Yahoo, Seeking Alpha, Zacks, SFGate) for investors wanting details on client demand, utilization, and margin levers — useful for modeling but not new catalysts by themselves. Exponent (EXPO) Q4 2025 Earnings Call Transcript

About Exponent

Exponent, Inc (NASDAQ: EXPO) is an engineering and scientific consulting firm that offers multidisciplinary analysis and advisory services to clients across a range of industries. The company’s expertise spans mechanical, materials and corrosion engineering, civil and structural engineering, electrical engineering, industrial hygiene, toxicology and health sciences, and failure analysis. Exponent provides support for product design, performance evaluation, litigation consulting, and regulatory compliance, helping manufacturers, insurers, law firms and government agencies address complex technical challenges.

Founded in 1967 in Menlo Park, California, Exponent has grown from a small failure-analysis laboratory into a global consulting practice.