Exponent (NASDAQ:EXPO) Issues Earnings Results

Exponent (NASDAQ:EXPO) issued its quarterly earnings results 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 company had revenue of $147.43 million during the quarter, compared to analysts’ expectations of $128.48 million. Exponent had a net margin of 18.35% and a return on equity of 24.77%.

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 Price Performance

Shares of EXPO traded up $0.74 during mid-day trading on Thursday, reaching $70.83. The company’s stock had a trading volume of 583,632 shares, compared to its average volume of 351,807. Exponent has a 12-month low of $63.81 and a 12-month high of $97.57. The stock has a market cap of $3.53 billion, a PE ratio of 34.55 and a beta of 0.79. The company’s 50 day moving average is $72.88 and its 200 day moving average is $70.93.

Wall Street Analyst Weigh In

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

Insider Transactions at Exponent

In other Exponent news, CEO Catherine Corrigan sold 4,900 shares of the stock in a transaction that occurred on 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 in the company, valued at $5,872,567.31. This represents a 5.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold 9,788 shares of company stock valued at $693,648 over the last three months. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of Exponent

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

Exponent declared that its board has approved a share repurchase plan on Thursday, October 30th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the business services provider to reacquire up to 3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

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.