Exponent (EXPO)
NASDAQ:EXPO
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Exponent
(NASDAQ:EXPO)
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Rating:71Outperform
Price Target:
$71.00
▲(10.13% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong underlying financial quality (profitability/ROE) and supportive 2026 guidance for continued growth with stable-to-improving margins. The rating is held back by a high P/E with only a modest yield, and technical indicators that point to neutral-to-soft momentum (negative MACD) rather than a strong trend.
Positive Factors
High profitability and ROE
Sustained high net margins and strong ROE indicate durable pricing power and efficient use of capital in a professional services model. This supports reinvestment in technical talent, funds capital returns, and provides a multi-quarter cushion against cyclical revenue dips given steady margin generation.
Negative Factors
Margin compression from prior peaks
A meaningful decline in gross and EBITDA margins versus prior peaks suggests structural pressure—mix shift to lower‑margin engagements, rising direct costs, or pricing limits. Persisting compression would reduce free cash flow and the firm's ability to expand investments or sustain returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Sustained high net margins and strong ROE indicate durable pricing power and efficient use of capital in a professional services model. This supports reinvestment in technical talent, funds capital returns, and provides a multi-quarter cushion against cyclical revenue dips given steady margin generation.
Read all positive factors
Exponent (EXPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.18B
Dividend Yield1.66%
Average Volume (3M)341.53K
Price to Earnings (P/E)33.7
Beta (1Y)0.95
Revenue Growth4.90%
EPS Growth-1.52%
CountryUS
Employees966
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)0.49
Shares Outstanding49,254,337
10 Day Avg. Volume466,482
30 Day Avg. Volume341,532
Financial Highlights & Ratios
PEG Ratio-14.35
Price to Book (P/B)9.15
Price to Sales (P/S)6.14
P/FCF Ratio29.19
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue5.29
Enterprise Value/Gross Profit13.19
Enterprise Value/Ebitda20.20
Forecast
1Y Price Target
$90.00Price Target Upside39.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.26
Revenue Forecast (FY)$577.63M
Exponent Business Overview & Revenue Model
Company Description
Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. It operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific s...
How the Company Makes Money
Exponent primarily makes money by billing clients for professional services provided by its engineers, scientists, and technical consultants. Revenue is largely generated on a time-and-materials basis (hourly or daily rates multiplied by consultan...
Exponent Key Performance Indicators (KPIs)
Exponent Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook: Exponent delivered a strong Q4 with revenue and EBITDA improvement, solid cash generation, aggressive capital returns, and clear demand tailwinds driven by AI, electrification and energy infrastructure work. Offsetting items include modest full-year margin compression, a small decline in FY net income, higher operating expenses (notably one-time meeting and lease items), softer Environmental & Health Q4 results and elevated year-end DSOs. Management provided constructive 2026 guidance (high-single-digit revenue growth, slight margin expansion, FTE growth and utilization targets), indicating confidence in continued recovery and secular growth drivers.Positive Updates
Fourth Quarter Revenue Growth (Reported and Adjusted)
Total revenues increased 8% year-over-year to $147.4M in Q4 2025; net revenues (revenues before reimbursements) rose 5% to $129.4M. Management noted the quarter included a one-week headwind (~7% to Q4 revenues, ~1.3% to year), with net revenues adjusting to low double-digit growth if normalized for the shorter period.
Negative Updates
Full-Year Revenue and Net Income Pressures
Full-year 2025 total revenues were $582M and net revenues $536.8M, up 4% year-over-year. Net income declined 3% to $106M ($2.07 diluted EPS) from $109M ($2.11) in 2024.
Read all updates
Q4-2025 Updates
Positive
Negative
Fourth Quarter Revenue Growth (Reported and Adjusted)
Total revenues increased 8% year-over-year to $147.4M in Q4 2025; net revenues (revenues before reimbursements) rose 5% to $129.4M. Management noted the quarter included a one-week headwind (~7% to Q4 revenues, ~1.3% to year), with net revenues adjusting to low double-digit growth if normalized for the shorter period.
Read all positive updates
Company Guidance
Management guided that net revenues should grow in the high single digits for both Q1 and the full year 2026, with Q1 EBITDA margin of 27.5%–28.5% (vs. 27.3% a year ago) and full‑year EBITDA margin of 27.6%–28.1% (vs. 27.6% in 2025); average technical FTEs are expected to rise ~4% in Q1 and 4%–5% for the year, utilization to be 75%–76% in Q1 (75% a year ago) and 72.5%–73% for the year, realized rate increases of 3.5%–4% in Q1 and 3%–3.5% for the year, stock‑based compensation of $8.6M–$9.0M in Q1 (other quarters $5.5M–$6.3M) and $26M–$26.5M for FY2026, other operating expenses $12.7M–$13.2M in Q1 and $53.5M–$54M for the year, G&A $5.4M–$5.8M in Q1 and $27.1M–$28.1M for the year, interest income $1.7M–$1.9M per quarter, miscellaneous income ~ $300k per quarter (~$1.2M FY), tax rate ~30.4% in Q1 and ~28.5% for the year, and capital expenditures of $12M–$14M, while reiterating a long‑term target of sustained mid‑70s utilization and high single‑digit to low double‑digit organic growth with margin expansion.Exponent Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 582.01M | 558.51M | 536.77M | 513.29M | 466.27M |
| Gross Profit | 145.31M | 142.28M | 135.76M | 164.50M | 124.21M |
| EBITDA | 157.38M | 129.25M | 120.24M | 147.92M | 115.41M |
| Net Income | 106.01M | 109.00M | 100.34M | 102.33M | 101.20M |
Balance Sheet | |||||
| Total Assets | 808.62M | 777.27M | 646.78M | 586.66M | 683.74M |
| Cash, Cash Equivalents and Short-Term Investments | 221.93M | 258.90M | 187.15M | 161.46M | 297.69M |
| Total Debt | 82.83M | 81.48M | 28.26M | 18.60M | 14.97M |
| Total Liabilities | 418.27M | 356.20M | 290.69M | 265.91M | 266.67M |
| Stockholders Equity | 390.34M | 421.07M | 356.08M | 320.75M | 417.06M |
Cash Flow | |||||
| Free Cash Flow | 122.34M | 137.60M | 111.00M | 81.76M | 117.74M |
| Operating Cash Flow | 131.73M | 144.54M | 127.35M | 93.81M | 124.57M |
| Investing Cash Flow | -9.39M | -6.94M | -16.36M | -12.04M | 38.18M |
| Financing Cash Flow | -160.43M | -65.11M | -86.01M | -215.98M | -62.75M |
Exponent Technical Analysis
Negative
64.47
Price Trends
70.69
Negative
71.13
Negative
70.70
Negative
Market Momentum
-1.77
Positive
34.91
Neutral
20.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Negative. The current price of 64.47 is below the 20-day moving average (MA) of 68.50, below the 50-day MA of 70.69, and below the 200-day MA of 70.70, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 34.91 is Neutral, neither overbought nor oversold. The STOCH value of 20.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EXPO.
Exponent Risk Analysis
Exponent disclosed 35 risk factors in its most recent earnings report. Exponent reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Exponent Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.18B | 33.69 | 25.51% | 1.66% | 4.90% | -1.52% | |
71 Outperform | $2.08B | 28.72 | 21.03% | ― | 12.50% | 29.40% | |
69 Neutral | $9.47B | 13.00 | 81.85% | 2.60% | 2.42% | 3.05% | |
68 Neutral | $5.21B | 19.86 | 13.30% | ― | -0.95% | -10.54% | |
67 Neutral | $1.01B | 24.31 | 26.10% | 0.97% | 8.69% | 34.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.18B | 17.06 | 9.11% | 0.65% | -3.81% | -7.05% |
* Industrials Sector Average
EXPO
Exponent
64.47
-16.44
-20.31%
BAH
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78.49
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CRAI
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153.16
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FCN
FTI Consulting
170.34
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5.10%
HURN
Huron Consulting
122.64
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ICFI
Icf International
64.77
-20.80
-24.31%
Exponent Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Exponent Reports Q4 Revenue Growth and Higher Dividend
Positive
Feb 5, 2026
On February 5, 2026, Exponent reported that fourth-quarter 2025 total revenues rose 7.8% year over year to $147.4 million, with revenues before reimbursements up 4.5% to $129.4 million, and net income improving to $24.8 million, or $0.49 per dilut...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.