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Exponent
(NASDAQ:EXPO)
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Rating:77Outperform
Price Target:
$76.00
▲(23.70% Upside)
Action:Reiterated
Date:08/08/26
EXPO scores well primarily on strong financial quality (solid growth, high margins, good cash generation, and still-manageable leverage) and an upbeat, guidance-raising earnings update. Technicals also support the score with a positive price trend and momentum. The main limiter is valuation: a high P/E leaves less room for error if margins compress further or cost pressures persist.
Positive Factors
High and expanding operating margins
Sustained high EBITDA margins and a raised margin guidance indicate structural pricing power in technical consulting. High margins support durable cash generation, fund talent/research investments, and provide insulation versus cyclical revenue dips, enhancing long‑term profit resilience.
Negative Factors
Reimbursable expense volatility and concentration
Heavy reliance on reimbursable user research projects can produce quarter‑to‑quarter swings and client concentration. That variability reduces revenue predictability and complicates capacity planning and utilization targets, increasing execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding operating margins
Sustained high EBITDA margins and a raised margin guidance indicate structural pricing power in technical consulting. High margins support durable cash generation, fund talent/research investments, and provide insulation versus cyclical revenue dips, enhancing long‑term profit resilience.
Read all positive factors
Exponent Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profit contribution and margins for each business segment, highlighting which lines are most profitable and which absorb costs. Useful for spotting margin pressure, assessing operational efficiency, and deciding where management should allocate resources to maximize returns.
Shows profit contribution and margins for each business segment, highlighting which lines are most profitable and which absorb costs. Useful for spotting margin pressure, assessing operational efficiency, and deciding where management should allocate resources to maximize returns.
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The Fly
The FlyExponent (EXPO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.15B
Dividend Yield1.81%
Average Volume (3M)575.32K
Price to Earnings (P/E)29.7
Beta (1Y)0.79
Revenue Growth12.84%
EPS Growth11.59%
CountryUS
Employees1,012
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.23
Shares Outstanding47,546,085
10 Day Avg. Volume536,401
30 Day Avg. Volume575,324
Financial Highlights & Ratios
PEG Ratio-14.37
Price to Book (P/B)9.15
Price to Sales (P/S)6.14
P/FCF Ratio29.19
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$84.00Price Target Upside36.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.31
Revenue Forecast (FY)$587.40M
Exponent Business Overview & Revenue Model
Company Description
Exponent, Inc. functions as a global leader in scientific and engineering consulting, operating through its subsidiaries. The firm's activities are divided into two principal segments: Engineering and Other Scientific, and Environmental and Health...
How the Company Makes Money
Exponent primarily makes money by selling professional services—billing clients for consulting projects delivered by its scientific, engineering, and technical staff. Revenue is largely generated through (1) technical consulting and investigative ...
Exponent Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a positive operational and financial performance: double-digit revenue and earnings growth, higher utilization, EBITDA margin expansion, strong AI-driven demand across proactive and reactive services, and an upward revision to full-year guidance. Offsetting factors include quarter-to-quarter variability from reimbursable user research projects (including one large study that temporarily boosted results), rising G&A and operating expenses, reduced interest income and cash due to substantial share repurchases, and modest increases in realized billing rates and tax rate. On balance, the strengths and forward guidance outweigh the highlighted risks and one-time variabilities.Positive Updates
Strong Top-Line Growth
Total revenues increased 21% year-over-year to $171.6M in Q2 2026; net revenues (revenues before reimbursements) rose 12% to $148.9M, driven by higher demand for user research and proactive engagements.
Negative Updates
Reimbursable Expense Volatility and Concentration
Total revenues grew faster than net revenues due to higher reimbursable expenses tied to user research; one large user research study represented ~4% of net revenues in Q2 (vs. expected 2%), creating quarter-to-quarter variability and concentration risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenues increased 21% year-over-year to $171.6M in Q2 2026; net revenues (revenues before reimbursements) rose 12% to $148.9M, driven by higher demand for user research and proactive engagements.
Read all positive updates
Company Guidance
Exponent raised full-year 2026 guidance and gave quarterly targets: for Q3 they expect net revenues up 8%–10% year‑over‑year with EBITDA of 28.0%–28.5% of net revenues; for full‑year 2026 they now expect net revenues +9%–10% and EBITDA 27.8%–28.1% of net revenues. They forecast average technical FTEs +4%–5% in Q3 and +4.5%–5% for the year, utilization of 74%–75% in Q3 (74% prior‑year) and 72.5%–73% for the full year (72.5% in 2025), realized rate increases of 3%–4% in Q3 and 3.5%–4% for the year, stock‑based compensation of $6.5M–$6.7M in Q3 and $27.9M–$28.4M for the year, other operating expenses of $13.0M–$13.5M in Q3 ($52.2M–$52.7M full year), G&A of $8.2M–$8.7M in Q3 ($29.5M–$30.0M full year), interest income ~$0.5M–$0.7M per quarter, miscellaneous income ~ $0.3M per quarter, Q3 tax rate ≈28% (vs 27.4% prior year) and full‑year tax rate ≈28.5% (vs 28.0% in 2025), and full‑year capital expenditures of $12M–$14M.Exponent Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
79
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 632.46M | 582.01M | 558.51M | 536.77M | 513.29M | 466.27M |
| Gross Profit | 155.55M | 145.31M | 142.28M | 135.76M | 164.50M | 124.21M |
| EBITDA | 153.35M | 157.38M | 157.06M | 144.81M | 139.31M | 132.32M |
| Net Income | 111.77M | 106.01M | 109.00M | 100.34M | 102.33M | 101.20M |
Balance Sheet | ||||||
| Total Assets | 652.72M | 808.62M | 777.27M | 646.78M | 586.66M | 683.74M |
| Cash, Cash Equivalents and Short-Term Investments | 66.63M | 221.93M | 258.90M | 187.15M | 161.46M | 297.69M |
| Total Debt | 80.72M | 82.83M | 81.48M | 28.26M | 18.60M | 14.97M |
| Total Liabilities | 364.11M | 418.27M | 356.20M | 290.69M | 265.91M | 266.67M |
| Stockholders Equity | 288.62M | 390.34M | 421.07M | 356.08M | 320.75M | 417.06M |
Cash Flow | ||||||
| Free Cash Flow | 108.56M | 122.34M | 137.60M | 111.00M | 81.76M | 117.74M |
| Operating Cash Flow | 118.15M | 131.73M | 144.54M | 127.35M | 93.81M | 124.57M |
| Investing Cash Flow | -9.59M | -9.39M | -6.94M | -16.36M | -12.04M | 38.18M |
| Financing Cash Flow | -273.74M | -160.43M | -65.11M | -86.01M | -215.98M | -62.75M |
Exponent Technical Analysis
Positive
61.44
Price Trends
61.95
Positive
62.30
Positive
66.56
Negative
Market Momentum
1.56
Positive
54.54
Neutral
47.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Positive. The current price of 61.44 is below the 20-day moving average (MA) of 65.44, below the 50-day MA of 61.95, and below the 200-day MA of 66.56, indicating a neutral trend. The MACD of 1.56 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 47.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.15B | 29.68 | 31.48% | 1.99% | 12.84% | 11.59% | |
77 Outperform | $2.36B | 21.75 | 25.53% | ― | 13.60% | 14.77% | |
74 Outperform | $1.55B | 17.80 | 8.57% | 0.70% | -7.89% | -16.13% | |
72 Outperform | $4.14B | 18.29 | 15.61% | ― | 7.12% | 15.93% | |
70 Outperform | $9.02B | 11.73 | 71.90% | 3.14% | -7.27% | -22.00% | |
65 Neutral | $1.03B | 21.61 | 24.76% | 1.30% | 11.46% | -9.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
EXPO
Exponent
67.51
-0.88
-1.28%
BAH
Booz Allen
75.76
-30.72
-28.85%
CRAI
Cra International
168.17
-18.38
-9.85%
FCN
FTI Consulting
151.45
-17.65
-10.44%
HURN
Huron Consulting
151.37
15.62
11.51%
ICFI
Icf International
88.00
-10.23
-10.41%
Exponent Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Exponent boosts 2026 outlook on strong Q2 results
Positive
Jul 30, 2026
On July 30, 2026, Exponent reported that second-quarter 2026 revenues before reimbursements rose 12% year-on-year to $148.9 million, with total revenues up 21% to $171.6 million and net income increasing to $29.4 million, or $0.60 per diluted shar...
Executive/Board ChangesShareholder Meetings
Exponent Shareholders Elect Directors, Name New Board Chair
Positive
Jun 10, 2026
On June 4, 2026, Exponent held its annual meeting of stockholders, at which shareholders elected directors George H. Brown, Catherine Ford Corrigan, Ph.D., Carol Lindstrom, Karen A. Richardson, Richard L. Schlenker Jr., and Debra L. Zumwalt, and c...
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.