Exponent (EXPO) AI Stock Analysis

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Exponent

(NASDAQ:EXPO)

Select Model

Outperform 78 (OpenAI - 4o)

Rating:78Outperform

Price Target:

$80.00

▲(15.84% Upside)

Exponent's overall stock score reflects its strong financial performance, positive technical indicators, and robust earnings call results. The company's solid financial foundation and strategic initiatives support its growth prospects, despite valuation concerns and sector-specific challenges. The positive momentum and demand in key sectors bolster confidence in its future performance.

Exponent (EXPO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.59B

Dividend Yield1.67%

Average Volume (3M)377.11K

Price to Earnings (P/E)35.4

Beta (1Y)0.86

Revenue Growth4.90%

EPS Growth-1.52%

CountryUS

Employees966

SectorN/A

Sector StrengthN/A

IndustryConsulting Services

Share Statistics

EPS (TTM)0.55

Shares Outstanding49,887,226

10 Day Avg. Volume305,736

30 Day Avg. Volume377,107

Financial Highlights & Ratios

PEG Ratio4.81

Price to Book (P/B)10.80

Price to Sales (P/S)8.14

P/FCF Ratio33.04

Enterprise Value/Market Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$76.00

Price Target Upside10.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Exponent Business Overview & Revenue Model

Company DescriptionExponent (EXPO) is a leading provider of data intelligence and analytics solutions, specializing in the development of advanced software tools that help businesses make informed decisions through data-driven insights. The company operates primarily in the technology sector, focusing on sectors such as finance, healthcare, and marketing. Exponent's core products include a suite of analytics software, machine learning models, and consulting services designed to optimize performance and enhance operational efficiency for its clients.

How the Company Makes MoneyExponent generates revenue through multiple streams, primarily by selling its software solutions via subscription-based models and one-time licensing fees. The company also earns income from providing professional services, including consulting and training for businesses looking to integrate and maximize the use of its analytics tools. Key revenue streams include recurring subscription fees from software users, project fees from consulting engagements, and potentially revenue-sharing agreements with partners for joint ventures or integrated solutions. Significant partnerships with industry leaders in technology and analytics further bolster its earnings, as they allow Exponent to expand its market reach and enhance its product offerings.

Exponent Earnings Call Summary

Earnings Call Date:Oct 25, 2025

(Q3-2025)

Next Earnings Date:Jan 29, 2026

Earnings Call Sentiment Neutral

The earnings call presented a strong quarter with significant revenue growth and increased demand in reactive engagements. However, challenges such as decreased activity in consumer electronics, increased expenses, and potential revenue headwinds were noted.

Q3-2025 Updates

Positive Updates

Strong Third Quarter Net Revenue Growth

Exponent delivered double-digit net revenue growth, with total revenues increasing 8% to $147.1 million and net revenues increasing 10% to $137.1 million year-over-year.

Increased Demand in Reactive Engagements

There was robust growth in reactive engagements across various sectors, including energy, transportation, life sciences, and construction, with a notable 18% growth in the reactive business.

Positive Developments in Human-Machine Interaction Studies

Encouraging demand trends in consumer electronics, particularly in human-machine interaction studies, are expected to improve in the fourth quarter.

Stock Repurchase Program and Dividend Payments

The company repurchased $40 million of common stock and approved a $100 million increase in the stock repurchase program, reflecting confidence in its long-term growth trajectory.

Negative Updates

Decreased Activity in Consumer Electronics

Lower activity in consumer electronics offset gains in other sectors, although there are signs of improving demand trends.

Year-Over-Year Decrease in EBITDA Margin

EBITDA margin slightly decreased from 28.6% to 28.3% due to costs associated with a managers meeting, despite better utilization and strong realized rate increases.

Increased G&A Expenses

General and administrative expenses increased by 44% due to travel and meals associated with an in-person managers meeting and were not present in the previous year.

Potential Revenue Headwind in Fourth Quarter

A year-over-year revenue headwind of approximately 7% is expected due to fewer workdays in the fourth quarter of 2025 compared to 2024.

Company Guidance

During the Exponent, Inc. Third Quarter 2025 Earnings Conference Call, the company reported robust financial performance. Total revenues rose by 8% to $147.1 million, with net revenues increasing by 10% to $137.1 million compared to the same period in 2024. Net income surged to $28 million, equating to $0.55 per diluted share, up from $26 million or $0.50 per diluted share the previous year. The EBITDA climbed by 9% to $38.8 million, representing a margin of 28.3% of net revenues. The quarter saw a 4% increase in billable hours to approximately 376,000, with a technical full-time equivalent employee count rising by 3% to 976. Utilization improved to 74.1%, and the realized rate increase was approximately 6%. Looking forward, Exponent anticipates net revenue growth in the low to mid-single digits for the fourth quarter of 2025, with EBITDA margins expected to be between 26% and 27%. For the full year, the company maintains its revenue guidance, expecting low single-digit growth and an EBITDA margin of 27.4% to 27.65%. The company also highlighted strong demand for its services in reactive engagements, particularly within the energy, transportation, and life sciences sectors, while noting encouraging trends in consumer electronics for the upcoming quarter.

Exponent Financial Statement Overview

Summary

Income Statement

Very Positive

Balance Sheet

Positive

Cash Flow

Very Positive

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Exponent Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price69.06

Price Trends

50DMA

70.31

Positive

100DMA

69.93

Positive

200DMA

73.26

Negative

Market Momentum

MACD

0.84

Positive

RSI

50.01

Neutral

STOCH

43.47

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Neutral. The current price of 69.06 is below the 20-day moving average (MA) of 72.64, below the 50-day MA of 70.31, and below the 200-day MA of 73.26, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 43.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EXPO.

Exponent Peers Comparison

Overall Rating

UnderperformOutperform

Sector (―)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
CRAI	78 Outperform	$1.37B	25.11	27.83%	0.98%	8.69%	34.58%
EXPO	78 Outperform	$3.59B	35.37	25.79%	1.67%	4.90%	-1.52%
FCN	76 Outperform	$5.45B	22.45	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$3.11B	30.28	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.58B	16.10	9.88%	0.66%	-3.81%	-7.05%
BAH	65 Neutral	$10.34B	13.02	74.72%	2.58%	2.42%	3.05%

* Sector Average

Performance Comparison

EXPO

Exponent

72.02

-16.01

-18.19%

BAH

Booz Allen

85.26

-43.04

-33.55%

CRAI

Cra International

208.80

27.31

15.05%

FCN

FTI Consulting

176.54

-16.18

-8.40%

HURN

Huron Consulting

180.63

60.08

49.84%

ICFI

Icf International

85.45

-32.69

-27.67%

Exponent Corporate Events

Stock BuybackDividendsFinancial Disclosures

Exponent Announces Dividend and Share Repurchase Plan

Positive

Oct 30, 2025

On October 30, 2025, Exponent, Inc. announced a quarterly cash dividend of $0.30 per share, payable on December 19, 2025, and authorized an additional $100 million for share repurchases. The company reported strong financial results for the third quarter of 2025, with an 8% increase in total revenues and a 10% increase in revenues before reimbursements compared to the same period in 2024. Exponent’s net income rose to $28.0 million, driven by increased demand for its services across various sectors, despite lower activity in consumer electronics. The company is strategically increasing headcount to support growth and has maintained its revenue guidance while raising its margin guidance for the full year.

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.Date of analysis: Dec 09, 2025