Exponent Expects 4% Headcount Growth Amid Rising Demand for Litigation and Engineering Services.

Exponent, Inc. reported flat Q2 2025 revenues, exceeding expectations due to disciplined execution and resilience. CEO Catherine Ford Corrigan highlighted continued growth in litigation and engineering services, with a 4% headcount growth target amid rising demand.

Exponent, Inc. (Nasdaq: EXPO) reported flat revenues for the second quarter of fiscal year 2025, totaling $142 million, which exceeded market expectations despite a decline in net income. The company's CEO, Dr. Catherine Corrigan, highlighted the disciplined execution and resilience of the team in a dynamic environment. The company's dispute-related activities in key sectors such as construction, automotive, and medical devices showed strong growth, offsetting a decline in the environmental and health segment [1].

Revenues before reimbursements were approximately flat at $132.9 million, reflecting a 1% increase compared to the previous year. Net income decreased to $26.6 million, or $0.52 per diluted share, compared to $29.2 million, or $0.57 per diluted share, in 2024. The tax impact associated with share-based awards was immaterial in the second quarter of 2025. EBITDA decreased to $37.0 million, or 27.8% of revenues before reimbursements, from $39.9 million, or 30.2% of revenues before reimbursements, in the same period of 2024 [1].

For the first half of 2025, total revenues and revenues before reimbursements increased 1% to $287.5 million and were approximately flat at $270.3 million, respectively, compared to the same period in 2024. Net income for the first half was $53.2 million, or $1.03 per diluted share, compared to $59.4 million, or $1.15 per diluted share, in the same period of 2024. EBITDA decreased to $74.5 million, or 27.6% of revenues before reimbursements, compared to $80.1 million, or 29.7% of revenues before reimbursements, in the first half of 2024 [1].

Exponent's engineering and other scientific segment, which accounted for 85% of revenues before reimbursements, showed a 1% increase in both the second quarter and the first half of 2025. The environmental and health segment, representing 15% of revenues, saw a 4% decrease in the second quarter and 1% decrease in the first half of 2025 compared to the same periods in 2024 [1].

The company announced a quarterly cash dividend of $0.30 per share, scheduled for September 19, 2025, and reiterated its intent to continue paying quarterly dividends. For the first half of 2025, Exponent paid $31.6 million in dividends and repurchased $32.7 million of common stock, closing the period with $231.8 million in cash and cash equivalents [1].

Looking ahead, Exponent anticipates mid-single-digit revenue growth and EBITDA margins of 26.75% to 27.75% of revenues before reimbursements for the third quarter of 2025. The company aims to achieve sustainable growth and deliver long-term value for shareholders [1].

References:
[1] https://www.quiverquant.com/news/Exponent%2C+Inc.+Reports+Second+Quarter+Fiscal+Year+2025+Financial+Results+and+Outlook