What does Exponent do and what are its main business segments?

Did Exponent beat or miss consensus estimates last quarter?

What is Exponent's latest dividend and current dividend yield?

What guidance did Exponent's management provide for the next earnings period?

What is the market's earnings forecast for Exponent next quarter?

What factors drove the changes in Exponent's revenue and profit?

What is the revenue and EPS growth rate for Exponent year over year?

What were the key takeaways from Exponent’s earnings call?

- **Revenue Growth**: 10% net revenue increase to $137.1 million, driven by 18% growth in reactive engagements.
- **AI Expansion**: Balancing reactive litigation and proactive algorithm validation, with rapid industry adoption.
- **Financial Strength**: $28 million net income, 28.3% EBITDA margin, and $40 million in Q3 stock buybacks.
- **2026 Outlook**: 4-6% FTE growth, targeting 3-3.5% rate realization as hiring resumes.

**【CEO Summary Section】**
- Exponent reported 8% total revenue growth to $147.1 million, with net revenue up 10% to $137.1 million, driven by double-digit growth in reactive engagements across energy, transportation, and life sciences sectors.
- Proactive engagements in risk management (utility sector) and regulatory consulting (chemicals) offset lower activity in consumer electronics, with improving demand trends expected in Q4.
- AI integration is accelerating across industries, with Exponent leveraging its expertise in failure analysis and human-machine interaction to address safety-critical AI challenges.
- The company is investing in talent to maintain its technical leadership, targeting 4-6% FTE growth in 2026.

**【CFO Financial Commentary】**
- Net income rose 7.7% to $28 million ($0.55 EPS), with EBITDA up 9% to $38.8 million (28.3% margin).
- Billable hours increased 4% to 376,000, with utilization at 74.1% and a 6% realized rate increase.
- Q4 2025 guidance: net revenue growth in low to mid-single digits, EBITDA margin 26-27%, and full-year EBITDA margin 27.4-27.65%.
- $40 million in Q3 stock buybacks and a $100 million increase to the repurchase program reflect confidence in long-term growth.

**【Q&A Highlights】**
- **Hiring Strategy**: 2026 FTE growth expected in 4-6% range, focused on AI, digital health, and energy transition.
- **AI Impact**: Balanced across reactive (litigation, medical devices) and proactive (algorithm validation, hardware design) work, with rapid adoption across industries.
- **Segment Growth**: Reactive engagements grew 18%, while proactive was flat (regulatory consulting gains offset consumer electronics decline).
- **Government Shutdown Impact**: Minimal (2-3% of revenue), with ongoing contracts unaffected.
- **Rate Realization**: 6% in Q3, expected to normalize to 3-3.5% as entry-level hires dilute senior rate mix.

Exponent, Inc. (EXPO) Q3 2025 Earnings Call Transcript

Engineering and Other Scientific

Environmental and Health

EXPO

EXPO fundamentals

You can ask Aime