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

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

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

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

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

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

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

Did Exponent beat or miss consensus estimates last quarter?

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EXPO

EXPO fundamentals

You can ask Aime