Exponent (EXPO) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and FY2025 results, driven by diversified growth in proactive and reactive engagements across consumer electronics, utilities, energy, transportation, and life sciences.

• Over 50 years of multidisciplinary consulting expertise, serving diverse industries with a focus on technical excellence and objectivity.

• Proactive services saw increased demand for user research, especially in AI-enabled consumer electronics and risk management for utilities.

• Reactive services grew due to failure analysis and dispute-related work in sectors like energy, construction, and transportation.

• Positioned to benefit from trends in safety, health, sustainability, and the proliferation of AI and advanced technologies.

Financial highlights

• FY2025 total revenues grew 4.2% to $582.0M; revenues before reimbursements up 3.5% to $536.8M.

• Q4 2025 total revenues rose 8% to $147.4M; net revenues up 5% to $129.4M year-over-year, with one less week in the quarter.

• FY2025 net income was $106.0M ($2.07/diluted share), down 3% year-over-year.

• FY2025 EBITDA was $148.1M (27.6% margin); Q4 2025 EBITDA was $34.7M (26.8% margin).

• Cash and equivalents at year-end: $221.9M.

Outlook and guidance

• FY2026 revenues before reimbursements expected to grow high single digits year-over-year; EBITDA margin guidance of 27.6%-28.1%.

• Technical FTEs expected to increase 4%-5% in 2026; utilization targeted at 72.5%-73%.

• Realized rate increase for 2026 expected at 3%-3.5%.

• Capital expenditures for 2026 expected at $12M-$14M; tax rate for 2026 expected at 28.5%.

• Management confident in long-term growth trajectory, citing strong market drivers and proven operating model.