Exponent (EP5) AI Stock Analysis

Company Guidance

For the fourth quarter of 2026, as compared to 1 year prior, Exponent expects net revenues to grow 8% to 10% and EBITDA to be 26.3% to 26.8% of net revenues; average technical full-time equivalent employees are expected to increase approximately 4% to 5% year-over-year, utilization to be 69% to 70% as compared to 69% in the same quarter last year, and the year-over-year realized rate increase to be 3% to 3.5%; stock-based compensation is expected to be $5.7 million to $5.9 million, other operating expenses $13.5 million to $14 million, G&A expense $7.2 million to $7.7 million, interest income $700,000 to $900,000, miscellaneous income approximately $300,000, and the tax rate approximately 28% as compared to 27.4% in the same quarter a year ago. For the full year of 2026, Exponent expects net revenue growth of 10% to 11%, EBITDA to be 28% to 28.3% of net revenues as compared to 27.6% in 2025, average technical full-time equivalent employees to increase 4.7% to 5%, utilization to be 73.5% to 74% as compared to 72.5% in 2025, the year-over-year realized rate increase to be 3.7% to 4%, stock-based compensation $28.1 million to $28.4 million, other operating expenses $53 million to $53.5 million, G&A expenses $28.1 million to $28.6 million, the tax rate 28.5% as compared to 28% in 2025, and capital expenditures $10 million to $12 million; the project is expected to wind down to under 1% of revenues in the fourth quarter, and for the remainder of 2026 Exponent does not anticipate any additional tax benefit associated with share-based awards.