Exponent (EXPO) AI Stock Analysis

• Market Cap: $3.62B
• Dividend Yield: 1.67%
• Average Volume (3M): 377.11K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.87
• Revenue Growth: 4.90%
• EPS Growth: -1.52%
• Country: US
• Employees: 966
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.55
• Shares Outstanding: 50,501,137
• 10 Day Avg. Volume: 305,736
• 30 Day Avg. Volume: 377,107
• PEG Ratio: 4.81
• Price to Book (P/B): 10.80
• Price to Sales (P/S): 8.14
• P/FCF Ratio: 33.04
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $76.00
• Price Target Upside: 10.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $79.00 ▲(14.39% Upside)

Exponent's overall stock score reflects its strong financial performance and positive earnings call insights, tempered by mixed technical indicators and a moderate valuation. The company's robust revenue growth and strategic initiatives are significant strengths, while attention to cash flow management and market conditions will be crucial.

Positive Factors

Revenue Growth

Exponent's strong revenue growth indicates robust demand for its services, suggesting effective market positioning and product relevance, which are crucial for long-term sustainability.

Business Model Strength

A subscription-based model provides predictable revenue streams and customer retention, supporting long-term financial stability and growth.

Strong Demand in Key Sectors

Growth in diverse sectors enhances Exponent's market resilience and reduces dependency on any single industry, supporting sustainable long-term growth.

Negative Factors

Decreased Activity in Consumer Electronics

Decreased activity in consumer electronics could signal challenges in adapting to market changes, potentially impacting growth in this sector.

Increased G&A Expenses

Rising G&A expenses can pressure margins and reduce profitability, necessitating careful cost management to maintain financial health.

Potential Revenue Headwind

Expected revenue headwinds could impact short-term financial performance, highlighting the need for strategic planning to mitigate seasonal fluctuations.

Exponent Business Overview & Revenue Model

Company Description

Exponent (EXPO) is a technology company that specializes in providing data analytics solutions and software tools designed to enhance decision-making processes for businesses across various industries. The company operates primarily in the technology and data analytics sectors, offering a suite of products that includes predictive analytics, machine learning platforms, and business intelligence tools aimed at helping organizations optimize their operations and drive growth.

How the Company Makes Money

Exponent generates revenue through a subscription-based model for its software products, allowing customers to access its analytics tools and services on a recurring basis. The company also earns money through professional services, including consulting and support, which help clients implement and utilize their technologies effectively. Key revenue streams include subscriptions from enterprise clients, data integration services, and partnerships with other technology firms that enhance its product offerings. Additionally, Exponent may engage in strategic alliances that leverage its analytics capabilities, further driving sales and customer acquisition.

Exponent Financial Statement Overview

Summary

Exponent demonstrates strong financial health with high profitability and growth metrics. The income statement shows robust revenue growth and healthy margins, although a slight decline in net income and free cash flow growth warrants attention. The balance sheet is stable with low leverage, and cash flow conversion is efficient.

Income Statement

Exponent's income statement shows strong profitability with a TTM gross profit margin of 56.74% and a net profit margin of 18.35%. The company has demonstrated impressive revenue growth of 25.5% in the TTM period, indicating robust demand for its services. While the EBIT and EBITDA margins are healthy at 25.31% and 26.18% respectively, there is a slight decline in net income from the previous annual report, which could be a point of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.19, suggesting prudent financial management. The return on equity is strong at 24.19%, indicating efficient use of equity capital. However, the equity ratio of 56.31% suggests moderate leverage, which is typical for the consulting industry but could pose risks if debt levels increase.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth by 9.87% in the TTM period, which may impact liquidity. The operating cash flow to net income ratio is slightly above 1, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is robust at 0.95, reflecting strong cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	560.51M	558.51M	536.77M	513.29M	466.27M	399.90M
Gross Profit	318.06M	142.28M	135.76M	164.50M	124.21M	96.14M
EBITDA	146.72M	129.25M	120.24M	147.92M	115.41M	90.12M
Net Income	102.84M	109.00M	100.34M	102.33M	101.20M	82.55M
Balance Sheet
Total Assets	759.43M	777.27M	646.78M	586.66M	683.74M	580.10M
Cash, Cash Equivalents and Short-Term Investments	231.80M	258.90M	187.15M	161.46M	297.69M	242.53M
Total Debt	80.32M	81.48M	28.26M	18.60M	14.97M	20.33M
Total Liabilities	331.65M	356.20M	290.69M	265.91M	266.67M	218.60M
Stockholders Equity	427.78M	421.07M	356.08M	320.75M	417.06M	361.50M
Cash Flow
Free Cash Flow	120.92M	137.60M	111.00M	81.76M	117.74M	98.33M
Operating Cash Flow	129.26M	144.54M	127.35M	93.81M	124.57M	103.31M
Investing Cash Flow	-8.34M	-6.94M	-16.36M	-12.04M	38.18M	5.02M
Financing Cash Flow	-92.80M	-65.11M	-86.01M	-215.98M	-62.75M	-88.36M

Exponent Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPO, the sentiment is Positive. The current price of 69.06 is above the 20-day moving average (MA) of 68.07, below the 50-day MA of 69.16, and below the 200-day MA of 76.12, indicating a neutral trend. The MACD of 0.42 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPO.

Exponent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	―	$1.24B	22.64	27.83%	1.06%	8.69%	34.58%
FCN	―	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
EXPO	―	$3.62B	35.18	25.79%	1.67%	4.90%	-1.52%
HURN	―	$2.84B	27.64	21.20%	―	12.50%	29.40%
ICFI	―	$1.49B	15.20	9.88%	0.70%	-3.81%	-7.05%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BAH	―	$10.37B	13.05	74.72%	2.15%	2.42%	3.05%

Exponent Corporate Events

Exponent’s Earnings Call: Revenue Growth Amid Challenges

In the recent earnings call, Exponent demonstrated a strong quarter characterized by significant revenue growth and heightened demand in reactive engagements. Despite these positive developments, the company acknowledged challenges such as decreased activity in consumer electronics, increased expenses, and potential revenue headwinds.

Exponent Reports Strong Q3 2025 Financial Results

Exponent, Inc. is a leading engineering and scientific consulting firm that operates across multiple industries, offering specialized expertise in failure analysis and risk management. The company reported strong financial results for the third quarter of 2025, with notable revenue growth driven by increased demand in various sectors, despite challenges in the consumer electronics space.

Exponent Announces Dividend and Share Repurchase Plan

On October 30, 2025, Exponent, Inc. announced a quarterly cash dividend of $0.30 per share, payable on December 19, 2025, and authorized an additional $100 million for share repurchases. The company reported strong financial results for the third quarter of 2025, with an 8% increase in total revenues and a 10% increase in revenues before reimbursements compared to the same period in 2024. Exponent’s net income rose to $28.0 million, driven by increased demand for its services across various sectors, despite lower activity in consumer electronics. The company is strategically increasing headcount to support growth and has maintained its revenue guidance while raising its margin guidance for the full year.

The most recent analyst rating on (EXPO) stock is a Hold with a $74.00 price target. To see the full list of analyst forecasts on Exponent stock, see the EXPO Stock Forecast page.

Exponent’s Earnings Call: Mixed Results and Optimistic Outlook

The recent earnings call for Exponent presented a mixed sentiment, highlighting slight revenue growth and strong litigation-related activity. However, these positives were counterbalanced by flat net revenues, decreased net income, and challenges in utilization. While there were positive developments in utility sector risk management and recruiting efforts, these were overshadowed by declines in the environmental and health segment and regulatory delays.

Exponent’s Q2 2025 Earnings: Steady Revenue Amid Challenges

Exponent, Inc. is a multidisciplinary engineering and scientific consulting firm that operates across various industries, providing expertise in failure analysis and risk management. In its second quarter of 2025, Exponent reported flat revenues of $142.0 million, slightly exceeding expectations, with notable growth in dispute-related activities in the construction, automotive, and medical device sectors. However, the company faced softer demand in chemical regulatory work, impacting overall performance.