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Exponent’s Hidden Growth Lever: Billable Hours Rise 8% As Utilization Reaches 74%!

Exponent, Inc. reported its second quarter financial results for 2026, delivering solid year-over-year growth driven by increasing demand for its specialized, multidisciplinary expertise. Total revenues rose 21% to $171.6 million, with net revenues (excluding reimbursable expenses) increasing 12% to $148.9 million. The quarter benefited from a large user research study that expanded beyond initial expectations, representing about 4% of net revenues, compared to an anticipated 2%. Net income grew 11% to $29.4 million, and diluted earnings per share rose 15% to $0.60, supported by a 5% reduction in diluted shares outstanding due to significant share repurchases. Exponent’s operating metrics demonstrated healthy performance, with billable hours up 8%, average technical employees increasing 6%, and utilization improving to 74% from 72% the previous year. Pricing power was evident in a realized rate increase of approximately 4%. EBITDA increased 16% to $42.7 million, yielding a margin of 28.7%.