Core Insights - VinFast is participating in the Electrify Expo Industry Day on October 17, 2025, at Nassau Veterans Memorial Coliseum, following a successful event in Chicago [1][2] - The Industry Day will feature discussions on innovation, infrastructure, consumer adoption, and policies affecting the electric vehicle (EV) market [2] - VinFast aims to make electric mobility more accessible and will share insights on transitioning EVs into the mainstream market [3] Company Participation - VinFast will showcase its two premium electric SUVs, the VF 8 and VF 9, during both Industry Day and public festival days [5] - The VF 8 starts at $39,900 and the VF 9 at $62,900, with competitive lease rates and financing promotions available [7] - A team of VinFast experts will be present to provide information on vehicle features, sales policies, and after-sales services [8] Market Expansion - VinFast has expanded its presence in North America and Europe, with plans to enter high-potential markets such as Indonesia, the Philippines, India, and the Middle East [9] - The company is committed to adjusting its business strategies based on market analysis and macroeconomic conditions [10] - VinFast's mission is to make EVs accessible to everyone, with a diverse product lineup including electric SUVs, e-scooters, e-bikes, and e-buses [12]

Core Insights - Exponent, Inc. will report its Third Quarter financial results for fiscal year 2025 on October 30, 2025, after market close [1] - The conference call to discuss the financial results will be hosted by CEO Dr. Catherine Corrigan and CFO Richard Schlenker at 4:30 p.m. ET [1][2] Company Overview - Exponent integrates over 90 technical disciplines with more than 950 consultants to assist clients in navigating complex industry challenges [3] - The company focuses on failure analysis and developing solutions aimed at creating a safer, healthier, and more sustainable world [3] Operational Capabilities - Exponent's consultants leverage multidisciplinary expertise and resources from offices across North America, Asia, and Europe [4] - The company utilizes its laboratories, databases, and computing resources globally to provide insights that help various sectors, including multinational companies, startups, law firms, insurance companies, and governments [4]

Industry Overview - The Consulting Services industry offers professional advice across various sectors, including management, IT, human resources, and marketing, focusing on operational efficiency and digital transformation [2] - The industry has experienced exponential growth since the 2008 financial crisis, driven by digital innovation and efficiency, leading to stable revenues and dividends [3] - The sector benefits from economic recovery, with GDP growing 3.3% in Q2 2025, and strong non-manufacturing activities indicated by a Services PMI above 50% for 13 of the last 14 months [4] Demand Environment - The consulting services industry remains resilient amid global uncertainties, with organizations seeking guidance to safeguard their workforce and strengthen consumer and shareholder ties [5] - The industry's early adoption of remote collaboration has become a standard practice, supported by AI-driven insights and agile delivery frameworks [5] Market Performance - The Consulting Services industry has underperformed the S&P 500, declining 27% over the past year compared to the S&P 500's 19% gain and the broader sector's 4% rise [8] - The industry currently trades at a forward 12-month price-to-earnings (P/E) ratio of 21.54X, slightly below the S&P 500's 23.53X and the sector's 21.66X [11] Company Highlights - **FTI Consulting**: The company has diversified offerings and international operations, with 36% of revenues from international markets. It has achieved a compound annual growth rate of 8.5% from 2020 to 2024, and its 2025 EPS estimate has increased by 1.5% to $1.97 [15][16] - **Exponent**: Positioned to capitalize on technological innovation, Exponent has seen growth in dispute-related activities and proactive risk management in utilities. Its 2025 EPS estimate has increased by 0.5% to $1.97 [19][21] - **Stantec**: Focused on infrastructure and facilities, Stantec benefits from macroeconomic trends and maintains a disciplined approach to project execution, leading to margin improvement. Its 2025 EPS estimate has increased by 1% to $3.89 [24][26]

Core Insights - VinFast is participating in Electrify Expo Chicago 2025, highlighting its commitment to the electric vehicle market and global expansion strategy [1][6] - The company will showcase its VF 8 and VF 9 electric SUVs, emphasizing their design, technology, and safety features [2][4] - VinFast aims to enhance brand awareness and community engagement through partnerships with local dealers [4][6] Product Details - The VF 8 SUV is priced starting at $39,900, with lease rates from $279/month, while the VF 9 starts at $62,900 with lease rates from $449/month [4] - Both models come with competitive financing options, including 0% financing promotions [4] - VinFast offers a robust warranty policy of 10 years or 125,000 miles for vehicles and 10 years with unlimited mileage for batteries [5] Market Strategy - The company has transitioned from a direct-to-consumer sales model to a dealership-based network across 14 states to improve customer access [7] - VinFast is expanding into high-potential markets such as Indonesia, the Philippines, India, and the Middle East, following its establishment in North America and Europe [8] - The company is committed to adapting its business strategies based on market analysis and macroeconomic conditions [9]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements for the second quarter and first half of 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $759.4 million, while stockholders' equity increased due to a reduction in total liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 4, 2025 | January 3, 2025 | | :--- | :--- | :--- | | **Total current assets** | $425,651 | $446,881 | | **Total assets** | **$759,430** | **$777,270** | | **Total current liabilities** | $134,969 | $163,183 | | **Total liabilities** | **$331,654** | **$356,202** | | **Total stockholders' equity** | **$427,776** | **$421,068** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Revenues grew modestly in Q2 and H1 2025, but net income declined year-over-year due to higher operating expenses Key Financial Performance (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $141,962 | $140,536 | +1.0% | $287,469 | $285,469 | +0.7% | | **Operating Income** | $17,177 | $35,744 | -51.9% | $61,609 | $66,457 | -7.3% | | **Net Income** | $26,553 | $29,227 | -9.1% | $53,203 | $59,369 | -10.4% | | **Diluted EPS** | $0.52 | $0.57 | -8.8% | $1.03 | $1.15 | -10.4% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased while cash used in financing activities rose significantly, driven by increased stock repurchases Cash Flow Summary for the Six Months Ended (in thousands) | Cash Flow Category | July 4, 2025 | June 28, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,496 | $58,771 | | Net cash used in investing activities | $(4,028) | $(2,628) | | Net cash used in financing activities | $(67,517) | $(39,829) | | **Net change in cash and cash equivalents** | **$(27,100)** | **$16,112** | - The significant increase in cash used for financing activities was primarily due to repurchases of common stock, which rose to **$32.7 million** in H1 2025 from **$5.7 million** in H1 2024[29](index=29&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue recognition, and segment data, providing crucial context to the financial statements - The company's revenue is primarily generated from time and materials contracts, which accounted for **80% of total revenues** in the first six months of 2025, consistent with the prior year[38](index=38&type=chunk) Segment Revenues for the Six Months Ended (in thousands) | Segment | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Engineering and other scientific | $243,115 | $239,948 | +1.3% | | Environmental and health | $44,354 | $45,521 | -2.6% | | **Total revenues** | **$287,469** | **$285,469** | **+0.7%** | - Changes in the market value of deferred compensation plan assets resulted in a **$17.0 million increase in compensation expense** and a corresponding gain in miscellaneous income for Q2 2025, significantly impacting reported operating income[58](index=58&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, highlighting modest revenue growth offset by lower net income due to rising expenses [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Segment performance analysis shows a decline in billable hours and utilization, with operating income impacted by deferred compensation and lease costs Q2 2025 vs Q2 2024 Segment Revenue Performance (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Engineering and other scientific | $120,980 | $118,477 | +2.1% | | Environmental and health | $20,982 | $22,059 | -4.9% | | **Total revenues** | **$141,962** | **$140,536** | **+1.0%** | - Key operational metrics declined in Q2 2025 compared to Q2 2024: - Billable hours decreased by **6%** to 359,000 - Utilization decreased to **72%** from 75% - Technical full-time equivalent employees decreased by **2%** to 958[83](index=83&type=chunk) - Compensation and related expenses increased **22.7%** in Q2 2025, primarily due to a **$16.1 million** YoY increase in deferred compensation expense, which is linked to market value changes of plan assets and offset in 'Other income, net'[86](index=86&type=chunk)[87](index=87&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $231.8 million in cash, despite a decrease from significant share repurchases and dividends Cash Flow Summary for H1 2025 (in thousands) | Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,496 | $58,771 | | Net cash used in investing activities | $(4,028) | $(2,628) | | Net cash used in financing activities | $(67,517) | $(39,829) | - The company extended its Arizona land lease, which will increase annual lease payments from approximately **$1.0 million to $6.2 million** beginning in January 2028[114](index=114&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) EBITDA and EBITDAS are presented as key non-GAAP performance metrics, both showing a decline in Q2 2025 compared to the prior year Reconciliation of Net Income to EBITDA and EBITDAS (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $26,553 | $29,227 | $53,203 | $59,369 | | Income taxes | 10,262 | 10,455 | 21,372 | 20,736 | | Interest income, net | (2,344) | (2,231) | (5,058) | (4,857) | | Depreciation and amortization | 2,520 | 2,486 | 5,012 | 4,810 | | **EBITDA** | **$36,991** | **$39,937** | **$74,529** | **$80,058** | | Stock-based compensation | 5,246 | 5,577 | 13,426 | 12,917 | | **EBITDAS** | **$42,237** | **$45,514** | **$87,955** | **$92,975** | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate risk on its cash equivalents and foreign currency risk from its international operations - The company's primary foreign currency exposures are to the **British Pound, Euro, Chinese Yuan, and Hong Kong Dollar**[122](index=122&type=chunk) - As of July 4, 2025, the company had net assets denominated in non-functional currencies of approximately **$3.4 million** and does not use foreign exchange contracts to hedge its currency exposures[124](index=124&type=chunk)[125](index=125&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[126](index=126&type=chunk) [PART II – OTHER INFORMATION](index=33&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently engaged in any material legal proceedings - Exponent is **not engaged in any material legal proceedings**[128](index=128&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There were **no material changes** from risk factors as previously discussed in the Company's 2024 Annual Report[129](index=129&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 365,000 shares for $27.6 million in Q2 2025, with $61.6 million remaining under its repurchase authorization Share Repurchases for the Three Months Ended July 4, 2025 | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Approximate Dollar Value Remaining for Repurchase (thousands) | | :--- | :--- | :--- | :--- | | April 5 to May 2 | 102 | $74.94 | $81,610 | | May 3 to May 30 | - | - | $81,610 | | May 31 to July 4 | 263 | $75.95 | $61,610 | | **Total** | **365** | **$75.66** | **$61,610** | [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of a Rule 10b5-1 trading plan by the company's President and CEO for potential stock sales - On May 15, 2025, CEO Catherine Ford Corrigan adopted a **Rule 10b5-1 trading plan** for the sale of **16,128 shares**, expiring on August 30, 2026[134](index=134&type=chunk)

Core Viewpoint - Exponent reported stable performance in Q2 FY2025 with a slight revenue increase, but faced profitability pressures due to rising operating costs and mixed demand trends across segments [1][5][7] Financial Performance - Total revenue for Q2 FY2025 was $142.0 million, a 1.1% increase from $140.5 million in Q2 FY2024 [2] - Diluted earnings per share (EPS) decreased by 8.8% to $0.52 from $0.57 year over year [2] - EBITDA fell to $37.0 million, down 7.3% from $39.9 million in Q2 FY2024, with margins declining to 27.8% from 30.2% [2][7] - Net income decreased by 8.9% to $26.6 million compared to $29.2 million in Q2 FY2024 [2][7] Business Model and Strategy - Exponent operates as a technical consulting firm, focusing on specialized projects in engineering, data science, biomedical engineering, and environmental health [3] - The company aims to broaden its client base, increase technical specialization, and expand into emerging areas like digital health and artificial intelligence [4] Segment Performance - The Engineering and Other Scientific segment, contributing 85% of revenues before reimbursements, grew by 1% year over year, driven by demand for dispute-related consulting [5][10] - The Environmental and Health segment, accounting for 15% of revenues before reimbursements, contracted by 4% due to reduced activity in proactive services [6][10] Client Base and Market Trends - Exponent's client base is diversified across various industries, which helps mitigate risk [11] - Recent growth was noted in dispute-related activities in construction and medical devices, with potential future growth in digital health and AI usability [11] Future Outlook - Management expects low-single-digit revenue growth before reimbursements for FY2025, with EBITDA margins projected between 26.25% and 27.0% [14] - For Q3 FY2025, revenue before reimbursements is anticipated to increase by mid-single-digit percentages year over year [14] - The board declared a quarterly dividend of $0.30 per share, continuing a steady capital return policy [15]

Core Viewpoint - Exponent (EXPO) reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.57 per share a year ago, indicating an earnings surprise of +8.33% [1][2] Financial Performance - The company achieved revenues of $132.87 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.38% and showing a slight increase from $132.43 million year-over-year [2] - Over the last four quarters, Exponent has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] Stock Performance - Exponent shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Exponent is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $133.65 million, while the estimate for the current fiscal year is $1.96 on revenues of $530.18 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock performance [6] Industry Context - The Consulting Services industry, to which Exponent belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Total revenues in Q2 2025 increased by 1% to $142 million, while net revenues were approximately flat at $132.9 million compared to the same period in 2024 [11] - Net income decreased to $26.6 million or $0.52 per diluted share, down from $29.2 million or $0.57 per diluted share in the prior year [11] - EBITDA decreased by 7% to $37 million, with a margin of 27.8% of net revenues, compared to $39.9 million or 30.2% in the same period in 2024 [12] - Utilization in Q2 was 72.1%, down from 75.1% in the same period of 2024 [13] Business Line Data and Key Metrics Changes - The engineering and other scientific segment represented 85% of net revenues, with a 1% increase driven by demand in construction, automotive, and medical device sectors [15] - The Environmental and Health segment, representing 15% of net revenues, saw a 4% decrease due to lower activity in proactive projects in life sciences and chemical regulation services [16] Market Data and Key Metrics Changes - Demand for failure analysis expertise drove growth in dispute-related activities, particularly in construction, automotive, and medical device sectors [4] - Proactive engagements in the utilities sector were strong, while there was softer demand for chemical regulatory work [5] Company Strategy and Development Direction - The company is focused on capitalizing on market drivers at the intersection of safety, health, and the environment, with a strong emphasis on recruiting top-tier talent [8] - Engagements in transformative innovations, including distributed energy systems and AI applications, are seen as significant long-term growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate complex challenges and capitalize on growth drivers, particularly in safety-critical systems and advanced technologies [23] - The company expects revenues before reimbursements to grow in the low single digits for the full year 2025, with EBITDA margins projected between 26.5% and 27% [17] Other Important Information - The company is experiencing a return to headcount growth, with expectations of a 1% to 2% increase in technical full-time equivalent employees for Q3 2025 [18] - Capital expenditures for the full year 2025 are expected to be between $10 million and $12 million [21] Q&A Session Summary Question: How did the utilization play out in the quarter? - Management indicated that the decline in utilization was partly due to the July 4 holiday and a step down from strong utilization last year [26][27] Question: Can you discuss trends related to easing tariff uncertainty? - Management noted that clients are cautious due to tariff uncertainties, which has caused some delays in engagements, particularly in the chemical sector [28][30] Question: What are the growth rates in proactive and reactive sides of the business? - Growth rates were similar in both proactive and reactive sides, with litigation-related work growing 7% year over year [45][46] Question: How has the regulatory environment impacted demand? - Management acknowledged some delays due to the EPA's movement but stated that most work continues and clients are committed to their global product strategies [47][50]

Exponent Q2 2025 Earnings Release [Management Commentary](index=1&type=section&id=Management%20Commentary) Exponent's Q2 2025 revenues were flat but exceeded expectations, driven by dispute-related growth in construction, automotive, and medical devices, with optimism for emerging digital health, AI, and distributed energy opportunities - Q2 revenues were flat but surpassed expectations, driven by disciplined execution[2](index=2&type=chunk) - Growth was driven by dispute-related services in the construction, automotive, and medical device sectors[2](index=2&type=chunk) - Proactive work in the utilities sector was strong, but offset by weaker demand in chemical regulatory services[2](index=2&type=chunk) - The company sees significant growth potential in emerging areas like digital health, AI usability, and distributed energy systems[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) For Q2 and H1 2025, Exponent reported flat revenues, but net income, EPS, and EBITDA declined due to a higher tax rate and negative tax impact from share-based awards [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) In Q2 2025, total revenues increased 1% to $142.0 million, while revenues before reimbursements were flat, with net income, diluted EPS, and EBITDA all declining Q2 2025 vs. Q2 2024 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $142.0M | $140.5M | +1% | | Revenues before Reimbursements | $132.9M | $132.4M | ~0% | | Net Income | $26.6M | $29.2M | -8.9% | | Diluted EPS | $0.52 | $0.57 | -8.8% | | EBITDA | $37.0M | $39.9M | -7.3% | | EBITDA Margin | 27.8% | 30.2% | -240 bps | - The consolidated tax rate increased to **27.9%** in Q2 2025 from **26.3%** in Q2 2024, with the tax impact from share-based awards being immaterial in Q2 2025 compared to a **$0.7 million** benefit in Q2 2024[5](index=5&type=chunk) [Year-to-Date 2025 Financial Results](index=1&type=section&id=Year-to-Date%202025%20Financial%20Results) For H1 2025, total revenues grew 1% to $287.5 million, with revenues before reimbursements flat, while net income, diluted EPS, and EBITDA all decreased H1 2025 vs. H1 2024 Financial Highlights | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $287.5M | $285.5M | +1% | | Revenues before Reimbursements | $270.3M | $269.6M | ~0% | | Net Income | $53.2M | $59.4M | -10.4% | | Diluted EPS | $1.03 | $1.15 | -10.4% | | EBITDA | $74.5M | $80.1M | -7.0% | | EBITDA Margin | 27.6% | 29.7% | -210 bps | - The company experienced a negative tax impact of **$0.5 million** from share-based awards in H1 2025, compared to a positive benefit of **$1.7 million** in H1 2024, contributing to a higher consolidated tax rate of **28.7%** versus **25.9%** last year[8](index=8&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) Exponent announced a $0.30 quarterly cash dividend and in H1 2025 paid $31.6 million in dividends and repurchased $32.7 million of common stock, demonstrating commitment to shareholder returns - Announced a quarterly cash dividend of **$0.30** to be paid on September 19, 2025[10](index=10&type=chunk) Capital Allocation in H1 2025 | Activity | Amount | | :--- | :--- | | Dividends Paid | $31.6M | | Common Stock Repurchased | $32.7M | | Cash and Cash Equivalents (End of Period) | $231.8M | [Business Segment Overview](index=1&type=section&id=Business%20Overview) Q2 2025 segment performance was mixed, with 'Engineering and Other Scientific' growing 1% from dispute services, while 'Environmental and Health' declined 4% - The Engineering and Other Scientific segment, representing **85%** of Q2 revenues before reimbursements, grew **1%** year-over-year, driven by dispute services in construction, automotive, and medical devices[12](index=12&type=chunk) - The Environmental and Health segment, representing **15%** of Q2 revenues before reimbursements, decreased by **4%** year-over-year due to lower proactive project activity in life sciences and chemical regulatory services[13](index=13&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Exponent maintains full-year 2025 guidance for low single-digit revenue growth and 26.50-27.0% EBITDA margin, anticipating mid-single-digit revenue growth for Q3 Q3 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements growth | Up in the mid-single digits | | EBITDA % of revenues before reimbursements | 26.75% to 27.75% | Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements growth | Grow in the low single digits | | EBITDA % of revenues before reimbursements | 26.50% to 27.0% | - The company's full-year comparison faces a headwind as fiscal year 2025 is a **52-week** year, whereas fiscal 2024 was a **53-week** year[14](index=14&type=chunk) [Appendix: Financial Statements](index=3&type=section&id=Appendix%3A%20Financial%20Statements) This section presents Exponent's unaudited condensed consolidated financial statements, including Statements of Income, Balance Sheets, and a reconciliation of GAAP Net Income to non-GAAP EBITDA and EBITDAS [Condensed Consolidated Statements of Income](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The income statement details revenues and expenses, showing declining operating income and net income for Q2 and H1 2025 compared to prior year periods Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $141,962 | $140,536 | $287,469 | $285,469 | | Operating income | $17,177 | $35,744 | $61,609 | $66,457 | | Income before income taxes | $36,815 | $39,682 | $74,575 | $80,105 | | Net income | $26,553 | $29,227 | $53,203 | $59,369 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheet as of July 4, 2025, shows decreases in cash, cash equivalents, and total assets compared to year-start, with total liabilities also down and stockholders' equity slightly up Balance Sheet Highlights (in thousands) | Line Item | July 4, 2025 | January 3, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $231,801 | $258,901 | | Total current assets | $425,651 | $446,881 | | Total assets | $759,430 | $777,270 | | Total liabilities | $331,654 | $356,202 | | Total stockholders' equity | $427,776 | $421,068 | [Non-GAAP Reconciliation (EBITDA & EBITDAS)](index=5&type=section&id=EBITDA%20and%20EBITDAS) This table reconciles Net Income to non-GAAP EBITDA and EBITDAS, both of which decreased for Q2 2025 compared to Q2 2024 EBITDA & EBITDAS Reconciliation (in thousands) | Line Item | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $26,553 | $29,227 | $53,203 | $59,369 | | EBITDA | $36,991 | $39,937 | $74,529 | $80,058 | | EBITDAS | $42,237 | $45,514 | $87,955 | $92,975 |

Core Insights - Exponent, Inc. reported flat revenues for Q2 2025 but exceeded expectations, driven by growth in dispute-related activities in construction, automotive, and medical device sectors [2][4] - The company is optimistic about early-stage work in digital health, AI usability, and distributed energy systems, indicating significant growth potential [2][3] Financial Results - Total revenues for Q2 2025 increased by 1% to $142.0 million compared to $140.5 million in Q2 2024, while revenues before reimbursements were approximately flat at $132.9 million [4] - Net income decreased to $26.6 million, or $0.52 per diluted share, down from $29.2 million, or $0.57 per diluted share in Q2 2024 [5] - EBITDA for Q2 2025 decreased to $37.0 million, representing 27.8% of revenues before reimbursements, compared to $39.9 million, or 30.2% in Q2 2024 [6] Year-to-Date Financial Performance - For the first half of 2025, total revenues increased by 1% to $287.5 million, while revenues before reimbursements were approximately flat at $270.3 million [7] - Net income for the first half of 2025 was $53.2 million, or $1.03 per diluted share, down from $59.4 million, or $1.15 per diluted share in the same period of 2024 [8] - EBITDA for the first half of 2025 decreased to $74.5 million, or 27.6% of revenues before reimbursements, compared to $80.1 million, or 29.7% in the first half of 2024 [9] Business Segments - The engineering and other scientific segment accounted for 85% of revenues before reimbursements in Q2 2025, with a 1% increase in revenues driven by demand in construction, automotive, and medical device sectors [11] - The environmental and health segment represented 15% of revenues before reimbursements in Q2 2025, with a 4% decrease in revenues due to lower activity in life sciences and chemical regulatory services [12] Business Outlook - The company is optimistic about market opportunities and expects growth in the second half of 2025, maintaining its full-year guidance [13] - Exponent anticipates mid-single-digit growth in revenues before reimbursements and EBITDA to be between 26.75% and 27.75% of revenues before reimbursements for the full fiscal year 2025 [16]