EXPONENT Business Summary

Exponent Inc. (EXPO) operates a premium scientific and engineering consulting model, generating the vast majority of its revenue through professional service fees billed on an hourly basis, supplemented by reimbursements for out-of-pocket expenses. The company’s operations are divided into two primary segments: Engineering and Other Scientific, which accounts for approximately 85% of net revenues, and Environmental and Health, representing the remaining 15%. Exponent specializes in multidisciplinary failure analysis and proactive risk management, recently expanding its footprint in AI-driven product development, consumer electronics user research, and utility infrastructure safety. In the competitive landscape, Exponent contends with firms such as FTI Consulting, Huron Consulting Group, and ICF International; however, it maintains a distinct market position by leveraging deep technical and academic expertise to command higher EBITDA margins—projected at 27.6% to 28.1% for 2026—than broader management or financial advisory peers. Founded in 1967 as Failure Analysis Associates by a group of Stanford-affiliated engineers including Bernard Ross, Alan Tetelman, John Shyne, Marsh Pound, and Sathya Hanagud, the firm is currently led by President and CEO Dr. Catherine Ford Corrigan, an MIT and University of Pennsylvania alumna who has been with the company since 1996. The executive leadership team includes Executive Vice President and CFO Richard L. Schlenker and Chief Technical Officer Subbaiah V. Malladi, both of whom possess extensive tenures in technical consulting. The company’s Board of Directors features high-pedigree members such as Chairman Paul Johnston (former Exponent CEO), Carol Lindstrom (former Vice Chairman at Deloitte), and Debra Zumwalt (Vice President and General Counsel of Stanford University), reflecting a governance structure deeply rooted in elite academic and professional services circles.