# EDGAR Filing Document

**Accession Number:** 0000851520
**File Stem:** 0001193125-26-082508
**Filing Date:** 2026-2
**Character Count:** 276416
**Document Hash:** be062f6fc113fdcab9690de26245a52d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-082508.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001193125-26-082508

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 104

**CONFORMED PERIOD OF REPORT**: 20260102

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** EXPONENT INC
- **CENTRAL INDEX KEY:** 0000851520
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MANAGEMENT CONSULTING SERVICES [8742]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 770218904
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0102

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18655
- **FILM NUMBER:** 26699488

**BUSINESS ADDRESS:**
- **STREET 1:** EXPONENT INC
- **STREET 2:** 149 COMMONWEALTH DRIVE
- **CITY:** MENLO PARK
- **STATE:** CA
- **ZIP:** 94025
- **BUSINESS PHONE:** 650-326-9400

**MAIL ADDRESS:**
- **STREET 1:** EXPONENT INC
- **STREET 2:** 149 COMMONWEALTH DRIVE
- **CITY:** MENLO PARK
- **STATE:** CA
- **ZIP:** 94025

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FAILURE GROUP INC
- **DATE OF NAME CHANGE:** 19930831

?xml version='1.0' encoding='ASCII'? 10-K

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM** 10-K

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☒ **Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended** January 2 **,** 2026 **.** 

**OR**

☐ **Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ________ to _________.**

**Commission File Number** 0-18655

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EXPONENT, INC.

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| Delaware | 77-0218904 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 149 Commonwealth Drive**,** Menlo Park**,** California | 94025 |
| (Address of principal executive offices) | (Zip Code) |

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**<u>(</u>**650**<u>)</u>** 326-9400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of Each Exchange on Which Registered** |
| Common Stock, par value $0.001 per share | EXPO | Nasdaq Global Select Market |

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Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. <br> Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. <br> Yes ☐ No ☒

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| |
|:---|
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |
| Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐ |

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| |
|:---|
| Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  |
| Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐ |

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

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| |
|:---|
| If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ |
| Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  |
| Yes ☐ No ☒  |

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The aggregate market value of the common stock held by non-affiliates of the registrant based on the closing sales price of the common stock as reported on the NASDAQ Global Select Market on July 4, 2025, the last business day of the registrant's most recently completed second quarter, was approximately $3.0 billion. Shares of the registrant's common stock held by each executive officer and director and by each entity or person that, to the registrant's knowledge, owned 10% or more of registrant's outstanding common stock as of July 4, 2025 have been excluded in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not necessarily a conclusive determination for other purposes. The number of shares of the registrant's common stock outstanding as of February 20, 2026 was 49,254,339.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's Definitive Proxy Statement for the registrant's 2026 Annual Meeting of Stockholders to be held on June 4, 2026 are incorporated by reference into Part III of this Annual Report on Form 10-K.

Auditor Name: KPMG, LLP Auditor Location: San Francisco, California Audit Firm ID: 185

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**EXPONENT, INC.**

**FORM 10-K ANNUAL REPORT**

**FISCAL YEAR ENDED January 2, 2026**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| PART I |  |  |
| Item 1. | [<u>Business</u>](#item_1_business) | 4 |
| Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 15 |
| Item 1B. | [<u>Unresolved Staff Comments</u>](#item_1b_unresolved_staff_comments) | 23 |
| Item 1C. | [<u>Cybersecurity</u>](#item_1c_cybersecurity) | 24 |
| Item 2. | [<u>Properties</u>](#item_2_properties) | 25 |
| Item 3. | [<u>Legal Proceedings</u>](#item_3_legal_proceedings) | 25 |
| Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 25 |
| PART II |  |  |
| Item 5. | [<u>Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of <br>Equity Securities</u>](#item_5_market_for_registrants_common_equ) | 26 |
| Item 6. | [<u>(Reserved)</u>](#item_6_selected_financial_data) | 27 |
| Item 7. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_7_managements_discussion_analysis_f) | 28 |
| Item 7A. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_7a_quantitative_qualitative_disclos) | 35 |
| Item 8. | [<u>Financial Statements and Supplementary Data</u>](#item_8_financial_statements_supplementar) | 36 |
| Item 9. | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#item_9_changes_in_disagreements_with_acc) | 36 |
| Item 9A. | [<u>Controls and Procedures</u>](#item_9a_controls_procedures) | 36 |
| Item 9B. | [<u>Other Information</u>](#item_9b_or_information) | 36 |
| Item 9C. | [<u>Disclosure Regarding Foreign Jurisdictions that Prevent Inspection</u>](#item_9c_disclosure_regarding_foreign_jur) | 36 |
| PART III |  |  |
| Item 10. | [<u>Directors, Executive Officers and Corporate Governance</u>](#item_10_directors_executive_ficers_corpo) | 37 |
| Item 11. | [<u>Executive Compensation</u>](#item_11_executive_compensation) | 37 |
| Item 12. | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder <br>Matters</u>](#item_12_security_ownership_certain_benef) | 37 |
| Item 13. | [<u>Certain Relationships and Related Transactions, and Director Independence</u>](#item_13_certain_relationships_related_tr) | 37 |
| Item 14. | [<u>Principal Accounting Fees and Services</u>](#item_14_principal_accounting_fees_servic) | 37 |
| PART IV |  |  |
| Item 15. | [<u>Exhibits and Financial Statement Schedules</u>](#item_15_exhibits_financial_statement_sch) | 38 |
| [<u>Exhibit Index</u>](#exhibit_index) | [<u>Exhibit Index</u>](#exhibit_index) | 67 |
| [<u>Signatures</u>](#signatures) | [<u>Signatures</u>](#signatures) | 70 |

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**FORWARD-LOOKING STATEMENTS**

The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. Due to such uncertainties and risks, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company does not intend to release publicly any updates or revisions to any such forward-looking statements.

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**<u>PART</u> <u>I</u>**

**Item 1. Business**

**GENERAL**

Exponent, Inc., together with its subsidiaries, ("Exponent", the "Company", "we", "us" and "our") is a science and engineering consulting firm that provides solutions to complex problems. Our interdisciplinary team of scientists, physicians, engineers, and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today. The firm leverages over 55 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes, ensure the safety and health of their users, and address the challenges of sustainability.

The history of Exponent, Inc. goes back to 1967, with the founding of the partnership Failure Analysis Associates, which was incorporated the following year in California and reincorporated in Delaware as Failure Analysis Associates, Inc. in 1988. The Failure Group, Inc. was organized in 1989 as a holding company for Failure Analysis Associates, Inc. and changed its name to Exponent, Inc. in 1998.

**CLIENTS**

*General*

Exponent serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation and other sectors of the economy. Many of our engagements are initiated directly by large corporations or by lawyers or insurance companies whose clients anticipate, or are engaged in, litigation related to their products, equipment, processes or services. The scope of our services in failure prevention and technology evaluation has grown as the technological complexity of products has increased over the years. During 2025, we provided services representing approximately 21%, 20%, 16% and 11% of revenues to clients in the consumer products industry, energy and utilities industries, transportation industry and chemical industry, respectively.

*Pricing and Terms of Engagements*

We provide our services on either a fixed-price basis or on a time and material basis, charging in the latter case hourly rates for each staff member involved in a project, based on their skills and experience. Our standard rates for professionals range from $225 to $1,375 per hour. We implement bill rate increase annually at the start of our fiscal year. Our engagement agreements typically provide for monthly billing, require payment of our invoices within 30 days of receipt and permit clients to terminate engagements at any time. Clients normally agree to indemnify us and our personnel against liabilities arising out of the use or application of the results of our work or recommendations.

**SERVICES** 

Exponent provides high quality engineering and scientific consulting services to clients around the world. Our service offerings are provided on a project-by-project basis. Many projects require support from multiple practices. We currently operate the following 17 practices in two reportable operating segments, (i) Engineering and Other Scientific and (ii) Environmental and Health:

**ENGINEERING AND OTHER SCIENTIFIC** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Biomechanics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Biomedical Engineering & Sciences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Civil & Structural Engineering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Construction Consulting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Data Sciences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Electrical Engineering & Computer Science

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Human Factors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Materials Science & Electrochemistry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Mechanical Engineering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Metallurgical & Corrosion Engineering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Polymers & Chemistry

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Thermal Sciences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Vehicle Engineering

**ENVIRONMENTAL AND HEALTH**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Chemical Regulation & Food Safety

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Ecological & Biological Sciences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Environmental & Earth Sciences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Health Sciences

**ENGINEERING AND OTHER SCIENTIFIC** 

**Biomechanics**

Our Biomechanics Practice applies engineering principles and biomechanical knowledge to address intricate challenges at the intersection of biology, healthcare, and engineering. Our expertise enables us to comprehend and evaluate the interaction between the human body as a biological system and the physical environment. This analysis facilitates the identification of the causes, nature, and severity of injuries, as well as the potential impact and optimization of human health and well-being. We apply biomechanical principles to assess the injury potential associated with the use and misuse of consumer and industrial products. Furthermore, we extend these principles to support the development and integration of wearable and digital technology solutions, tailored to specific use cases and user outcomes.

Over the past several years, our biomechanics staff conducted analyses of human injuries that occurred while individuals were utilizing a diverse range of products, including recreational vehicles, sporting goods, trucks, trains, aircraft, industrial equipment, and automobiles. Additionally, they evaluated the implications of utilizing protective devices (such as restraint systems, airbags, and helmets) in reducing the likelihood of injury and assessed injuries in various settings, including workplaces, homes, and recreational activities. Our consultants also evaluated product designs for performance, hazards, and injury risks to assist clients with design modifications, address consumer feedback, and respond to regulatory requirements. Finally, they designed and conducted a series of large-scale laboratory-based and subsequent clinical validation and benchmarking efforts to support the design, development, and adoption of fit-for-purpose solutions.

**Biomedical Engineering and Sciences** 

Our Biomedical Engineering and Sciences Practice applies engineering principles and scientific methodologies to medical technologies, including the evaluation of designs and performance of medical devices, pharmaceuticals, and biologics. Our engineers and scientists assist clients with characterization of biomaterials, medical devices, and their interactions with pharmaceuticals, cells, and tissues. To assist in regulatory clearance and approval, we perform preclinical testing, help formulate related regulatory strategy, and conduct design verification and validation. We also assist with design and manufacturing failure analyses, root cause assessment, recall management, and medical device explant analysis. In addition, our staff performs analysis of clinical outcomes for medical devices and related procedures using administrative claims databases. Our expertise is also utilized in product liability, intellectual property litigation, regulatory investigation support, technology acquisition and due diligence matters.

**Civil & Structural Engineering**

Our Civil & Structural Engineering Practice brings together decades of expertise to offer a comprehensive, multidisciplinary approach to promoting the safety, durability, and economic viability of a wide range of infrastructure assets. We address the challenges inherent in designing, constructing, and maintaining buildings, bridges, tunnels, pipelines, and industrial facilities—investigating the extent to which these structures perform their essential functions under a variety of loading conditions and natural hazards. Our team, which includes structural engineers, geotechnical experts, architects, material scientists, and geologists, is dedicated to identifying and solving complex engineering problems. Whether it is evaluating structural failures due to natural or human-induced phenomena, or investigating soil issues such as landslides, foundation and retaining wall damage, and dam or levee failures, we leverage sophisticated simulation tools, on-site inspections, laboratory testing, and state-of-the-art remote sensing technologies to provide actionable insights and recommendations for remediation.

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In addition to failure investigations and repair recommendations, we specialize in assessment and mitigation of risk to the built environment associated with hazards such as hurricanes, flooding, wildfires, earthquakes, explosions, ground movement, and aging infrastructure. We have assessed such risks to high-rise buildings, bridges, tunnels, industrial facilities, pipelines and nuclear power plant structures and provided testimony in the U.S. and international courts of law. Our expert consultation ensures that clients—from property owners and contractors to utilities and government agencies—receive the highest level of technical support and innovative solutions to complex engineering challenges.

**Construction Consulting** 

Our Construction Consulting Practice provides project advisory, risk management, strategic planning, dispute resolution, and delay and damages analysis services on construction and engineering projects. The practice operates across multiple industry sectors, including utilities, data centers, transportation, infrastructure, oil and gas, power generation, and healthcare.

Our team of advisors and experts is engaged on domestic and international projects, supporting clients throughout the project lifecycle. Engagements range from establishing construction oversight and risk management processes, to managing programs and projects, and analyzing and resolving cost and schedule impact claims. The practice is staffed by a multidisciplinary team that includes construction and civil engineers, project and program managers, project controls engineers, schedulers, and cost engineers. We provide construction consulting services to public and private sector clients, including corporations, law firms, and government agencies.

**Data Sciences**

Our Data Sciences Practice comprises our core capabilities in artificial intelligence, machine learning, statistics, data analytics, and dedicated data collection. Drawing on experience across a breadth of engineering, science, health, and environmental applications, we assist clients with their most complex data and analysis challenges at all stages of the product or process life cycle. Our team of interdisciplinary scientists and engineers decodes complex systems and gathers the right data for better performance, reliability, and security. User-focused visualizations support data-driven decision-making and help clients measure risks and benefits to determine appropriate courses of action. Using rigorous statistical methods, our team can help assess and improve quality and reliability and mitigate risk. Our experience helps clients build products that perform for a wide variety of users while preventing data bias, collecting personal data with consideration for privacy, and managing the risks associated with global data collection.

During the past year, our team worked on diverse projects for industrial, government, and legal clients. We performed advanced model development to manage risks for physical systems, assessments of manufacturing quality systems, large-scale data collections to train algorithms, and developed sampling plans associated with product recall campaigns.

**Electrical Engineering & Computer Science** 

Our Electrical Engineering and Computer Science Practice offers a broad range of expertise to address complex issues for industrial, government and legal clients. Our power engineers advise clients on challenges relating to reliability of electrical systems, failures in power generation, transmission and distribution, such as for powering Artificial Intelligence Data Centers, as well as on distributed generation, and renewables. In the area of energy storage, we are a leader in the industry in expertise and capabilities for safety of large format batteries, such as Electric Vehicles and Battery Energy Storage Systems.

Our team of electronic engineers works on failure analysis, product robustness and reliability for consumer devices, industrial electronics and the health industry. Our computer scientists and engineers advise high-tech industry clients and work with computer-controlled applications to evaluate product safety and software reliability. The computer science and engineering expertise we offer encompasses a breadth of areas including machine learning and artificial intelligence, information and numerical sciences, algorithms and data structures, computer graphics, computer architecture, networking and communications, as well as cybersecurity and cryptography. We operate laboratories for testing heavy equipment and electronics and we have broad capabilities in computer software analysis.

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Over the past year, we performed a wide array of investigations ranging from assessing damage to electrical power infrastructure from the effect of weather-related events to working with clients to develop sophisticated machine learning algorithms applied to large quantities of unstructured data. We continue to work with consumer electronics manufacturers and the transportation industry on the reliability and robustness of computer-controlled equipment for user safety.

**Human Factors**

Our Human Factors Practice evaluates human performance and safety in product and system use. Our consultants study how the limitations and capabilities of people, including memory, perception, sensation, attention, reaction time, judgment, physical size and dexterity, affect the way they use a product, interact with other people, an organization or an environment, process information or participate in an activity.

We review instructions, warnings and labeling issues related to consumer products, pharmaceuticals, motor vehicles, medical devices and industrial products and processes supporting the development of safety information and collateral materials to accompany products and processes and assessing claims that the information provided was inadequate.

We apply our expertise in human behavior, warnings, and decision making in class action suits, and in evaluating claims seeking to establish, or certify, a class. In addition, we assist manufacturers with compliance with regulatory guidelines related to products and facility procedures and work with them regarding analysis of adverse event reports and consumer complaints in publicly available databases overseen by the Consumer Product Safety Commission and the U.S. Food and Drug Administration.

We examine the role that attention plays in human perception, sensation, memory, and behavior, and how attention, inattention, and distraction may affect safety in a wide range of settings and activities (e.g., operating vehicles and machinery, walking, and using consumer products). We address the reliability of human memory and retrospective reporting in the gathering of fact-based evidence. We utilize scientific investigations and research (e.g., human perception, reaction time, and looking behavior) to assess driver behavior in both accident investigations and during the design of automotive systems. Our Human Factors scientists have been actively engaged in research and project work supporting the National Highway Traffic Safety Administration, covering topics such as Advanced Driver Assistance Systems and automated vehicle technology, in order to understand and advise our clients on how these technologies may change the nature and dynamic of driving, and the role and performance of the driver.

We provide User Experience research, including focus groups, usability testing, and complex user studies with custom-tailored designs and analyses, across a wide range of industries, including consumer electronics, medical devices, and vehicle technologies. Our state-of-the-art Phoenix User Research Center, with 5,000 square feet of research space, has six lab suites, including a dedicated focus group room, an ophthalmological lab, a motion capture lab, and wearable eye tracking technology, plus connectivity to our vehicle test track. The scope of Human Factors engagements ranges from consulting on our clients' research to providing turnkey research solutions.

We perform incident investigations and root cause analyses of near-misses and accidents involving human error in occupational and industrial settings. Our Human Factors scientists have advanced technical systems training and experience required to understand how humans contribute to the initiation of, and emergency response to, explosions, fires, chemical releases, and major equipment failures in the manufacturing, utility, oil and gas, and construction industries, among others. We also capitalize on this knowledge to conduct human error risk and culture assessments to help clients proactively control human performance gaps, improve occupational and process safety performance, and create administrative controls and procedures.

In addition to helping clients address the frequency and severity of incidents related to human error, fatigue, and performance, these and other similar project activities can be leveraged to improve efficiency, reliability, and maintainability of normal operations.

**Materials Science & Electrochemistry**

Our Materials Science & Electrochemistry Practice leverages expertise in materials behavior and electrochemical systems to help clients design safer, more reliable, and higher-performing products. As advanced materials and electrochemical technologies have become increasingly central to modern devices, understanding how they function — and fail — is essential to ensuring product safety, durability, and competitive performance.

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We apply decades of experience in materials characterization, failure analysis, and product development to evaluate how materials respond to mechanical, chemical, thermal, and environmental stresses. Our consultants address challenges involving brittle materials, thin films, coatings, nanomaterials, optical materials, and transport phenomena, helping clients select appropriate materials, assess performance, and optimize functionality.

Our electrochemistry expertise supports technologies such as batteries, fuel cells, sensors, electrolysis systems, and industrial electrochemical processes. We assist clients in understanding degradation mechanisms, evaluating safety and reliability, and advancing next-generation electrochemical designs.

Over the past several years, our teams have conducted multidisciplinary investigations involving product failures, performance claims, and risk assessments across industries including consumer electronics, energy, medical device, and transportation. We also provide expert witness support in matters involving product liability, intellectual property, and trade secrets, supported by our strong foundation in direct industrial consulting.

**Mechanical Engineering**

We provide clients with a detailed analysis of current and alternative designs of mechanical systems to identify vulnerabilities before failures occur, develop appropriate risk mitigation methods, and provide post-failure investigations.

Our consultants review the performance and reliability of industrial processes, manufactured products, and engineered systems, and we determine the root cause of failures. Further, we assist in legal and insurance matters, failure investigations, product recall investigations, internal compliance programs, product development, workplace safety evaluations, and intellectual property matters.

Our staff members develop and utilize detailed and validated computational models and laboratory experimental methods to evaluate products, systems, and equipment. We perform field inspections, rely on industry standards, and use operational data to inform our analyses. We have performed these activities in a broad range of industries including transportation, energy, industrial equipment, building systems, medical devices, and consumer products.

During the past year, our mechanical engineers worked on a wide variety of projects including international construction disputes, product recalls, and mechanical safety in product development.

**Metallurgical & Corrosion Engineering**

Our in-depth knowledge of materials science, corrosion, and metallurgical engineering combined with the breadth of our collective experience across many industries and disciplines gives our Metallurgical & Corrosion Engineering Practice the ability to efficiently provide our clients with solutions to their complex problems. We use our knowledge and experience to understand how and why materials, products, and processes may not perform their intended function. Further, we use this knowledge to help our clients minimize the risk for future failures of new products as well as current construction and aging infrastructure.

Over the past year, our Metallurgical & Corrosion Engineering Practice helped clients solve critical materials-related issues in the transportation, energy, utilities, infrastructure, medical device, and chemical processing fields. Our support of dispute resolution in international arbitration, domestic litigation, and general product liability fields was supported by our strong position in direct industrial consulting.

**Polymers & Chemistry**

Our Polymers and Chemistry Practice consults with industrial, government, legal, insurance and individual clients regarding polymers and textiles used in diverse applications as well as the chemistry, materials and processing aspects of infrastructure, medical device, automotive, construction, and other products that depend on highly controlled manufacturing environments.

We assist clients in understanding the short- and long-term performance of plastic, rubber, adhesive, coating, composite and other polymer-based material systems when challenged by physical, chemical, thermal, and other operational stressors. Our work also includes customized chemical, mechanical, thermal, and rheological testing and leverages expanding internal infrastructure for instrumented analysis and advanced imaging capabilities.

Our consultants participate in product development programs, perform failure analyses, intellectual property assessment and provide support to clients involved in regulatory and legal proceedings. Clients value our technical

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expertise related to chemistry, formulation, manufacturing and materials performance, our understanding of the history and evolution of these materials, and our ability to assist them in identifying and incorporating emerging materials and manufacturing technologies into their businesses.

During the past year, significant program activities addressed aspects of consumer electronics, wearable devices, implantable medical devices, drug delivery systems, medical diagnostics, building materials, fluid handling systems, oil and gas applications, the plastics supply chain, fire retardancy and flammability, technology scouting, materials science aspects of health risk, service life prediction, sustainability, and intellectual property related to consumer, recreational, medical, pharmaceutical, food packaging, conventional and alternative energy, and other products.

**Thermal Sciences**

Our Thermal Sciences Practice provides expert analysis to investigate failures involving thermo-fluid systems, fires, and explosions in industrial, residential, commercial, and transportation sectors. We have investigated and analyzed thousands of thermal incidents ranging from high loss accidents in the oil and gas sector and major wildland fires, to small insurance claims. Information gained from these analyses has allowed us to also assist clients in proactively making their assets and products safer.

Our staff, consisting of mechanical, chemical, fire protection, aeronautical and astronautical and nuclear engineers, have assisted clients in assessing risk to, and from, their facilities, consumer product recalls, regulatory compliance and frequently provide expert testimony in domestic litigation and international arbitration. Our engineers use advanced computational fluid dynamics, fire, and explosion modeling tools to supplement our analytical, experimental, and field-based activities. Preventive services include process safety hazard analysis for the chemical, oil and gas, and semiconductor industries, fire protection engineering, product development support, risk-based asset management, and dust explosion consulting.

In recent years, our Thermal Sciences Practice has developed tools to evaluate fire and explosion risks of lithium-ion batteries in applications including consumer products, vehicles, and grid-scale energy storage. We continue to be very active in wildland fire investigation and continue to assist our clients in making informed risk-based decisions related to their assets and wildfires. We have also developed analytical tools to assist utility clients assess the risk of ignition from their infrastructure.

During the past year, we have continued our work in oil and gas exploration and production, liquefied natural gas and downstream oil and gas. Our work in fire detection and protection related issues has remained strong, and our work in consumer product recall and international arbitration has continued.

**Vehicle Engineering**

We have performed thousands of investigations for the automotive, trucking, recreational vehicle, marine, aerospace, and rail industries. Internal research programs and client projects have resulted in technological contributions that have assisted manufacturers in the understanding of product performance and provided insight to government agencies in establishing policy and regulations. Information gained from these analyses has also assisted clients in assessing preventive measures related to the design of their products, as well as evaluating failures.

Our Test and Engineering Center located in Phoenix, Arizona, is used for our most complex testing and analysis. We have gained a worldwide reputation for our ability to mobilize resources expeditiously and efficiently, integrate a broad array of technical disciplines, and provide valuable insight that is objective and withstands rigorous scrutiny. Many of our projects involve addressing the cause of accidents and our clients rely on us to determine what happened in an accident and why it happened. In many cases, clients also want us to assess what could have been done to reduce the severity of the accident or to mitigate occupant injuries to those involved.

Current advances in emerging transportation technologies and concepts allow our multi-disciplinary team of scientists, engineers, and analysts across numerous practices to focus on the development and implementation of connected vehicles, automated vehicles, connected/smart cities, and data analyses. Whether the objective is design analysis, component testing, failure analysis, or accident reconstruction, our knowledge of vehicle systems and engineering principles coupled with our experience from conducting full-scale tests aim to add insight and proficiency to every project.

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**ENVIRONMENTAL AND HEALTH SCIENCES**

**Chemical Regulation & Food Safety**

Our Chemical Regulation and Food Safety Practice includes both technical and regulatory specialists who are experts in dealing with foods, food ingredients, dietary supplements, pesticides and biocides (including conventional chemicals, microbials, antimicrobials/biocides, biopesticides, emerging technologies and products of biotechnology), industrial chemicals, pesticide/biocide devices, consumer products, medical devices and pharmaceuticals. We provide practical, scientific and regulatory support to meet global business objectives at every stage of the product life cycle, from research and development to retail and beyond.

During the past year, our Chemical Regulation and Food Safety staff have conducted a wide array of work. The European and U.S. sides of the practice were jointly involved with ongoing support of several new pesticide active ingredients and end-use products. The European side of our business was involved with many projects related to plant protection and biocidal product regulatory submissions, from new active substances and those under review to product-specific dossiers for European Union member states and the United Kingdom. This has included new technologies in plant protection that meet the regulatory pressures to achieve greater sustainability. We have also provided support for reviews of a large number of biocidal products through European and South Korean regulatory reviews. In addition, we provided many specialist assessments relating to human and environmental exposure, risk and product efficacy as well as national and international Maximum Residue Limit/import tolerance submissions covering countries such as South Korea and Japan. The U.S. side of our business was also involved in many projects related to agrochemical, antimicrobial, emerging technologies and biochemical product regulatory submissions and approvals in the U.S., Canada, Brazil and Mexico. These included new active ingredients, end-use products, emerging technologies and import tolerances (EPA and FDA). In addition, we have supported several clients in the U.S. with U.S. Toxic Substances Control Act and U.S. Department of Agriculture Animal and Plant Health Inspection Service compliance. We have supported clients with scientific and regulatory human and environmental exposure, risk assessments and product reviews. In Europe and the U.S., we continued to provide clients with regulatory compliance support for food contact materials, food additives, novel foods, nutrition-related analysis, as well as undertaking safety assessments for food and consumer products.

We also provided proactive and reactive product safety and litigation support. For industrial chemicals, we continued to provide full regulatory support for our clients who prepared and submitted registrations and risk assessments. Our European and U.S. offices were active in supporting our clients with their E.U. and U.K. Registration, Evaluation, Authorisation and Restriction of Chemicals and Toxic Substances Control Act regulatory requirements.

**Ecological & Biological Sciences** 

Our ecological and biological scientists provide strategic support on issues related to the environment and natural resources damages associated with chemicals and forest fires, international environmental disputes, ecosystem service assessments for businesses, adverse weather events/climate change, ecological risk assessment, ecotoxicology, novel remediation methods, restoration of wetlands and other natural resources, large development projects, resource utilization (such as mineral mining, oil and gas, wood pulp, transportation, etc.), agriculture land-use impacts, genomic assessments, product stewardship, and the use of chemicals and other products in commerce. Focusing on both legacy and emerging contaminants, the practice specializes in assessing the integrated effects of chemical, biological, and physical stressors on aquatic and terrestrial ecosystems. Many of these assessments utilize a causal analysis approach to determine causation systematically and transparently in complex and interrelated situations. The practice is comprised of nationally and internationally recognized experts that cover disciplines related to the fate and effects of chemical constituents and other stressors, including the ecological implications and risks associated with these projects.

**Environmental & Earth Sciences**

Our environmental scientists and engineers provide cost-effective, scientifically defensible and realistic assessments and solutions to complex environmental issues. We offer technical, regulatory, and litigation support to industries that include oil and gas, mining and minerals, chemicals, forest products, railroads, aerospace, development, and trade associations, and to municipal and governmental clients. Our consultants specialize in the areas of environmental fate and transport, environmental chemistry and forensics, remediation consulting, environmental engineering and waste management, and natural resources damages assessment.

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Our expertise also includes hydrology and hydrogeology, modeling and monitoring, water quality, water rights and water resources, extreme weather event and climate change risk management, and evaluation of environmental and social risks.

Our work frequently involves complex and high visibility environmental problems and issues, often the focus of environmental or toxic tort claims, where evaluation of contamination and historical reconstruction of events, releases, and doses are central to problem resolution.

We provide case-specific strategic and advisory consulting on risk mitigation, planning, and environmental regulatory and policy issues, as well as high-level technical strategic consulting to support critical business decisions and for complex matters where understanding the long-term implications of early technical actions is critical to managing overall liability.

**Health Sciences**

Our Health Sciences team includes epidemiologists, toxicologists, industrial hygienists, exposure scientists, biostatisticians, human health risk assessors, and physicians who collectively apply scientific, and medical principles to evaluate, characterize, and communicate human health risks in diverse occupational, environmental, community, and consumer settings. Our consultants bring decades of leadership experience across federal agencies, public health institutions, academia, and private industry, and are both nationally and internationally recognized for their expertise in toxicology, exposure science, risk assessment, chemical stewardship, and environmental health.

Our team provides proactive and responsive support to clients seeking to assess and mitigate human health risks associated with chemicals, pharmaceuticals, advanced materials, and industrial processes. This includes evaluation of potential exposures arising from product formulation and use, facility-specific site activities, environmental releases, and waste management. We also conduct in-depth scientific analyses to support clients addressing claims of adverse health effects linked to chemical exposures, product use, occupational activities, or alleged contamination events.

Our Health Sciences consultants have deep experience evaluating exposures to a wide array of chemical agents—including per- and polyfluoroalkyl substance (PFAS), volatile organic compounds, 1,4-dioxane, petrochemicals, pesticides, metals, solvents, polycyclic aromatic hydrocarbons (PAHs), asbestos, and airborne particulate matter, as well as physical agents such as power-frequency electromagnetic fields, and biological agents including bacteria, molds/fungi, and other microorganisms.

Our expertise spans the evaluation of health risks in occupational, residential, community, pharmaceutical, and consumer-product contexts. We regularly conduct exposure simulations and exposure reconstruction studies using laboratory and field-based approaches, and integrate toxicological, epidemiological, and mechanistic evidence to interpret potential human health outcomes. We also design health-protective exposure controls, contribute to corporate risk-management strategies for both emerging and legacy contaminants, and support occupational safety evaluations across a variety of industries.

Our team's work includes community-wide and site-specific environmental health assessments; disease cluster evaluations; survey research; cohort and case-control studies; application of real-world data platforms; advanced exposure simulation studies; biologically based modeling; weight-of-evidence evaluations; meta-analyses; and systematic reviews addressing toxicological, epidemiological, and mechanistic data. Our team members routinely interpret and develop human-health criteria, assess risk across the full lifecycle of products (from manufacturing through use and end-of-life), support due-diligence evaluations, and analyze potential liabilities associated with chemical constituents and exposures.

Our Health Sciences team also applies extensive experience in risk communication—supporting community engagement for populations near industrial facilities, energy production sites, and environmental releases; communicating complex scientific concepts to regulators, legal teams, and public audiences; and assisting clients with navigating federal, state, and international frameworks governing chemical safety, environmental compliance, and public health protection.

We collaborate closely with colleagues in Biomechanics, Biomedical Engineering & Sciences, Data Sciences, Human Factors, Polymer Science & Chemistry, Environmental & Earth Sciences, and additional technical disciplines. This interdisciplinary approach enhances our capabilities in toxic tort litigation, chemical and materials risk management, environmental remediation, healthcare data science (including use of electronic health records and claims data), and

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evaluation of vulnerable or high-risk populations. Our collective expertise allows us to deliver clear, comprehensive, scientifically grounded insights that enable clients to make informed, defensible, and data-driven decisions regarding human health risks.

**COMPETITION**

The marketplace for our services is fragmented and we face different sources of competition in providing various services. In addition, the services that we provide to some of our clients can be performed in-house by those clients. Clients that have the capability to perform such services themselves will retain Exponent or other independent consultants because of independence concerns.

In each of our practices, we believe that the principal competitive factors are: technical capability and breadth of services, ability to deliver services on a timely basis, professional reputation and knowledge of litigation and regulatory processes. Although we believe that we generally compete favorably in each of these areas, some of our competitors may be able to provide services acceptable to our clients at lower prices.

We believe that the barriers to entry are low and that for many of our technical disciplines, competition is increasing. In response to competitive forces in the marketplace, we continue to look for new markets for our various technical disciplines.

**HUMAN CAPITAL**

We are a global engineering and scientific consulting firm that partners with clients to deliver breakthrough insights and answers. In a world experiencing accelerating change over our 55+ years in business, we still deliver the same vital promise: technical excellence, unrivaled expertise, and a unique multidisciplinary approach to asking and answering the right questions. Our vision is to work together, with our teams and our clients, to solve the most formidable scientific and engineering challenges to create a safe, healthier, sustainable world.

We work toward this vision by creating an unrivaled environment of engineering and scientific expertise, collaboration, and opportunity for exceptional people to achieve breakthrough insights and objective solutions for our clients' vital challenges. Attracting, exciting, developing, and rewarding these people is central to our mission and our success. Our culture actively supports the development of our professionals and their potential by creating a stimulating, growth-oriented, and inclusive environment.

We keep our values and responsibilities front-and-center in everything we do: our hiring, our training, our processes, and our daily effort. These values include objectivity and work grounded in evidence and facts; excellence in our work and rigorous commitment to the highest standards of quality and integrity; respect and care for our teammates, peers, and partners; a commitment to a diversity of ideas, disciplines, and lived experiences; and a shared belief in the importance of service, responsibility, and making a positive difference for our peers, our professions, and our communities.

We advance scientific and engineering knowledge through the work of employees, but also through a comprehensive commitment to education, teaching, mentoring, publishing, and serving. Recognized leaders in their fields, Exponent staff serve on more than 250 individual scientific and engineering committees and advisory boards. Others serve in leadership roles or are actively working to develop technical standards. Exponent's professionals routinely contribute to peer-reviewed scientific literature and publish articles, chapters, and books each year. To date, Exponent staff have published more than 1,200 articles in scientific and engineering journals. And today, more than 50 Exponent consultants serve as professors, lecturers, instructors, and advisors at universities and academic institutions across the country and around the world.

As of January 2, 2026, we employed 1,212 full-time, part-time and intermittent employees, including 949 engineering and scientific staff, 62 technical support staff and 201 administrative and support staff. Our staff includes 922 employees with advanced degrees, of which 731 employees have achieved doctorate degrees. As of January 2, 2026 approximately 89% of our employees were located in the United States and 11% were located in other global regions.

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Technical full-time equivalent employees is a key metric that we use to analyze our revenues. During 2025 technical full-time equivalent employees increased 1% to 973 as compared to 967 during the prior year. To ensure a compelling total rewards philosophy and practice, we have practices in place to deliver fair and equitable compensation for employees based on their contribution and performance. We also offer a comprehensive set of benefits for employees and their families.

**AVAILABLE INFORMATION**

The address of our Internet website is www.exponent.com. We make available, free of charge through our website, access to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other periodic and current Securities and Exchange Commission ("SEC") reports, along with amendments to all of those reports, as soon as reasonably practicable after we file or furnish the reports with the SEC. Copies of material filed or furnished by us with the SEC may also be obtained by writing to us at our corporate headquarters, Exponent, Inc., Attention: Investor Relations, 149 Commonwealth Drive, Menlo Park, CA 94025, or by calling (650) 326-9400. The content of our Internet website is not incorporated into and is not part of this Annual Report on Form 10-K.

**EXECUTIVE OFFICERS OF THE REGISTRANT**

The executive officers of Exponent and their ages as of February 27, 2026 are as follows:

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| | | |
|:---|:---|:---|
| Name | Age | Position |
| Catherine Ford Corrigan, Ph.D. | 57 | President and Chief Executive Officer |
| Brad A. James, Ph.D. | 60 | Group Vice President |
| Brian Kundert | 51 | Chief Human Resources Officer |
| John D. Pye, Ph.D. | 55 | Vice President for Global Offices and Innovation |
| Joseph Rakow, Ph.D. | 49 | Group Vice President |
| Richard Reiss, Sc.D. | 59 | Group Vice President |
| Maureen T.F. Reitman, Sc.D. | 57 | Group Vice President |
| Joseph Sala, Ph.D. | 49 | Group Vice President |
| Richard L. Schlenker, Jr. | 60 | Executive Vice President, Chief Financial Officer and Corporate Secretary |

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Executive officers of Exponent are appointed by the Board of Directors of the Company (the "Board of Directors") and serve at the discretion of the Board of Directors until the appointment of their successors. There is no family relationship between any of the directors and officers of the Company.

**Catherine Ford Corrigan, Ph.D.,** joined the Company in 1996. She was promoted to Principal in the Biomechanics practice in 2002 and was appointed Group Vice President in May 2012. Dr. Corrigan was named President in July 2016. She was named Chief Executive Officer and elected to the Board of Directors in May 2018. Dr. Corrigan earned her Ph.D. (1996) in Medical Engineering and Medical Physics and M.S. (1992) in Mechanical Engineering from the Massachusetts Institute of Technology and her B.S. in Bioengineering from the University of Pennsylvania. Prior to joining Exponent, Dr. Corrigan was a researcher in the Orthopedic Biomechanics Laboratory at Beth Israel Hospital and Harvard Medical School. On February 9, 2021, Dr. Corrigan was elected to the National Academy of Engineering.

**Brad A. James, Ph.D.,** joined the Company in 1994. He was promoted to Principal Engineer in 2005 and was appointed Corporate Vice President in 2014. Dr. James was appointed Group Vice President on January 4, 2020. Dr. James received his Ph.D. (1994) in Metallurgical and Materials Engineering from the Colorado School of Mines and his B.S. (1988) in Metallurgical Engineering from the University of Washington. He is a licensed professional engineer in the states of California and Texas. Prior to joining Exponent, Dr. James was employed as a Research Engineer, Materials Performance Division, at the Babcock and Wilcox R&D Center.

**Brian Kundert,** joined the Company on July 10, 2023 as Vice President - Human Resources and was promoted to Chief Human Resources Officer on March 16, 2024. Prior to joining Exponent, Mr. Kundert was most recently the Global Director of Human Resources for the Resilience division at Arcadis, a global design and consulting company,

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where he worked for 19 years. Mr. Kundert holds a B.A. (1996) in Psychology from the University of California, Berkeley.

**John D. Pye, Ph.D.,** joined the Company in 1999. He was promoted to Principal Engineer in 2006 and was appointed Corporate Vice President in 2009. Dr. Pye was appointed Group Vice President in January 2014 and was appointed Vice President of Global Offices and Innovation on November 22, 2024. Dr. Pye received his Ph.D. (1999) in Aerospace Engineering from Stanford University, M.S. (1993) in Aerospace Engineering from Stanford University, and B.A.Sc. (1992) in Engineering Science from the University of Toronto, Canada. He is a Registered Professional Mechanical Engineer in the State of California. Prior to joining Exponent, Dr. Pye held a research position in the Aerospace Fluid Mechanics Lab at Stanford University where he was responsible for the renovation and redesign of the Stanford Low-Speed wind tunnel as well as managing the Stanford experimental facilities for the Stanford/NASA Ames Joint Institute for Aeronautics and Astronautics.

**Joseph Rakow, Ph.D.,** joined the Company in 2005. He was promoted to Principal Engineer in 2012 and was appointed Corporate Vice President in 2021. Dr. Rakow was appointed Group Vice President on April 1, 2023. Dr. Rakow received his Ph.D. (2005) in Aerospace Engineering and M.S. (2000) in Aerospace Engineering from the University of Michigan, and B.S. (1999) in Physics from the University of California, Davis. He is a licensed professional engineer in the state of California and a Fellow of the American Society of Mechanical Engineers. Prior to joining Exponent, Dr. Rakow held teaching and research positions at the University of Michigan and Sandia National Laboratories. As a volunteer, Dr. Rakow serves on multiple academic advisory boards at the university level and as a Structures Specialist with FEMA Urban Search & Rescue.

**Richard Reiss, Sc.D.,** joined the Company in 2006 as a Principal Scientist. He was promoted to Group Vice President in January 2015. Dr. Reiss earned his Sc.D. (1994) in Environmental Health from the Harvard University School of Public Health, M.S. (1991) in Environmental Engineering from Northwestern University and B.S. (1989) in Chemical Engineering from the University of California, Santa Barbara. Prior to joining Exponent he was a Vice President with Sciences International. Dr. Reiss is a Fellow of the Society of Risk Analysis.

**Maureen T.F. Reitman, Sc.D.,** joined the Company in 2002. She was promoted to Principal Engineer in 2006 and was appointed Corporate Vice President in 2014. Dr. Reitman was appointed Group Vice President on January 4, 2020. Dr. Reitman received her Sc.D. (1993) in Materials Science and Engineering from the Massachusetts Institute of Technology and her B.S. (1990) in Materials Science and Engineering from the Massachusetts Institute of Technology. She is a registered Professional Mechanical Engineer in the state of Maryland and a fellow of the Society of Plastics Engineers. Prior to joining Exponent, Dr. Reitman worked for the 3M Company in both research and management roles. Her activities at 3M included technology identification, materials selection and qualification, product development, customer support, program management, acquisition integration, intellectual property analysis, and patent litigation support. On February 6, 2024, Dr. Reitman was elected to the National Academy of Engineering.

**Joseph Sala, Ph.D.,** joined the Company in 2005. He was promoted to Principal Scientist in 2012 and was appointed Corporate Vice President in 2019. Dr. Sala was appointed Group Vice President on November 22, 2024. Dr. Sala received his Ph.D. (2004) in Psychology and M.A. (2001) in Psychology and Brain Sciences from John Hopkins University and B.A. (1998) in Psychology and B.S. (1998) in Administration of Justice from Rutgers University. Prior to joining Exponent, Dr. Sala was a post-doctoral fellow at Stanford University where he focused his research on the cognitive neuroscience of human information processing, the brain mechanisms underlying learning, memory, vision, and cognitive control, and their behavioral manifestations.

**Richard L. Schlenker, Jr.,** joined the Company in 1990. Mr. Schlenker is the Executive Vice President, Chief Financial Officer and Corporate Secretary of the Company. He was appointed Executive Vice President in April 2010, Chief Financial Officer in July 1999 and Secretary of the Company in November 1997. Mr. Schlenker was the Director of Human Resources from 1998 until his appointment as Chief Financial Officer. He was the Manager of Corporate Development from 1996 until 1998. From 1993 to 1996, Mr. Schlenker was a Business Manager, where he managed the business activities for multiple consulting practices within the Company. Prior to 1993, he held several different positions in finance and accounting within the Company. Mr. Schlenker holds a B.S. in Finance from the University of Southern California.

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**Item 1A. Risk Factors**

Exponent operates in a rapidly changing environment that involves a number of uncertainties, some of which are beyond our control and may have a material adverse effect on our financial condition and results of operations. These uncertainties include, but are not limited to, those mentioned elsewhere in this report and those set forth below. Although the risks are organized by headings, and each risk is discussed separately, many are interrelated.

**Risks Related to Our Clients and Demand for Our Services**

***The unpredictable and reactive nature of our business can create uneven performance in any given quarter or year.***

Revenues are primarily derived from services provided in response to client requests or events that occur without notice, and engagements, generally billed as services are performed, are terminable or subject to postponement or delay at any time by clients. As a result, backlog at any particular time is small in relation to our quarterly or annual revenues and is not a reliable indicator of revenues for any future periods. Revenues and operating margins for any particular quarter are generally affected by staffing mix, resource requirements and timing and size of engagements.

***Our financial results could suffer if our clients' needs change more rapidly than we are able to secure the appropriate mix of trained, skilled and experienced personnel.***

As our clients' needs change, new technologies develop, and legal and regulatory processes change, we may be unable to timely hire or train personnel with the appropriate new set of skills and experience which could negatively impact our growth and profitability.

***We may not manage our growth effectively, and our profitability may suffer.***

Our expected future growth presents numerous managerial, administrative, operational and other challenges. Our ability to manage the growth of our operations will require us to continue to improve our information systems and other internal systems and controls. In addition, our growth will increase our need to attract, develop, motivate and retain both our management and professional employees. The inability to effectively manage growth or the inability of our employees to achieve anticipated performance could have a material adverse effect on our business.

***The loss of a large client could adversely affect our business.*** 

We currently derive a significant portion of our revenues from clients in the chemical, construction, consumer products, energy, life sciences and transportation industries. The loss of any large client could have a material adverse effect on our business, financial condition or results of operations.

***Our clients may be unable to pay for our services*.**

If a client's financial difficulties become severe, the client may be unwilling or unable to pay our invoices in the ordinary course of business, which could adversely affect collections of both our accounts receivable and unbilled services. To the extent there is global economic volatility or an increase in the cost of capital, there could be an adverse impact on the ability of our customers to pay for our services. On occasion, some of our clients have entered bankruptcy, which has prevented us from collecting amounts owed to us. The bankruptcy of a client with substantial accounts receivable could have a material adverse effect on our financial condition and results of operations.

***Our business is dependent on our professional reputation.***

The professional reputation of Exponent and its consultants is critical to our ability to successfully compete for new client engagements and attract or retain professionals. Proven or unproven allegations against us may damage our professional reputation. Any factors that damage our professional reputation could have a material adverse effect on our business.

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***Our business can be adversely impacted by regulatory uncertainty, deregulation or reduced regulatory enforcement.***

Public concern over health, safety and preservation of the environment has resulted in the enactment of a broad range of environmental and/or other laws and regulations by local, state and federal lawmakers and agencies. These laws and the implementation of new regulations affect nearly every industry, as well as the agencies of federal, state and local governments charged with their enforcement. To the extent deregulation and changes in such laws, regulations and enforcement or other factors significantly reduce the exposures of manufacturers, owners, service providers and others to liability, the demand for our services may be significantly reduced.

***Tort reform can reduce demand for our services.***

Several of our practices have a significant concentration in litigation support consulting services. To the extent tort reform reduces the exposure of manufacturers, owners, service providers and others to liability, the demand for our litigation support consulting services may be significantly reduced.

***Potential conflicts of interest may preclude us from accepting some engagements.*** 

We provide litigation support consulting and other services primarily in connection with significant disputes, or other matters that are usually adversarial or that involve sensitive client information. The nature of our consulting services has and will continue to preclude us from accepting engagements with other potential clients because of conflicts. Accordingly, the nature of our business limits the number of both potential clients and potential engagements.

***Inherent risks related to government contracts may adversely affect our business.***

We work for various United States and foreign governmental entities and agencies. Government contracts entail, among other things, the obligation to comply with numerous regulations and requirements that may not otherwise apply to us. Government entities reserve the right to audit our contracts and conduct inquiries and investigations of our business practices with respect to government contracts. Findings from an audit may result in fees being refunded to the government or prospective adjustment to previously agreed upon rates that will affect future margins. If a government client discovers improper or illegal activities in the course of audits or investigations, we may become subject to various civil and criminal penalties and administrative sanctions, which may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or debarment from doing business with other agencies of the government. The inherent limitations of internal controls may not prevent or detect all improper or illegal activities, regardless of the adequacy of such controls. Government contracts, and the proceedings surrounding them, are often subject to more extensive scrutiny and publicity than other commercial contracts. Negative publicity related to our government contracts, regardless of whether it is accurate, may further damage our business by affecting our ability to compete for new contracts.

***Clients may terminate, cancel, modify or curtail our contracts at any time prior to their completion.*** 

Many of our engagements center on disputes, litigation and other event-driven occurrences that require independent analysis or expert services. Litigation may be settled or dismissed, and disputes may be resolved, in each case with little or no prior notice to us. Under many of our contracts, including our government contracts, the client generally has the right not to exercise options to extend or expand our contracts and may otherwise terminate, cancel, modify or curtail our contracts at its convenience. Our engagements can therefore terminate suddenly and without advance notice to us. If an engagement is terminated unexpectedly, our employees working on the engagement could be underutilized until we assign them to other projects. In addition, because much of our work is project-based rather than recurring in nature, our employees' utilization depends on our ability to secure additional engagements on a continual basis. Any decision by the client not to exercise contract options or to terminate, cancel, modify or curtail our projects would adversely affect our revenues, revenue growth and profitability.

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***Artificial intelligence (AI) technologies may reduce demand for our services and change client expectations.***

AI technologies are rapidly evolving and may significantly impact our industry and our clients. AI may change client expectations regarding the speed, cost, and manner of service delivery, and if we are unable to meet these evolving expectations or to deliver increased value through the use of AI, we may lose engagements or experience pressure on our pricing and margins. Our competitors may adopt and deploy AI technologies more quickly or effectively than we do, and new market entrants offering AI-based solutions may offer automated alternatives as a substitute for our services, potentially displacing demand for certain of our offerings. AI technologies may also render some of our existing service offerings less valuable or obsolete, particularly those that are more standardized in nature. Our failure to capitalize on the many opportunities presented by AI or to adapt our business model in response to AI-driven market changes could have a material adverse effect on our revenues and profitability.

**Risks Related to Our Operations**

***Failure to attract and retain key employees may adversely affect our business.***

Our business involves the delivery of professional services and is people-intensive. Our success depends in large part upon our ability to attract, retain and motivate highly qualified technical and managerial personnel. Qualified personnel are in great demand and are likely to remain a limited resource for the foreseeable future. We cannot provide any assurance that we can continue to attract sufficient numbers of highly qualified technical and managerial personnel and retain existing employees. We have experienced and expect to continue to experience employee turnover. We face threats from competitors who aggressively seek to poach our talent. The loss of key managerial employees, business generators or any significant number of employees could have a material adverse impact on our business, including our ability to secure and complete engagements. We rely heavily on our executive officers, group vice presidents, and practice/office directors to manage our operations. Given the highly specialized nature of our services and the scale of our operations, our executive officers, group vice presidents and practice/office directors must have a thorough understanding of our services and operations, as well as the skills and experience necessary to manage a large organization in diverse geographic locations. We are unable to predict with certainty the impact that leadership transitions and the loss of certain employees in leadership roles may have on our business operations, prospects, financial results, client relationships, or employee retention or morale.

***Our engagements may result in professional or other liability.*** 

Our services typically involve difficult engineering and scientific assignments and carry risks of professional and other liability. Many of our engagements involve matters that could have a severe impact on a client's business, cause a client to lose significant amounts of money, or prevent a client from pursuing desirable business opportunities. Accordingly, if a client is dissatisfied with our performance, the client could threaten or bring litigation in order to recover damages or to contest its obligation to pay our fees. Litigation alleging that we performed negligently, disclosed client confidential information, lost or damaged evidence, infringed on patents, were forced to withdraw from a legal matter due to a conflict or otherwise breached our obligations to a client could expose us to significant liabilities to our clients or other third parties or tarnish our reputation.

***We are subject to unpredictable risks of litigation.***

Although we seek to avoid litigation whenever possible, from time to time we are party to various lawsuits and claims. Disputes may arise, for example, from employment issues, regulatory actions, business acquisitions and real estate and other commercial transactions. There can be no assurances that any lawsuits or claims will be immaterial in the future. Any material lawsuits or claims could adversely affect our business and reputation.

***We are subject to security breaches that may disrupt our operations and/or lead to the inability to protect confidential information.***

We have experienced, and expect to continue to be subjected to, security breaches and threats, none of which have been material to us to date. Despite the implementation of security and business continuity measures, our information technology infrastructure and networks are vulnerable to electronic breaches of security. The adoption of AI

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technologies may also introduce new cybersecurity vulnerabilities, and AI systems may be targeted by cyberattacks or exploited to extract sensitive data. Furthermore, we are subject to risks to information security posed by external or insider threats, including unauthorized access, manipulation, misuse, or improper disclosure of proprietary, sensitive, or confidential information by employees, contractors, or other insiders. Any such breaches could lead to disruptions of our operations and potential unauthorized disclosure of confidential and/or personal information, which could result in legal claims or proceedings, have impacts to our operations, and/or cause harm to our reputation. Our systems and data are protected by a comprehensive Information Security program detailed in our Information Security Management System. Dedicated security, privacy, information governance, and compliance professionals maintain the program with oversight provided by the Board of Directors in conjunction with senior leadership. See Item 1C. for more information about our Cybersecurity Risk Management and Strategy. While we have taken reasonable steps to prevent and mitigate the damage of a security breach by continuously improving our design and coordination of security controls across our business, those steps may not be effective and there can be no assurance that any such steps can be effective against all possible risks.

***Laws regarding data protection continue to rapidly evolve, and failure to protect client and employee data may have an adverse effect on our business.***

We manage, utilize, and store sensitive or confidential client and employee data, including personal data and protected health information. As a result, we are subject to numerous laws and regulations designed to protect this information, such as the U.S. federal and state laws governing the protection of health or other personally identifiable information, including the Health Insurance Portability and Accountability Act, and international laws such as the European Union General Data Protection Regulation and the People's Republic of China's Data Security Law. In addition, many states, U.S. federal governmental authorities and non-U.S. jurisdictions have adopted, proposed, or are considering adopting or proposing, additional data security and/or data privacy statutes or regulations. For instance, we may be subject to Federal Trade Commission (FTC) enforcement actions if the FTC has reason to believe we have engaged in unfair or deceptive privacy or data security practices in violation of the FTC Act. In addition, an increasing number of U.S. states have enacted U.S. state privacy laws that set forth comprehensive privacy and security obligations regarding the collection and processing of personal data, including such as the California Consumer Privacy Act, as amended by the California Privacy Rights Act, and other state laws that set forth comprehensive privacy and security obligations regarding the collection and processing of personal data. These laws and regulations are increasing in complexity and number. As a result of these legal and regulatory requirements we incur and expect to continue to incur significant ongoing costs as part of our efforts to comply with applicable law. Failure to comply with these laws and regulations may lead to significant monetary damages, regulatory enforcement actions, fines, penalties or other regulatory liabilities, such as orders or consent decrees forcing us to modify business practices, and reputational damage or third-party lawsuits for any noncompliance with such laws. If any person, including any of our employees, negligently disregards or intentionally breaches our established controls with respect to client or employee data, or otherwise mismanages or misappropriates that data, we could also be subject to significant monetary damages, regulatory enforcement actions, fines, and/or criminal prosecution. In addition, unauthorized disclosure of sensitive or confidential client or employee data, whether through systems failure, employee negligence, fraud, or misappropriation, could damage our reputation and cause us to lose clients and their related revenue in the future.

***Our adoption and use of artificial intelligence technologies may create operational, legal, and regulatory risks.***

To remain competitive, we have made and will continue to make investments in AI technologies, infrastructure, talent, and training, and these investments may not yield anticipated benefits or may become obsolete more quickly than expected. The use of AI tools to assist in the preparation of our work product or our corporate operations may expose us to new forms of liability. AI solution may produce inaccurate, incomplete, incorrect or misleading outputs, and if erroneous AI-generated content is incorporated into our deliverables, we could face claims of professional negligence, harm to our professional reputation, and other legal actions. Maintaining rigorous quality control over AI-assisted work product may require additional resources and oversight that could offset anticipated efficiency gains. AI-driven changes to our workforce and service delivery model could also be disruptive and may adversely affect employee morale and retention. The legal and regulatory landscape governing AI is evolving rapidly and remains uncertain, and compliance with existing and emerging AI regulations may require significant resources. Failure to comply with

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applicable AI-related laws and regulations could result in regulatory enforcement actions, fines, litigation, and reputational damage.

***Our international operations create special risks that could adversely affect our business.*** 

In addition to our offices in the United States, we have a presence in the United Kingdom, Switzerland, Hong Kong, China, Singapore, Ireland, Germany, and Canada, and conduct business in several other countries. We expect to continue to expand globally and our international revenues may account for an increasing portion of our revenues in the future. Our international operations carry special financial, business and legal risks, including cultural and language differences; employment laws and related factors that could result in lower utilization, higher staffing costs, and cyclical fluctuations of utilization and revenues; currency fluctuations that adversely affect our financial position and operating results; burdensome regulatory requirements and other barriers to conducting business; tariffs/trade disputes and other trade barriers; geopolitical risks that could result in an adverse impact to our clients and Exponent, such as cyberattacks, trade sanctions, and increased regulatory scrutiny on operations; armed conflicts and wars, including current and potential global conflicts; managing the risks associated with engagements with foreign officials and governmental agencies, including the risks arising from the United States Foreign Corrupt Practices Act and the United Kingdom Bribery Act of 2010; managing the risks associated with global privacy and data security laws and regulations including the General Data Protection Regulation in Europe and China's data protection and national security laws; greater difficulties in managing and staffing foreign operations; successful entry and execution in new markets; restrictions on the repatriation of earnings; potentially adverse tax consequences; and other impending legislation that could add additional risks to the business.

***Employee or contractor misconduct, or our failure to comply with governmental, regulatory and legal requirements or with our company-wide Code of Business Conduct and Ethics and related policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.***

Misconduct, fraud, non-compliance with applicable laws and regulations or other improper activities by one of our employees, agents or partners could have a significant negative impact on our business and reputation. Such misconduct could include the failure to comply with government procurement regulations, regulations regarding the protection of classified information, regulations prohibiting bribery and other foreign corrupt practices, regulations regarding the pricing of labor and other costs in government contracts, regulations on lobbying or similar activities, regulations pertaining to the internal controls over financial reporting, environmental laws and any other applicable laws or regulations. Our Code of Business Conduct and Ethics and related policies mandate compliance with applicable laws including anti-bribery, and insider trading. Nonetheless, we cannot assure that our policies, procedures and related training programs will ensure full compliance with all applicable legal requirements. Illegal or improper conduct by our executive officers, directors, employees, independent consultants or contractors, or others who are subject to our policies and procedures could damage our reputation in the U.S. and internationally, which could adversely affect our existing client relationships or adversely affect our ability to attract and retain new clients, or lead to litigation or governmental or regulatory proceedings in the U.S. or foreign jurisdictions, or could subject us to fines and penalties, loss of security clearances and suspension or debarment from contracting, any or all of which could harm our reputation, reduce our revenue and profits and subject us to criminal and civil enforcement actions.

***Failure to comply with domestic and international export laws could adversely affect our business.***

To the extent we export technical services, data and information outside of the locations where we operate, we are subject to U.S. and international laws and regulations governing international trade and exports, including but not limited to the International Traffic in Arms Regulations, the Export Administration Regulations and trade sanctions against embargoed countries or parties. An increase in government use of export controls and sanctions lists could affect both our client engagements and our operations. A failure to comply with these laws and regulations could result in civil or criminal sanctions, including the imposition of fines, the denial of export privileges and suspension or debarment from participation in U.S. government contracts, which could have a material adverse effect on our business.

***Our business depends on our ability to use and access information systems, and modernize or replace such systems from time to time, and failure to effectively maintain such systems or modernize or replace systems, or difficulties*** 

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***encountered in implementing new or replacement systems could materially adversely affect our business and operations and harm our reputation.***

We depend on multiple internal and external information systems for operating our business. We utilize commercially available third-party technology solutions, which in many cases are customized to our business needs. Our information systems may be compromised by power outages, computer and telecommunications failures, computer viruses, security breaches, hackers, catastrophic events, AI-enabled threats, human error and other events, many of which are beyond our control, and are subject to obsolescence and technological changes. If our information systems fail to work properly or otherwise become unavailable, or if we encounter difficulties in integrating new or replacement systems, we may incur substantial time, efforts and costs to repair or replace such systems, or otherwise carry out our operations without the ability to use such systems. Failure of any such information system could result in delays, significant additional costs, incorrect information, failure of internal control and harm to our reputation as well as expose us to regulatory actions and claims any of which could adversely affect our business and results of operations and our reputation.

***Increases in operating expenses may adversely affect our profitability and margins***.

Increases in compensation and related expenses, other operating expenses, general and administrative expenses, and tax expenses due to inflation, supply chain disruptions, labor market conditions, real estate market conditions, geographic conditions, regulatory requirements, or other economic or political factors may adversely affect our profitability and margins. Increases in compensation and related expenses that exceed our bill rate increases, increases in rent when our operating leases expire, increases in compliance costs associated with new regulations, and increases in tax rates would adversely affect our profitability.

**General Risks**

***Competition could reduce our pricing and adversely affect our business.***

The markets for our services are highly competitive. In addition, there are relatively low barriers to entry into our markets and we have faced, and expect to continue to face, additional competition from new entrants into our markets. Competitive pressure, including from those utilizing AI technologies, could reduce the market acceptance of our services and result in limitations in our ability to implement billing rate increases or maintain billing rates that could have a material adverse effect on our business, financial condition or results of operations.

***We hold substantial investments that could present liquidity risks.***

Our cash equivalent portfolio as of January 2, 2026 consisted primarily of obligations of the U.S. Treasury. We follow an established investment policy to monitor, manage and limit our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure to any one issuer, as well as our maximum exposure to various asset classes.

Investments in some financial instruments may pose risks arising from liquidity and credit concerns. As of January 2, 2026, we had no impairment charge associated with our investment portfolio relating to such adverse financial market conditions. Although we believe our current investment portfolio has a low risk of impairment, we cannot predict future market conditions or market liquidity and can provide no assurance that our investment portfolio will remain unimpaired.

***Impairment of goodwill may require us to record a significant charge to earnings.*** 

On our balance sheet as of January 2, 2026, we have $8,607,000 of goodwill subject to periodic evaluation for impairment. Failure to achieve sufficient levels of cash flow at reporting units, the loss of key employees, changes to the scope of operations of our business or a significant and sustained decline in our stock price could result in goodwill impairment charges. During times of financial market volatility, significant judgment is required to determine the

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underlying cause of the decline and whether stock price declines are short-term in nature or indicative of an event or change in circumstances.

***Impairment of long-lived assets or restructuring activities may require us to record a significant charge to earnings.***

Our long-lived assets, including our office, laboratory and warehouse space in Menlo Park, California, our Test and Engineering Center in Phoenix, Arizona, and our office and laboratory facilities in Natick, Massachusetts, are subject to periodic testing for impairment. Failure to achieve sufficient levels of cash flow at the asset group level could result in impairment of our long-lived assets. In addition, we have operating lease right-of-use assets for office and laboratory space which are also subject to impairment. Changes in the business environment could lead to changes in the scope of operations of our business. These changes, including the closure of one or more offices, could result in restructuring and/or asset impairment charges.

***Uncertainty about current and future economic conditions and other adverse changes in general political conditions in any of the countries in which we do business could adversely affect our operating results.***

We are subject to risks arising from adverse changes in economic and political conditions, both domestically and globally, including regulatory uncertainty and unfavorable changes in economic conditions, such as inflation, rising interest rates or a recession, and other events beyond our control, such as geopolitical developments, economic sanctions, natural disasters, pandemics, epidemics, political instability, armed conflicts and wars, including current and potential global conflicts. Worsening economic conditions have had and may continue to have an adverse impact on the businesses and financial health of many of our clients. As a result, current or potential clients may consolidate or go out of business and thus demand for our services may be reduced significantly. Political changes and trends such as populism, protectionism, economic nationalism and sentiment toward multinational companies, as well as tariffs, export controls, restrictions on outbound investment or other trade barriers, sanctions, currency controls, or changes to tax or other laws or policies, have been and may continue to be disruptive to our business. These can interfere with our global operating model, client relationships, and competitive position. Further escalation of any specific trade tensions between the U.S. and China, or in global trade conflict more broadly could be harmful to global economic growth or to our business in China or other countries.

***Our quarterly results may vary.***

Variations in our revenues and operating results occur from time to time, as a result of a number of factors, such as the significance of client engagements commenced and completed during a quarter, the timing of engagements, the number of working days in a quarter, employee hiring and utilization rates. Because a high percentage of our expenses, particularly personnel and facilities related expenses, are relatively fixed in advance of any particular quarter, a variation in the timing of the initiation or the completion of our client assignments can cause significant variations in operating results from quarter to quarter.

***The market price of our common stock may be volatile.***

Many factors could cause the market price of our common stock to rise and fall. These include the risk factors listed above and below; changes in estimates of our performance or recommendations by securities analysts; future sales of shares of common stock in the public market; market conditions in the industry and economy as a whole; acquisitions or strategic alliances involving us or our competitors; restatement of financial results; and changes in accounting principles or methods. In addition, the stock market often experiences significant price fluctuations. These fluctuations are often unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the market price of our common stock. When the market price of a company's stock drops significantly, stockholders often institute securities class action litigation against that company. Any litigation against us could cause us to incur substantial costs, divert the time and attention of our management and other resources, or otherwise harm our business.

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***There can be no assurance that we will continue to declare cash dividends or repurchase our shares at all or in any particular amounts***.

Our Board of Directors has declared quarterly dividends since March 2013. Our intent to continue to pay quarterly dividends and to repurchase our shares is subject to capital availability and, in the case of dividends, periodic determinations by our Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all laws and agreements applicable to the declaration and payment of cash dividends by us. Future dividends and share repurchases may also be affected by, among other factors: our views on potential future capital requirements for investments, including acquisitions; legal risks; stock repurchase programs; changes in federal and state income tax laws or corporate laws; contractual restrictions; and changes to our business model. Our dividend payments and share repurchases may change from time to time, and we cannot provide assurance that we will continue to declare dividends or repurchase shares at all or in any particular amounts. A reduction or suspension in our dividend payments or share repurchase activity could have a negative effect on our stock price.

***Catastrophic events may disrupt our business.***

We rely on our network infrastructure and certain third-party hosted services to support our operations. A disruption or failure of these systems in the event of a major earthquake, fire, flood, tsunami or other weather event, power loss, telecommunications failure, software or hardware malfunctions, pandemics, cyber-attack, war, terrorist attack or other catastrophic event that our disaster recovery plans do not adequately address, could have a material adverse effect on our business, financial condition or results of operations.

***Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations.***

We maintain insurance coverage from third-party insurers as part of our overall risk management strategy and because some of our contracts require us to maintain specific insurance coverage limits. If any of our third-party insurers fail, suddenly cancel our coverage or otherwise are unable to provide us with adequate insurance coverage, then our overall risk exposure and our operational expenses would increase and the management of our business operations would be disrupted. In addition, there can be no assurance that any of our existing insurance coverage will be renewable upon the expiration of the coverage period or that future coverage will be affordable at the required limits.

***Climate change may disrupt our business.***

The areas where we conduct business are vulnerable to the effects of climate change. For example, in California, wildfire danger increases the probability of planned power outages which may impact our employees' abilities to commute to work and to stay connected. Climate-related events, including the increasing frequency of extreme weather events and their impact on critical infrastructure, have the potential to disrupt our business.

***Failure to meet climate expectations or standards could adversely affect our business, reputation, brand, results of operations and financial condition***

Our stakeholders, especially our clients, may have expectations about our sustainability-related initiatives, disclosures and progress. Client preferences may shift to support companies demonstrating more positive climate progress than we have shown. Furthermore, if our competitors' environmental, social, or governance practices are perceived to be better than our own, certain investors or clients may elect to invest in or be a patron of our competitors instead, which could have an adverse impact on our business, financial condition, and results of operations.

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**Item 1B. Unresolved Staff Comments**

None.

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**Item 1C. Cybersecurity**

**Risk Management and Strategy**

We recognize the critical importance of cybersecurity and data privacy in safeguarding our operations, sensitive data, and maintaining the trust of our stakeholders. We acknowledge the significance of cybersecurity incidents and threats as potential risks that may impact our operations and information systems. We have developed and implemented cybersecurity and data privacy programs in accordance with the requirements of ISO standards 27001:2022 and 27701:2019, which are intended to appropriately preserve the confidentiality, integrity, and availability of information maintained by our company. These programs identify, select, maintain, operate, and improve cybersecurity and privacy controls.

We have implemented processes for assessing, identifying, and managing material risks from cybersecurity threats. These processes are designed to preserve the confidentiality, integrity, and availability of our information systems and the information residing therein. Our cybersecurity incident response plan is based on the NIST 800-61r2 "Computer Security Incident Handling Guide." This plan is used to process security events identified through our real-time, 24x7 monitoring, and is also used to conduct security incident tabletop exercises. The incident response plan includes detailed steps for incident leadership, escalation to established partners, response protocols based on the type of incident, responsibilities for follow-up and reporting, and steps to capture lessons learned and improvement opportunities. Our vulnerability management processes include real-time monitoring for vulnerabilities and standardized reporting for managing remediation efforts. Our cybersecurity risk management processes are integrated into our overall risk management system to ensure alignment with our business objectives and strategies. We engage assessors, consultants, auditors and other third parties to execute certification audits, penetration tests, and security framework risk assessments. These external entities provide specialized expertise and insights to enhance the effectiveness of our cybersecurity risk management processes.

We have established processes to oversee and identify cybersecurity risks associated with our use of third-party service providers, including cloud service providers and AI systems. We conduct due diligence assessments and evaluate contractual obligations to mitigate potential risks arising from third-party relationships.

Cybersecurity threats, including previous incidents, have the potential to materially affect our company, including our business strategy, results of operations, and financial condition. While we have not experienced material adverse effects from cybersecurity threats to date, we recognize the evolving nature of these risks and remain vigilant in our efforts to mitigate potential impacts.

**Governance** 

Our Board of Directors provides oversight of risks from cybersecurity threats. The Security and Privacy Management Committee (the "SPMC") consists of our Chief Financial Officer, General Counsel, Vice President of Information Technology, Chief Human Resources Officer, Director of Information Security and Director of Environmental Health and Safety. The SPMC is tasked with ensuring risks are adequately addressed within our governance framework.

We maintain a dedicated team of cybersecurity professionals. The Director of Information Security, the Information Security team, the SPMC, the Vice President of Information Technology, and the Information Technology leadership team are principally responsible for assessing and managing cybersecurity risks for our company. These individuals possess relevant expertise in cybersecurity risk management and are equipped to address the evolving nature of cyber threats. Our Director of Information Security has over 20 years of cybersecurity experience, holds several professional certifications and is an adjunct faculty member teaching courses on information security management and governance. Our cybersecurity professionals have a proven track record of executing strategic security objectives across various sectors, including utility, government, healthcare, and consulting. They bring with them experience in designing, implementing, and managing information security programs focused on quality, performance, and compliance.

Our information security team and our third-party security service providers actively monitor the prevention, detection, mitigation, and remediation of cybersecurity incidents, ensuring timely response and resolution. Processes are in place to inform relevant management positions and committees about emerging threats and incident response

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activities. The Director of Information Security provides regular updates on cybersecurity risks and incidents to the Board of Directors, the SPMC, and IT leadership.

**Item 2. Properties**

Our Silicon Valley office facilities consist of a 153,738 square foot building, with office and laboratory space located on a 6.3-acre tract of land we own in Menlo Park, California and an adjacent 27,000 square feet of warehouse storage space on a 1.1-acre tract of land that we also own.

Our Test and Engineering Center (TEC) occupies 147 acres in Phoenix, Arizona. We lease this land from the State of Arizona under a lease agreement that expires in January 2043 and have an option to renew for one 15-year period. We constructed a 21,613 square foot indoor test facility as well as a 44,053 square foot engineering and test preparation building at the TEC.

Our office facilities in Natick, Massachusetts, consist of a 60,480 square foot building, with office and laboratory space located on a 2.9 acre tract of land that we own and an adjacent building that consists of 9,100 square feet of office space located on a 0.81 acre tract of land that we also own.

In addition, we lease office and laboratory space in 21 other locations in 12 states and the District of Columbia, as well as in China, Hong Kong, Switzerland and the United Kingdom. Leases for these offices and laboratory facilities have terms generally ranging between one and 10 years.

**Item 3. Legal Proceedings**

Exponent is not engaged in any material legal proceedings.

**Item 4. Mine Safety Disclosures**

Not applicable.

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**<u>PART</u> <u>II</u>**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

Exponent's common stock is traded on the NASDAQ Global Select Market, under the symbol "EXPO." As of February 20, 2026, there were 156 holders of record of our common stock. Because many of the shares of our common stock are held by brokers and other institutions on behalf of stockholders, we believe that there are considerably more beneficial holders of our common stock than record holders.

The following table provides information on the Company's share repurchases (of Company common stock) for the quarter ended January 2, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| (In thousands, except price per share) | Total<br>Number<br>of Shares<br>Purchased | Average<br>Price<br>Paid Per<br>Share | Total Number of<br>Shares Purchased<br>as Part of Publicly<br>Announced Plans<br>or Programs | Approximate Dollar<br>Value of Shares<br>That May Yet Be<br>Purchased Under<br>the Plan or Program |
| October 4 to October 31 | 67 | 64.94 | 67 | $117195 |
| November 1 to November 28 | 255 | 71.95 | 255 | $98833 |
| November 29 to January 2, 2026 | 33 | 71.48 | 33 | $96483 |
| Total | 355 | 70.57 | 355 | $96483 |

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Repurchases of the Company's common stock were made pursuant to a repurchase program authorized by the Company's Board of Directors. On February 1, 2024, the Company's Board of Directors authorized $61,600,000 for the repurchase of the Company's common stock. On October 30, 2025, the Company's Board of Directors announced approval of $100,000,000 for the repurchase of the Company's common stock. The Company's repurchase authorizations have no expiration date.

**COMPANY STOCK PRICE PERFORMANCE GRAPH** 

This graph compares the Company's cumulative total stockholder return calculated on a dividend-reinvested basis from 2021 through 2025 with those of the Standard & Poor's ("S&P") 500 Index and the S&P MidCap 400 Index. The Company does not have a comparable peer group and thus has selected the S&P MidCap 400 Index. The graph

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assumes that $100 was invested on the last day of 2020. Note that the historic price performance is not necessarily indicative of future price performance.

![img49965875_0.gif](img49965875_0.gif)

**Item 6. (Reserved)**

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**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2024 and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report Form 10-K can be found in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2025.

**OVERVIEW**

Exponent is an engineering and scientific consulting firm providing solutions to complex problems. Exponent's interdisciplinary organization of scientists, physicians, engineers, and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today. The firm leverages over 55 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes, ensure the safety and health of their users, and address the challenges of sustainability.

**CRITICAL ACCOUNTING ESTIMATES**

In preparing our consolidated financial statements, we make assumptions, judgments and estimates that can have a significant impact on our revenue, operating income and net income, as well as on the value of certain assets and liabilities on our consolidated balance sheet. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. On a regular basis we evaluate our assumptions, judgments and estimates and make changes accordingly. We believe that the assumptions, judgments and estimates involved in accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts have the greatest potential impact on our consolidated financial statements, so we consider these to be our critical accounting policies. We discuss below the assumptions, judgments and estimates associated with these policies. Historically, our assumptions, judgments and estimates relative to our critical accounting policies have not differed materially from actual results. For further information on our critical accounting policies, see Note 1 of our Notes to Consolidated Financial Statements.

**Revenue recognition.** We derive our revenues primarily from professional fees earned on consulting engagements, fees earned for the use of our equipment and facilities, as well as reimbursements for outside direct expenses associated with the services that are billed to our clients.

Substantially all of our engagements are service contracts performed under time and material or fixed-price billing arrangements. For time and material and fixed-price service projects, revenue is generally recognized as the services are performed. For substantially all of our fixed-price service engagements, we recognize revenue based on the relationship of incurred labor hours at standard rates to our estimate of the total labor hours at standard rates we expect to incur over the term of the contract. Our estimate of total labor hours we expect to incur over the term of the contract is based on the nature of the project and our past experience on similar projects. We believe this methodology achieves a reliable measure of the revenue from the consulting services we provide to our customers under fixed-price contracts.

Management judgments and estimates must be made and used in connection with the revenues recognized in any accounting period. These judgments and estimates include an assessment of the estimate as to the total effort required to complete fixed-price projects.

**Estimating the allowance for contract losses and doubtful accounts.** We make estimates of our ability to collect accounts receivable and our unbilled but recognized work-in-process. In circumstances where we are aware of a specific customer's inability to meet its financial obligations to us or for disputes with customers that affect our ability to fully collect our accounts receivable and unbilled work-in-process, we record a specific allowance to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers we recognize allowances for contract losses and doubtful accounts taking into consideration factors such as historical write-offs, customer concentration, customer creditworthiness, current and forecasts of future economic conditions, and aging of amounts due.

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The following table sets forth, for the periods indicated, the percentage of revenues of certain items in our consolidated statements of income and the percentage increase (decrease) in the dollar amount of such items year to year:

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| | | | |
|:---|:---|:---|:---|
|  | Percentage of Revenues for | Percentage of Revenues for | Period to |
|  | Fiscal Years | Fiscal Years | Period Change |
|  | 2025 | 2024 | 2025 v 2024 |
| Revenues | 100.0% | 100.0% | 4.2% |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation and related expenses | 58.8 | 59.1 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 8.5 | 8.3 | 7.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable expenses | 7.8 | 7.2 | 13.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 4.4 | 4.1 | 12.3 |
|  | 79.4 | 78.6 | 5.3 |
| Operating income | 20.6 | 21.4 | 0.2 |
| Other income, net | 4.7 | 5.0 | (1.1) |
| Income before income taxes | 25.3 | 26.4 | (0.0) |
| Provision for income taxes | 7.1 | 6.9 | 7.6 |
| Net income | 18.2% | 19.5% | (2.7)% |

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**EXECUTIVE SUMMARY**

Revenues and revenues before reimbursements for 2025 increased 4% as compared to the prior year. Growth during 2025 was driven by our dispute-related services reflecting the essential role our engineers and scientists play when systems do not perform as expected. Across the energy sector, we continued to see strong demand in engagements spanning hydroelectric facilities, wild-fire related losses, battery energy storage systems, and wind and solar projects. In transportation, we saw increased failure analysis work tied to electrification and battery systems in commercial vehicles, as customers addressed performance, safety, and reliability challenges. We also saw increased demand from domestic and international clients related to complex construction challenges and disputes. Proactive engagements were led by risk management and asset integrity projects in the utilities sector and regulatory consulting in the life-sciences sector.

As artificial intelligence and other advanced technologies become increasingly embedded in complex and performance-critical systems, rising societal expectations for safety and reliability continue to drive demand for our specialized expertise. Exponent is uniquely positioned to support clients with rigorous and independent insights across the full product lifecycle.

Net income was $106,009,000 during 2025 as compared to $109,002,000 during 2024. Diluted earnings per share decreased to $2.07 for 2025 as compared to $2.11 for 2024. The decrease in profitability was due to an increase in other operating expenses associated with the extension of our land lease with the State of Arizona in June of 2024, an increase in general and administrative expenses driven by higher travel and meals related to a company-wide managers' meeting, and a decrease in the tax benefit associated with stock-based awards. During 2025, we realized a negative tax impact associated with stock-based awards of $254,000 as compared to a positive tax benefit of $2,793,000 during 2024. The change in the tax impact associated with stock-based awards was due to the change in the difference of the value of our common stock between the grant date and the release date for the restricted stock units released during 2025 as compared to 2024.

We remain focused on building our world-class engineering and scientific team to position Exponent at the forefront of innovation and meet the ever-changing needs of our clients and the market. We also remain focused on capitalizing

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on emerging growth areas, managing other operating expenses, generating cash from operations, maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance stockholder value.

**OVERVIEW OF THE YEAR ENDED January 2, 2026**

Our revenues consist of professional fees earned on consulting engagements, fees for use of our equipment and facilities, and reimbursements for outside direct expenses associated with the services performed that are billed to our clients.

We operate on a 52-53 week fiscal year with each year ending on the Friday closest to December 31<sup>st</sup>. Fiscal period 2025 included 52 weeks of activity and ended on January 2, 2026. Fiscal period 2024 included 53 weeks of activity and ended on January 3, 2025. Fiscal period 2023 included 52 weeks of activity and ended on December 29, 2023. Fiscal period 2026 is 52 weeks and will end on January 1, 2027.

During 2025 billable hours decreased 2% to 1,468,000 as compared to 1,495,000 during 2024. Our utilization was 73% for both 2025 and 2024. Technical full-time equivalent employees increased 1% to 973 for 2025 as compared to 967 for 2024.

**FISCAL YEARS ENDED January 2, 2026 AND January 3, 2025**

**Revenues**

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| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Engineering and Other Scientific | $493893 | $469544 | 5.2% |
| Percentage of total revenues | 84.9% | 84.1% |  |
| Environmental and Health | 88121 | 88970 | (1.0)% |
| Percentage of total revenues | 15.1% | 15.9% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $582014 | $558514 | 4.2% |

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The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billing rates partially offset by a decrease in billable hours. Growth in this segment during 2025 was primary driven by demand for our risk management and asset integrity management services in the utilities industry and dispute-related services in the energy, automotive and medical device sectors. During 2025, billable hours for this segment decreased by 1% to 1,188,000 as compared to 1,199,000 during 2024. Utilization for this segment decreased to 74% for 2025 as compared to 75% for 2024. Technical full-time equivalent employees in this segment increased 2% to 771 during 2025 as compared to 759 for 2024.

The decrease in revenues from our Environmental and Health segment was due to a decrease in billable hours partially offset by an increase in billing rates. The decrease in billable hours was due to a lower level of activity for our regulatory services in the chemical industry. During 2025, billable hours for this segment decreased by 5% to 280,000 as compared to 296,000 during 2024. Utilization for this segment decreased to 66% for 2025 as compared to 67% for 2024. Technical full-time equivalents decreased 3% to 202 during 2025 as compared to 208 for 2024.

Revenues are primarily derived from services provided in response to client requests or events that occur without notice and engagements are generally terminable or subject to postponement or delay at any time by our clients. As a result, backlog at any particular time is small in relation to our quarterly or annual revenues and is not a reliable indicator of revenues for any future periods.

**Compensation and Related Expenses**

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| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Compensation and related expenses | $341994 | $330011 | 3.6% |
| Percentage of total revenues | 58.8% | 59.1% |  |

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The increase in compensation and related expenses during 2025 was due to an increase in payroll expense, an increase in bonus expense, an increase in fringe benefits and a change in the value of assets associated with our deferred compensation plan. During 2025, payroll expense increased $4,866,000 and fringe benefits increased by $1,834,000 due to the impact of our annual salary increase and an increase in technical full-time equivalent employees. During 2025, bonus expense increased by $2,202,000 due to a corresponding increase in our bonus pool which is 33% of income before income taxes, interest income, bonus expense, and stock-based compensation. During 2025 deferred compensation expense increased $2,435,000 with a corresponding increase to other income, net as compared to 2024 due to a change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of plan assets of $17,363,000 during 2025 as compared to an increase in value of plan assets of $14,928,000 during 2024. We expect compensation expense, excluding the change in value of deferred compensation plan assets, to increase as we selectively add new talent and adjust compensation to market conditions.

**Other Operating Expenses**

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| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Other operating expenses | $49458 | $46196 | 7.1% |
| Percentage of total revenues | 8.5% | 8.3% |  |

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Other operating expenses include facilities-related costs, technical materials, computer-related expenses and depreciation and amortization of property, equipment and leasehold improvements. The increase in other operating expenses was primarily due to an increase in occupancy expense of $1,552,000, an increase in computer-related expenses of $876,000 and an increase in technical materials of $454,000. The increase in occupancy expense was due to the extension of our land lease with the state of Arizona in June of 2024. The increases in computer-related expenses and technical materials were due to continued investment in our corporate infrastructure. We expect other operating expenses to grow as we selectively add new talent and continue to make investments in our corporate infrastructure.

**Reimbursable Expenses**

---

| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Reimbursable expenses | $45254 | $40024 | 13.1% |
| Percentage of total revenues | 7.8% | 7.2% |  |

---

The amount of reimbursable expenses will vary from year to year depending on the nature of our projects. The increase in reimbursable expenses as compared to 2024 was due to an increase in reimbursable expenses associated with user research projects.

**General and Administrative Expenses**

---

| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| General and administrative expenses | $25521 | $22726 | 12.3% |
| Percentage of total revenues | 4.4% | 4.1% |  |

---

------

The increase in general and administrative expenses during 2025 was primarily due to an increase in travel and meals of $2,627,000. The increase in travel and meals was due to a company-wide managers' meeting held during 2025. We did not have any company-wide meetings during 2024. We expect general and administrative expenses to increase as we expand our business development and staff development initiatives.

**Operating Income**

---

| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Engineering and Other Scientific | $173625 | $164883 | 5.3% |
| Environmental and Health | 30558 | 29995 | 1.9% |
| Total segment operating income | 204183 | 194878 | 4.8% |
| Corporate operating expense | (84396) | (75321) | 12.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating income | $119787 | $119557 | 0.2% |

---

The increase in operating income for our Engineering and Other Scientific segment during 2025 as compared to 2024 was due to an increase in revenues. The increase in revenues was due to an increase in billing rates, partially offset by a reduction in billable hours. The increase in operating income for our Environmental and Health segment was also due to an increase in billing rates, partially offset by a reduction in billable hours.

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, finance, information technology, corporate, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts. The increase in corporate operating expenses was due to an increase in travel and meals due to a company-wide managers' meeting held during 2025, an increase in deferred compensation expense due to a change in value of assets associated with our deferred compensation plan, an increase in stock-based compensation and an increase in corporate support expenses.

**Other Income, Net**

---

| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Other income | $27510 | $27813 | (1.1)% |
| Percentage of total revenues | 4.7% | 5.0% |  |

---

Other income, net consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The decrease in other income, net, was primarily due to a decrease in rental income and a decrease in interest income, partially offset by the change in value of assets associated with our deferred compensation plan. During 2025, rental income decreased by $1,856,000 due to the loss of a tenant in our Silicon Valley facility. The decrease in interest income of $694,000 was due to a decrease in interest rates. During 2025, deferred compensation expense increased $2,435,000 with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan.

**Income Taxes**

---

| | | | |
|:---|:---|:---|:---|
| (In thousands except percentages) | Fiscal Years | Fiscal Years | Percent |
|  | 2025 | 2024 | Change |
| Income taxes | $41288 | $38368 | 7.6% |
| Percentage of total revenues | 7.1% | 6.9% |  |
| Effective tax rate | 28.0% | 26.0% |  |

---

During 2025, we realized a negative tax impact associated with stock-based awards of $254,000 as compared to a positive tax benefit of $2,793,000 during 2024. The change in the tax impact associated with stock-based awards was due to the change in the difference of the value of our common stock between the grant date and the release date for

------

the restricted stock units released during 2025 as compared to restricted stock units released in 2024. Excluding the impact of the excess tax benefit, the effective tax rate would have been 27.9% for both 2025 and 2024.

**LIQUIDITY AND CAPITAL RESOURCES**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Net cash provided by (used in): |  |  |
| Operating activities | $131730 | $144537 |
| Investing activities | $(9390) | $(6939) |
| Financing activities | $(160428) | $(65108) |

---

We financed our business in 2025 through available cash and cash flows from operating activities. We invest our excess cash in cash equivalents. As of January 2, 2026, our cash and cash equivalents were $221,930,000 as compared to $258,901,000 at January 3, 2025. We believe our existing balances of cash and cash equivalents will be sufficient to satisfy our working capital needs, capital expenditures, outstanding commitments, stock repurchases, dividends and other liquidity requirements over at least the next 12 months.

Generally, our net cash provided by operating activities is used to fund our day-to-day operating activities. First quarter operating cash requirements are generally higher due to payment in the first quarter of our annual bonuses accrued during the prior year. Our largest source of operating cash flows is collections from our clients. Our primary uses of cash from operating activities are for employee related expenditures, leased facilities, taxes, and general operating expenses.

The increase in net cash used in investing activities during 2025 as compared to 2024 was due to an increase in capital expenditures. The increase in capital expenditures was due to an increase in investment in our corporate infrastructure.

The increase in net cash used in financing activities during 2025 as compared to 2024 was primarily due to an increase in repurchases of our common stock.

We lease office, laboratory, and storage space in 12 states and the District of Columbia, as well as in China, Hong Kong, Switzerland, and the United Kingdom under non-cancellable operating lease arrangements that expire at various dates through 2033. On June 19, 2024, we entered into an agreement with the State of Arizona to extend our land lease for 15 years beginning on January 17, 2028. We are currently obligated to make payments under the lease of $1,009,000 per year, which obligation will continue at that level until January 16, 2028. Beginning on January 17, 2028, our payments under the lease will increase to approximately $6,183,000 per year for the 15-year extension term with adjustments to the annual rent payment in 2033 and 2038 based on the consumer price index. As of January 2, 2026, the value of our obligations under operating leases was $82,834,000. See Note 12 of our Notes to Consolidated Financial Statements for additional information regarding our lease obligations. The value of our non-cancellable unconditional purchase obligations was not material at January 2, 2026.

We expect to continue our investing activities, including capital expenditures. Furthermore, cash reserves may be used to repurchase common stock under our stock repurchase programs, pay dividends, procure facilities and equipment or strategically acquire professional service firms that are complementary to our business.

We maintain nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees. Vested amounts due under the plans of $128,645,000 were recorded as a long-term liability on our consolidated balance sheet at January 2, 2026. Vested amounts due under the plans of $16,061,000 were recorded as a current liability on our consolidated balance sheet at January 2, 2026. Company assets that are designated to fund the benefits under the plans are held in a rabbi trust and are subject to the claims of our creditors. As of January 2, 2026, invested amounts under the plans of $123,454,000 were recorded as a non-current asset on our consolidated balance sheet. As of January 2, 2026, invested amounts under the plans of $16,061,000 were recorded as other current assets on our consolidated balance sheet.

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer's or director's lifetime. The

------

maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid. We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.

**Non-GAAP Financial Measures**

Regulation G, conditions for use of Non-Generally Accepted Accounting Principles ("Non-GAAP") financial measures, and other SEC regulations define and prescribe the conditions for use of certain Non-GAAP financial information. Generally, a Non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We closely monitor two financial measures, EBITDA and EBITDAS, which meet the definition of Non-GAAP financial measures. We define EBITDA as net income before income taxes, interest income, depreciation and amortization. We define EBITDAS as EBITDA before stock-based compensation. We regard EBITDA and EBITDAS as useful measures of operating performance to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. These measures are used to evaluate our financial results, develop budgets and determine employee compensation. These measures, however, should be considered in addition to, and not as a substitute for or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of the Non-GAAP measures to the nearest comparable GAAP measure is set forth below.

The following table shows EBITDA as a percentage of revenues before reimbursements for 2025 and 2024:

---

| | | |
|:---|:---|:---|
| (In thousands, except percentages) | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 |
| Revenues before reimbursements | $536760 | $518490 |
| EBITDA | $148073 | $147058 |
| EBITDA as a % of revenues before reimbursements | 27.6% | 28.4% |

---

The decrease in EBITDA as a percentage of revenues before reimbursements during 2025 as compared to 2024 was primarily due to an increase in occupancy expense associated with the extension of our land lease with the state of Arizona and an increase in general and administrative expenses driven by higher travel and meals related to a company-wide managers' meeting held during the third quarter of 2025. We did not have any company-wide meetings during 2024.

The following table is a reconciliation of EBITDA and EBITDAS to the most comparable GAAP measure, net income, for 2025 and 2024:

---

| | | |
|:---|:---|:---|
| (In thousands) | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 |
| Net income | $106009 | $109002 |
| Add back (subtract): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 41288 | 38368 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | (9307) | (10001) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10083 | 9689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 148073 | 147058 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 23795 | 23239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDAS | $171868 | $170297 |

---

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**Item 7A. Quantitative and Qualitative Disclosure about Market Risk**

We are exposed to interest rate risk associated with our balances of cash and cash equivalents. We manage our interest rate risk by maintaining an investment portfolio primarily consisting of debt instruments with high credit quality and relatively short average effective maturities in accordance with our investment policy. The maximum effective maturity of any issue in our portfolio of cash equivalents and short-term investments is three years and the maximum average effective maturity of the portfolio cannot exceed 12 months.

If interest rates were to instantaneously increase or decrease by 100 basis points, the change in the fair value of our portfolio of cash equivalents would not have a material impact on our financial statements. We do not use derivative financial instruments in our investment portfolio. Notwithstanding our efforts to manage interest rate risk, there can be no assurances that we will be adequately protected against the risks associated with interest rate fluctuations.

We have foreign currency risk related to our revenues and expenses denominated in currencies other than the U.S. dollar, primarily the British Pound, the Hong Kong Dollar, the Chinese Yuan, and the Singapore Dollar. Accordingly, changes in exchange rates may negatively affect the revenues and net income of our foreign subsidiaries as expressed in U.S. dollars.

At January 2, 2026, we had net assets of approximately $16.2 million with a functional currency of the British Pound, net assets of approximately $5.1 million with a functional currency of the Hong Kong Dollar, net assets of approximately $2.7 million with a functional currency of the Chinese Yuan, and net assets of approximately $1.8 million with a functional currency of the Singapore Dollar associated with our operations in the United Kingdom, Hong Kong, China, and Singapore respectively.

We also have foreign currency risk related to foreign currency transactions and monetary assets and liabilities denominated in currencies that are not the functional currency. We have experienced and will continue to experience fluctuations in our net income as a result of gains/(losses) on these foreign currency transactions and the re-measurement of monetary assets and liabilities. At January 2, 2026, we had net assets denominated in the non-functional currency of approximately $6.7 million.

We do not use foreign exchange contracts to hedge any foreign currency exposures. To date, the impacts of foreign currency exchange rate changes on our consolidated revenues and consolidated net income have not been material. However, our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

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**Item 8. Financial Statements and Supplementary Data**

See Item 15 of this Annual Report on Form 10-K for required financial statements and supplementary data.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

KPMG LLP, an independent registered public accounting firm, has audited the internal control over financial reporting of Exponent, Inc., as stated in their report which is included in Part IV, Item 15 of this Annual Report on Form 10-K.

**(a)** **Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures.**

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13(a)-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report on Form 10-K.

**(b)** **Management's Report on Internal Control Over Financial Reporting.**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is designed to provide reasonable assurance, but not absolute assurance, regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. generally accepted accounting principles. There are inherent limitations to the effectiveness of any system of internal control over financial reporting. These limitations include the possibility of human error, the circumvention or overriding of the system and reasonable resource constraints. Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in *Internal Control - Integrated Framework (2013)*, our management concluded that our internal control over financial reporting was effective at the reasonable assurance level as of January 2, 2026.

**(c)** **Changes in Internal Control Over Financial Reporting.**

There have not been any changes in the Company's internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act, during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

**Item 9B. Other Information**

Rule 10b5-1 Plans

None of the Company's directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company's fiscal quarter ended January 2, 2026.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

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**<u>PART</u> <u>III</u>**

Certain information required by Part III is omitted from this Annual Report on Form 10-K. We intend to file a definitive Proxy Statement pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, and certain information included therein is incorporated herein by reference.

**Item 10. Directors, Executive Officers and Corporate Governance**

The information required by this item is incorporated by reference to the Company's definitive Proxy Statement for its 2026 Annual Meeting of Stockholders (the "Proxy Statement"). See Part 1, Item 1 of this Annual Report on Form 10-K for information regarding the executive officers of the Company.

**Item 11. Executive Compensation**

The information required by this item is incorporated by reference to the Proxy Statement.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The information required by this item is incorporated by reference to the Proxy Statement.

**Item 13. Certain Relationships and Related Transactions, and Director Independence**

The information required by this item is incorporated by reference to the Proxy Statement.

**Item 14. Principal Accounting Fees and Services**

The information required by this item is incorporated by reference to the Proxy Statement.

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**<u>PART</u> <u>IV</u>**

**Item 15. Exhibits, Financial Statement Schedules**

**(a)** **The following documents are filed as part of this Annual Report on Form 10-K.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Financial Statements**

The following consolidated financial statements of Exponent, Inc. and subsidiaries and the Report of Independent Registered Public Accounting Firm are included herewith:

---

| | |
|:---|:---|
|  | Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Report of Independent Registered Public Accounting Firm</u>](#report_independent_registered_public_acc) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Income for the years ended January 2, 2026, January 3, 2025 and December 29, 2023</u>](#consolidated_statements_income) | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Comprehensive Income for the years ended January 2, 2026, January 3, 2025 and December 29, 2023</u>](#consolidated_statements_comprehensive_in) | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Balance Sheets as of January 2, 2026 and January 3, 2025</u>](#consolidated_balance_sheets) | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Stockholders' Equity for the years ended January 2, 2026, January 3, 2025 and December 29, 2023</u>](#consolidated_statements_stockholders_equ) | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for the years ended January 2, 2026, January 3, 2025 and December 29, 2023</u>](#consolidated_statements_cash_flows) | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated_financial_statemen) | 46 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Financial Statement Schedules**

The following financial statement schedule of Exponent, Inc. for the years ended January 2, 2026, January 3, 2025 and December 29, 2023 is filed as part of this Annual Report on Form 10-K and should be read in conjunction with the consolidated financial statements of Exponent, Inc. and subsidiaries:

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| | |
|:---|:---|
|  | Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Schedule II - Valuation and Qualifying Accounts</u>](#schedule_ii) | 66 |

---

Schedules other than those listed above have been omitted since they are either not required, not applicable, or the information is otherwise included elsewhere in the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Exhibits** 

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| | |
|:---|:---|
|  | Page |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>(a)</u> <u>Exhibit Index</u>](#exhibit_index) | 67 |

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**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors

Exponent, Inc.:

*Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting*

We have audited the accompanying consolidated balance sheets of Exponent, Inc. and subsidiaries (the Company) as of January 2, 2026 and January 3, 2025, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for each of the years in the three-year period ended January 2, 2026, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of January 2, 2026, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 2, 2026 and January 3, 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended January 2, 2026, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 2, 2026 based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

*Basis for Opinions*

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we 2 considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

*Definition and Limitations of Internal Control Over Financial Reporting*

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable

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assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

*Critical Audit Matter*

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Collectability of accounts receivables*

As discussed in Notes 1 and 6 to the consolidated financial statements, the Company's allowance for contract losses and doubtful accounts was $7.5 million as of January 2, 2026. The Company's accounts receivables, net was $181.5 million as of January 2, 2026, which represents 23% of total assets and 31% of revenue for the year ended January 2, 2026. As discussed in Note 1, the Company maintains allowances to estimate their ability to collect financial obligations from customers. The Company records a specific allowance in circumstances where the Company is aware of a specific customer's inability to meet its financial obligations.

We identified the assessment of the collectability of accounts receivable as a critical audit matter. Specifically, the specific allowance is an estimate which involves assessing the likelihood of collection of customer's accounts receivable by considering various factors such as communication from the customer, historical collections, and number of days accounts receivables have been outstanding. Subjective auditor judgment was involved in evaluating the relevance and reliability of the evidence obtained in evaluating these factors.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter. This included controls related to the Company's assessment of the specific allowance. We investigated significant fluctuations in the specific allowance as compared to gross accounts receivable and the prior year specific allowance. For a selection of customer invoices and projects, we inquired of 3 Company personnel to evaluate the rationale for establishing a specific allowance for certain customers and assessed the Company's estimate of the specific customer allowance by evaluating the underlying contractual documents, historical collection trends, communications with customers, number of days account receivable have been outstanding, and other additional factors. We also evaluated subsequent collections occurring after the balance sheet date for selected customer invoices and projects and considered the impact of potential subsequent events on the estimate of the specific customer allowance.

/s/ KPMG LLP

We have served as the Company's auditor since 1987.

San Francisco, California

February 27, 2026

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**Exponent, Inc. and Subsidiaries**

## Consolidated Stat ements of Income

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands, except per share data) | 2025 | 2024 | 2023 |
| Revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenues before reimbursements | $536760 | $518490 | $497189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursements | 45254 | 40024 | 39577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues | 582014 | 558514 | 536766 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation and related expenses | 341994 | 330011 | 319886 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 49458 | 46196 | 41541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable expenses | 45254 | 40024 | 39577 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 25521 | 22726 | 24440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 462227 | 438957 | 425444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 119787 | 119557 | 111322 |
| Other income: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 9307 | 10001 | 7150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous income, net | 18203 | 17812 | 17424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | 147297 | 147370 | 135896 |
| Provision for income taxes | 41288 | 38368 | 35557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $106009 | $109002 | $100339 |
| Net income per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $2.08 | $2.13 | $1.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $2.07 | $2.11 | $1.94 |
| Shares used in per share computations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 50904 | 51129 | 51152 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 51244 | 51569 | 51635 |
| Cash dividends declared per common share | $1.20 | $1.12 | $1.04 |

---

See accompanying notes to the Consolidated Financial Statements.

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**Exponent, Inc. and Subsidiaries**

## Consolidated Statements of Comprehensive Income

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Net income | $106009 | $109002 | $100339 |
| Other comprehensive income (loss), net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments, net of tax of $0, $0,<br> and $0, respectively | 1501 | (814) | 610 |
| Comprehensive income | $107510 | $108188 | $100949 |

---

See accompanying notes to the Consolidated Financial Statements.

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**Exponent, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
| (In thousands, except par value) | January 2,<br>2026 | January 3,<br>2025 |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $221930 | $258901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for contract losses and doubtful<br> accounts of $7,478 and $6,141, respectively | 181507 | 161407 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 24143 | 26573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 427580 | 446881 |
| Property, equipment and leasehold improvements, net | 71981 | 73007 |
| Operating lease right-of-use assets | 73376 | 75248 |
| Goodwill | 8607 | 8607 |
| Deferred income taxes | 67075 | 57127 |
| Deferred compensation plan assets | 123454 | 110259 |
| Other assets | 5446 | 6141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $777519 | $777270 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $30942 | $22136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and employee benefits | 121302 | 119285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | 18868 | 16369 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 6890 | 5393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 178002 | 163183 |
| Other liabilities | 4587 | 4289 |
| Deferred compensation plan liabilities | 128645 | 112646 |
| Operating lease liabilities | 75944 | 76084 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $387178 | $356202 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value; 2,000 shares authorized; no shares<br> outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 120,000 shares authorized; 65,707 <br> shares issued | 66 | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 369747 | 345689 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | (2290) | (3791) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 668423 | 624151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost: 16,087 and 14,893 shares held, respectively | (645605) | (545047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 390341 | 421068 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $777519 | $777270 |

---

See accompanying notes to the Consolidated Financial Statements.

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**Exponent, Inc. and Subsidiaries** 

**Consolidated Statements of Stockholders' Equity**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Accumulated |  |  |  |  |
|  |  |  | Additional | other com- |  |  |  |  |
|  | Common Stock | Common Stock | paid-in | prehensive | Retained | Treasury Stock | Treasury Stock |  |
| (In thousands) | Shares | Amount | capital | income (loss) | earnings | Shares | Amount | Total |
| Balance at December 30, 2022 | 65707 | $66 | $301002 | $(3587) | $528810 | 15064 | $(505539) | $320752 |
| Employee stock purchase plan |  |  | 1840 |  |  | (24) | 244 | 2084 |
| Exercise of stock options |  |  | 22 |  |  | (8) | 78 | 100 |
| Amortization of unrecognized stock-based compensation |  |  | 9912 |  |  |  |  | 9912 |
| Purchase of treasury shares |  |  |  |  |  | 288 | (24208) | (24208) |
| Foreign currency translation adjustments |  |  |  | 610 |  |  |  | 610 |
| Grant of restricted stock units to settle accrued bonus |  |  | 10496 |  |  |  |  | 10496 |
| Settlement of restricted stock units |  |  | (1824) |  | (1009) | (186) | (7109) | (9942) |
| Dividends and dividend equivalent rights |  |  | 0 |  | (54058) |  |  | (54058) |
| Net income |  |  |  |  | 100339 |  |  | 100339 |
| Balance at December 29, 2023 | 65707 | $66 | $321448 | $(2977) | $574082 | 15134 | $(536534) | $356085 |
| Employee stock purchase plan |  |  | 1627 |  |  | (21) | 212 | 1839 |
| Exercise of stock options |  |  | 2633 |  |  | (124) | 1264 | 3897 |
| Amortization of unrecognized stock-based compensation |  |  | 11057 |  |  |  |  | 11057 |
| Purchase of treasury shares |  |  |  |  |  | 74 | (5710) | (5710) |
| Foreign currency translation adjustments |  |  |  | (814) |  |  |  | (814) |
| Grant of restricted stock units to settle accrued bonus |  |  | 10846 |  |  |  |  | 10846 |
| Settlement of restricted stock units |  |  | (1922) |  | (719) | (170) | (4279) | (6920) |
| Dividends and dividend equivalent rights |  |  |  |  | (58214) |  |  | (58214) |
| Net income |  |  |  |  | 109002 |  |  | 109002 |
| Balance at January 3, 2025 | 65707 | $66 | $345689 | $(3791) | $624151 | 14893 | $(545047) | $421068 |
| Employee stock purchase plan |  |  | 1157 |  |  | (20) | 229 | 1386 |
| Exercise of stock options |  |  | 534 |  |  | (38) | 452 | 986 |
| Amortization of unrecognized stock-based compensation |  |  | 11771 |  |  |  |  | 11771 |
| Purchase of treasury shares |  |  |  |  |  | 1354 | (97807) | (97807) |
| Excise tax on treasury share purchases |  |  |  |  |  |  | (849) | (849) |
| Foreign currency translation adjustments |  |  |  | 1501 |  |  |  | 1501 |
| Grant of restricted stock units to settle accrued bonus |  |  | 12179 |  |  |  |  | 12179 |
| Settlement of restricted stock units |  |  | (1583) |  |  | (102) | (2583) | (4166) |
| Dividends and dividend equivalent rights |  |  |  |  | (61737) |  |  | (61737) |
| Net income |  |  |  |  | 106009 |  |  | 106009 |
| Balance at January 2, 2026 | 65707 | $66 | $369747 | $(2290) | $668423 | 16087 | $(645605) | $390341 |

---

See accompanying notes to the Consolidated Financial Statements.

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## Exponent, Inc. and Subsidiaries
**Consolidated Statements of Cash Flows**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Cash flows from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $106009 | $109002 | $100339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by<br> operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property, equipment and<br> leasehold improvements | 10083 | 9689 | 8916 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for contract losses and doubtful accounts | 2988 | 4450 | 3225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 23795 | 23239 | 20357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax provision | (9948) | (3303) | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (23088) | 1503 | (471) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 7678 | 1798 | (6669) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating leases | 3229 | 2568 | (152) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 7678 | 436 | (5055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll and employee benefits | 807 | 495 | 3902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | 2499 | (5340) | 2875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 131730 | 144537 | 127352 |
| Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (9390) | (6939) | (16356) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (9390) | (6939) | (16356) |
| Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payroll taxes for restricted stock units | (4166) | (6920) | (9942) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common stock | (97095) | (5710) | (24208) |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock-based payment awards | 2372 | 5736 | 2184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends and dividend equivalent rights | (61539) | (58214) | (54043) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (160428) | (65108) | (86009) |
| Effect of foreign currency exchange rates on cash and cash<br> equivalents | 1117 | (739) | 705 |
| Net change in cash and cash equivalents | (36971) | 71751 | 25692 |
| Cash and cash equivalents at beginning of year | 258901 | 187150 | 161458 |
| Cash and cash equivalents at end of year | $221930 | $258901 | $187150 |

---

See accompanying notes to the Consolidated Financial Statements.

------

**Exponent, Inc. and Subsidiaries**

**Notes to Consolidated Financial Statements**

**Note 1: Summary of Significant Accounting Policies**

**Basis of Presentation**

Exponent, Inc. together with its subsidiaries (collectively referred to as the "Company") is a science and engineering consulting firm that provides solutions to complex problems. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

The Company operates on a 52-53 week fiscal year with each year ending on the Friday closest to December 31<sup>st</sup>. Fiscal period 2025 included 52 weeks of activity and ended on January 2, 2026. Fiscal period 2024 included 53 weeks of activity and ended on January 3, 2025. Fiscal period 2023 included 52 weeks of activity and ended on December 29, 2023. Fiscal period 2026 is 52 weeks and will end on January 1, 2027.

**Use of Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Estimates are used for, but not limited to, revenue recognition, allowance for contract losses and doubtful accounts, stock-based compensation, income taxes, goodwill, the useful life of property, equipment and leasehold improvements, and operating lease liabilities. Actual results could differ from those estimates.

**Foreign Currency Translation** 

The Company translates the assets and liabilities of foreign subsidiaries, whose functional currency is the local currency, at exchange rates in effect at the balance sheet date. Revenues and expenses are translated at the average rates of exchange prevailing during the year. The adjustment resulting from translating the financial statements of such foreign subsidiaries is included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders' equity.

**Cash Equivalents**

Cash equivalents consist of highly liquid investments such as money market mutual funds, commercial paper and debt securities with original remaining maturities of three months or less from the date of purchase.

**Allowances for Contract Losses and Doubtful Accounts** 

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations or for disputes that affect the Company's ability to fully collect amounts due. In circumstances where the Company is aware of a specific customer's inability to meet its financial obligations or is aware of a dispute with a specific customer, a specific allowance is recorded to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers the Company recognizes allowances for doubtful accounts based upon historical write-offs, customer concentration, customer creditworthiness, current and forecasts of future economic conditions, aging of amounts due and changes in customer payment terms.

**Property, Equipment and Leasehold Improvements**

Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized using the straight-line method. Buildings are depreciated over their estimated useful lives ranging from 30 to 40 years. Equipment is depreciated over its estimated useful life, which generally ranges from 3 to 7 years. Leasehold improvements are amortized over the shorter of their estimated useful lives, generally 7 years, or the term of the related lease.

------

**Impairment of Long-Lived Assets** 

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not recognized impairment losses on any long-lived assets in 2025, 2024 or 2023.

**Goodwill**

The Company assesses the impairment of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may be impaired. The Company's annual goodwill impairment review is completed during the fourth quarter of each year. The Company evaluates goodwill for each reporting unit for impairment by assessing qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. The Company considers events and circumstances, including but not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, a change in the composition or carrying amount of a reporting unit's net assets and changes in the price of its common stock. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then the quantitative goodwill impairment test is not performed.

The Company completed its annual assessment for all reporting units with goodwill for 2025 and determined, after assessing the totality of the qualitative factors, that it is more likely than not that the fair value of each reporting unit is greater than its respective carrying amount. Accordingly, there was no indication of impairment of goodwill for any of the Company's reporting units and the quantitative goodwill impairment test was not performed. The Company did not recognize any goodwill impairment losses in 2025, 2024 or 2023.

**Deferred Revenues**

Deferred revenues represent amounts billed to clients in advance of services provided.

**Income Taxes**

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax basis and the financial reporting basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities from changes in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. An uncertain tax position is recognized if it is determined that it is more likely than not to be sustained upon examination. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as income tax expense. Accrued interest and penalties are insignificant at January 2, 2026 and January 3, 2025.

**Fair Value of Financial Instruments**

Financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, other assets and accounts payable. Cash, cash equivalents and short-term investments are recorded at fair value. The carrying amount of the Company's accounts receivable, other assets and accounts payable approximates their fair values due to their short maturities.

**Stock-Based Compensation**

Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period of the entire award. The Company accounts for forfeitures of stock-based awards when they occur.

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**Net Income Per Share**

Basic per share amounts are computed using the weighted-average number of common shares outstanding during the period. Diluted per share amounts are computed using the weighted-average number of common shares outstanding and potentially dilutive securities, using the treasury stock method if their effect would be dilutive.

The following schedule reconciles the denominators of the Company's calculation for basic and diluted net income per share:

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| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Shares used in basic per share computation | 50904 | 51129 | 51152 |
| Effect of dilutive common stock options outstanding | 78 | 166 | 188 |
| Effect of unvested restricted stock units outstanding | 262 | 274 | 295 |
| Shares used in diluted per share computation | 51244 | 51569 | 51635 |

---

Common stock options to purchase 175,833, 30,000 and 59,459 shares were excluded from the diluted per share calculation for 2025, 2024 and 2023, respectively, due to their anti-dilutive effect.

**Recently Adopted Accounting Pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. The standard is effective for annual reporting periods beginning after December 15, 2024. The Company adopted the standard on a prospective basis on January 4, 2025. While the standard requires additional disclosures related to the Company's income taxes, the standard did not have any impact on the Company's consolidated operating results, financial condition or cash flows. See Note 7, Income Taxes.

**Recent Accounting Pronouncements Not Yet Adopted**

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (subtopic 220-40), which requires disclosure of disaggregation of certain relevant expenses included in the statements of operations on an annual and interim basis. ASU 2024-03 will be effective for our annual periods beginning January 2, 2027 and interim periods beginning January 1, 2028. The amendments must be applied retrospectively, and early adoption is permitted. The Company is currently evaluating the effects of adoption on our consolidated financial statements.

**Note 2: Revenue Recognition**

Substantially all of the Company's engagements are performed under time and materials or fixed-price arrangements. For time and materials contracts, the Company utilizes the practical expedient under Accounting Standards Codification 606 – *Revenue from Contracts with Customers*, which states, if an entity has a right to consideration from a customer in an amount that corresponds directly with the value of the entity's performance completed to date (for example, a service contract in which an entity bills a fixed amount for each hour of service provided), the entity may recognize revenue in the amount to which the entity has a right to invoice.

The following table discloses the percent of the Company's revenue generated from time and materials contracts:

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| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 | 2023 |
| Engineering & Other Scientific | 64% | 64% | 63% |
| Environmental and Health | 14% | 15% | 15% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total time and materials revenues | 78% | 79% | 78% |

---

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For fixed-price contracts, the Company recognizes revenue over time because of the continuous transfer of control to the customer. The customer typically controls the work in process as evidenced either by contractual termination clauses or by the Company's rights to payment for work performed to date to deliver services that do not have an alternative use to the Company. Revenue for fixed-price contracts is recognized based on the relationship of incurred labor hours at standard rates to the Company's estimate of the total labor hours at standard rates it expects to incur over the term of the contract. The Company believes this methodology achieves a reliable measure of the revenue from the consulting services it provides to its customers under fixed-price contracts given the nature of the consulting services the Company provides.

The following table discloses the percent of the Company's revenue generated from fixed price contracts:

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| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 | 2023 |
| Engineering & Other Scientific | 21% | 20% | 20% |
| Environmental and Health | 1% | 1% | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed price revenues | 22% | 21% | 22% |

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Deferred revenues represent amounts billed to clients in advance of services provided. During 2025, $9,729,000 of revenues were recognized that were included in the deferred revenue balance at January 3, 2025. During 2024, $14,173,000 of revenues were recognized that were included in the deferred revenue balance at December 29, 2023. During 2023, $14,463,000 of revenues were recognized that were included in the deferred revenue balance at December 30, 2022.

Reimbursements, including those related to travel and other out-of-pocket expenses, and other similar third-party costs such as the cost of materials and certain subcontracts, are included in revenues, and an equivalent amount of reimbursable expenses are included in operating expenses. Any service fee associated with reimbursable expenses is included in revenues before reimbursements. The Company reports revenues net of subcontractor fees for certain subcontracts where the Company has determined that it is acting as an agent because its performance obligation is to arrange for and not control the provision of goods or services by another party. The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were $14,289,000, $10,970,000 and $12,268,000 during 2025, 2024 and 2023, respectively.

**Note 3: Cash and cash equivalents** 

Cash and cash equivalents consisted of the following as of January 2, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | Estimated |
| (In thousands) | Amortized<br>Cost | Unrealized<br>Gains | Unrealized<br>Losses | Fair<br>Value |
| Classified as current assets: |  |  |  |  |
| &nbsp;&nbsp;Cash | $161760 | $— | $— | $161760 |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market securities | 60170 |  |  | 60170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash equivalents | 60170 |  |  | 60170 |
| Total cash and cash equivalents | $221930 | $— | $— | $221930 |

---

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Cash and cash equivalents consisted of the following as of January 3, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | Estimated |
| (In thousands) | Amortized<br>Cost | Unrealized<br>Gains | Unrealized<br>Losses | Fair<br>Value |
| Classified as current assets: |  |  |  |  |
| &nbsp;&nbsp;Cash | $201352 | $— | $— | $201352 |
| Cash equivalents: |  |  |  |  |
| &nbsp;&nbsp;Money market securities | 57549 |  |  | 57549 |
| &nbsp;&nbsp;Total cash equivalents | 57549 |  |  | 57549 |
| Total cash and cash equivalents | $258901 | $— | $— | $258901 |

---

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**Note 4: Fair Value Measurements**

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities, trading fixed income and equity securities held in its deferred compensation plan and the liability associated with its deferred compensation plan. There have been no transfers between fair value measurement levels during 2025, 2024 and 2023. Any transfers between fair value measurement levels would be recorded on the actual date of the event or change in circumstances that caused the transfer. The fair value of these certain financial assets and liabilities was determined using the following inputs at January 2, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using |
| (In thousands) | Total | Quoted<br>Prices in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| <u>Assets</u> |  |  |  |  |
| Money market securities <sup>(1)</sup> | $60170 | $60170 | $— | $— |
| Fixed income trading securities held in<br> deferred compensation plan <sup>(2)</sup> | 45332 | 45332 |  |  |
| Equity trading securities held in deferred<br> compensation plan <sup>(2)</sup> | 94183 | 94183 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $199685 | $199685 | $— | $— |
| <u>Liabilities</u> |  |  |  |  |
| Deferred compensation plan <sup>(3)</sup> | 144706 | 144706 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $144706 | $144706 | $— | $— |

---

<sup>(1)</sup> Included in cash and cash equivalents on the Company's consolidated balance sheet.

<sup>(2)</sup> Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company's consolidated balance sheet.

<sup>(3)</sup> Included in accounts payable and accrued liabilities and deferred compensation plan liabilities on the Company's consolidated balance sheet.

------

The fair value of these certain financial assets and liabilities was determined using the following inputs at January 3, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using | Fair Value Measurements at Reporting Date Using |
| (In thousands) | Total | Quoted<br>Prices in<br>Active Markets<br>for Identical<br>Assets<br>(Level 1) | Significant<br>Other<br>Observable<br>Inputs<br>(Level 2) | Significant<br>Unobservable<br>Inputs<br>(Level 3) |
| <u>Assets</u> |  |  |  |  |
| Money market securities <sup>(1)</sup> | $57549 | $57549 | $— | $— |
| Fixed income trading securities held in<br> deferred compensation plan <sup>(2)</sup> | 42291 | 42291 |  |  |
| Equity trading securities held in deferred<br> compensation plan <sup>(2)</sup> | 85546 | 85546 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $185386 | $185386 | $— | $— |
| <u>Liabilities</u> |  |  |  |  |
| Deferred compensation plan <sup>(3)</sup> | 127622 | 127622 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $127622 | $127622 | $— | $— |

---

<sup>(1)</sup> Included in cash and cash equivalents on the Company's consolidated balance sheet.

<sup>(2)</sup> Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company's consolidated balance sheet.

<sup>(3)</sup> Included in accounts payable and accrued liabilities and deferred compensation plan liabilities on the Company's consolidated balance sheet.

Fixed income and equity trading securities as of January 2, 2026 and January 3, 2025 represent mutual funds held in the Company's deferred compensation plan. See Note 11 for additional information about the Company's deferred compensation plan.

The following financial instruments are not measured at fair value on the Company's consolidated balance sheet at January 2, 2026, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. The estimated fair value of such instruments at January 2, 2026 approximates their carrying value as reported on the consolidated balance sheet.

There were no other-than-temporary impairments or credit losses related to available-for-sale securities during 2025, 2024 and 2023.

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**Note 5: Property, Equipment and Leasehold Improvements**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Property: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Land | $18339 | $18339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Buildings | 70416 | 70416 |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | 2395 | 219 |
| Equipment: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Machinery and equipment | 62187 | 57041 |
| &nbsp;&nbsp;&nbsp;&nbsp;Office furniture and equipment | 14356 | 13749 |
| Leasehold improvements | 26360 | 25445 |
|  | 194053 | 185209 |
| Less accumulated depreciation and amortization | 122072 | 112202 |
| Property, equipment and leasehold improvements, net | $71981 | $73007 |

---

Depreciation and amortization for 2025, 2024 and 2023 was $10,083,000, $9,689,000 and $8,916,000, respectively.

**Note 6: Other Significant Balance Sheet Components**

**Account receivable, net**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Billed accounts receivable | $134700 | $117503 |
| Unbilled accounts receivable | 54285 | 50045 |
| Allowance for contract losses and doubtful accounts | (7478) | (6141) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total accounts receivable, net | $181507 | $161407 |

---

**Accounts payable and accrued liabilities**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Accounts payable | $6874 | $5272 |
| Accrued liabilities | 24068 | 16864 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total accounts payable and other accrued liabilities | $30942 | $22136 |

---

**Accrued payroll and employee benefits**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Accrued bonuses payable | $75858 | $76844 |
| Accrued 401(k) contributions | 11549 | 10807 |
| Accrued vacation | 15696 | 14433 |
| Deferred compensation plan | 16061 | 14976 |
| Other accrued payroll and employee benefits | 2138 | 2225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total accrued payroll and employee benefits | $121302 | $119285 |

---

Other accrued payroll and employee benefits consist primarily of accrued wages, payroll taxes and disability insurance programs. A portion of accrued bonuses payable will be settled by issuing fully vested restricted stock units. See Note 9 and Note 16 for additional information.

**Note 7: Income Taxes**

Income before income taxes for 2025, 2024 and 2023 consisted of the following:

------

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Domestic | $137082 | $134235 | $125543 |
| Foreign | 10215 | 13135 | 10353 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income taxes | $147297 | $147370 | $135896 |

---

Total income tax expense for 2025, 2024 and 2023 consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $36471 | $28237 | $23193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 2245 | 3041 | 2254 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | 12520 | 10393 | 10025 |
|  | 51236 | 41671 | 35472 |
| Deferred |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | (7635) | (2665) | (775) |
| &nbsp;&nbsp;&nbsp;&nbsp;State | (2313) | (638) | 860 |
|  | (9948) | (3303) | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $41288 | $38368 | $35557 |

---

The Company's effective tax rate differs from the statutory federal tax rate of 21% as shown in the following schedule for the year ended January 2, 2026:

---

| | | |
|:---|:---|:---|
| (In thousands, except for percentages) | Amount | Percent |
| U.S. federal statutory tax rate | $30932 | 21.0% |
| State and local taxes, net of federal income tax effect | 8096 | 5.5% |
| Foreign tax effects | (224) | -0.2% |
| Nontaxable or nondeductible items |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Officer compensation | 1016 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 601 | 0.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Shortfall from equity incentive plans | 205 | 0.1% |
| Changes in unrecognized tax benefits | 631 | 0.5% |
| Others | 31 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $41288 | 28.0% |

---

For the year ended January 2, 2026, state and local income taxes in California and Massachusetts comprise the majority of the state and local income taxes, net of federal income tax effect category.

------

The Company's effective tax rate differs from the statutory federal tax rate of 21% as shown in the following schedule for the years ended January 3, 2025 and December 29, 2023:

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2024 | 2023 |
| Tax at federal statutory rate | $30948 | $28538 |
| State taxes, net of federal benefit | 7699 | 8587 |
| Non-deductible officer compensation | 1787 | 870 |
| Non-deductible expenses | 427 | 456 |
| Non-deductible stock-based compensation | 14 | 12 |
| Excess tax benefit from equity incentive plans | (2239) | (2844) |
| Difference between statutory rate and foreign effective tax rate | (194) | (264) |
| Other | (74) | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax expense | $38368 | $35557 |
| Effective tax rate | 26.0% | 26.2% |

---

Cash paid for income taxes, net of refunds, during the year ended January 2, 2026 was as follows:

---

| | |
|:---|:---|
| (In thousands) |  |
| Federal | $34634 |
| Foreign | 1989 |
| State |  |
| &nbsp;&nbsp;&nbsp;&nbsp;California | 5681 |
| &nbsp;&nbsp;&nbsp;&nbsp;Massachusetts | 971 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 4720 |
| Total cash paid for income taxes, net of refunds | $47995 |

---

Cash paid for income taxes, net of refunds, during the years ended January 3, 2025 and December 29, 2023 was $39,723,000 and $38,944,000, respectively.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2026 and January 3, 2025 are presented in the following schedule:

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and allowances | $26126 | $22831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation plan | 48968 | 43222 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | 23077 | 22782 |
| Total deferred tax assets | $98171 | $88835 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State taxes | $(2548) | $(2310) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deductible goodwill | (2057) | (2065) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | (23077) | (22782) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain of deferred compensation plan assets | (2670) | (3319) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, equipment and leasehold improvements | (744) | (1232) |
| Total deferred tax liabilities | (31096) | (31708) |
| Net deferred tax assets | $67075 | $57127 |

---

Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets.

------

The Company is entitled to a deduction for federal and state tax purposes with respect to employees' stock award activity. The net reduction in taxes otherwise payable arising from that deduction has been recorded as an income tax benefit. For 2025, the Company realized a negative tax impact associated with stock-based awards of $254,000 as compared to positive tax benefits of $2,793,000 and $3,620,000 for 2024 and 2023, respectively.

The Company and its subsidiaries file income tax returns in the United States federal jurisdiction, California and various other state and foreign jurisdictions. The Company is no longer subject to United States federal income tax examination for years prior to 2022. The Company is no longer subject to California franchise tax examinations for years prior to 2021. With few exceptions, the Company is no longer subject to state and local or non-United States income tax examination by tax authorities for years prior to 2021.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

---

| | |
|:---|:---|
| (In thousands) |  |
| Balance at December 29, 2023 | $2145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions based on tax positions related to the current year | 651 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reductions due to lapse of statute of limitations | (369) |
| Balance at January 3, 2025 | $2427 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions based on tax positions related to the current year | 1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reductions due to lapse of statute of limitations | (419) |
| Balance at January 2, 2026 | $3058 |

---

Unrecognized tax benefits are included in other liabilities in the accompanying consolidated balance sheets. To the extent these unrecognized tax benefits are ultimately recognized, they will impact the effective tax rate by $2,416,000 in a future period.

------

**Note 8: Stockholders' Equity**

**Preferred Stock**

The Company has authorized 2,000,000 shares of undesignated preferred stock with a par value of $0.001 per share. None of the preferred shares were issued and outstanding at January 2, 2026 and January 3, 2025.

**Dividends**

The Company declared and paid cash dividends per share of common stock during the periods presented as follows:

---

| | | |
|:---|:---|:---|
|  | Fiscal Year | Fiscal Year |
|  | 2025 | 2025 |
|  | Dividends | Amount |
|  | Per Share | (in thousands) |
| First Quarter | $0.300 | $15246 |
| Second Quarter | $0.300 | 15215 |
| Third Quarter | $0.300 | 15070 |
| Fourth Quarter | $0.300 | 14887 |
|  |  | $60418 |
|  | Fiscal Year | Fiscal Year |
|  | 2024 | 2024 |
|  | Dividends | Amount |
|  | Per Share | (in thousands) |
| First Quarter | $0.280 | $14159 |
| Second Quarter | $0.280 | 14193 |
| Third Quarter | $0.280 | 14212 |
| Fourth Quarter | $0.280 | 14226 |
|  |  | $56790 |

---

**Treasury Stock**

Net losses related to the re-issuance of treasury stock to settle restricted stock unit and stock option awards of $0, $720,000 and $1,009,000 were recorded as a reduction to retained earnings during 2025, 2024 and 2023, respectively.

**Repurchase of Common Stock** 

The Company repurchased 1,354,000 shares of its common stock for $97,807,000 during 2025. The Company repurchased 74,000 shares of its common stock for $5,710,000 during 2024. The Company repurchased 288,000 shares of its common stock for $24,208,000 during 2023. On October 30, 2025, the Board of Directors authorized $100,000,000 for the repurchase of the Company's common stock. On February 1, 2024, the Board of Directors authorized $61,600,000 for the repurchase of the Company's common stock. On February 22, 2022, the Board of Directors authorized $150,000,000 for the repurchase of the Company's common stock. These repurchase programs have no expiration dates. As of January 2, 2026, the Company had remaining authorization under its stock repurchase plan of $96,483,000 to repurchase shares of common stock.

**Note 9: Stock-Based Compensation**

On May 29, 2008, the Company's stockholders approved the 2008 Equity Incentive Plan and the 2008 Employee Stock Purchase Plan ("ESPP"). The 2008 Equity Incentive Plan and ESPP were previously adopted by the Company's Board of Directors on April 8, 2008, subject to stockholder approval.

------

The 2008 Equity Incentive Plan allows for the award of stock options, stock awards (including stock units, stock grants and stock appreciation rights or other similar equity awards) and cash awards to officers, employees, consultants and non-employee members of the Board of Directors. The total number of shares reserved for issuance under the 2008 Equity Incentive Plan was 13,336,300 shares of common stock, subject to adjustment resulting from a stock split or the payment of a stock dividend or any other increase or decrease in the number of issued shares of the Company's stock effected without receipt of consideration by the Company. As of January 2, 2026, 1,979,405 shares were available for grant under the 2008 Equity Incentive Plan.

The ESPP allows for officers and employees to purchase common stock through payroll deductions of up to 15% of a participant's eligible compensation. Shares of common stock are purchased under the ESPP at 95% of the fair market value of the Company's common stock on each purchase date. Subject to adjustment resulting from a stock split or the payment of a stock dividend or any other increase or decrease in the number of issued shares of the Company's stock effected without receipt of consideration by the Company, the total number of shares reserved for issuance under the ESPP was 1,200,000 shares of common stock. As of January 2, 2026, 255,425 shares were available for grant. Weighted average purchase prices for shares sold under the ESPP plan in 2025, 2024 and 2023 were $69.65, $88.70 and $87.12, respectively.

## Restricted Stock Units
The Company grants restricted stock units to employees and outside directors. These restricted stock unit grants are designed to attract and retain employees, and to better align employee interests with those of the Company's stockholders. For a select group of employees, up to 40% of their annual bonus is settled with fully vested restricted stock unit awards. Under these fully vested restricted stock unit awards, the holder of each award has the right to receive one share of the Company's common stock for each fully vested restricted stock unit four years from the date of grant. Each individual who received a fully vested restricted stock unit award is granted a matching number of unvested restricted stock unit awards. These unvested restricted stock unit awards cliff vest four years from the date of grant, at which time the holder of each award will have the right to receive one share of the Company's common stock for each restricted stock unit award, provided the holder of each award has met certain employment conditions. In the case of retirement at 59 ½ years or older, all unvested restricted stock unit awards will continue to vest provided the holder of each award performs all consulting work through the Company and does not become an employee for a past or present client, beneficial party or competitor of the Company.

All restricted stock units granted have dividend equivalent rights ("DER"), which entitle holders of restricted stock units to the same dividend value per share as holders of common stock. DER are subject to the same vesting and other terms and conditions as the corresponding unvested restricted stock units. DER are accumulated and paid when the underlying shares vest and are forfeited if the underlying shares are forfeited.

The value of these restricted stock unit awards is determined based on the market price of the Company's common stock on the date of grant. The value of fully vested restricted stock unit awards issued is recorded as a reduction to accrued bonuses. The portion of bonus expense that the Company expects to settle with fully vested restricted stock unit awards is recorded as stock-based compensation during the period the bonus is earned. For 2025, 2024 and 2023, the Company recorded stock-based compensation expense associated with accrued bonus awards of $12,023,000, $12,182,000 and $10,445,000, respectively.

The Company recorded stock-based compensation expense associated with the unvested restricted stock unit awards of $10,458,000, $9,634,000 and $8,831,000 during 2025, 2024 and 2023, respectively. The total fair value of restricted stock unit awards vested during 2025, 2024 and 2023 was $18,416,000, $21,286,000 and $25,277,000, respectively. The weighted-average grant date fair values of restricted stock unit awards granted during 2025, 2024 and 2023 were $82.48, $79.59 and $99.47, respectively.

------

The number of unvested restricted stock unit awards outstanding as of January 2, 2026 is as follows <sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Number<br>of awards<br>outstanding | Weighted-<br>average<br>grant date<br>fair value | Weighted-<br>average<br>remaining<br>contractual<br>term (years) | Aggregate<br>intrinsic value<br>(in thousands) <sup>(2)</sup> |
| Balance at January 3, 2025 | 413296 | $91.43 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Awards granted | 311549 | 82.48 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Awards vested | (223386) | 88.12 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Awards forfeited | (13406) | 87.54 |  |  |
| Balance at January 2, 2026 | 488053 | $87.34 | 1.9 | $34237 |

---

<sup>(1)</sup> Does not include employee stock purchase plans or stock option plans.

<sup>(2)</sup> The intrinsic value is calculated as the market value as of the end of the fiscal period. As reporte1d by the NASDAQ Global Select Market, the market value as of January 2, 2026 was $70.15.

## Stock Options
The Company currently grants stock options under the 2008 Equity Incentive Plan. Options are granted for terms of 10 years and generally vest ratably over a four-year period from the grant date. In the case of retirement at 59 ½ years or older, all unvested stock options will continue to vest provided the holder of each option does all consulting work through the Company and does not become an employee for a past or present client, beneficial party, or competitor of the Company. The Company grants options at exercise prices equal to the fair value of the Company's common stock on the date of grant. All stock options have DER, which entitle holders of stock options to the same dividend value per share as holders of common stock. DER are subject to the same vesting terms as the corresponding stock options. DER are accumulated and paid in cash when the underlying stock options vest and are forfeited if the underlying stock options do not vest. During 2025, 2024 and 2023, the Company recorded stock-based compensation expense of $1,314,000, $1,423,000 and $1,081,000, respectively, associated with stock options.

Option activity is as follows <sup>(1)</sup>:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Number<br>of shares<br>outstanding | Weighted-<br>average<br>exercise<br>price | Weighted-<br>average<br>remaining<br>contractual<br>term (years) | Aggregate<br>intrinsic value<br>(in thousands) |
| Exercisable at January 3, 2025 | 379029 | $61.11 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options granted | 35000 | 85.50 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options forfeited and expired |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Options exercised | (38044) | 25.92 |  |  |
| Balance at January 2, 2026 | 375985 | $66.94 | 4.63 | $4927 |
| Exercisable at January 2, 2026 | 286281 | $60.92 | 3.53 | $4927 |

---

<sup>(1)</sup> Does not include restricted stock or employee stock purchase plans.

The total intrinsic value of options exercised during 2025, 2024 and 2023 was $1,796,000, $8,410,000 and $742,000, respectively. The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year ended January 2, 2026, and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on January 2, 2026. This amount changes based on the fair-value of the Company's stock.

------

The Company uses the Black-Scholes option-pricing model to determine the fair value of options granted. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company's stock price as well as assumptions regarding a number of complex and subjective variables. These variables include expected stock price volatility over the term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends.

The Company used historical exercise and post-vesting forfeiture and expiration data to estimate the expected term of options granted. The historical volatility of the Company's common stock over a period of time equal to the expected term of the options granted was used to estimate expected volatility. The risk-free interest rate used in the option-pricing model was based on United States Treasury zero coupon issues with remaining terms similar to the expected term on the options. The dividend yield assumption considers the expectation of continued declaration of dividends, offset by option holders' DER. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards.

The assumptions used to value option grants for 2025, 2024 and 2023 are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Stock Option Plan | Stock Option Plan | Stock Option Plan |
|  | Fiscal Years | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 | 2023 |
| Expected term (in years) | 5.8 | 5.7 | 5.8 |
| Risk-free interest rate | 4.39% | 4.26% | 3.99% |
| Volatility | 31% | 30% | 29% |
| Dividend yield | 0% | 0% | 0% |

---

The weighted-average grant date fair value of options granted during 2025, 2024 and 2023 were $32.31, $28.36 and $38.29, respectively.

The amount of stock-based compensation expense and the related income tax benefit recognized in the Company's consolidated statements of income for 2025, 2024 and 2023 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Compensation and related expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units | $21727 | $21086 | $18542 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option grants | 1314 | 1423 | 1081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sub-total | 23041 | 22509 | 19623 |
| General and administrative expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock units | 754 | 730 | 734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sub-total | 754 | 730 | 734 |
| Total stock-based compensation expense | $23795 | $23239 | $20357 |
| Income tax benefit | $(254) | $2793 | $3620 |

---

As of January 2, 2026, there was $14,693,000 of unrecognized compensation cost, expected to be recognized over a weighted average period of 2.5 years, related to unvested restricted stock unit awards and $1,170,000 of unrecognized compensation cost, expected to be recognized over a weighted average period of 2.0 years, related to unvested stock options.

------

**Note 10: Retirement Plans**

The Company provides a defined contribution retirement plan for its employees whereby the Company contributes to each eligible employee's account 7% of the employee's eligible salary. The employee does not need to make a contribution to the plan to be eligible for the Company's 7% contribution. To be eligible under the plan, an employee must be at least 21 years of age and be either a full-time or part-time salaried employee. The 7% Company contribution will vest 20% per year for the first five years of employment and then immediately thereafter. These contributions are made to the 401(k) plan up to the statutory maximum. Any portion of the 7% contribution in excess of the statutory maximum is made to the Company's nonqualified deferred compensation plan. The Company's expenses related to this plan were $12,332,000, $11,704,000 and $11,867,000 in 2025, 2024 and 2023, respectively.

**Note 11: Deferred Compensation Plans**

The Company maintains nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees. Under these plans, participants may elect to defer up to 100% of their compensation. Company assets that are earmarked to pay benefits under the plans are held in a rabbi trust and are subject to the claims of the Company's creditors. As of January 2, 2026 and January 3, 2025, invested amounts under the plans totaled $139,515,000 and $127,837,000, respectively. These assets are classified as trading securities and are recorded at fair market value with changes recorded as adjustments to miscellaneous income, net.

As of January 2, 2026 and January 3, 2025, vested amounts due under the plans totaled $144,706,000 and $127,622,000, respectively. Changes in the liability are recorded as adjustments to compensation and related expense. During 2025, 2024 and 2023, the Company recognized compensation expense of $17,363,000, $14,928,000 and $14,315,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as other income, net.

**Note 12: Leases**

The Company determines if an arrangement is a lease at the inception of the arrangement. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities, and long-term operating lease liabilities in the Company's consolidated balance sheet. The Company does not have any finance leases as of January 2, 2026.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The amortization of operating lease ROU assets and the change in operating lease liabilities is disclosed as a single line item in the consolidated statements of cash flows.

The Company leases office, laboratory, and storage space in 12 states and the District of Columbia, as well as in China, Hong Kong, Switzerland and the United Kingdom. Leases for these office, laboratory, and storage facilities have terms generally ranging between one and 10 years. Some of these leases include options to extend or terminate the lease, none of which are currently included in the lease term as the Company has determined that exercise of these options is not reasonably certain.

The Company has a Test and Engineering Center on 147 acres of land in Phoenix, Arizona. The Company leases this land from the State of Arizona under an agreement that expires in January of 2043 that includes an option to renew for one fifteen-year period.

The Company's equipment leases are included in the ROU asset and liability balances, but are not material.

------

The components of lease expense included in other operating expenses on the consolidated statements of income were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Operating lease cost | $12438 | $11061 | $7732 |
| Variable lease cost | 1448 | 1425 | 1635 |
| Short-term lease cost | 1395 | 1345 | 1174 |

---

Supplemental cash flow information related to operating leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities | $8094 | $7559 | $7249 |

---

Supplemental balance sheet information related to operating leases was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
|  | 2025 | 2024 | 2023 |
| Weighted Average Remaining Lease Term | 13.0 years | 13.7 years | 6.1 years |
| Weighted Average Discount Rate | 6.3% | 6.3% | 5.1% |

---

Maturities of operating lease liabilities as of January 2, 2026:

---

| | |
|:---|:---|
|  | Operating |
| (In thousands) | Leases |
| 2026 | 9409 |
| 2027 | 8181 |
| 2028 | 10913 |
| 2029 | 9604 |
| 2030 | 9097 |
| Thereafter | 80132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease payments | $127336 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less imputed interest | 44502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease liability | $82834 |

---

**Note 13: Commitments and Contingencies**

The Company is a party to various legal actions from time to time and may be contingently liable in connection with claims and contracts arising in the normal course of business, the outcome of which the Company believes, after consultation with legal counsel, will not have a material adverse effect on its financial condition, results of operations or liquidity. However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results. All legal costs associated with litigation are expensed as incurred.

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# Note 14: Miscellaneous Income, Net
Miscellaneous income, net, consisted of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Rental income | $997 | $2853 | $3371 |
| Gain on deferred compensation investments | 17363 | 14928 | 14315 |
| Loss on foreign exchange | (158) | (14) | (259) |
| Other | 1 | 45 | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $18203 | $17812 | $17424 |

---

# Note 15: Industry and Client Concentration Risk
The Company serves clients in various segments of the economy. During 2025, the Company provided services representing approximately 21%, 20%, 16% and 11% of revenues to clients in the consumer products industry, energy and utilities industries, the transportation industry and the chemical industry, respectively.

No single client comprised more than 10% of the Company's revenues during 2025, 2024 or 2023.

**Note 16: Supplemental Cash Flow Information**

The following is supplemental disclosure of cash flow information:

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Non-cash investing and financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested stock unit awards granted to settle accrued bonus | 12179 | 10846 | 10496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset obtained in exchange for operating<br> lease obligation | 4742 | 58032 | 15749 |
| &nbsp;&nbsp;&nbsp;&nbsp;Leasehold improvements obtained in exchange for right-of-use asset | - | - | 3219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrual for capital expenditures | 242 | 575 | 137 |

---

**Note 17: Segment Reporting**

The Company has two reportable operating segments based on two primary areas of service. The Engineering and Other Scientific segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health segment provides services in the area of environmental, epidemiology and health risk analysis. This segment provides a wide range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment.

Segment information is presented for selected data from the statements of income and statements of cash flows for 2025, 2024 and 2023. Segment information for selected data from the balance sheets is presented for the fiscal years ended January 2, 2026 and January 3, 2025. The Company's CEO, the chief operating decision maker, does not review total assets in her evaluation of segment performance and capital allocation.

**Revenues**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Engineering and Other Scientific | $493893 | $469544 | $446888 |
| Environmental and Health | 88121 | 88970 | 89878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | $582014 | $558514 | $536766 |

---

------

**Compensation and related expenses**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Engineering and Other Scientific | $230326 | $223395 | $215650 |
| Environmental and Health | 47767 | 47600 | 48619 |
| Total segment compensation and related expenses | 278093 | 270995 | 264269 |
| Corporate compensation and related expenses | 63901 | 59016 | 55617 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total compensation and related expenses | $341994 | $330011 | $319886 |

---

Certain expenses are excluded from the Company's measure of segment compensation and related expenses. These include the deferred compensation expense/benefit due to changes in value of assets associated with the Company's deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards, and the compensation costs associated with the Company's human resources, finance, information technology, corporate, and business development groups.

**Operating Income**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Engineering and Other Scientific | $173625 | $164883 | $153918 |
| Environmental and Health | 30558 | 29995 | 28432 |
| Total segment operating income | 204183 | 194878 | 182350 |
| Corporate operating expense | (84396) | (75321) | (71028) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating income | $119787 | $119557 | $111322 |

---

Certain operating expenses are excluded from the Company's measure of segment operating income. These expenses include the costs associated with the Company's human resources, finance, information technology, corporate, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with the Company's deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in the Company's allowance for contract losses and doubtful accounts.

**Capital Expenditures**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Engineering and Other Scientific | $5341 | $3257 | $3895 |
| Environmental and Health | 238 | 77 | 170 |
| Total segment capital expenditures | 5579 | 3334 | 4065 |
| Corporate capital expenditures | 3478 | 4043 | 14630 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capital expenditures | $9057 | $7377 | $18695 |

---

Certain capital expenditures associated with the Company's corporate cost centers and the related depreciation are excluded from the Company's segment information.

------

**Depreciation and Amortization**

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| Engineering and Other Scientific | $7344 | $6833 | $6087 |
| Environmental and Health | 201 | 206 | 213 |
| Total segment depreciation and amortization | 7545 | 7039 | 6300 |
| Corporate depreciation and amortization | 2538 | 2650 | 2616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total depreciation and amortization | $10083 | $9689 | $8916 |

---

Information regarding the Company's operations in different geographical areas:

**Property, Equipment and Leasehold Improvements, net**

---

| | | |
|:---|:---|:---|
|  | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 |
| United States | $71135 | $72418 |
| Foreign Countries | 846 | 589 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $71981 | $73007 |

---

**Revenues** <sup>(1)</sup>

---

| | | | |
|:---|:---|:---|:---|
|  | Fiscal Years | Fiscal Years | Fiscal Years |
| (In thousands) | 2025 | 2024 | 2023 |
| United States | $520591 | $493067 | $470078 |
| Foreign Countries | 61423 | 65447 | 66688 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $582014 | $558514 | $536766 |

---

<sup>(1)</sup> Geographic revenues are allocated based on the location of the client.

Below is a breakdown of goodwill, reported by segment as of January 2, 2026 and January 3, 2025:

---

| | | | |
|:---|:---|:---|:---|
| (In thousands) | Environmental<br>and Health | Engineering<br>and Other<br>Scientific | Total |
| Goodwill | $8099 | $508 | $8607 |

---

There were no changes in the carrying amount of goodwill for 2025, 2024 and 2023. There were no goodwill impairments or gains or losses on disposals for any portion of the Company's reporting units during 2025, 2024, and 2023.

**Note 18: Subsequent Events**

On February 5, 2026, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.31 per share to be paid on March 20, 2026 to all common stockholders of record as of March 6, 2026.

------

**Schedule II**

**Valuation and Qualifying Accounts**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Additions | Additions | Deletions <sup>(1)</sup> |  |
| (In thousands) | Balance at <br>Beginning<br>of Year | Provision<br>Charged to<br>Expense | Provision<br>Charged to<br>Revenues | Accounts<br>Written-<br>off Net of<br>Recoveries | Balance<br>at End<br>of Year |
| Year Ended January 2, 2026 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for bad debt | $1351 | $808 | $— | $(290) | $1869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for contract losses | $4790 | $— | $2180 | $(1361) | $5609 |
| Year Ended January 3, 2025 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for bad debt | $1162 | $993 | $— | $(804) | $1351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for contract losses | $4119 | $— | $3457 | $(2786) | $4790 |
| Year Ended December 29, 2023 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for bad debt | $1239 | $856 | $— | $(933) | $1162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for contract losses | $4954 | $— | $2368 | $(3203) | $4119 |

---

<sup>(1)</sup> Balance includes currency translation adjustments.

Recoveries of accounts receivable previously written off were $176,000, $74,000 and $181,000 for 2025, 2024 and 2023, respectively.

Schedules other than above have been omitted since they are either not required, not applicable, or the information is otherwise included in the Annual Report on Form 10-K.

------

**EXHIBIT INDEX**

The following exhibits are filed as part of, or incorporated by reference into (as indicated parenthetically), the Annual Report on Form 10-K. Unless otherwise indicated all filings are under SEC File Number 000-18655:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;3.1(i) | Restated Certificate of Incorporation of the Company (incorporated by reference from the Company's Registration Statement on Form S-1 as filed on June 25, 1990, registration number 33-35562). (P) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1(ii) | [<u>Certificate of Amendment of Restated Certificate of Incorporation dated January 30, 1998 (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2025).</u>](https://www.sec.gov/Archives/edgar/data/851520/000095017025030001/expo-ex3_1ii.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1(iii) | [<u>Certificate of Amendment of Restated Certificate of Incorporation of the Company (incorporated by reference from the Company's Current Report on Form 8-K filed on May 24, 2006).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312506118814/dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1(iv) | [<u>Certificate of Amendment of Restated Certificate of Incorporation of the Company (incorporated by reference from the Company's Current Report on Form 8-K filed on May 28, 2015).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420415034077/v411916_ex3-1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1(v) | [<u>Certificate of Amendment of Restated Certificate of Incorporation of the Company (incorporated by reference from the Company's Current Report on Form 8-K filed on May 31, 2018).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420418031995/tv495574_ex3-1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2(i) | [<u>Amended and Restated Bylaws of the Company, as amended and restated December 15, 2022 (incorporated by reference from the Company's Current Report on Form 8-K as filed on December 19, 2022).</u>](https://www.sec.gov/Archives/edgar/data/851520/000095017022026691/expo-ex3_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | Specimen copy of Common Stock Certificate of the Company (incorporated by reference from the Company's Registration Statement on Forms S-1 as filed on June 25, 1990, registration number 33-35562). (P) |
| &nbsp;&nbsp;&nbsp;&nbsp;\*4.2 | [<u>Description of the Registrant's Securities (incorporated by reference from the Company's Annual Report on Form 10-K for fiscal year ended January 1, 2021).</u>](https://www.sec.gov/Archives/edgar/data/851520/000156459020007824/expo-ex42_453.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.1 | [<u>Commercial Lease No. 03-53542 between the Company and the Arizona State Land Department, effective January 17, 1998 (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2003).</u>](https://www.sec.gov/Archives/edgar/data/851520/000101287003001568/dex1015.txt) |
| \*10.2  | [<u>Exponent Nonqualified Deferred Compensation Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312505051002/dex1017.htm) |
| \*10.3 | [<u>Amended and Restated Nonqualified Deferred Compensation Plan dated January 1, 2022 (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021)</u>](https://www.sec.gov/Archives/edgar/data/851520/000156459022007169/expo-ex1018_309.htm) |
| \*10.4 | [<u>Form of Indemnification Agreement entered into or proposed to be entered into between the Company and its officers and directors (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312506105265/dex1019.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.5 | [<u>Services Agreement between the Company and Exponent Engineering P.C. (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2006).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312506105265/dex1020.htm) |
| \*10.6 | [<u>2008 Employee Stock Purchase Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2009).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312509036413/dex1028.htm) |
| \*10.7 | [<u>Form of Restricted Stock Unit Employee Bonus Grant Agreement under the 2008 Equity Incentive Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2009).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312509036413/dex1031.htm) |
| \*10.8 | [<u>Form of Restricted Stock Unit Employee Matching Grant Agreement under the 2008 Equity Incentive Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2009).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312509036413/dex1032.htm) |
| \*10.9 | [<u>Form of Restricted Stock Unit Director Grant Agreement under the 2008 Equity Incentive Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2009).</u>](https://www.sec.gov/Archives/edgar/data/851520/000119312509036413/dex1033.htm) |

---

------

---

| | |
|:---|:---|
| \*10.10 | [<u>Exponent, Inc. Amended and Restated 2008 Equity Incentive Plan (filed as Appendix A to the Company's Schedule 14A filed on April 19, 2012).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420412022592/v309562_def14a.htm) |
| \*10.11 | [<u>Exponent, Inc. 401(k) Savings Plan, as amended and restated effective January 1, 2014 (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2021).</u>](https://www.sec.gov/Archives/edgar/data/851520/000156459021009433/expo-ex1038_9.htm) |
| \*10.12 | [<u>First Amendment to the Exponent, Inc. 401(k) Savings Plan (as amended and restated January 1, 2014) (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2021).</u>](https://www.sec.gov/Archives/edgar/data/851520/000156459021009433/expo-ex1039_12.htm) |
| \*10.13 | [<u>Second Amendment to the Exponent, Inc. 401(k) Savings Plan (as amended and restated January 1, 2014) (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2021).</u>](https://www.sec.gov/Archives/edgar/data/851520/000156459021009433/expo-ex1040_8.htm) |
| \*10.14 | [<u>Form of Stock Option Agreement under the 2008 Equity Incentive Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2011).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420412010942/v242932_ex10-41.htm) |
| \*10.15 | [<u>Amendment to Form of Stock Option Agreement under the 2008 Equity Incentive Plan (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2012).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420413011685/v333733_ex10-43.htm) |
| \*10.16 | [<u>Form of Indemnification Agreement entered into or proposed to be entered into between the Company and its officers and directors (incorporated by reference from the Company's Current Report on Form 8-K as filed on May 30, 2014).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420414034393/v380134_ex10-1.htm) |
| \*10.17 | [<u>Executive Compensation Clawback Policy (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2016).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420416131513/v450900_ex10-46.htm) |
| \*10.18 | [<u>Exponent, Inc. Amended and Restated 2008 Equity Incentive Plan (filed as Appendix A to the Company's Schedule 14A on April 18, 2017).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420417020911/v464399_def14a.htm#a_054) |
| \*10.19 | [<u>Exponent, Inc. Amended and Restated 2008 Employee Stock Purchase Plan (filed as Appendix B to the Company's Schedule 14A on April 18, 2017).</u>](https://www.sec.gov/Archives/edgar/data/851520/000114420417020911/v464399_def14a.htm#a_055) |
| \*10.20 | [<u>Exponent, Inc. Amended and Restated 2008 Equity Incentive Plan (filed as Appendix A to the Company's Schedule 14A on April 22, 2024).</u>](https://www.sec.gov/Archives/edgar/data/851520/000095017024046483/expo-20240422.htm#appendix_a) |
| &nbsp;&nbsp;&nbsp;&nbsp;10.21 | [<u>Notice of Election to Extend Lease between the Company and the Arizona State Land Department (incorporated by reference from the Company's Current Report on Form 8-k as filed on Jun 24, 2024)</u>](https://www.sec.gov/Archives/edgar/data/851520/000095017024076817/expo-ex10_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;19.1 | [<u>Insider Trading Policy</u>](expo-ex19_1.htm) |
| 21.1 | [<u>List of subsidiaries.</u>](expo-ex21_1.htm) |
| 23.1 | [<u>Consent of Independent Registered Public Accounting Firm.</u>](expo-ex23_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.1 | [<u>Certification of Chief Executive Officer pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934.</u>](expo-ex31_1.htm) |
| 31.2 | [<u>Certification of Chief Financial Officer pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934.</u>](expo-ex31_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.1 | [<u>Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.</u>](expo-ex32_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.2 | [<u>Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.</u>](expo-ex32_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;97.01 | [<u>Exponent, Inc. Incentive Compensation Recovery Policy (incorporated by reference from the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2025)</u>](https://www.sec.gov/Archives/edgar/data/851520/000095017025030001/expo-ex97_0.htm) |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document. |

---

------

---

| | |
|:---|:---|
| 101.LAB | Inline XBRL Taxonomy Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Definition Linkbase Document. |
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

\* Indicates management compensatory plan, contract or arrangement

------

**<u>SIGNA</u><u>TURES</u>**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | EXPONENT, INC. | EXPONENT, INC. |
|  | (Registrant) | (Registrant) |
| Date: February 27, 2026 | By: | /s/ Richard L. Schlenker, Jr. |
|  |  | Richard L. Schlenker, Jr., Executive Vice President, |
|  |  | Chief Financial Officer and Corporate Secretary |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Catherine Ford Corrigan | Chief Executive Officer and Director | February 27, 2026 |
| Catherine Ford Corrigan, Ph.D. | (Principal Executive Officer) |  |
| /s/ Richard L. Schlenker, Jr. | Executive Vice President, Chief Financial Officer and Corporate Secretary (Principal Financial and Accounting Officer) | February 27, 2026 |
| Richard L. Schlenker, Jr. | Executive Vice President, Chief Financial Officer and Corporate Secretary (Principal Financial and Accounting Officer) | February 27, 2026 |
| /s/ Paul R. Johnston | Chairman of the Board of Directors | February 27, 2026 |
| Paul R. Johnston, Ph.D. |  |  |
| /s/ George Brown | Director | February 27, 2026 |
| George Brown |  |  |
| /s/ Carol Lindstrom | Director | February 27, 2026 |
| Carol Lindstrom |  |  |
| /s/ Karen Richardson | Director | February 27, 2026 |
| Karen Richardson |  |  |
| /s/ Debra L. Zumwalt | Director | February 27, 2026 |
| Debra L. Zumwalt |  |  |

---

------

## Exhibit 19.1

**Exhibit 19.1**

**<br>Exponent, Inc. Policy on Transactions in Company Securities** <br>and procedures governing "Insider Trading"<br>(as amended through February 17, 2026)

**1. Purpose of Policy**

This Policy describes the responsibility of employees, officers and members of the board of directors of EXPONENT, INC. (the "Company") to comply with the laws governing securities transactions. In addition, the Company has established guidelines and procedures to protect the reputation of the Company and its employees, facilitate compliance with regulatory requirements and avoid even the appearance of improper conduct.

**2. General Statement**

**2.1 General Statement of Policy**

It is the policy of the Company that no director, officer or employee of the Company who is aware of material nonpublic information ("Inside Information") may, directly or indirectly, (1) buy or sell securities of the Company, (2) buy or sell securities of a customer, supplier or partner of the Company to which Inside Information applies, (3) disclose Inside Information to unauthorized persons outside the Company or (4) otherwise take personal advantage of Inside Information.

**2.2 Glossary of Capitalized Terms**

Capitalized terms used in this Policy (such as, Inside Information) are defined in the Glossary contained in Appendix 1.

**3. Applicability**

**3.1 Transactions in Company securities.**

This Policy applies to all Transactions in the Company's securities, including common stock, options for common stock and any other securities the Company may issue from time to time, such as preferred stock, warrants and convertible debentures, as well as to derivative securities relating to the Company's stock, whether or not issued by the Company, such as exchange-traded options.

**3.2 Persons subject to Policy: Insiders and Related Persons**

This Policy applies to all employees, officers and members of the board of directors of the Company ("Insiders"). It also applies members of Insiders' immediate families and others living in their households, and other entities (such as trusts, partnerships and corporations) over which Insiders have or share voting or investment control. These other individuals and entities, for whose actions the Insider may be held responsible, are referred to as "Related Persons."

In the discretion of the Compliance Officer, the Policy may also apply to consultants and contractors to the Company who receive or have access to material nonpublic information, or "Inside Information." What constitutes Inside Information is discussed in section 5, beginning on page 2 of this Policy, and in Appendix 3.

**4. Responsibility for Compliance and Administration**

**4.1 Compliance**

Every employee, officer, director and other Insider is responsible for compliance with this Policy. In addition, each Insider is responsible for taking reasonable steps to ensure compliance by their family and other Related Persons. The procedures set forth in this Policy are basic standards, and appropriate judgment should be exercised in connection with any Transaction in the Company's securities.

------

**4.2 Administration: Role of Compliance Officer**

The Compliance Officer is responsible for the administration of this Policy.

The Compliance Officer is the Company's Chief Financial Officer. Any person with questions about complying with the requirements of the Policy should contact the Compliance Officer. As of April 2006, the Compliance Officer is Rich Schlenker, Chief Financial Officer and Corporate Secretary.

**5. Definition of Inside Information**

"Inside Information" is more formally described as "material nonpublic information." Information should be regarded as ***material*** if there is a reasonable likelihood that it would be considered important to an investor in making an investment decision, or if its disclosure would significantly alter the total mix of information available about the Company. Either positive or negative information may be material. Information is ***nonpublic*** if it has not been previously disclosed by the Company and is otherwise not available to the general public.

Thus, Inside Information has the characteristics of (a) not being available to the general public and (b) of a nature that would be expected to affect the investment or voting decision of a reasonable shareholder or investor.

A partial list of examples of Inside Information is provided in Appendix 3.

**6. Specific Policies Applicable to All Employees and Other Insiders**

**6.1 No Trading on the basis of Inside Information.**

No Insider shall engage in any Transaction involving a purchase or sale of the Company's securities, including any offer to purchase or offer to sell, during any period (a) commencing with the date that he or she possesses Inside Information concerning the Company and (b) ending at the close of business on the second Trading Day following the date of public disclosure of that information, or at such time as such nonpublic information is no longer material. The term "Trading Day" means a day on which national stock exchanges open for trading.

It does not matter whether there is an independent reason for a proposed Transaction (such as, a scheduled payment on a home or college tuition): if the Insider has Inside Information, the Transaction may not be made. This result applies even if the Transaction was planned before learning of the Inside Information, and even though the failure to execute such transaction may result in an economic loss or the non-realization of anticipated profit. The only exception is for sales and purchases under a qualified "Rule 10b5-1 Plan," over which the Insider has no direct control (see section 11.5).

To avoid even the appearance of improper conduct, all employees are encouraged to contact the Compliance Officer with any questions.

**6.2 No Tipping.**

No Insider shall (a) disclose ("tip") Inside Information to any unauthorized person (including family members) if there is a possibility that such information may be used by such person to his or her profit by trading in securities, or (b) make recommendations or express opinions on the basis of Inside Information as to trading in the Company's securities (or the securities of another company which is the subject of inside Information). Communications deemed to constitute tipping include not only providing Inside Information directly to a specific person, but also indirectly providing Inside Information indirectly through channels of mass media, such as the Internet.

The Company also strongly discourages all employees, officers and directors from giving trading advice concerning the Company to any third parties, even when the employee, officer or directors is unaware of any Inside Information.

**6.3 Confidentiality of Nonpublic Information.**

------

Nonpublic information relating to the Company is the property of the Company and the unauthorized disclosure of such information is forbidden. No Insider may disclose Inside Information concerning the Company to any outside person (including family members, analysts, individual investors and members of the investment community and news media), unless required as part of the Insider's regular duties or authorized by the Compliance Officer. All inquiries from outsiders regarding the Company must be forwarded to the Compliance Officer.

**6.4 No Disclosure in Internet "Chat Rooms."**

The Company will regard it as a violation of this Policy for any Insider to disclose, or participate in the disclosure of, any information related to the Company's business, prospects, financial condition or employees by means of participation in an Internet "chat room" or other similar space on the Internet. Any violator of this provision will be subject to the possible disciplinary actions described in section 8.3 on page 7.

**6.5 No Hedging.**

Directors, officers and employees are prohibited from selling short or otherwise engaging in hedging or offsetting transactions involving the Company's securities, including the trading of the Company's securities on margin.

**6.6 Restrictions on Gifts.**

No Insider may give or make any other transfer of Company securities without consideration during a period when the Insider is not permitted to trade unless the donee or transferee has agreed in writing to hold the Company securities until the Trading Window described in section 7.2 is first open.

**6.7 Restrictions on Related Entity Distributions.**

No trust, partnership, corporation or other entity over which an Insider has or shares voting or investment control may distribute securities of the Company to its limited partners, general partners or shareholders during a period when the Insider is not permitted to trade, unless the entity has agreed in writing to hold the securities until the Trading Window described in section 7.2 is first open.

**7. Requirements applicable to Directors, Officers and other Designated Insiders**

**7.1 Applicability of pre-clearance and trading window requirements.**

The procedures regarding a trading window and the pre-clearance of trades set forth in sections 7.2 and 7.3, below, are applicable (1) to all directors and executive officers of the Company, and (2) to those other employees and consultants whom the Company believes have regular access to Inside Information in the course of their duties (collectively, "Designated Insiders"). Designated Insiders at the release date of this Policy are listed on Appendix 2 to this Policy. The lists of persons to whom such policies are applicable may be changed by the Company from time to time as circumstances require.

**7.2 Trading Window.**

To ensure compliance with this Policy and applicable federal and state securities laws, the Company requires that Designated Insiders conduct Transactions in the Company's securities only during a "Trading Window" that begins at the close of business on the second Trading Day following the date of public disclosure of the financial results for a particular fiscal quarter or year; andends at the close of business on the day that is five weeks before the beginning of the next fiscal quarter.

From time to time, the Company may "close the Trading Window," and require that Designated Insiders (and, in its discretion, any or all other employees) suspend trading. The decision to suspend trading may be based on unusual market conditions, developments known to the Company and not yet disclosed to the public or other factors. In such event, anyone affected by the decision is instructed not to engage in any transaction involving the purchase or sale of the Company's securities during such period, and should not disclose to others the fact of such suspension of trading.

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It should be noted, however, that even during the Trading Window, any person possessing Inside Information concerning the Company should not engage in any transactions in the Company's securities, whether or not the Company has recommended a suspension of trading, until such information has been known publicly for at least two Trading Days. Trading in the Company's securities during the trading window should not be considered a "safe harbor," and all directors, officers and other persons should use good judgment at all times.

**7.3 Pre-clearance Procedure.**

The Company has determined that all Designated Insiders must refrain from trading in the Company's securities, even during the Trading Window, without first complying with the Company's "Pre-clearance Procedure." Each such Designated Insider is required contact the Compliance Officer prior to commencing any Transaction in the Company's securities.

Requests from Designated Insiders to trade the Company's securities should be communicated in writing (or e-mail) to the Compliance Officer. If the Compliance Officer approves the request, the approval will be in writing (or e-mail).

The Pre-clearance Procedure also applies to any transaction that might enable another person to sell Company securities for a Designated Insider's account (see section 7.4, below).

The Company may find it necessary, from time to time, to require compliance with the Pre-clearance Procedure from other employees, consultants and contractors as well.

As with the Trading Windows, Pre-clearance is not a "safe harbor", and persons possessing Inside Information concerning the Company may not trade, regardless of whether they have complied with the Pre-clearance Procedure.

**7.4 Margin Accounts and Pledges.**

No officer or director of the Company, nor any employee whose name or job description is listed on Appendix 2 ("Designated Insiders") to this Policy, may enter into any secured loan, line of credit or other financial arrangement by which securities of the Company could be sold for the account of the employee, officer or director (for instance, to meet a "margin call" or minimum collateral requirement) at a time controlled by another person. As a general rule, securities of the Company held in broker name should be designated as "non-marginable." No officer or director of the Company, nor any employee whose name or job description is listed on Appendix 2 ("Designated Insiders") to this Policy, may pledge company securities as collateral.

**8. Potential Criminal and Civil Liability and/or Disciplinary Action**

**8.1 Civil and Criminal Liability for Unlawful Insider Trading.**

The legal consequences of violating the insider trading laws and regulations can be severe. For engaging in a Transaction in the Company's securities at a time when they possess Inside Information, Insiders (or their Related Persons or other "tippees") may be subject to civil penalties of up to three times the profit gained (or loss avoided); a criminal fine up to $1 million; and a federal prison term of up to ten years.

**8.2 Liability for Tipping.**

Insiders may also be liable for improper transactions by any person (commonly referred to as a "tippee") to whom they have disclosed nonpublic information regarding the Company or to whom they have made recommendations or expressed opinions on the basis of such information as to trading in the Company's securities. An employee who "tips" an outsider who then trades is subject to the same penalties as the trader, even if no profit was realized by the employee.<br>The SEC, the stock exchanges and the National Association of Securities Dealers, Inc. use sophisticated electronic surveillance techniques to uncover insider trading.

**8.3 Possible Disciplinary Actions.**

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Employees of the Company who violate this Policy shall also be subject to disciplinary action by the Company, which may include ineligibility for future participation in the Company's equity incentive plans or termination of employment for cause. A violation of the Company's policy is not necessarily the same as a violation of law. In fact, the Company's policy is intended to be broader than the law.

**8.4 Reporting of Violations.**

Any employee, officer or director who violates this policy or any federal or state laws governing insider trading or tipping, or knows of any such violation by any other employee, officer or director, must report the violation immediately to the Compliance Officer.

**9. Material Nonpublic Information Regarding Other Companies**

This Policy and the accompanying guidelines also apply to Inside Information relating to other companies, including the Company's customers, vendors or suppliers ("business partners"), obtained in the course of an Insider's services for the Company. Civil and criminal penalties, and disciplinary action by the Company including termination of employment, may result from trading on inside information regarding the Company's business partners. All employees should treat Inside Information about the Company's business partners with the same care required with respect to information related directly to the Company.

**10. Short-swing Trading**

The Company encourages employees to own the Company's securities, in order to foster greater focus on the long-term business objectives of building revenues, profits and stockholder value. While investment is encouraged, short-swing trading in the Company's securities – market sales and purchases within a relatively short period, such as six months – is inherently more of a speculative activity and is not viewed as acceptable conduct for a Company employee.

Short-swing trading may result in an undue focus on short-term stock market performance. In addition, outside parties may draw inferences from the market transactions of an employee in the company's stock. Officers and directors are prohibited by law from engaging in sales and purchases within six months; other employees are urged to follow the same guideline.<br>

**11. Exceptions for Transactions under Stock Purchase, Stock Option and Rule 10b5-1 Plans**

**11.1 Employee Stock Purchase Plan**

The trading prohibitions and restrictions set forth in this Policy do not apply to purchases of the Company's securities under the Employee Stock Purchase Plan, which are made pursuant to instructions given during specified enrollment periods. However, any market sale (including a broker-assisted "cashless exercise) of securities acquired under the Stock Purchase Plan is subject to the provisions and restrictions of this Policy.

**11.2 Stock Option Plans**

The trading prohibitions and restrictions of this Policy do not apply to the exercise of stock options (i) for cash under the Company's stock option plans, or (ii) made on a net basis or by the delivery of stock owned by the option holder (provided in the case of clause (ii) that such exercise is approved by the Compliance Officer and at least one member of the Company's Audit Committee). However, the provisions and restrictions of this Policy do apply to all sales of securities acquired through the exercise of stock options granted by the Company.

**11.3 Transaction under Qualified Plans complying with Rule 10b5-1.**

The trading prohibitions and pre-clearance procedure described in this Policy do not apply to Transactions made by (i) an employee, officer or director of the Company under a "Qualified Plan" to trade securities under Rule 10b5-1 of the Securities Exchange Act, or (ii) by the Company pursuant to trading plans under Rule 10b-5-1 of the Securities Exchange Act.

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Employees, officers and directors of the Company are permitted to buy or sell the Company's securities under a "Qualified Plan" that complies with federal and state securities laws, and the specific requirements of this policy. A "Qualified Plan" must meet each of the following seven requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Binding contract. The proposed plan must be a binding written agreement between the participant and a national brokerage firm or other financial professional reasonably acceptable to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Prior review process: all participants. Before any securities transaction under a Qualified Plan, the participant must submit the proposed plan to the Company's Compliance Officer for review and receive written acknowledgement from the Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Prior review process: officers and directors. If the participant is an officer or director of the Company, the Compliance Officer will, prior to delivering a written acknowledgement to the participant or financial institution, obtain the advice and consent of at least one member of the Audit Committee of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Rule 10b5-1 compliance. The plan must clearly state that both the participant and the financial institution intend that all transactions will comply with Rule 10b5-1 under the Securities and Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Adoption of plan during a Trading Window. The proposed plan must be adopted during a Trading Window, as defined in section 7.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Confirmation of transactions. The financial institution must agree to provide both fax and e-mail confirmation to the Company, to the attention of the Compliance Officer and such other individuals as the Compliance Officer may direct, (1) on the same day of each transaction made under the plan, (2) promptly upon any termination of the plan and (3) in advance of any proposed modification, amendment or suspension of the plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Termination by Company. The plan must provide that the Company can terminate the plan, in its sole discretion, by notice to the financial institution and the participant.

**12. Additional Information for Directors and Offices**

**12.1 Section 16 reporting obligations and short-swing trading limitations.**

Directors, officers and 10% stockholders of the Company must comply with the reporting obligations and short-swing trading limitations set forth in Section 16 of the Securities Exchange Act of 1934, as amended. The practical effects of these provisions are that officers and directors must (a) comply with the Pre-clearance Procedure for all transactions; (b) confirm all Transactions to the Company immediately (that is, on the same day the trade is executed); (c) have on file with the Company a power of attorney for filing of required reports; (d) comply with the Company's procedures to promptly report all transactions to the Securities and Exchange Commission.

**12.2 "Short swing" trading prohibitions**

Directors, officers and 10% stockholders of the Company are not permitted to make any "short swing" purchase and sale of the Company's securities within a six-month period, whether or not they have knowledge of Inside Information. A violation of this provision, however inadvertent, will result in the requirement to disgorge all profits to the Company.

**12.3 Stock option sales and purchases under Section 16.**

Under the regulations promulgated pursuant to Section 16 of the Securities Exchange Act (and provided certain other criteria are met, neither the receipt of an option under the Company's option plans nor the exercise of that option is deemed a "purchase" under Section 16; however, the sale of any such shares is a sale under Section 16.

**12.4 Resources for information and compliance assistance.**

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The Company has provided separate memoranda and other appropriate materials to its officers and directors regarding compliance with Section 16 and its related rules. Because of the complexity of these regulatory requirements and the importance of systematic compliance, officers and directors subject to Section 16 reporting requirements are encouraged to consult with the Compliance Officer or the Company's legal counsel in advance of any Transaction in the Company's securities.

**12.5 Requirements applicable to proposed Rule 10b5-1 plans.**

In connection with the process for review of proposed plans under Rule 10b5-1, described in section 11, the Company may impose from time to time additional requirements applicable to plans proposed to be established by individuals subject to Section 16 of the Securities Exchange Act.

**13. Inquiries and Assistance**

For further information, assistance or advice as to any of the matters discussed in this Policy, please direct your questions to the Company's Compliance Officer.

**Appendix 1**

**Glossary of Defined Terms**

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| | |
|:---|:---|
| &nbsp;&nbsp;Designated Insider | &nbsp;&nbsp;means one of a group of employees and consultants whom the Company believes have regular access to Inside Information in the course of their duties, or an individual required to file statements under Section 16 of the Securities Exchange Act. |
| &nbsp;&nbsp;Inside Information | &nbsp;&nbsp;means material nonpublic information. Information should be regarded as material if there is a reasonable likelihood that it would be considered important to an investor in making an investment decision, or if its disclosure would significantly alter the total mix of information available about the Company. Either positive or negative information may be material. Information is nonpublic if it has not been previously disclosed by the Company and is otherwise not available to the general public.<br>Thus, Inside Information has the characteristics of (a) not being available to the general public and (b) of a nature that would be expected to affect the investment or voting decision of a reasonable shareholder or investor. Some examples of inside information are provided in Appendix 3. |
| &nbsp;&nbsp;Insider | &nbsp;&nbsp;means an employee, officer or member of the board of directors of the Company. It may also include, in the discretion of the Compliance Officer, a consultant or contractor who receives or has access to Inside Information. |
| &nbsp;&nbsp;Policy | &nbsp;&nbsp;means the Company's Policy on Transactions in Company Securities and the associated procedures governing "Insider Trading," to which this Glossary is Appendix 1. |
| &nbsp;&nbsp;Pre-clearance Procedure | &nbsp;&nbsp;means the procedure by which a Designated Insiders who wishes to trade the Company's securities is required to request prior written approval from the Compliance Officer, as described in section 7.3 of the Policy. |

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| | |
|:---|:---|
| &nbsp;&nbsp;Qualified Plan | &nbsp;&nbsp;means a plan for Transactions that meets both the requirements of Rule 10b5-1 under the Securities Act of 1933, and the additional requirements set forth in section 11.3 of this Policy. |
| &nbsp;&nbsp;Related Person | &nbsp;&nbsp;means a member of an Insider's immediate family (child, stepchild or grandchild; parent, stepparent or grandparent; spouse or sibling; son-, daughter-, mother-, father- or sister-in-law; and adoptive relationships); other members of an Insider's household; and anyone who receives Inside Information from an Insider. |
| &nbsp;&nbsp;Tippee | &nbsp;&nbsp;means a person unaffiliated with the Company who receives Inside Information, such as in the form of a "tip" from an Insider. |
| &nbsp;&nbsp;Trading Day | &nbsp;&nbsp;means a day on which national stock exchanges are open for trading. |
| &nbsp;&nbsp;Trading Window | &nbsp;&nbsp;means the period during which Designated Insiders may conduct Transactions in the Company's securities, provided that they do not possess Inside Information, as described in section 7.2. |
| &nbsp;&nbsp;Transaction | &nbsp;&nbsp;means any purchase or sale in a public market of a security of the Company, whether made directly (such as, by an order to sell placed by an Insider) or indirectly (such as, a sale made by a financial institution of Company securities subject to margin requirements or pledged as collateral by Attributed Person). |

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**Appendix 2**

**Designated Insiders**

**Appendix 3**

**Examples of Material Information**

It is not possible to specify all categories of material information. However, there are various categories of information that are particularly sensitive and, as a general rule, should always be considered material. When material information also is not known to the public, it is "Inside Information."

Examples of such information may include:

Financial results, especially quarterly and year-end earnings and significant changes in financial performance or liquidity

Projections of future earnings or losses

Significant litigation exposure due to actual or threatened litigation or the resolution of litigation

News of a pending or proposed acquisition or merger

Potential corporate partnerships, research contracts, acquisitions or strategic alliances

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News of the disposition of assets

Impending bankruptcy or financial liquidity problems

Gain or loss of major contracts, licenses, orders, suppliers, customers or finance sources

Stock splits

New equity or debt offerings

Major changes in senior management

Changes in dividend policy or amounts

Significant pricing changes

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## Exhibit 21.1

**Exhibit 21.1**

SUBSIDIARIES OF THE COMPANY

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| | |
|:---|:---|
|  | **State or Other Jurisdiction** |
|  | **of Incorporation or** |
| **Subsidiary** | **Incorporation or Organization** |
| Exponent Consulting (Canada) Inc. | Canada |
| Exponent Consulting PTE. Ltd. | Singapore |
| &nbsp;&nbsp;&nbsp;Exponent International Engineering and Scientific Consulting Limited | Ireland |
| Exponent International GmbH | Germany |
| Exponent International Ltd. | United Kingdom |
| Exponent Limited | Hong Kong |
| Exponent Realty LLC | Delaware |
| &nbsp;&nbsp;&nbsp;Exponent Science and Technology Consulting (Shanghai) Co., Ltd. | China |

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## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statements (No. 333-151238, 333-184058,333-223768 and 333-285432) on Form S-8 of our report dated February 27, 2026, with respect to theconsolidated financial statements and financial statement schedule II of Exponent, Inc. and the effectiveness ofinternal control over financial reporting.

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| |
|:---|
| /s/ KPMG LLP |
| San Francisco, California |
| February 27, 2026 |

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Catherine Ford Corrigan, certify that:

1. I have reviewed this Annual Report on Form 10-K of Exponent, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: February 27, 2026 | By: | /s/ Catherine Ford Corrigan |
|  |  | Catherine Ford Corrigan, Ph.D. |
|  |  | Chief Executive Officer |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Richard L. Schlenker, Jr. certify that:

1. I have reviewed this annual report on Form 10-K of Exponent, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: February 27, 2026 | By: | /s/ Richard L. Schlenker, Jr. |
|  |  | Richard L. Schlenker, Jr.  |
|  |  | Chief Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Exponent, Inc. (the "Company") on Form 10-K for the period ending January 2, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I Catherine Ford Corrigan, Ph.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: February 27, 2026 | By: | /s/ Catherine Ford Corrigan |
|  |  | Catherine Ford Corrigan, Ph.D. |
|  |  | Chief Executive Officer |

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Exponent, Inc. (the "Company") on Form 10-K for the period ending January 2, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I Richard L. Schlenker, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: February 27, 2026 | By: | /s/ Richard L. Schlenker, Jr. |
|  |  | Richard L. Schlenker, Jr. |
|  |  | Chief Financial Officer |

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