EXPONENT INC, 10-Q filed on 5/8/2026
Quarterly Report
v3.26.1
Document and Entity Information - shares
 3 Months Ended
Apr. 03, 2026
May 01, 2026
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Apr. 03, 2026  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Entity Registrant Name EXPONENT, INC.  
Entity Central Index Key 0000851520  
Current Fiscal Year End Date --01-01  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Trading Symbol EXPO  
Entity Common Stock, Shares Outstanding   48,511,629
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Shell Company false  
Entity File Number 0-18655  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 77-0218904  
Entity Address, Address Line One 149 COMMONWEALTH DRIVE  
Entity Address, City or Town MENLO PARK  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94025  
City Area Code 650  
Local Phone Number 326-9400  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Title of each class Common Stock, par value $0.001 per share  
Name of each exchange on which registered NASDAQ  
v3.26.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Apr. 03, 2026
Jan. 02, 2026
Current assets:    
Cash and cash equivalents $ 118,553 $ 221,930
Accounts receivable, net of allowance for contract losses and doubtful accounts of $6,830 and $7,478 at April 3, 2026 and January 2, 2026, respectively 197,336 181,507
Prepaid expenses and other current assets 24,999 24,143
Total current assets 340,888 427,580
Property, equipment and leasehold improvements, net of accumulated depreciation and amortization of $124,443 and $122,072 at April 3, 2026 and January 2, 2026,respectively 71,875 71,981
Operating lease right-of-use assets 70,451 73,376
Goodwill 8,607 8,607
Deferred income taxes 63,911 67,075
Deferred compensation plan assets 126,511 123,454
Other assets 5,138 5,446
Total assets 687,381 777,519
Current liabilities:    
Accounts payable and accrued liabilities 37,354 30,942
Accrued payroll and employee benefits 82,561 121,302
Deferred revenues 15,568 18,868
Operating lease liabilities 6,715 6,890
Total current liabilities 142,198 178,002
Other liabilities 4,311 4,587
Deferred compensation plan liabilities 128,212 128,645
Operating lease liabilities 74,323 75,944
Total liabilities 349,044 387,178
Stockholders’ equity:    
Common stock, $0.001 par value; 120,000 shares authorized; 65,707 share issued at April 3, 2026 and January 2, 2026, respectively 66 66
Additional paid-in capital 386,329 369,747
Accumulated other comprehensive loss    
Foreign currency translation adjustments (2,571) (2,290)
Retained earnings 682,013 668,423
Treasury stock, at cost; 17,092 and 16,087 shares held at April 3, 2026 and January 2, 2026, respectively (727,500) (645,605)
Total stockholders’ equity 338,337 390,341
Total liabilities and stockholders’ equity $ 687,381 $ 777,519
v3.26.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Apr. 03, 2026
Jan. 02, 2026
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance for contract losses and doubtful accounts $ 6,830 $ 7,478
Property, equipment and leasehold improvements, net of accumulated depreciation and amortization $ 124,443 $ 122,072
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 120,000,000 120,000,000
Common stock, shares issued 65,707,000 65,707,000
Treasury stock, shares 17,092,000 16,087,000
v3.26.1
Condensed Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Revenues:    
Revenues before reimbursements $ 151,817 $ 137,437
Reimbursements 14,486 8,070
Revenues 166,303 145,507
Operating expenses:    
Compensation and related expenses 91,409 75,903
Other operating expenses 12,825 12,095
Reimbursable expenses 14,486 8,070
General and administrative expenses 6,204 5,007
Total operating expenses 124,924 101,075
Operating income 41,379 44,432
Other income, net:    
Interest income, net 1,718 2,714
Miscellaneous loss, net (758) (9,386)
Total other income (loss), net 960 (6,672)
Income before income taxes 42,339 37,760
Income taxes 12,770 11,110
Net income $ 29,569 $ 26,650
Net income per share:    
Basic (in dollars per share) $ 0.59 $ 0.52
Diluted (in dollars per share) $ 0.59 $ 0.52
Shares used in per share computations:    
Basic (in shares) 49,790 51,283
Diluted (in shares) 50,119 51,650
Cash dividends declared per common share (in dollars per share) $ 0.31 $ 0.3
v3.26.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Statement of Comprehensive Income [Abstract]    
Net income $ 29,569 $ 26,650
Other comprehensive income (loss):    
Foreign currency translation adjustments, net of tax (281) 946
Comprehensive income $ 29,288 $ 27,596
v3.26.1
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income Loss [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Balance at Jan. 03, 2025 $ 421,068 $ 66 $ 345,689 $ (3,791) $ 624,151 $ (545,047)
Balances (in shares) at Jan. 03, 2025   65,707        
Balances (in shares) at Jan. 03, 2025           14,893
Employee stock purchase plan 384   326     $ 58
Employee stock purchase plan (in shares)           (5)
Amortization of unrecognized stock-based compensation 5,028   5,028      
Purchase of treasury shares (5,000)         $ (5,000)
Purchase of treasury shares (in shares)           65
Foreign currency translation adjustments 946     946    
Grant of restricted stock units to settle accrued bonus 12,179   12,179      
Settlement of restricted stock units (4,166)   (1,499)     $ (2,667)
Settlement of restricted stock units (in shares)           (95)
Exercise of stock options 100   53     $ 47
Exercise of stock options (in shares)           (5)
Dividends and dividend equivalent rights (15,781)       (15,781)  
Net Income (Loss) 26,650       26,650  
Balance at Apr. 04, 2025 441,408 $ 66 361,776 (2,845) 635,020 $ (552,609)
Balances (in shares) at Apr. 04, 2025   65,707        
Balances (in shares) at Apr. 04, 2025           14,853
Balance at Jan. 02, 2026 $ 390,341 $ 66 369,747 (2,290) 668,423 $ (645,605)
Balances (in shares) at Jan. 02, 2026   65,707        
Balances (in shares) at Jan. 02, 2026 16,087         16,087
Employee stock purchase plan $ 307   249     $ 58
Employee stock purchase plan (in shares)           (5)
Amortization of unrecognized stock-based compensation 5,087   5,087      
Purchase of treasury shares (79,445)         $ (79,445)
Purchase of treasury shares (in shares)           1,157
Foreign currency translation adjustments (281)     (281)    
Grant of restricted stock units to settle accrued bonus 13,381   13,381      
Settlement of restricted stock units (5,113)   (2,391)     $ (2,722)
Settlement of restricted stock units (in shares)           (129)
Exercise of stock options 470   256     $ 214
Exercise of stock options (in shares)           (18)
Dividends and dividend equivalent rights (15,979)       (15,979)  
Net Income (Loss) 29,569       29,569  
Balance at Apr. 03, 2026 $ 338,337 $ 66 $ 386,329 $ (2,571) $ 682,013 $ (727,500)
Balances (in shares) at Apr. 03, 2026   65,707        
Balances (in shares) at Apr. 03, 2026 17,092         17,092
v3.26.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Cash flows from operating activities:    
Net income $ 29,569 $ 26,650
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization of property, equipment and leasehold improvements 2,515 2,492
Provision for contract losses and doubtful accounts 268 256
Stock-based compensation 9,058 8,179
Deferred income tax provision 3,164 (3,226)
Changes in operating assets and liabilities:    
Accounts receivable (16,097) (5,637)
Prepaid expenses and other current assets (4,755) (3,331)
Change in operating leases 1,129 454
Accounts payable and accrued liabilities 6,100 11,595
Accrued payroll and employee benefits (28,626) (27,571)
Deferred revenues (3,300) (2,587)
Net cash (used in) provided by operating activities (975) 7,274
Cash flows from investing activities:    
Capital expenditures (2,453) (1,754)
Net cash used in investing activities (2,453) (1,754)
Cash flows from financing activities:    
Payroll taxes for restricted stock units (5,113) (4,166)
Repurchase of common stock (78,761)  
Exercise of stock-based payment awards 777 484
Dividends and dividend equivalents rights (16,583) (16,367)
Net cash used in financing activities (99,680) (20,049)
Effect of foreign currency exchange rates on cash and cash equivalents (269) 741
Net decrease in cash and cash equivalents (103,377) (13,788)
Cash and cash equivalents at beginning of period 221,930 258,901
Cash and cash equivalents at end of period $ 118,553 $ 245,113
v3.26.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Pay vs Performance Disclosure    
Net Income (Loss) $ 29,569 $ 26,650
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Apr. 03, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.26.1
Basis of Presentation
 3 Months Ended
Apr. 03, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Note 1: Basis of Presentation

Exponent, Inc. (referred to as the “Company” or “Exponent”) is an engineering and scientific consulting firm that provides solutions to complex problems. The Company operates on a 52-53 week fiscal year ending on the Friday closest to the last day of December.

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. Accordingly, they do not contain all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments which are necessary for the fair presentation of the condensed consolidated financial statements have been included and all such adjustments are of a normal and recurring nature. The operating results for the three months ended April 3, 2026 are not necessarily representative of the results of future quarterly or annual periods. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2026, which was filed with the U.S. Securities and Exchange Commission on February 27, 2026.

The unaudited condensed consolidated financial statements include the accounts of Exponent and its subsidiaries, which are all wholly owned. All intercompany accounts and transactions have been eliminated in consolidation.

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. Items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts. Actual results could differ from those estimates.

Recent Accounting Pronouncement 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 evaluating the effect that this standard may have on its consolidated financial statements and related disclosures.
v3.26.1
Revenue Recognition
 3 Months Ended
Apr. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

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) then 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:

 

 

Three Months Ended

 

 

 

April 3,
2026

 

 

April 4,
2025

 

Engineering & Other Scientific

 

 

62

%

 

 

66

%

Environmental and Health

 

 

15

%

 

 

16

%

Total time and materials revenues

 

 

77

%

 

 

82

%

 

 

 

 

 

 

 

 

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:

 

 

Three Months Ended

 

 

 

April 3,
2026

 

 

April 4,
2025

 

Engineering & Other Scientific

 

 

22

%

 

 

17

%

Environmental and Health

 

 

1

%

 

 

1

%

Total fixed price revenues

 

 

23

%

 

 

18

%

 

 

 

 

 

 

 

 

Deferred revenues represent amounts billed to clients in advance of services provided. During the first quarter of 2026, $7,420,000 of revenues were recognized that were included in the deferred revenue balance at January 2, 2026. During the first quarter of 2025, $5,877,000 of revenues were recognized that were included in the deferred revenue balance at January 3, 2025.

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 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 $6,775,000 and $3,504,000 during the first quarter of 2026 and 2025, respectively.

v3.26.1
Fair Value Measurements
 3 Months Ended
Apr. 03, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 3: Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including money market securities, trading fixed income and equity securities held in its deferred compensation plan and the liability associated with its deferred compensation plan. There were no transfers between fair value measurement levels during the three months ended April 3, 2026 and April 4, 2025. 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 financial assets and liabilities was determined using the following inputs at April 3, 2026:

 

 

 

Fair Value Measurements at Reporting Date Using

 

(In thousands)

 

Total

 

 

Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities (1)

 

$

10,675

 

 

$

10,675

 

 

$

-

 

 

$

-

 

Fixed income trading securities held in deferred
   compensation plan (2)

 

 

50,738

 

 

 

50,738

 

 

 

-

 

 

 

-

 

Equity trading securities held in deferred
   compensation plan (2)

 

 

93,470

 

 

$

93,470

 

 

 

-

 

 

 

-

 

Total

 

$

154,883

 

 

$

154,883

 

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan (3)

 

 

146,484

 

 

 

146,484

 

 

 

-

 

 

 

-

 

Total

 

$

146,484

 

 

$

146,484

 

 

$

-

 

 

$

-

 

(1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

The fair value of these certain financial assets and liabilities was determined using the following inputs at January 2, 2026:

 

 

Fair Value Measurements at Reporting Date Using

 

(In thousands)

 

Total

 

 

Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities (1)

 

$

60,170

 

 

$

60,170

 

 

$

-

 

 

$

-

 

Fixed income trading securities held in deferred
   compensation plan (2)

 

 

45,332

 

 

 

45,332

 

 

 

-

 

 

 

-

 

Equity trading securities held in deferred
   compensation plan (2)

 

 

94,183

 

 

 

94,183

 

 

 

-

 

 

 

-

 

Total

 

$

199,685

 

 

$

199,685

 

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan (3)

 

 

144,706

 

 

 

144,706

 

 

 

-

 

 

 

-

 

Total

 

$

144,706

 

 

$

144,706

 

 

$

-

 

 

$

-

 

 

(1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

Money market securities as of April 3, 2026 and January 2, 2026 represent obligations of the United States Treasury. Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan. See Note 6 for additional information about the Company’s deferred compensation plan.

Cash and cash equivalents consisted of the following as of April 3, 2026:

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Classified as current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

107,878

 

 

$

-

 

 

$

-

 

 

$

107,878

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities

 

 

10,675

 

 

 

-

 

 

 

-

 

 

 

10,675

 

Total cash equivalents

 

 

10,675

 

 

 

-

 

 

 

-

 

 

 

10,675

 

Total cash and cash equivalents

 

$

118,553

 

 

$

-

 

 

$

-

 

 

$

118,553

 

 

 

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

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Classified as current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

161,760

 

 

$

-

 

 

$

-

 

 

$

161,760

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities

 

 

60,170

 

 

 

-

 

 

 

-

 

 

 

60,170

 

Total cash equivalents

 

 

60,170

 

 

 

-

 

 

 

-

 

 

 

60,170

 

Total cash and cash equivalents

 

$

221,930

 

 

$

-

 

 

$

-

 

 

$

221,930

 

 

 

At April 3, 2026 and January 2, 2026, the Company did not have any assets or liabilities valued using significant unobservable inputs.

The following financial instruments are not measured at fair value on the Company's unaudited condensed consolidated balance sheet at April 3, 2026 and 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 April 3, 2026 and January 2, 2026 approximates their carrying value as reported on the Company’s unaudited condensed consolidated balance sheets.
v3.26.1
Net Income Per Share
 3 Months Ended
Apr. 03, 2026
Earnings Per Share [Abstract]  
Net Income Per Share

Note 4: Net Income Per Share

Basic per share amounts are computed using the weighted-average number of shares of common stock outstanding during the period. Diluted per share amounts are calculated using the weighted-average number of shares of common stock outstanding during the period and, when dilutive, the weighted-average number of potential shares of common stock from the issuance of common stock to satisfy outstanding restricted stock units and the exercise of outstanding options to purchase common stock using the treasury stock method.

The following schedule reconciles the shares used to calculate basic and diluted net income per share:

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Shares used in basic per share computation

 

 

49,790

 

 

 

51,283

 

Effect of dilutive common stock options
   outstanding

 

 

47

 

 

 

103

 

Effect of dilutive restricted stock units
   outstanding

 

 

282

 

 

 

264

 

Shares used in diluted per share
   computation

 

 

50,119

 

 

 

51,650

 

 

Common stock options to purchase 215,833 shares were excluded from the diluted per share calculation for the three months ended April 3, 2026 due to their anti-dilutive effect. Common stock options to purchase 100,833 shares were excluded from the diluted per share calculation for the three months ended April 4, 2025 due to their anti-dilutive effect.

v3.26.1
Stock-Based Compensation
 3 Months Ended
Apr. 03, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 5: Stock-Based Compensation

Restricted Stock Units

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 receives a fully vested restricted stock unit award is also granted a matching number of unvested restricted stock unit awards. Unvested restricted stock unit awards are also granted for select new hires and promotions. These unvested restricted stock unit awards generally 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 59½ years or older, all unvested restricted stock unit awards will continue to vest, provided that the holder of each award 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 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. The Company recorded stock-based compensation expense associated with accrued bonus awards of $3,971,000 and $3,151,000 during the three months ended April 3, 2026 and April 4, 2025, respectively. The value of the unvested restricted stock unit awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded

stock-based compensation expense associated with the unvested restricted stock unit awards of $4,414,000 and $4,240,000 during the three months ended April 3, 2026 and April 4, 2025, respectively.

Stock Options

Stock options are granted for terms of ten years and generally vest 25% per year over a four-year period from the grant date. Unvested stock option awards will continue to vest in the case of retirement at 59½ years or older, provided that the holder of each award 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 value of the unvested stock option awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded stock-based compensation expense associated with stock option grants of $673,000 and $788,000 during the three months ended April 3, 2026 and April 4, 2025, respectively.

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 option 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, forfeiture, and post-vesting 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 of the options. The dividend yield assumption considers the expectation of continued declaration of dividends, offset by option holders’ dividend equivalent rights.

The Company accounts for forfeitures of stock-based awards when they occur. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards.
v3.26.1
Deferred Compensation Plans
 3 Months Ended
Apr. 03, 2026
Deferred Compensation Arrangements [Abstract]  
Deferred Compensation Plans

Note 6: 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 April 3, 2026 and January 2, 2026, the invested amounts under the plans totaled $144,208,000 and $139,515,000, respectively, and are recorded in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to miscellaneous loss, net.

As of April 3, 2026 and January 2, 2026, vested amounts due under the plans totaled $146,484,000 and $144,706,000, respectively, and are recorded within accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheets. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended April 3, 2026, the Company recognized a reduction to compensation expense of $1,138,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a loss in miscellaneous loss, net. During the three months ended April 4, 2025, the Company recognized a reduction to compensation expense of $9,336,000 as a result of changes in the market value of the trust assets with the same amount being recorded as a loss in miscellaneous loss, net.

v3.26.1
Supplemental Cash Flow Information
 3 Months Ended
Apr. 03, 2026
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information

Note 7: Supplemental Cash Flow Information

The following is supplemental disclosure of cash flow information:

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Cash paid during period:

 

 

 

 

 

 

Income taxes

 

$

1,204

 

 

$

1,461

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Vested stock unit awards issued to settle accrued bonuses

 

$

13,381

 

 

$

12,179

 

Right-of-use asset obtained in exchange for operating
   lease obligations

 

$

33

 

 

$

-

 

Accrual for capital expenditures

 

$

198

 

 

$

73

 

Repurchases of common stock

 

$

-

 

 

$

5,000

 
v3.26.1
Accounts Receivable, Net
 3 Months Ended
Apr. 03, 2026
Receivables [Abstract]  
Accounts Receivable, Net

Note 8: Accounts Receivable, Net

At April 3, 2026 and January 2, 2026, accounts receivable, net, was comprised of the following:

 

 

April 3,

 

 

January 2,

 

(In thousands)

 

2026

 

 

2026

 

Billed accounts receivable

 

$

131,134

 

 

$

134,700

 

Unbilled accounts receivable

 

 

73,032

 

 

 

54,285

 

Allowance for contract losses and doubtful accounts

 

 

(6,830

)

 

 

(7,478

)

Total accounts receivable, net

 

$

197,336

 

 

$

181,507

 

 

 

The Company maintains allowances for estimated losses over the remaining contractual life of its receivables 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 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 economic conditions, aging of amounts due and future expectations.

 

A reconciliation of the beginning and ending amount of the allowance for contract losses and doubtful accounts is as follows:

(In thousands)

 

 

 

Balance at January 2, 2026

 

$

7,478

 

Provision for contract losses and doubtful accounts

 

 

268

 

Write-offs

 

 

(916

)

Balance at April 3, 2026

 

$

6,830

 
v3.26.1
Segment Reporting
 3 Months Ended
Apr. 03, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 9: 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 areas 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. Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments, but does not review total assets in evaluating segment performance and capital allocation.

Segment information for the three months ended April 3, 2026 and April 4, 2025 follows:

Revenues

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

141,412

 

 

$

122,135

 

Environmental and Health

 

 

24,891

 

 

 

23,372

 

Total revenues

 

$

166,303

 

 

$

145,507

 

 

Compensation and related expenses

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

64,058

 

 

$

57,248

 

Environmental and Health

 

 

12,897

 

 

 

12,448

 

Total segment compensation and related expenses

 

 

76,955

 

 

 

69,696

 

Corporate compensation and related expenses

 

 

14,454

 

 

 

6,207

 

Total compensation and related expenses

 

$

91,409

 

 

$

75,903

 

 

Operating Income

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

50,415

 

 

$

45,113

 

Environmental and Health

 

 

8,385

 

 

 

8,698

 

Total segment operating income

 

 

58,800

 

 

 

53,811

 

Corporate operating expense

 

 

(17,421

)

 

 

(9,379

)

Total operating income

 

$

41,379

 

 

$

44,432

 

 

 

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, finance, information technology, and business

development groups; the deferred compensation expense/benefit due to the change in value of assets associated with its deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in its allowance for contract losses and doubtful accounts.

Capital Expenditures

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

632

 

 

$

475

 

Environmental and Health

 

 

39

 

 

 

62

 

Total segment capital expenditures

 

 

671

 

 

 

537

 

Corporate capital expenditures

 

 

1,738

 

 

 

715

 

Total capital expenditures

 

$

2,409

 

 

$

1,252

 

 

 

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

1,849

 

 

$

1,826

 

Environmental and Health

 

 

45

 

 

 

47

 

Total segment depreciation and amortization

 

 

1,894

 

 

 

1,873

 

Corporate depreciation and amortization

 

 

621

 

 

 

619

 

Total depreciation and amortization

 

$

2,515

 

 

$

2,492

 

 

No single client comprised more than 10% of the Company’s revenues during the three months ended April 3, 2026 and April 4, 2025.

v3.26.1
Leases
 3 Months Ended
Apr. 03, 2026
Leases [Abstract]  
Leases

Note 10: 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 condensed consolidated balance sheet. The Company does not have any finance leases as of April 3, 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 may 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 condensed 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 ten 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 and 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 Company leases excess space in its Silicon Valley and Natick facilities. Rental income of $333,000 and $191,000 was included in other income for the three months ended April 3, 2026 and April 4, 2025, respectively.

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Operating lease cost

 

$

3,196

 

 

$

3,212

 

Variable lease cost

 

 

630

 

 

 

303

 

Short-term lease cost

 

 

266

 

 

 

356

 

 

 

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Cash paid for amounts included in the measurement of operating
   lease liabilities

 

$

3,109

 

 

$

2,602

 

 

 

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

 

April 3,
2026

 

 

April 4, 2025

 

Weighted Average Remaining Lease Term

13.0 years

 

 

13.6 years

 

Weighted Average Discount Rate

6.3%

 

 

6.3%

 

 

 

Maturities of operating lease liabilities as of April 3, 2026:

(In thousands)

 

Operating Leases

 

2026 (excluding the three months ended April 3, 2026)

 

$

6,180

 

2027

 

 

8,194

 

2028

 

 

10,914

 

2029

 

 

9,600

 

2030

 

 

9,092

 

Thereafter

 

 

80,286

 

Total lease payments

 

$

124,266

 

Less imputed interest

 

 

43,228

 

Total lease liability

 

$

81,038

 
v3.26.1
Contingencies
 3 Months Ended
Apr. 03, 2026
Commitments and Contingencies Disclosure [Abstract]  
Contingencies

Note 11: 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.

v3.26.1
Subsequent Events
 3 Months Ended
Apr. 03, 2026
Subsequent Events [Abstract]  
Subsequent Events

Note 12: Subsequent Events

On April 30, 2026, the Company announced that its Board of Directors approved a cash dividend of $0.31 per share of the Company’s common stock, payable June 18, 2026, to stockholders of record as of June 5, 2026. On April 30, 2026, the Company announced that its Board of Directors authorized $50 million for the repurchase of the Company's common stock which is in addition to the amounts remaining under prior repurchase authorizations. These repurchase authorizations have no expiration date.

v3.26.1
Basis of Presentation (Policies)
 3 Months Ended
Apr. 03, 2026
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation

Exponent, Inc. (referred to as the “Company” or “Exponent”) is an engineering and scientific consulting firm that provides solutions to complex problems. The Company operates on a 52-53 week fiscal year ending on the Friday closest to the last day of December.

The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. Accordingly, they do not contain all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments which are necessary for the fair presentation of the condensed consolidated financial statements have been included and all such adjustments are of a normal and recurring nature. The operating results for the three months ended April 3, 2026 are not necessarily representative of the results of future quarterly or annual periods. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2026, which was filed with the U.S. Securities and Exchange Commission on February 27, 2026.

The unaudited condensed consolidated financial statements include the accounts of Exponent and its subsidiaries, which are all wholly owned. All intercompany accounts and transactions have been eliminated in consolidation.

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. Items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts. Actual results could differ from those estimates.
Recent Accounting Pronouncement Not Yet Adopted

Recent Accounting Pronouncement 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 evaluating the effect that this standard may have on its consolidated financial statements and related disclosures.
v3.26.1
Revenue Recognition (Tables)
 3 Months Ended
Apr. 03, 2026
Revenue from Contract with Customer [Abstract]  
Summary of Percent of Revenues

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

 

 

Three Months Ended

 

 

 

April 3,
2026

 

 

April 4,
2025

 

Engineering & Other Scientific

 

 

62

%

 

 

66

%

Environmental and Health

 

 

15

%

 

 

16

%

Total time and materials revenues

 

 

77

%

 

 

82

%

 

 

 

 

 

 

 

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

 

 

Three Months Ended

 

 

 

April 3,
2026

 

 

April 4,
2025

 

Engineering & Other Scientific

 

 

22

%

 

 

17

%

Environmental and Health

 

 

1

%

 

 

1

%

Total fixed price revenues

 

 

23

%

 

 

18

%

 

 

 

 

 

 

 
v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Apr. 03, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis The fair value of these financial assets and liabilities was determined using the following inputs at April 3, 2026:

 

 

 

Fair Value Measurements at Reporting Date Using

 

(In thousands)

 

Total

 

 

Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities (1)

 

$

10,675

 

 

$

10,675

 

 

$

-

 

 

$

-

 

Fixed income trading securities held in deferred
   compensation plan (2)

 

 

50,738

 

 

 

50,738

 

 

 

-

 

 

 

-

 

Equity trading securities held in deferred
   compensation plan (2)

 

 

93,470

 

 

$

93,470

 

 

 

-

 

 

 

-

 

Total

 

$

154,883

 

 

$

154,883

 

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan (3)

 

 

146,484

 

 

 

146,484

 

 

 

-

 

 

 

-

 

Total

 

$

146,484

 

 

$

146,484

 

 

$

-

 

 

$

-

 

(1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

The fair value of these certain financial assets and liabilities was determined using the following inputs at January 2, 2026:

 

 

Fair Value Measurements at Reporting Date Using

 

(In thousands)

 

Total

 

 

Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities (1)

 

$

60,170

 

 

$

60,170

 

 

$

-

 

 

$

-

 

Fixed income trading securities held in deferred
   compensation plan (2)

 

 

45,332

 

 

 

45,332

 

 

 

-

 

 

 

-

 

Equity trading securities held in deferred
   compensation plan (2)

 

 

94,183

 

 

 

94,183

 

 

 

-

 

 

 

-

 

Total

 

$

199,685

 

 

$

199,685

 

 

$

-

 

 

$

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation plan (3)

 

 

144,706

 

 

 

144,706

 

 

 

-

 

 

 

-

 

Total

 

$

144,706

 

 

$

144,706

 

 

$

-

 

 

$

-

 

 

(1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

(2) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

(3) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following as of April 3, 2026:

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Classified as current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

107,878

 

 

$

-

 

 

$

-

 

 

$

107,878

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities

 

 

10,675

 

 

 

-

 

 

 

-

 

 

 

10,675

 

Total cash equivalents

 

 

10,675

 

 

 

-

 

 

 

-

 

 

 

10,675

 

Total cash and cash equivalents

 

$

118,553

 

 

$

-

 

 

$

-

 

 

$

118,553

 

 

 

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

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

Classified as current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

161,760

 

 

$

-

 

 

$

-

 

 

$

161,760

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market securities

 

 

60,170

 

 

 

-

 

 

 

-

 

 

 

60,170

 

Total cash equivalents

 

 

60,170

 

 

 

-

 

 

 

-

 

 

 

60,170

 

Total cash and cash equivalents

 

$

221,930

 

 

$

-

 

 

$

-

 

 

$

221,930

 
v3.26.1
Net Income Per Share (Tables)
 3 Months Ended
Apr. 03, 2026
Earnings Per Share [Abstract]  
Reconciles Shares to Calculate Basic and Diluted Net Income Per Share

The following schedule reconciles the shares used to calculate basic and diluted net income per share:

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Shares used in basic per share computation

 

 

49,790

 

 

 

51,283

 

Effect of dilutive common stock options
   outstanding

 

 

47

 

 

 

103

 

Effect of dilutive restricted stock units
   outstanding

 

 

282

 

 

 

264

 

Shares used in diluted per share
   computation

 

 

50,119

 

 

 

51,650

 
v3.26.1
Supplemental Cash Flow Information (Tables)
 3 Months Ended
Apr. 03, 2026
Supplemental Cash Flow Information [Abstract]  
Supplemental Disclosure of Cash Flow Information

The following is supplemental disclosure of cash flow information:

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Cash paid during period:

 

 

 

 

 

 

Income taxes

 

$

1,204

 

 

$

1,461

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Vested stock unit awards issued to settle accrued bonuses

 

$

13,381

 

 

$

12,179

 

Right-of-use asset obtained in exchange for operating
   lease obligations

 

$

33

 

 

$

-

 

Accrual for capital expenditures

 

$

198

 

 

$

73

 

Repurchases of common stock

 

$

-

 

 

$

5,000

 
v3.26.1
Accounts Receivable, Net (Tables)
 3 Months Ended
Apr. 03, 2026
Receivables [Abstract]  
Accounts Receivable, Net

At April 3, 2026 and January 2, 2026, accounts receivable, net, was comprised of the following:

 

 

April 3,

 

 

January 2,

 

(In thousands)

 

2026

 

 

2026

 

Billed accounts receivable

 

$

131,134

 

 

$

134,700

 

Unbilled accounts receivable

 

 

73,032

 

 

 

54,285

 

Allowance for contract losses and doubtful accounts

 

 

(6,830

)

 

 

(7,478

)

Total accounts receivable, net

 

$

197,336

 

 

$

181,507

 
Reconciliation of Beginning and Ending Amount of Allowance for Contract Losses and Doubtful Accounts

A reconciliation of the beginning and ending amount of the allowance for contract losses and doubtful accounts is as follows:

(In thousands)

 

 

 

Balance at January 2, 2026

 

$

7,478

 

Provision for contract losses and doubtful accounts

 

 

268

 

Write-offs

 

 

(916

)

Balance at April 3, 2026

 

$

6,830

 
v3.26.1
Segment Reporting (Tables)
 3 Months Ended
Apr. 03, 2026
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment

Segment information for the three months ended April 3, 2026 and April 4, 2025 follows:

Revenues

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

141,412

 

 

$

122,135

 

Environmental and Health

 

 

24,891

 

 

 

23,372

 

Total revenues

 

$

166,303

 

 

$

145,507

 

 

Compensation and related expenses

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

64,058

 

 

$

57,248

 

Environmental and Health

 

 

12,897

 

 

 

12,448

 

Total segment compensation and related expenses

 

 

76,955

 

 

 

69,696

 

Corporate compensation and related expenses

 

 

14,454

 

 

 

6,207

 

Total compensation and related expenses

 

$

91,409

 

 

$

75,903

 

 

Operating Income

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

50,415

 

 

$

45,113

 

Environmental and Health

 

 

8,385

 

 

 

8,698

 

Total segment operating income

 

 

58,800

 

 

 

53,811

 

Corporate operating expense

 

 

(17,421

)

 

 

(9,379

)

Total operating income

 

$

41,379

 

 

$

44,432

 

 

 

Certain operating expenses are excluded from the Company’s measure of segment operating income. These expenses include costs associated with its human resources, finance, information technology, and business

development groups; the deferred compensation expense/benefit due to the change in value of assets associated with its deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in its allowance for contract losses and doubtful accounts.

Capital Expenditures

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

632

 

 

$

475

 

Environmental and Health

 

 

39

 

 

 

62

 

Total segment capital expenditures

 

 

671

 

 

 

537

 

Corporate capital expenditures

 

 

1,738

 

 

 

715

 

Total capital expenditures

 

$

2,409

 

 

$

1,252

 

 

 

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Engineering and Other Scientific

 

$

1,849

 

 

$

1,826

 

Environmental and Health

 

 

45

 

 

 

47

 

Total segment depreciation and amortization

 

 

1,894

 

 

 

1,873

 

Corporate depreciation and amortization

 

 

621

 

 

 

619

 

Total depreciation and amortization

 

$

2,515

 

 

$

2,492

 
v3.26.1
Leases (Tables)
 3 Months Ended
Apr. 03, 2026
Leases [Abstract]  
Lease, Cost

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Operating lease cost

 

$

3,196

 

 

$

3,212

 

Variable lease cost

 

 

630

 

 

 

303

 

Short-term lease cost

 

 

266

 

 

 

356

 
Supplemental Cash Flow Information Related to Operating Lease

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

 

 

Three Months Ended

 

(In thousands)

 

April 3,
2026

 

 

April 4,
2025

 

Cash paid for amounts included in the measurement of operating
   lease liabilities

 

$

3,109

 

 

$

2,602

 
Supplemental Balance Sheet Information Related to Operating Lease

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

 

April 3,
2026

 

 

April 4, 2025

 

Weighted Average Remaining Lease Term

13.0 years

 

 

13.6 years

 

Weighted Average Discount Rate

6.3%

 

 

6.3%

 
Maturities of Lease Liabilities

Maturities of operating lease liabilities as of April 3, 2026:

(In thousands)

 

Operating Leases

 

2026 (excluding the three months ended April 3, 2026)

 

$

6,180

 

2027

 

 

8,194

 

2028

 

 

10,914

 

2029

 

 

9,600

 

2030

 

 

9,092

 

Thereafter

 

 

80,286

 

Total lease payments

 

$

124,266

 

Less imputed interest

 

 

43,228

 

Total lease liability

 

$

81,038

 
v3.26.1
Revenue Recognition - Summary of Revenues (Detail) - Sales Revenue, Net [Member] - Revenue from Rights Concentration Risk [Member]
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Time And Materials Contracts [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 77.00% 82.00%
Time And Materials Contracts [Member] | Engineering & Other Scientific [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 62.00% 66.00%
Time And Materials Contracts [Member] | Environmental and Health [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 15.00% 16.00%
Fixed Price Contracts [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 23.00% 18.00%
Fixed Price Contracts [Member] | Engineering & Other Scientific [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 22.00% 17.00%
Fixed Price Contracts [Member] | Environmental and Health [Member]    
Disaggregation Of Revenue [Line Items]    
Concentration Risk, Percentage 1.00% 1.00%
v3.26.1
Revenue Recognition - Additional Information (Detail) - USD ($)
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Revenue Recognition [Abstract]    
Deferred Revenue, Revenue Recognized $ 7,420,000 $ 5,877,000
Subcontractor Fees Not Included In Revenues $ 6,775,000 $ 3,504,000
v3.26.1
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
Apr. 03, 2026
Jan. 02, 2026
Assets    
Trading securities held in deferred compensation plan $ 144,208,000 $ 139,515,000
Total 154,883,000 199,685,000
Liabilities    
Deferred compensation plan 146,484,000 [1] 144,706,000 [2]
Total 146,484,000 144,706,000
Money market securities    
Assets    
Money market securities 10,675,000 [3] 60,170,000 [4]
Fixed income securities    
Assets    
Trading securities held in deferred compensation plan 50,738,000 [5] 45,332,000 [6]
Equity securities    
Assets    
Trading securities held in deferred compensation plan 93,470,000 [5] 94,183,000 [6]
Fair Value, Inputs, Level 1    
Assets    
Total 154,883,000 199,685,000
Liabilities    
Deferred compensation plan 146,484,000 [1] 144,706,000 [2]
Total 146,484,000 144,706,000
Fair Value, Inputs, Level 1 | Money market securities    
Assets    
Money market securities 10,675,000 [3] 60,170,000 [4]
Fair Value, Inputs, Level 1 | Fixed income securities    
Assets    
Trading securities held in deferred compensation plan 50,738,000 [5] 45,332,000 [6]
Fair Value, Inputs, Level 1 | Equity securities    
Assets    
Trading securities held in deferred compensation plan 93,470,000 [5] 94,183,000 [6]
Fair Value, Inputs, Level 2    
Assets    
Total 0 0
Liabilities    
Deferred compensation plan 0 [1] 0 [2]
Total 0 0
Fair Value, Inputs, Level 2 | Money market securities    
Assets    
Money market securities 0 [3] 0 [4]
Fair Value, Inputs, Level 2 | Fixed income securities    
Assets    
Trading securities held in deferred compensation plan 0 [5] 0 [6]
Fair Value, Inputs, Level 2 | Equity securities    
Assets    
Trading securities held in deferred compensation plan 0 [5] 0 [6]
Fair Value, Inputs, Level 3    
Assets    
Total 0 0
Liabilities    
Deferred compensation plan 0 [1] 0 [2]
Total 0 0
Fair Value, Inputs, Level 3 | Money market securities    
Assets    
Money market securities 0 [3] 0 [4]
Fair Value, Inputs, Level 3 | Fixed income securities    
Assets    
Trading securities held in deferred compensation plan 0 [5] 0 [6]
Fair Value, Inputs, Level 3 | Equity securities    
Assets    
Trading securities held in deferred compensation plan $ 0 [5] $ 0 [6]
[1] Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.
[2] Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.
[3] Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.
[4] Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.
[5] Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.
[6] Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.
v3.26.1
Fair Value Measurements - Cash and Cash Equivalents (Detail) - USD ($)
$ in Thousands
Apr. 03, 2026
Jan. 02, 2026
Cash    
Fair Value Measurements [Line Items]    
Amortized Cost $ 107,878 $ 161,760
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 107,878 161,760
Money market securities    
Fair Value Measurements [Line Items]    
Amortized Cost 10,675 60,170
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 10,675 60,170
Total cash equivalents    
Fair Value Measurements [Line Items]    
Amortized Cost 10,675 60,170
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 10,675 60,170
Total cash and cash equivalents    
Fair Value Measurements [Line Items]    
Amortized Cost 118,553 221,930
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value $ 118,553 $ 221,930
v3.26.1
Net Income Per Share - Reconciles the Denominators of the Company's Calculation for Basic and Diluted Net Income per Share (Detail) - shares
shares in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Schedule Of Earnings Per Share Basic and Diluted [Line Items]    
Shares used in basic per share computation 49,790 51,283
Shares used in diluted per share computation 50,119 51,650
Employee Stock Option    
Schedule Of Earnings Per Share Basic and Diluted [Line Items]    
Effect of dilutive stock outstanding 47 103
Restricted Stock Units (RSUs)    
Schedule Of Earnings Per Share Basic and Diluted [Line Items]    
Effect of dilutive stock outstanding 282 264
v3.26.1
Net Income Per Share - Additional Information (Detail) - shares
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Earnings Per Share [Abstract]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 215,833 100,833
v3.26.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Percentage of annual bonus settled with fully vested restricted stock unit awards 40.00%  
Vested Restricted Stock Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock based compensation, holding period 4 years  
Stock based compensation expense $ 3,971,000 $ 3,151,000
Unvested Restricted Stock Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock based compensation, vesting period 4 years  
Stock based compensation expense $ 4,414,000 4,240,000
Unvested Restricted Stock Awards | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Recipient age to expense award on grant date 59 years 6 months  
Employee Stock Option    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock based compensation, vesting period 4 years  
Stock based compensation expense $ 673,000 $ 788,000
Share Based Compensation Arrangement By Share Based Payment Award Options Expiration Term 10 years  
Vesting percentage of stock options granted per year 25.00%  
Unvested Stock Options | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Recipient age to expense award on grant date 59 years 6 months  
v3.26.1
Deferred Compensation Plans - Additional Information (Detail) - USD ($)
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Jan. 02, 2026
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]      
Trading securities held in deferred compensation plan $ 144,208,000   $ 139,515,000
Deferred compensation plan 146,484,000 [1]   $ 144,706,000 [2]
Change in market value of trust assets $ 1,138,000 $ 9,336,000  
Maximum      
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]      
Percentage of compensation deferred 100.00%    
[1] Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.
[2] Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet.
v3.26.1
Supplemental Disclosure of Cash Flow Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Cash paid during period:    
Income taxes $ 1,204 $ 1,461
Non-cash investing and financing activities:    
Vested stock unit awards issued to settle accrued bonuses 13,381 12,179
Right-of-use asset obtained in exchange for operating lease obligations 33  
Accrual for capital expenditures $ 198 73
Repurchases of common stock   $ 5,000
v3.26.1
Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Apr. 03, 2026
Jan. 02, 2026
Accounts Notes And Loans Receivable [Line Items]    
Allowance for contract losses and doubtful accounts $ (6,830) $ (7,478)
Total accounts receivable, net 197,336 181,507
Billed accounts receivable    
Accounts Notes And Loans Receivable [Line Items]    
Accounts Receivable 131,134 134,700
Unbilled accounts receivable    
Accounts Notes And Loans Receivable [Line Items]    
Accounts Receivable $ 73,032 $ 54,285
v3.26.1
Accounts Receivable, Net - Reconciliation of Beginning and Ending Amount of Allowance for Contract Losses and Doubtful Accounts (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Receivables [Abstract]    
Balance at January 2, 2026 $ 7,478  
Provision for contract losses and doubtful accounts 268 $ 256
Write-offs (916)  
Balance at April 3, 2026 $ 6,830  
v3.26.1
Segment Reporting (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Segment Reporting Information [Line Items]    
Revenues $ 166,303 $ 145,507
Compensation and related expenses 91,409 75,903
Operating Income 41,379 44,432
Capital Expenditures 2,409 1,252
Depreciation and Amortization 2,515 2,492
Operating segments    
Segment Reporting Information [Line Items]    
Compensation and related expenses 76,955 69,696
Operating Income 58,800 53,811
Capital Expenditures 671 537
Depreciation and Amortization 1,894 1,873
Corporate    
Segment Reporting Information [Line Items]    
Compensation and related expenses 14,454 6,207
Operating Income (17,421) (9,379)
Capital Expenditures 1,738 715
Depreciation and Amortization 621 619
Engineering and Other Scientific | Operating segments    
Segment Reporting Information [Line Items]    
Revenues 141,412 122,135
Compensation and related expenses 64,058 57,248
Operating Income 50,415 45,113
Capital Expenditures 632 475
Depreciation and Amortization 1,849 1,826
Environmental and Health | Operating segments    
Segment Reporting Information [Line Items]    
Revenues 24,891 23,372
Compensation and related expenses 12,897 12,448
Operating Income 8,385 8,698
Capital Expenditures 39 62
Depreciation and Amortization $ 45 $ 47
v3.26.1
Segment Reporting - Additional Information (Detail)
 3 Months Ended
Apr. 03, 2026
Client
Segment
Apr. 04, 2025
Client
Segment Reporting Information [Line Items]    
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration] srt:ChiefExecutiveOfficerMember  
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments, but does not review total assets in evaluating segment performance and capital allocation.  
Number of operating segments 2  
Number of reportable segments 2  
Sales Revenue, Net [Member] | Revenue from Rights Concentration Risk [Member] | Single Client [Member]    
Segment Reporting Information [Line Items]    
Number of clients comprised more than 10% of revenue or accounts receivable | Client 0 0
Concentration Risk, Percentage 10.00% 10.00%
v3.26.1
Leases - Additional Information (Detail)
 3 Months Ended
Apr. 03, 2026
USD ($)
a
State
Option
Apr. 04, 2025
USD ($)
Other Income [Member]    
Lessee Lease Description [Line Items]    
Rental Income | $ $ 333,000 $ 191,000
Office, Laboratory, and Storage Space [Member]    
Lessee Lease Description [Line Items]    
Number of States in which Entity Has Lease Arrangements | State 12  
Office, Laboratory, and Storage Space [Member] | Minimum    
Lessee Lease Description [Line Items]    
Lessee, Operating Lease, Term of Contract 1 year  
Office, Laboratory, and Storage Space [Member] | Maximum    
Lessee Lease Description [Line Items]    
Lessee, Operating Lease, Term of Contract 10 years  
Phoenix Arizona [Member]    
Lessee Lease Description [Line Items]    
Area of Land | a 147  
Lessee, Operating Lease, Option to Extend The Company leases this land from the State of Arizona under an agreement that expires in January of 2043 and includes an option to renew for one fifteen-year period.  
Number of Options to Renew Lease | Option 1  
Lessee, Operating Lease, Renewal Term 15 years  
v3.26.1
Components of Lease Expense (Detail) - Other Operating Income (Expense) [Member] - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Operating lease cost $ 3,196 $ 3,212
Variable lease cost 630 303
Short-term lease cost $ 266 $ 356
v3.26.1
Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 03, 2026
Apr. 04, 2025
Leases [Abstract]    
Cash paid for amounts included in the measurement of operating lease liabilities $ 3,109 $ 2,602
v3.26.1
Supplemental Balance Sheet Information Related to Operating Leases (Detail)
Apr. 03, 2026
Apr. 04, 2025
Leases [Abstract]    
Weighted Average Remaining Lease Term 13 years 13 years 7 months 6 days
Weighted Average Discount Rate 6.30% 6.30%
v3.26.1
Maturities of Lease Liabilities (Detail)
$ in Thousands
Apr. 03, 2026
USD ($)
Leases [Abstract]  
2026 (excluding the three months ended April 3, 2026) $ 6,180
2027 8,194
2028 10,914
2029 9,600
2030 9,092
Thereafter 80,286
Total lease payments 124,266
Less imputed interest 43,228
Total lease liability $ 81,038
v3.26.1
Subsequent Events - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 30, 2026
Apr. 03, 2026
Apr. 04, 2025
Subsequent Event [Line Items]      
Cash dividends declared per common share (in dollars per share)   $ 0.31 $ 0.3
O 2026 Q2 Dividends | Subsequent Event      
Subsequent Event [Line Items]      
Cash dividends declared per common share (in dollars per share) $ 0.31    
Dividends Payable, Date Declared Apr. 30, 2026    
Dividends Payable, Date to be Paid Jun. 18, 2026    
Dividends Payable, Date of Record Jun. 05, 2026    
Stock repurchase program additional amount authorized $ 50