Exponent (EXPO) Tumbled as Guidance Fell Short of Expectations

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Exponent, Inc. (NASDAQ:EXPO). Exponent, Inc. (NASDAQ:EXPO) is a science and engineering consulting company. The one-month return of Exponent, Inc. (NASDAQ:EXPO) was 2.45%, and its shares lost 33.87% of their value over the last 52 weeks. On September 11, 2025, Exponent, Inc. (NASDAQ:EXPO) stock closed at $70.95 per share, with a market capitalization of $3.583 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Exponent, Inc. (NASDAQ:EXPO) in its second quarter 2025 investor letter:

"Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Exponent, Inc. (NASDAQ:EXPO), a science and engineering consulting company, receded by -7%. While first quarter results were solid, guidance for the second quarter fell short of estimates."

Exponent, Inc. (NASDAQ:EXPO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Exponent, Inc. (NASDAQ:EXPO) at the end of the second quarter, which was 35 in the previous quarter. For the second quarter of 2025, Exponent, Inc.’s (NASDAQ:EXPO) total revenues increased 1% to $142 million. While we acknowledge the potential of Exponent, Inc. (NASDAQ:EXPO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Exponent, Inc. (NASDAQ:EXPO) and shared Prosper Stars & Stripes' views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.