The Short Answer
Exponent (EXPO) has a qualitative business verdict that is HALAL, but the overall financial result depends on the methodology. Exponent is a leading engineering-and-scientific consulting firm specializing in failure-analysis and risk-engineering.
Engineering-and-scientific consulting is generally permissible at the activity level, and Exponent reports no interest-bearing debt. Receivables plus cash are 45.96% of assets, below the examined FTSE-style limit but above the examined MSCI-style limit.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-15.
0 / 687.381
118.553 / 687.381
315.889 / 687.381
1.718 / 166.303
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 17.25%, receivables-plus-cash/assets is 45.96% and disclosed interest income is 1.03%; known FTSE-style ratios pass while activity remains qualitative.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 45.96%, above the examined MSCI 33.33% limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; methodology-specific asset ratios remain documented.
Business-activity disclosure
Exponent provides engineering, scientific consulting, failure analysis, risk assessment and litigation-support services. The core professional-services activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator across clients and engagements.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; client end use remains qualitative.
Purification
The filing discloses $1.718 million of interest income, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Exponent's April 3, 2026 Form 10-Q.
- The balance sheet reports no interest-bearing debt; operating leases are excluded.
- Cash and cash equivalents are $118.553 million and accounts receivable, net are $197.336 million. Deferred-compensation plan assets are excluded from interest-bearing securities because they are plan assets rather than corporate liquidity investments.
- First-quarter revenue is $166.303 million and reported interest income, net is $1.718 million (1.03% of revenue).
- Receivables-plus-cash/assets is 45.96%, below the examined FTSE 50% limit but above the examined MSCI 33.33% limit; no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Exponent's Business Activity
Exponent provides:
- Failure analysis: Investigating why products, structures, and systems fail
- Risk and product engineering: Product-development, regulatory, and risk-assessment services
- Litigation support: Expert analysis across engineering, environmental, and health sciences
These are general-purpose professional-services businesses — selling highly-skilled engineering-and-scientific expertise. This is permissible at the activity level.
Concerns to Be Aware Of
1. Client Mix Look-Through
Exponent serves clients across mixed-Sharia-profile industries (technology, transportation, energy, consumer-products, chemicals, and insurance). Under standard methodology, the relevant classification is general-purpose engineering-and-scientific consulting rather than the look-through client mix.
2. Business-Cycle Sensitivity
Revenue can be sensitive to litigation activity, the timing of large reactive engagements, and the broader business cycle. Utilization rates and staff retention drive results. These are business considerations rather than Sharia screen concerns.
3. Minor Interest Income
The filing reports $1.718 million of interest income, or 1.03% of quarterly revenue. ZakatInvest does not prescribe a fixed purification percentage.
Filing-Based Ratios (April 3, 2026)
Using the latest Exponent Form 10-Q (USD millions):
- Debt / total assets: 0.00%
- Cash + securities / total assets: 17.25%
- Receivables + cash / total assets: 45.96%
- Disclosed interest income / revenue: 1.03%
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Known financial ratios pass; activity remains qualitative.
- MSCI-style: Fails the 33.33% receivables-plus-cash ratio.
- Malaysia-style: Known debt and liquidity ratios pass; this is not an official classification.
Bottom Line
Exponent (EXPO) has a generally permissible consulting business, but the 45.96% receivables-plus-cash ratio fails the examined MSCI-style limit while passing the FTSE-style and Malaysia-style ratios. The result is methodology-dependent, not a universal halal certification.
For Muslim investors seeking professional-services exposure, EXPO sits alongside other halal-screened names like Verisk (VRSK) and Gartner (IT).
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