Medpace (MEDP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 9.3% year-over-year to $558.6 million, with net income up 11.7% to $114.6 million and diluted EPS increasing to $3.67 from $3.20.

• EBITDA increased 2.6% to $118.6 million, with a margin of 21.2%, while operating income rose 9.1% to $113.5 million.

• Net new business awards declined 18.8% year-over-year to $500 million, resulting in a book-to-bill ratio of 0.90.

• Backlog decreased 2.1% to $2.85 billion as of March 31, 2025, with $1.6–$1.62 billion expected to convert to revenue in the next 12 months.

• Share repurchases totaled $389.8 million for 1.19 million shares in Q1 2025, with a $1.0 billion increase to the repurchase program approved in April.

Financial highlights

• Net income per diluted share was $3.67, up from $3.20 in Q1 2024.

• Operating cash flow for Q1 2025 was $125.8 million, with cash and equivalents at $441.4 million at quarter-end.

• Free cash flow for Q1 2025 was $115.8 million, with a conversion rate of 97.6%.

• SG&A expenses increased 31.3% year-over-year to $57.9 million.

• Top five customers accounted for 22% of Q1 revenue, with no single customer above 10%.

Outlook and guidance

• 2025 revenue guidance is $2.14–$2.24 billion, representing 1.5%–6.2% growth over 2024.

• 2025 EBITDA is expected between $462–$492 million, ranging from a 3.8% decline to 2.5% growth versus 2024.

• Net income guidance for 2025 is $378–$402 million; EPS expected at $12.26–$13.04, assuming a 15.5%–16.5% tax rate.

• Guidance assumes 30.8 million diluted shares and no additional share repurchases.

• The company expects to fund growth and capital needs through operating cash flow and expanded credit facilities.