Medpace (MEDP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 14.2% year-over-year to $603.3 million, with EBITDA up 16.2% to $130.5 million and net income at $90.3 million; net new business awards reached $620.5 million, and backlog was $2.87 billion, down 1.8% year-over-year.

• Book-to-bill ratio for Q2 was 1.03, with backlog conversion at 21.2%.

• Share repurchases totaled 2.95 million shares for $908.4 million in the first half of 2025, with $826.3 million remaining authorized.

• Funding environment for clients has stabilized or improved, supporting ongoing studies and reducing project delays.

• Growth was driven by Metabolic, Oncology, and CNS therapeutic areas.

Financial highlights

• Year-to-date revenue was $1.16 billion, up 11.8% year-over-year; EBITDA was $249.1 million, up 9.3% year-over-year.

• Net income for Q2 was $90.3 million, with diluted EPS of $3.10, up from $2.75 in Q2 2024.

• Operating income for Q2 was $126.3 million, up from $105.2 million in Q2 2024.

• Cash and cash equivalents as of June 30, 2025, were $46.3 million, down from $669.4 million at year-end 2024, mainly due to share repurchases.

• Operating cash flow for Q2 was $148.5 million; free cash flow was $142.4 million.

Outlook and guidance

• 2025 revenue guidance raised to $2.42–$2.52 billion, representing 14.7%–19.5% growth over 2024.

• 2025 EBITDA expected at $515–$545 million, up 7.3%–13.5% from 2024.

• Net income forecasted at $405–$428 million; EPS guidance is $13.76–$14.53.

• Approximately $1.74–$1.76 billion of backlog is expected to convert to revenue over the next twelve months.

• Guidance assumes a tax rate of 18.5%–19.0% and 29.4 million diluted shares outstanding.