Medpace (MEDP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $659.9 million, up 23.7% year-over-year, with net income of $111.1 million (+15.3%) and EBITDA of $148.4 million (+24.9%).

• Net new business awards rose 47.9% to $789.6 million, with a net book-to-bill ratio of 1.20 and backlog reaching $3.0 billion (+2.5% YoY).

• Backlog conversion rate increased to 23.0%, with $1.84 billion expected to convert to revenue in the next 12 months.

• Growth was driven by strong performance in Metabolic, Oncology, and Central Nervous System therapeutic areas.

• Pre-backlog (awarded but not yet started work) is up 30% year-over-year and now exceeds the size of the reported backlog.

Financial highlights

• Year-to-date revenue as of September 30, 2025, was $1.82 billion (+15.9% YoY); year-to-date net income was $316.0 million.

• Q3 2025 EBITDA margin was 22.5% (vs. 22.3% prior year); operating margin was 21.5%.

• Diluted EPS for Q3 2025 was $3.86 (up from $3.01 in Q3 2024); year-to-date EPS was $10.64.

• Cash and cash equivalents at quarter-end were $285.4 million; operating cash flow for the first nine months was $520.6 million.

• No outstanding debt as of September 30, 2025.

Outlook and guidance

• 2025 revenue guidance: $2.48–$2.53 billion (+17.6% to +20% YoY); EBITDA: $545–$555 million (+13.5% to +15.6% YoY); net income: $431–$439 million; EPS: $14.60–$14.86; effective tax rate: 18.25%–18.75%.

• 2026 preliminary outlook: revenue growth in low double digits over updated 2025 guidance; EBITDA growth at high single-digit pace or greater.

• Pass-through costs expected to remain high at 41–42% of revenue, with a potential peak in Q4 2025 and moderation in 2026.

• Management expects to fund growth initiatives and capital needs through operating cash flow and available credit.

• No additional share repurchases included in 2025 guidance.