Medpace (MEDP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 14.2% year-over-year to $603.3 million, driven by growth in Metabolic, Oncology, and CNS therapeutic areas, with EBITDA up 16.2% to $130.5 million and net income at $90.3 million ($3.10 per share).

• Net new business awards for Q2 were $620.5 million, up 12.6% year-over-year, with a net book-to-bill ratio of 1.03 and backlog at $2.87 billion, down 1.8% year-over-year.

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

• The funding environment stabilized, supporting ongoing studies and improved decision rates, while cancellations dropped significantly.

• Backlog conversion in Q2 was 21.2%, with $1.74–$1.76 billion expected to convert to revenue in the next 12 months.

Financial highlights

• Year-to-date revenue was $1.16 billion, up 11.8% year-over-year; year-to-date EBITDA was $249.1 million (21.4% margin), up 9.3%.

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

• 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 increased 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 raised to $13.76–$14.53.

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

• Reimbursable costs as a percentage of revenue expected to rise by 200–300 basis points in the second half.