Medpace(US:MEDP)2025-10-23 20:03Revenue Performance - Revenue for the three months ended September 30, 2025, was $659.9 million, representing a 23.7% increase from $533.3 million in the same period of 2024[84] - Total revenue increased by $126.6 million to $659.9 million for the three months ended September 30, 2025, representing a 23.7% growth compared to the same period in 2024[87] - Total revenue for the nine months ended September 30, 2025, rose by $249.3 million to $1,821.8 million, reflecting a 15.9% increase year-over-year[85] Costs and Expenses - Total direct costs for the three months ended September 30, 2025, increased by 27.1% to $463.0 million, up from $364.3 million in the prior year[84] - Total direct costs increased by $98.7 million to $463.0 million for the three months ended September 30, 2025, a 27.1% increase compared to the same period in 2024[88] - Total direct costs rose by $172.0 million to $1,266.5 million for the nine months ended September 30, 2025, a 15.7% increase year-over-year[88] - Selling, general and administrative expenses decreased by 2.3% to $48.1 million for the three months ended September 30, 2025, down from $49.2 million in 2024[84] - Selling, general and administrative expenses increased by $17.9 million to $152.6 million for the nine months ended September 30, 2025, marking a 13.3% rise compared to the previous year[89] - Reimbursed out-of-pocket expenses rose by 43.5% to $276.6 million for the three months ended September 30, 2025, compared to $192.8 million in 2024[84] - Reimbursed out-of-pocket expenses rose by $83.9 million and $136.6 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year[88] Profitability - Net income for the three months ended September 30, 2025, was $111.1 million, an increase of 15.3% from $96.4 million in the same period of 2024[84] - Net income for the nine months ended September 30, 2025, was $315.99 million, up from $287.37 million in 2024, reflecting an increase of $28.62 million[85] - Income before income taxes for the three months ended September 30, 2025, was $142.8 million, up from $118.8 million in the same period of 2024, marking a 20.2% increase[84] - Income tax provision increased by $14.9 million to $69.6 million for the nine months ended September 30, 2025, with an effective tax rate of 18.0% compared to 16.0% in 2024[94] - Income tax provision increased by $9.4 million to $31.7 million for the three months ended September 30, 2025, with an effective tax rate of 22.2%[94] Business Awards and Backlog - Net new business awards were $789.6 million for the three months ended September 30, 2025, compared to $533.7 million for the same period in 2024, reflecting a significant increase[79] - For the three months ended September 30, 2025, net new business awards were $789.6 million, compared to $533.7 million for the same period in 2024, representing a 47.9% increase[79] - For the nine months ended September 30, 2025, net new business awards were $1,910.2 million, compared to $1,700.3 million for the same period in 2024, representing a 12.3% increase[79] - Backlog as of September 30, 2025, increased by $73.2 million, or 2.5%, to $3,000.6 million compared to $2,927.4 million as of September 30, 2024[80] - Approximately $1,830.0 million to $1,850.0 million of the backlog is expected to convert to net revenue over the next twelve months[80] Cash Flow and Financing - Net cash provided by operating activities was $520.6 million for the nine months ended September 30, 2025, compared to $418.1 million in 2024, indicating a significant increase[101][102] - Cash and cash equivalents decreased to $285.4 million as of September 30, 2025, down from $669.4 million at the end of 2024, primarily due to stock repurchases[96] - The company repurchased 2,961,924 shares for $912.9 million during the nine months ended September 30, 2025, with remaining authorization of $821.7 million under the repurchase program[106] - Net cash used in financing activities for the nine months ended September 30, 2025, was $883.1 million, mainly due to $917.4 million in common stock repurchases[104] - As of September 30, 2025, the company had no indebtedness[108] Operational Insights - The company focuses on conducting clinical trials across major therapeutic areas, with particular strength in Oncology, Metabolic Disease, and Cardiology[66] - The global platform includes approximately 6,200 employees across 44 countries as of September 30, 2025[66] - The company utilizes a disciplined operating model centered on providing full-service Phase I-IV clinical development services[64] - The company expects to continue expanding operations through organic growth and selective bolt-on acquisitions, supported by cash flow from operations and existing credit facilities[98] Foreign Currency Impact - The average exchange rate for U.S. Dollars per Euro for the three months ended September 30, 2025, was 1.17, compared to 1.10 for the same period in 2024[83] - The average exchange rate for the Euro to U.S. Dollar was 1.17 for the three months ended September 30, 2025, compared to 1.10 for the same period in 2024[83] - The company reported favorable foreign currency adjustments of $2.6 million for the three months ended September 30, 2025, and $24.0 million for the nine months ended September 30, 2025[81] Accounting Policies - There have been no significant changes in critical accounting policies and estimates since the last annual report[110]