Medpace Holdings, Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Medpace Holdings, Inc. reported a significant increase in revenue and net income for the fourth quarter and full year ended December 31, 2025, indicating strong business performance and growth potential. Financial Performance - Revenue for Q4 2025 increased by 32.0% to $708.5 million, compared to $536.6 million in Q4 2024. On a constant currency basis, revenue grew by 31.4% [2][3] - For the full year 2025, revenue rose by 20.0% to $2,530.2 million from $2,109.1 million in 2024, with a constant currency increase of 19.7% [7][9] - GAAP net income for Q4 2025 was $135.1 million, or $4.67 per diluted share, up from $117.0 million, or $3.67 per diluted share in Q4 2024. The net income margin was 19.1% for Q4 2025 compared to 21.8% in Q4 2024 [5][9] - Full year GAAP net income for 2025 was $451.1 million, or $15.28 per diluted share, compared to $404.4 million, or $12.63 per diluted share in 2024, resulting in a net income margin of 17.8% for 2025 versus 19.2% for 2024 [9][10] Operational Metrics - The backlog as of December 31, 2025, increased by 4.3% to $3,027.2 million from $2,902.2 million as of December 31, 2024. Net new business awards were $736.6 million, with a net book-to-bill ratio of 1.04x for Q4 2025 [3][8] - Total direct costs for Q4 2025 were $503.1 million, compared to $358.3 million in Q4 2024. SG&A expenses were $44.9 million in Q4 2025, slightly down from $45.4 million in Q4 2024 [4][8] EBITDA Analysis - EBITDA for Q4 2025 increased by 20.0% to $160.2 million, representing 22.6% of revenue, compared to $133.5 million, or 24.9% of revenue in Q4 2024. On a constant currency basis, EBITDA grew by 23.2% [6][10] - For the full year 2025, EBITDA rose by 16.1% to $557.7 million, or 22.0% of revenue, compared to $480.2 million, or 22.8% of revenue in 2024. On a constant currency basis, EBITDA increased by 17.6% [10][29] Balance Sheet and Liquidity - As of December 31, 2025, cash and cash equivalents were $497.0 million, with the company generating $192.7 million in cash flow from operating activities during Q4 2025 [11] - The company repurchased 2,961,924 shares for a total of $912.9 million during the full year 2025, with $821.7 million remaining under its authorized share repurchase program as of December 31, 2025 [11] 2026 Financial Guidance - The company forecasts 2026 revenue in the range of $2.755 billion to $2.855 billion, representing growth of 8.9% to 12.8% over 2025 revenue. GAAP net income for 2026 is projected to be between $487.0 million and $511.0 million [13][29]