Financial Data and Key Metrics Changes - Revenue in Q4 2025 was $708.5 million, representing a year-over-year increase of 32% [5][6] - Full year 2025 revenue was $2.53 billion, a 20% increase from 2024 [5][6] - EBITDA for Q4 2025 was $160.2 million, up 20% from $133.5 million in Q4 2024 [6][7] - Full year EBITDA was $557.7 million, a 16.1% increase from the prior year [7] - Net income for Q4 2025 was $135.1 million, a 15.5% increase compared to $117 million in the prior year [7][8] - Full year net income was $451.1 million, an 11.6% increase from $404.4 million in 2024 [8] Business Line Data and Key Metrics Changes - Net new business awards entering backlog in Q4 increased 39.1% year-over-year to $736.6 million [5] - Ending backlog as of December 31, 2025, was approximately $3 billion, a 4.3% increase from the prior year [5] - Backlog conversion rate in Q4 was 23.6% of beginning backlog [5] Market Data and Key Metrics Changes - Cancellations were elevated in Q4, resulting in the highest backlog cancellations in over a year [4] - The net book-to-bill ratio was 1.04, lower than anticipated due to increased cancellations [4] Company Strategy and Development Direction - The company rates the overall business environment as adequate and improving [4] - There is an expectation for accelerated hiring in 2026, with a focus on mid to high single-digit growth [15] - The company anticipates a shift in the therapeutic area concentration, with metabolic trials expected to normalize as a percentage of revenue [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the business environment remains reasonably good, with RFPs up slightly [18] - There is no significant change in decision-making or project progression despite elevated cancellations [55] - The company does not foresee a long-term risk from the concentration in the metabolic area [31] Other Important Information - Full year 2026 total revenue is expected to be in the range of $2.755 billion to $2.855 billion, representing growth of 8.9% to 12.8% over 2025 [9] - The company plans to maintain a focus on improving efficiency through technology and AI applications [65] Q&A Session Summary Question: What is embedded in your guidance for revenue growth excluding pass-throughs? - The company does not provide guidance on direct service revenue but expects reimbursable costs to be consistent with previous expectations [12][13] Question: What do you expect headcount growth to be in 2026? - The company anticipates hiring in 2026 to be above 25 levels, in the mid to high single-digit growth area [14] Question: Can you unpack the business environment and RFP activity? - The business environment is reasonably good, with RFPs up slightly, but cancellations led to missing expectations [18] Question: Can you provide details on cancellations? - Cancellations were widespread and not concentrated in any single project or client [24][22] Question: How do you view the competitive landscape? - The competitive landscape remains stable, with no significant changes in dynamics observed [59] Question: What are your thoughts on AI and its impact? - The company believes it is too early to determine the long-term impact of AI, with expectations for gradual changes [51]

Q4 2025 FINANCIAL RESULTS FEBRUARY 9, 2026 FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward- looking statements, including without limitation, statements regarding our forecasted financial results and the effective tax rate ...

Core Viewpoint - Medpace Holdings, Inc. (MEDP) is rated a Buy based on the analysis conducted on April 4, 2025, indicating a positive outlook for the stock [1]. Company Analysis - The analyst has a beneficial long position in MEDP shares, indicating confidence in the company's future performance [1]. - The focus of the analysis is on identifying strong businesses at reasonable prices, suggesting that Medpace is perceived as a solid investment opportunity [1]. Investment Strategy - The investment approach includes a mix of long-term holding and trend-following strategies, reflecting a comprehensive investment philosophy [1]. - There is a slight bias towards technology companies, but the analysis maintains a broad perspective, including opportunities in other sectors such as crypto [1].

Revenue Growth - Revenue for Q4 2025 increased 32.0% to $708.5 million, compared to $536.6 million in Q4 2024, with a backlog conversion rate of 23.6%[3][8] - Full year 2025 revenue rose 20.0% to $2,530.2 million from $2,109.1 million in 2024[10] - Revenue for Q4 2025 reached $708.45 million, a 32% increase from $536.59 million in Q4 2024[28] Business Awards - Net new business awards for Q4 2025 were $736.6 million, a 39.1% increase from $529.7 million in Q4 2024, resulting in a net book-to-bill ratio of 1.04x[4][8] - For the full year 2025, net new business awards totaled $2,646.8 million, with a net book-to-bill ratio of 1.05x, compared to $2,230.0 million in 2024[11] Net Income - GAAP net income for Q4 2025 was $135.1 million, or $4.67 per diluted share, compared to $117.0 million, or $3.67 per diluted share, in Q4 2024, with a net income margin of 19.1%[6][8] - GAAP net income for the full year 2025 was $451.1 million, or $15.28 per diluted share, versus $404.4 million, or $12.63 per diluted share, in 2024, with a net income margin of 17.8%[12] - Net income for the twelve months ended December 31, 2025, was $451.12 million, up 11.5% from $404.39 million in 2024[28] EBITDA Performance - EBITDA for Q4 2025 increased 20.0% to $160.2 million, representing 22.6% of revenue, compared to $133.5 million, or 24.9% of revenue, in Q4 2024[7][8] - EBITDA for the full year 2025 increased 16.1% to $557.7 million, or 22.0% of revenue, compared to $480.2 million, or 22.8% of revenue, in 2024[13] - EBITDA for Q4 2025 was $160.24 million, representing a 20% increase from $133.51 million in Q4 2024[32] Financial Guidance - The company forecasts 2026 revenue between $2.755 billion and $2.855 billion, representing growth of 8.9% to 12.8% over 2025 revenue[15] - GAAP net income for 2026 is projected to be between $487.0 million and $511.0 million, with diluted earnings per share expected to range from $16.68 to $17.50[15] - The company provided guidance for 2026 net income between $487 million and $511 million, with diluted earnings per share projected between $16.68 and $17.50[33] Operating Expenses and Liabilities - Total operating expenses for 2025 were $1.995 billion, compared to $1.662 billion in 2024, reflecting a 20% increase[28] - Total liabilities increased to $1.516 billion in 2025 from $1.275 billion in 2024, indicating a rise in financial obligations[30] Cash and Advanced Billings - Cash and cash equivalents decreased to $497.05 million as of December 31, 2025, from $669.44 million in 2024[30] - Advanced billings increased to $854.39 million in 2025, up from $710.59 million in 2024, indicating strong future revenue potential[30] Stock-Based Compensation - Stock-based compensation expense rose to $34.79 million in 2025, compared to $25.51 million in 2024, reflecting increased employee incentives[31] Margin Analysis - The net income margin for Q4 2025 was 19.1%, down from 21.8% in Q4 2024, while the EBITDA margin was 22.6%, down from 24.9%[32]

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]

Company Performance - Medpace's stock closed at $582.48, reflecting a decrease of -1.79% from the previous day, underperforming compared to the S&P 500's daily loss of 0.43% [1] - Over the last month, Medpace's shares have increased by 5.59%, outperforming the Medical sector's loss of 2.36% and the S&P 500's gain of 0.89% [1] Upcoming Earnings - Medpace is set to disclose its earnings on February 9, 2026, with analysts expecting earnings of $4.18 per share, indicating a year-over-year growth of 13.9% [2] - The consensus estimate for revenue is projected at $681.17 million, representing a growth of 26.94% compared to the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $14.8 per share and revenue of $2.5 billion, reflecting changes of +17.18% and 0% respectively from the prior year [3] - Recent changes to analyst estimates indicate a positive outlook for Medpace, as upward revisions are often seen as a sign of optimism regarding business trends [3] Valuation Metrics - Medpace has a Forward P/E ratio of 35.67, which is a premium compared to the industry average Forward P/E of 15.73 [6] - The company has a PEG ratio of 1.99, compared to the Medical Services industry's average PEG ratio of 1.77 [6] Industry Context - The Medical Services industry, which includes Medpace, ranks 178 in the Zacks Industry Rank, placing it in the bottom 28% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance potential of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Medpace's stock closed at $588.05, down 3.01%, underperforming the S&P 500's gain of 0.03% on the same day [1] - Over the past month, Medpace's stock has increased by 6.02%, outperforming the Medical sector's slight loss of 0.01% and the S&P 500's gain of 0.6% [1] Upcoming Earnings - Medpace is set to release its earnings report on February 9, 2026, with an expected EPS of $4.18, reflecting a 13.9% increase year-over-year [2] - Revenue is anticipated to reach $681.17 million, indicating a 26.94% rise compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $14.8 per share and revenue of $2.5 billion, representing increases of 17.18% and no change, respectively, from the previous year [3] - Recent revisions to analyst forecasts for Medpace are crucial as they reflect short-term business trends and can indicate analysts' positive outlook on the company's health and profitability [3] Valuation Metrics - Medpace currently has a Forward P/E ratio of 36.47, which is significantly higher than the industry average Forward P/E of 16.37 [5] - The company has a PEG ratio of 2.04, compared to the industry average PEG ratio of 1.92 [6] Industry Ranking - The Medical Services industry, which includes Medpace, has a Zacks Industry Rank of 188, placing it in the bottom 24% of over 250 industries [6] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - Medpace (MEDP) closed at $616.45, marking a +1.32% move from the prior day, outperforming the S&P 500's daily loss of 0.53% [1] - The stock has risen by 8.89% in the past month, leading the Medical sector's gain of 0.09% and the S&P 500's gain of 2.06% [1] Upcoming Earnings - Medpace's earnings report is set to be unveiled on February 9, 2026, with projected earnings per share (EPS) of $4.18, reflecting a 13.9% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $681.17 million, up 26.94% from the year-ago period [2] Full Year Estimates - Analysts expect earnings of $14.8 per share and revenue of $2.5 billion for the full year, marking changes of +17.18% and 0%, respectively, from last year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Medpace are important as they indicate changing near-term business trends, with positive alterations signifying analyst optimism regarding the business and profitability [4] Valuation Metrics - Medpace is currently traded at a Forward P/E ratio of 36.6, which is a premium compared to its industry average Forward P/E of 15.3 [7] - The company has a PEG ratio of 2.04, compared to the Medical Services industry's average PEG ratio of 1.91 [7] Industry Ranking - The Medical Services industry holds a Zacks Industry Rank of 194, positioning it in the bottom 21% of all 250+ industries, indicating weaker performance compared to higher-ranked industries [8]

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Company Performance - Medpace (MEDP) closed at $561.65, reflecting a -1.27% change from the previous day, underperforming the S&P 500's loss of 0.74% [1] - Prior to the latest trading session, Medpace shares had declined by 2.54%, contrasting with the Medical sector's loss of 0.8% and the S&P 500's gain of 0.79% [1] Earnings Forecast - Medpace is expected to report an EPS of $4.18, representing a 13.9% increase from the same quarter last year [2] - Revenue is forecasted to be $681.17 million, indicating a growth of 26.94% compared to the corresponding quarter of the prior year [2] Full Year Estimates - For the full year, analysts project earnings of $14.8 per share and revenue of $2.5 billion, reflecting increases of +17.18% and +18.68% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Medpace are important as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the business outlook [4] - The Zacks Rank system, which incorporates these estimate changes, currently assigns Medpace a rank of 2 (Buy) [6] Valuation Metrics - Medpace has a Forward P/E ratio of 38.45, which is a premium compared to the industry average Forward P/E of 15.5 [7] - The company also has a PEG ratio of 2.15, compared to the Medical Services industry's average PEG ratio of 1.72 [7] Industry Context - The Medical Services industry, which includes Medpace, has a Zacks Industry Rank of 165, placing it in the bottom 34% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]