Core Insights - Medpace reported strong Q2 2025 earnings, exceeding both revenue and earnings forecasts, with GAAP revenue of $603.3 million and GAAP EPS of $3.10 [1][2] - The company raised its revenue and net income guidance for FY2025, reflecting confidence in continued operational progress [10][11] Financial Performance - Q2 2025 GAAP revenue grew by 14.2% year-over-year, surpassing estimates by $64.5 million [5] - GAAP EPS increased by 12.7% compared to Q2 2024, from $2.75 to $3.10 [2] - EBITDA (Non-GAAP) rose by 16.2% year-over-year, with an EBITDA margin of 21.6% [2][6] Business Operations - Medpace specializes in clinical trials for pharmaceutical and biotech firms, providing a full suite of services across all phases of clinical development [3] - The company focuses on therapeutic areas such as oncology, cardiology, metabolic diseases, and infectious diseases, enhancing its competitive positioning [4][8] Market Trends - The backlog conversion rate improved to 21.2%, indicating efficient contract-to-revenue conversion [5] - Net new business awards reached $620.5 million, a 12.6% increase year-over-year, resulting in a book-to-bill ratio of 1.03x [5] Cost and Profitability - Selling, general, and administrative expenses increased by 12.5% compared to Q2 2024, attributed to a larger global footprint [7] - GAAP net income margin decreased from 16.7% to 15.0% due to rising expenses [6] Shareholder Returns - The company repurchased 1.75 million shares for $518.5 million, reducing the diluted share count by 9.2% year-over-year [7] Future Outlook - Management raised FY2025 revenue guidance to a range of $2.42 billion to $2.52 billion, with expected GAAP net income of $405 million to $428 million [10] - Key themes to monitor include new bookings, backlog growth, and the impact of rising costs on future margins [11]