Medpace Holdings Exceeds Expectations with 14.2% YoY Revenue Growth

Medpace Holdings reported Q2 CY2025 revenue of $603.3 million, a 14.2% YoY increase, beating analyst estimates. The company lifted its full-year revenue guidance to $2.47 billion, a 12.8% increase, and raised its EPS and EBITDA guidance. Management credited the quarter's outperformance to lower cancellations, improved funding, and an increased mix of faster-executing clinical research projects. The company anticipates sustained revenue and profit momentum due to improved funding conditions and a shift toward faster-burning studies.

Medpace Holdings, Inc. (Nasdaq: MEDP) reported robust financial results for the second quarter of 2025, with revenue increasing by 14.2% year-over-year (YoY) to $603.3 million. This performance exceeded analyst estimates and led the company to raise its full-year revenue guidance to a range of $2.47 billion to $2.52 billion, representing a 12.8% increase over the previous year. Additionally, Medpace raised its earnings per share (EPS) and EBITDA guidance for the full year.

The company's net new business awards totaled $620.5 million in the second quarter, a 12.6% increase from the prior year. This resulted in a net book-to-bill ratio of 1.03x, indicating a healthy balance between new business and revenue. The company's GAAP net income for the quarter was $90.3 million, or $3.10 per diluted share, up from $88.4 million, or $2.75 per diluted share, in the same period last year. The net income margin improved to 15.0% from 16.7% in the prior year, while EBITDA increased to $130.5 million, representing a 16.2% YoY increase.

Management attributed the quarter's strong performance to several factors, including lower cancellations, improved funding conditions, and an increased mix of faster-executing clinical research projects. The company anticipates sustained revenue and profit momentum due to these improved funding conditions and a shift toward faster-burning studies.

Medpace's year-to-date (YTD) revenue for the six months ended June 30, 2025, was $1,161.9 million, representing an 11.8% increase on a reported basis and an 11.7% increase on a constant currency basis compared to the same period last year. The company's YTD GAAP net income was $204.9 million, or $6.79 per diluted share, up from $190.9 million, or $5.96 per diluted share, in the same period last year. The YTD EBITDA was $249.1 million, or 21.4% of revenue, a 9.3% increase on a reported basis and a 10.1% increase on a constant currency basis compared to the same period last year.

Medpace will host a conference call on July 22, 2025, at 9:00 a.m. ET to discuss its second quarter 2025 results. The call can be accessed via webcast at medpace.com.

References:
[1] https://investor.medpace.com/news-releases/news-release-details/medpace-holdings-inc-reports-second-quarter-2025-results