Medpace Holdings, Inc. (MEDP)

Medpace Holdings, Inc. – Q1 2025 Financial Report

Report Date: April 28, 2025
Period Covered: Three months ended March 31, 2025

Executive Summary

• Net Revenue of $558.6 million, up 9.3% YoY (Q1 2024: $511.0 million)
• Net Income of $114.6 million, up 11.8% YoY (Q1 2024: $102.6 million)
• Diluted EPS of $3.67 vs. $3.20 in Q1 2024
• Operating Cash Flow of $125.8 million
• No borrowings under a $100 million revolving credit facility
• Returned $38.98 million through share repurchases

Profit & Loss Analysis

• Revenue Growth: Driven by strong performance in metabolic (up 43%) and oncology (up 9.8%).
• Cost Control: Total direct costs rose 6.8%, below revenue growth, as labor and reimbursable expenses scaled efficiently.
• Margin Expansion: Operating income increased to $113.5 million (20.3% margin) vs. $104.1 million (20.4% margin) prior year.
• Tax Rate: Effective tax rate lowered by excess tax benefit on share-based compensation.

Balance Sheet & Liquidity

• Cash & Equivalents: $441.4 million as of March 31, 2025 (down from $669.4 million year-end 2024).
• Debt: $0 outstanding; full accordion capacity remains.
• Shareholders’ Equity: $593.6 million (down from $825.5 million) reflecting share repurchases and retained earnings build.

Cash Flow

• Operating: +$125.8 million driven by net income and non-cash stock comp.
• Investing: –$10.0 million primarily capex on facilities and IT.
• Financing: –$346.0 million (share repurchases), +$25.9 million from option exercises.

Pros

• Strong revenue and profit growth across therapeutic areas
• Robust free cash flow generation
• Zero leverage with ample credit availability
• Ongoing share repurchase program supports EPS

Cons

• Reimbursable out-of-pocket costs can be lumpy
• Cash burn from aggressive share buybacks
• Currency exposure on EU-denominated contracts

Outlook

Medpace is on a solid growth trajectory, benefiting from diversified service offerings and strong demand in key therapeutic areas. The clean balance sheet and recurring cash generation provide flexibility for organic expansion, selective bolt-on acquisitions, and continued shareholder returns. Market uncertainties, foreign exchange fluctuations, and elevated project execution costs warrant close monitoring.

Revenue by Therapeutic Area (Q1 2025 vs Q1 2024, in $000s):

• Oncology: 170,476 (155,198)
• Metabolic: 148,015 (103,639)
• Other: 95,836 (108,400)
• Cardiology: 58,279 (55,637)
• CNS: 54,901 (44,136)
• Antiviral/Anti-infective (AVAI): 31,063 (44,034)

Medpace’s financial health remains robust with double-digit growth in both revenue and net income, underpinned by strong cash flow and zero debt. Continued investments in talent and infrastructure support scalable operations, while share repurchases underline confidence in the business model. Potential headwinds include variability in reimbursable expenses, currency movements, and competitive pressure on pricing. The firm is well positioned to capitalize on global clinical trial demand and maintain disciplined capital allocation to enhance long-term shareholder value.