Medpace Holdings Reports 14.2% Revenue Growth to $603.3 Million in Q2 2025

Medpace Holdings, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net revenue reaching $603.3 million, a 14.2% increase from $528.1 million in the same period of 2024. For the first half of 2025, revenue totaled $1.16 billion, up 11.8% from $1.04 billion year-over-year. The company's net income for the quarter was $90.3 million, compared to $88.4 million in the prior year, resulting in a diluted earnings per share of $3.10, up from $2.75. The growth in revenue was primarily driven by increased activity in the Metabolic, Oncology, and Central Nervous System therapeutic areas.

Operating expenses also rose, with total operating expenses for the second quarter amounting to $477.0 million, a 12.8% increase from $423.0 million in the previous year. Direct service costs, which include employee compensation and reimbursed out-of-pocket expenses, increased by 13.1% to $423.3 million. Selling, general, and administrative expenses rose by 12.6% to $46.7 million, reflecting higher personnel costs to support the company's growth. The increase in expenses was attributed to the expansion of service activities and higher reimbursed costs associated with clinical trials.

In terms of operational developments, Medpace's employee count reached approximately 6,000 across 44 countries as of June 30, 2025. The company reported a backlog of $2.87 billion, a slight decrease of 1.8% from $2.92 billion a year earlier, with about $1.74 billion expected to convert to revenue within the next twelve months. The company also executed a substantial stock repurchase program, repurchasing 2.95 million shares for $908.4 million in the first half of 2025, with remaining authorization under the program totaling $826.3 million.

Looking ahead, Medpace anticipates continued growth driven by its strategic focus on expanding its service offerings and geographic reach. The company plans to invest in operational growth, including capital expenditures and potential acquisitions, while maintaining a strong liquidity position with $46.3 million in cash and cash equivalents as of June 30, 2025. The company has also amended its credit facility, which now allows for borrowing up to $10 million, reflecting a strategic shift in its financing approach. Medpace's management remains optimistic about future performance, citing a strong pipeline of projects and a favorable market environment for clinical research services.