Medpace Holdings Reports 9.3% Revenue Growth to $558.6 Million in Q1 2025

Medpace Holdings, Inc. reported a net revenue of $558.6 million for the first quarter of 2025, marking a 9.3% increase from $511.0 million in the same period of 2024. The company's income from operations rose to $113.5 million, up from $104.1 million year-over-year. Net income for the quarter was $114.6 million, compared to $102.6 million in the prior year, resulting in a diluted earnings per share of $3.67, an increase from $3.20. The growth in revenue was primarily driven by increased activity in the Metabolic, Oncology, and Central Nervous System therapeutic areas.

Total operating expenses increased to $445.0 million from $407.0 million, largely due to higher direct service costs and selling, general, and administrative expenses. Direct service costs rose to $380.2 million, reflecting a $24.3 million increase attributed to higher reimbursed out-of-pocket expenses and personnel costs. Selling, general, and administrative expenses also saw a significant rise, increasing by 31.3% to $57.9 million, primarily due to higher personnel costs associated with the growth in service activities.

In terms of operational metrics, Medpace's employee headcount reached approximately 5,900 across 44 countries as of March 31, 2025. The company reported a backlog of $2.85 billion, a decrease of 2.1% from $2.91 billion a year earlier, with about $1.6 billion expected to convert to revenue over the next twelve months. The company also executed a stock repurchase program, repurchasing 1.2 million shares for $389.8 million during the quarter, with a remaining authorization of $344.8 million under the program.

Looking ahead, Medpace anticipates continued growth driven by its disciplined operating model and strategic focus on full-service clinical development services. The company has also increased its credit facility to $600 million, extending its borrowing capacity to support operational growth and potential acquisitions. Management remains optimistic about the future, emphasizing the importance of maintaining a strong cash position to fund ongoing investments and strategic initiatives.