Medpace Holdings Inc
NASDAQ:MEDP
Medpace Holdings Inc
Medpace Holdings Inc., a name renowned in the clinical research sector, operates at the heart of the drug development process. Founded in 1992 by Dr. August Troendle, Medpace carved a niche for itself as a full-service clinical contract research organization (CRO). The essence of its operation lies in managing the complex journey of bringing new pharmaceuticals and medical devices from conception through to approval. Medpace partners with various biopharmaceutical companies to design, conduct, and oversee clinical trials, aligning with regulatory requirements to ensure these products are safe and effective. The company stands out by offering a comprehensive suite of services, including strategic consulting, project management, and the integration of cutting-edge technologies—a holistic approach that often distinguishes it from competitors.
The engine driving Medpace’s profitability is its model of operational excellence fueled by its disciplined and integrated approach. The company generates revenue primarily from the contracts it secures with sponsors for conducting each phase of clinical trials. By closely collaborating with its clients, Medpace ensures tailored solutions that operate under specified timelines and budgets, enhancing client retention and attracting new business. What truly underlines Medpace’s financial success is its ability to deliver high-quality results, evidenced by robust data captured during trials and the attainment of key endpoints. This reputation for quality not only nurtures client trust but also consolidates Medpace's standing as a pivotal player in the CRO industry, securing a sustainable revenue stream and ongoing growth in a competitive landscape.
Medpace Holdings Inc., a name renowned in the clinical research sector, operates at the heart of the drug development process. Founded in 1992 by Dr. August Troendle, Medpace carved a niche for itself as a full-service clinical contract research organization (CRO). The essence of its operation lies in managing the complex journey of bringing new pharmaceuticals and medical devices from conception through to approval. Medpace partners with various biopharmaceutical companies to design, conduct, and oversee clinical trials, aligning with regulatory requirements to ensure these products are safe and effective. The company stands out by offering a comprehensive suite of services, including strategic consulting, project management, and the integration of cutting-edge technologies—a holistic approach that often distinguishes it from competitors.
The engine driving Medpace’s profitability is its model of operational excellence fueled by its disciplined and integrated approach. The company generates revenue primarily from the contracts it secures with sponsors for conducting each phase of clinical trials. By closely collaborating with its clients, Medpace ensures tailored solutions that operate under specified timelines and budgets, enhancing client retention and attracting new business. What truly underlines Medpace’s financial success is its ability to deliver high-quality results, evidenced by robust data captured during trials and the attainment of key endpoints. This reputation for quality not only nurtures client trust but also consolidates Medpace's standing as a pivotal player in the CRO industry, securing a sustainable revenue stream and ongoing growth in a competitive landscape.
Revenue Growth: Medpace reported Q4 2025 revenue of $708.5 million, up 32% year-over-year, and full year 2025 revenue of $2.53 billion, up 20% from 2024.
Elevated Cancellations: Backlog cancellations were the highest in over a year, leading to a lower-than-expected net book-to-bill ratio of 1.04.
Backlog Conversion: 23.6% of beginning backlog was converted in Q4, with $1.9 billion projected to convert to revenue in the next 12 months.
Profitability: Q4 2025 EBITDA was $160.2 million (up 20% YoY), and net income was $135.1 million (up 15.5% YoY); full year EBITDA margin was 22%, down from 22.8% in 2024.
2026 Guidance: Revenue is expected to be $2.755–$2.855 billion, EBITDA $605–$635 million, and EPS $16.68–$17.50 for 2026.
AI Investments: The company is rolling out AI initiatives in 2026 focused on efficiency and data analytics, but does not expect meaningful productivity gains next year.
Headcount: Hiring is expected to accelerate in 2026, with mid- to high single-digit headcount growth projected.
