Medpace Hldgs — Financial Results
Revenue Jumped 20% in 2025, Driven by Three Key Therapy Areas
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net Revenue | $2,109.1M | $2,530.2M | +$421.2M (+20.0%) |
| Net Income | $404.4M | $451.1M | +$46.7M (+11.6%) |
Revenue grew by a strong 20% year-over-year, with the company crediting rising activity in Metabolic Disease, Oncology, and Central Nervous System trials as the primary drivers. Net income also grew, though at a slower rate than revenue, partly due to higher costs and a rising tax bill. This is a healthy top-line result for a clinical research organization (CRO) that runs trials on behalf of drugmakers.
New Business Wins Are Accelerating, Backlog Remains Solid
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Net New Business Awards | $2,230.0M | $2,646.8M | +$416.8M (+18.7%) |
| Backlog | $2,902.2M | $3,027.2M | +$125.0M (+4.3%) |
Net new business awards — the value of contracts signed or confirmed during the year — rose nearly 19%, suggesting strong demand from pharmaceutical and biotech clients. The backlog (work contracted but not yet completed) now sits at $3.0 billion, with roughly $1.9 billion expected to convert to revenue in 2026 alone. This provides good forward visibility into near-term revenue.
The Company Spent $917 Million Buying Back Its Own Stock
In 2025, the company repurchased nearly 3 million shares for $912.9 million — more than five times the $174.2 million spent on buybacks in 2024. This caused cash on hand to drop from $669.4 million to $497.0 million. Share repurchases reduce the number of shares outstanding, which can increase earnings per share over time, but this was a very aggressive use of capital relative to prior years. The company still has $821.7 million remaining under its repurchase authorization.
Operating Cash Flow Is Strong, Despite the Cash Balance Drop
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Operating Cash Flow | $608.8M | $713.2M | +$104.4M (+17.2%) |
Despite the sharp decline in the cash balance, the underlying business generated $713.2 million in operating cash flow (cash produced by running the business day-to-day), up 17% from the prior year. The cash balance fell purely because of the large buyback program, not because the business is consuming cash. The company carries zero debt.
Interest Income Fell Sharply as Cash Balances Declined
Interest income dropped from $25.0 million in 2024 to $12.8 million in 2025 — roughly halved — as the company held less cash following the buyback program. This is a relatively modest line item but worth noting, as the company has historically benefited from sitting on a large cash pile in a higher interest-rate environment. With less cash and potentially lower rates ahead, this tailwind is fading.