Medpace third-quarter profit rises to $137.5 million as revenue grows 8.5%

Medpace Holdings, Inc. (MEDP) said on Wednesday that third-quarter revenue rose 8.5% to $716.0 million and net income climbed to $137.5 million, a regulatory filing showed.

The company is a clinical contract research organization, or CRO, that provides Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. The company said its full press release was furnished as Exhibit 99.1 to the filing.

Here's how the company did:

• Diluted earnings per share: $4.84 vs. $3.86 a year earlier
• Revenue: $716.0 million vs. $659.9 million a year earlier
• Net income: $137.5 million vs. $111.1 million a year earlier
• EBITDA, or earnings before interest, taxes, depreciation and amortization: $172.1 million vs. $148.4 million a year earlier

Revenue and backlog

On a constant currency basis, which excludes the effect of exchange rates, revenue increased 8.6% in the quarter.

Backlog rose 5.6% to $3,167.2 million from $3,000.6 million a year earlier. Net new business awards were $873.4 million, up 10.6% from $789.6 million in the prior-year period.

The company reported a backlog conversion rate of 23.8% for the quarter.

Costs and profit

Total direct costs were $492.1 million, compared with $463.0 million a year earlier. Selling, general and administrative expenses were $51.8 million, up from $48.1 million.

Operating income was $165.5 million, compared with $141.8 million in the third quarter of 2025. Net income margin was 19.2%, up from 16.8% a year earlier.

EBITDA rose 16.0% to $172.1 million, or 24.0% of revenue, from $148.4 million, or 22.5% of revenue. On a constant currency basis, EBITDA also increased 16.0%.

Nine-month results

Revenue for the first nine months of 2026 was $2,129.9 million, up 16.9% on a reported basis and 16.7% on a constant currency basis.

Net income for the nine months was $382.7 million, or $13.37 per diluted share, compared with $316.0 million, or $10.64 per diluted share, a year earlier.

EBITDA for the nine months was $474.9 million, or 22.3% of revenue, up 19.5% on a reported basis from the prior-year period.

Cash and buybacks

Cash and cash equivalents were $705.3 million at the end of the quarter, up from $497.0 million at the end of 2025. Operating cash flow was $216.6 million in the third quarter.

The company made no share repurchases in the third quarter. The cash flow statement shows $294.8 million of repurchases in the first nine months, compared with $917.4 million a year earlier.

At quarter end, $527.0 million remained under the authorized share repurchase program.

2026 guidance

The company forecasts 2026 revenue of $2.835 billion to $2.855 billion, growth of 12.0% to 12.8% over 2025 revenue of $2.530 billion.

For the full year, GAAP net income is forecast at $514.0 million to $524.0 million, and diluted earnings per share at $17.97 to $18.32. EBITDA is expected at $638.0 million to $652.0 million.

The guidance assumes a tax rate of 19.0% to 19.5%, interest income of $22.9 million and 28.6 million diluted weighted average shares. It excludes any share repurchases made after Sept. 30, 2026. The filing does not say whether these figures changed from earlier guidance.

New repurchase authorization

The Board terminated the existing repurchase authorization effective Oct. 20, 2026. That authorization was set to expire Dec. 31, 2026, and had $527.0 million remaining.

The Board approved a new authorization effective the same day, allowing the company to repurchase up to $1.0 billion of common stock through Dec. 31, 2028, at management's discretion. The company said repurchases will be funded from cash on hand.

Repurchases may be made in open market purchases, privately negotiated transactions, Rule 10b5-1 plans or other transactions. The authorization does not require any minimum purchase and may be modified, suspended or terminated by the Board at any time without notice.

Headcount and call

Medpace employs approximately 6,600 people across 46 countries as of the end of the quarter, the company said.

The company will host a conference call at 9:00 a.m. ET on Thursday to discuss the third-quarter results.