Medpace Q4 revenue beats expectations

Overview

• Clinical research firm's Q4 revenue rose 32%, beating analyst expectations

• Q4 EBITDA increased 20%, though margin decreased compared to last year

• Net new business awards for Q4 rose 39.1%, net book-to-bill ratio at 1.04x

Outlook

• Medpace forecasts 2026 revenue between $2.755 bln and $2.855 bln

• Company expects 2026 GAAP net income between $487 mln and $511 mln

• Medpace anticipates 2026 EBITDA between $605 mln and $635 mln

Result Drivers

• REVENUE GROWTH - Q4 revenue increased 32% to $708.5 mln, driven by backlog conversion rate of 23.6%

• BUSINESS AWARDS - Net new business awards rose 39.1% to $736.6 mln, resulting in net book-to-bill ratio of 1.04x

• NET INCOME MARGIN - Net income margin decreased to 19.1% from 21.8% in the prior year, despite increased net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy."

• Wall Street's median 12-month price target for Medpace Holdings Inc is $567.50, about 4.7% above its February 6 closing price of $542.04

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 36 three months ago

Press Release: ID:nBw4rgplsa

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