What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-02-11 compared with 2024-02-13 · 101 added, 63 removed, 875 unchanged (16% of the section changed)

91 unchanged sentences

296,443 298,400

Prepaid expenses and other current assets (includes $ 0.3 million with related parties at December 31, 2023)

Prepaid expenses and other current assets (includes $ 0.1 million and $ 0.3 million with related parties at December 31, 2024 and 2023, respectively)

63,350 49,979

14 unchanged sentences

710,585 559,860

Short-term debt — 50,000

Other current liabilities (includes $ 12.5 million with related parties at December 31, 2022)

40,441 47,547

Other current liabilities 53,633 40,441

Total current liabilities 1,104,553 925,131

14 unchanged sentences

Additional paid-in capital 844,050 802,681

Accumulated deficit ( 221,645 ) ( 359,827 )

Retained earnings (accumulated deficit) 8,167 ( 221,645 )

Accumulated other comprehensive loss ( 14,743 ) ( 10,072 )

19 unchanged sentences

Income from operations 446,870 336,825 278,697

Other (expense) income, net:

Miscellaneous (expense) income, net ( 655 ) 7,068 3,342

Interest expense, net ( 488 ) ( 2,905 ) ( 105 )

Total other (expense) income, net ( 1,143 ) 4,163 3,237

Other income (expense), net:

Miscellaneous income (expense), net 4,056 ( 655 ) 7,068

Interest income (expense), net 24,996 ( 488 ) ( 2,905 )

Total other income (expense), net 29,052 ( 1,143 ) 4,163

Income before income taxes 475,922 335,682 282,860

25 unchanged sentences

Stock Additional

Capital (Accumulated

Earnings Accumulated

Capital Retained Earnings (Accumulated

Deficit) Accumulated

Comprehensive

5 unchanged sentences

Repurchases of common stock ( 57 ) ( 14,243 ) ( 833,549 ) ( 847,849 )

Retirement of treasury stock 5,427 ( 5,427 ) —

BALANCE — December 31, 2022 $ 309 $ ( 12,497 ) $ 770,794 $ ( 359,827 ) $ ( 12,392 ) $ 386,387

4 unchanged sentences

Repurchases of common stock ( 8 ) ( 144,453 ) ( 144,461 )

Retirement of treasury stock 5,427 ( 5,427 ) —

Re-issuance of treasury stock 175 ( 175 ) —

BALANCE — December 31, 2023 $ 308 $ ( 12,322 ) $ 802,681 $ ( 221,645 ) $ ( 10,072 ) $ 558,950

49 unchanged sentences

Acquisition of property and equipment—non-cash $ 4,984 $ 5,254 $ 7,838

Share repurchases—non-cash $ 4,347 $ — $ —

See notes to consolidated financial statements.

14 unchanged sentences

For the year ended December 31, 2022, the Company repurchased 5,463,244 shares for $ 800.5 million under this repurchase program.

For the year ended December 31, 2021, the Company repurchased 377,783 shares for $ 62.1 million.

As of June 30, 2022, the Company completed all authorized share repurchases under this repurchase program.

2 unchanged sentences

For the year ended December 31, 2023, the Company repurchased 781,068 shares for $ 144.0 million under the new repurchase program.

For the year ended December 31, 2022, the Company repurchased 228,247 shares for $ 47.2 million under the new repurchase program.

As of December 31, 2024, we have remaining authorization of $ 134.6 million under the new repurchase program.

As of February 6, 2025, the Company's Board of Directors approved an increase of $ 600.0 million to the Company's new stock repurchase program.

Repurchases under the share repurchase programs are executed in the open market or negotiated transactions under trading plans established pursuant to Rule 10b5-1.

The Company constructively retires the repurchased shares associated with these approved share repurchase programs, except for a small portion which were retained as Treasury Shares on the consolidated statements of shareholders' equity.

Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s consolidated balance sheets.

Retired share repurchase amounts paid in excess of par value are reflected within Retained earnings/Accumulated deficit in the Company’s consolidated balance sheets.

The repurchase programs may be suspended or discontinued at any time without notice .

10 unchanged sentences

As part of this full service approach, the Company utilizes centralized systems, customer interface technology, support functions and processes that cross service offerings and align resources to deliver efficient clinical trial services.

Given the full service approach, the chief executive officer, who is the chief operating decision maker (“CODM”) assesses the allocation of resources based on key metrics including revenue, backlog, and net awards by service offering and consolidated profitability and consolidated cash flows.

Given the full service approach, the chief executive officer, who is the chief operating decision maker (“CODM”) assesses the allocation of resources based on consolidated net income, which is used to assess performance of the Company, monitor actual results, establish management’s compensation and allocate Company resources, including deciding whether to reinvest profits into the Company.

Based on the Company’s full service model, internal management and reporting structure, and key metrics used by the CODM to make resource allocation decisions, management has determined that the Company’s operations consist of a single operating segment.

22 unchanged sentences

To assist with the estimation of costs expected at completion over the life of a project, regular contract reviews are performed in which performance to date is compared to the most current estimate to complete assumptions.

The reviews include an assessment of costs incurred to date compared to expectations based on budget assumptions and other

circumstances specific to the project.

The reviews include an assessment of costs incurred to date compared to expectations based on budget assumptions and other circumstances specific to the project.

The total estimated costs necessary to complete is updated and any revisions to the existing cost estimate results in cumulative adjustments to the amount of revenue recognized in the period in which the revisions are identified.

26 unchanged sentences

As of December 31, 2024 and 2023, the Company had approximately $ 3.5 billion and $ 2.9 billion of performance obligations remaining to be performed for active projects.

The Company expects to recognize approximately 43 % of these remaining performance obligations as revenue over the next twelve months , and the remaining balance thereafter over the duration of the customer contracts.

Concentration of Credit Risk

22 unchanged sentences

If it does not appear more likely than not that the full value of a deferred tax asset will be realized, the Company records a valuation allowance against the deferred tax asset, with an offsetting charge to the Company’s income tax provision or benefit.

The value of the Company’s deferred tax assets is estimated based on, among other things, the Company’s ability to generate a sufficient level of future taxable income.

The value of the Company’s deferred tax assets is estimated based on, among other things, the Company’s ability to generate a sufficient

level of future taxable income.

In estimating future taxable income, the Company has considered both positive and negative evidence, such as historical and forecasted results of operations, and has considered the implementation of prudent and feasible tax planning strategies.

2 unchanged sentences

Refer to Note 11 for further information regarding this assertion.

The Company follows accounting guidance related to accounting for uncertainty in income taxes which requires significant judgment in determining what constitutes an individual tax position as well as assessing the possible outcome of each tax

Changes in judgments as to recognition or measurement of tax positions can materially affect the estimate of the effective tax rate, and, consequently, the Company’s consolidated financial results.

23 unchanged sentences

This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares.

The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect.

Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2024, 2023 and 2022 (in thousands, except for earnings per share):

3 unchanged sentences

Common shares outstanding 30,957 30,722 32,388

RSAs 21 21 90

Total weighted-average shares 30,960 30,743 32,409

21 unchanged sentences

Cash and cash equivalents, including restricted cash, are invested in demand deposits and money market funds, all of which have an original maturity of three months or less.

Restricted cash consists of customer funds received in advance and subject to specific restrictions, as well as amounts placed in escrow for contingent payments resulting from acquisitions or other contractual arrangements.

Restricted cash consists of customer funds received in advance and

subject to specific restrictions, as well as amounts placed in escrow for contingent payments resulting from acquisitions or other contractual arrangements.

Accounts Receivable and Unbilled, Net

68 unchanged sentences

Government incentives are recorded in accordance with their purpose, net of fees incurred to monetize the benefit, as a reduction of expense within Direct service costs, excluding depreciation and amortization and Selling, general and administrative in the consolidated statements of operations.

The Company recognized government assistance income, net of $ 15.5 million and $ 15.4 million during the years ended December 31, 2023 and 2022, respectively.

The Company recognized government assistance income, net of $ 20.7 million, $ 15.5 million and $ 15.4 million during the years ended December 31, 2024, 2023 and 2022, respectively.

Government assistance receivables are recorded in the consolidated balance sheets based on the expected timing of monetizing the benefit.

1 unchanged sentence

The Company recorded receivables related to government assistance programs at December 31, 2024 of $ 24.1 million in Prepaid expenses and other current assets and $ 12.7 million in Other assets , respectively.

Additionally, the Company recorded a reduction to Property and equipment, net of $ 2.8 million and Other long-term liabilities related to leases not yet commenced of $ 6.3 million as of December 31, 2024, respectively.

The Company recorded receivables related to government assistance programs at December 31, 2023 of $ 9.5 million in Prepaid expenses and other current assets and $ 12.2 million in Other assets, respectively.

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" which requires entities to enhance disclosures around segment reporting.

The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company adopted the standard retrospectively in the fourth quarter of 2024 with additional disclosure in the notes to consolidated financial statements footnote 2 within Reportable Segments and footnote 15.

In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832):

4 unchanged sentences

Recently Issued Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" which requires entities to enhance disclosures around segment reporting.

The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures" which requires entities to enhance disclosures around income taxes.

The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The guidance is effective for annual

periods beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses" to improve disclosures by providing more detailed information about the types of expenses in commonly presented expense captions.

The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

CONTRACT ASSETS AND CONTRACT LIABILITIES

12 unchanged sentences

Advanced billings represents cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized.

During the year ended December 31, 2023, the Company recognized approximately $ 396.3 million of revenue that was included in the Advanced billings balance at the beginning of the year.

During the years ended December 31, 2024 and 2023, the Company recognized approximately $ 498.5 million and $ 396.3 million, respectively, of revenue that was included in the Advanced billings balance at the beginning of the year.

Advanced billings consisted of the following at December 31 (in thousands):

33 unchanged sentences

Total intangible assets, net $ 34,366 $ 35,809

As of December 31, 2023, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands):

As of December 31, 2024, estimated amortization expense of the Company’s intangible assets for each of the next four remaining years is as follows (in thousands):

ACCRUED EXPENSES

5 unchanged sentences

SHORT-TERM DEBT

Debt consisted of the following at December 31 (in thousands):

Credit facility $ — $ 50,000

Short-term debt $ — $ 50,000

The estimated fair value of the Company’s debt based on Level 2 inputs using the market approach, which is primarily based on rates at which the debt is traded among financial institutions, approximates the carrying value as of December 31, 2022.

On September 30, 2019 (the “Closing Date”), the Company obtained an unsecured credit facility in an aggregate principal amount up to $ 50.0 million (as amended from time to time, the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower (the “Borrower”), and Medpace IntermediateCo, Inc., as guarantor (the “Guarantor”).

On September 30, 2019 (the “Closing Date”), the Company obtained an unsecured credit facility (as amended from time to time, the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower (the “Borrower”), and Medpace IntermediateCo, Inc., as guarantor (the “Guarantor”).

On the Closing Date, the Borrower and lender entered into a Loan Agreement (as it may be amended from time to time, the “Loan Agreement”) providing for the Credit Facility, and the Guarantor executed a Guaranty Agreement providing for its guarantee of the payment and performance of the obligations under the Loan Agreement.

On March 31, 2023, the Company entered into Amendment No.

4 to the Loan Agreement, which increased the aggregate principal amount that may be borrowed under the facility’s line of credit to up to $ 250.0 million.

On March 31, 2023, the Company entered into Amendment No.

5 to the Loan Agreement, which changed the aggregate principal amount that may be borrowed under the facility's line of credit to up to $ 150.0 million, adjusted the interest rate and fee charged on the credit facility and extended the expiration date of resolving credit note to March 29, 2024.

On March 28, 2024, the Company entered into Amendment No.

6 to the Loan Agreement, which changed the aggregate principal amount that may be borrowed under the facility's line of credit up to $ 10.0 million and extended the expiration date of the revolving credit note to March 31, 2025.

The Credit Facility bears interest at a rate of the sum of The Secured Overnight Financing Rate (SOFR) plus 125 basis points ( 1.25 %) or the highest of the Prime Rate, the sum of the Overnight Bank Funding Rate plus 50 basis points ( 0.50 %) and the sum of Daily Simple SOFR plus 100 basis points ( 1.00 %).

1 unchanged sentence

The Loan Agreement contains certain events of default, including, among others, non-payment of principal or interest and breach of the covenants.

As of December 31, 2023, there were less than $ 0.1 million in letters of credit outstanding related to certain operating lease obligations, which are secured by the Credit Facility.

The Company enters into leases for real estate and equipment.

44 unchanged sentences

Total $ 90,569 $ 58,954 $ 149,523

As of December 31, 2023, we have several additional leases with contractual obligations, which have not yet commenced, with future payments of $ 2.7 million.

SHAREHOLDERS’ EQUITY

8 unchanged sentences

Option prices are generally expected to be set at the market price of the Company’s common stock at the date of grant and option terms are not expected to exceed ten years .

The Company granted 206,893 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2024, consisting of 131,156 RSU and 24,650 stock option awards having five year vesting schedules, 1,087 RSU having four year vesting schedules and 50,000 stock option awards that vested upon issuance.

The Company granted an additional 674 RSU that vest in four approximately equal installments on March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025, and 6,542 stock option awards to non-employee directors under the 2016 Incentive Award Plan, during the year ended December 31, 2024.

These stock option awards will vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date.

The Company granted 47,238 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2023, consisting of 45,988 RSU and 1,250 stock option awards having four year vesting schedules.

4 unchanged sentences

The Company granted 374,235 awards to employees under the 2016 Incentive Award Plan during the year ended December 31, 2021, consisting of 74,725 RSU and 205,086 stock option awards vesting after 4 years and six months, 27,854 RSU and 9,000 stock option awards vesting after four years , and 57,570 stock option awards vesting after two years .

The Company granted an additional 10,932 stock option awards to non-employee directors under the 2016 Incentive Award Plan, during the year ended December 31, 2021.

These awards will vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date.

The 2016 Plan expires in 2026, except for awards then outstanding, and is administered by the Board.

1 unchanged sentence

The Company satisfies stock option exercises and vested stock awards with treasury shares or newly issued shares.

Shares available for future stock compensation grants under the 2016 Plan totaled 2.3 million at December 31, 2023 and 2022, respectively.

Shares available for future stock compensation grants under the 2016 Plan totaled 2.1 million and 2.3 million at December 31, 2024 and 2023, respectively.

Equity Awards

139 unchanged sentences

Net deferred tax asset (liability) $ 98,557 $ 72,031

The Company has foreign operating loss carryforwards for which a deferred tax asset of less than $0.1 million has been established as of December 31, 2023.

The Company has foreign operating loss carryforwards for which a deferred tax asset of $ 0.1 million has been established as of December 31, 2024.

The Company does not have a valuation allowance against this deferred tax asset as of December 31, 2024 based upon its assessment that it is more likely than not that this amount will be realized.

The ultimate realization of this tax benefit is dependent upon the generation of sufficient operating income in the respective tax jurisdictions.

The foreign net operating loss carryforwards will expire in 2027 and 2028 if not utilized.

The foreign net operating loss carryforwards will expire in 2028 if not utilized.

Annual activity related to the Company’s valuation allowance is as follows (in thousands):

30 unchanged sentences

The commitments expire at various times through 2029.

MISCELLANEOUS (EXPENSE) INCOME, NET

Miscellaneous (expense) income, net consisted of the following (in thousands):

MISCELLANEOUS INCOME (EXPENSE), NET

Miscellaneous income (expense), net consisted of the following (in thousands):

Year Ended December 31,

2 unchanged sentences

Other income 4,552 1,274 3,209

Miscellaneous (expense) income, net $ ( 655 ) $ 7,068 $ 3,342

Miscellaneous income (expense), net $ 4,056 $ ( 655 ) $ 7,068

RELATED PARTY TRANSACTIONS

10 unchanged sentences

In addition, the Company had Accounts receivable and unbilled, net from LIB of $ 2.8 million and $ 0.5 million in the consolidated balance sheets at December 31, 2024 and 2023, respectively.

The Company had Other current liabilities with LIB of $ 12.5 million in the consolidated balance sheets at December 31, 2022.

CinRX Pharma, subsidiaries and affiliates (“CinRx”)

4 unchanged sentences

As of December 31, 2024 and 2023 the Company had Accounts receivable and unbilled, net from CinRx of $ 1.4 million and $ 1.9 million in the consolidated balance sheets, respectively.

The Company had Prepaid expenses and other current assets with CinRX of $ 0.2 million in the consolidated balance sheets at December 31, 2023.

Certain affiliates of CinRx included in previous reported quarters are no longer disclosed due to changes in the affiliate relationship.

The Company had Prepaid expenses and other current assets with CinRX of $ 0.1 million and $ 0.2 million in the consolidated balance sheets at December 31, 2024 and 2023, respectively.

Certain affiliates of CinRx included in previous reported periods are no longer disclosed due to changes in the affiliate relationship.

The Summit Hotel (“The Summit”)

10 unchanged sentences

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the years ended December 31, 2023, 2022 and 2021 was $ 2.6 million, $ 2.3 million and 2.1 million, respectively, and was allocated between Total direct costs, and Selling, general and administrative in the consolidated statements of operations.

Operating lease cost recognized for the years ended December 31, 2024, 2023 and 2022 was $ 2.7 million, $ 2.6 million and 2.3 million, respectively.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations.

The Operating lease right-of-use assets at December 31, 2024 and 2023 were $ 17.6 million and $ 19.3 million in the consolidated balance sheets, respectively.

13 unchanged sentences

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 1.3 million and $ 63.5 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets.

The Company entered into two multi-year lease agreements governing the occupancy of space of two buildings in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family.

The Company assumed occupancy in 2012 and the leases expire in 2027 with the Company having one 10 -year option to extend the lease term.

The Company pays rent, taxes, insurance, and maintenance expenses that arise

from the use of the property.

The Company entered into a multi-year lease agreement governing the occupancy of office space in a building in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family.

The Company assumed occupancy in 2012 and the lease expires in 2027 with the Company having one

10 -year option to extend the lease term.

The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property.

Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index.

The Company has determined that the leases are operating leases.

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the years ended December 31, 2024, 2023 and 2022 was $ 2.5 million, respectively.

The lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations.

The Operating lease right-of-use assets at December 31, 2024 and 2023 were $ 6.4 million and $ 8.5 million, respectively, in the consolidated balance sheets.

1 unchanged sentence

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 2.1 million and $ 6.4 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets.

The Company entered into a multi-year lease agreement governing the occupancy of office space in a building in Cincinnati, Ohio with an entity that is wholly owned by the Company's chief executive officer and certain members of his immediate family.

The Company assumed occupancy in 2012 and the lease expires in 2027 with the Company having one 10 -year option to extend the lease term.

In the first quarter of 2024, the Company reduced the lease term in connection with a plan to replace the leased office beginning in early 2025.

The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property.

Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index.

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the years ended December 31, 2024, 2023 and 2022 was $ 2.9 million, $ 1.1 million and $ 1.1 million , respectively.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the consolidated statements of operations.

The Operating lease right-of-use assets at December 31, 2024 and 2023 were $ 0.7 million and $ 3.4 million, respectively, in the consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2024 were $ 0.9 million and $ 1.5 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 0.9 million and $ 2.5 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the consolidated balance sheets.

Travel Services

6 unchanged sentences

As of December 31, 2024 and 2023, the Company had Accounts payable to the Aircraft Management Company of $ 0.2 million and $ 0.4 million, respectively, in the consolidated balance sheets.

ENTITY WIDE DISCLOSURES

SEGMENT DISCLOSURES

Information about the reportable segment, significant segment expenses and a reconciliation to consolidated net income is as follows (in thousands):

Year Ended December 31,

2024 2023 2022

Revenue, net $ 2,109,054 $ 1,885,842 $ 1,459,996

Operating expenses:

Direct service costs, excluding depreciation and amortization - Employee compensation 545,417 499,528 410,511

Direct service costs, excluding depreciation and amortization - Other segment items (a) 136,678 138,721 124,376

Reimbursed out-of-pocket expenses 770,654 723,088 492,671

Total direct costs 1,452,749 1,361,337 1,027,558

Selling, general and administrative 180,184 161,352 131,400

Depreciation 27,808 24,129 18,989

Amortization 1,443 2,199 3,352

Total operating expenses 1,662,184 1,549,017 1,181,299

Income from operations 446,870 336,825 278,697

Other income (expense), net:

Miscellaneous income (expense), net 4,056 ( 655 ) 7,068

Interest income (expense), net 24,996 ( 488 ) ( 2,905 )

Total other income (expense), net 29,052 ( 1,143 ) 4,163

Income before income taxes 475,922 335,682 282,860

Income tax provision 71,536 52,872 37,492

Segment net income $ 404,386 $ 282,810 $ 245,368

Reconciliation of profit or loss

Adjustments and reconciling items — — —

Consolidated net income $ 404,386 $ 282,810 $ 245,368

(a) Direct service costs, excluding depreciation and amortization - Other segment items includes costs related to inventory, leases, project subcontractors and other direct service costs.

Operations By Geographic Location

2 unchanged sentences

For the years ended December 31, 2024, 2023 and 2022, total revenue attributable to the U.S.

represented approximately 98 %, 98 % and 97 %, respectively, of total consolidated total revenue.

represented approximately 98 %, respectively, of total consolidated total revenue.

The following table summarizes property and equipment, net by geographic region and is further broken down to show countries which account for 10% or more of total as of December 31, if any (in thousands):

9 unchanged sentences

The following table disaggregates the Company’s revenue by major source (in thousands):

Years Ended December 31,

Year Ended December 31,

2024 2023 2022

1 unchanged sentence

Oncology $ 651,237 $ 587,097 $ 467,796

Other 404,844 296,914 267,415

Metabolic 457,542 376,842 244,682

Other 431,384 404,844 296,914

Cardiology 230,454 193,690 174,634

AVAI 163,312 118,031 110,976

Central Nervous System 181,977 160,057 157,939

AVAI 156,460 163,312 118,031

Total revenue $ 2,109,054 $ 1,885,842 $ 1,459,996

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data