What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-04-22 compared with 2024-10-22 · 115 added, 145 removed, 356 unchanged (42% of the section changed)

4 unchanged sentences

(Amounts in thousands, except share amounts) As of

September 30,

2025 December 31,

1 unchanged sentence

Cash and cash equivalents $ 441,436 $ 669,436

Accounts receivable and unbilled, net (includes $ 9.9 million and $ 2.4 million with related parties at September 30, 2024 and December 31, 2023, respectively)

311,466 298,400

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

Accounts receivable and unbilled, net (includes $ 2.8 million and $ 4.2 million with related parties at March 31, 2025 and December 31, 2024, respectively)

298,217 296,443

Prepaid expenses and other current assets 81,784 63,350

Total current assets 821,437 1,029,229

8 unchanged sentences

Current liabilities:

Accounts payable (includes $ 0.2 million and $ 3.1 million with related parties at September 30, 2024 and December 31, 2023, respectively)

Accounts payable (includes $ 0.3 million and $ 0.2 million with related parties at March 31, 2025 and December 31, 2024, respectively)

$ 61,318 $ 32,528

Accrued expenses 286,099 307,807

Advanced billings (includes $ 12.8 million and $ 10.1 million with related parties at September 30, 2024 and December 31, 2023, respectively)

Advanced billings (includes $ 15.5 million and $ 14.6 million with related parties at March 31, 2025 and December 31, 2024, respectively)

718,716 710,585

9 unchanged sentences

5,000,000 shares authorized;

no shares issued and outstanding at September 30, 2024 and December 31, 2023

no shares issued and outstanding at March 31, 2025 and December 31, 2024

Common stock - $ 0.01 par-value;

250,000,000 shares authorized at September 30, 2024 and December 31, 2023;

31,081,601 and 30,752,292 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Treasury stock - 70,073 and 70,573 shares at September 30, 2024 and December 31, 2023, respectively

250,000,000 shares authorized at March 31, 2025 and December 31, 2024;

29,836,211 and 30,630,799 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

Treasury stock - 70,073 shares at March 31, 2025 and December 31, 2024

( 12,235 ) ( 12,235 )

Additional paid-in capital 886,883 844,050

Retained earnings (Accumulated deficit) 65,636 ( 221,645 )

(Accumulated deficit) retained earnings ( 269,716 ) 8,167

Accumulated other comprehensive loss ( 11,621 ) ( 14,743 )

6 unchanged sentences

(Amounts in thousands, except per share amounts) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Revenue, net (includes $ 15.5 million with related parties for the three months ended September 30, 2024 and 2023, and $ 39.5 million and $ 44.6 million with related parties for the nine months ended September 30, 2024 and 2023, respectively)

Revenue, net (includes $ 13.8 million and $ 12.8 million with related parties for the three months ended March 31, 2025 and 2024, respectively)

$ 558,570 $ 511,044

8 unchanged sentences

Income from operations 113,523 104,069

Other income (expense), net:

Other income, net:

Miscellaneous (expense) income, net ( 1,816 ) 4,593

Interest income (expense), net 7,528 ( 105 ) 17,113 ( 2,332 )

Total other income (expense), net 6,503 ( 1,707 ) 20,548 ( 4,530 )

Interest income, net 6,463 4,120

Total other income, net 4,647 8,713

Income before income taxes 118,170 112,782

12 unchanged sentences

(Amounts in thousands) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income $ 114,595 $ 102,591

8 unchanged sentences

Treasury Stock

Capital Accumulated Deficit Accumulated

Capital (Accumulated Deficit) Retained Earnings Accumulated

Comprehensive

4 unchanged sentences

Stock options exercised 2 7,658 7,660

Repurchases of common stock ( 7 ) ( 120,991 ) ( 120,998 )

Re-issuance of treasury stock 87 ( 87 ) —

BALANCE — March 31, 2024 $ 310 $ ( 12,235 ) $ 814,649 $ ( 119,141 ) $ ( 12,041 ) $ 671,542

Net income 61,068 61,068

Foreign currency translation 120 120

Stock-based compensation expense 4,906 4,906

Stock options exercised 1 1,695 1,696

Repurchases of common stock ( 1 ) ( 23,991 ) ( 23,992 )

BALANCE — June 30, 2023 $ 306 $ ( 12,322 ) $ 785,292 $ ( 371,022 ) $ ( 11,194 ) $ 391,060

Net income 70,550 70,550

Foreign currency translation ( 1,676 ) ( 1,676 )

Stock-based compensation expense 5,007 5,007

Stock options exercised 1 5,695 5,696

Repurchases of common stock 275 275

BALANCE — September 30, 2023 $ 307 $ ( 12,322 ) $ 795,994 $ ( 300,197 ) $ ( 12,870 ) $ 470,912

Treasury Stock

Capital Retained Earnings (Accumulated Deficit) Accumulated

Capital (Accumulated Deficit) Retained Earnings Accumulated

Comprehensive

4 unchanged sentences

Stock options exercised 4 25,941 25,945

Re-issuance of treasury stock 87 ( 87 ) —

Repurchases of common stock ( 12 ) ( 392,478 ) ( 392,490 )

BALANCE — March 31, 2025 $ 298 $ ( 12,235 ) $ 886,883 $ ( 269,716 ) $ ( 11,621 ) $ 593,609

Net income 88,351 88,351

Foreign currency translation ( 548 ) ( 548 )

Stock-based compensation expense 3,588 3,588

Stock options exercised 666 666

BALANCE — June 30, 2024 $ 310 $ ( 12,235 ) $ 818,903 $ ( 30,790 ) $ ( 12,589 ) $ 763,599

Net income 96,426 96,426

Foreign currency translation 3,413 3,413

Stock-based compensation expense 11,727 11,727

Stock options exercised 1 6,273 6,274

BALANCE — September 30, 2024 $ 311 $ ( 12,235 ) $ 836,903 $ 65,636 $ ( 9,176 ) $ 881,439

See notes to condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands) Nine Months Ended

September 30,

(Amounts in thousands) Three Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

5 unchanged sentences

Noncash lease expense 6,064 5,696

Deferred income tax benefit ( 2,433 ) ( 11,308 )

Deferred income tax provision (benefit) 749 ( 865 )

Other ( 502 ) ( 4,230 )

11 unchanged sentences

Other 7 8,027

Net cash used in investing activities ( 20,746 ) ( 26,632 )

Net cash (used in) provided by investing activities ( 9,987 ) 2,530

CASH FLOWS FROM FINANCING ACTIVITIES:

1 unchanged sentence

Repurchases of common stock ( 371,900 ) —

Proceeds from revolving loan — 105,000

Payments on revolving loan — ( 155,000 )

Net cash provided by (used in) financing activities 14,600 ( 184,165 )

Net cash (used in) provided by financing activities ( 345,966 ) 7,660

EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND

RESTRICTED CASH 2,117 ( 1,306 )

INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 411,451 66,942

(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 228,000 ) 161,561

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 669,436 245,449

1 unchanged sentence

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION —

Acquisition of property and equipment—non-cash $ 2,685 $ 4,704

Share repurchases—non-cash $ 22,343 $ —

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2024

March 31, 2025

(1) Basis of Presentation

14 unchanged sentences

Share Repurchases

In the fourth quarter of 2022, the Board approved a stock repurchase program of up to $ 500.0 million.

The Company did not execute any share repurchases during the three and nine months ended September 30, 2024.

The Company did not execute any share repurchases during the three months ended September 30, 2023.

During the nine months ended September 30, 2023, the Company repurchased 781,068 shares for $ 144.0 million.

As of September 30, 2024, the Company has remaining authorization of $ 308.8 million under the repurchase program.

In 2022, the Board approved a stock repurchase program of up to $ 500.0 million.

In the first quarter of 2025, the Board approved an increase of $ 600.0 million to the Company’s stock repurchase program bringing the total repurchase authorization up to $ 1.1 billion.

During the three months ended March 31, 2025, the Company repurchased 1,193,011 shares for $ 389.8 million.

The Company did not execute any share repurchases during the three months ended March 31, 2024.

As of March 31, 2025, the Company has remaining authorization of $ 344.8 million under the repurchase program.

On April 17, 2025, the Company's Board of Directors approved an increase of $ 1.0 billion to the Company's stock repurchase program.

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

2 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 expects to adopt the standard in the fourth quarter of 2024 by adding additional segment related disclosures to the consolidated financial statement footnotes.

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

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, "Income Taxes (Topic 740):

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

1 unchanged sentence

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.

(2) Net Income Per Share

4 unchanged sentences

The 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 three and nine months ended September 30, 2024 and 2023 (in thousands, except for earnings per share):

The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 (in thousands, except for earnings per share):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Weighted-average shares:

Common shares outstanding 30,387 30,843

RSAs — 21 4 21

Total weighted-average shares 30,387 30,856

8 unchanged sentences

Net income per common share—Diluted $ 3.67 $ 3.20

During the three and nine months ended September 30, 2024, the Company had (in thousands) 5.6 and 80.2 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

During the nine months ended September 30, 2023, the Company had (in thousands) 0.6 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

During the three months ended March 31, 2025 and 2024, the Company had (in thousands) 80.1 and 0 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

(3) Fair Value Measurements

The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value.

This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

This hierarchy

maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

The hierarchy specifies three levels based on the inputs, as follows:

3 unchanged sentences

The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities.

The Company does not have material recurring fair value measurements as of September 30, 2024.

There were no material transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2024 and September 30, 2023.

The Company does not have material recurring fair value measurements as of March 31, 2025 and December 31, 2024.

There were no material transfers between Level 1, Level 2 or Level 3 during the three months ended March 31, 2025 and 2024.

(4) Contract Assets and Contract Liabilities

6 unchanged sentences

Accounts receivable and unbilled, net consisted of the following (in thousands):

September 30,

2025 December 31,

6 unchanged sentences

Advanced billings consisted of the following (in thousands):

September 30,

2025 December 31,

Advanced billings $ 718,716 $ 710,585

As of September 30, 2024 and December 31, 2023, the Company had approximately $ 3.5 billion and $ 2.9 billion of performance obligations remaining to be performed for active projects.

As of March 31, 2025 and December 31, 2024, the Company had approximately $ 3.4 billion and $ 3.5 billion of performance obligations remaining to be performed for active projects.

(5) Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

September 30,

2025 December 31,

8 unchanged sentences

Total intangible assets, net $ 34,130 $ 34,366

As of September 30, 2024, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands):

As of March 31, 2025, estimated amortization expense of the Company’s intangible assets for each of the next four remaining years is as follows (in thousands):

Remainder of 2025

1 unchanged sentence

Accrued expenses consisted of the following (in thousands):

September 30,

2025 December 31,

4 unchanged sentences

(7) Short-term Debt

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 28, 2024, 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 revolving 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 to up to $ 10.0 million and extended the expiration date of 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 %).

The Loan Agreement contains other customary loan terms, representations and warranties, and affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions.

On March 28, 2025, the Company entered into Amendment No.

7 to the Loan Agreement, which extended the expiration date of the revolving credit note to March 31, 2026.

As of 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 %).

As of March 31, 2025 and December 31, 2024, the Company had no indebtedness under the Credit Facility.

On April 18, 2025, the Company entered into Amendment No.

8 to the Loan Agreement, which increased the aggregate principal amount that may be borrowed under the facility’s line of credit to up to $ 600.0 million, adjusted the interest rate charged on the credit facility and extended the expiration date of revolving credit note to April 30, 2027.

The Loan Agreements contain other customary loan terms, representations and warranties, and affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions.

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

5 unchanged sentences

The components of lease expense were as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Operating lease cost $ 8,065 $ 7,865

1 unchanged sentence

Supplemental cash flow information related to the leases was as follows (in thousands):

Nine Months Ended September 30,

Three Months Ended March 31,

Cash paid for amounts included in the measurement of lease liabilities:

3 unchanged sentences

Supplemental balance sheet information related to the leases was as follows (in thousands):

September 30,

2025 December 31,

13 unchanged sentences

Operating leases 5.7 % 5.7 %

Lease payments due related to lease liabilities as of September 30, 2024 were as follows (in thousands):

Lease payments due related to lease liabilities as of March 31, 2025 were as follows (in thousands):

Related Party

13 unchanged sentences

Total $ 89,020 $ 61,329 $ 150,349

As of September 30, 2024, we have additional leases with contractual obligations, which have not yet commenced , including future payments of $ 4.8 million.

As of March 31, 2025, we have an additional lease with contractual obligations, which have not yet commenced , with future payments of $ 0.1 million.

(9) Shareholder’s Equity and Stock-Based Compensation

The Company granted 191,776 awards to employees under the 2016 Incentive Award Plan during the nine months ended September 30, 2024, consisting of 116,626 RSU and 24,650 stock option awards having five year vesting schedules, 500 RSU having four year vesting schedules and 50,000 stock option awards that vested upon issuance.

The Company granted an additional 6,542 stock option awards to non-employee directors under the 2016 Incentive Award Plan during the nine months ended September 30, 2024.

These awards are scheduled to 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 146,064 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2025, consisting of 26,131 RSU and 35,473 stock options having five year vesting schedules and 84,460 stock option awards that vested upon issuance.

Award Activity

The following table sets forth the Company’s stock option activity:

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Stock Options Weighted Average

7 unchanged sentences

The following table sets forth the Company’s RSA/RSU activity:

Nine Months Ended

September 30, 2024

Three Months Ended

March 31, 2025

Outstanding and unvested - beginning of period 365,492

4 unchanged sentences

Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Total direct costs $ 3,027 $ 2,470

2 unchanged sentences

(10) Income Taxes

The Company’s effective income tax rate was 18.8 % and 15.2 % for the three months ended September 30, 2024 and 2023, respectively.

The Company's effective income tax rate was 16.0 % and 16.5 % for the nine months ended September 30, 2024 and 2023, respectively.

The Company’s effective income tax rate for the three months ended September 30, 2024 and the nine months ended September 30, 2024 varied from the U.S.

The Company’s effective income tax rate was 3.0 % and 9.0 % for the three months ended March 31, 2025 and 2024, respectively.

The Company's effective income tax rate for the three months ended March 31, 2025 varied from the U.S.

statutory rate of 21 % primarily due to the impact of the state taxes, which was favorably offset by excess tax benefits recognized from share-based compensation and tax benefits related to Foreign Derived Intangible Income (“FDII”).

2 unchanged sentences

The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions.

The Company cannot predict with certainty the outcome of such proceedings, but it believes that adequate reserves have been recorded and losses already recognized with respect to such proceedings, which were immaterial as of September 30, 2024 and December 31, 2023.

There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions;

however, the Company believes that such potential losses were immaterial as of September 30, 2024.

however, the Company believes that such potential losses were immaterial as of March 31, 2025.

Purchase Commitments

The Company has several minimum purchase commitments for project related supplies totaling $ 15.9 million as of September 30, 2024.

The Company has several minimum purchase commitments for project related supplies totaling $ 17.8 million as of March 31, 2025.

In return for the commitment, Medpace receives preferential pricing.

3 unchanged sentences

The Company periodically extends short term loans or advances to employees, typically upon commencement of employment.

Total receivables as a result of these employee advances of $ 0.3 million at September 30, 2024 and December 31, 2023, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date.

Total receivables as a result of these employee advances of $ 0.3 million existed at March 31, 2025 and December 31, 2024, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date.

Service Agreement

3 unchanged sentences

Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services.

The Company recognized total revenue from LIB of $ 8.3 million and $ 10.1 million during the three months ended September 30, 2024 and 2023, respectively, and $ 18.7 million and $ 33.1 million during the nine months ended September 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of September 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from LIB of $ 7.2 million and $ 7.6 million in the condensed consolidated balance sheets.

In addition, as of September 30, 2024 and December 31, 2023, respectively, the Company had Accounts receivable and unbilled, net from LIB of $ 8.3 million and $ 0.5 million in the condensed consolidated balance sheets.

The Company recognized total revenue from LIB of $ 2.2 million and $ 6.5 million during the three months ended March 31, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations.

As of March 31, 2025 and December 31, 2024 the Company had Advanced billings from LIB of $ 9.7 million and $ 9.5 million, respectively, in the condensed consolidated balance sheets.

In addition, as of March 31, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from LIB of $ 1.5 million and $ 2.8 million, respectively, in the condensed consolidated balance sheets.

CinRX Pharma, subsidiaries and affiliates (“CinRx”)

1 unchanged sentence

The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services.

The Company recognized total revenue from CinRx of $ 7.2 million and $ 5.3 million during the three months ended September 30, 2024 and 2023, respectively, and $ 20.8 million and $ 11.4 million during the nine months ended September 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of September 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from CinRx of $ 5.6 million and $ 2.5 million in the condensed consolidated balance sheets.

As of September 30, 2024 and December 31, 2023 the Company had Accounts receivable and unbilled, net from CinRx of $ 1.6 million and $ 1.9 million, respectively, in the condensed consolidated balance sheets.

In addition, as of September 30, 2024 and December 31, 2023 the Company had Prepaid expenses and other current assets with CinRx of less than $ 0.1 million and $ 0.2 million, respectively, in the condensed consolidated balance sheets.

The Summit Hotel (“The Summit”)

The Summit Hotel, located on the Medpace campus, is owned by the chief executive officer, and managed by an unrelated hospitality management entity.

Medpace incurs travel lodging and meeting expenses at The Summit.

Medpace incurred expenses of $ 0.1 million during the three months ended September 30, 2024 and 2023, and $ 0.3 million during the nine months ended September 30, 2024 and 2023 at The Summit.

The Company recognized total revenue from CinRx of $ 11.7 million and $ 6.3 million during the three months ended March 31, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations.

As of March 31, 2025 and December 31, 2024 the Company had Advanced billings from CinRx of $ 5.8 million and $ 5.2 million, respectively, in the condensed consolidated balance sheets.

As of March 31, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from CinRx of $ 1.3 million and $ 1.4 million, respectively, in the condensed consolidated balance sheets.

Leased Real Estate

6 unchanged sentences

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

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.7 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 2.1 million and $ 2.0 million, respectively.

Operating lease cost recognized for the three months ended March 31, 2025 and 2024 was $ 0.7 million.

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

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 18.1 million and $ 19.3 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 1.6 million and $ 16.9 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at March 31, 2025 and December 31, 2024 were $ 17.2 million and $ 17.6 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at March 31, 2025 were $ 1.7 million and $ 16.1 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2024 were $ 1.6 million and $ 16.5 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

6 unchanged sentences

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

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 1.5 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 4.3 million.

Operating lease cost recognized for the three months ended March 31, 2025 and 2024 was $ 1.4 million.

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

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 50.6 million and $ 51.9 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 1.5 million and $ 62.4 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at March 31, 2025 and December 31, 2024 were $ 49.7 million and $ 50.2 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at March 31, 2025 were $ 1.6 million and $ 61.6 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2024 were $ 1.5 million and $ 62.0 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

4 unchanged sentences

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

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.6 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 1.9 million.

Operating lease cost recognized for the three months ended March 31, 2025 and 2024 was $ 0.6 million.

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

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 6.9 million and $ 8.5 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 2.2 million and $ 4.8 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at March 31, 2025 and December 31, 2024 were $ 5.9 million and $ 6.4 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at March 31, 2025 were $ 2.2 million and $ 3.6 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2024 were $ 2.2 million and $ 4.2 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

1 unchanged sentence

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.

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.

1 unchanged sentence

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

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.7 million and $ 0.3 million, respectively.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 2.2 million and $ 0.8 million, respectively.

Operating lease cost recognized for the three months ended March 31, 2025 and 2024 was $ 0.7 million.

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

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 1.4 million and $ 3.4 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 0.9 million and $ 1.8 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at March 31, 2025 and December 31, 2024 were $ 0.0 million and $ 0.7 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at March 31, 2025 were $ 1.0 million and $ 1.3 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed 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 condensed consolidated balance sheets.

4 unchanged sentences

The Aircraft Management Company also makes the private aviation charter aircraft available to third parties.

The Company incurred travel expenses of $ 0.4 million and $ 0.7 million during the three months ended September 30, 2024 and 2023, respectively, and $ 1.4 million and $ 1.5 million during the nine months ended September 30, 2024 and 2023, respectively, related to these travel services.

The Company incurred travel expenses of $ 0.4 million and $ 0.3 million during the three months ended March 31, 2025 and 2024, respectively, related to these travel services.

These travel expenses are recorded in Selling, general and administrative in the Company’s condensed consolidated statements of operations.

As of September 30, 2024 and December 31, 2023, the Company had Accounts payable to the Aircraft Management Company of $ 0.1 million and $ 0.4 million, respectively, in the condensed consolidated balance sheets.

(13) Entity Wide Disclosures

As of March 31, 2025 and December 31, 2024, the

Company had Accounts payable to the Aircraft Management Company of $ 0.2 million in the condensed consolidated balance sheets.

(13) Segment Disclosures

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

Three Months Ended

Revenue, net $ 558,570 $ 511,044

Operating expenses:

Direct service costs, excluding depreciation and amortization - Employee compensation 143,927 138,521

Direct service costs, excluding depreciation and amortization - Other segment items (a) 33,889 32,971

Reimbursed out-of-pocket expenses 202,404 184,410

Total direct costs 380,220 355,902

Selling, general and administrative 57,897 44,081

Depreciation 6,694 6,631

Amortization 236 361

Total operating expenses 445,047 406,975

Income from operations 113,523 104,069

Other income, net:

Miscellaneous (expense) income, net ( 1,816 ) 4,593

Interest income, net 6,463 4,120

Total other income, net 4,647 8,713

Income before income taxes 118,170 112,782

Income tax provision 3,575 10,191

Segment net income $ 114,595 $ 102,591

Reconciliation of profit or loss

Adjustments and reconciling items — —

Condensed consolidated net income $ 114,595 $ 102,591

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

Revenue by Category

The following table disaggregates our revenue by major source (in thousands):

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Therapeutic Area

7 unchanged sentences

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-Q

Item 1. Financial Statements