What changed in this filing

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Item 1. Financial Statements

2025-07-22 compared with 2025-04-22 · 114 added, 77 removed, 394 unchanged (33% of the section changed)

7 unchanged sentences

Cash and cash equivalents $ 46,330 $ 669,436

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)

Accounts receivable and unbilled, net (includes $ 2.3 million and $ 4.2 million with related parties at June 30, 2025 and December 31, 2024, respectively)

377,921 296,443

10 unchanged sentences

Current liabilities:

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

Accounts payable (includes $ 0.1 million and $ 0.2 million with related parties at June 30, 2025 and December 31, 2024, respectively)

$ 43,275 $ 32,528

Accrued expenses 323,505 307,807

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

Advanced billings (includes $ 15.1 million and $ 14.6 million with related parties at June 30, 2025 and December 31, 2024, respectively)

808,783 710,585

9 unchanged sentences

5,000,000 shares authorized;

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

no shares issued and outstanding at June 30, 2025 and December 31, 2024

Common stock - $ 0.01 par-value;

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

250,000,000 shares authorized at June 30, 2025 and December 31, 2024;

28,088,626 and 30,630,799 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Treasury stock - 70,073 shares at June 30, 2025 and December 31, 2024

( 12,235 ) ( 12,235 )

9 unchanged sentences

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

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

June 30, Six Months Ended

2025 2024 2025 2024

Revenue, net (includes $ 16.9 million and $ 11.2 million with related parties for the three months ended June 30, 2025 and 2024, respectively, and $ 30.7 million and $ 24.0 million with related parties for the six months ended June 30, 2025 and 2024, respectively)

$ 603,311 $ 528,104 $ 1,161,881 $ 1,039,148

Operating expenses:

7 unchanged sentences

Income from operations 126,335 105,150 239,858 209,219

Other income, net:

Other (expense) income, net:

Miscellaneous (expense) income, net ( 2,875 ) ( 133 ) ( 4,691 ) 4,460

Interest income, net 1,078 5,465 7,541 9,585

Total other income, net 4,647 8,713

Total other (expense) income, net ( 1,797 ) 5,332 2,850 14,045

Income before income taxes 124,538 110,482 242,708 223,264

12 unchanged sentences

(Amounts in thousands) Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Net income $ 90,260 $ 88,351 $ 204,855 $ 190,942

17 unchanged sentences

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

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

Treasury Stock

8 unchanged sentences

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

Net income 90,260 90,260

Foreign currency translation 5,967 5,967

Stock-based compensation expense 5,951 5,951

Stock options exercised 340 340

Repurchases of common stock ( 17 ) ( 523,759 ) ( 523,776 )

BALANCE — June 30, 2025 $ 281 $ ( 12,235 ) $ 893,174 $ ( 703,215 ) $ ( 5,654 ) $ 172,351

See notes to condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands) Three Months Ended

(Amounts in thousands) Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

19 unchanged sentences

Other 100 8,108

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

Net cash used in investing activities ( 16,007 ) ( 10,260 )

CASH FLOWS FROM FINANCING ACTIVITIES:

7 unchanged sentences

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 46,330 $ 510,894

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION —

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

See notes to condensed consolidated financial statements.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2025

June 30, 2025

(1) Basis of Presentation

14 unchanged sentences

Share Repurchases

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.

In 2022, the Company’s Board of Directors (“Board”) approved a stock repurchase program of up to $ 500.0 million.

In the first and second quarters of 2025, the Board approved increases of $ 600.0 million and $ 1.0 billion, respectively, to the Company’s stock repurchase program bringing the total repurchase authorization up to $ 2.1 billion.

During the three and six months ended June 30, 2025, the Company repurchased 1,754,264 shares and 2,947,275 shares for $ 518.5 million and $ 908.4 million, respectively.

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

As of June 30, 2025, the Company has remaining authorization of $ 826.3 million under the 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.

7 unchanged sentences

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.

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.

5 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 months ended March 31, 2025 and 2024 (in thousands, except for earnings per share):

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except for earnings per share):

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Weighted-average shares:

10 unchanged sentences

Net income per common share—Diluted $ 3.10 $ 2.75 $ 6.79 $ 5.96

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.

During the three and six months ended June 30, 2025, the Company had (in thousands) 205.3 and 198.0 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.

During the six months ended June 30, 2024, the Company had (in thousands) 4.8 stock options 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

7 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 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.

The Company does not have material recurring fair value measurements as of June 30, 2025 and December 31, 2024.

There were no material transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2025 and 2024.

(4) Contract Assets and Contract Liabilities

16 unchanged sentences

Advanced billings $ 808,783 $ 710,585

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.

As of June 30, 2025 and December 31, 2024, the Company had approximately $ 3.5 billion of performance obligations remaining to be performed for active projects.

(5) Intangible Assets, Net

10 unchanged sentences

Total intangible assets, net $ 33,893 $ 34,366

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):

As of June 30, 2025, estimated amortization expense of the Company’s intangible assets for each of the remaining years is as follows (in thousands):

Remainder of 2025

6 unchanged sentences

Total accrued expenses $ 323,505 $ 307,807

(7) Short-term Debt

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”).

1 unchanged sentence

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.

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

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.

8 to the Loan Agreement, which increased the aggregate principal amount that may be borrowed under the

Credit Facility to up to $ 600.0 million, adjusted the interest rate charged on the Credit Facility and extended the expiration date of the revolving credit note to April 30, 2027.

The Credit Facility bears interest at a rate of the sum of The Secured Overnight Financing Rate (SOFR) plus 100 basis points ( 1.00 %) 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 June 30, 2025 and December 31, 2024, the Company had no indebtedness under the Credit Facility.

On July 17, 2025, the Company entered into Amendment No.

9 to the Loan Agreement, which decreased the aggregate principal amount that may be borrowed under the Credit Facility to up to $ 10.0 million.

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.

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Operating lease cost $ 7,688 $ 7,903 $ 15,753 $ 15,768

1 unchanged sentence

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

Three Months Ended March 31,

Six Months Ended June 30,

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

18 unchanged sentences

Operating leases 5.6 % 5.7 %

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

Lease payments due related to lease liabilities as of June 30, 2025 were as follows (in thousands):

Related Party

13 unchanged sentences

Total $ 87,463 $ 62,369 $ 149,832

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 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.

The Company granted 154,264 awards to employees under the 2016 Incentive Award Plan during the six months ended June 30, 2025, consisting of 34,331 RSU and 35,473 stock options having five year vesting schedules and 84,460 stock option awards that vested upon issuance.

The Company granted an additional 7,344 stock option awards to non-employee directors under the 2016 Incentive Award Plan during the six months ended June 30, 2025.

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.

Award Activity

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

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Stock Options Weighted Average

7 unchanged sentences

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

Three Months Ended

March 31, 2025

Six Months Ended

June 30, 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Total direct costs $ 3,420 $ 2,308 $ 6,447 $ 4,778

2 unchanged sentences

(10) Income Taxes

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”).

The Company’s effective income tax rate was 27.5 % and 20.0 % for the three months ended June 30, 2025 and 2024, respectively.

The Company's effective income tax rate was 15.6 % and 14.5 % for the six months ended June 30, 2025 and 2024, respectively.

The Company’s effective income tax rate for the three months ended June 30, 2025 varied from the U.S.

statutory rate of 21 % primarily due to the impact of the state taxes and a decrease in the estimated tax benefits related to Foreign Derived Intangible Income (“FDII”).

The Company’s effective income tax rate for the six months ended June 30, 2025 varied from the U.S.

statutory rate of 21 % due to the impact of state taxes, which was favorably offset by excess tax benefits recognized from share-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

We are currently assessing its impact on our condensed consolidated financial statements.

(11) Commitments and Contingencies

1 unchanged sentence

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 March 31, 2025 and December 31, 2024.

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 March 31, 2025.

however, the Company believes that such potential losses were immaterial as of June 30, 2025.

Purchase Commitments

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

The Company has several minimum purchase commitments for project related supplies totaling $ 18.0 million as of June 30, 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 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.

Total receivables as a result of these employee advances of $ 0.4 million and $ 0.3 million at June 30, 2025 and December 31, 2024, respectively, 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 $ 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.

The Company recognized total revenue from LIB of $ 1.7 million and $ 3.9 million during the three months ended June 30, 2025 and 2024, respectively, and $ 3.9 million and $ 10.4 million during the six months ended June 30, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations.

As of June 30, 2025 and December 31, 2024, the Company had Advanced billings from LIB of $ 9.1 million and $ 9.5 million, respectively, in the condensed consolidated balance sheets.

In addition, as of June 30, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from LIB of $ 1.3 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 $ 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.

The Company recognized total revenue from CinRx of $ 15.1 million and $ 7.3 million during the three months ended June 30, 2025 and 2024, respectively, and $ 26.8 million and $ 13.6 million during the six months ended June 30, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations.

As of June 30, 2025 and December 31, 2024, the Company had Advanced billings from CinRx of $ 6.0 million and $ 5.2 million, respectively, in the condensed consolidated balance sheets.

As of June 30, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from CinRx of $ 1.1 million and $ 1.4 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 June 30, 2025 and 2024, and $ 0.1 million and $ 0.2 million during the six months ended June 30, 2025 and 2024, respectively, at The Summit.

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 March 31, 2025 and 2024 was $ 0.7 million.

Operating lease cost recognized for the three months ended June 30, 2025 and 2024 was $ 0.7 million.

Operating lease cost recognized for the six months ended June 30, 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 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 Operating lease right-of-use assets at June 30, 2025 and December 31, 2024 were $ 16.7 million and $ 17.6 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2025 were $ 1.7 million and $ 15.6 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 $ 1.6 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 March 31, 2025 and 2024 was $ 1.4 million.

Operating lease cost recognized for the three months ended June 30, 2025 and 2024 was $ 1.4 million.

Operating lease cost recognized for the six months ended June 30, 2025 and 2024 was $ 2.8 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 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 Operating lease right-of-use assets at June 30, 2025 and December 31, 2024 were $ 49.3 million and $ 50.2 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2025 were $ 1.6 million and $ 61.1 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 $ 1.5 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 March 31, 2025 and 2024 was $ 0.6 million.

Operating lease cost recognized for the three months ended June 30, 2025 and 2024 was $ 0.7 million.

Operating lease cost recognized for the six months ended June 30, 2025 and 2024 was $ 1.3 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 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 Operating lease right-of-use assets at June 30, 2025 and December 31, 2024 were $ 5.3 million and $ 6.4 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2025 were $ 2.3 million and $ 3.1 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 $ 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 March 31, 2025 and 2024 was $ 0.7 million.

Operating lease cost recognized for the three months ended June 30, 2025 and 2024 was less than $ 0.1 million and $ 0.8 million, respectively.

Operating lease cost recognized for the six months ended June 30, 2025 and 2024 was $ 0.7 million and $ 1.5 million, respectively.

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 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 Operating lease right-of-use assets at June 30, 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 June 30, 2025 were $ 1.0 million and $ 1.0 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 $ 0.3 million during the three months ended March 31, 2025 and 2024, respectively, related to these travel services.

The Company incurred travel expenses of $ 0.5 million and $ 0.7 million during the three months ended June 30, 2025 and 2024, respectively, and $ 0.9 million and $ 1.0 million during the six months ended June 30, 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 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.

As of June 30, 2025 and December 31, 2024, the Company had Accounts payable to the Aircraft Management Company of $ 0.1 million and $ 0.2 million, respectively, in the condensed consolidated balance sheets.

(13) Segment Disclosures

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Revenue, net $ 603,311 $ 528,104 $ 1,161,881 $ 1,039,148

9 unchanged sentences

Income from operations 126,335 105,150 239,858 209,219

Other income, net:

Other (expense) income, net:

Miscellaneous (expense) income, net ( 2,875 ) ( 133 ) ( 4,691 ) 4,460

Interest income, net 1,078 5,465 7,541 9,585

Total other income, net 4,647 8,713

Total other (expense) income, net ( 1,797 ) 5,332 2,850 14,045

Income before income taxes 124,538 110,482 242,708 223,264

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

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