Medpace Holdings, Inc. 10-Q

Item 1. Financial Statements MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Amounts in thousands, except share amounts) As of September 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 285,351 $ 669,436 Accounts receivable and unbilled, net (includes $ 3.6 million and $ 4.2 million with related parties at September 30, 2025 and December 31, 2024, respectively) 373,034 296,443 Prepaid expenses and other current assets 78,900 63,350 Total current assets 737,285 1,029,229 Property and equipment, net 133,175 123,615 Operating lease right-of-use assets 123,586 128,649 Goodwill 662,396 662,396 Intangible assets, net 33,657 34,366 Deferred income taxes 37,189 100,357 Other assets 25,724 22,254 Total assets $ 1,753,012 $ 2,100,866 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable (includes $ 0.3 million and $ 0.2 million with related parties at September 30, 2025 and December 31, 2024, respectively) $ 26,523 $ 32,528 Accrued expenses 368,746 307,807 Advanced billings (includes $ 14.1 million and $ 14.6 million with related parties at September 30, 2025 and December 31, 2024, respectively) 834,328 710,585 Other current liabilities 54,317 53,633 Total current liabilities 1,283,914 1,104,553 Operating lease liabilities 119,067 126,234 Deferred income tax liability 1,899 1,800 Other long-term liabilities 54,491 42,734 Total liabilities 1,459,371 1,275,321 Commitments and contingencies (see Note 11) Shareholders’ equity: Preferred stock - $ 0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock - $ 0.01 par-value; 250,000,000 shares authorized at September 30, 2025 and December 31, 2024; 28,168,223 and 30,630,799 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 282 306 Treasury stock - 70,073 shares at September 30, 2025 and December 31, 2024 ( 12,235 ) ( 12,235 ) Additional paid-in capital 907,483 844,050 (Accumulated deficit) retained earnings ( 596,237 ) 8,167 Accumulated other comprehensive loss ( 5,652 ) ( 14,743 ) Total shareholders’ equity 293,641 825,545 Total liabilities and shareholders’ equity $ 1,753,012 $ 2,100,866 See notes to condensed consolidated financial statements. -3- Table of Contents MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue, net (includes $ 12.2 million and $ 15.5 million with related parties for the three months ended September 30, 2025 and 2024, respectively, and $ 42.9 million and $ 39.5 million with related parties for the nine months ended September 30, 2025 and 2024, respectively) $ 659,903 $ 533,317 $ 1,821,784 $ 1,572,465 Operating expenses: Direct service costs, excluding depreciation and amortization 186,335 171,540 549,977 514,573 Reimbursed out-of-pocket expenses 276,629 192,769 716,505 579,904 Total direct costs 462,964 364,309 1,266,482 1,094,477 Selling, general and administrative 48,082 49,217 152,643 134,751 Depreciation 6,813 7,158 20,284 20,663 Amortization 236 360 709 1,082 Total operating expenses 518,095 421,044 1,440,118 1,250,973 Income from operations 141,808 112,273 381,666 321,492 Other income, net: Miscellaneous (expense) income, net ( 489 ) ( 1,025 ) ( 5,180 ) 3,435 Interest income, net 1,517 7,528 9,058 17,113 Total other income, net 1,028 6,503 3,878 20,548 Income before income taxes 142,836 118,776 385,544 342,040 Income tax provision 31,701 22,350 69,554 54,672 Net income $ 111,135 $ 96,426 $ 315,990 $ 287,368 Net income per share attributable to common shareholders: Basic $ 3.95 $ 3.11 $ 10.88 $ 9.28 Diluted $ 3.86 $ 3.01 $ 10.64 $ 8.96 Weighted average common shares outstanding: Basic 28,136 31,047 29,033 30,960 Diluted 28,817 32,088 29,710 32,060 See notes to condensed consolidated financial statements. -4- Table of Contents MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 111,135 $ 96,426 $ 315,990 $ 287,368 Other comprehensive income Foreign currency translation adjustments, net of taxes 2 3,413 9,091 896 Comprehensive income $ 111,137 $ 99,839 $ 325,081 $ 288,264 See notes to condensed consolidated financial statements. -5- Table of Contents MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Amounts in thousands) Common Stock Treasury Stock Additional Paid-In Capital (Accumulated Deficit) Retained Earnings Accumulated Other Comprehensive Loss Total BALANCE — December 31, 2023 $ 308 $ ( 12,322 ) $ 802,681 $ ( 221,645 ) $ ( 10,072 ) $ 558,950 Net income 102,591 102,591 Foreign currency translation ( 1,969 ) ( 1,969 ) Stock-based compensation expense 4,310 4,310 Stock options exercised 2 7,658 7,660 Re-issuance of treasury stock 87 ( 87 ) — 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 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 Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Loss Total BALANCE — December 31, 2024 $ 306 $ ( 12,235 ) $ 844,050 $ 8,167 $ ( 14,743 ) $ 825,545 Net income 114,595 114,595 Foreign currency translation 3,122 3,122 Stock-based compensation expense 16,892 16,892 Stock options exercised 4 25,941 25,945 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 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 Net income 111,135 111,135 Foreign currency translation 2 2 Stock-based compensation expense 6,323 6,323 Stock options exercised 1 7,986 7,987 Repurchases of common stock ( 4,157 ) ( 4,157 ) BALANCE — September 30, 2025 $ 282 $ ( 12,235 ) $ 907,483 $ ( 596,237 ) $ ( 5,652 ) $ 293,641 See notes to condensed consolidated financial statements. -6- Table of Contents MEDPACE HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 315,990 $ 287,368 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 20,284 20,663 Amortization 709 1,082 Stock-based compensation expense 29,166 19,625 Noncash lease expense 17,329 17,305 Deferred income tax provision (benefit) 63,366 ( 2,433 ) Other ( 433 ) ( 3,836 ) Changes in assets and liabilities: Accounts receivable and unbilled, net ( 77,119 ) ( 13,032 ) Prepaid expenses and other current assets ( 15,607 ) ( 11,108 ) Accounts payable 1,296 ( 3,029 ) Accrued expenses 57,521 13,933 Advanced billings 123,743 111,079 Lease liabilities ( 18,131 ) ( 15,417 ) Other assets and liabilities, net 2,457 ( 4,051 ) Net cash provided by operating activities 520,571 418,149 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment expenditures ( 26,820 ) ( 28,905 ) Other 153 8,159 Net cash used in investing activities ( 26,667 ) ( 20,746 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from stock option exercises 34,272 14,600 Repurchases of common stock ( 917,389 ) — Net cash (used in) provided by financing activities ( 883,117 ) 14,600 EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 5,128 ( 552 ) (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 384,085 ) 411,451 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 669,436 245,449 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 285,351 $ 656,900 See notes to condensed consolidated financial statements. -7- Table of Contents MEDPACE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 (1) Basis of Presentation Description of Business Medpace Holdings, Inc. (together with its subsidiaries, “Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia. Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Share Repurchases In 2022, the Company’s Board of Directors approved a share repurchase program which has been amended several times to increase the aggregate amount of the share repurchase authorization. During the three and nine months ended September 30, 2025, the Company repurchased 14,649 shares and 2,961,924 shares for $ 4.5 million and $ 912.9 million, respectively. The Company did not execute any share repurchases during the three and nine months ended September 30, 2024. As of September 30, 2025, the Company has remaining authorization of $ 821.7 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. The Company constructively retired the repurchased shares associated with these approved share repurchases, except for a small portion which were retained as Treasury Shares on the condensed 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 condensed consolidated balance sheets. Recently Issued Accounting Pronouncements 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. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company expects to adopt this standard in the fourth quarter of 2025 by adding additional tax related disclosures to the consolidated financial statements. 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 -8- Table of Contents 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. In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software” to modernize the accounting for software development costs and specify disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted as of the beginning of an annual reporting period. The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures. (2) Net Income Per Share Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s Restricted Stock Awards (“RSA”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested Restricted Stock Units (“RSU”) and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. 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. The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except for earnings per share): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Weighted-average shares: Common shares outstanding 28,136 31,047 29,033 30,960 RSAs — — — 4 Total weighted-average shares 28,136 31,047 29,033 30,964 Earnings per common share—Basic Net income $ 111,135 $ 96,426 $ 315,990 $ 287,368 Less: Undistributed earnings allocated to RSAs — — — ( 41 ) Net income available to common shareholders—Basic $ 111,135 $ 96,426 $ 315,990 $ 287,327 Net income per common share—Basic $ 3.95 $ 3.11 $ 10.88 $ 9.28 Basic weighted-average common shares outstanding 28,136 31,047 29,033 30,960 Effect of diluted shares 681 1,041 677 1,100 Diluted weighted-average shares outstanding 28,817 32,088 29,710 32,060 Net income per common share—Diluted $ 3.86 $ 3.01 $ 10.64 $ 8.96 During the nine months ended September 30, 2025, the Company had (in thousands) 78.1 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 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. -9- Table of Contents (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. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. 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, 2025 and December 31, 2024. There were no material transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2025 and 2024. (4) Contract Assets and Contract Liabilities Contract assets and liabilities are reflected in the Company’s condensed consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date. Accounts receivable and unbilled, net consisted of the following (in thousands): As of September 30, 2025 December 31, 2024 Accounts receivable $ 362,318 $ 291,096 Unbilled receivables 10,716 5,347 Less: allowance for doubtful accounts — — Total accounts receivable and unbilled, net $ 373,034 $ 296,443 Contract Liabilities Advanced billings represent cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. Advanced billings consisted of the following (in thousands): As of September 30, 2025 December 31, 2024 Advanced billings $ 834,328 $ 710,585 As of September 30, 2025 and December 31, 2024, the Company had approximately $ 3.5 billion of performance obligations remaining to be performed for active projects. -10- Table of Contents (5) Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): As of September 30, 2025 December 31, 2024 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships $ 145,051 $ 145,051 Accumulated amortization: Customer relationships ( 143,040 ) ( 142,331 ) Total finite-lived intangible assets, net 2,011 2,720 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 33,657 $ 34,366 As of September 30, 2025, estimated amortization expense of the Company’s intangible assets for each of the remaining years is as follows (in thousands): Amortization Remainder of 2025 $ 237 2026 620 2027 577 2028 577 $ 2,011 (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): As of September 30, 2025 December 31, 2024 Employee compensation and benefits $ 83,080 $ 84,929 Project related reimbursable expenses 274,916 212,008 Other 10,750 10,870 Total accrued expenses $ 368,746 $ 307,807 (7) Debt On September 30, 2019, the Company entered into a Loan Agreement (as it may be amended from time to time, the “Loan Agreement”) providing for 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”). At the same time the Company entered into the Loan Agreement, the Guarantor executed a Guaranty Agreement providing for its guarantee of the payment and performance of the obligations under the Loan Agreement. On July 17, 2025, the Company entered into Amendment No. 9 to the Loan Agreement, which changed the aggregate principal amount that may be borrowed under the Credit Facility to up to $ 10.0 million. The Credit Facility expires April 30, 2027 and 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 September 30, 2025 and December 31, 2024, the Company had no indebtedness under the Credit Facility. -11- Table of Contents 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. (8) Leases The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 15 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms. The components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Operating lease cost $ 7,672 $ 7,959 $ 23,425 $ 23,727 Variable lease cost 3,282 2,904 9,113 8,305 Supplemental cash flow information related to the leases was as follows (in thousands): Nine Months Ended September 30, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18,738 $ 16,232 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,285 2,222 Supplemental balance sheet information related to the leases was as follows (in thousands): As of September 30, 2025 December 31, 2024 Operating lease right-of-use assets - related parties $ 69,885 $ 74,889 Operating lease right-of-use assets - non-related parties 53,701 53,760 Operating lease right-of-use assets $ 123,586 $ 128,649 Other current liabilities - related parties 6,759 6,310 Other current liabilities - non-related parties 18,147 16,979 Other current liabilities $ 24,906 $ 23,289 Operating lease liabilities - related parties 79,125 84,259 Operating lease liabilities - non-related parties 39,942 41,975 Operating lease liabilities 119,067 126,234 Total operating lease liabilities $ 143,973 $ 149,523 Weighted Average Remaining Lease Term (years) Operating leases 9.1 9.6 Weighted Average Discount Rate Operating leases 5.7 % 5.7 % -12- Table of Contents Lease payments due related to lease liabilities as of September 30, 2025 were as follows (in thousands): Related Party Operating Leases Non-Related Parties Operating Leases Total Operating Leases Remainder of 2025 $ 2,925 $ 5,413 $ 8,338 2026 11,807 18,704 30,511 2027 10,839 15,237 26,076 2028 8,609 9,941 18,550 2029 8,824 6,917 15,741 Later years 82,845 7,914 90,759 Total lease payments 125,849 64,126 189,975 Less: imputed interest ( 39,965 ) ( 6,037 ) ( 46,002 ) Total $ 85,884 $ 58,089 $ 143,973 As of September 30, 2025, we have an additional lease with contractual obligations, which have not yet commenced , with future payments of $ 0.3 million. (9) Shareholders’ Equity and Stock-Based Compensation The Company granted 157,805 awards to employees under the 2016 Amended and Restated Incentive Award Plan during the nine months ended September 30, 2025, consisting of 37,872 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 Amended and Restated Incentive Award Plan during the nine months ended September 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: Nine Months Ended September 30, 2025 Stock Options Weighted Average Exercise Price Outstanding - beginning of period 1,143,368 $ 130.33 Granted 127,277 $ 324.56 Exercised ( 489,426 ) $ 70.03 Cancelled/Forfeited/Expired ( 10,786 ) $ 209.20 Outstanding - end of period 770,433 $ 199.62 Exercisable - end of period 415,603 $ 206.45 -13- Table of Contents The following table sets forth the Company’s RSA/RSU activity: Nine Months Ended September 30, 2025 Shares/Units Outstanding and unvested - beginning of period 365,492 Granted 37,872 Vested ( 9,922 ) Forfeited ( 16,952 ) Outstanding and unvested - end of period 376,490 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, 2025 2024 2025 2024 Total direct costs $ 3,772 $ 2,787 $ 10,219 $ 7,565 Selling, general and administrative 2,551 8,940 18,947 12,060 Total stock-based compensation expense $ 6,323 $ 11,727 $ 29,166 $ 19,625 (10) Income Taxes The Company’s effective income tax rate was 22.2 % and 18.8 % for the three months ended September 30, 2025 and 2024, respectively. The Company's effective income tax rate was 18.0 % and 16.0 % for the nine months ended September 30, 2025 and 2024, respectively. The Company’s effective income tax rate for the three months ended September 30, 2025 varied from the U.S. statutory rate of 21 % primarily due to the impact of the state taxes and uncertain tax positions, which was partially offset by excess tax benefits recognized from share-based compensation. The Company’s effective income tax rate for the nine months ended September 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. Where relevant, the Company has reflected any material items that were enacted in the condensed consolidated financial statements for the three and nine months ended September 30, 2025. (11) Commitments and Contingencies Legal Proceedings 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, 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 September 30, 2025. Purchase Commitments The Company has several minimum purchase commitments for project related supplies totaling $ 18.0 million as of September 30, 2025. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2029. -14- Table of Contents (12) Related Party Transactions Employee Loans 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 $ 0.4 million and $ 0.3 million at September 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 LIB Therapeutics LLC and subsidiaries (“LIB”) Certain executives and employees of the Company, including the chief executive officer, are members of LIB’s board of managers. The Company entered into a MSA dated November 24, 2015 with LIB, a company that engages in research, development, marketing and commercialization of pharmaceutical drugs. 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 $ 1.8 million and $ 8.3 million during the three months ended September 30, 2025 and 2024, respectively, and $ 5.7 million and $ 18.7 million during the nine months ended September 30, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the Company had Advanced billings from LIB of $ 8.3 million and $ 9.5 million, respectively, in the condensed consolidated balance sheets. In addition, as of September 30, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from LIB of $ 1.1 million and $ 2.8 million, respectively, in the condensed consolidated balance sheets. CinRX Pharma, subsidiaries and affiliates (“CinRx”) Certain executives and employees of the Company, including the chief executive officer, are members of CinRx’s board of managers and/or have equity investments in CinRx, a biotech company. 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 $ 10.4 million and $ 7.2 million during the three months ended September 30, 2025 and 2024, respectively, and $ 37.2 million and $ 20.8 million during the nine months ended September 30, 2025 and 2024, respectively, in the Company’s condensed consolidated statements of operations. As of September 30, 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. In addition, as of September 30, 2025 and December 31, 2024 the Company had Accounts receivable and unbilled, net from CinRx of $ 2.4 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 September 30, 2025 and 2024, and $ 0.2 million and $ 0.3 million during the nine months ended September 30, 2025 and 2024, respectively, at The Summit. Leased Real Estate Campus Headquarters Leases The Company entered into an operating lease for the occupancy of office space in a building in Cincinnati, Ohio with an entity that is wholly owned by the chief executive officer of the Company. The Company has evaluated its relationship with the related party and concluded that the related party is not a variable interest entity because the Company has no direct ownership interest or relationship other than the lease. The lease was renewed in the first quarter of fiscal year 2023 for a term of ten years through December 2032 with a renewal option for one 10-year term at prevailing market rates. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for its 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 three months ended September 30, 2025 and 2024 was $ 0.7 million. Operating lease cost recognized for the nine months ended September 30, 2025 and 2024 was $ 2.1 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, 2025 and December 31, 2024 were $ 16.3 million and $ 17.6 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at September 30, 2025 were $ 1.8 million and $ 15.2 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 -15- Table of Contents 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. In 2018, Medpace, Inc. entered into a multi-year lease agreement governing future occupancy of additional office space 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 began to occupy the premises in the second quarter of fiscal year 2020. The lease expires in 2040 and the Company has two 10 -year options to extend the term of the lease. 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 three months ended September 30, 2025 and 2024 was $ 1.5 million. Operating lease cost recognized for the nine months ended September 30, 2025 and 2024 was $ 4.3 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 September 30, 2025 and December 31, 2024 were $ 48.8 million and $ 50.2 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at September 30, 2025 were $ 1.7 million and $ 60.7 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. 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 lease is an operating lease. Operating lease cost recognized for the three months ended September 30, 2025 and 2024 was $ 0.6 million. Operating lease cost recognized for the nine months ended September 30, 2025 and 2024 was $ 1.9 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, 2025 and December 31, 2024 were $ 4.8 million and $ 6.4 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at September 30, 2025 were $ 2.3 million and $ 2.5 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. 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 three months ended September 30, 2025 and 2024 was less than $ 0.1 million and $ 0.7 million, respectively. Operating lease cost recognized for the nine months ended September 30, 2025 and 2024 was $ 0.8 million and $ 2.2 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 September 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 September 30, 2025 were $ 1.0 million and $ 0.8 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. Travel Services The Company incurs expenses for travel services for company executives provided by private aviation charter companies which is a company controlled by the chief executive officer of the Company (each a “private aviation charter”). The Company may contract directly with the private aviation charter for the use of its aircraft or indirectly through a third party -16- Table of Contents aircraft management and jet charter company (the “Aircraft Management Company”). The travel services provided are primarily for business purposes, with certain personal travel paid for as part of the executives’ compensation arrangements. The Aircraft Management Company also makes the private aviation charter aircraft available to third parties. The Company incurred travel expenses of $ 0.5 million and $ 0.4 million during the three months ended September 30, 2025 and 2024, respectively, and $ 1.4 million during the nine months ended September 30, 2025 and 2024 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, 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. -17- Table of Contents (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 September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue, net $ 659,903 $ 533,317 $ 1,821,784 $ 1,572,465 Operating expenses: Direct service costs, excluding depreciation and amortization - Employee compensation 149,295 136,872 441,164 411,316 Direct service costs, excluding depreciation and amortization - Other segment items (a) 37,040 34,668 108,813 103,257 Reimbursed out-of-pocket expenses 276,629 192,769 716,505 579,904 Total direct costs 462,964 364,309 1,266,482 1,094,477 Selling, general and administrative 48,082 49,217 152,643 134,751 Depreciation 6,813 7,158 20,284 20,663 Amortization 236 360 709 1,082 Total operating expenses 518,095 421,044 1,440,118 1,250,973 Income from operations 141,808 112,273 381,666 321,492 Other income, net: Miscellaneous (expense) income, net ( 489 ) ( 1,025 ) ( 5,180 ) 3,435 Interest income, net 1,517 7,528 9,058 17,113 Total other income, net 1,028 6,503 3,878 20,548 Income before income taxes 142,836 118,776 385,544 342,040 Income tax provision 31,701 22,350 69,554 54,672 Segment net income $ 111,135 $ 96,426 $ 315,990 $ 287,368 Reconciliation of profit or loss Adjustments and reconciling items — — — — Condensed consolidated net income $ 111,135 $ 96,426 $ 315,990 $ 287,368 (a) Direct service costs, excluding depreciation and amortization - Other segment items includes costs related to inventory, leases, project subcontractors and other direct service costs. Revenue by Category The following table disaggregates the Company’s revenue by major source (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Therapeutic Area Oncology $ 192,635 $ 164,917 $ 551,669 $ 483,067 Metabolic 199,256 124,733 495,144 334,674 Other 106,398 107,371 320,296 328,203 Central Nervous System 65,627 42,098 181,657 132,753 Cardiology 59,470 55,814 176,333 172,150 AVAI 36,517 38,384 96,685 121,618 Total revenue $ 659,903 $ 533,317 $ 1,821,784 $ 1,572,465 -18- Table of Contents