Company Reports

Medpace's shares jumped nearly 15% on July 23 after second-quarter revenue grew 17% year over year to $707 million. Management raised its 2026 revenue outlook by 143 basis points at the midpoint to nearly $2.85 billion and boosted EBITDA guidance by 161 basis points to $630 million at the midpoint.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported 26% year-over-year revenue growth to $706 million in the first quarter, but its backlog declined $98 million sequentially to $2.93 billion amid elevated cancellations and weak bookings, driving a net book/bill ratio of only 0.88 versus 1.04 in the fourth quarter.

Medpace reported fourth-quarter revenue of $708.5 million, growing 32% over the prior-year period. However, elevated cancellations resulted in a net book/bill ratio of 1.04 times in the quarter, down sequentially from 1.20 in the third quarter. The stock dropped 16% on Feb. 10.

Medpace's third-quarter revenue increased nearly 24% from the prior-year period. Management raised its 2025 revenue and adjusted EBITDA guidance by 1.4% and 3.8% at the midpoint, respectively. Net new business awards totaled $789 million, and Medpace reported a net book/bill ratio of 1.20.

Medpace's second-quarter revenue increased 14% from the prior year, and its backlog conversion rate was 21%. Management increased its 2025 revenue guidance by 13% at the midpoint and raised its net income guidance by nearly 7%. Shares soared 55% on the better-than-expected results.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported weak first-quarter results. Despite revenue increasing 9% to $559 million compared with the first quarter last year, net new business awards were $500 million in the quarter, representing a nearly 19% decrease from the prior-year period. This resulted in a weak net book/bill ratio of 0.9 times, and backlog decreased 2.1% from the prior-year period. The bookings shortfall is due to more cautious client decisions, pipeline cancellations, and delays in project starts. Medpace's customer base is unique from other large, publicly traded contract research organizations; it primarily consists of small biopharma companies (about 80% of revenue), which poses elevated risks in a challenging macroeconomic environment due to funding constraints.

Narrow-moat Medpace reported mixed 2024 results. Revenue increased to $2.1 billion, up 11.8% from $1.9 billion in 2023, but the company continues to face challenges from elevated cancellation levels, resulting in a weak book/bill ratio of 0.99. Net new business awards were $529.7 million in the fourth quarter, a decrease of 13.8% from the prior-year period. The shares fell nearly 8% on Feb. 11 as management’s 2025 revenue guidance fell short of expectations; the outlook is for $2.11 billion-$2.21 billion in revenue, implying growth of 0%-4.8% over 2024. Medpace’s stock price is falling closer to our $296 fair value estimate, but we still view it as overvalued, trading about 11% above our valuation.

Medpace reported mixed third-quarter results, as revenue increased 8.3% from the prior-year period but net new business awards decreased 12.7% due to elevated cancellations. This resulted in a net book-to-bill ratio of 1.00 in the third quarter, compared with 1.04 in the second quarter of 2024. These near-term headwinds are tracking our expectations, and we maintain our fair value estimate of $296 per share.

Medpace reported mixed second-quarter results, as revenue increased 14.6% from the prior-year period but net new business awards decreased 4% due to elevated cancellations, which were double the quarterly average of 4.5% in 2023. This resulted in a book-to-bill ratio of 1.04 in the second quarter compared with 1.2 in the first quarter of 2024. However, management raised its 2024 earnings per share guidance by 4% at the midpoint, which signals confidence in its profitability and industry-leading organic revenue growth.

Narrow-moat Medpace delivered a strong first-quarter performance, highlighted by revenue of $511 million, a year-over-year increase of nearly 18%. We have raised our fair value estimate to $296 per share from $261 based on continued robust demand for Medpace’s clinical trial services. While we have a very positive outlook and strong growth projections for Medpace, we currently view the shares as overvalued, trading at a 37% premium to our fair value estimate. Investors reacted positively to Medpace’s strong results, and year to date, the shares have risen 33% thanks to the firm’s solid performance despite potential concerns related to the biotech funding environment and macroeconomic challenges affecting its small to midsize biopharma customers.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported healthy year-end results highlighted by revenue of $1.88 billion, representing a 29% increase from the prior year. Demand for Medpace’s clinical trial services has been robust, as the funding environment is improving and several stalled projects are now moving forward. We have updated our forecast to reflect Medpace’s continued strong performance, and we have raised our fair value estimate about 9% to $261 per share from $239. We continue to have a positive long-term outlook for Medpace, and we forecast to high-single-digit to low-double-digit revenue growth over our 10-year forecast period.

Medpace is a global, late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. The company was founded over 30 years ago in Cincinnati, Ohio. Its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported robust third-quarter results highlighted by revenue of $492 million, representing a 28% increase from the prior year. Management provided initial guidance for 2024 with revenue expected to growth about 15.5% year over year. We have updated our forecast to reflect Medpace’s continued strong performance thanks to healthy demand for its clinical trial services. We’ve raised our fair value estimate about 5% to $239 per share from $227, and we maintain our narrow economic moat rating. We continue to have a positive long-term outlook for Medpace, and we forecast mid-double-digit to high-single-digit revenue growth over our 10-year forecast period.

Medpace is a global, late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. The company was founded over 30 years ago in Cincinnati, Ohio. Its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported strong second-quarter results highlighted by revenue of nearly $461 million, representing a 31% increase from the prior-year period. Medpace is tracking our expectations, and we maintain our fair value estimate of $227 per share. Strong intangible assets and high customer switching costs support the company’s narrow economic moat. We continue to have a positive long-term outlook for Medpace, and we forecast low-double-digit to high-single-digit revenue growth over our 10-year forecast period.