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Medpace Soars 60%+ Intraday on Q2 Earnings Beat

$Medpace(MEDP)$  rose more than 60% intraday Tuesday after the contract pharma-research company surpassed analyst expectations on its Q2 results.

MEDP gained as much as 62.3% to a $501.30 session high after reporting that Q2 sales increased by 14.2% year-over-year to $603.3 million, significantly higher than analysts' expectations of $538.8 million.

The company's GAAP earnings per share likewise came in at $3.10, exceeding analysts' predictions of $2.97.

Company Overview

Founded in 1992 as a scientifically driven alternative to traditional contract research organizations, Medpace provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Medpace Q2 2025 Highlights:

~Revenue: $603.3 million vs. analyst expectations of $538.8 million (14.2% YoY growth)

~Earnings Per Share (GAAP): $3.10 vs. analyst expectations of $2.97

~Operating Profit Margin: 20.9%, up from 19.9% in the same period last year

~Free Cash Flow Margin: 23.6%, up from 19.6% in the same period last year

~Adjusted EBITDA: $130.5 million, a 16.2% YoY increase, with an EBITDA margin of 21.6%

~New business awards of $620.5 million, up 12.6% YoY, driving a net book-to-bill ratio of 1.03x, indicating continued strong booking capability outpacing revenue conversion

Based on its robust financial growth, the company has raised its outlook for fiscal year 2025. Medpace has increased its earnings per share guidance to a range of $13.76 to $14.53, up from the previous range of $12.26 to $13.04. The annual revenue expectation has been raised from the previous $2.14 billion to $2.24 billion to a new range of $2.42 billion to $2.52 billion.

Revenue growth and change in operating margin

Medpace has achieved significant revenue growth over the past five years, demonstrating a strong growth trajectory. More impressively, as revenue continues to expand, the company's profitability has simultaneously improved steadily, reflecting a high-quality growth model. The latest quarterly report shows that the company's operating profit margin reached 20.9%, an increase of 1 percentage point compared to the same period last year. This indicates that Medpace is not only expanding in scale but also continuously optimizing operational efficiency and profit structure, achieving a positive synergy between scale and efficiency.

Medpace's strong rebound in Q2 2025 contrasts sharply with its performance woes in Q2 2024, which was driven by the combination of a rebounding external market environment and optimized internal operating efficiencies, marking the company's successful traversal of the industry's downturn. The main reason for the downward revision of the Q2 2024 financial results was the financing woes of small and medium-sized Biotech customers, which led to a surge in order cancellations and a decline in the B/B value fell to a six-year low. In 2025 Q2, biotech financing environment improved significantly, customers' financial pressure eased, driving new order growth, B/B value rebounded to 1.03x, the demand side back to the expansion track. It can be said that this earnings report repaired the confidence crisis triggered by the 2024 Q2 earnings report.

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