Cash conversion remains superior with an OCF/NI ratio of 1.23 in 2026Q1, supporting an aggressive capital allocation strategy that included a $540.9 million share repurchase in 2025Q2.
| Cash from Operations | 739.17M | 713.22M | 608.82M | 433.37M | 388.05M | 263.33M | 258.68M | 201.87M | 156.58M | 97.39M | 91.73M | 85.87M | 75.2M |
| Operating CF Margin % | - | 28.19% | 28.87% | 22.98% | 26.58% | 23.05% | 27.94% | 23.45% | 22.22% | 22.33% | 21.76% | 23.92% | 25.93% |
| Operating CF Growth % | 114.43% | 17.15% | 40.48% | 11.68% | 47.36% | 1.8% | 28.14% | 28.92% | 60.79% | 6.16% | 6.83% | 14.19% | - |
| Net Income | 460.4M | 451.12M | 404.39M | 282.81M | 245.37M | 181.85M | 145.38M | 100.44M | 73.19M | 39.12M | 13.43M | -8.67M | -15.57M |
| Depreciation & Amortization | 27.24M | 27.18M | 29.25M | 26.33M | 22.34M | 21.12M | 19.53M | 23.19M | 38.8M | 46.47M | 58.11M | 69.52M | 68.06M |
| Stock-Based Compensation | 12.27M | 34.79M | 25.51M | 20.52M | 21.41M | 14.47M | 13.78M | 20.74M | 6.5M | 4.46M | 9.81M | 22.32M | 12.76M |
| Deferred Taxes | 98.57M | 80.77M | -26.63M | -25.12M | -23.01M | -37.11M | 527K | 10.05M | 3.94M | 3.24M | -9.01M | -12.69M | 0 |
| Other Non-Cash Items | 34.23M | 23.09M | 19.11M | 22.35M | 15.89M | 16.3M | 13.2M | 11.86M | -5.44M | -8.79M | 12.28M | 11.76M | 18.82M |
| Working Capital Changes | 106.47M | 96.28M | 157.18M | 106.49M | 106.06M | 66.71M | 66.26M | 35.59M | 39.6M | 12.88M | 7.1M | 3.63M | -8.88M |
| Change in Receivables | -96.32M | -106.22M | 2.24M | -48.28M | -66.92M | -24.98M | -5.53M | -21.26M | -27.05M | -2.9M | -13.73M | 337K | -11.65M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -8.01M | 2.63M | -2.96M | 1.05M | 6.43M | 1.87M | -2.6M | 4.73M | 1.34M | 4.82M | 691K | 2.48M | 0 |
| Cash from Investing | -27.9M | -31.14M | -28.31M | -34.63M | -38.74M | -31.36M | -31.21M | -19.14M | -16.97M | -12.24M | -13.42M | -6.43M | -908.47M |
| Capital Expenditures | 5.46M | 0 | -36.55M | -36.65M | -36.88M | -28.27M | -31.34M | -17.91M | -16.02M | -11.72M | -13.54M | -6.46M | -5.32M |
| CapEx % of Revenue | 0.2% | 1.24% | 1.73% | 1.94% | 2.53% | 2.47% | 3.38% | 2.08% | 2.27% | 2.69% | 3.21% | 1.8% | 1.83% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -901.8M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -33.36M | -31.14M | 8.24M | 2.02M | -1.86M | -3.09M | 126K | -1.23M | -949K | -513K | 115K | 33K | 301K |
| Cash from Financing | -501.75M | -860.39M | -154.01M | -182.64M | -775.77M | -44.45M | -82.28M | -73.92M | -141.58M | -97.83M | -58.01M | -116.49M | 882.2M |
| Debt Issued (Net) | 0 | 0 | 0 | -50M | 50M | 0 | 0 | -80.44M | -142.19M | 57.63M | -226.1M | -116.06M | 462.12M |
| Equity Issued (Net) | -510.09M | -860.39M | -169.87M | -144.02M | -847.85M | -62.1M | -98.27M | 0 | 0 | -155.58M | 173.58M | 608K | 414M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -545.49M | -917.39M | -169.87M | -144.02M | -847.85M | -62.1M | -98.27M | 0 | 0 | -155.58M | 0 | 0 | 0 |
| Other Financing | 8.34M | 0 | 15.86M | 11.38M | 22.07M | 17.64M | 15.99M | 6.52M | 608K | 130K | -5.48M | -1.04M | 6.08M |
| Net Change in Cash | 211.25M | -172.39M | 423.99M | 217.18M | -433.04M | 183.54M | 145.85M | 108.64M | -3.21M | -10.91M | 19.67M | -37.65M | 55.39M |
| Free Cash Flow | 744.63M | 681.87M | 572.27M | 396.73M | 351.17M | 235.06M | 227.34M | 183.96M | 140.56M | 85.09M | 78.19M | 79.41M | 69.89M |
| FCF Margin % | 27.8% | 26.95% | 27.13% | 21.04% | 24.05% | 20.58% | 24.55% | 21.37% | 19.95% | 19.51% | 18.55% | 22.11% | 24.1% |
| FCF Growth % | 37.66% | 19.15% | 44.25% | 12.97% | 49.4% | 3.4% | 23.58% | 30.87% | 65.19% | 8.82% | -1.52% | 13.62% | - |
| FCF per Share | 25.71 | 23.09 | 17.88 | 12.46 | 10.43 | 6.24 | 6.03 | 4.90 | 3.81 | 2.14 | 2.15 | 2.00 | 2.37 |
| FCF Conversion (FCF/Net Income) | 1.62x | 1.58x | 1.51x | 1.53x | 1.58x | 1.45x | 1.78x | 2.01x | 2.14x | 2.49x | 6.83x | -9.90x | -4.83x |
| Interest Paid | 0 | 0 | 171K | 3.06M | 2.94M | 123K | 104K | 1.49M | 7.59M | 6.89M | 16.89M | 24.43M | 0 |
| Taxes Paid | 0 | 0 | 83.57M | 76.35M | 50.16M | 56.24M | 23.11M | 13.23M | 23.31M | 17.18M | 17.65M | 10.55M | 0 |
Biotech funding cycle sensitivity
As reported in quarterly financial filings, Medpace consistently maintains an OCF/NI ratio well above 1.0, with a peak of 2.22 in 2025Q3, indicating that the company's reported net income is highly supported by actual cash inflows from its clinical research service operations.
The persistent gap between net income and operating cash flow suggests that the company's earnings quality is high, likely driven by favorable payment terms with SME biotech clients. Investors should monitor whether this conversion efficiency remains elevated as the company scales, as it currently serves as a primary indicator of operational health.
Based on the provided cash flow data, Medpace has demonstrated a robust free cash flow trajectory, achieving an FCF margin of 39.8% in 2025Q3, which significantly exceeds the company's net income growth and highlights the asset-light nature of its centralized clinical research model.
The ability to generate substantial free cash flow relative to net income suggests that the company is not burdened by heavy capital requirements. This trajectory appears sustainable provided that the company continues to avoid the capital-intensive M&A strategies favored by its larger, more diversified industry peers.
According to recent cash flow statements, working capital changes have frequently acted as a significant tailwind for cash generation, contributing as much as $87.5 million in 2025Q3, which suggests highly efficient management of accounts receivable and client billing cycles within the biotech niche.
The positive impact of working capital on cash flow implies that the company is effectively collecting on its service contracts ahead of the associated labor costs. While this provides a liquidity cushion, investors should be wary of potential reversals if client funding environments tighten and payment cycles extend.
As indicated by historical cash flow data, Medpace has utilized its robust free cash flow to fund significant share repurchases, including a $540.9 million outlay in 2025Q2, reflecting management's preference for returning capital to shareholders over pursuing dilutive acquisitions in the CRO space.
This capital deployment strategy suggests a high degree of confidence in the company's intrinsic value and organic growth prospects. However, the lumpy nature of these repurchases warrants further investigation into whether they are timed to offset stock-based compensation or to capitalize on perceived market undervaluation.
Quick answers to the most common questions about buying MEDP stock.
Medpace Holdings, Inc. (MEDP) generated $713.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Medpace Holdings, Inc. (MEDP) generated $681.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Medpace Holdings, Inc. (MEDP) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Medpace Holdings, Inc. (MEDP) spent $917.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.