Medpace achieved a 26.5% year-over-year revenue increase in 2026Q1, though gross margins of 27.8% suggest potential pricing pressure or rising labor costs.
| Sales/Revenue | 2.68B | 2.53B | 2.11B | 1.89B | 1.46B | 1.14B | 925.92M | 860.97M | 704.59M | 436.15M | 421.58M | 359.06M | 290.04M |
| Revenue Growth % | 24.19% | 19.97% | 11.84% | 29.17% | 27.8% | 23.38% | 7.54% | 22.19% | 61.55% | 3.46% | 17.41% | 23.8% | - |
| Cost of Goods Sold | 1.9B | 1.77B | 1.45B | 1.36B | 1.03B | 814.22M | 647.2M | 615.27M | 489.06M | 261.46M | 249.47M | 202.66M | 156.31M |
| COGS % of Revenue | - | 69.94% | 68.88% | 72.19% | 70.38% | 71.27% | 69.9% | 71.46% | 69.41% | 59.95% | 59.17% | 56.44% | 53.89% |
| Gross Profit | 778.59M | 760.62M | 656.3M | 524.5M | 432.44M | 328.15M | 278.73M | 245.7M | 215.53M | 174.69M | 172.11M | 156.39M | 133.73M |
| Gross Margin % | 29.07% | 30.06% | 31.12% | 27.81% | 29.62% | 28.73% | 30.1% | 28.54% | 30.59% | 40.05% | 40.83% | 43.56% | 46.11% |
| Gross Profit Growth % | - | 15.89% | 25.13% | 21.29% | 31.78% | 17.73% | 13.44% | 14% | 23.38% | 1.5% | 10.05% | 16.95% | - |
| Operating Expenses | 215.68M | 225.68M | 209.44M | 187.68M | 153.74M | 129.54M | 111.68M | 118.43M | 114.48M | 109.83M | 119.62M | 135.83M | 128.54M |
| OpEx % of Revenue | - | 8.92% | 9.93% | 9.95% | 10.53% | 11.34% | 12.06% | 13.76% | 16.25% | 25.18% | 28.37% | 37.83% | 44.32% |
| Selling, General & Admin | 187.58M | 197.56M | 180.18M | 161.35M | 131.4M | 108.42M | 92.16M | 95.25M | 75.68M | 63.36M | 61.51M | 57M | 39.67M |
| SG&A % of Revenue | - | 7.81% | 8.54% | 8.56% | 9% | 9.49% | 9.95% | 11.06% | 10.74% | 14.53% | 14.59% | 15.87% | 13.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 28.12M | 29.25M | 26.33M | 22.34M | 21.12M | 19.53M | 23.19M | 38.8M | 46.47M | 58.11M | 78.83M | 0 |
| Operating Income | 562.91M | 534.93M | 446.87M | 336.82M | 278.7M | 198.62M | 167.04M | 127.26M | 101.05M | 64.86M | 52.49M | 20.56M | 26M |
| Operating Margin % | 21.02% | 21.14% | 21.19% | 17.86% | 19.09% | 17.39% | 18.04% | 14.78% | 14.34% | 14.87% | 12.45% | 5.73% | 8.96% |
| Operating Income Growth % | - | 19.71% | 32.67% | 20.86% | 40.32% | 18.9% | 31.26% | 25.94% | 55.8% | 23.56% | 155.28% | -20.92% | - |
| EBITDA | 577.07M | 563.06M | 476.12M | 363.15M | 301.04M | 219.73M | 186.57M | 150.45M | 139.85M | 111.33M | 110.6M | 90.08M | 94.06M |
| EBITDA Margin % | 21.55% | 22.25% | 22.58% | 19.26% | 20.62% | 19.23% | 20.15% | 17.47% | 19.85% | 25.53% | 26.24% | 25.09% | 32.43% |
| EBITDA Growth % | 18.86% | 18.26% | 31.11% | 20.63% | 37% | 17.78% | 24.01% | 7.58% | 25.61% | 0.66% | 22.78% | -4.23% | - |
| D&A (Non-Cash Add-back) | 14.16M | 28.12M | 29.25M | 26.33M | 22.34M | 21.12M | 19.53M | 23.19M | 38.8M | 46.47M | 58.11M | 69.52M | 68.06M |
| EBIT | 565.71M | 542.38M | 446.87M | 336.82M | 278.7M | 198.62M | 167.04M | 127.26M | 101.05M | 64.5M | 41.34M | 19.43M | 26M |
| Net Interest Income | 7.71M | 0 | 25M | -488K | -2.9M | -105K | 307K | -1.57M | -8.16M | -7.56M | -19.38M | -27.26M | 0 |
| Interest Income | 7.71M | 0 | 25M | 0 | 0 | 0 | 307K | 0 | 0 | 0 | 0 | 0 | 26.46M |
| Interest Expense | 0 | 0 | 0 | 488K | 2.9M | 105K | 0 | 1.57M | 8.16M | 7.56M | 19.38M | 27.26M | 26.46M |
| Other Income/Expense | 8.88M | 7.44M | 29.05M | -1.14M | 4.16M | 3.24M | 1.49M | -2.43M | -7.1M | -7.91M | -30.53M | -28.39M | -47.26M |
| Pretax Income | 571.8M | 542.38M | 475.92M | 335.68M | 282.86M | 201.85M | 168.53M | 124.83M | 93.95M | 56.95M | 21.96M | -7.83M | -21.26M |
| Pretax Margin % | 21.35% | 21.44% | 22.57% | 17.8% | 19.37% | 17.67% | 18.2% | 14.5% | 13.33% | 13.06% | 5.21% | -2.18% | -7.33% |
| Income Tax | 111.4M | 91.25M | 71.54M | 52.87M | 37.49M | 20M | 23.15M | 24.39M | 20.77M | 17.82M | 8.53M | 843K | -5.69M |
| Effective Tax Rate % | 19.48% | 16.82% | 15.03% | 15.75% | 13.25% | 9.91% | 13.74% | 19.54% | 22.1% | 31.3% | 38.86% | -10.77% | 26.76% |
| 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 |
| Net Margin % | 17.19% | 17.83% | 19.17% | 15% | 16.81% | 15.92% | 15.7% | 11.67% | 10.39% | 8.97% | 3.18% | -2.42% | -5.37% |
| Net Income Growth % | 10.57% | 11.56% | 42.99% | 15.26% | 34.93% | 25.08% | 44.74% | 37.25% | 87.07% | 191.41% | 254.79% | 44.3% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 15.90 | 15.28 | 12.63 | 8.88 | 7.28 | 4.81 | 3.84 | 2.67 | 1.97 | 0.98 | 0.37 | -0.28 | -0.53 |
| EPS Growth % | 21.53% | 20.98% | 42.23% | 21.98% | 51.35% | 25.26% | 43.82% | 35.53% | 101.02% | 164.86% | 232.14% | 47.17% | - |
| EPS (Basic) | - | 15.64 | 13.06 | 9.20 | 7.57 | 5.06 | 4.07 | 2.79 | 2.05 | 1.00 | 0.38 | -0.28 | -0.53 |
| Diluted Shares Outstanding | 28.96M | 29.53M | 32.01M | 31.84M | 33.67M | 37.7M | 37.71M | 37.58M | 36.91M | 39.84M | 36.33M | 39.63M | 29.43M |
| Basic Shares Outstanding | 28.45M | 28.85M | 30.96M | 30.72M | 32.39M | 35.86M | 35.63M | 35.88M | 35.55M | 39.06M | 35.69M | 39.63M | 29.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Biotech funding cycle sensitivity
As reported in recent financial statements, Medpace achieved a 26.5% year-over-year revenue increase in 2026Q1, signaling that the company is successfully capturing market share within the SME biotech segment despite broader industry volatility and the cyclical nature of clinical trial funding for pre-profit drug developers.
The acceleration in top-line growth suggests that Medpace's full-service model remains highly attractive to smaller biotech firms that lack internal infrastructure. Investors should monitor whether this growth trajectory can be maintained as the company faces potential competition from larger CROs attempting to penetrate the SME niche.
Based on reported figures, Medpace maintained a gross margin of 27.8% in 2026Q1, reflecting the company's ability to preserve pricing power while managing the inherent volatility of pass-through costs that typically characterize the clinical research organization business model and impact overall profitability metrics.
The consistency in operating margins, which hovered around 20% to 23% over the last ten quarters, indicates a high degree of operational discipline. This stability appears to be a direct result of the company's centralized hub model, which minimizes administrative overhead compared to more decentralized, acquisition-heavy industry peers.
According to quarterly income statements, Medpace has demonstrated significant operating leverage, with operating income scaling effectively alongside revenue growth, reaching $141.5 million in 2026Q1, which suggests that the company's centralized operational structure allows for efficient absorption of increased project volume without proportional increases in administrative expenses.
The ability to scale operating income while keeping SG&A expenses relatively contained highlights the efficiency of the company's organic growth strategy. This trend warrants further investigation to determine if the company can continue to optimize its cost base as it expands its global footprint.
As indicated by the income statement data, Medpace's net income has shown consistent growth, reaching $123.9 million in 2026Q1, supported by a disciplined approach to share repurchases and a notable absence of significant non-operating items that often distort the reported earnings of larger, more acquisitive CRO competitors.
The minimal reliance on stock-based compensation in recent quarters suggests a high quality of earnings, as the company avoids the dilution that often plagues high-growth healthcare service firms. Investors should continue to monitor the impact of share count reductions on EPS growth to ensure that capital allocation remains accretive to long-term shareholder value.
While Medpace has demonstrated strong performance, the potential for margin compression remains a key risk, as evidenced by the 27.8% gross margin in 2026Q1, which sits at the lower end of the recent range and may indicate emerging pricing pressure or rising labor costs.
Short-term volatility in biotech funding cycles could force the company to adjust its project selection, potentially impacting the high-margin, full-service work that currently drives profitability. Investors should remain cautious regarding the sustainability of these margins if the company is forced to compete more aggressively on price to maintain its backlog.
Quick answers to the most common questions about buying MEDP stock.
For fiscal year 2025, Medpace Holdings, Inc. (MEDP) reported total revenue of $2.53B. This represents a 772.4% increase compared to $290.0M in 2014.
Medpace Holdings, Inc. (MEDP) is profitable, generating $451.1M in net income for the fiscal year ending 2025 with a net profit margin of 17.8%.
Medpace Holdings, Inc. (MEDP) reported an operating income of $534.9M, resulting in an operating profit margin of 21.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Medpace Holdings, Inc. (MEDP) generated $760.6M in gross profit for the year, representing a gross profit margin of 30.1%. This demonstrates the company's core pricing power and production efficiency.