Financial Analysis

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 June 30, 2026 and December 31, 2025. 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 June 30, 2026. On April 6, 2026, Jan Durbin filed a class action complaint in the United States District Court for the Southern District of Ohio (Case No. 1:26-cv-00346) against Medpace Holdings, Inc., August J. Troendle, Jesse J. Geiger, and Kevin M. Brady alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 promulgated under Section 10(b). Plaintiff alleges that defendants made materially false and misleading statements related to the Companys book-to-bill ratio to deceive the market in violation of the Exchange Act. Plaintiff seeks unspecified damages, interest, attorneys fees, expert fees and other costs. A liability has not been recognized related to this matter because any potential loss is not currently probable or reasonab …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 June 30, 2026 and December 31, 2025, the Company had no indebtedness under the Credit Facility. 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-p …

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The following table disaggregates the Companys revenue by major source (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Therapeutic Area Metabolic $ 219,067 $ 147,873 $ 456,625 $ 295,888 Oncology 209,372 188,558 410,611 359,034 Other 98,279 118,062 191,597 213,898 Central Nervous System 82,858 61,129 163,065 116,030 Cardiology 59,982 58,584 116,243 116,863 AVAI 37,773 29,105 75,794 60,168 Total revenue $ 707,331 $ 603,311 $ 1,413,935 $ 1,161,881 …

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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 managements 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 June 30, 2026 and December 31, 2025. There were no material transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2026 and 2025. …

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Income Taxes The Companys effective income tax rate was 20.0% and 27.5% for the three months ended June 30, 2026 and 2025, respectively. The Company's effective income tax rate was 18.1% and 15.6% for the six months ended June 30, 2026 and 2025, respectively. The Companys effective income tax rate for the three months ended June 30, 2026 varied from the U.S. statutory rate of 21% primarily due to the impact of the state taxes which was favorably offset by excess tax benefits recognized from share-based compensation, tax benefits related to Foreign Derived Deduction Eligible Income and benefits from uncertain tax positions. The Companys effective income tax rate for the six months ended June 30, 2026 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 and tax benefits related to Foreign Derived Deduction Eligible Income. 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 six months ended June 30, 2026. …

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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 Companys 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating lease cost $ 8,041 $ 7,688 $ 15,783 $ 15,753 Variable lease cost $ 3,430 $ 2,819 $ 6,820 $ 5,831 Supplemental cash flow information related to the leases was as follows (in thousands): Six Months Ended June 30, 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,820 $ 13,023 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 20,892 $ 8,202 Supplemental balance sheet information related to the leases was as follows (in thousands): As of June 30, 2026 December 31, 2025 Operating lease right-of-use assets - related parties $ 65,371 $ 68,416 Operating lease right-of-use assets - non-related parties 60,478 49,399 Operating lease right-of-use assets $ 125,849 $ 117,815 Other current liabilities - related parties 7,232 6,915 Other current liabilities - non-related part …

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"Recently Issued Accounting Pronouncements 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 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. In December 2025, the FASB issued ASU 2025-10, ""Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities"" which e …

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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 existed at June 30, 2026 and December 31, 2025, and 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 LIBs 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 $1.2 million and $1.7 million during the three months ended June 30, 2026 and 2025, respectively, and $2.4 million and $3.9 million during the six months ended June 30, 2026 and 2025, respectively, in the Companys condensed consolidated statements of operations. As of June 30, 2026 and December 31, 2025, the Company had Advanced billings from LIB of $7.9 million and $8.1 million, respectively, in the condensed consolidated balance sheets. As of June 30, 2026 and December 31 …

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Contract Assets and Contract Liabilities Contract assets and liabilities are reflected in the Companys condensed consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Companys 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 June 30, 2026 December 31, 2025 Accounts receivable $ 420,560 $ 376,755 Unbilled receivables 21,265 25,352 Less: allowance for doubtful accounts (28) (29) Total accounts receivable and unbilled, net $ 441,797 $ 402,078 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 June 30, 2026 December 31, 2025 Advanced billings $ 904,722 $ 854,390 As of June 30, 2026 and December 31, 2025, the Company …

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Segment Disclosures Information about the one reportable segment, significant segment expenses and a reconciliation to condensed consolidated net income is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue, net $ 707,331 $ 603,311 $ 1,413,935 $ 1,161,881 Operating expenses: Direct service costs, excluding depreciation and amortization - Employee compensation 163,089 147,942 327,692 291,869 Direct service costs, excluding depreciation and amortization - Other segment items (a) 39,466 37,884 73,137 71,773 Reimbursed out-of-pocket expenses 303,139 237,472 615,143 439,876 Total direct costs 505,694 423,298 1,015,972 803,518 Selling, general and administrative 48,103 46,664 96,020 104,561 Depreciation 6,555 6,777 13,306 13,471 Amortization 155 237 310 473 Total operating expenses 560,507 476,976 1,125,608 922,023 Income from operations 146,824 126,335 288,327 239,858 Other income (expense), net: Miscellaneous (expense) income, net (147) (2,875) 824 (4,691) Interest income, net 4,986 1,078 10,103 7,541 Total other income (expense), net 4,839 (1,797) 10,927 2,850 Income before income taxes 151,663 124,538 299,254 242,708 Income tax provision 30,301 34,278 54,022 37,853 Segment net income $ 121,362 $ 90,260 $ 245,232 $ 204,855 Reconciliation of profit or loss Adjustments and reconciling items Condensed consolidated net income $ 121,362 $ 90,260 $ 245,232 $ 204,855 (a) Direct service costs, excluding depreciation and amortizat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing