Medpace Holdings Inc. (NASDAQ:MEDP) is trading higher on Thursday after the company released third-quarter earnings.
The clinical contract research organization reported earnings of $3.86, beating the consensus of $3.52. Sales reached $659.9 million, surpassing the consensus of $640.99 million.
Sales increased 23.7% year over year. On a constant currency basis, revenue jumped 23.4%.
Backlog as of September 30, 2025, increased 2.5% to around $3 billion. Net new business awards were $789.6 million, representing a net book-to-bill ratio of 1.20x for the third quarter of 2025, as compared to $533.7 million a year ago.
EBITDA for the third quarter of 2025 increased 24.9% to $148.4 million, or 22.5% of revenue, compared to $118.8 million, or 22.3% a year ago.
Guidance: Medpace raised fiscal 2025 earnings per share from $13.76-$14.53 to $14.60-$14.86 versus consensus of $14.07.
The consensus increased 2025 sales guidance from $2.42 billion-$2.52 billion to $2.48 billion-$2.53 billion compared to the consensus of $2.46 billion.
Analyst Take
William Blair said the highlight of the second quarter print was the massive bookings number recorded in the period.
Analyst Max Smock stated on Wednesday that, post-second-quarter results, management appeared more confident than previously suggested that book-to-bill would return to 1.15x in the second half.
Despite rising optimism in biotech funding, he noted surprise at the sharp rebound in bookings, with net new business awards up about 30% sequentially and 60% from the first quarter of 2025.
“While this print supports our view that biotech demand has bottomed and is starting to move in the right direction, it does seem like Medpace is also benefiting from several large wins in the metabolic (i.e., GLP-1) space…,” Smock added.
Price Action: MEDP stock is up 7.08% at $585.43 at the last check on Thursday.
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