AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 2/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Global service capabilities and procurement discounts are established, but neither demonstrates a defensible advantage relative to competitors. The moat verdict remains uncertain.
durability · — · Supplier commitments extend through 2030, but their relative economics and renewal durability are unknown. Operating history does not establish the duration of a competitive advantage.
customer dependency · — · Integrated services could create operational dependency, but an accounting performance obligation does not establish switching friction. Short termination notice limits contractual protection without proving easy provider substitution.
erosion resilience · — · Recent growth supports operating resilience, but resilience of a structural advantage cannot be established. Historical cancellation effects and funding-sensitive customers remain relevant exposures.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The passages disclose negotiated pricing but no observed customer price increases, cuts or comparable-project realization. Revenue growth driven by activity and study mix cannot isolate pricing outcomes; supplier discounts address input costs.
retention · 2/4 · Indirect demand evidence is mixed: first-half net awards increased to $1,414.2 million from $1,120.6 million while revenue grew 21.7%. This supports continuing engagement, but does not identify repeat customers. Ordinary cancellations and historical adverse effects constrain the assessment; no retention rate is inferred.
margin resilience · 2/4 · First-half operating income rose from $239.9 million to $288.3 million, but operating margin eased from approximately 20.6% to 20.4%. This demonstrates broadly maintained profitability with mixed protection, influenced by reimbursed expenses and lower SG&A. It does not establish pricing-led resilience.
contractual freedom · 2/4 · Individual negotiation and upfront fees provide meaningful discretion over initial terms. Predominantly fixed-fee Phase I–IV contracts allocate underpricing and overrun risks to Medpace, while customers generally retain short-notice termination rights. Unilateral repricing freedom is not established.
Predictability99
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 6.93
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.79
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 0.00
- Current ratio (x)
- 0.74
- cashInterestPaid
- 0.00
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- -3.73
- 3-year average SBC / revenue (%)
- 1.22
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation increased across 2023–2025 and again in first-half 2026, supporting investment and repurchases without indebtedness at June 30, 2026. However, 2025 cash repurchases exceeded operating cash less property spending and reduced cash balances. Actual commitments and dilution are disclosed, but buyback value creation is unestablished.
incentive alignment · 2/4 · Approved bonuses reflected financial and individual performance, including reductions for three NEOs. Ownership guidelines and actual equity grants with multiyear vesting support alignment. Actual ownership compliance and executive-specific long-term performance conditions are missing, and not all awards require prolonged vesting.
execution · 3/4 · Strong demonstrated operating execution includes first-half 2026 revenue growth of 21.7%, higher operating income, increased net awards and operating cash flow, alongside multiyear cash generation. Internal filling of approximately 75% of newly filled management roles supports organizational development. Trial quality and delivery timeliness are not directly measured here.
governance · 2/4 · Independent standing committees and documented performance-based compensation decisions provide oversight evidence. Combined CEO/chairman roles, a CEO-owned headquarters landlord and the supermajority requirement disclosed in April 2026 create counterweights. Proposed voting reforms are not treated as adopted, and related-party dealings are not assumed improper.
Evidence
-14- Table of Contents Purchase Commitments The Company has several minimum purchase commitments for project related supplies and support services totaling $29.4 million as of June 30, 2026.
Note 11, Purchase Commitments: commitments at June 30, 2026 · Filed 23/07/2026
In return for the commitment, Medpace receives preferential pricing.
Note 11, Purchase Commitments: preferential pricing · Filed 23/07/2026
The commitments expire at various times through 2030.
Note 11, Purchase Commitments: expiration dates · Filed 23/07/2026
The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials.
Basis of Presentation: full-service clinical development capabilities · Filed 23/07/2026
Our global platform includes approximately 6,500 employees across 46 countries as of June 30, 2026, providing our customers with broad access to diverse markets and patient populations as well as local regulatory expertise and market knowledge.
MD&A, Business Overview: global platform at June 30, 2026 · Filed 23/07/2026
As part of this full service approach, the Company utilizes centralized systems, customer interface technology, support functions and processes that cross service offerings and align resources to deliver efficient clinical trial services.
Notes to financial statements: centralized full-service operating systems · Filed 13/02/2024
Moreover, once an award goes to contract, most of our customers for clinical trial services can terminate our contracts without cause upon 30 days’ notice.
Risk Factors: termination without cause upon 30 days' notice · Filed 10/02/2026
Historically, cancellations and delays have negatively impacted our operating results.
Risk Factors: historical impact of cancellations and delays · Filed 10/02/2026
Of the 182 management-level roles that were newly filled between October 1, 2024 and September 30, 2025, approximately 75% of these roles were filled by our pipeline of internal talent.
Human Capital, Recruitment and Retention: internal management appointments · Filed 10/02/2026
Substantially all of our customer contracts consist of a single performance obligation, as the promise to transfer the individual services defined in the contracts are not separately identifiable from other promises in the contract, and therefore not distinct.
MD&A, How We Generate Revenue: integrated contractual performance obligation · Filed 23/07/2026
The industry in which we operate in is highly competitive from a business and human resource perspective.
Executive Compensation, Executive Summary: business and personnel competition · Filed 01/04/2026
Clinical trials can be costly and for the year ended December 31, 2025, 82% and 13% of our net revenue was derived from small biopharmaceutical companies and mid-sized biopharmaceutical companies, respectively, which may have limited access to capital.
Risk Factors: small and mid-sized biopharmaceutical customer exposure · Filed 10/02/2026
Dollars per Euro: 1.16 1.13 1.17 1.09 Results of Operations Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Three Months Ended June 30, (Amounts in thousands, except percentages) 2026 2025 Change % Change Revenue, net $ 707,331 $ 603,311 $ 104,020 17.2 % Direct service costs, excluding depreciation and amortization 202,555 185,826 16,729 9.0 % Reimbursed out-of-pocket expenses 303,139 237,472 65,667 27.7 % Total direct costs 505,694 423,298 82,396 19.5 % Selling, general and administrative 48,103 46,664 1,439 3.1 % Depreciation 6,555 6,777 (222) (3.3) % Amortization 155 237 (82) (34.6) % Total operating expenses 560,507 476,976 83,531 17.5 % Income from operations 146,824 126,335 20,489 Miscellaneous expense, net (147) (2,875) 2,728 Interest income, net 4,986 1,078 3,908 Income before income taxes 151,663 124,538 27,125 Income tax provision 30,301 34,278 (3,977) Net income $ 121,362 $ 90,260 $ 31,102 -22- Table of Contents Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Six Months Ended June 30, (Amounts in thousands, except percentages) 2026 2025 Change % Change Revenue, net $ 1,413,935 $ 1,161,881 $ 252,054 21.7 % Direct service costs, excluding depreciation and amortization 400,829 363,642 37,187 10.2 % Reimbursed out-of-pocket expenses 615,143 439,876 175,267 39.8 % Total direct costs 1,015,972 803,518 212,454 26.4 % Selling, general and administrative 96,020 104,561 (8,541) (8.2) % Depreciation 13,306 13,471 (165) (1.2) % Amortization 310 473 (163) (34.5) % Total operating expenses 1,125,608 922,023 203,585 22.1 % Income from operations 288,327 239,858 48,469 Miscellaneous income (expense), net 824 (4,691) 5,515 Interest income, net 10,103 7,541 2,562 Income before income taxes 299,254 242,708 56,546 Income tax provision 54,022 37,853 16,169 Net income $ 245,232 $ 204,855 $ 40,377 Total revenue Total revenue increased by $104.0 million, to $707.3 million for the three months ended June 30, 2026, from $603.3 million for the three months ended June 30, 2025.
MD&A, Results of Operations: second-quarter and first-half 2026 comparisons · Filed 23/07/2026
Net new business awards were $795.7 million and $1,414.2 million for the three and six months ended June 30, 2026, respectively.
MD&A, New Business Awards: 2026 net awards · Filed 23/07/2026
Net new business awards were $620.5 million and $1,120.6 million for the three and six months ended June 30, 2025, respectively.
MD&A, New Business Awards: comparable 2025 net awards · Filed 23/07/2026
These contracts are individually priced and negotiated based on the anticipated project scope, including the complexity of the project and the performance risks inherent in the project.
MD&A, How We Generate Revenue: individually negotiated pricing · Filed 23/07/2026
The majority of our contracts are structured with an upfront fee that is collected at the time of contract signing, and the balance of the fee is collected over the duration of the contract either through an arranged billing schedule or upon completion of certain performance targets or defined milestones.
MD&A, How We Generate Revenue: upfront fees and collection schedules · Filed 23/07/2026
The majority of our Phase I–IV contracts are fixed-fee contracts.
Risk Factors: prevalence of fixed-fee Phase I–IV contracts · Filed 10/02/2026
We bear the financial risk if we initially underprice our contracts or otherwise overrun our cost estimates.
Risk Factors: underpricing and cost-overrun exposure · Filed 10/02/2026
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) Year Ended December 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 451,123 $ 404,386 $ 282,810 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 27,178 27,808 24,129 Amortization 946 1,443 2,199 Stock-based compensation expense 34,786 25,514 20,516 Noncash lease expense 23,014 23,124 19,646 Deferred income tax provision (benefit) 80,773 (26,632) (25,117) Other (875) (4,009) 2,705 Changes in assets and liabilities: Accounts receivable and unbilled, net (106,215) 2,242 (48,282) Prepaid expenses and other current assets (27,101) (12,090) 2,986 Accounts payable 2,629 (2,965) 1,051 Accrued expenses 97,083 16,882 82,080 Advanced billings 143,805 150,725 97,131 Lease liabilities (25,160) (21,407) (18,873) Other assets and liabilities, net 11,237 23,794 (9,607) Net cash provided by operating activities 713,223 608,815 433,374 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment expenditures (31,356) (36,548) (36,648) Other 216 8,240 2,019 Net cash used in investing activities (31,140) (28,308) (34,629) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from stock option exercises 57,001 15,858 11,378 Repurchases of common stock (917,389) (169,867) (144,020) Proceeds from revolving loan — — 105,000 Payments on revolving loan — — (155,000) Net cash used in financing activities (860,388) (154,009) (182,642) EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 5,918 (2,511) 1,081 (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (172,387) 423,987 217,184 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period 669,436 245,449 28,265 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 497,049 $ 669,436 $ 245,449 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION— Cash paid during the period for income taxes $ 39,719 $ 83,567 $ 76,353 Cash paid during the period for interest $ — $ 171 $ 3,056 Acquisition of property and equipment—non-cash $ 1,645 $ 4,984 $ 5,254 Share repurchases—non-cash $ — $ 4,347 $ — See notes to consolidated financial statements.
Consolidated Statements of Cash Flows: 2023–2025 operating cash, investment and financing · Filed 10/02/2026
Six Months Ended June 30, Cash Flows (Amounts in thousands) 2026 2025 Net cash provided by operating activities $ 313,799 $ 274,362 Net cash used in investing activities (30,633) (16,007) Net cash used in financing activities (275,670) (886,530) Effect of exchange rates on cash, cash equivalents, and restricted cash (1,857) 5,069 Increase (decrease) in cash, cash equivalents, and restricted cash $ 5,639 $ (623,106) Cash Flow from Operating Activities Cash flows from operations are driven mainly by net income, deferred income tax provision, depreciation, noncash lease expense, stock-based compensation expense and net movement in advanced billings, accrued expenses, accounts receivable and unbilled, net, prepaid expenses and other current assets, lease liabilities and other assets and liabilities, net.
MD&A, Cash Flows: first-half 2026 and 2025 cash generation · Filed 23/07/2026
During the three and six months ended June 30, 2026, the Company repurchased 705,616 shares for $294.7 million.
Note 1, Share Repurchases: first-half 2026 repurchases · Filed 23/07/2026
Indebtedness As of June 30, 2026, we had no indebtedness.
MD&A, Indebtedness: June 30, 2026 · Filed 23/07/2026
The Compensation Committee affirmed corporate incentive goals and approved the payment of cash bonuses to our NEOs at a level that reflected performance against the financial guidance the Company provided in February 2025 with three of the NEOs having their short-term incentive compensation negatively impacted by performance against individual objectives.
Executive Compensation: approved 2025 bonuses and individual performance adjustments · Filed 01/04/2026
Medpace stock ownership guidelines for all NEOs require holdings to equal three times their respective base salary, as described below.
Executive Compensation: NEO stock ownership guidelines · Filed 01/04/2026
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 parties 16,780 16,294 Other current liabilities $ 24,012 $ 23,209 Operating lease liabilities - related parties 73,625 77,344 Operating lease liabilities - non-related parties 46,475 36,299 Operating lease liabilities 120,100 113,643 Total operating lease liabilities $ 144,112 $ 136,852 Weighted Average Remaining Lease Term (years) Operating leases 9.0 9.1 Weighted Average Discount Rate Operating leases 5.7 % 5.7 % -12- Table of Contents Lease payments due related to lease liabilities as of June 30, 2026 were as follows (in thousands): Related Party Operating Leases Non-Related Parties Operating Leases Total Operating Leases Remainder of 2026 $ 5,928 $ 9,223 $ 15,151 2027 10,839 18,469 29,308 2028 8,609 13,549 22,158 2029 8,824 10,258 19,082 2030 9,045 6,827 15,872 Later years 73,800 14,141 87,941 Total lease payments 117,045 72,467 189,512 Less: imputed interest (36,188) (9,212) (45,400) Total $ 80,857 $ 63,255 $ 144,112 (9) Shareholders’ Equity and Stock-Based Compensation The Company granted 205,770 awards to employees under the 2016 Amended and Restated Incentive Award Plan during the six months ended June 30, 2026, consisting of 104,350 RSU and 56,420 stock options having five year vesting schedules and 15,000 RSU and 30,000 stock options having two year vesting schedules.
Notes 8–9: lease commitments and actual employee equity grants with vesting schedules · Filed 23/07/2026
All of the members of each of the Board’s three standing committees are independent as defined under the NASDAQ rules.
Corporate Governance, Committees of the Board: committee independence · Filed 01/04/2026
Leased Real Estate Campus Headquarters Leases The Company entered into an operating lease for the occupancy of office space in a building in Cincinnati, Ohio with an entity that is wholly owned by the chief executive officer of the Company.
Related Party Transactions: headquarters lease with CEO-owned entity · Filed 23/07/2026
51 Table of Contents PROPOSAL 5 Amendment of Certificate of Incorporation to Remove Supermajority Voting Requirements The Board has unanimously approved and declared advisable, and recommends that stockholders approve, amendments to Medpace’s Restated Certificate of Incorporation (the “Certificate”) to eliminate the current requirement in the Certificate for an affirmative vote of the holders representing at least 66-2/3% of the votes eligible to be cast in an election of directors to approve certain actions, which amendments will implement the default voting standards provided under Delaware law.
Proposal 5: existing supermajority requirement and proposed removal · Filed 01/04/2026
TROENDLE Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) August J.
Signatures: combined CEO and chairman roles · Filed 10/02/2026
Changes in revenue from period to period are driven primarily by new business volume and task order execution activity, project cancellations, and the mix of active studies during a given period that can vary based on therapeutic area and or study life cycle stage.
MD&A, Revenue: volume, execution, cancellations and study mix as revenue drivers · Filed 23/04/2026
Award Activity The following table sets forth the Company’s stock option activity: Six Months Ended June 30, 2026 Stock Options Weighted Average Exercise Price Outstanding - beginning of period 618,681 $ 211.29 Granted 93,080 $ 410.92 Exercised (136,377) $ 141.02 Cancelled/Forfeited/Expired (10,857) $ 329.77 Outstanding - end of period 564,527 $ 259.14 Exercisable - end of period 425,041 $ 216.01 The following table sets forth the Company’s RSA/RSU activity: Six Months Ended June 30, 2026 Shares/Units Outstanding and unvested - beginning of period 324,517 Granted 119,350 Vested (109,352) Forfeited (22,680) Outstanding and unvested - end of period 311,835 -13- Table of Contents Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock-based compensation awards is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Total direct costs $ 2,814 $ 3,420 $ 5,815 $ 6,447 Selling, general and administrative 1,534 2,531 3,451 16,396 Total stock-based compensation expense $ 4,348 $ 5,951 $ 9,266 $ 22,843 (10) Income Taxes The Company’s effective income tax rate was 20.0% and 27.5% for the three months ended June 30, 2026 and 2025, respectively.
Note 9, Award Activity: exercised options, vested awards and compensation expense · Filed 23/07/2026
