Q2 2026 Medpace Holdings Inc Earnings Call Transcript
Key Points
- Medpace Holdings Inc (MEDP) reported a strong business environment in Q2 2026, with cancellations being well-behaved and supporting a record quarter for net bookings.
- Revenue for Q2 2026 was $707.3 million, representing a year-over-year increase of 17.2%.
- EBITDA for the second quarter increased by 17.6% compared to the same period in 2025, with a margin of 21.7%.
- Net income for Q2 2026 increased by 34.5% compared to the prior year, driven by a lower effective tax rate and higher interest income.
- The company has a strong pipeline, with net new business awards increasing by 28.2% year-over-year, resulting in a backlog of approximately $3 billion.
- Initial award notifications declined sequentially from a very strong Q1, indicating potential volatility in future bookings.
- Customer concentration remains high, with the top five and top ten customers representing 31% and 40% of the last 12 months' revenue, respectively.
- The company faces challenges with cancellations, which are unpredictable and can impact net bookings.
- There is uncertainty regarding the future mix of bookings, particularly with the shift from metabolic to oncology programs, which may affect backlog conversion rates.
- Direct service costs are expected to remain high, with a projected range of 41% to 42% of revenue in the second half of the year.
Good morning, and thank you for joining Medpace's second-quarter 2026 earnings conference call.
Also on the call today is our CEO, August Strundle, and our CFO, Kevin Brady.
Before we begin, I would like to remind you that our remarks and responses to your questions during this teleconference may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995. These statements involve inherent assumptions with known and unknown risks and uncertainties, as well as other important factors that could cause actual results to differ materially from our current expectations. These factors are discussed in our Form 10-K and other filings with the SEC.
Please note that we assume no obligation to update forward-looking statements even if estimates change.
Accordingly, you should not rely on any of today's forward-looking statements as representing our views as of any date after today.
During this call, we will also be referring to certain non-GAAP financial measures.
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