# Medpace Holdings Inc. (MEDP) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/MEDP/thesis · /stocks/MEDP/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: MEDP
step: "04"
title: Financial Snapshot — 3-Year P&L Summary and Key Metrics
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (FY2021–FY2023)

| Metric ($M) | FY2021 | FY2022 | FY2023 | 3yr CAGR |
|------------|--------|--------|--------|----------|
| Revenue | $1,132.2 | $1,659.2 | $2,138.3 | ~37% |
| Cost of Revenue | $828.1 | $1,195.9 | $1,534.3 | — |
| **Gross Profit** | **$304.1** | **$463.3** | **$604.0** | ~41% |
| Gross Margin | 26.9% | 27.9% | 28.2% | — |
| Operating Expenses (SG&A) | $58.4 | $78.1 | $95.8 | — |
| **Operating Income (EBIT)** | **$245.7** | **$385.2** | **$508.2** | ~44% |
| EBIT Margin | 21.7% | 23.2% | 23.8% | — |
| D&A | ~$32 | ~$38 | ~$44 | — |
| **EBITDA (est.)** | **~$278** | **~$423** | **~$552** | ~41% |
| EBITDA Margin | ~24.5% | ~25.5% | ~25.8% | — |
| Interest (net) | $(1.8) | $(3.1) | $(11.8) | — |
| Other Income/Expense | $5.2 | $12.0 | $20.4 | — |
| Pre-tax Income | $249.1 | $394.1 | $516.8 | — |
| Income Tax Expense | $(56.1) | $(90.5) | $(106.7) | — |
| Effective Tax Rate | 22.5% | 23.0% | 20.6% | — |
| **Net Income** | **$193.0** | **$303.6** | **$410.1** | ~46% |
| Net Margin | 17.0% | 18.3% | 19.2% | — |
| Diluted Shares (M) | 23.5 | 22.1 | 20.7 | — |
| **EPS (Diluted)** | **$8.21** | **$13.73** | **$19.80** | ~55% |

Note: Diluted EPS growth significantly exceeded net income growth due to aggressive share buyback program reducing share count.

#### Income Statement — Adjusted View (Excluding Pass-Throughs)

Analysts often examine Medpace on a "direct revenue" or "service revenue" basis to normalize for reimbursable pass-throughs:

| Metric ($M) | FY2021 | FY2022 | FY2023 |
|------------|--------|--------|--------|
| Service Revenue (est.) | $921 | $1,329 | $1,714 |
| Direct Costs (est.) | $619 | $868 | $1,112 |
| Service Gross Profit | ~$302 | ~$461 | ~$602 |
| Service Gross Margin | ~32.8% | ~34.7% | ~35.1% |

On a service-revenue basis, gross margins are consistently 33-35% and expanding modestly — indicative of strong operating leverage.

#### EBITDA Margin vs. CRO Peers (FY2023)

| Company | EBITDA Margin | Revenue ($B) |
|---------|--------------|-------------|
| **Medpace (MEDP)** | **~26%** | **$2.1B** |
| ICON (ICLR) | ~17-18% | ~$8B |
| IQVIA (IQV) | ~20-21% | ~$15B |
| Fortrea (FTRE) | ~10-12% | ~$2.5B |
| Charles River (CRL) | ~22-23% | ~$4B |

Medpace's margin leadership among mid-sized CROs reflects its: (1) internal lab, (2) low SG&A from minimal sales infrastructure, (3) lean operational model, (4) Cincinnati cost base.

#### Profitability Progression

| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|--------|--------|--------|--------|---------|
| Revenue Growth | 32.7% | 46.6% | 28.9% | ~11-13% |
| Gross Margin | 26.9% | 27.9% | 28.2% | ~28-29% |
| EBIT Margin | 21.7% | 23.2% | 23.8% | ~23-24% |
| EBITDA Margin | ~24.5% | ~25.5% | ~25.8% | ~26-27% |
| Net Margin | 17.0% | 18.3% | 19.2% | ~19-20% |
| EPS Diluted | $8.21 | $13.73 | $19.80 | ~$22-24 |

**Key insight**: Margins have expanded steadily even as revenue growth decelerated. This demonstrates operating leverage — Medpace's cost structure does not scale proportionally with revenue, and SG&A has been controlled tightly.

#### Cash Flow vs. Earnings

| Metric ($M) | FY2021 | FY2022 | FY2023 |
|------------|--------|--------|--------|
| Net Income | $193 | $304 | $410 |
| D&A | $32 | $38 | $44 |
| SBC | $23 | $28 | $33 |
| Working Capital Changes | $(45) | $(55) | $(30) |
| Other | $10 | $15 | $12 |
| **Operating Cash Flow** | **~$213** | **~$330** | **~$469** |
| Capex | $(37) | $(42) | $(48) |
| **Free Cash Flow** | **~$176** | **~$288** | **~$421** |
| FCF Margin | ~15.5% | ~17.4% | ~19.7% |
| FCF / Net Income | ~91% | ~95% | ~103% |

Exceptional cash conversion — FCF routinely approaches or exceeds 100% of net income. Working capital is a modest drag as the business grows, but the model is capital-light with minimal capex requirements.

#### Per Share Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024E |
|--------|--------|--------|--------|---------|
| EPS (Diluted) | $8.21 | $13.73 | $19.80 | ~$22-24 |
| FCF per Share | ~$7.49 | ~$13.03 | ~$20.34 | ~$23-26 |
| Book Value per Share | ~$13 | ~$8 | ~$5 | ~$3-4 |

Note: Book value per share is very low due to aggressive buybacks exceeding retained earnings. The business is running with a negative or near-zero book equity — a common pattern for high-ROIC businesses that return capital aggressively.

#### Return Metrics Summary

| Metric | FY2021 | FY2022 | FY2023 |
|--------|--------|--------|--------|
| ROIC (est.) | ~35% | ~55% | ~65%+ |
| ROE (NM — negative equity) | NM | NM | NM |
| ROA | ~17% | ~22% | ~25% |

ROIC is extremely high because the business requires minimal invested capital — no significant fixed assets, no inventory, working capital is lean. Detailed ROIC analysis in Step 09.

#### Tax Rate

Medpace's effective tax rate has generally been in the 20-23% range. The company benefits from excess tax benefits on stock option exercises (reduces effective rate in high-award-exercise years). R&D tax credits also provide some benefit given the nature of the business. Tax rate is expected to remain in the 20-22% range going forward, absent legislative changes.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/MEDP/fundamental

## Navigation

- Overview: /stocks/MEDP
- Financials (this page): /stocks/MEDP/financials
- Thesis: /stocks/MEDP/thesis
- Investment Memo: /stocks/MEDP/memo
- Coverage universe: /stocks