Strong Revenue Growth
Q1 2026 revenue of $706.6 million, up 26.5% year-over-year (25.8% constant currency).
Medpace Holdings
· MEDP
April 22nd, 2026
Summary
- Earnings Call Date:
- 2026-04-22
- Change Since:
- +0.85%
- Next Earnings Date:
- 2026-07-22
Earnings Call Sentiment
NeutralThe call showed strong underlying financial performance in Q1 — double-digit revenue and EBITDA growth, healthy cash generation, and a sizable backlog — and management reaffirmed full-year guidance. However, elevated and persistent cancellations, weaker gross bookings/RFPs and a multi-quarter decline in beyond-12-month backlog coverage are meaningful near- to medium-term risks to sequential growth. Management pointed to a good win rate and initiatives to improve pipeline conversion, but the cadence and durability of that improvement remain uncertain.
Company Guidance
Management reconfirmed its 2026 guidance ranges for revenue, EBITDA, net income and EPS (unchanged from the prior quarter), assuming an effective tax rate of 19–20% and $27.5M of interest income, with no additional share repurchases in guidance; underlying Q1 results that support the outlook included revenue of $706.6M (+26.5% YoY; +25.8% constant currency), EBITDA $149.4M (+25.9%; +28.6% CC) with a 21.1% margin, net income $123.9M (+8.1%), diluted EPS $4.28, operating cash flow $151.8M, net new awards of $618.4M (net book‑to‑bill 0.88), ending backlog of ~$2.9B (+2.9% YoY) with ~$1.94B expected to convert to revenue in the next 12 months (Q1 backlog conversion 23.3%), cash of $652.7M, negative net DSO of 58.8 days, and top‑5/top‑10 customer concentration of roughly 28%/37% of LTM revenue.
Robust EBITDA Expansion
EBITDA of $149.4 million, up 25.9% year-over-year (28.6% on a constant currency basis); EBITDA margin broadly stable at 21.1% vs 21.2% prior year.
Healthy Net Bookings vs Prior Year
Net new business awards entering backlog of $618.4 million, up 23.7% year-over-year, demonstrating continued demand (net book-to-bill 0.88 due to higher cancellations and timing).
Large Backlog with Near-Term Convertibility
Ending backlog approximately $2.9 billion (+2.9% year-over-year) with ~$1.94 billion projected to convert to revenue in the next 12 months; Q1 backlog conversion was 23.3% of beginning backlog.
Strong Cash Generation and Liquidity
Generated $151.8 million of cash flow from operating activities in Q1 and ended the quarter with $652.7 million in cash; net days sales outstanding was negative 58.8 days.
Solid Per-Share and Net Income Performance
Net income of $123.9 million (+8.1% YoY) and diluted EPS of $4.28 vs $3.67 in prior year.
Reaffirmed Full-Year Guidance and Capital Flexibility
2026 guidance for revenue, EBITDA, net income and EPS unchanged; management also noted existing share repurchase authorization (just over $800M) and will continue execution, though no repurchases are included in guidance.
Win Rate and Opportunity Quality Called Out as Strong
Management highlighted strong initial award notifications and win rate and described the quality of opportunity flow as 'good,' and confirmed active initiatives to improve win rate.
Operator
Good day, ladies and gentlemen, and welcome to the Medpace First Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Lauren Morris, Medpace's Director of Investor Relations. You may begin.
Lauren Morris
Good morning, and thank you for joining Medpace's First Quarter 2026 Earnings Conference Call. Also on the call today is our CEO, August Troendle; our President, Jesse Geiger; 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 1995. 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.
These non-GAAP measures are not superior to or a replacement for the comparable GAAP measures, but we believe these measures help investors gain a more complete understanding of results. A reconciliation of such non-GAAP financial measur...
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