Medpace Holdings, Inc. Q1 FY2026 earnings call

Key managerial messages include acknowledging Jesse Geiger's 18.5 years of service, discussing Q1 results with cancellations, net bookings, RFPs, strong initial reward notifications and win rate, EBITDA and net income figures, customer concentration, cash flow from operating activity, and net day sales outstanding.

Revenue for the first quarter of 2026 was $706.6 million, representing a year-over-year increase of 26.5%. EBITDA was $149.4 million, up 25.9% compared to the prior year. Net income was $123.9 million, up 8.1% compared to the prior year period. Ending backlog as of March 31st, 2026 was approximately $2.9 billion, an increase of 2.9% from the prior year, with approximately $1.94 billion of backlog projected to convert to revenue in the next 12 months.

2026 guidance ranges for revenue, EBITDA, net income, and EPS are unchanged from the prior quarter based on an effective tax rate of 19 to 20% and interest income of $27.5 million. There are no additional share purchases in the guidance.

Discussions on cancellations being a factor, impact of M&A on ongoing work, variability in RFP trends, AI investment needing significant outlay before net benefit, and potential risks from backlog conversion issues.

First question from Max Muck on cancellations dynamics, August's response; David Windley's question on metabolic cancellations and GLP-1 exposure, August's response; Anne Hines' question on gross bookings and M&A exposure, responses; Charles Reilly's questions on cancellations mix and pass-through revenues; Eric Coldwell's questions on book-to-bill and backlog decline; Jalendra Singh's questions on RFP trends and AI impact; Luke Sergat's question on large pharma focus; Sean Dodge's question on win rate initiatives and headcount; Michael Attorney's question on AI commercial usage; Ryan Halstead's questions on SG&A and cancellations restart; Eric Oldwell's questions on book-to-bill and pre-backlog; Justin Bowers' questions on gross vs net bookings and award recognition; David Windley's follow-up questions on award to booking cadence and commitment to the company