Q4 2025 FINANCIAL RESULTS FEBRUARY 9, 2026 FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward- looking statements, including without limitation, statements regarding our forecasted financial results and the effective tax rate ...

Revenue Growth - Revenue for Q4 2025 increased 32.0% to $708.5 million, compared to $536.6 million in Q4 2024, with a backlog conversion rate of 23.6%[3][8] - Full year 2025 revenue rose 20.0% to $2,530.2 million from $2,109.1 million in 2024[10] - Revenue for Q4 2025 reached $708.45 million, a 32% increase from $536.59 million in Q4 2024[28] Business Awards - Net new business awards for Q4 2025 were $736.6 million, a 39.1% increase from $529.7 million in Q4 2024, resulting in a net book-to-bill ratio of 1.04x[4][8] - For the full year 2025, net new business awards totaled $2,646.8 million, with a net book-to-bill ratio of 1.05x, compared to $2,230.0 million in 2024[11] Net Income - GAAP net income for Q4 2025 was $135.1 million, or $4.67 per diluted share, compared to $117.0 million, or $3.67 per diluted share, in Q4 2024, with a net income margin of 19.1%[6][8] - GAAP net income for the full year 2025 was $451.1 million, or $15.28 per diluted share, versus $404.4 million, or $12.63 per diluted share, in 2024, with a net income margin of 17.8%[12] - Net income for the twelve months ended December 31, 2025, was $451.12 million, up 11.5% from $404.39 million in 2024[28] EBITDA Performance - EBITDA for Q4 2025 increased 20.0% to $160.2 million, representing 22.6% of revenue, compared to $133.5 million, or 24.9% of revenue, in Q4 2024[7][8] - EBITDA for the full year 2025 increased 16.1% to $557.7 million, or 22.0% of revenue, compared to $480.2 million, or 22.8% of revenue, in 2024[13] - EBITDA for Q4 2025 was $160.24 million, representing a 20% increase from $133.51 million in Q4 2024[32] Financial Guidance - The company forecasts 2026 revenue between $2.755 billion and $2.855 billion, representing growth of 8.9% to 12.8% over 2025 revenue[15] - GAAP net income for 2026 is projected to be between $487.0 million and $511.0 million, with diluted earnings per share expected to range from $16.68 to $17.50[15] - The company provided guidance for 2026 net income between $487 million and $511 million, with diluted earnings per share projected between $16.68 and $17.50[33] Operating Expenses and Liabilities - Total operating expenses for 2025 were $1.995 billion, compared to $1.662 billion in 2024, reflecting a 20% increase[28] - Total liabilities increased to $1.516 billion in 2025 from $1.275 billion in 2024, indicating a rise in financial obligations[30] Cash and Advanced Billings - Cash and cash equivalents decreased to $497.05 million as of December 31, 2025, from $669.44 million in 2024[30] - Advanced billings increased to $854.39 million in 2025, up from $710.59 million in 2024, indicating strong future revenue potential[30] Stock-Based Compensation - Stock-based compensation expense rose to $34.79 million in 2025, compared to $25.51 million in 2024, reflecting increased employee incentives[31] Margin Analysis - The net income margin for Q4 2025 was 19.1%, down from 21.8% in Q4 2024, while the EBITDA margin was 22.6%, down from 24.9%[32]

CINCINNATI--(BUSINESS WIRE)--Medpace Holdings, Inc. (Nasdaq: MEDP) ("Medpace†) today announced financial results for the fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Financial Results Revenue for the three months ended December 31, 2025 increased 32.0% to $708.5 million, compared to $536.6 million for the comparable prior-year period. On a constant currency basis, revenue for the fourth quarter of 2025 increased 31.4% compared to the fourth quarter of 2024. Backlog as of Decem ...

Company Performance - Medpace's stock closed at $582.48, reflecting a decrease of -1.79% from the previous day, underperforming compared to the S&P 500's daily loss of 0.43% [1] - Over the last month, Medpace's shares have increased by 5.59%, outperforming the Medical sector's loss of 2.36% and the S&P 500's gain of 0.89% [1] Upcoming Earnings - Medpace is set to disclose its earnings on February 9, 2026, with analysts expecting earnings of $4.18 per share, indicating a year-over-year growth of 13.9% [2] - The consensus estimate for revenue is projected at $681.17 million, representing a growth of 26.94% compared to the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $14.8 per share and revenue of $2.5 billion, reflecting changes of +17.18% and 0% respectively from the prior year [3] - Recent changes to analyst estimates indicate a positive outlook for Medpace, as upward revisions are often seen as a sign of optimism regarding business trends [3] Valuation Metrics - Medpace has a Forward P/E ratio of 35.67, which is a premium compared to the industry average Forward P/E of 15.73 [6] - The company has a PEG ratio of 1.99, compared to the Medical Services industry's average PEG ratio of 1.77 [6] Industry Context - The Medical Services industry, which includes Medpace, ranks 178 in the Zacks Industry Rank, placing it in the bottom 28% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance potential of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's und ...

Company Performance - Medpace's stock closed at $588.05, down 3.01%, underperforming the S&P 500's gain of 0.03% on the same day [1] - Over the past month, Medpace's stock has increased by 6.02%, outperforming the Medical sector's slight loss of 0.01% and the S&P 500's gain of 0.6% [1] Upcoming Earnings - Medpace is set to release its earnings report on February 9, 2026, with an expected EPS of $4.18, reflecting a 13.9% increase year-over-year [2] - Revenue is anticipated to reach $681.17 million, indicating a 26.94% rise compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates project earnings of $14.8 per share and revenue of $2.5 billion, representing increases of 17.18% and no change, respectively, from the previous year [3] - Recent revisions to analyst forecasts for Medpace are crucial as they reflect short-term business trends and can indicate analysts' positive outlook on the company's health and profitability [3] Valuation Metrics - Medpace currently has a Forward P/E ratio of 36.47, which is significantly higher than the industry average Forward P/E of 16.37 [5] - The company has a PEG ratio of 2.04, compared to the industry average PEG ratio of 1.92 [6] Industry Ranking - The Medical Services industry, which includes Medpace, has a Zacks Industry Rank of 188, placing it in the bottom 24% of over 250 industries [6] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - Vulcan Value Partners reported positive results across all its investment strategies for the year, with varying returns in Q4 2025 and year-to-date (YTD) performance [1] - The firm emphasized a focus on safety and long-term gains, despite the overvalued market conditions reminiscent of the late 1990s dot-com bubble [1] - Vulcan Value Partners maintains a disciplined investment approach, aiming to improve price-to-value ratios while navigating current market challenges [1] Performance Summary - The Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD - The Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD - The Focus Composite (Net) returned 0.1% in Q4 and 7.1% YTD - The Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD - The All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD [1] Company Highlight: Medpace Holdings, Inc. - Medpace Holdings, Inc. (NASDAQ:MEDP) is a healthcare company specializing in clinical research-based drug and medical device development services [2] - The stock traded between $250.05 and $628.92 over the past 52 weeks, closing at $606.27 on January 22, 2026 [2] - Medpace's one-month return was 6.82%, with a 0.18% gain over the last three months, and it has a market capitalization of approximately $17.078 billion [2] Valuation Insights - Vulcan Value Partners noted a weighted average price to value ratio in the mid-50s, indicating a portfolio trading at a significant discount to intrinsic value [3] - The firm acknowledged that while the majority of its MVP list is overvalued, its valuation methodology remains consistent and reliable [3] - The firm expressed confidence in its valuation approach, suggesting that its discounted companies are indeed undervalued compared to the broader market [3]

Company Performance - Medpace (MEDP) closed at $616.45, marking a +1.32% move from the prior day, outperforming the S&P 500's daily loss of 0.53% [1] - The stock has risen by 8.89% in the past month, leading the Medical sector's gain of 0.09% and the S&P 500's gain of 2.06% [1] Upcoming Earnings - Medpace's earnings report is set to be unveiled on February 9, 2026, with projected earnings per share (EPS) of $4.18, reflecting a 13.9% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $681.17 million, up 26.94% from the year-ago period [2] Full Year Estimates - Analysts expect earnings of $14.8 per share and revenue of $2.5 billion for the full year, marking changes of +17.18% and 0%, respectively, from last year [3] Analyst Forecasts - Recent revisions to analyst forecasts for Medpace are important as they indicate changing near-term business trends, with positive alterations signifying analyst optimism regarding the business and profitability [4] Valuation Metrics - Medpace is currently traded at a Forward P/E ratio of 36.6, which is a premium compared to its industry average Forward P/E of 15.3 [7] - The company has a PEG ratio of 2.04, compared to the Medical Services industry's average PEG ratio of 1.91 [7] Industry Ranking - The Medical Services industry holds a Zacks Industry Rank of 194, positioning it in the bottom 21% of all 250+ industries, indicating weaker performance compared to higher-ranked industries [8]

Industry Overview - The Medical Services sector is rapidly evolving due to digital health advancements, value-based care adoption, and a focus on patient-centric solutions [1] - The global healthcare analytics market is projected to grow from $56.64 billion in 2025 at a CAGR of 22.7% through 2035, benefiting payers, providers, and analytics vendors [1] - The industry includes various service providers such as pharmacy benefit managers, contract research organizations, and healthcare workforce solution providers, transitioning from volume-based to value-based care [3] Key Trends - The U.S. digital health market is expected to grow from $92.08 billion in 2025 to $248.11 billion by 2034, with a CAGR of 11.6% [4] - The global big data in healthcare market is valued at $110.97 billion in 2025, projected to grow at a CAGR of 19.2% from 2026 to 2035 [4] - Companies adopting AI technologies have seen a 50% reduction in treatment costs and over 50% improvement in patient outcomes [4] Workforce Challenges - A projected healthcare worker shortage of 100,000 by 2028, including a shortfall of 73,000 nursing assistants, is expected to elevate labor costs [2][5] - The WHO estimates a shortfall of 11 million physicians, particularly in low-income countries, emphasizing the need for workforce expansion [5] - Total hospital expenses increased by 5.1% in 2024, significantly outpacing the overall inflation rate of 2.9% [5] Company Highlights - **Medpace Holdings (MEDP)**: Expected earnings growth rate of 17.2% in 2025, with revenues projected to rise by 18.7% from 2024 [19][20] - **Enhabit, Inc. (EHAB)**: Anticipated earnings surge of 161.9% in 2025, with revenue growth of 2.3% [23][24] - **Progyny (PGNY)**: Projected earnings increase of 9.8% in 2025, with revenues expected to grow by 9.2% [26][27] Performance Metrics - The Medical Services industry has gained 6.8% over the past year, in line with the Medical sector, but lagged behind the S&P 500's 19.3% increase [10] - The industry is currently trading at a forward P/E of 16.9X, compared to the S&P 500's 23.3X and the sector's 21.6X [14]

Company Performance - Medpace (MEDP) closed at $561.65, reflecting a -1.27% change from the previous day, underperforming the S&P 500's loss of 0.74% [1] - Prior to the latest trading session, Medpace shares had declined by 2.54%, contrasting with the Medical sector's loss of 0.8% and the S&P 500's gain of 0.79% [1] Earnings Forecast - Medpace is expected to report an EPS of $4.18, representing a 13.9% increase from the same quarter last year [2] - Revenue is forecasted to be $681.17 million, indicating a growth of 26.94% compared to the corresponding quarter of the prior year [2] Full Year Estimates - For the full year, analysts project earnings of $14.8 per share and revenue of $2.5 billion, reflecting increases of +17.18% and +18.68% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Medpace are important as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the business outlook [4] - The Zacks Rank system, which incorporates these estimate changes, currently assigns Medpace a rank of 2 (Buy) [6] Valuation Metrics - Medpace has a Forward P/E ratio of 38.45, which is a premium compared to the industry average Forward P/E of 15.5 [7] - The company also has a PEG ratio of 2.15, compared to the Medical Services industry's average PEG ratio of 1.72 [7] Industry Context - The Medical Services industry, which includes Medpace, has a Zacks Industry Rank of 165, placing it in the bottom 34% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]