Medpace Hldgs Q3 2026 Earnings Call Transcript

Medpace Hldgs (NASDAQ:MEDP) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Medpace Hldgs reported a year-over-year revenue increase of 8.5% for Q3 2026, with total revenue reaching $716 million.

EBITDA for the quarter was $172.1 million, up 16% from the previous year, resulting in an EBITDA margin of 24%.

Net income rose by 23.7% to $137.5 million, driven by higher interest income and a lower effective tax rate.

The company achieved record net new business awards in Q3, with a 23.9% increase in awards over the last 12 months.

Full-year 2026 revenue guidance was set between $2.835 billion and $2.855 billion, an increase of 12% to 12.8% from 2025.

Management noted a healthy business environment with strong RFP activity and win rates, though cancellations remain a concern.

The board approved a new $1 billion share repurchase authorization, replacing the previous one.

The company plans a significant expansion in Cincinnati, expected to add $20 million in operating costs for 2027.

Discussion highlighted a strategic focus on maintaining high service quality rather than competing aggressively on price.

Full Transcript

OPERATOR

Good day, ladies and gentlemen, and welcome to the Medpace Hldgs third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. If you’d like to ask a question, please press star 11 on your phone. If your question has been answered and you’d like to remove yourself from the queue, simply press star 11 again. As a reminder, this call is being recorded.

I would now like to introduce your host for today’s conference call, David Roux, Medpace Hldgs’ Director of Investor Relations. You may begin.

David Roux (Director of Investor Relations)

Good morning, and thank you for joining Medpace Hldgs’ third quarter 2026 earnings conference call. Also on the call today is our CEO, August Trundle, 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 measures to the most directly comparable GAAP measures is available in the earnings press release and earnings call presentation slides provided in connection with today’s call.

The slides are available in the Investor Relations section of our website at investor.medpace.com. With that, I would now like to turn the call over to August Trundle.

August Trundle (Chief Executive Officer)

Thanks, David. Good morning, everyone. The business environment remains strong. In quarter three, 2026, we saw high-quality RFP activity, strong initial award notifications, and a good win rate. Net new business awards reached an all-time high in the quarter, and our last 12-month growth in awards was 23.9%. We will provide guidance for 2027 at the end of our Q4 reporting—at the time of our Q4 reporting in February. However, we see no large disconnect between analyst consensus estimates and our current modeling of 2027. Kevin will now review our financial results for Q3 and our updated 2026 guidance.

Kevin M. Brady (Chief Financial Officer)

Thank you, and good morning to everyone listening in. Revenue was $716 million in the third quarter of 2026. This represented a year-over-year increase of 8.5%. Revenue for the nine months ended September 30, 2026 was $2.13 billion and increased 16.9%. EBITDA of $172.1 million increased 16% compared to $148.4 million in the third quarter of 2025. Year to date, EBITDA was $474.9 million and increased 19.5% from the comparable prior-year period. EBITDA margin for the third quarter was 24% compared to 22.5% in the prior-year period. EBITDA margins benefited from lower reimbursable costs. Year to date, EBITDA margin was 22.3% compared to 21.8% in the prior-year period.

Net income of $137.5 million increased 23.7% compared to net income of $111.1 million in the third quarter of 2025. Net income growth above EBITDA growth was primarily driven by higher interest income and a lower effective tax rate compared to the prior-year period. Year to date, net income was $382.7 million compared to $316 million in the comparable prior-year period, which represents a 21.1% increase. Net income per diluted share for the quarter was $4.84 compared to $3.86 in the prior-year period.

Year to date, net income per diluted share was $13.37 compared to net income per diluted share of $10.64 in the comparable prior-year period. Net new business awards entering backlog in the third quarter increased 10.6% from the prior year to $873.4 million. Net new business awards entering backlog over the last 12 months increased to $3.02 billion, representing a year-over-year increase of 23.9%. Ending backlog as of September 30, 2026 was approximately $3.2 billion, an increase of 5.6% from the prior year.

We project that approximately $1.99 billion of backlog will convert to revenue in the next 12 months. Backlog conversion in the third quarter was 23.8% of beginning backlog. Regarding customer concentration, our top 5 and top 10 customers represent roughly 31% and 39%, respectively, of our last 12 months revenue. In the third quarter we generated $216.6 million in cash flow from operating activities, and our net day sales outstanding was negative 66 days. Cash ended the quarter at $705.3 million. Effective October 20, 2026, the board terminated the company’s current share repurchase authorization and approved a new share repurchase authorization of up to $1 billion.

Moving now to our updated guidance for 2026: full-year 2026 total revenue is now expected in the range of $2.835 billion to $2.855 billion, representing growth of 12% to 12.8% over 2025 total revenue of $2.53 billion. Our 2026 EBITDA is now expected in the range of $638 million to $652 million, representing growth of 14.4% to 16.9% compared to EBITDA of $557.7 million in 2025. We forecast 2026 net income in the range of $514 million to $524 million.

This guidance assumes a full-year 2026 effective tax rate of 19% to 19.25%, interest income of $22.9 million, and 28.6 million diluted weighted average shares outstanding for 2026. There are no additional share repurchases assumed in our guidance. Earnings per diluted share is now expected to be in the range of $17.97 to $18.32. Guidance is based on foreign exchange rates as of September 30, 2026. With that, I will turn the call back over to the operator so we can take your questions.

OPERATOR

Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. And our first question comes from Michael Czerny of Leerink Partners. Your line is open. Michael, your line is open.

Michael Czerny (Analyst at Leerink Partners)

Oh, hi. Can you hear me?

OPERATOR

Can hear you now.

Michael Czerny (Analyst at Leerink Partners)

Okay, my apologies there. August, maybe just to dive into a bit more about your bookings commentary. Clearly net bookings performance in the quarter is really strong. As you think about where that’s coming from, how do you see the evolving competitive environment within the biotech world, and how do you think about where either pricing lies or your ability to continue to push forward in your differentiation within your core biotech customer? Any more color you can give on the competitive components and what led to some of this bookings growth in what is a healthy market would be great.

Thank you.

OPERATOR

August, you might be muted.

August Trundle (Chief Executive Officer)

Yeah, I’m sorry—having trouble here. Yeah, I guess you’re kind of ultimately addressing win rate—how we’re performing versus the environment. The business environment is a strong one, I think really across the board. I think that things have changed a little bit in terms of the mix of what we’re seeing, and it’s a little bit more traditional. Oncology, generally our largest area; a little bit less metabolic demand at the current time point. But I think there’s a lot of good opportunities, and our win rate has been strong, so I think it’s a combination of the two.

I think we’re booking good work and a lot of it. In the past, certainly a few years here, a lot of cancellations have driven ultimate performance in terms of awards and revenue growth, and I hope that is somewhat reduced going forward. Our cancellations—backlog cancellations—this quarter were not something to call out, but also not a help. They were toward the higher end, but within kind of the range we’d expect. So, you know, I think that’s what I can provide.

OPERATOR

Thank you. And our next question comes from Jalindra Singh of Truist Securities. Your line is open.

Jalindra Singh (Analyst at Truist Securities)

Thank you, and thanks for taking my questions. First, a quick clarification. August, your comment about current consensus being in the right range, I’m assuming that applies to both revenue and EBITDA. And on the revenue expectation, I think Street is modeling 6% growth. Anything you can share in terms of how you think about direct fee revenue versus pass-through—just mix—will be helpful.

August Trundle (Chief Executive Officer)

Yeah, I don’t—you know, we don’t comment on, you know, direct, pass-through, et cetera. You see our pass-through expenses. I think that’s kind of a way to try to back into it—not accurately, but at least directionally. I don’t know. Kevin, do you have any comment on that?

Kevin M. Brady (Chief Financial Officer)

No. I mean, I think we’ll provide color, Jalandra, in terms of what that will look like in February. But I would just kind of reiterate what August said: that consensus looks reasonable relative to our current modeling, and that would include some assumptions on pass-throughs at the current moment. We’ll have to see how bookings progress in the next quarter. The only other thing that I would call out, while we do agree with the percentages, just a reminder that we do have a new expansion—significant expansion—coming online here in Cincinnati, which will add about $20 million of operating costs in 2027.

Jalindra Singh (Analyst at Truist Securities)

Okay, that’s helpful. And then quick follow-up on the direct fee gross margin in the quarter—really good trends there. Anything to call out in particular? Just trying to figure out if there was anything out of the ordinary in terms of mix or change orders or timing, and if these Q3 direct fee gross margin levels are sustainable.

Kevin M. Brady (Chief Financial Officer)

I would just say, Jalandra, I mean, you know, quarter to quarter, there’s certainly volatility that can occur in our numbers. And I know that everybody uses pass-through as a proxy for what direct service fee revenue is, but that’s not exactly how 606 works. Your margins, again, are good—very good—but they can be lumpy from quarter to quarter. But I don’t see anything that would significantly disrupt kind of the margin performance in Q4.

Jalindra Singh (Analyst at Truist Securities)

Great, thanks a lot.

OPERATOR

Thank you. And our next question comes from Kevin Kaliando of UBS. Your line is open.

Tucker Emers (Analyst at UBS)

Hello, this is Tucker Emers, filling in for Kevin Kaliando here. I’m going to probably double-click on the last question on the margin. So headcount grew high single digits sequentially and, yeah, you were able to maintain that margin level. And so, kind of, like, what drove servicing margin being so strong? Why would it, you know, essentially maintain at this level going forward?

Kevin M. Brady (Chief Financial Officer)

Yeah, again there can be some timing things that happen in a given quarter. There can be some lumpiness caused by 606, but, no, it was good performance overall across the business. Utilization continues to be in a good spot, and while we’re growing headcount, the revenue is growing faster than that at the given moment.

Tucker Emers (Analyst at UBS)

And then maybe if I can just follow up quickly, this is mostly a question on the mix of servicing and pass-throughs essentially in the backlog. And so pass-throughs obviously dipped down in the quarter, and so does that essentially imply that service bookings are higher in backlog? And so the question is essentially, like, would Medpace Hldgs be able to maintain this 10%-plus service growth in the foreseeable future, assuming that the pass-throughs are kind of maintaining at this lower-ish 40% level?

Kevin M. Brady (Chief Financial Officer)

Yeah, I mean again, in terms of service fee growth, you know, obviously the bookings over the last couple of quarters have been good. We’ll have to see what happens in the fourth quarter, but that will then influence what 2027 looks like. So in terms of growth rates, nothing to comment on in terms of 2027 at the moment other than what we have already said in that we don’t see a major disconnect with where consensus is right now.

OPERATOR

Thank you. And our next question comes from Ann Hines of Mizuho. Your line is open.

Ann Hines (Analyst at Mizuho)

Good morning. Thank you. So when I look at the implied growth rates for 2027, definitely lower than what Medpace Hldgs usually does, is that just a factor of—even though bookings were very strong this quarter, I know last three quarters were just below what you got—or is there anything you’re seeing in the environment, maybe over the past couple of weeks as interest rates have gone up, that you think is going to impact demand next year? Yeah, thanks.

August Trundle (Chief Executive Officer)

Yeah, no, I think that our growth profile has dropped quite a bit over the last few years, related primarily to pressure from cancellations has been one of the biggest things, particularly this past year. We’ve had good opportunities. The business environment’s been strong this year and it continues to be. And one reason we decided to not provide any guidance on next year yet is it’s still shaping up quite a bit. And Q4 awards are still an important component of next year revenue.

But more importantly is, you know, kind of where we shake out in terms of cancellation pattern here in Q4 and going into next year. But things are, you know, improving month to month in terms of us increasing our revenue expectations for 2027 and hopefully that continues. But again, a large part of that will be what the cancellation profile is in Q4. We see no reason for high cancellations, but, you know, these are kind of things that just come out of the blue.

They were a little bit higher than we would have liked in the current quarter, but manageable and hopefully that continues for the rest of the year. Anyway,

Kevin M. Brady (Chief Financial Officer)

Just another comment that remember the mix of pass-throughs relative to revenue will also influence that growth rate as well.

Ann Hines (Analyst at Mizuho)

Right? Yeah. And then just maybe any incremental color on the cancellations. Did anything surprise you about them in the quarter? Is it just funding—like, I guess what’s driving the cancellations—or any change from what’s been driving them over the past few quarters?

August Trundle (Chief Executive Officer)

Yeah. Now, our cancellations now are primarily those of product failure—a little bit more clearly product failure. You know, it’s always—well, you know, some of it’s prioritization too. And you could say that’s related to total level of funding possible, but no real signs funding is now a main driver of many of the cancellations. It’s products that are not living up to expectation, safety signals, other things that are causing programs to stop. So it’s kind of everything surprises me about them. You know, they’re all just random events and expected. So no real trend there.

Ann Hines (Analyst at Mizuho)

Okay, great. Thank you.

OPERATOR

Thank you. And our next question comes from Justin Hours of Deutsche Bank. Your line is open.

Justin Hours (Analyst at Deutsche Bank)

Hi, good morning everyone. Just a continuation of the last question. In terms of the decision to wait until February to guide, what is more of a factor here? Is it more about the awards or is it more about cancellations? Just trying to get a better sense of why the change from last year.

August Trundle (Chief Executive Officer)

Yeah, I’m not sure I can sort that. It’s just that over the last quarter our view on 27 has moved and we expect it to continue to move and it just seemed that we can’t provide a very firm guide. We feel we can provide a much more firm guide in February than we would be able to now. And we didn’t see a real need to come out with some commentary on what we expected relative to consensus. It looked somewhat in line. I’m not saying it’s the same, but it didn’t look drastically off.

So we decided that there’s no point in making a poor guide that might not be, you know, very accurate in retrospect. So that’s really it understood.

Justin Hours (Analyst at Deutsche Bank)

And then just a couple of quick follow-ups there. How does the funnel look in terms of potential awards and RFPs—you know, the funnel or the pipeline in terms of RFPs—for the rest of the year?

August Trundle (Chief Executive Officer)

You know, look, sort of the awards—the pending RFPs—is up. Total dollar value of opportunities that we’re looking at is up nicely. I mean, RFP numbers are actually down some, but, you know, that’s not a—like I said, I kind of ignore the quality and the total pending decisions by clients. And they’re not being held up. This is just because of volume of opportunities that have come in. It’s not that things are not being awarded. Things are actually moving along at a relatively normal pace in terms of award decisions, projects moving forward, getting funding in place.

Things are actually very well. But the total number of opportunities has increased and is at a very, very good high. I think that, you know, if we can win well in Q4 and certainly anywhere near as well as in Q3, and cancellations aren’t really out of the range, I think things are going to improve in our 27 expectations.

Justin Hours (Analyst at Deutsche Bank)

Okay, great. I will jump back in queue. Thank you.

OPERATOR

Thank you. And our next question comes from Ryan Halstead of RBC. Your line is open.

Ryan Halstead (Analyst at RBC Capital Markets)

Thanks for taking my questions. Maybe going back to the new awards—and good to see that they’re growing healthy. Do you have any way of clarifying how much of that new awards momentum is a result of the pre-backlog that you called out in the prior year period, clearing those gating factors and moving into backlog?

August Trundle (Chief Executive Officer)

Most of our awards come from something that was previously notified—that we were chosen as the CRO to do this. So most of it is those gating factors, if you consider the start of the study being a gating factor, which we do. So we bring things into backlog when the study starts actually operationally in the field. Now, if you’re asking how much is that versus other gating factors, I mean, still the biggest one is getting started in the trial. It’s a minor number of additional amounts of backlog added because there was some gating factor on an award that was already partially in backlog.

I don’t know if that answers your question, but most things that are awards in a given quarter were in our suspense—our pre-backlog.

Ryan Halstead (Analyst at RBC Capital Markets)

Got it. Okay. And then you mentioned a few quarters ago some initiatives you’re putting in place to address your win rates, and clearly they’re bearing fruit. Any more color you can share on just how those initiatives have been working and generating success?

August Trundle (Chief Executive Officer)

No, I’m not going to give details on what they were. I wanted to point out we recognized our win rate wasn’t as high as we liked in 2025. And toward the end of 2025, we made some meaningful adjustments in our processes and how we address things. And I think they have been successful. It’s very difficult over even just a couple quarters to assess that. But I think our assessment to date is that they’ve been very successful and we hope to continue to improve going forward.

Ryan Halstead (Analyst at RBC Capital Markets)

Great, thank you.

OPERATOR

Thank you. And our next question comes from David Winley of Jefferies. Your line is open.

David Winley (Analyst at Jefferies)

Hi. Thanks for taking my question. Good morning. I wanted to ask a question around kind of composition of work, and what I’m driving at is, August, your intent—I think consistent intent—to do full-service work for your clients. I think you have a minimum kind of composition of the trial you want to control in order to really want to engage with a client. What we’re hearing is some additional, I guess, carve-out of biometrics work within trials—otherwise FSO-type trials—and then biotechs that, somewhat counterintuitive to me, are interested in engaging in FSP discussions, which I don’t think you’re interested in.

So I wanted to probe if you are seeing changes in the way your target client base wants to engage around projects.

August Trundle (Chief Executive Officer)

Thanks, Dave. I wouldn’t say that I see certainly a meaningful change. I mean, there’s always been clients that want to carve out biometrics, sometimes internally, sometimes with another chosen provider. We do prefer totally full-service opportunities, but as long as we’re able to add real value in terms of managing the recruitment, quality of the trial, execution overall. So if we have all of the front-end operations and they want to keep even data in-house as well as statistics and medical writing, that may be an opportunity that’s of interest to us, yes.

But I haven’t really seen a step increase in the number of clients that are doing that. Really it depends on size of client to a good extent. If it’s truly functional, you’re right, we’re not interested at all. But certainly if it’s front-end only, we do do projects that are front-end only.

David Winley (Analyst at Jefferies)

Thanks. Then maybe, too, you commented about therapeutic mix shifting back toward more traditional oncology, a little less cardiometabolic. Ryan asked the question about the topic that you kind of raised last time about having some trials that have these interim looks or contingencies that may be removed midstream. I guess I’m wondering if there’s an interrelationship between those two. Which therapeutic areas tend to have that interim look? How prevalent are those things?

Maybe the simplest way to ask the question is we did see the backlog beyond next 12 months kind of regrow or, you know, kind of inflate a little bit where it hasn’t for a while. And I’m just again probing around some of those moving parts in the backlog long term versus next 12 months. Thanks.

August Trundle (Chief Executive Officer)

Yeah, I guess, fair question. I just don’t have the analytics in front of me and, I mean, I generally don’t look at that, but it’s possible that’s related. You know, I don’t know that there’s any real shift in the amount that’s rolling in versus new awards, etc. Our awards have pivoted more towards—both in terms of notifications and things being recognized into backlog—awards have, and to some extent RFPs have, pivoted more back towards oncology.

Although we also are seeing, in terms of RFPs, quite a bit of metabolic work again. There was a little bit of a drop, and so the notifications and awards are down in the metabolic area. But there are a lot of pending opportunities for metabolic force currently. But yeah, what’s driving the increase in duration? Is it new projects that are entered and very short remaining projects that are coming out that’s driving it? I think that’s probably the bigger factor. But was there any gates that were reached that opened up that caused a meaningful increase in the duration of projects? I don’t know. I doubt it’s therapeutic related. It may be true that oncology is a bit more likely to have gates. They tend to be longer trials and have more gating.

So that’s probably true overall, but I don’t know if that’s influencing outside of 12 months backlog.

David Winley (Analyst at Jefferies)

Okay, great, thank you.

OPERATOR

Thank you. And our next question comes from Jared Hazzah of William Blair. Your line is open.

Christine Raines (Analyst at William Blair)

Hi, good morning, it’s Christine Raines on for Jared. Thanks for taking our questions. The pass-through revenue mix came in nicely below prior 41% to 42% expectation for the second half. Is that range still the right expectation for 2H? And should we expect pass-through mix to step up in 4Q?

Kevin M. Brady (Chief Financial Officer)

Yeah, good question. I expect it to be somewhere around where we finished the third quarter, so kind of 40 to 40.5% based on our current model.

August Trundle (Chief Executive Officer)

Yeah, I think things are moving along faster than last year. I think we’re kind of in a pretty good place in terms of projects moving along well, the RFPs not being bid a thousand times, and things moving along towards award and then project startups. So I think things are pretty normalized in terms of, you know, we’re getting opportunities that clients want to forward on in the current time frame, not sometime in the future.

OPERATOR

Thank you. And as a reminder, if you have a question, please press star 11. And our next question comes from Eric Clow of Baird. Your line is open.

Eric Clow (Analyst at Baird)

Thanks very much and good morning. Obviously a very strong margin in the quarter and clearly the lower reimbursable revenue is a contributor to that optically. But I am curious if there were other drivers in the quarter that you would highlight, whether that be project or therapeutic mix, hiring perhaps being lower than you were anticipating or turnover being lower than you were anticipating, other efficiencies, any accounting oddities or one-timers.

I’m just continually impressed by your EBITDA margin. I think this was the second highest quarter since ASC606, so would love to get a sense on if there’s anything unique to the quarter that, you know, barring the optics of pass-throughs up or down, that we would be using this as some kind of a jumping off point or have a reason to have sustainably higher expectations here.

Kevin M. Brady (Chief Financial Officer)

Eric, nothing to specifically call out, just other than what I mentioned earlier, that certainly there is volatility in our margin percentages quarter to quarter. There can be some timing aspects to when certain contracts are signed. The business is performing very well on the direct service side to your point. Attrition rates are in a very good spot and the business continues to deliver. But some of it certainly can be influenced by just the volatility that we see in some of the 606 impacts.

But again, I don’t expect there to be a major degradation in the fourth quarter. Again, there is some level of headwind in 2027 as we absorb the Cincinnati campus expansion, but we’ll provide more color on that in February.

Eric Clow (Analyst at Baird)

Okay. And then on—you, I think you touched on it, but I did want to specifically ask about turnover rates, hiring, salaries, wages, benefits, inflation, what your thoughts are going into 27. I’ve recently conversed with a few of your peers, some of the mid-tier biotech-focused privates, et cetera. And what I am picking up is that everybody had, almost everybody had, exceptionally low turnover in recent years—in many cases actually record low turnover, voluntary turnover at least.

But we are picking up some signs that turnover levels are starting to come back, that a number of firms are starting to hire again. You know, people are more willing to jump ship if there’s more options and companies need to start paying up for talent. So I’m just curious what your overall view on the staff marketplace looks like as we go into 27.

August Trundle (Chief Executive Officer)

Turnover looks very low. I think we’ve continued with low turnover. Don’t know what else I can say on that.

Eric Clow (Analyst at Baird)

And no pressures on incremental or abnormal pressures on salaries, wages, benefits at this point?

Kevin M. Brady (Chief Financial Officer)

No, no. It’s pretty—you know, it’s an ongoing thing. But no, I don’t think there’s any real change over the past year.

Eric Clow (Analyst at Baird)

That’s great in terms of the—

Kevin M. Brady (Chief Financial Officer)

Obviously it’s always increasing some, but within our expectations.

Eric Clow (Analyst at Baird)

No, that’s where I was going, so thank you for that. And then last one for me: last quarter, August, you seemed a lot more upbeat about—I don’t know, maybe it’s just the focus of what we’re talking about today—but there was a lot of commentary on, I think, bookings and the big second-half ramp that you expected. You were obviously accurate with book-to-bill getting, you know, back above that 1.2 zip code and strong awards that came in this quarter.

It felt like there was a little less commentary on that in the fourth quarter. Some modest mentions of higher cancels out of backlog. I’m just—you know, help us get for the fourth quarter if—

August Trundle (Chief Executive Officer)

There’s always going to be cancellations. But no, I don’t feel any different. I think that Q4, if things go right, it is going to be, you know, another record awards. You know, I hate to look at book-to-bill. I just think it’s a bad measure. I’d rather focus on, you know, award growth and, you know, trailing 12 awards, and I would expect another—another step up. Things look very good. We have a lot of stuff in the pipeline, you know, both in terms of opportunities. RFPs are, you know, pending award. A lot of—you know, we had a very strong quarter in terms of awards of notifications themselves, and I would expect, you know, business awards, things moving into backlog, to continue to move upward going forward next year, you know, next quarter and, you know, sequentially. So no real difference on that. It just comes down to whether we get some unusual cancellations or not.

Eric Clow (Analyst at Baird)

Thank you so much, that’s very helpful. Have a great day. Thanks.

David Roux (Director of Investor Relations)

Thanks, Eric.

OPERATOR

Thank you. And our next question comes from Luke Surgott of Barclays. Line is open.

Luke Surgott (Analyst at Barclays)

Hey, thanks again for the question. You guys had a pretty big step-up in the large pharma side, and I just wanted to know kind of what you’re seeing there from a share dynamic, especially over the last couple years. I know that the revenue is really contingent on what you won over the last two years or so. So just give a sense of are there any specific indications? Are you adding new logos, or is it just kind of more about assets and where those existing relations are progressing through the development pipeline?

August Trundle (Chief Executive Officer)

Yeah, most of our large pharma opportunities have come from a limited number of providers, and often it’s related to biotech clients we had that got acquired. So it’s not really a direct outreach from us to try to win large pharma work at new clients. It’s supporting existing clients that largely are there because we had an acquisition of a former client of ours. So I think that’s it.

Luke Surgott (Analyst at Barclays)

Okay, so just more of the same that’s been going on there. And then, I guess, can you talk about pricing and competitiveness on the RFP? I mean, you guys are investing there to add capacity. It feels like the market’s in full recovery mode right now. So are things starting to tighten up, and you’re able to maybe get some price in some types of services on the full-service side?

August Trundle (Chief Executive Officer)

You know, we’ve not really gone to—you know, I think there were some that really focused on pricing. You know, we focus on quality of our deliverables. And I do think that some of the crazy approaches taken by some in the past few years have died out. So I think we’re kind of back to a normalized environment.

Luke Surgott (Analyst at Barclays)

Good to hear. Thanks.

OPERATOR

Thank you. I’m showing no further questions at this time. I’d like to turn it back to David Roux for closing remarks.

David Roux (Director of Investor Relations)

Thank you for joining us on today’s call and for your interest in Medpace Hldgs. We look forward to speaking with you again on our fourth quarter 2026 earnings call.

OPERATOR

This concludes today’s conference call. Thank you for participating, and you may now disconnect.

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