medp-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM 10-Q

___________________________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 001-37856

___________________________________________

Medpace Holdings, Inc.

(Exact name of registrant as specified in its charter)

___________________________________________


Delaware			32-0434904
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

5375 Medpace Way, Cincinnati, OH 45227

(Address of principal executive offices) (Zip Code)

(513) 579-9911

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock $0.01 par value	MEDP	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.


Class						Number of Shares Outstanding
Common Stock $0.01 par value						28,093,026 shares outstanding as of July 18, 2025

Table of Contents

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

FORM 10-Q

FOR QUARTERLY PERIOD ENDED JUNE 30, 2025

TABLE OF CONTENTS


Item Number		Page
	PART I — FINANCIAL INFORMATION	3
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 202 5 and December 31, 20 24	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 202 5 and 202 4	4
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 202 5 and 202 4	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 202 5 and 202 4	6
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 202 5 and 202 4	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

	PART II — OTHER INFORMATION	27
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	28
Item 6.	Exhibits	28
	EXHIBIT INDEX	29
	SIGNATURES	30

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(Amounts in thousands, except share amounts)	As of
	June 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	46,330	$	669,436
Accounts receivable and unbilled, net (includes $2.3 million and $4.2 million with related parties at June 30, 2025 and December 31, 2024, respectively)	377,921		296,443
Prepaid expenses and other current assets	96,554		63,350
Total current assets	520,805		1,029,229
Property and equipment, net	135,481		123,615
Operating lease right-of-use assets	129,504		128,649
Goodwill	662,396		662,396
Intangible assets, net	33,893		34,366
Deferred income taxes	65,792		100,357
Other assets	23,802		22,254
Total assets	$	1,571,673	$	2,100,866
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable (includes $0.1 million and $0.2 million with related parties at June 30, 2025 and December 31, 2024, respectively)	$	43,275	$	32,528
Accrued expenses	323,505		307,807
Advanced billings (includes $15.1 million and $14.6 million with related parties at June 30, 2025 and December 31, 2024, respectively)	808,783		710,585
Other current liabilities	44,880		53,633
Total current liabilities	1,220,443		1,104,553
Operating lease liabilities	124,946		126,234
Deferred income tax liability	2,016		1,800
Other long-term liabilities	51,917		42,734
Total liabilities	1,399,322		1,275,321
Commitments and contingencies (see Note 11)
Shareholders’ equity:
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2025 and December 31, 2024	—		—
Common stock - $0.01 par-value; 250,000,000 shares authorized at June 30, 2025 and December 31, 2024; 28,088,626 and 30,630,799 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	281		306
Treasury stock - 70,073 shares at June 30, 2025 and December 31, 2024	(12,235)		(12,235)
Additional paid-in capital	893,174		844,050
(Accumulated deficit) retained earnings	(703,215)		8,167
Accumulated other comprehensive loss	(5,654)		(14,743)
Total shareholders’ equity	172,351		825,545
Total liabilities and shareholders’ equity	$	1,571,673	$	2,100,866

See notes to condensed consolidated financial statements.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


(Amounts in thousands, except per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenue, net (includes $16.9 million and $11.2 million with related parties for the three months ended June 30, 2025 and 2024, respectively, and $30.7 million and $24.0 million with related parties for the six months ended June 30, 2025 and 2024, respectively)	$	603,311	$	528,104	$	1,161,881	$	1,039,148
Operating expenses:
Direct service costs, excluding depreciation and amortization	185,826		171,541		363,642		343,033
Reimbursed out-of-pocket expenses	237,472		202,725		439,876		387,135
Total direct costs	423,298		374,266		803,518		730,168
Selling, general and administrative	46,664		41,453		104,561		85,534
Depreciation	6,777		6,874		13,471		13,505
Amortization	237		361		473		722
Total operating expenses	476,976		422,954		922,023		829,929
Income from operations	126,335		105,150		239,858		209,219
Other (expense) income, net:
Miscellaneous (expense) income, net	(2,875)		(133)		(4,691)		4,460
Interest income, net	1,078		5,465		7,541		9,585
Total other (expense) income, net	(1,797)		5,332		2,850		14,045
Income before income taxes	124,538		110,482		242,708		223,264
Income tax provision	34,278		22,131		37,853		32,322
Net income	$	90,260	$	88,351	$	204,855	$	190,942
Net income per share attributable to common shareholders:
Basic	$	3.16	$	2.85	$	6.95	$	6.17
Diluted	$	3.10	$	2.75	$	6.79	$	5.96
Weighted average common shares outstanding:
Basic	28,601		30,990		29,489		30,917
Diluted	29,143		32,086		30,165		32,046

See notes to condensed consolidated financial statements.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


(Amounts in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	90,260	$	88,351	$	204,855	$	190,942
Other comprehensive income (loss)
Foreign currency translation adjustments, net of taxes	5,967		(548)		9,089		(2,517)
Comprehensive income	$	96,227	$	87,803	$	213,944	$	188,425

See notes to condensed consolidated financial statements.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)


(Amounts in thousands)	Common Stock		Treasury Stock		Additional Paid-In Capital		(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Total
BALANCE — December 31, 2023	$	308	$	(12,322)	$	802,681	$	(221,645)	$	(10,072)	$	558,950
Net income							102,591				102,591
Foreign currency translation									(1,969)		(1,969)
Stock-based compensation expense					4,310						4,310
Stock options exercised	2				7,658						7,660
Re-issuance of treasury stock			87				(87)				—
BALANCE — March 31, 2024	$	310	$	(12,235)	$	814,649	$	(119,141)	$	(12,041)	$	671,542
Net income							88,351				88,351
Foreign currency translation									(548)		(548)
Stock-based compensation expense					3,588						3,588
Stock options exercised					666						666
BALANCE — June 30, 2024	$	310	$	(12,235)	$	818,903	$	(30,790)	$	(12,589)	$	763,599

	Common Stock		Treasury Stock		Additional Paid-In Capital		(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Total
BALANCE — December 31, 2024	$	306	$	(12,235)	$	844,050	$	8,167	$	(14,743)	$	825,545
Net income							114,595				114,595
Foreign currency translation									3,122		3,122
Stock-based compensation expense					16,892						16,892
Stock options exercised	4				25,941						25,945
Repurchases of common stock	(12)						(392,478)				(392,490)
BALANCE — March 31, 2025	$	298	$	(12,235)	$	886,883	$	(269,716)	$	(11,621)	$	593,609
Net income							90,260				90,260
Foreign currency translation									5,967		5,967
Stock-based compensation expense					5,951						5,951
Stock options exercised					340						340
Repurchases of common stock	(17)						(523,759)				(523,776)
BALANCE — June 30, 2025	$	281	$	(12,235)	$	893,174	$	(703,215)	$	(5,654)	$	172,351

See notes to condensed consolidated financial statements.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


(Amounts in thousands)	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	204,855	$	190,942
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	13,471		13,505
Amortization	473		722
Stock-based compensation expense	22,843		7,898
Noncash lease expense	11,687		11,461
Deferred income tax provision (benefit)	34,856		(919)
Other	(520)		(3,903)
Changes in assets and liabilities:
Accounts receivable and unbilled, net	(81,980)		(2,714)
Prepaid expenses and other current assets	(33,130)		(11,251)
Accounts payable	12,021		(2,453)
Accrued expenses	12,249		915
Advanced billings	98,198		78,557
Lease liabilities	(12,615)		(11,025)
Other assets and liabilities, net	(8,046)		(2,661)
Net cash provided by operating activities	274,362		269,074
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment expenditures	(16,107)		(18,368)
Other	100		8,108
Net cash used in investing activities	(16,007)		(10,260)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock option exercises	26,285		8,326
Repurchases of common stock	(912,815)		—
Net cash (used in) provided by financing activities	(886,530)		8,326
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	5,069		(1,695)
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(623,106)		265,445
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period	669,436		245,449
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period	$	46,330	$	510,894

See notes to condensed consolidated financial statements.

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MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2025

(1) Basis of Presentation

Description of Business

Medpace Holdings, Inc. (together with its subsidiaries, “Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials.

The Company’s operations are principally based in North America, Europe, and Asia.

Unaudited Interim Financial Information

The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Share Repurchases

In 2022, the Company’s Board of Directors (“Board”) approved a stock repurchase program of up to $500.0 million. In the first and second quarters of 2025, the Board approved increases of $600.0 million and $1.0 billion, respectively, to the Company’s stock repurchase program bringing the total repurchase authorization up to $2.1 billion. During the three and six months ended June 30, 2025, the Company repurchased 1,754,264 shares and 2,947,275 shares for $518.5 million and $908.4 million, respectively. The Company did not execute any share repurchases during the three and six months ended June 30, 2024. As of June 30, 2025, the Company has remaining authorization of $826.3 million under the repurchase program.

Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retired the repurchased shares associated with these approved share repurchases, except for a small portion which were retained as Treasury Shares on the condensed consolidated statements of shareholders' equity. Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s condensed consolidated balance sheets.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" which requires entities to enhance disclosures around income taxes. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” to improve disclosures by providing more detailed information about the types of expenses in commonly presented expense captions. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning

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after December 15, 2027, with early adoption permitted. The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

(2) Net Income Per Share

Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s Restricted Stock Awards (“RSA”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term.

The computation of diluted EPS includes additional common shares, such as unvested Restricted Stock Units (“RSU”) and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except for earnings per share):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Weighted-average shares:
Common shares outstanding	28,601		30,990		29,489		30,917
RSAs	—		—		—		7
Total weighted-average shares	28,601		30,990		29,489		30,924
Earnings per common share—Basic
Net income	$	90,260	$	88,351	$	204,855	$	190,942
Less: Undistributed earnings allocated to RSAs	—		—		—		(41)
Net income available to common shareholders—Basic	$	90,260	$	88,351	$	204,855	$	190,901

Net income per common share—Basic	$	3.16	$	2.85	$	6.95	$	6.17

Basic weighted-average common shares outstanding	28,601		30,990		29,489		30,917
Effect of diluted shares	542		1,096		676		1,129
Diluted weighted-average shares outstanding	29,143		32,086		30,165		32,046

Net income per common share—Diluted	$	3.10	$	2.75	$	6.79	$	5.96

During the three and six months ended June 30, 2025, the Company had (in thousands) 205.3 and 198.0 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period. During the six months ended June 30, 2024, the Company had (in thousands) 4.8 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

(3) Fair Value Measurements

The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy

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maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows:

Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities.

Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data.

Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities.

The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities.

The Company does not have material recurring fair value measurements as of June 30, 2025 and December 31, 2024. There were no material transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2025 and 2024.

(4) Contract Assets and Contract Liabilities

Contract assets and liabilities are reflected in the Company’s condensed consolidated balance sheets within the accounts reflected below.

Contract Assets

Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date.

Accounts receivable and unbilled, net consisted of the following (in thousands):


	As of
	June 30, 2025		December 31, 2024
Accounts receivable	$	371,918	$	291,096
Unbilled receivables	6,003		5,347
Less: allowance for doubtful accounts	—		—
Total accounts receivable and unbilled, net	$	377,921	$	296,443

Contract Liabilities

Advanced billings represent cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized.

Advanced billings consisted of the following (in thousands):


	As of
	June 30, 2025		December 31, 2024
Advanced billings	$	808,783	$	710,585

As of June 30, 2025 and December 31, 2024, the Company had approximately $3.5 billion of performance obligations remaining to be performed for active projects.

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(5) Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):


	As of
	June 30, 2025		December 31, 2024
Intangible assets:
Finite-lived intangible assets:
Carrying amount:
Customer relationships	$	145,051	$	145,051
Accumulated amortization:
Customer relationships	(142,804)		(142,331)
Total finite-lived intangible assets, net	2,247		2,720
Trade name (indefinite-lived)	31,646		31,646
Total intangible assets, net	$	33,893	$	34,366

As of June 30, 2025, estimated amortization expense of the Company’s intangible assets for each of the remaining years is as follows (in thousands):


	Amortization
Remainder of 2025	$	473
2026	620
2027	577
2028	577
	$	2,247

(6) Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	As of
	June 30, 2025		December 31, 2024
Employee compensation and benefits	$	68,238	$	84,929
Project related reimbursable expenses	244,354		212,008
Other	10,913		10,870
Total accrued expenses	$	323,505	$	307,807

(7) Debt

On September 30, 2019 (the “Closing Date”), the Company obtained an unsecured credit facility (as amended from time to time, the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower (the “Borrower”), and Medpace IntermediateCo, Inc., as guarantor (the “Guarantor”).

On the Closing Date, the Borrower and lender entered into a Loan Agreement (as it may be amended from time to time, the “Loan Agreement”) providing for the Credit Facility, and the Guarantor executed a Guaranty Agreement providing for its guarantee of the payment and performance of the obligations under the Loan Agreement. On March 28, 2024, the Company entered into Amendment No. 6 to the Loan Agreement, which changed the aggregate principal amount that may be borrowed under the Credit Facility to up to $10.0 million and extended the expiration date of revolving credit note to March 31, 2025. On March 28, 2025, the Company entered into Amendment No. 7 to the Loan Agreement, which extended the expiration date of the revolving credit note to March 31, 2026. On April 18, 2025, the Company entered into Amendment No. 8 to the Loan Agreement, which increased the aggregate principal amount that may be borrowed under the

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Credit Facility to up to $600.0 million, adjusted the interest rate charged on the Credit Facility and extended the expiration date of the revolving credit note to April 30, 2027. The Credit Facility bears interest at a rate of the sum of The Secured Overnight Financing Rate (SOFR) plus 100 basis points (1.00%) or the highest of the Prime Rate, the sum of the Overnight Bank Funding Rate plus 50 basis points (0.50%) and the sum of Daily Simple SOFR plus 100 basis points (1.00%). As of June 30, 2025 and December 31, 2024, the Company had no indebtedness under the Credit Facility.

On July 17, 2025, the Company entered into Amendment No. 9 to the Loan Agreement, which decreased the aggregate principal amount that may be borrowed under the Credit Facility to up to $10.0 million.

The Loan Agreement contains other customary loan terms, representations and warranties, and affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions. The Loan Agreement contains certain events of default, including, among others, non-payment of principal or interest and breach of the covenants.

(8) Leases

The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 15 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms.

The components of lease expense were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease cost	$	7,688	$	7,903	$	15,753	$	15,768
Variable lease cost	2,819		2,735		5,831		5,401

Supplemental cash flow information related to the leases was as follows (in thousands):


	Six Months Ended June 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13,023	$	11,565

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,202		2,222

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Supplemental balance sheet information related to the leases was as follows (in thousands):


	As of
	June 30, 2025			December 31, 2024
Operating lease right-of-use assets - related parties	$	71,333		$	74,889
Operating lease right-of-use assets - non-related parties	58,171			53,760
Operating lease right-of-use assets	$	129,504		$	128,649

Other current liabilities - related parties	6,606			6,310
Other current liabilities - non-related parties	18,280			16,979
Other current liabilities	$	24,886		$	23,289

Operating lease liabilities - related parties	80,857			84,259
Operating lease liabilities - non-related parties	44,089			41,975
Operating lease liabilities	124,946			126,234
Total operating lease liabilities	$	149,832		$	149,523

Weighted Average Remaining Lease Term (years)
Operating leases	9.1			9.6
Weighted Average Discount Rate
Operating leases	5.6		%	5.7		%

Lease payments due related to lease liabilities as of June 30, 2025 were as follows (in thousands):


	Related Party Operating Leases		Non-Related Parties Operating Leases		Total Operating Leases
Remainder of 2025	$	5,827	$	10,147	$	15,974
2026	11,807		18,758		30,565
2027	10,839		15,328		26,167
2028	8,609		9,981		18,590
2029	8,824		6,976		15,800
Later years	82,845		7,963		90,808
Total lease payments	128,751		69,153		197,904
Less: imputed interest	(41,288)		(6,784)		(48,072)
Total	$	87,463	$	62,369	$	149,832

(9) Shareholder’s Equity and Stock-Based Compensation

The Company granted 154,264 awards to employees under the 2016 Incentive Award Plan during the six months ended June 30, 2025, consisting of 34,331 RSU and 35,473 stock options having five year vesting schedules and 84,460 stock option awards that vested upon issuance. The Company granted an additional 7,344 stock option awards to non-employee directors under the 2016 Incentive Award Plan during the six months ended June 30, 2025. These awards are scheduled to vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date.

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Award Activity

The following table sets forth the Company’s stock option activity:


	Six Months Ended June 30, 2025
	Stock Options	Weighted Average Exercise Price
Outstanding - beginning of period	1,143,368	$	130.33
Granted	127,277	$	324.56
Exercised	(404,263)	$	65.02

SEC Form 10-Q filed by Medpace Holdings Inc.