Medpace Holdings, Inc. filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $2.84 billion, which rose 20.4% on the year before. That growth rate was down 4.3 percentage points on the rate a quarter earlier.

What stands out

Reported profit and cash are moving at different speeds. Net income rose 19.6% over the year while free cash flow fell 1.4%.

Capital spending is consuming a larger share of generated cash. Capital spending rose 60.8%, faster than operating cash flow’s 1.7%, so less of the cash generated was left over.

Growth and profit

The company is maintaining high profitability despite slowing revenue growth. The trailing operating margin was 21.4%, down 0.1 percentage points from a year earlier. The trailing net margin was 18.2%. Net income over the twelve months was $517.8 million, which rose 19.6% on the year before.

Cash flow

Cash generation is lagging behind top-line expansion. Operating cash flow over the twelve months was $723.0 million, up 1.7% on the year before. Capital spending was $55.4 million, or 2.0% of revenue. Free cash flow, operating cash flow less capital spending, was $667.6 million, down 1.4% on the year before. Free cash flow was 23.5% of revenue (the free-cash-flow margin), down 5.2 percentage points from a year earlier. The average diluted share count fell 5.1% over the year.

In context

Today’s free-cash-flow margin of 23.5% is higher than 60% of the company’s own past quarterly readings, which have ranged from 14.9% to 28.7%. Today’s operating margin of 21.4% is higher than 95% of the company’s own past quarterly readings, which have ranged from 8.5% to 21.5%. Today’s twelve-month revenue growth rate of 20.4% is higher than 43% of the company’s own past quarterly readings, which have ranged from 3.5% to 61.5%.

Guidance

The company gave its 2026 guidance for 2026 revenue: $2.83 billion to $2.85 billion. The company gave its full year 2026 guidance for full year 2026 GAAP net income: $514.0 million to $524.0 million. The company gave its full year 2026 guidance for full year 2026 EBITDA (adjusted): $638.0 million to $652.0 million. The company gave its 2026 guidance for diluted earnings per share (GAAP): $17.97 to $18.32.

What it means for value

Our model shows that valuation is sensitive to growth assumptions. In our model, growth 5 percentage points lower would lower the value by 23.2%, and 5 percentage points higher would raise it by 29.7%. A free-cash-flow margin 1 percentage point lower would lower it by 4.2%.

What to watch

The next filing will show whether the divergence between net income and free cash flow persists. It will also reveal if the deceleration in revenue growth continues. Finally, it will provide updated data on the trajectory of the free-cash-flow margin.