TORONTO, Aug. 6, 2025 /PRNewswire/ -- Thomson Reuters (TSX/Nasdaq: TRI) today reported results for the second quarter ended June 30, 2025:

   -- Good revenue momentum continued in the second quarter 
 
   -- Total company revenues up 3% / organic revenues up 7% 
 
          -- Organic revenues up 9% for the "Big 3" segments (Legal 
             Professionals, Corporates and Tax & Accounting Professionals) 
 
   -- Maintained full-year 2025 outlook for organic revenue growth, adjusted 
      EBITDA margin and free cash flow 
 
   -- Repaid Canadian $1.4 billion notes (U.S. $1.0 billion) with cash on hand 
      in May 2025 
 
   --  Launching new agentic AI solutions leveraging Thomson Reuters content 
      and tools for our legal, tax and accounting markets 

"We saw good momentum continue in the second quarter, with revenue in-line and margins modestly ahead of our expectations", said Steve Hasker, President and CEO of Thomson Reuters. "We remain focused on delivering product innovation across our portfolio, as exemplified by the launch of CoCounsel Legal, including Deep Research on Westlaw and guided workflows, and CoCounsel for tax, audit and accounting. With these advanced agentic AI offerings, we continue to leverage our authoritative content and deep expertise to bring transformative professional-grade AI solutions to our markets."

Mr. Hasker added, "As we look ahead, we remain committed to a balanced capital allocation approach and continue to assess inorganic opportunities as they arise, while focusing on delivering sustained value creation through a long-term investment strategy."

Consolidated Financial Highlights - Three Months Ended June 30

 
                         Three Months Ended June 30, 
                  (Millions of U.S. dollars, except for EPS) 
                                  (unaudited) 
IFRS Financial Measures(1)                  2025     2024   Change 
---------------------------------------  -------  -------  ------- 
Revenues                                  $1,785   $1,740      3 % 
Operating profit                            $436     $415      5 % 
Diluted earnings per share (EPS)           $0.69    $1.86    -63 % 
Net cash provided by operating 
 activities                                 $746     $705      5 % 
                                                                     Change at 
                                                                      Constant 
Non-IFRS Financial Measures(1)              2025     2024   Change    Currency 
---------------------------------------  -------  -------  -------  ---------- 
Revenue growth in constant currency                                        2 % 
Organic revenue growth                                                     7 % 
Adjusted EBITDA                             $678     $646      5 %         5 % 
Adjusted EBITDA margin                    37.8 %   37.1 %     70bp        70bp 
Adjusted EPS                               $0.87    $0.85      2 %         2 % 
Free cash flow                              $566     $541      4 % 
 (1) In addition to results reported in accordance with International 
 Financial Reporting Standards (IFRS), the company uses certain non-IFRS 
    financial measures as supplemental indicators of its operating performance 
 and financial position. See the "Non-IFRS Financial    Measures" section and 
 the tables appended to this news release for additional information on these 
 and other non-IFRS financial    measures, including how they are defined and 
 reconciled to the most directly comparable IFRS measures. 
------------------------------------------------------------------------------ 
 

Revenues increased 3% due to 3% growth in recurring revenues (82% of total revenues) and 5% growth in transactions revenues, partly offset by a 7% decline in Global Print. Total company revenue growth was negatively impacted by net acquisitions and disposals of 5%. Foreign currency had a slightly positive impact on revenue growth.

   -- Organic revenues increased 7% reflecting 9% growth in recurring revenues, 
      7% growth in transactions revenues and a 7% decline in Global Print. 
 
   -- The company's "Big 3" segments reported organic revenue growth of 9% and 
      collectively comprised 82% of total revenues. 

Operating profit increased 5%, primarily due to higher revenues and a benefit from other operating gains reflected in the current-year period compared to other operating losses in the prior-year period. These items were partly offset by higher operating expenses and amortization of computer software.

   -- Adjusted EBITDA, which excludes other operating gains and losses, 
      amortization of computer software, as well as other adjustments, 
      increased 5% and the related margin increased to 37.8% from 37.1% in the 
      prior-year period, primarily due to higher operating leverage. 

Diluted EPS decreased to $0.69 per share compared to $1.86 per share in the prior-year period. The current-year period included currency losses reflected in other finance costs or income. The prior-year period included a $468 million or a $1.04 per share non-cash tax benefit related to tax legislation enacted in Canada and an increase in value of the company's former investment in London Stock Exchange Group (LSEG).

   -- Adjusted EPS, which excludes the currency losses, the non-cash tax 
      benefit and the increase in value of LSEG, as well as other adjustments, 
      increased to $0.87 per share compared to $0.85 per share in the 
      prior-year period, primarily due to higher adjusted EBITDA, partly offset 
      by higher income tax expense and amortization of internally developed 
      software. 

Net cash provided by operating activities increased by $41 million primarily due to cash benefits from higher operating profit.

   -- Free cash flow increased by $25 million as higher net cash provided by 
      operating activities was partly offset by higher capital expenditures. 

Highlights by Customer Segment -- Three Months Ended June 30

 
                          (Millions of U.S. dollars) 
                                  (unaudited) 
                            Three Months 
                               Ended 
                              June 30,                    Change 
                           --------------  ------------------------------------ 
                                                      Constant 
                             2025    2024   Total  Currency(1)    Organic(1)(2) 
                           ------  ------  ------  -----------  --------------- 
Revenues 
------------------------ 
 Legal Professionals         $709    $727    -2 %         -3 %              8 % 
 Corporates                   472     442     7 %          6 %              9 % 
 Tax & Accounting 
  Professionals               277     250    11 %         13 %             11 % 
                           ------  ------ 
"Big 3" Segments 
 Combined(1)                1,458   1,419     3 %          3 %              9 % 
  Reuters News                218     205     7 %          5 %              5 % 
  Global Print                114     123    -7 %         -7 %             -7 % 
  Eliminations/Rounding       (5)     (7) 
                           ------  ------ 
Total Revenues             $1,785  $1,740     3 %          2 %              7 % 
                           ======  ====== 
 
Adjusted EBITDA((1) 
------------------------ 
 Legal Professionals         $339    $327     4 %          3 % 
 Corporates                   169     163     3 %          3 % 
 Tax & Accounting 
  Professionals               113      91    22 %         24 % 
                           ------  ------ 
"Big 3" Segments 
 Combined(1)                  621     581     7 %          6 % 
 Reuters News                  45      51   -11 %        -10 % 
 Global Print                  41      43    -5 %         -5 % 
 Corporate costs             (29)    (29)     n/a          n/a 
                           ------  ------ 
Total Adjusted EBITDA        $678    $646     5 %          5 % 
                           ======  ====== 
 
Adjusted EBITDA 
Margin((1) 
------------------------ 
 Legal Professionals       47.8 %  45.0 %   280bp        250bp 
 Corporates                35.7 %  36.8 %  -110bp       -120bp 
 Tax & Accounting 
  Professionals            39.3 %  36.8 %   250bp        240bp 
"Big 3" Segments 
 Combined(1)               42.3 %  41.0 %   130bp        110bp 
 Reuters News              20.8 %  24.8 %  -400bp       -360bp 
 Global Print              36.0 %  35.2 %    80bp         50bp 
Total Adjusted EBITDA 
 Margin                    37.8 %  37.1 %    70bp         70bp 
 (1) See the "Non-IFRS Financial Measures" section and the tables appended to 
 this news release for additional information on these and    other non-IFRS 
 financial measures. To compute segment and consolidated adjusted EBITDA 
 margin, the company excludes fair value    adjustments related to acquired 
 deferred revenue. (2) Computed for revenue growth only. n/a: not applicable 
------------------------------------------------------------------------------- 
 

Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (which excludes the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure performance.

Legal Professionals

Revenues decreased 3% substantially due to the impact from the disposal of FindLaw, which negatively impacted recurring and transactions revenues. Organic revenue growth was 8%.

   -- Recurring revenues decreased 2% (97% of total, increased 9% organic). 
      Organic revenue growth was primarily driven by Westlaw, CoCounsel, 
      CoCounsel Drafting, Practical Law, CLEAR, and the segment's international 
      businesses. 
 
   -- Transactions revenues decreased 22% (3% of total, decreased 7% organic). 

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