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
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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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