Thomson-Reuters Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did TRI Beat Earnings? Q2 2025 Results
Thomson Reuters posted a mixed but broadly solid second quarter for 2025, beating on the bottom line while falling just short on the top. Adjusted EPS came in at $0.87, clearing the $0.83 consensus estimate by 4.54%, while revenue of $1.78 billion trailed expectations by a slim 0.36%, though it still marked 2.6% growth year over year. The real story behind the quarter was the strength of Thomson Reuters' "Big 3" segments, which together delivered 9% combined organic revenue growth, with Tax and Accounting Professionals leading the way at 11% organic growth, fueled by integrations including the January 2025 SafeSend acquisition. Adjusted EBITDA margin expanded 70 basis points to 37.8%, reflecting operating leverage across the business. Free cash flow rose to $566 million from $541 million a year earlier. Management held its full-year 2025 outlook steady, targeting 7% to 7.5% organic revenue growth, approximately 38% adjusted EBITDA margin, and roughly $1.8 billion in free cash flow, with continued investment in agentic AI solutions for legal, tax, and accounting markets.
- 9% organic recurring revenue growth in Big 3 segments
- Operating leverage driving adjusted EBITDA margin expansion of 70bp to 37.8%
- Tax & Accounting Professionals segment delivered 11% organic revenue growth with 250bp margin expansion
- Westlaw, CoCounsel, Practical Law, and CLEAR drove Legal Professionals recurring growth
- Indirect and Direct Tax, Practical Law, and Pagero drove Corporates recurring growth
Forward Guidance & Outlook
Thomson Reuters maintained its full-year 2025 outlook for total organic revenue growth of approximately 7% to 7.5%, with Big 3 organic revenue growth of approximately 8.5% to 9%. The company expects adjusted EBITDA margin of approximately 38% and free cash flow of approximately $1.8 billion. Accrued capital expenditures are expected to approximate 8% of revenues. The effective tax rate on adjusted earnings is expected to be approximately 17% to 18%. Two items were updated: depreciation and amortization of computer software guidance was lowered to $825-$835 million (with $625-$635 million related to internally developed software), and net interest expense guidance was reduced to approximately $130 million from approximately $150 million due to higher-than-forecasted interest rates benefiting interest income. For Q3 2025, organic revenue growth is expected to be approximately 7% and adjusted EBITDA margin approximately 36%. The outlook assumes constant currency rates relative to 2024 and incorporates the SafeSend acquisition and FindLaw disposal but excludes any future acquisitions or dispositions.
TRI YoY Financials
TRI Revenue by Segment
TRI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.