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Thomson Reuters Reports Third-Quarter Results for 2025

Introduction
Thomson Reuters (TSX/Nasdaq: TRI) has unveiled its third-quarter earnings for 2025, showcasing notable growth across its segments, underpinned by a robust AI-driven innovation strategy.
The results indicate a steady upward trend in revenues, with total company revenues witnessing a 3% increase compared to the previous year, while organic revenues surged by an impressive 7%. These figures underscore the strength of the company's core operations and its capability to adapt to a dynamic market environment.

Revenue Breakdown

The company reported total revenues reaching $1.782 billion, with substantial contributions from its three main segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. Particularly noteworthy is the organic revenue growth of 9% within these segments. This exceptional performance illustrates the increasing dependence of customers on Thomson Reuters' AI solutions like CoCounsel Legal and CoCounsel for tax, audit, and accounting purposes.

The increase in overall revenue can be attributed to:

• - Recurring Revenues: accounting for around 83% of total revenues, these grew by 9% year-over-year.
• - Transaction Revenues: which surged by 12%, further highlighting the growing market reliance on Thomson Reuters' services.
• - Despite a 4% decline in Global Print revenues, the overall figures signal a healthy growth trajectory for the company.

Financial Performance

Operating profit soared by 43%, amounting to $593 million, which places Thomson Reuters in a sound financial position. The diluted earnings per share also reflected this positive trend, rising by 40% compared to the previous year. The company achieved an adjusted EBITDA of $672 million, marking a 10% increase, thereby bringing the adjusted EBITDA margin to 37.7%, up from 35.3% in the previous year.

Thomson Reuters' proactive approach, evident through its aggressive use of AI and strategic focus, lends itself to a solid foundation for continued growth. In response to the reported outcomes, President and CEO Steve Hasker remarked, "Our third-quarter results reflect continued momentum and the ongoing execution of our AI-driven innovation strategy. We are determined to empower our customers to navigate an increasingly complex business landscape and stay ahead."

Future Outlook

Looking ahead, Thomson Reuters has reaffirmed its full-year outlook for 2025 across all metrics, asserting expectations for continued growth. The financial framework for 2026 has also been updated, raising expectations regarding adjusted EBITDA margin expansion and free cash flow without altering the other metrics.

Thomson Reuters recently completed a $1 billion share buyback initiative, aimed at bolstering shareholder value. This commitment to returning value to investors aligns well with the overall positive financial outlook.

In addition, the acquisition of Additive AI, Inc., which specializes in AI-powered tax document processing, further cements Thomson Reuters' commitment to enhancing its offerings in the tax and accounting sectors. This is expected to significantly contribute to the organic growth forecast for the upcoming years.

Conclusion

Overall, the third-quarter results for Thomson Reuters in 2025 showcase a stable performance underpinned by strong organic revenue growth and effective operational management. The successful integration of AI into its services appears to be a game-changer as the company continues to reinforce its position in the legal, corporate, and tax sectors. Such progressive strategies ensure that Thomson Reuters remains at the forefront of industry advancements. Investors and stakeholders can look forward with optimism as the company sets its focus on navigating the complexities of the future market landscape confidently.