TORONTO, Nov. 4, 2025 /PRNewswire/ -- Thomson Reuters (TSX/Nasdaq: TRI) today reported results for the third quarter ended September 30, 2025:
- Solid revenue momentum continued in the third 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)
- Reaffirmed full-year 2025 outlook for all metrics
- Updated full-year 2026 financial framework, raising expectations for adjusted EBITDA margin expansion and free cash flow; all other metrics are unchanged
- Completed $1.0 billion share repurchase program announced in August 2025
"Our third-quarter results reflect continued momentum and the ongoing execution of our AI-driven innovation strategy," said Steve Hasker, President and CEO of Thomson Reuters. "The growth in organic revenue highlights the impact of our agentic AI solutions like CoCounsel Legal and CoCounsel for tax, audit and accounting. We are launching new products and reshaping professional workflows by combining our expertise and trusted, authoritative content with cutting-edge technology. This is how we are empowering our customers to navigate increasing complexity and stay ahead."
Mr. Hasker added, "With a robust capital position and a clear focus on our long-term investment strategy, we are well-positioned to build on this momentum, assess further inorganic opportunities, and continue delivering sustained growth and shareholder value."
Consolidated Financial Highlights - Three Months Ended September 30
| | Three Months Ended September 30, | | ||||||||
| | (Millions of U.S. dollars, except for EPS) | | ||||||||
| | (unaudited) | | ||||||||
| | | | | | | | | | | |
| | IFRS Financial Measures (1) | | 2025 | | 2024 | | Change | | | |
| | Revenues | | $1,782 | | $1,724 | | 3 % | | | |
| | Operating profit | | $593 | | $415 | | 43 % | | | |
| | Diluted earnings per share (EPS) | | $0.94 | | $0.67 | | 40 % | | | |
| | Net cash provided by operating activities | | $704 | | $756 | | -7 % | | | |
| | | | | | | | | | | |
| | Non-IFRS Financial Measures (1) | | 2025 | | 2024 | | Change | | Change at | |
| | Revenue growth in constant currency | | | | | | | | 3 % | |
| | Organic revenue growth | | | | | | | | 7 % | |
| | Adjusted EBITDA | | $672 | | $609 | | 10 % | | 9 % | |
| | Adjusted EBITDA margin | | 37.7 % | | 35.3 % | | 240bp | | 220bp | |
| | Adjusted EPS | | $0.85 | | $0.80 | | 6 % | | 5 % | |
| | Free cash flow | | $526 | | $591 | | -11 % | | | |
| | | | | | | | | | | |
| | (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 (83% of total revenues) and 12% growth in transactions revenues, partly offset by a 4% decline in Global Print. Total company revenue growth was negatively impacted by net acquisitions and disposals of 4%. Foreign currency had no significant impact on revenue growth.
- Organic revenues increased 7% reflecting 9% growth in recurring revenues, 4% growth in transactions revenues and a 4% 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 43% driven by an other operating gain on the sale of the company's remaining minority equity interest in the Elite business as well as higher revenues, partly offset by higher amortization of computer software.
- Adjusted EBITDA, which excludes other operating gains and amortization of computer software, as well as other adjustments, increased 10% and the related margin increased to 37.7% from 35.3% in the prior-year period, primarily due to higher operating leverage. Foreign currency contributed 20 basis points to the year-over-year change in adjusted EBITDA margin.
Diluted EPS increased to $0.94 per share compared to $0.67 per share in the prior-year period primarily due to higher operating profit.
- Adjusted EPS, which excludes other operating gains, as well as other adjustments, increased to $0.85 per share compared to $0.80 per share in the prior-year period, primarily due to higher adjusted EBITDA, partly offset by higher interest expense and amortization of internally developed software.
Net cash provided by operating activities decreased by $52 million as the cash benefits from higher operating profit were more than offset by certain changes in working capital.
- Free cash flow decreased by $65 million due to lower net cash provided by operating activities and higher capital expenditures.
Highlights by Customer Segment - Three Months Ended September 30
| | (Millions of U.S. dollars) | | ||||||||||
| | (unaudited) | | ||||||||||
| | | | Three months ended | | Change | | ||||||
| | | | 2025 | | 2024 | | Total | Constant | | Organic (1)(2) | | |
| | Revenues | | | | | | | | | | | |
| | Legal Professionals | | $728 | | $745 | | -2 % | | -2 % | | 9 % | |
| | Corporates | | 478 | | 437 | | 10 % | | 9 % | | 9 % | |
| | Tax & Accounting Professionals | | 251 | | 221 | | 13 % | | 15 % | | 10 % | |
| | "Big 3" Segments Combined(1) | | 1,457 | | 1,403 | | 4 % | | 4 % | | 9 % | |
| | Reuters News | | 207 | | 199 | | 4 % | | 4 % | | 3 % | |
| | Global Print | | 124 | | 128 | | -4 % | | -4 % | | -4 % | |
| | Eliminations/Rounding | | (6) | | (6) | | | | | | | |
| | Total Revenues | | $1,782 | | $1,724 | | 3 % | | 3 % | | 7 % | |
| | | | | | | | | | | | | |
| | Adjusted EBITDA (1) | | | | | | | | | | | |
| | Legal Professionals | | $354 | | $334 | | 6 % | | 5 % | | | |
| | Corporates | | 174 | | 162 | | 8 % | | 7 % | | | |
| | Tax & Accounting Professionals | | 78 | | 59 | | 32 % | | 33 % | | | |
| | "Big 3" Segments Combined(1) | | 606 | | 555 | | 9 % | | 8 % | | | |
| | Reuters News | | 42 | | 40 | | 1 % | | 2 % | | | |
| | Global Print | | 46 | | 43 | | 8 % | | 6 % | | | |
| | Corporate costs | | (22) | | (29) | | n/a | | n/a | | | |
| | Total Adjusted EBITDA | | $672 | | $609 | | 10 % | | 9 % | | | |
| | | | | | | | | | | | | |
| | Adjusted EBITDA Margin (1) | | | | | | | | | | | |
| | Legal Professionals | | 48.7 % | | 44.9 % | | 380bp | | 330bp | | | |
| | Corporates | | 36.5 % | | 36.8 % | | -30bp | | -50bp | | | |
| | Tax & Accounting Professionals | | 31.2 % | | 26.8 % | | 440bp | | 410bp | | | |
| | "Big 3" Segments Combined(1) | | 41.7 % | | 39.5 % | | 220bp | | 180bp | | | |
| | Reuters News | | 19.9 % | | 20.4 % | | -50bp | | -30bp | | | |
| | Global Print | | 37.1 % | | 33.1 % | | 400bp | | 330bp | | | |
| | Total Adjusted EBITDA Margin | | 37.7 % | | 35.3 % | | 240bp | | 220bp | | | |
| | | | | | | | | | | | | |
| | (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 constantcurrency (which excludes the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure performance.
Legal Professionals
Revenues decreased 2% due to the disposal of FindLaw, which negatively impacted recurring and transactions revenues. Organic revenue growth was 9%.
- Recurring revenues decreased 2% (97% of total, increased 9% organic). Organic revenue growth was primarily driven by Westlaw, CoCounsel, CoCounsel Drafting, Practical Law, and the segment's international businesses.
- Transactions revenues decreased 22% (3% of total, increased 3% organic).
Adjusted EBITDA increased 6% to $354 million.
- The margin increased to 48.7% from 44.9% primarily reflecting higher operating leverage due in part to the disposal of the FindLaw business.
Corporates
Revenues increased 9%, all organic.
- Recurring revenues increased 8% (89% of total, increased 9% organic). Organic revenue growth was primarily driven by Indirect Tax, Direct Tax, Pagero, Practical Law, and the segment's international businesses.
- Transactions revenues increased 19% (11% of total, increased 5% organic). Organic revenue growth was primarily driven by increases in Pagero, Indirect Tax, Confirmation and Global Trade.
Adjusted EBITDA increased 8% to $174 million and the margin decreased to 36.5% from 36.8%.
Tax & Accounting Professionals
Revenues increased 15%, including the acquisition impact of SafeSend which was reflected in transactions revenues. Organic revenue growth was 10%.
- Recurring revenues increased 9% (73% of total, all organic). Organic revenue growth was primarily driven by the segment's Latin America business and its tax and audit products.
- Transactions revenues increased 36% (27% of total, increased 12% organic). Organic revenue growth was primarily driven by SafeSend, UltraTax, Confirmation and the segment's international businesses.
Adjusted EBITDA increased 32% to $78 million.
- The margin increased to 31.2% from 26.8%, primarily reflecting operating leverage on higher revenue growth.
The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
Reuters News
Revenues increased 4%, 3% organic, primarily due to higher Agency revenues and a contractual price increase from our news agreement with the Data & Analytics business of London Stock Exchange Group (LSEG).
Adjusted EBITDA increased 1% to $42 million and the margin decreased to 19.9% from 20.4%.
Global Print
Revenues decreased 4%, all organic, driven by lower shipment volumes.
Adjusted EBITDA increased 8% to $46 million, and the margin increased to 37.1% from 33.1%, both reflecting lower expenses.
Corporate Costs
Corporate costs were $22 million compared to $29 million in the prior-year period.
Consolidated Financial Highlights - Nine Months Ended September 30
| | Nine Months Ended September 30, | | ||||||||
| | (Millions of U.S. dollars, except for EPS) | | ||||||||
| | (unaudited) | | ||||||||
| | | | | | | | | | | |
| | IFRS Financial Measures (1) | | 2025 | | 2024 | | Change | | | |
| | Revenues | | $5,467 | | $5,349 | | 2 % | | | |
| | Operating profit | | $1,592 | | $1,387 | | 15 % | | | |
| | Diluted EPS | | $2.59 | | $3.59 | | -28 % | | | |
| | Net cash provided by operating activities | | $1,895 | | $1,893 | | 0 % | | | |
| | | | | | | | | | | |
| | Non-IFRS Financial Measures (1) | | 2025 | | 2024 | | Change | | Change at | |
| | Revenue growth in constant currency | | | | | | | | 2 % | |
| | Organic revenue growth | | | | | | | | 7 % | |
| | Adjusted EBITDA | | $2,159 | | $2,061 | | 5 % | | 4 % | |
| | Adjusted EBITDA margin | | 39.3 % | | 38.5 % | | 80bp | | 70bp | |
| | Adjusted EPS | | $2.85 | | $2.76 | | 3 % | | 3 % | |
| | Free cash flow | | $1,369 | | $1,403 | | -3 % | | | |
| | | | | | | | | | | |
| | (1) In addition to results reported in accordance with 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 2% due to 3% growth in recurring revenues (81% of total revenues) and 4% growth in transactions revenues, partly offset by a 6% decline in Global Print. Total company revenue growth was negatively impacted by net acquisitions and disposals of 4%. Foreign currency had no significant impact on revenue growth.
- Organic revenues increased 7% reflecting 9% growth in recurring revenues, 3% growth in transactions revenues and a 5% 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 15% driven by an other operating gain on the sale of the company's remaining minority equity interest in the Elite business in the current-year period compared to other operating losses in the prior-year period. Higher revenues also contributed to growth. 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 39.3% from 38.5%. Foreign currency contributed 10 basis points to the year-over-year change in adjusted EBITDA margin.
Diluted EPS decreased to $2.59 per share compared to $3.59 per share in the prior-year period primarily because the prior-year period included a $468 million or $1.04 per share non-cash tax benefit related to tax legislation enacted in Canada.
- Adjusted EPS, which excludes the non-cash tax benefit, other operating gains and losses, as well as other adjustments, increased to $2.85 per share compared to $2.76 per share in the prior-year period, primarily due to higher adjusted EBITDA, partly offset by higher amortization of internally developed software.
Net cash provided by operating activities was essentially unchanged as the cash benefits from higher operating profit were offset by certain changes in working capital.
- Free cash flow decreased by $34 million primarily due to higher capital expenditures.
Highlights by Customer Segment - Nine Months Ended September 30
| | (Millions of U.S. dollars) | | ||||||||||
| | (unaudited) | | ||||||||||
| | | | Nine months ended | | Change | | ||||||
| | | | 2025 | | 2024 | | Total | Constant | | Organic (1)(2) | | |
| | Revenues | | | | | | | | | | | |
| | Legal Professionals | | $2,130 | | $2,193 | | -3 % | | -3 % | | 8 % | |
| | Corporates | | 1,491 | | 1,386 | | 8 % | | 8 % | | 9 % | |
| | Tax & Accounting Professionals | | 888 | | 799 | | 11 % | | 13 % | | 11 % | |
| | "Big 3" Segments Combined(1) | | 4,509 | | 4,378 | | 3 % | | 3 % | | 9 % | |
| | Reuters News | | 621 | | 614 | | 1 % | | 1 % | | 0 % | |
| | Global Print | | 354 | | 375 | | -6 % | | -5 % | | -5 % | |
| | Eliminations/Rounding | | (17) | | (18) | | | | | | | |
| | Total Revenues | | $5,467 | | $5,349 | | 2 % | | 2 % | | 7 % | |
| | | | | | | | | | | | | |
| | Adjusted EBITDA (1) | | | | | | | | | | | |
| | Legal Professionals | | $1,029 | | $1,003 | | 3 % | | 2 % | | | |
| | Corporates | | 556 | | 518 | | 7 % | | 7 % | | | |
| | Tax & Accounting Professionals | | 401 | | 331 | | 21 % | | 22 % | | | |
| | "Big 3" Segments Combined(1) | | 1,986 | | 1,852 | | 7 % | | 7 % | | | |
| | Reuters News | | 126 | | 151 | | -17 % | | -17 % | | | |
| | Global Print | | 131 | | 133 | | -2 % | | -2 % | | | |
| | Corporate costs | | (84) | | (75) | | n/a | | n/a | | | |
| | Total Adjusted EBITDA | | $2,159 | | $2,061 | | 5 % | | 4 % | | | |
| | | | | | | | | | | | | |
| | Adjusted EBITDA Margin (1) | | | | | | | | | | | |
| | Legal Professionals | | 48.3 % | | 45.7 % | | 260bp | | 210bp | | | |
| | Corporates | | 37.3 % | | 37.2 % | | 10bp | | -10bp | | | |
| | Tax & Accounting Professionals | | 44.2 % | | 41.5 % | | 270bp | | 230bp | | | |
| | "Big 3" Segments Combined(1) | | 43.9 % | | 42.3 % | | 160bp | | 120bp | | | |
| | Reuters News | | 20.2 % | | 24.6 % | | -440bp | | -440bp | | | |
| | Global Print | | 37.0 % | | 35.5 % | | 150bp | | 110bp | | | |
| | Total Adjusted EBITDA Margin | | 39.3 % | | 38.5 % | | 80bp | | 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 | | | | | | | | ||||
2025 Outlook
The company reaffirmed its 2025 full-year outlook, last updated on August 6, 2025, for all measures. Total revenue growth and organic revenue growth are trending towards the lower-end of the 3.0% to 3.5% and 7.0% to 7.5% ranges, respectively. The organic revenue growth outlook for the company's "Big 3" segments remains at approximately 9%.
The company's outlook for 2025 in the table below assumes constant currency rates and does not factor in the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.
The company expects its fourth-quarter 2025 organic revenue growth to be approximately 7%, including approximately 9% organic revenue growth for its "Big 3" segments, and its adjusted EBITDA margin to be approximately 39%.
The company's 2025 outlook is forward-looking information that is subject to risks and uncertainties (see "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions"). In particular, the company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment, among other factors, could impact the company's ability to achieve its outlook.
Reported Full-Year 2024 Results and Full-Year 2025 Outlook
| Total Thomson Reuters | FY 2024 Reported | FY 2025 Outlook 2/6/2025 | FY 2025 Outlook 8/6/2025 | FY 2025 Outlook 11/4/2025 |
| Total Revenue Growth | 7 % | 3.0 - 3.5%(2) | Unchanged | Unchanged |
| Organic Revenue Growth(1) | 7 % | 7.0 - 7.5 % | Unchanged | Unchanged |
| Adjusted EBITDA Margin(1) | 38.2 % | ~39% | Unchanged | Unchanged |
| Corporate Costs | $105 million | $120 - $130 million | Unchanged | Unchanged |
| Free Cash Flow(1) | $1.8 billion | ~$1.9 billion | Unchanged | Unchanged |
| Accrued Capex as % of Revenues(1) | 8.4 % | ~8% | Unchanged | Unchanged |
| Depreciation & Amortization of Computer Software Depreciation & Amortization of Internally Developed Software Amortization of Acquired Software | $731 million $584 million $147 million | $835 - $855 million $635 - $655 million ~$200 million | $825 - $835 million $625 - $635 million Unchanged | Unchanged Unchanged Unchanged |
| Net Interest Expense | $125 million | ~$150 million | ~$130 million | Unchanged |
| Effective Tax Rate on Adjusted Earnings(1) | 17.6 % | ~19% | Unchanged | Unchanged |
| "Big 3" Segments (1) | FY 2024 Reported | FY 2025 Outlook 2/6/2025 | FY 2025 Outlook 8/6/2025 | FY 2025 Outlook 11/4/2025 |
| Total Revenue Growth | 8 % | ~4%(2) | Unchanged | Unchanged |
| Organic Revenue Growth | 9 % | ~9% | Unchanged | Unchanged |
| Adjusted EBITDA Margin | 42.1 % | ~43% | Unchanged | Unchanged |
| | |
| (1) | Non-IFRS financial measures. See the "Non-IFRS Financial Measures" section below as well as the tables appended to this news release for more information. |
| (2) | Total revenue growth reflects the impact of the disposals of FindLaw and other non-core businesses in December 2024. |
Updated 2026 Financial Framework
The company updated its full-year 2026 financial framework provided on February 6, 2025. It now expects adjusted EBITDA margin expansion of approximately 100 basis points, up from the prior view of 50 basis points or more, and also expects free cash flow of approximately $2.1 billion, which is the high end of the prior $2.0 to $2.1 billion range.
All other measures remained unchanged. The company continues to target an organic revenue growth range of 7.5% to 8.0%, driven by an approximately 9.5% organic growth rate for the "Big 3" segments. It anticipates accrued capital expenditures as a percentage of revenues to be approximately 8%, and an effective tax rate of approximately 19%.
The updated financial framework assumes constant currency rates and does not factor in the impact of any future acquisitions or dispositions that may occur during this time horizon.
The information in this section is forward-looking. Actual results, which will include the impact of currency and future acquisitions and dispositions completed during 2025 and 2026, may differ materially from the company's 2025 outlook and 2026 financial framework. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions."
Recent Acquisition
In September 2025, the company acquired Additive AI, Inc. (Additive), a U.S. based specialist in AI-powered tax document processing for tax and accounting professionals. Additive's GenAI-native platform ingests and parses complex U.S. federal tax forms, including schedule K-1, during tax preparation. This business is reported in the Tax & Accounting Professionals segment.
Sale of minority equity interest in Elite
In September 2025, the company sold its remaining minority interest in the Elite business, a provider of financial practice management solutions to law firms. The company received proceeds of $231 million from the transaction and recorded a pre-tax gain of $161 million.
Dividends
In February 2025, the company announced a 10% or $0.22 per share annualized increase in the dividend to $2.38 per common share, representing the 32nd consecutive year of dividend increases and the fourth consecutive 10% increase. A quarterly dividend of $0.595 per share is payable on December 10, 2025 to common shareholders of record as of November 18, 2025.
$1.0 Billion Share Repurchase Program
In August 2025, the company announced its plan to repurchase up to $1.0 billion of its common shares under a new Normal Course Issuer Bid that was approved by the TSX. In late October 2025, the Company completed the program by repurchasing 6.0 million of its common shares. Thomson Reuters had approximately 444.8 million common shares outstanding as of October 31, 2025.
Thomson Reuters
Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, audit, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com.
NON-IFRS FINANCIAL MEASURES
Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB).
This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earnings and the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, net debt and leverage ratio of net debt to adjusted EBITDA, selected measures excluding the impact of foreign currency, changes in revenues computed on an organic basis as well as all financial measures for the "Big 3" segments. The company modified its definition of net debt to account for interest rate swap arrangements entered into during the third quarter of 2025. The change did not have a material impact on its calculation of net debt.
Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook and financial framework. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables.
The company's outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook and financial framework would be potentially misleading and not practical due to the difficulty of projecting items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for purposes of its outlook and financial framework only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains and losses that generally arise from business transactions that the company does not currently anticipate.
ROUNDING
Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS
Certain statements in this news release, including, but not limited to, statements in Mr. Hasker's comments, the "2025 Outlook" and the "Updated 2026 Financial Framework" sections, are forward-looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks, uncertainties and assumptions are beyond the company's control and the effects of them can be difficult to predict.
Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied by forward-looking statements in this news release include, but are not limited to, those discussed on pages 16-27 in the "Risk Factors" section of the company's 2024 annual report. These and other risk factors are discussed in materials that Thomson Reuters from time-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission (SEC). Thomson Reuters' annual and quarterly reports are also available in the "Investor Relations" section of tr.com .
The company's business outlook and financial framework are based on information currently available to the company and are based on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its business outlook and financial framework. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's business outlook and financial framework assume that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and financial framework, as well as affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2025 outlook which, in all material respects, apply to the 2026 financial framework, see pages 18-19 of the company's second-quarter management's discussion and analysis (MD&A) for the period ended June 30, 2025. The company's quarterly MD&A and annual report was filed with, or furnished to, the Canadian securities regulatory authorities and the U.S. SEC and are also available in the "Investor Relations" section of tr.com .
The company has provided an outlook and financial framework for the purpose of presenting information about current expectations for the period presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which reflect expectations only as of the date of this news release.
Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-looking statements.
CONTACTS
| MEDIA Gehna Singh Kareckas Senior Director, Corporate Affairs +1 613 979 4272 [email protected] | INVESTORS Gary Bisbee, CFA Head of Investor Relations +1 646 540 3249 [email protected] |
Thomson Reuters will webcast a discussion of its third-quarter 2025 results, its 2025 business outlook, and its updated 2026 financial framework today beginning at 9:00 a.m. Eastern Standard Time (EST). You can access the webcast by visiting ir.tr.com. An archive of the webcast will be available following the presentation.
| Thomson Reuters Corporation | |||||||
| Consolidated Income Statement | |||||||
| (millions of U.S. dollars, except per share data) | |||||||
| (unaudited) | |||||||
| | Three Months Ended | | Nine Months Ended | ||||
| | 2025 | | 2024 | | 2025 | | 2024 |
| CONTINUING OPERATIONS | | | | | | | |
| Revenues | $1,782 | | $1,724 | | $5,467 | | $5,349 |
| Operating expenses | (1,115) | | (1,117) | | (3,347) | | (3,288) |
| Depreciation | (28) | | (30) | | (83) | | (87) |
| Amortization of computer software | (182) | | (151) | | (534) | | (458) |
| Amortization of other identifiable intangible assets | (24) | | (21) | | (73) | | (69) |
| Other operating gains (losses), net | 160 | | 10 | | 162 | | (60) |
| Operating profit | 593 | | 415 | | 1,592 | | 1,387 |
| Finance costs, net: | | | | | | | |
| Net interest expense | (38) | | (21) | | (103) | | (97) |
| Other finance income (costs) | 7 | | (32) | | (51) | | (8) |
| Income before tax and equity method investments | 562 | | 362 | | 1,438 | | 1,282 |
| Share of post-tax (losses) earnings in equity method investments | (13) | | (8) | | (23) | | 45 |
| Tax (expense) benefit | (121) | | (77) | | (265) | | 258 |
| Earnings from continuing operations | 428 | | 277 | | 1,150 | | 1,585 |
| (Loss) earnings from discontinued operations, net of tax | (5) | | 24 | | 20 | | 35 |
| Net earnings | $423 | | $301 | |
$1,170 | | $1,620 |
| Earnings (loss) attributable to: | | | | | | | |
| Common shareholders | $423 | | $301 | | $1,170 | | $1,623 |
| Non-controlling interests | - | | - | | - | | (3) |
| | | | | | | | |
| Earnings per share: | | | | | | | |
| Basic earnings (loss) per share: | | | | | | | |
| From continuing operations | $0.95 | | $0.61 | | $2.55 | | $3.51 |
| From discontinued operations | (0.01) | | 0.06 | | 0.04 | | 0.08 |
| Basic earnings per share | $0.94 | | $0.67 | | $2.59 | | $3.59 |
| Diluted earnings (loss) per share: | | | | | | | |
| From continuing operations | $0.95 | | $0.61 | | $2.54 | | $3.51 |
| From discontinued operations | (0.01) | | 0.06 | | 0.05 | | 0.08 |
| Diluted earnings per share | $0.94 | | $0.67 | | $2.59 | | $3.59 |
| | | | | | | | |
| Basic weighted-average common shares | 449,783,419 | | 449,886,792 | | 450,244,795 | | 450,788,536 |
| Diluted weighted-average common shares | 450,283,728 | | 450,458,885 | | 450,796,588 | | 451,424,716 |
| Thomson Reuters Corporation | |||||||
| Consolidated Statement of Financial Position | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | | | September 30, | | December 31, | ||
| | | | | | 2025 | | 2024 |
| Assets | | | | | | | |
| Cash and cash equivalents | | | | | $618 | | $1,968 |
| Trade and other receivables | | | | | 1,053 | | 1,087 |
| Other financial assets | | | | | 87 | | 35 |
| Prepaid expenses and other current assets | | | | | 428 | | 400 |
| Current assets | | | | | 2,186 | | 3,490 |
| | | | | | | | |
| Property and equipment, net | | | | | 357 | | 386 |
| Computer software, net | | | | | 1,680 | | 1,453 |
| Other identifiable intangible assets, net | | | | | 3,127 | | 3,134 |
| Goodwill | | | | | 7,909 | | 7,262 |
| Equity method investments | | | | | 203 | | 269 |
| Other financial assets | | | | | 442 | | 442 |
| Other non-current assets | | | | | 629 | | 625 |
| Deferred tax | | | | | 1,317 | | 1,376 |
| Total assets | | | | | $17,850 | | $18,437 |
| | | | | | | | |
| Liabilities and equity | | | | | | | |
| Liabilities | | | | | | | |
| Current indebtedness | | | | | $838 | | $973 |
| Payables, accruals and provisions | | | | | 947 | | 1,091 |
| Current tax liabilities | | | | | 216 | | 197 |
| Deferred revenue | | | | | 1,132 | | 1,062 |
| Other financial liabilities | | | | | 428 | | 113 |
| Current liabilities | | | | | 3,561 | | 3,436 |
| | | | | | | | |
| Long-term indebtedness | | | | | 1,338 | | 1,847 |
| Provisions and other non-current liabilities | | | | | 675 | | 675 |
| Other financial liabilities | | | | | 206 | | 232 |
| Deferred tax | | | | | 309 | | 241 |
| Total liabilities | | | | | 6,089 | | 6,431 |
| | | | | | | | |
| Equity | | | | | | | |
| Capital | | | | | 3,561 | | 3,498 |
| Retained earnings | | | | | 9,113 | | 9,699 |
| Accumulated other comprehensive loss | | | | | (913) | | (1,191) |
| Total equity | | | | | 11,761 | | 12,006 |
| Total liabilities and equity | | | | | $17,850 | | $18,437 |
| Thomson Reuters Corporation | |||||||
| Consolidated Statement of Cash Flow | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | Three Months Ended | | Nine Months Ended | ||||
| | 2025 | | 2024 | | 2025 | | 2024 |
| Cash provided by (used in): | | | | | | | |
| Operating activities | | | | | | | |
| Earnings from continuing operations | $428 | | $277 | | $1,150 | | $1,585 |
| Adjustments for: | | | | | | | |
| Depreciation | 28 | | 30 | | 83 | | 87 |
| Amortization of computer software | 182 | | 151 | | 534 | | 458 |
| Amortization of other identifiable intangible assets | 24 | | 21 | | 73 | | 69 |
| Share of post-tax losses (earnings) in equity method investments | 13 | | 8 | | 23 | | (45) |
| Net (gains) losses on disposals of businesses and investments | (162) | | (1) | | (164) | | 3 |
| Deferred tax | 33 | | 8 | | 51 | | (687) |
| Other | 52 | | 56 | | 223 | | 173 |
| Changes in working capital and other items | 107 | | 206 | | (79) | | 252 |
| Operating cash flows from continuing operations | 705 | | 756 | | 1,894 | | 1,895 |
| Operating cash flows from discontinued operations | (1) | | - | | 1 | | (2) |
| Net cash provided by operating activities | 704 | | 756 | | 1,895 | | 1,893 |
| Investing activities | | | | | | | |
| Acquisitions, net of cash acquired | (193) | | (25) | | (823) | | (492) |
| Proceeds related to disposals of businesses and investments | 247 | | 33 | | 252 | | 29 |
| Proceeds from sales of LSEG shares | - | | - | | - | | 1,854 |
| Capital expenditures | (162) | | (149) | | (476) | | (446) |
| Other investing activities | - | | - | | 1 | | 6 |
| Taxes paid on sales of LSEG shares and disposals | (33) | | (65) | | (33) | | (202) |
| Net cash (used in) provided by investing activities | (141) | | (206) | | (1,079) | | 749 |
| Financing activities | | | | | | | |
| Repayments of debt | - | | (242) | | (999) | | (290) |
| Net borrowings (repayments) under short-term loan facilities | 339 | | - | | 339 | | (139) |
| Payments of lease principal | (15) | | (15) | | (48) | | (46) |
| Repurchases of common shares | (670) | | - | | (670) | | (639) |
| Dividends paid on preference shares | (1) | | (1) | | (3) | | (4) |
| Dividends paid on common shares | (260) | | (236) | | (779) | | (708) |
| Purchase of non-controlling interests | - | | - | | - | | (384) |
| Other financing activities | - | | 2 | | (10) | | 3 |
| Net cash used in financing activities | (607) | | (492) | | (2,170) | | (2,207) |
| Translation adjustments | (2) | | 3 | | 4 | | (2) |
| (Decrease) increase in cash and cash equivalents | (46) | | 61 | | (1,350) | | 433 |
| Cash and cash equivalents at beginning of period | 664 | | 1,670 | | 1,968 | | 1,298 |
| Cash and cash equivalents at end of period | $618 | | $1,731 | | $618 | | $1,731 |
| Thomson Reuters Corporation | |||||||
| Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (1) | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | | | | | | | |
| | Three months ended | | Nine months ended | | Year ended | ||
| | 2025 | 2024 | | 2025 | 2024 | | 2024 |
| Earnings from continuing operations | $428 | $277 | | $1,150 | $1,585 | | $2,192 |
| Adjustments to remove: | | | | | | | |
| Tax expense (benefit) | 121 | 77 | | 265 | (258) | | (123) |
| Other finance (income) costs | (7) | 32 | | 51 | 8 | | (45) |
| Net interest expense | 38 | 21 | | 103 | 97 | | 125 |
| Amortization of other identifiable intangible assets | 24 | 21 | | 73 | 69 | | 91 |
| Amortization of computer software | 182 | 151 | | 534 | 458 | | 618 |
| Depreciation | 28 | 30 | | 83 | 87 | | 113 |
| EBITDA | $814 | $609 | | $2,259 | $2,046 | | $2,971 |
| Adjustments to remove: | | | | | | | |
| Share of post-tax losses (earnings) in equity method | 13 | 8 | | 23 | (45) | | (40) |
| Other operating (gains) losses, net | (160) | (10) | | (162) | 60 | | (144) |
| Fair value adjustments* | 5 | 2 | | 39 | - | | (8) |
| Adjusted EBITDA (1) | $672 | $609 | | $2,159 | $2,061 | | $2,779 |
| Adjusted EBITDA margin (1) | 37.7 % | 35.3 % | | 39.3 % | 38.5 % | | 38.2 % |
| |
| * Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue. |
| Thomson Reuters Corporation | |||||||
| Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow (1) | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | | | | | | | |
| | Three months ended | | Nine months ended | Year ended | |||
| | 2025 | 2024 | | 2025 | 2024 | | 2024 |
| Net cash provided by operating activities | $704 | $756 | | $1,895 | $1,893 | | $2,457 |
| Capital expenditures | (162) | (149) | | (476) | (446) | | (607) |
| Other investing activities | - | - | | 1 | 6 | | 46 |
| Payments of lease principal | (15) | (15) | | (48) | (46) | | (63) |
| Dividends paid on preference shares | (1) | (1) | | (3) | (4) | | (5) |
| Free cash flow (1) | $526 | $591 | | $1,369 | $1,403 | | $1,828 |
| Thomson Reuters Corporation | |||||||
| Reconciliation of Capital Expenditures to Accrued Capital Expenditures (1) | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | | | | | Year ended | ||
| | | | | | | | 2024 |
| Capital expenditures | | | | | | | $607 |
| Remove: IFRS adjustment to cash basis | | | | | | | 2 |
| Accrued capital expenditures (1) | | | | | | | $609 |
| Accrued capital expenditures as a percentage of revenues (1) | | | | | 8.4 % | ||
| | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Thomson Reuters Corporation | |||||||
| Reconciliation of Net Earnings to Adjusted Earnings (1) | |||||||
| Reconciliation of Total Change in Adjusted EPS to Change in Constant Currency (1) | |||||||
| (millions of U.S. dollars, except for share and per share data) | |||||||
| (unaudited) | |||||||
| | | | | | | | |
| | Three months ended | | Nine months ended | | Year ended | ||
| | 2025 | 2024 | | 2025 | 2024 | | 2024 |
| Net earnings | $423 | $301 | | $1,170 | $1,620 | | $2,207 |
| Adjustments to remove: | | | | | | | |
| Fair value adjustments* | 5 | 2 | | 39 | - | | (8) |
| Amortization of acquired computer software | 52 | 34 | | 153 | 109 | | 147 |
| Amortization of other identifiable intangible assets | 24 | 21 | | 73 | 69 | | 91 |
| Other operating (gains) losses, net | (160) | (10) | | (162) | 60 | | (144) |
| Other finance (income) costs | (7) | 32 | | 51 | 8 | | (45) |
| Share of post-tax losses (earnings) in equity method | 13 | 8 | | 23 | (45) | | (40) |
| Tax on above items(1) | 16 | (5) | | (30) | (45) | | (9) |
| Tax items impacting comparability(1) | 11 | (2) | | (9) | (483) | | (478) |
| Loss (earnings) from discontinued operations, net of tax | 5 | (24) | | (20) | (35) | | (15) |
| Interim period effective tax rate normalization(1) | 2 | 3 | | (2) | (7) | | - |
| Dividends declared on preference shares | (1) | (1) | | (3) | (4) | | (5) |
| Adjusted earnings (1)(2) | $383 | $359 | | $1,283 | $1,247 | | $1,701 |
| Adjusted EPS (1)(2) | $0.85 | $0.80 | | $2.85 | $2.76 | | |
| Total change | 6 % | | | 3 % | | | |
| Foreign currency | 1 % | | | 0 % | | | |
| Constant currency | 5 % | | | 3 % | | | |
| Diluted weighted-average common shares (millions) | 450.3 | 450.5 | | 450.8 | 451.4 | | |
| Reconciliation of Effective Tax Rate on Adjusted Earnings (1) | | | Year ended | ||||
| | | | | | | | 2024 |
| Adjusted earnings | | | | | | | $1,701 |
| Plus: Dividends declared on preference shares | | | | | | | 5 |
| Plus: Tax expense on adjusted earnings | | | | | | | 364 |
| Pre-tax adjusted earnings | | | | | | | $2,070 |
| | | | | | | | |
| IFRS Tax benefit | | | | | | | $(123) |
| Remove tax related to: | | | | | | | |
| Amortization of acquired computer software | | | | | | | 33 |
| Amortization of other identifiable intangible assets | | | | | | | 22 |
| Share of post-tax earnings in equity method investments | | | | | (7) | ||
| Other finance income | | | | | | | 19 |
| Other operating gains, net | | | | | | | (56) |
| Other items | | | | | | | (2) |
| Subtotal - Remove tax benefit on pre-tax items removed from adjusted earnings | | | | | 9 | ||
| Remove: Tax items impacting comparability | | | | | | | 478 |
| Total - Remove all items impacting comparability | | | | | | | 487 |
| Tax expense on adjusted earnings | | | | | | | $364 |
| Effective tax rate on adjusted earnings | | | | | | | 17.6 % |
| | |
| *Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue. | |
| | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| (2) | The adjusted earnings impact of non-controlling interests, which was applicable to the nine-month period ended September 30, 2024 and the year-ended December 31, 2024, was not material. |
| Thomson Reuters Corporation | ||||||||||||||
| Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency (1) and Organic Basis (1) | ||||||||||||||
| (millions of U.S. dollars) | ||||||||||||||
| (unaudited) | ||||||||||||||
| | Three months ended | Change | ||||||||||||
| | | 2025 | | 2024 | | Total | Foreign | | SUBTOTAL | Net | | Organic | ||
| Total Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $728 | | $745 | | -2 % | | 0 % | | -2 % | | -11 % | | 9 % |
| Corporates | | 478 | | 437 | | 10 % | | 1 % | | 9 % | | 0 % | | 9 % |
| Tax & Accounting Professionals | | 251 | | 221 | | 13 % | | -2 % | | 15 % | | 5 % | | 10 % |
| "Big 3" Segments Combined(1) | | 1,457 | | 1,403 | | 4 % | | 0 % | | 4 % | | -5 % | | 9 % |
| Reuters News | | 207 | | 199 | | 4 % | | 1 % | | 4 % | | 1 % | | 3 % |
| Global Print | | 124 | | 128 | | -4 % | | 0 % | | -4 % | | 0 % | | -4 % |
| Eliminations/Rounding | | (6) | | (6) | | | | | | | | | | |
| Total Revenues | | $1,782 | | $1,724 | | 3 % | | 0 % | | 3 % | | -4 % | | 7 % |
| | | | | | | | | | | | | | | |
| Recurring Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $709 | | $721 | | -2 % | | 0 % | | -2 % | | -11 % | | 9 % |
| Corporates | | 423 | | 390 | | 8 % | | 1 % | | 8 % | | -2 % | | 9 % |
| Tax & Accounting Professionals | | 183 | | 170 | | 7 % | | -2 % | | 9 % | | 0 % | | 9 % |
| "Big 3" Segments Combined(1) | | 1,315 | | 1,281 | | 3 % | | 0 % | | 3 % | | -7 % | | 9 % |
| Reuters News | | 178 | | 167 | | 7 % | | 0 % | | 7 % | | 1 % | | 6 % |
| Eliminations/Rounding | | (6) | | (6) | | | | | | | | | | |
| Total Recurring Revenues | | $1,487 | | $1,442 | | 3 % | | 0 % | | 3 % | | -6 % | | 9 % |
| | | | | | | | | | | | | | | |
| Transactions Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $19 | | $24 | | -21 % | | 1 % | | -22 % | | -25 % | | 3 % |
| Corporates | | 55 | | 47 | | 18 % | | 0 % | | 19 % | | 14 % | | 5 % |
| Tax & Accounting Professionals | | 68 | | 51 | | 35 % | | -1 % | | 36 % | | 24 % | | 12 % |
| "Big 3" Segments Combined(1) | | 142 | | 122 | | 18 % | | 0 % | | 18 % | | 10 % | | 8 % |
| Reuters News | | 29 | | 32 | | -11 % | | 1 % | | -13 % | | 1 % | | -14 % |
| Total Transactions Revenues | | $171 | | $154 | | 12 % | | 0 % | | 11 % | | 8 % | | 4 % |
| | |
| Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding. | |
| | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Thomson Reuters Corporation | ||||||||||||||
| Reconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency (1) and Organic Basis (1) | ||||||||||||||
| (millions of U.S. dollars) | ||||||||||||||
| (unaudited) | ||||||||||||||
| | Nine months ended | Change | ||||||||||||
| | | 2025 | | 2024 | | Total | Foreign | | SUBTOTAL | Net | | Organic | ||
| Total Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $2,130 | | $2,193 | | -3 % | | 0 % | | -3 % | | -11 % | | 8 % |
| Corporates | | 1,491 | | 1,386 | | 8 % | | 0 % | | 8 % | | -1 % | | 9 % |
| Tax & Accounting Professionals | | 888 | | 799 | | 11 % | | -2 % | | 13 % | | 3 % | | 11 % |
| "Big 3" Segments Combined(1) | | 4,509 | | 4,378 | | 3 % | | 0 % | | 3 % | | -6 % | | 9 % |
| Reuters News | | 621 | | 614 | | 1 % | | 1 % | | 1 % | | 0 % | | 0 % |
| Global Print | | 354 | | 375 | | -6 % | | 0 % | | -5 % | | 0 % | | -5 % |
| Eliminations/Rounding | | (17) | | (18) | | | | | | | | | | |
| Total Revenues | | $5,467 | | $5,349 | | 2 % | | 0 % | | 2 % | | -4 % | | 7 % |
| | | | | | | | | | | | | | | |
| Recurring Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $2,073 | | $2,121 | | -2 % | | 0 % | | -2 % | | -11 % | | 9 % |
| Corporates | | 1,236 | | 1,142 | | 8 % | | 0 % | | 8 % | | -2 % | | 10 % |
| Tax & Accounting Professionals | | 580 | | 548 | | 6 % | | -3 % | | 9 % | | 0 % | | 9 % |
| "Big 3" Segments Combined(1) | | 3,889 | | 3,811 | | 2 % | | 0 % | | 2 % | | -7 % | | 9 % |
| Reuters News | | 529 | | 495 | | 7 % | | 0 % | | 7 % | | 0 % | | 6 % |
| Eliminations/Rounding | | (17) | | (18) | | | | | | | | | | |
| Total Recurring Revenues | | $4,401 | | $4,288 | | 3 % | | 0 % | | 3 % | | -6 % | | 9 % |
| | | | | | | | | | | | | | | |
| Transactions Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $57 | | $72 | | -21 % | | 1 % | | -22 % | | -19 % | | -3 % |
| Corporates | | 255 | | 244 | | 5 % | | 0 % | | 5 % | | 0 % | | 5 % |
| Tax & Accounting Professionals | | 308 | | 251 | | 23 % | | -1 % | | 23 % | | 9 % | | 14 % |
| "Big 3" Segments Combined(1) | | 620 | | 567 | | 9 % | | 0 % | | 9 % | | 1 % | | 9 % |
| Reuters News | | 92 | | 119 | | -23 % | | 2 % | | -24 % | | 0 % | | -25 % |
| Total Transactions Revenues | | $712 | | $686 | | 4 % | | 0 % | | 4 % | | 1 % | | 3 % |
| | | Year ended | | Change | ||||||||||
| | | 2024 | | 2023 | | Total | Foreign | | SUBTOTAL | Net | | Organic | ||
| Total Revenues | | | | | | | | | | | | | | |
| Legal Professionals | | $2,922 | | $2,807 | | 4 % | | 0 % | | 4 % | | -3 % | | 7 % |
| Corporates | | 1,844 | | 1,620 | | 14 % | | 0 % | | 14 % | | 4 % | | 10 % |
| Tax & Accounting Professionals | | 1,165 | | 1,058 | | 10 % | | -1 % | | 11 % | | 1 % | | 10 % |
| "Big 3" Segments Combined(1) | | 5,931 | | 5,485 | | 8 % | | 0 % | | 8 % | | 0 % | | 9 % |
| Reuters News | | 832 | | 769 | | 8 % | | 0 % | | 8 % | | 2 % | | 6 % |
| Global Print | | 519 | | 562 | | -8 % | | 0 % | | -7 % | | 0 % | | -7 % |
| Eliminations/Rounding | | (24) | | (22) | | | | | | | | | | |
| Total Revenues | | $7,258 | | $6,794 | | 7 % | | 0 % | | 7 % | | 0 % | | 7 % |
| | |
| Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth components may not total due to rounding. | |
| | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Thomson Reuters Corporation | ||||||||||
| Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin (1) to Changes on a Constant Currency Basis (1) | ||||||||||
| (millions of U.S. dollars) | ||||||||||
| (unaudited) | ||||||||||
| | Three months ended | Change | ||||||||
| | | 2025 | | 2024 | | Total | Foreign | | Constant | |
| Adjusted EBITDA (1) | | | | | | | | | | |
| Legal Professionals | | $354 | | $334 | | 6 % | | 1 % | | 5 % |
| Corporates | | 174 | | 162 | | 8 % | | 1 % | | 7 % |
| Tax & Accounting Professionals | | 78 | | 59 | | 32 % | | 0 % | | 33 % |
| "Big 3" Segments Combined(1) | | 606 | | 555 | | 9 % | | 1 % | | 8 % |
| Reuters News | | 42 | | 40 | | 1 % | | 0 % | | 2 % |
| Global Print | | 46 | | 43 | | 8 % | | 2 % | | 6 % |
| Corporate costs | | (22) | | (29) | | n/a | | n/a | | n/a |
| Total Adjusted EBITDA | | $672 | | $609 | | 10 % | | 1 % | | 9 % |
| | | | | | | | | | | |
| Adjusted EBITDA Margin (1) | | | | | | | | | | |
| Legal Professionals | | 48.7 % | | 44.9 % | | 380bp | | 50bp | | 330bp |
| Corporates | | 36.5 % | | 36.8 % | | -30bp | | 20bp | | -50bp |
| Tax & Accounting Professionals | | 31.2 % | | 26.8 % | | 440bp | | 30bp | | 410bp |
| "Big 3" Segments Combined(1) | | 41.7 % | | 39.5 % | | 220bp | | 40bp | | 180bp |
| Reuters News | | 19.9 % | | 20.4 % | | -50bp | | -20bp | | -30bp |
| Global Print | | 37.1 % | | 33.1 % | | 400bp | | 70bp | | 330bp |
| Total Adjusted EBITDA Margin | | 37.7 % | | 35.3 % | | 240bp | | 20bp | | 220bp |
| Thomson Reuters Corporation | ||||||||||
| Reconciliation of Changes in Adjusted EBITDA (1) and Related Margin (1) to Changes on a Constant Currency Basis (1) | ||||||||||
| (millions of U.S. dollars) | ||||||||||
| (unaudited) | ||||||||||
| | Nine months ended | Change | ||||||||
| | | 2025 | | 2024 | | Total | Foreign | | Constant | |
| Adjusted EBITDA (1) | | | | | | | | | | |
| Legal Professionals | | $1,029 | | $1,003 | | 3 % | | 1 % | | 2 % |
| Corporates | | 556 | | 518 | | 7 % | | 1 % | | 7 % |
| Tax & Accounting Professionals | | 401 | | 331 | | 21 % | | -1 % | | 22 % |
| "Big 3" Segments Combined(1) | | 1,986 | | 1,852 | | 7 % | | 1 % | | 7 % |
| Reuters News | | 126 | | 151 | | -17 % | | 1 % | | -17 % |
| Global Print | | 131 | | 133 | | -2 % | | 1 % | | -2 % |
| Corporate costs | | (84) | | (75) | | n/a | | n/a | | n/a |
| Total Adjusted EBITDA | | $2,159 | | $2,061 | | 5 % | | 0 % | | 4 % |
| | | | | | | | | | | |
| Adjusted EBITDA Margin (1) | | | | | | | | | | |
| Legal Professionals | | 48.3 % | | 45.7 % | | 260bp | | 50bp | | 210bp |
| Corporates | | 37.3 % | | 37.2 % | | 10bp | | 20bp | | -10bp |
| Tax & Accounting Professionals | | 44.2 % | | 41.5 % | | 270bp | | 40bp | | 230bp |
| "Big 3" Segments Combined(1) | | 43.9 % | | 42.3 % | | 160bp | | 40bp | | 120bp |
| Reuters News | | 20.2 % | | 24.6 % | | -440bp | | 0bp | | -440bp |
| Global Print | | 37.0 % | | 35.5 % | | 150bp | | 40bp | | 110bp |
| Total Adjusted EBITDA Margin | | 39.3 % | | 38.5 % | | 80bp | | 10bp | | 70bp |
| | |
| n/a: not applicable | |
| Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth components may not total due to rounding. | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
Reconciliation of adjusted EBITDA margin(1)
To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue from its IFRS revenues. The charts below reconcile IFRS revenues to revenues used in the calculation of adjusted EBITDA margin, which excludes fair value adjustments related to acquired deferred revenue.
| | Three months ended September 30, 2025 | ||||||||
| (millions of U.S. dollars) | IFRS | | Remove fair | | Revenues | | Adjusted | | Adjusted |
| Legal Professionals | $728 | | - | | $728 | | $354 | | 48.7 % |
| Corporates | 478 | | - | | 478 | | 174 | | 36.5 % |
| Tax & Accounting Professionals | 251 | | - | | 251 | | 78 | | 31.2 % |
| "Big 3" Segments Combined(1) | 1,457 | | - | | 1,457 | | 606 | | 41.7 % |
| Reuters News | 207 | | - | | 207 | | 42 | | 19.9 % |
| Global Print | 124 | | - | | 124 | | 46 | | 37.1 % |
| Eliminations/Rounding | (6) | | - | | (6) | | - | | n/a |
| Corporate costs | - | | - | | - | | (22) | | n/a |
| Consolidated totals | $1,782 | | - | | $1,782 | | $672 | | 37.7 % |
| | Nine months ended September 30, 2025 | ||||||||
| (millions of U.S. dollars) | IFRS | | Remove fair | | Revenues | | Adjusted | | Adjusted |
| Legal Professionals | $2,130 | | - | | $2,130 | | $1,029 | | 48.3 % |
| Corporates | 1,491 | | - | | 1,491 | | 556 | | 37.3 % |
| Tax & Accounting Professionals | 888 | | $20 | | 908 | | 401 | | 44.2 % |
| "Big 3" Segments Combined(1) | 4,509 | | 20 | | 4,529 | | 1,986 | | 43.9 % |
| Reuters News | 621 | | - | | 621 | | 126 | | 20.2 % |
| Global Print | 354 | | - | | 354 | | 131 | | 37.0 % |
| Eliminations/Rounding | (17) | | - | | (17) | | - | | n/a |
| Corporate costs | - | | - | | - | | (84) | | n/a |
| Consolidated totals | $5,467 | | $20 | | $5,487 | | $2,159 | | 39.3 % |
| | Three months ended September 30, 2024 | ||||||||
| (millions of U.S. dollars) | IFRS | | Remove fair | | Revenues | | Adjusted | | Adjusted |
| Legal Professionals | $745 | | - | | $745 | | $334 | | 44.9 % |
| Corporates | 437 | | $2 | | 439 | | 162 | | 36.8 % |
| Tax & Accounting Professionals | 221 | | - | | 221 | | 59 | | 26.8 % |
| "Big 3" Segments Combined(1) | 1,403 | | 2 | | 1,405 | | 555 | | 39.5 % |
| Reuters News | 199 | | - | | 199 | | 40 | | 20.4 % |
| Global Print | 128 | | - | | 128 | | 43 | | 33.1 % |
| Eliminations/Rounding | (6) | | - | | (6) | | - | | n/a |
| Corporate costs | - | | - | | - | | (29) | | n/a |
| Consolidated totals | $1,724 | | $2 | | $1,726 | | $609 | | 35.3 % |
| | |
| n/a: not applicable | |
| Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding. | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Reconciliation of adjusted EBITDA margin (1) | |||||||||
| | Nine months ended September 30, 2024 | ||||||||
| (millions of U.S. dollars) | IFRS | | Remove fair | | Revenues | | Adjusted | | Adjusted |
| Legal Professionals | $2,193 | | $1 | | $2,194 | | $1,003 | | 45.7 % |
| Corporates | 1,386 | | 6 | | 1,392 | | 518 | | 37.2 % |
| Tax & Accounting Professionals | 799 | | - | | 799 | | 331 | | 41.5 % |
| "Big 3" Segments Combined(1) | 4,378 | | 7 | | 4,385 | | 1,852 | | 42.3 % |
| Reuters News | 614 | | 1 | | 615 | | 151 | | 24.6 % |
| Global Print | 375 | | - | | 375 | | 133 | | 35.5 % |
| Eliminations/Rounding | (18) | | - | | (18) | | - | | n/a |
| Corporate costs | - | | - | | - | | (75) | | n/a |
| Consolidated totals | $5,349 | | $8 | | $5,357 | | $2,061 | | 38.5 % |
| Thomson Reuters Corporation | |||||||||||
| "Big 3" Segments and Consolidated Adjusted EBITDA (1) and the Related Margins (1) | |||||||||||
| (millions of U.S. dollars) | |||||||||||
| (unaudited) | |||||||||||
| | | | | | | | | | | Year ended | |
| | | | | | | | | | | 2024 | |
| Adjusted EBITDA (1) | | | | | | | | | | | |
| Legal Professionals | | | | | | | | | | $1,302 | |
| Corporates | | | | | | | | | | 671 | |
| Tax & Accounting Professionals | | | | | | | | | | 527 | |
| "Big 3" Segments Combined(1) | | | | | | | | | | 2,500 | |
| Reuters News | | | | | | | | | | 196 | |
| Global Print | | | | | | | | | | 188 | |
| Corporate costs | | | | | | | | | | (105) | |
| Total Adjusted EBITDA | | | | | | | | | | $2,779 | |
| | | | | | | | | | | | |
| "Big 3" Segments Combined (1) | | | | | | | | | | | |
| Adjusted EBITDA | | | | | | | | | | $2,500 | |
| Revenues, excluding $7 million of fair value adjustments to acquired deferred revenue | | | | $5,938 | |||||||
| Adjusted EBITDA margin | | | | | | | | | | 42.1 % | |
| | | | | | | | | | | | |
| Consolidated (1) | | | | | | | | | | | |
| Adjusted EBITDA | | | | | | | | | | $2,779 | |
| Revenues, excluding $9 million of fair value adjustments to acquired deferred revenue | | | | $7,267 | |||||||
| Adjusted EBITDA margin | | | | | | | | | | 38.2 % | |
| | |
| n/a: not applicable | |
| Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding. | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Thomson Reuters Corporation | |||||||
| Reconciliation of Net Debt (1) and Leverage Ratio of Net Debt to Adjusted EBITDA (1) | |||||||
| (millions of U.S. dollars) | |||||||
| (unaudited) | |||||||
| | | | | September 30, | | December 31, | |
| | | | | | 2025 | | 2024 |
| Current indebtedness | | | | | $838 | | $973 |
| Long-term indebtedness | | | | | 1,338 | | 1,847 |
| Total debt | | | | | 2,176 | | 2,820 |
| Swaps | | | | | 8 | | 21 |
| Total debt after swaps | | | | | 2,184 | | 2,841 |
| Remove fair value adjustments for hedges | | | | | (2) | | 5 |
| Total debt after hedging arrangements | | | | | 2,182 | | 2,846 |
| Remove transaction costs, premiums or discounts, included in the carrying value of debt | 27 | | 22 | ||||
| Add: Lease liabilities (current and non-current) | | | | | 240 | | 256 |
| Less: Cash and cash equivalents | | | | | (618) | | (1,968) |
| Net debt | | | | | $1,831 | | $1,156 |
| Leverage ratio of net debt to adjusted EBITDA | | | | | | | |
| Adjusted EBITDA | | | | | $2,877 | | $2,779 |
| Net debt/adjusted EBITDA | | | | | 0.6:1 | | 0.4:1 |
| | |
| (1) | Refer to page 23 for additional information on non-IFRS financial measures. |
| Non-IFRS Financial Measures | Definition | Why Useful to the Company and Investors |
| Adjusted EBITDA and the related margin | Represents earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of computer software and other identifiable intangible assets, Thomson Reuters share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges and fair value adjustments, including those related to acquired deferred revenue. The related margin is adjusted EBITDA expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. | Provides a consistent basis to evaluate operating profitability and performance trends by excluding items that the company does not consider to be controllable activities for this purpose. Also, represents a measure commonly reported and widely used by investors as a valuation metric, as well as to assess the company's ability to incur and service debt. |
| Adjusted earnings and adjusted EPS | Net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, including those related to acquired deferred revenue, amortization of acquired intangible assets (attributable to other identifiable intangible assets and acquired computer software), other operating gains and losses, certain asset impairment charges, other finance costs or income, Thomson Reuters share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Acquired intangible assets contribute to the generation of revenues from acquired companies, which are included in the company's computation of adjusted earnings. The post-tax amount of each item is excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item. Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. | Provides a more comparable basis to analyze earnings. These measures are commonly used by shareholders to measure performance. |
| Effective tax rate on adjusted earnings | Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense is computed as income tax (benefit) expense plus or minus the income tax impacts of all items impacting adjusted earnings (as described above), and other tax items impacting comparability. In interim periods, the company also makes an adjustment to reflect income taxes based on the estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods but has no effect on full-year income taxes. | Provides a basis to analyze the effective tax rate associated with adjusted earnings. The company's effective tax rate computed in accordance with IFRS may be more volatile by quarter because the geographical mix of pre-tax profits and losses in interim periods may be different from that for the full year. Therefore, the company believes that using the expected full-year effective tax rate provides more comparability among interim periods. |
| Free cash flow | Net cash provided by operating activities and other investing activities, less capital expenditures, payments of lease principal and dividends paid on the company's preference shares. | Helps assess the company's ability, over the long term, to create value for its shareholders as it represents cash available to repay debt, pay common dividends, fund share repurchases and acquisitions. |
| Changes before the impact of foreign currency or at "constant currency" | The changes in revenues, adjusted EBITDA and the related margin, and adjusted EPS before currency (at constant currency or excluding the effects of currency) are determined by converting the current and equivalent prior period's local currency results using the same foreign currency exchange rate. | Provides better comparability of business trends from period to period. |
| Changes in revenues computed on an "organic" basis | Represent changes in revenues of the company's existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods. | Provides further insight into the performance of the company's existing businesses by excluding distortive impacts and serves as a better measure of the company's ability to grow its business over the long term. |
| Accrued capital expenditures as a percentage of revenues | Accrued capital expenditures divided by revenues, where accrued capital expenditures include amounts that remain unpaid at the end of the reporting period. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. | Reflects the basis on which the company manages capital expenditures for internal budgeting purposes. |
| "Big 3" segments | The company's combined Legal Professionals, Corporates and Tax & Accounting Professionals segments. All measures reported for the "Big 3" segments are non-IFRS financial measures. | The "Big 3" segments comprised approximately 80% of revenues and represent the core of the company's business information service product offerings. |
| Net debt and leverage ratio of net debt to adjusted EBITDA | Net debt is total debt, plus related hedging instruments and collateral balances, along with lease liabilities, excluding unamortized transaction costs and any premiums or discounts on debt, minus cash and cash equivalents. We exclude specific hedging components to reflect the net cash outflow upon debt maturity. Net debt to adjusted EBITDA is net debt divided by adjusted EBITDA for the previous twelve-month period ending with the current fiscal quarter. | Provides a commonly used measure of a company's leverage and its ability to pay its debt. Given that the company hedges some of its debt to manage risk, the company includes hedging instruments as it believes it provides a better measure of the total obligation associated with its outstanding debt. Since the company plans to hold its debt and related hedges until maturity, the net debt calculation is adjusted to reflect the net cash outflow at maturity, after deducting cash and cash equivalents. The company's non-IFRS measure is aligned with the calculation of its internal maximum leverage ratio and is more conservative than the maximum ratio allowed under the contractual covenants in its credit facility. |
| Please refer to reconciliations for the most directly comparable IFRS financial measures. |
SOURCE Thomson Reuters
