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Thomson Reuters (NASDAQ:TRI) reported solid second-quarter 2025 results on August 6, with organic revenue growth of 7% and continued momentum in its core business segments. The company reaffirmed its full-year outlook while highlighting significant advancements in its artificial intelligence capabilities.
Quarterly Performance Highlights
Thomson Reuters delivered Q2 organic revenue growth of 7%, driven by 9% recurring revenue growth. The company’s "Big 3" segments—Legal Professionals, Corporates, and Tax & Accounting Professionals—collectively achieved 9% organic growth, demonstrating strong performance in its core business areas.
"Good momentum continues with Q2 results meeting or exceeding expectations," the company noted in its presentation, pointing to "modest Q2 adjusted EBITDA margin upside versus expectations."
As shown in the following consolidated results table, Thomson Reuters reported adjusted EBITDA of $678 million, up 5% from the prior year, with margins expanding 70 basis points to 37.8%:
Adjusted earnings per share reached $0.87, a 2% increase from $0.85 in Q2 2024, while free cash flow grew 4% to $566 million. The company’s IFRS diluted EPS declined 63% to $0.69, though this was not highlighted as a concern in the presentation.
The company’s shares were indicated up 0.59% in premarket trading at $201, following a 1.96% decline in the previous session.
Segment Performance
Thomson Reuters’ segment performance showed varying results, with particularly strong organic growth in its core business segments despite some currency and divestiture impacts affecting reported figures.
The following breakdown illustrates the revenue growth by segment for Q2 2025:
The Legal Professionals segment, which represents the largest portion of revenue at $709 million, showed 8% organic growth despite a 2% decline in reported revenue. The Corporates segment delivered 9% organic growth with reported revenue increasing 7% to $472 million. The Tax & Accounting Professionals segment was the standout performer with 11% organic growth and reported revenue up 11% to $277 million.
Reuters News achieved 5% organic growth with reported revenue up 7% to $218 million, while Global Print continued its expected decline with a 7% decrease in both organic and reported revenue to $114 million.
A more detailed view of the "Big 3" segments’ performance shows consistent organic growth across these core businesses:
On the profitability side, adjusted EBITDA margins improved in the Legal Professionals segment (up to 47.8% from 45.0%) and Tax & Accounting Professionals segment (up to 39.3% from 36.8%), while the Corporates segment saw a slight decline (to 35.7% from 36.8%).
Strategic Initiatives: AI Innovation
A significant portion of Thomson Reuters’ presentation focused on its artificial intelligence initiatives, particularly the launch of several "Agentic AI" solutions across its business segments.
The company emphasized that "Agentic AI will transform the way professionals work by enabling them to delegate complex, multi-step workflows," highlighting its competitive advantages in this space:
For the Tax & Accounting segment, Thomson Reuters introduced several AI-powered solutions, including CoCounsel for Tax, Audit, and Accounting; Ready to Review; and Ready to Advise. These tools aim to automate workflows, accelerate research, and provide comprehensive document analysis for tax professionals.
In the Legal segment, the company launched CoCounsel Legal, which includes Westlaw Deep Research and CoCounsel Guided Workflows. These solutions leverage Thomson Reuters’ extensive legal content and domain expertise to deliver AI-powered legal research and workflow automation.
The company’s innovation timeline shows a steady progression of AI-related product launches throughout 2025:
Financial Position & Outlook
Thomson Reuters maintained a strong financial position with net leverage of 0.5x as of June 30, 2025, and estimated approximately $10 billion of capital capacity by 2027 to support additional M&A and shareholder returns.
Free cash flow details show solid performance in Q2 2025:
Based on its Q2 performance, Thomson Reuters reaffirmed its full-year 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow, while making minor adjustments to its interest expense and depreciation & amortization forecasts:
The company continues to expect 7.0-7.5% organic revenue growth for the full year, with an adjusted EBITDA margin of 39% and free cash flow of $1.9 billion. For its "Big 3" segments, Thomson Reuters maintained its organic growth outlook of 9% with an adjusted EBITDA margin of 43%.
This outlook aligns with the company’s Q1 2025 performance, which saw 6% organic revenue growth and a 9% increase in the "Big 3" segments, as reported in the previous earnings call.
The consistent performance and reaffirmed guidance suggest Thomson Reuters is successfully executing its strategy focused on core business growth and AI-driven innovation, positioning the company for continued success in the professional information services market.
Full presentation:
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