Thomson Reuters (TRI) Q1 2025 earnings summary

Executive summary

• Q1 2025 began with 6% organic revenue growth, strong recurring revenue, and "Big 3" segments up 9%, exceeding expectations and reaffirming the full-year outlook.

• Product innovation advanced with launches like CoCounsel Tax, Audit & Accounting, and enhancements to Westlaw and Practical Law, with continued investment in GenAI.

• Capital position remains strong, supporting M&A and increased shareholder returns, including a 10% dividend raise and the $600M SafeSend acquisition.

• Leadership maintained in stable, attractive markets with over 80% recurring revenue and strong cash flow.

• Net income was $434M, diluted EPS $0.96 (down 9% YoY), adjusted EPS $1.12 (up 1% YoY).

Financial highlights

• Q1 2025 revenues rose 1% year-over-year to $1.9B; organic revenue up 6%.

• Adjusted EBITDA was $809M, margin at 42.3% (down 40 bps YoY); operating profit $563M (+1% YoY).

• Adjusted EPS increased 1% to $1.12; diluted EPS declined 9% to $0.96.

• Free cash flow grew 3% to $277M; net cash from operations up 4% to $445M.

• Net leverage at 0.6x; net debt $1,746M.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: organic revenue growth of 7–7.5%, "Big 3" segments at ~9%, adjusted EBITDA margin ~39–43%, and free cash flow ~$1.9B.

• Q2 2025 organic revenue growth expected at ~7%, with margin seasonally lower at ~36%.

• Guidance incorporates SafeSend acquisition and FindLaw divestiture; excludes future M&A.

• Corporate costs, capex, and tax rate guidance unchanged; effective tax rate on adjusted earnings guided at ~19%.

• Free cash flow for 2025 expected at ~$1.9B.