Thomson Reuters (TRI) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 1% total and 6% organic revenue growth, with "Big 3" segments up 9% organically, reaffirming the full-year 2025 outlook for all metrics.

• Product innovation advanced with launches such as CoCounsel Tax, Audit & Accounting, and enhancements to Westlaw and Practical Law, alongside successful integration of recent acquisitions.

• Dividend increased 10% to $2.38 per share, marking the 32nd consecutive annual increase.

• Completed the $600M SafeSend acquisition in January 2025 to expand tax automation capabilities.

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

Financial highlights

• Q1 2025 revenues were $1.9B, up 1% year-over-year; organic revenues up 6%.

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

• Adjusted EPS was $1.12 (up from $1.11 YoY); diluted EPS $0.96 (down from $1.06 YoY) due to higher tax expense and prior-year currency benefits.

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

• Recurring revenues (76%+ of total) grew 2%, transactional revenues up 1%, print revenues down 5-6%.

Outlook and guidance

• Full-year 2025 outlook reaffirmed: organic revenue growth of 7–7.5%, "Big 3" segments at ~9%, and adjusted EBITDA margin guided to ~39–43%.

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

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

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

• Corporate costs, capex, and tax rate guidance unchanged; effective tax rate on adjusted earnings guided at ~17.6–19%.