Thomson Reuters (TRI) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered 3% total and 7% organic revenue growth, with the Legal, Corporates, and Tax & Accounting segments driving 9% organic growth and representing the majority of revenues.

• Operating profit surged 43% to $593 million, aided by a gain from the sale of the Elite business.

• Margins exceeded expectations due to strong cost discipline and favorable revenue mix, with adjusted EBITDA up 10% to $672 million and margin expanding to 37.7%.

• AI-driven innovation and product launches, especially in legal and tax, are fueling momentum and segment acceleration.

• Completed a $1.0 billion share repurchase program and announced a 10% dividend increase.

Financial highlights

• Q3 2025 revenues were $1.78 billion, up 3% year-over-year; organic revenue up 7%.

• Adjusted EBITDA increased 10% to $672 million, with margin up 240 bps to 37.7%.

• Adjusted EPS was $0.85, up 6% year-over-year; diluted EPS rose 40% to $0.94.

• Free cash flow for Q3 was $526 million, down 11% due to higher capital expenditures and working capital changes.

• Net cash from operating activities decreased 7% to $704 million.

Outlook and guidance

• 2025 full-year outlook reaffirmed: total revenue growth at the lower end of 3.0–3.5%, organic revenue growth at the lower end of 7.0–7.5%.

• "Big 3" segments expected to deliver ~9% organic revenue growth for 2025.

• 2026 framework updated: adjusted EBITDA margin expansion of ~100 bps and free cash flow target raised to ~$2.1 billion.

• Q4 2025 organic revenue growth projected at ~7%, with adjusted EBITDA margin near 39%.

• Guidance assumes constant currency and excludes future acquisitions/dispositions.