Thomson Reuters (TRI) Q4 2025 earnings summary

Executive summary

• Achieved 7% full-year organic revenue growth and 9% growth in the Big 3 segments, with strong Q4 momentum and AI-enabled product launches such as Westlaw Advantage and CoCounsel driving commercial success.

• Adjusted EBITDA margin expanded by 100 basis points to 39.2% for the year, meeting guidance, and free cash flow reached $1.95 billion, slightly ahead of expectations.

• Completed $850 million in strategic M&A, a $1 billion share repurchase program, and announced a 10% dividend increase, marking the 33rd consecutive annual increase.

• Over 85% of employees engaged with AI tools, with 300+ use cases in development, and measurable productivity gains in engineering, content operations, and customer service.

• Segment name changes included Tax & Accounting Professionals to Tax, Audit & Accounting Professionals, and Reuters News to Reuters.

Financial highlights

• Q4 organic revenue grew 7% year-over-year to $2,009 million; full-year revenues rose 3% to $7,476 million.

• Q4 adjusted EBITDA increased 8% to $777 million, with margin up 110 basis points to 38.7%; full-year adjusted EBITDA was $2,936 million, margin 39.2%.

• Q4 adjusted EPS was $1.07 (up 6%); full-year adjusted EPS was $3.92 (up 4%).

• Q4 free cash flow was $581 million (up 38%); full-year free cash flow was $1.95 billion (up 7%).

• Print revenues declined 6% in Q4 and 5% for the full year, in line with expectations.

Outlook and guidance

• Reaffirmed 2026 organic revenue growth guidance of 7.5%-8%, with Big 3 segments targeted at approximately 9.5%.

• 2026 adjusted EBITDA margin expected to rise by 100 basis points from 39.2% in 2025, with free cash flow projected at $2.1 billion.

• Accrued capex as a percentage of revenues to be ~8%; effective tax rate on adjusted earnings expected at ~19%.

• Expects 100 basis points of annual EBITDA margin expansion through 2028, driven by operating leverage and AI productivity gains.

• Q1 2026 organic revenue growth expected at approximately 7%, with adjusted EBITDA margin around 42%.