Thomson Reuters (TRI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues grew 1% to $1.9B, with organic revenue up 6% and "Big 3" segments up 9% organically, exceeding expectations and reaffirming the full-year 2025 outlook.

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

• Dividend increased 10% to $2.38 per share, marking the 32nd consecutive annual increase; SafeSend acquisition completed for ~$600M in January 2025.

• Leadership maintained in stable, attractive markets with over 80% recurring revenue, strong cash flow, and robust capital capacity supporting M&A and shareholder returns.

Financial highlights

• Q1 organic revenues up 6% year-over-year; total revenues $1.9B (+1% YoY); recurring revenues up 9%, transaction revenues up 1%, print revenues down 5%.

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

• Adjusted EPS was $1.12 (up 1% YoY); diluted EPS $0.96 (down 9% YoY); free cash flow $277M (up 3% YoY).

• Net cash from operating activities $445M (+4% YoY).

Outlook and guidance

• Full-year 2025 outlook 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, but excludes future M&A.