Thomson Reuters (TRI) Q4 2025 earnings summary

Executive summary

• Achieved 7% organic revenue growth and 3% full-year revenue growth, with "Big 3" segments delivering 9% organic growth for both Q4 and the full year, comprising 82% of total revenues.

• Adjusted EBITDA margin expanded to 39.2% for the year and 38.7% in Q4, meeting guidance and driven by higher operating leverage.

• Free cash flow reached $1.95 billion for the year, up 7%, supporting a 10% dividend increase and $1 billion share repurchase program.

• Significant progress in AI-enabled product launches, including Westlaw Advantage and CoCounsel, with over 85% employee adoption and 300+ use cases in development.

• Strategic acquisitions totaling $850 million completed, further strengthening the portfolio.

Financial highlights

• Q4 revenues rose 5% to $2,009M; full-year revenues up 3% to $7,476M; Q4 organic revenue up 7%.

• Q4 adjusted EBITDA increased 8% to $777M; full-year adjusted EBITDA up 6% to $2,936M; margin at 39.2%.

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

• Q4 free cash flow up 38% to $581M; full-year free cash flow up 7% to $1,950M.

• Q4 operating profit fell 25% to $540M; full-year operating profit up 1% to $2,132M.

Outlook and guidance

• 2026 organic revenue growth expected at 7.5%-8.0%, with "Big 3" segments targeted for ~9.5% and margin expansion of ~100bps.

• 2026 free cash flow projected at ~$2.1B; accrued capex as % of revenues to be ~8%.

• Effective tax rate on adjusted earnings expected at ~19%.

• Q1 2026 organic revenue growth projected at ~7% with adjusted EBITDA margin of ~42%.

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