Thomson Reuters Corp (NASDAQ:TRI) reported third-quarter 2025 revenue of $1.78 billion, up 3% from a year earlier and above the $1.78 billion estimate. Organic revenue rose 7%, led by 9% growth across its "Big 3" segments: Legal Professionals; Corporates; and Tax and Accounting Professionals.
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GAAP diluted earnings per share climbed 40% to 94 cents from 67 cents, while adjusted EPS rose 6% to 85 cents, topping the 83 cents estimate. Operating profit increased 43% to $593 million, boosted by a gain on the sale of its remaining minority stake in Elite.
Revenue growth reflected a 3% increase in recurring revenue, which accounted for 83% of total revenue, and a 12% rise in transaction revenue, offset by a 4% decline in Global Print.
Adjusted EBITDA rose 10% to $672 million, with the margin improving to 37.7% from 35.3%.
Net cash from operations fell 7% to $704 million, and free cash flow declined 11% to $526 million on higher capital spending.
In the Legal Professionals unit, revenue fell 2% to $728 million due to the sale of FindLaw, though organic growth reached 9% on strength in Westlaw, CoCounsel, and Practical Law. Adjusted EBITDA rose 6% to $354 million, with the margin improving to 48.7%.
Corporates revenue grew 9% to $478 million, driven by Indirect Tax, Pagero, and Global Trade, with an adjusted EBITDA margin of 36.5%.
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Tax & Accounting Professionals’ revenue climbed 15% to $251 million, aided by the SafeSend acquisition and 10% organic growth. Adjusted EBITDA jumped 32% to $78 million, with the margin rising to 31.2%.
Reuters News revenue increased 4% to $207 million, primarily from higher agency revenue and a price increase under its London Stock Exchange Group contract. Adjusted EBITDA was $42 million with a 19.9% margin.
Global Print revenue fell 4% to $124 million, while adjusted EBITDA rose 8% to $46 million as expenses declined. Corporate costs decreased to $22 million from $29 million.
For the first nine months of 2025, total revenue rose 2% to $5.47 billion and adjusted EBITDA grew 5% to $2.16 billion, with a 39.3% margin. Adjusted EPS increased to $2.85 from $2.7.
During the quarter, the company acquired Additive AI, Inc., a U.S. firm specializing in AI-powered tax document processing, and completed a $1 billion share buyback. It also sold its remaining Elite stake for $231 million and reaffirmed a quarterly dividend of $0.595 per share, payable on Dec. 10.
"Our third-quarter results reflect continued momentum and the ongoing execution of our AI-driven innovation strategy," said Steve Hasker, president and CEO. "With a robust capital position and a clear focus on our long-term investment strategy, we are well-positioned to build on this momentum and continue delivering sustained growth and shareholder value."
Outlook
Thomson Reuters reaffirmed its 2025 sales guidance of $7.475 billion to $7.512 billion, compared with an estimated $7.489 billion. The company expects total revenue growth of 3% to 3.5%, organic growth of 7% to 7.5%, an adjusted EBITDA margin of approximately 39%, and free cash flow of $1.9 billion.
For 2026, it raised its projected margin expansion to roughly 100 basis points and expects free cash flow of around $2.1 billion.
TRI Price Action: Thomason Reuters shares are trading 5.69% lower at $146.87 at publication on Tuesday.
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