Thomson Reuters CEO Says AI Is Delivering Tangible Gains
Thomson Reuters Corp. (NASDAQ:TRI) on Thursday reported its fourth-quarter fiscal 2025 results.
The company reported revenue of $2.009 billion, up 5% from a year earlier and above the $2.001 billion estimate.
Organic revenue rose 7%, led by 9% growth across its “Big 3” segments, including Legal Professionals, Corporates, and Tax and Accounting Professionals.
GAAP diluted earnings per share declined 43% to 74 cents from $1.30, while adjusted EPS rose 6% to $1.07, topping the $1.06 estimate.
Operating profit decreased 25% to $540 million, primarily due to other operating gains in the prior-year period substantially related to the sale of FindLaw.
Don't Miss:
-
The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.85/Share
-
Deloitte's #1 Fastest-Growing Software Company Lets Users Earn Money Just by Scrolling — Accredited Investors Can Still Get In at $0.50/Share.
Revenue growth reflected a 6% increase in recurring revenue, which accounted for 84% of total revenue, and a 11% rise in transaction revenue, offset by a 6% decline in Global Print.
Adjusted EBITDA rose 8% to $777 million, with the margin improving to 38.7% from 37.6%.
Net cash from operations rose 35% to $756 million, and free cash flow increased 38% to $581 million.
Segment Performance
In the Legal Professionals unit, revenue grew 1% to $738 million despite the disposal of FindLaw in the prior-year period, which negatively impacted recurring and transactions revenue growth. Organic growth reached 9% on strength in Westlaw, CoCounsel, and Practical Law. Adjusted EBITDA rose 9% to $327 million, with the margin improving to 44.3%.
Corporates revenue grew 7% to $496 million, despite a negative impact from the sale of certain non-core businesses, with an adjusted EBITDA margin of 32.2%. Organic revenues increased 9%.
Tax & Accounting Professionals’ revenue climbed 13% to $414 million, aided by the SafeSend acquisition. Organic revenue growth was 11%. Adjusted EBITDA jumped 14% to $222 million, with the margin rising to 53.6%.
Reuters News revenue increased 6% (5% organic) to $232 million, primarily due to higher generative AI-related transactional content licensing revenue in the Agency business, as well as a contractual price increase from the company’s news agreement with the Data & Analytics business of London Stock Exchange Group (LSEG).
Content Original Link:
" target="_blank">
