Thomson Reuters Q2 2025: Unpacking Contradictions in AI Investment, Pricing Strategy, and Market Adoption

AI investment and strategic focus, Westlaw Advantage pricing strategy, GenAI product adoption and market penetration, M&A strategy and capital allocation, and adoption of GenAI and AI investment ROI are the key contradictions discussed in Thomson Reuters' latest 2025Q2 earnings call.



Revenue Growth and Organic Performance:
- Thomson Reuters reported a 7% growth in total company organic revenues for Q2, with the Big 3 segments growing by 9%.
- Growth was driven by double-digit organic growth in key products like CoCounsel, CoCounsel Drafting, and SurePrep, as well as strong performance in international businesses.

Profit Margin and Expense Timing:
- Adjusted EBITDA increased 5% to $678 million, with a margin increase to 37.8%.
- The improvement was due to healthy operating leverage, favorable expense timing, and revenue mix contributing to higher margins.

Agentic AI and Product Innovations:
- The company introduced agentic AI capabilities across Legal and Tax & Accounting portfolios, enhancing the functionality and value of offerings like CoCounsel and Deep Research.
- These innovations aim to automate complex multistep tasks, increasing efficiency and effectiveness for customers.

Free Cash Flow and Financial Guidance:
- Free cash flow for the first half of 2025 was $843 million, up 4% from the previous year.
- The company reaffirmed its full-year 2025 outlook for organic revenue, adjusted EBITDA, and free cash flow, with confidence in achieving these targets despite some macroeconomic challenges.