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- **Revenue Growth**: 7% organic growth in 2025, with Big Three segments up 9%. 2026 outlook of 7.5%-8% growth, driven by AI-enabled products.
- **AI Leadership**: Westlaw Advantage and CoCounsel Legal lead in legal AI workflows. Internal AI adoption improves efficiency by 15% in customer service and 5% in content delivery.
- **Financial Strength**: $1.95 billion free cash flow in 2025. 2026 EBITDA margin expansion of 100 basis points annually, with $11 billion capital capacity through 2028.
- **Strategic Moves**: $850 million in M&A, 10% dividend increase, and $500 million share buyback planned for 2026.

**【CEO Summary Section】**
- **Revenue Growth and Strategy**: Full-year 2025 organic revenue grew 7%, driven by 9% growth in the Big Three segments. CEO Steve Hasker emphasized AI-driven innovation, with Westlaw Advantage and CoCounsel Legal as key products. AI adoption internally has led to 300+ use cases across the company, improving efficiency in software development, customer support, and content operations.
- **Product Momentum**: Launches of Westlaw Advantage, CoCounsel Legal, and CoCounsel for Tax and Audit have been successful, with early sales and customer feedback indicating strong differentiation. Legal AI workflows are seen as a significant incremental opportunity.
- **Internal AI Impact**: Over 85% of employees use internal AI tools, with examples like reducing customer service handle time by 15% and accelerating legal content delivery by 5%. AI is also used for internal processes, such as contract review and due diligence.

**【CFO Financial Commentary】**
- **Financial Results**: Q4 2025 organic revenue grew 7%, with Adjusted EBITDA of $777 million (8% YoY increase). Full-year 2025 free cash flow was $1.95 billion, slightly ahead of expectations. Adjusted EPS for the year was $3.42.
- **2026 Outlook**: Organic revenue growth of 7.5%-8% is forecast, with 9.5% growth for the Big Three. EBITDA margin is expected to expand by 100 basis points annually through 2028. Capital allocation includes $850 million in M&A, $1 billion share buyback, and a 10% dividend increase.
- **Cost Management**: $19 million in severance costs in Q4 2025, with an additional $10 million expected in Q1 2026, as part of AI-driven productivity initiatives.

**【Q&A Highlights】**
- **Government Headwinds**: Legal Professionals segment growth of 8%-9% for 2026 is expected, despite slower government growth due to cancellations. Transactional growth in Q4 was driven by government, offsetting recurring growth.
- **AI Competition**: CEO emphasized the moat of proprietary content and domain expertise, stating that general-purpose AI cannot match professional-grade solutions. Westlaw Advantage is unmatched in legal research accuracy.
- **M&A Strategy**: CFO noted $850 million in 2025 M&A and plans to continue strategic bolt-ons. Share buybacks are attractive at current levels, with $500 million planned for 2026 to meet 75% free cash flow return target.
- **Segment Performance**: Tax, Audit, and Accounting grew 11% in Q4, driven by UltraTax and CoCounsel. Reuters segment grew 5% on LSEG contract and GenAI content licensing.

Thomson Reuters Corp (TRI) Q4 2025 Earnings Call Transcript

- **Revenue Momentum**: Q3 organic revenue +7%, with big three segments at 9% YoY. Legal segment accelerates to 9% growth, Tax & Accounting up 10%.
- **AI Differentiation**: Westlaw Advantage and Co Council tools leverage 85% editorially enhanced legal content, delivering 1.4 billion connections via Keysight network.
- **2026 Outlook**: 100bps margin expansion (vs. prior 50bps+) and $2.1 billion free cash flow, driven by AI automation and operating leverage.
- **Risk Management**: Government headwinds (20bps drag) offset by long-term confidence in federal solutions; corporate segment reorg delays resolved, with 9-11% 2026 growth reaffirmed.

**【CEO Summary Section】**
- **Revenue Growth**: Total organic revenue rose 7% Q3, with the big three segments (Legal, Corporates, Tax & Accounting) growing 9% year-over-year. Legal segment revenue accelerated to 9% YoY, driven by Westlaw and Co Council Drafting. Tax & Accounting grew 10%, led by SafeSend and Latin American markets.
- **AI Strategy**: Launched Westlaw Advantage and Co Council for Tax, with early sales trends positive. Emphasized differentiation through proprietary content (85% of legal content editorially enhanced) and AI tools like Keysight and Litigation Document Analyzer.
- **2026 Outlook**: Reaffirmed 7.5-8% organic revenue growth for 2026, with big three segments targeting 9.5% growth. Highlighted margin expansion and free cash flow improvements due to AI-driven efficiency and cost control.

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted EBITDA of $672 million (+10% YoY), margin up 20bps to 37.7%. Free cash flow for first nine months was $1.4 billion, down 3% YoY due to working capital timing. Completed $1 billion share buyback program in Q3.
- **2025 Guidance**: Full year organic revenue growth trending closer to 3.5-7.5% range, with headwinds from slower print volume ramp, federal government cancellations, and corporate segment booking delays. Q4 organic growth expected at 7%, including 9% for big three segments.
- **2026 Outlook**: Updated to 100bps margin expansion (vs. prior 50bps+), driven by operating leverage and AI automation. Free cash flow raised to $2.1 billion, up from prior range of $2-2.1 billion.

**【Q&A Highlights】**
- **Government Risks**: CFO cited 20bps drag from federal efficiency programs and cancellations, but CEO emphasized long-term confidence in government solutions (e.g., Westlaw Advantage, CLEAR law enforcement tools).
- **AI Competition**: CEO highlighted Co Council's leadership in workflow automation, with 24% of ACV now Gen AI-enabled. CFO noted $200 million+ annual AI investments continuing into 2026.
- **Corporate Segment**: CEO reaffirmed 9-11% 2026 growth target, despite Q3 booking delays caused by internal sales reorg. CFO pointed to strong pipeline coverage and product demand as key drivers.
- **Margin Expansion**: CFO attributed 2026 margin expansion to operating leverage (110bps natural lift) and automation initiatives (e.g., AWS tools reducing code review time by 4x).

Thomson Reuters Corp (TRI) Q3 2025 Earnings Call Transcript

- **Revenue Beat**: 7% organic growth, driven by 9% Big 3 segments and double-digit gains in key products like CoCounsel and Indirect Tax.
- **AI Innovation Lead**: Launches of agentic AI solutions (CoCounsel for Tax, Westlaw Deep Research) automate 30-40% of tax workflows and set new standards in legal research.
- **Margin Expansion**: 70bps EBITDA margin improvement to 37.8%, with 75bps full-year target. GenAI ACV at 22% and rising.
- **Balance Sheet Strength**: $10B capital capacity for M&A, with net leverage of 0.5x.
- **Customer Adoption**: 20-30% of law firms aggressively adopting AI, 90%+ of customers engaged with AI solutions.

**【CEO Summary Section】**
- **Revenue Growth**: Total organic revenue rose 7% YoY, with the Big 3 segments (Legal, Corporates, Tax & Accounting) growing 9%. Key contributors included CoCounsel, SurePrep, and international businesses.
- **Margin Expansion**: Adjusted EBITDA margin increased 70bps to 37.8%, driven by operating leverage and expense timing. Full-year margin target is 39%, up 75bps YoY.
- **AI Investment**: Agentic AI solutions like CoCounsel for Tax and Legal are automating complex workflows, with 22% of ACV now GenAI-enabled (up from 20% Q1).
- **Balance Sheet Strength**: Net leverage of 0.5x and $10 billion capital capacity through 2027 for M&A and innovation.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Legal (8% growth), Corporates (9%), Tax & Accounting (11%). Reuters News grew 5%, offsetting Print decline (-7%).
- **Profitability**: Adjusted EBITDA of $678M (+5% YoY), with Big 3 margins at 42.3% (+130bps). Free cash flow for H1 was $843M, up 4% YoY.
- **Guidance**: Full-year organic revenue 7-7.5%, EBITDA margin 39%, and free cash flow $1.9B. Q3 margin expected at 36% due to seasonal Tax & Accounting trends.

**【Q&A Highlights】**
- **AI Adoption**: 20-30% of law firms are aggressively adopting AI, with CoCounsel automating 30-40% of tax prep workflows. Legal AI adoption lags Tax due to workflow complexity.
- **Competitive Edge**: Content depth (Westlaw, Practical Law) and integrated AI tools differentiate TR from competitors.
- **Margin Drivers**: Operating leverage (110bps at 7-7.5% growth), expense timing, and high-margin GenAI revenue.
- **Capital Allocation**: Strategic M&A prioritized over buybacks; $200M+ annual GenAI investment.
- **Customer Cohorts**: 90%+ of customers express interest in AI, with 20-30% actively testing/trialing solutions.

Thomson Reuters Corporation (TRI) Q2 2025 Earnings Call Transcript

- **6% Organic Growth**: Big Three segments (+9%) led by AI-driven products like CoCounsel and SafeSend.
- **GenAI Expansion**: 20% of ACV now GenAI-enabled, up from 18% QoQ.
- **Profit Beats**: Non-GAAP EPS $1.12 vs. $1.11 YoY; free cash flow $277M (+3% YoY).
- **Resilient Model**: 80%+ recurring revenue, 12% transactional (50% repeat), limiting macro risk.
- **Capital Discipline**: $600M SafeSend acquisition, 10% dividend hike, $10B capital capacity for M&A.

**【CEO Opening Remarks】**
- Q1 2025 organic revenue grew 6%, with the Big Three segments (Legal, Corporate, Tax & Accounting) up 9% YoY, driven by double-digit growth in key products like CoCounsel, SurePrep, and SafeSend.
- AI investments are accelerating innovation, with CoCounsel Tax, Audit & Accounting (powered by Materia) and CoCounsel Chat launched in Q1. GenAI-enabled products now account for 20% of annualized contract value (ACV), up from 18% last quarter.
- Capital allocation remains disciplined: $600M acquisition of SafeSend in Q1, 10% dividend increase to $2.38/share, and $10B capital capacity through 2027 for strategic opportunities.

**【CFO Financial Highlights】**
- Q1 GAAP net income: $420M; Non-GAAP EPS: $1.12 (vs. $1.11 YoY), driven by healthy revenue flow-through and expense timing.
- Big Three segments: Adjusted EBITDA $759M (+6% YoY), margin 47.3%. Tax & Accounting grew 11% YoY, led by Latin America and SafeSend.
- Reuters News organic revenue declined 7% due to $25M AI licensing comparison, but adjusted for this, growth was +5%.
- Free cash flow: $277M (+3% YoY). Full-year 2025 guidance reaffirmed: 7-7.5% organic growth, 39% EBITDA margin, $1.9B free cash flow.

**【Q&A Key Takeaways】**
- **Demand Resilience**: 80%+ recurring revenue, no material impact from macro uncertainty; Govt business (+9% YoY) focused on efficiency, national security, fraud prevention.
- **AI Growth Engine**: GenAI-enabled products now 20% of ACV; CoCounsel Drafting adoption strong, with focus on integrating proprietary content for accuracy.
- **Acquisition Strategy**: $200M+ annual AI investment (split 50-50 between OpEx and CapEx); disciplined M&A pipeline with $10B capital capacity.
- **Margin Outlook**: Q2 EBITDA margin ~36% (seasonal Tax & Accounting decline), full-year 39% target unchanged.
- **Risk Management**: 12% transactional revenue (50% repeat), 45% of Global Print in multi-year contracts, limiting exposure to economic volatility.

Thomson Reuters Corporation (TRI) Q1 2025 Earnings Call Transcript

- **Record Growth & AI Investment**: 2024 organic revenue up 7%, with $200M+ AI spend driving 18% GenAI-enabled ACV. 2025 targets 7%-7.5% growth, 39% EBITDA margin.
- **Strategic Acquisitions Paying Dividends**: SafeSend ($60M 2025 rev) and Materia accelerate TAP's double-digit growth, while Westlaw Precision AI adoption hits 43%.
- **Resilient Cash Flow & Dividends**: $1.83B free cash flow in 2024, 10% dividend hike to $2.38/share, and $1.9B free cash flow forecast for 2025.
- **Government Business Stability**: $600M annual Govt. revenue (8% growth), diversified across legal research, print, and risk solutions, with limited direct exposure to policy changes.

**【CEO Summary Section】**
- **2024 Financial Highlights**: Organic revenue grew 7% (vs. 6% in 2023), with the Big 3 segments accelerating to 9% growth. Free cash flow reached $1.8 billion, and AI investments exceeded $200 million.
- **AI Momentum**: 18% of annualized contract value (ACV) now GenAI-enabled, up from 15% Q3. Westlaw Precision AI adoption surpasses 40%, and CoCounsel Drafting adoption is strong.
- **2025 Outlook**: Organic revenue growth of 7%-7.5%, with Big 3 segments targeting 9% growth. 2026 guidance raised to 7.5%-8% for total revenue, driven by GenAI expansion and M&A.
- **Strategic Acquisitions**: SafeSend ($60M 2025 revenue) and Materia (agentic AI for tax/audit) enhance TAP segment's double-digit growth trajectory.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Organic revenue +5%, Adjusted EBITDA $718M (+2%), and EPS $1.01. Full-year free cash flow $1.83B, meeting targets.
- **2025 Financial Framework**: 39% EBITDA margin (vs. 38.2% in 2024), $1.9B free cash flow, and 10% dividend increase to $2.38/share.
- **Capital Allocation**: $639M share buybacks in 2024, $1.6B in M&A, and $150M new venture fund for future growth.
- **Risk Management**: 2025 faces $34M GenAI licensing revenue decline, but GenAI-enabled products offset with 18% ACV penetration.

**【Q&A Key Takeaways】**
- **GenAI Adoption**: 43% Westlaw Precision AI penetration, 18% ACV GenAI-enabled, and $30M+ incremental revenue from SafeSend in 2025.
- **Government Exposure**: $600M annual Govt. revenue (8% organic growth), diversified across Westlaw, print, and risk solutions.
- **Execution Focus**: Customer success teams, solutions selling, and employee productivity tools to drive 2025 execution excellence.
- **Regulatory Tailwinds**: New admin may accelerate demand for tax, trade, and compliance tools, but early days to quantify impact.

Thomson Reuters Corporation (TRI) Q4 2024 Earnings Call Transcript

Thomson Reuters Corporation (TRI) Q3 2024 Earnings Call Transcript

Thomson Reuters Corporation (TRI) Q2 2024 Earnings Call Transcript

Thomson Reuters Corporation (TRI) Q1 2024 Earnings Call Transcript

- **Revenue Growth**: 6% FY2023, 7% Q4, with Big 3 segments at 8% Q4. 2024 guided at 6%, 2025-2026 target 6.5%-8%.
- **GenAI Success**: Westlaw Precision AI penetration 26%, driving Legal segment growth. Q1 2024 Reuters AI licensing revenue boost.
- **M&A Impact**: $2.1B spent in 2023, Pagero (85% owned) and Casetext enhancing product roadmaps. 2024 M&A contribution 50bps.
- **Financial Health**: 2023 free cash flow $1.87B, 2024 guided at $1.8B. Dividend increased 10% to $2.16/share.
- **Risks**: Argentina hyperinflation, tax reforms, and GenAI competition.

**【CEO Summary Section】**
- Full year organic revenue growth of 6%, with Q4 at 7%, driven by Legal, Corporates, and Tax & Accounting segments.
- Westlaw Precision AI-assisted research achieved 26% penetration, contributing to Legal segment growth.
- 2024 organic revenue guidance of 6%, with 2025-2026 target of 6.5%-8% growth, fueled by GenAI investments and recent acquisitions (e.g., Casetext, Pagero).
- 2023 M&A spend of $2.1 billion, including Pagero (85% ownership) and Casetext, enhancing product roadmaps.
- 2024 capital allocation: $1 billion NCIB buyback, 10% dividend increase to $2.16/share, and strategic M&A.

**【CFO Financial Commentary】**
- Q4 2023: Adjusted EBITDA $707M (+12%), EPS $0.98 (+31%), free cash flow $1.87B (+40%).
- 2024 outlook: 6% organic revenue growth, 38% EBITDA margin (down 130bps vs 2023), $1.8B free cash flow.
- Risks: Hyperinflation in Argentina (-40bps to growth), OECD tax reforms (18% effective tax rate in 2024).
- 2025-2026: Target 6.5%-8% organic growth, 75bps margin expansion in 2025, $2B+ free cash flow.

**【Q&A Highlights】**
- **GenAI Growth**: Legal segment leading with Westlaw Precision, CoCounsel Core, and Practical Law AI. Reuters AI licensing revenue boosted Q1 2024 growth.
- **M&A Strategy**: Acquisitions (e.g., Pagero, Casetext) aligned with GenAI roadmap, contributing 50bps to 2024 growth. No immediate divestitures planned.
- **International Expansion**: Latin America (Dominio) and AEM (Westlaw Japan) driving mid-teens growth. Pagero's global e-invoicing platform supports international scale.
- **Margin Management**: 2024 reinvestments in GenAI (~$100M) and M&A dilution (120bps). Long-term target: Legal > Corporates > Tax & Accounting margins.
- **Risk Mitigation**: Strong liquidity ($1.3B cash, $2B credit facility), below-target leverage (0.8x vs 2.5x), and disciplined M&A pipeline.

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