Thomson Reuters Q2 Earnings Down from Last Year, Revenue Up

Thomson Reuters reported Q2 net earnings of $313 million, down from $841 million a year ago. Earnings per share were 69 cents, compared to $1.86 per share in 2024. Revenue increased to $1.79 billion from $1.74 billion a year ago. The company remains focused on innovation and investing in AI technology for its legal, tax, and accounting services.

Toronto, July 2, 2025 - Thomson Reuters (TSX/Nasdaq: TRI) has released its second-quarter (Q2) 2025 financial results, showing a mixed performance compared to the same period last year. The company reported a 3% increase in total revenues to $1.785 billion, up from $1.740 billion in Q2 2024. However, net earnings dropped to $313 million, a significant decrease from $841 million in Q2 2024. Earnings per share (EPS) decreased to 69 cents from $1.86 per share a year ago.

Organic revenues, which exclude the impact of currency fluctuations and acquisitions, grew by 7% to $1.704 billion, driven by a 9% increase in organic revenues for the "Big 3" segments: Legal Professionals, Corporates, and Tax & Accounting Professionals. These segments collectively accounted for 82% of total revenues.

Operating profit increased by 5% to $436 million, primarily due to higher revenues and other operating gains. However, this was partly offset by higher operating expenses and amortization of computer software. Adjusted EBITDA, a measure of operating performance that excludes non-operating items, increased by 5% to $678 million, with a margin of 37.8%.

The company's focus on innovation and AI technology was evident in the launch of new agentic AI solutions, such as CoCounsel Legal and CoCounsel for tax, audit, and accounting. These offerings aim to leverage Thomson Reuters' authoritative content and expertise to deliver transformative professional-grade AI solutions.

Thomson Reuters also repaid $1.4 billion in Canadian notes with cash on hand in May 2025, demonstrating its commitment to managing its capital structure effectively.

Despite the decline in net earnings, the company maintained its full-year 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow. Free cash flow increased by 4% to $566 million, primarily due to higher net cash provided by operating activities.

Overall, Thomson Reuters' Q2 2025 results show a mixed performance, with revenue growth and a focus on innovation offsetting the decline in net earnings. The company's commitment to AI technology and its "Big 3" segments will be key factors to watch in the coming quarters.

References:
[1] https://www.thomsonreuters.com/en/press-releases/2025/august/thomson-reuters-reports-second-quarter-2025-results