Thomson Reuters (TSX/Nasdaq: TRI) Reports Q1 2025 Results; Organic Revenue Growth Led by Key Segments

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Highlights

• Organic revenue rose 6%, driven by 9% growth across core business segments
• Adjusted EPS increased slightly to $1.12 from $1.11 in Q1 2024
• Dividend increased by 10% to $2.38 annually, announced earlier in February 2025

Thomson Reuters (TSX/Nasdaq: TRI) released its financial results for the first quarter ended March 31, 2025, reporting 1% total revenue growth to $1.9 billion and 6% growth in organic revenue. The company's core segments—Legal Professionals, Corporates, and Tax & Accounting Professionals—collectively delivered 9% organic growth and now represent 84% of total revenues.

Legal segment organic revenues rose 8%, while the Corporates and Tax & Accounting segments grew organically by 9% and 11%, respectively. However, total revenue growth was partially offset by a 6% decline in Global Print and a 7% decline in Reuters News revenue. The net effect of acquisitions, disposals, and foreign exchange reduced reported growth by approximately 5%.

Operating profit for the quarter increased slightly to $563 million, up from $557 million in Q1 2024. Adjusted EBITDA was flat year-over-year at $809 million, with the margin declining slightly from 42.7% to 42.3%. Legal and Tax & Accounting segments recorded margin improvements, while Reuters News experienced a notable margin decline from 28.3% to 20.0%.

Diluted earnings per share fell to $0.96 from $1.06 due to higher tax expenses and reduced currency-related benefits. However, adjusted EPS, which excludes such effects, increased modestly to $1.12.

In addition to reaffirming its full-year 2025 outlook, the company completed its $600 million acquisition of SafeSend in January to expand its tax automation capabilities. Operating cash flow improved 4% to $445 million, and free cash flow increased 3% to $277 million, aided by lower-than-expected capital expenditures.

The company also raised its annual dividend by 10% to $2.38 per share, reinforcing its previously announced capital allocation plan focused on long-term returns.