Market Capitalization Summary - Oracle has a market capitalization of 806.88 billion, while Visa stands at 655.99 billion [2] - Procter & Gamble has a market capitalization of 378.02 billion, and ExxonMobil is at 512.70 billion [2] - Mastercard's market capitalization is 470.87 billion, and Bank of America is at 375.11 billion [2] - UnitedHealth has a market capitalization of 308.53 billion, while ASML is at 310.77 billion [2] - Coca-Cola's market capitalization is 295.75 billion, and T-Mobile US Inc is at 273.60 billion [2] Stock Performance - Oracle's stock increased by 0.46 (+0.47%), while Visa's rose by 0.47 (+0.13%) [2] - Procter & Gamble's stock saw a slight increase of 2.68 (+0.48%), while ExxonMobil's stock increased by 1.92 (+1.20%) [2] - Mastercard's stock increased by 1.46 (+1.35%), and Bank of America's stock rose by 3.15 (+2.06%) [2] - UnitedHealth's stock decreased by 11.21 (-1.40%), while ASML's stock increased by 0.93 (+1.31%) [2] - Coca-Cola's stock increased by 14.05 (+4.50%), and T-Mobile US Inc's stock rose by 3.31 (+1.39%) [2] Additional Company Insights - McDonald's has a market capitalization of 212.78 billion, while AT&T is at 207.73 billion [3] - Uber's market capitalization is 192.79 billion, and Verizon's is at 184.08 billion [3] - Caterpillar's market capitalization is 183.87 billion, while Qualcomm is at 174.99 billion [3] - BlackRock has a market capitalization of 163.25 billion, and Citigroup is at 161.13 billion [3] - Boeing's market capitalization is 158.16 billion, while Pfizer is at 142.36 billion [3] Recent Market Movements - Intel's stock increased by 0.45 (+1.99%), while Dell Technologies rose by 0.82 (+0.16%) [4] - Rio Tinto's market capitalization is 746.07 billion, and Newmont is at 654.78 billion [4] - General Motors has a market capitalization of 494.87 billion, while Target is at 472.00 billion [4] - Ford's market capitalization is 451.14 billion, and Valero Energy is at 432.26 billion [4] - Vodafone's market capitalization is 241.45 billion, while Pinterest is at 270.30 billion [5]

Core Insights - Only 22% of organizations have a visible AI strategy, indicating a significant gap in AI adoption across industries [1][3] - Organizations with defined AI strategies are twice as likely to experience revenue growth and 3.5 times more likely to see critical AI benefits compared to those without [1][3] - The potential time savings from AI could lead to a $32 billion opportunity in the U.S. legal and tax sectors alone [2][3] Group 1: AI Strategy and Adoption - 80% of professionals believe AI will have a high or transformational impact on their profession in the next 5 years, yet only 38% expect significant changes in their own organizations this year [3] - 53% of professionals report their organizations are already seeing ROI from AI adoption, with improved efficiency and productivity being the most common benefits [3][4] - 30% of professionals feel their organizations are moving too slowly on AI adoption, and 40% are adopting AI without a strategy [4] Group 2: Professional Impact and Efficiency - Survey respondents predict that AI will save professionals an average of 5 hours per week within the next year, an increase from 4 hours in 2024, translating to an average annual value of $19,000 per person [2][7] - In the U.S., this efficiency could result in a cumulative annual impact of $20 billion for the legal industry and $12 billion for the CPA industry [7] - 55% of professionals have experienced significant changes in their work in the past year, with 46% reporting skills gaps, particularly in technology and data competencies [5] Group 3: Thomson Reuters' Commitment to AI - Thomson Reuters is investing $200 million annually over the next few years to integrate responsible AI into its solutions [8] - The company employs thousands in data science, engineering, and UX, providing a secure generative AI experience [9] - Thomson Reuters has established comprehensive governance structures and updated Data and AI Ethics Principles to guide its AI development [10]

Market Overview - U.S. stock markets faced a setback in 2025 following a significant bull run driven by artificial intelligence in 2023 and 2024, with the Nasdaq Composite rising 43.4% in 2023 and 28.6% in 2024, but only up 0.9% year to date in 2025 [1] Non-Tech Stock Performance - Despite the overall poor performance of the Nasdaq index, several large-cap non-tech stocks have seen substantial gains, with some achieving over 20% returns year to date, indicating potential investment opportunities [2][9] Recommended Stocks - Five non-tech stocks are recommended for investment: Sprouts Farmers Market Inc. (SFM), Royal Gold Inc. (RGLD), Thomson Reuters Corp. (TRI), Woodward Inc. (WWD), and Exelixis Inc. (EXEL), all carrying favorable Zacks Ranks [3][9] Sprouts Farmers Market Inc. (SFM) - SFM, with a Zacks Rank 1, focuses on product innovation, e-commerce, and private label offerings, leading to better-than-expected fourth-quarter 2024 results with year-over-year growth in both revenue and earnings [6] - For 2025, SFM expects net sales to rise between 10.5% and 12.5%, with comparable store sales anticipated to increase by 4.5% to 6.5% [7] - SFM has an expected revenue growth rate of 13.7% and earnings growth rate of 35.5% for the current year, with a 9% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [8] Royal Gold Inc. (RGLD) - RGLD, also with a Zacks Rank 1, benefits from solid streaming agreements and maintains a strong balance sheet, focusing on dividends, debt reduction, and new business opportunities [10] - Current gold prices around $3,400 per ounce, driven by U.S. tariff policies and geopolitical conflicts, are expected to enhance RGLD's results in upcoming quarters [11] - RGLD has an expected revenue growth rate of 24.1% and earnings growth rate of 35.9% for the current year, with a 0.6% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [12] Thomson Reuters Corp. (TRI) - TRI, with a Zacks Rank 2, operates as a content and technology company across various regions and segments, providing value-added information and technology [13][14] - The company has an expected revenue growth rate of 3.2% and earnings growth rate of 4.2% for the current year, with a 1.3% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [14] Woodward Inc. (WWD) - WWD, also with a Zacks Rank 2, benefits from strong demand in its Aerospace and Core Industrial units, with a positive outlook driven by increased defense spending and solid demand for power generation [15][16] - WWD has an expected revenue growth rate of 3.7% and earnings growth rate of 2.1% for the current year, with a 0.3% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [17] Exelixis Inc. (EXEL) - EXEL, with a Zacks Rank 2, reported better-than-expected first-quarter 2025 results, driven by strong demand for its lead drug, Cabometyx, and recent label expansions [18][19] - The company has an expected revenue growth rate of 7.4% and earnings growth rate of 30.5% for the current year, with a 1.6% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [20]

Core Insights - Thomson Reuters has launched agentic AI systems, starting with CoCounsel for tax, audit, and accounting professionals, which enhances workflow integration and accountability [1][2][5] - The agentic AI platform is designed to operate within existing professional workflows, breaking down complex tasks into manageable steps while ensuring human oversight [2][3][6] Company Developments - The agentic platform has been in development for over a year, accelerated by the acquisition of Materia, an AI copilot startup [3][11] - CoCounsel is the first agentic experience launched, automating tasks such as client file review and compliance checks, and integrating various resources into a single workspace [5][8] Technology and Features - Thomson Reuters is re-architecting its core product experiences to embed agentic capabilities, utilizing features from platforms like Checkpoint and Westlaw [4][10] - The new systems are tailored for high-stakes environments where accuracy and trust are critical, with a focus on integrating generative AI [4][6] Market Position - The launch of CoCounsel signifies a major advancement in professional-grade AI, with early customers reporting significant time savings in their workflows [7][8] - Thomson Reuters aims to redefine the capabilities of generative AI in professional settings, with plans for further developments in legal, risk, and compliance domains [10][12] Future Outlook - Upcoming applications include "Ready to Review," an agentic tax prep application that will further enhance the capabilities of AI in professional environments [9] - The company is committed to ongoing transformation and leadership in the agentic AI space, indicating a strong future direction for its technology offerings [11][12]

Industry Overview - The business services industry is experiencing sustained expansion, with economic activity in the services sector growing for the 10th consecutive month as of April, indicated by a robust Services PMI remaining above the 50% threshold for the 56th time in 59 months, reflecting a post-pandemic recovery [1] - The industry is mature, with revenues, income, and cash flows now exceeding pre-pandemic levels, and it ranks in the top 19% of the Zacks Sector Rank, suggesting an expected outperformance over the next three to six months [3] Technological Impact - The rapid advancement and adoption of artificial intelligence and automation technologies are transforming the delivery of business services, promising enhanced efficiency and cost reduction while also presenting challenges such as workforce displacement and the need for continuous upskilling [2] Stock Recommendations - Five business services stocks with favorable Zacks Rank for investment are recommended: Cintas Corp. (CTAS), Thomson Reuters Corp. (TRI), Healthcare Services Group Inc. (HCSG), ZipRecruiter Inc. (ZIP), and Bright Horizons Family Solutions Inc. (BFAM), all currently carrying a Zacks Rank 2 (Buy) [4] Company Highlights Cintas Corp. (CTAS) - Cintas is well-positioned to benefit from strong momentum across its segments, with improved demand in its Uniform Rental and Facility Services segment and First Aid and Safety Services segment [7] - Expected revenue and earnings growth rates for CTAS are 7% and 10.8%, respectively, for the next year, with a 1.7% improvement in the Zacks Consensus Estimate for next-year earnings over the past 60 days [8] Thomson Reuters Corp. (TRI) - TRI operates as a content and technology company across various regions and segments, providing value-added information and technology in fields such as law, tax, accounting, and healthcare [9][10] - Expected revenue and earnings growth rates for TRI are 3.1% and 4.2%, respectively, for the current year, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [10] Healthcare Services Group Inc. (HCSG) - HCSG provides management and operational services to healthcare facilities, making it a preferred choice for clients in the sector [11][12] - Expected revenue and earnings growth rates for HCSG are 5.1% and 58.5%, respectively, for the current year, with a 5% improvement in the Zacks Consensus Estimate for current-year earnings over the past seven days [12] ZipRecruiter Inc. (ZIP) - ZIP operates an online marketplace connecting job seekers and employers, offering various recruitment and hiring services [13] - Expected revenue and earnings growth rates for ZIP are 9% and 13%, respectively, for the next year, with a 3.8% improvement in the Zacks Consensus Estimate for next-year earnings over the past 30 days [14] Bright Horizons Family Solutions Inc. (BFAM) - BFAM provides employer-sponsored child care and early education solutions, managing child care centers for various organizations [15][16] - Expected revenue and earnings growth rates for BFAM are 7.6% and 18.4%, respectively, for the current year, with a significant 24.6% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [17]

Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN) and Thomson Reuters (TRI) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and ou ...

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates, particularly concentrating on investment opportunities in the Hong Kong market [1]

[Executive Summary](index=2&type=section&id=Executive%20Summary) [Company Overview](index=2&type=section&id=Our%20company) Thomson Reuters provides trusted content and technology to professionals in legal, tax, audit, accounting, compliance, government, and media sectors. The company's business model is centered on selling information and software solutions, primarily through recurring subscriptions. These solutions integrate deep domain knowledge with technology to enhance customer productivity, leading to strong customer retention and a capital-efficient, cash-generative business - The company serves professionals across legal, tax, audit, accounting, compliance, government, and media[8](index=8&type=chunk) - The majority of revenues are derived from recurring subscriptions for information and software solutions that blend domain knowledge with technology, resulting in strong customer retention[9](index=9&type=chunk) [Reportable Segments](index=3&type=section&id=Reportable%20Segments) The company is organized into five reportable segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The first three are collectively referred to as the "Big 3" segments and represent the core of the business - The five reportable segments are Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - The Legal Professionals, Corporates, and Tax & Accounting Professionals segments are collectively known as the "Big 3" segments[17](index=17&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) In Q1 2025, Thomson Reuters reported a 1% increase in total revenues, achieving 6% organic growth driven by a 9% rise in recurring revenues. The "Big 3" segments saw 9% organic revenue growth. Adjusted EBITDA margin slightly decreased to 42.3%. The company acquired SafeSend for approximately $600 million, sold FindLaw, and announced a 10% dividend increase. The full-year 2025 outlook has been reaffirmed Q1 2025 Financial Highlights | Metric | Value/Change | | :--- | :--- | | Total Revenue Growth | 1% | | Organic Revenue Growth | 6% | | Recurring Revenue Organic Growth | 9% | | "Big 3" Segments Organic Revenue Growth | 9% | | Adjusted EBITDA Margin | 42.3% (-40 bp YoY) | | "Big 3" Adjusted EBITDA Margin | 47.3% (+150 bp YoY) | - Acquired cPaperless, LLC (SafeSend) for approximately **$600 million** in January 2025, which was offset by the loss of revenues from the sale of FindLaw in December 2024[19](index=19&type=chunk)[23](index=23&type=chunk) - Announced a **10%** annualized dividend increase to **$2.38** per common share in February 2025[25](index=25&type=chunk) - The full-year 2025 outlook, originally communicated in February 2025, was reaffirmed[22](index=22&type=chunk) [Results of Operations](index=4&type=section&id=Results%20of%20Operations) [Consolidated Results](index=4&type=section&id=Consolidated%20results) For Q1 2025, consolidated revenues increased by 1% to $1.9 billion, with organic growth at 6%. Operating profit rose 1% to $563 million. However, diluted EPS fell 9% to $0.96, primarily due to higher tax expense and unfavorable currency impacts in other finance income compared to the prior year. Adjusted EPS increased 1% to $1.12 Consolidated Financial Results (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **IFRS Measures** | | | | | Revenues | $1,900M | $1,885M | 1% | | Operating profit | $563M | $557M | 1% | | Diluted EPS | $0.96 | $1.06 | (9%) | | **Non-IFRS Measures** | | | | | Organic revenue growth | 6% | n/a | n/a | | Adjusted EBITDA | $809M | $806M | - | | Adjusted EBITDA margin | 42.3% | 42.7% | (40) bp | | Adjusted EPS | $1.12 | $1.11 | 1% | Revenue by Type (Q1 2025 vs Q1 2024) | Revenue Type | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Recurring | $1,451M | $1,426M | 2% | 9% | | Transactions | $333M | $335M | (1%) | 1% | | Global Print | $116M | $124M | (6%) | (5%) | | **Total** | **$1,900M** | **$1,885M** | **1%** | **6%** | - Net earnings and diluted EPS decreased primarily due to higher tax expense and because the prior-year period included currency benefits reflected in other finance income[49](index=49&type=chunk) [Segment Results](index=8&type=section&id=Segment%20results) In Q1 2025, the "Big 3" segments collectively achieved 9% organic revenue growth. Legal Professionals grew 8% organically despite a total revenue decline from the FindLaw divestiture. Corporates and Tax & Accounting Professionals showed strong organic growth of 9% and 11% respectively. Reuters News revenue declined 7% organically due to a tough comparison with prior-year AI content licensing deals. Global Print revenue continued its decline, down 5% organically [Legal Professionals](index=8&type=section&id=Legal%20Professionals) Total revenue for the Legal Professionals segment decreased 4% to $693 million due to the FindLaw divestiture. However, organic revenue grew 8%, driven by strong performance in Westlaw, CoCounsel, and Practical Law. Segment adjusted EBITDA margin improved by 100 basis points to 48.4% Legal Professionals Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $693M | $721M | (4%) | 8% | | Segment adjusted EBITDA | $336M | $342M | (2%) | n/a | | Segment adjusted EBITDA margin | 48.4% | 47.4% | +100 bp | n/a | [Corporates](index=8&type=section&id=Corporates) The Corporates segment revenue grew 7% to $541 million, with strong organic growth of 9%. This was driven by an 11% increase in recurring revenues from products like Indirect and Direct Tax, and Practical Law. Segment adjusted EBITDA margin expanded by 160 basis points to 39.4%, aided by operating leverage and favorable currency effects Corporates Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $541M | $507M | 7% | 9% | | Segment adjusted EBITDA | $213M | $193M | 10% | n/a | | Segment adjusted EBITDA margin | 39.4% | 37.8% | +160 bp | n/a | [Tax & Accounting Professionals](index=8&type=section&id=Tax%20%26%20Accounting%20Professionals) This segment's revenue increased 10% to $360 million, with organic growth of 11%, boosted by the SafeSend acquisition and strong performance in transactions revenues. Segment adjusted EBITDA margin rose 170 basis points to 56.7%, reflecting operating leverage. The segment's performance is highly seasonal, with revenues concentrated in Q1 and Q4 Tax & Accounting Professionals Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $360M | $328M | 10% | 11% | | Segment adjusted EBITDA | $210M | $181M | 17% | n/a | | Segment adjusted EBITDA margin | 56.7% | 55.0% | +170 bp | n/a | - The segment is highly seasonal, with about **60%** of annual revenues typically generated in the first and fourth quarters[59](index=59&type=chunk) [Reuters News](index=9&type=section&id=Reuters%20News) Reuters News revenue declined 7% to $196 million on an organic basis. This was primarily due to the absence of large, transactional generative AI-related content licensing revenue that was present in Q1 2024. Segment adjusted EBITDA margin contracted significantly by 830 basis points to 20.0% due to the lower revenues Reuters News Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $196M | $210M | (7%) | (7%) | | Segment adjusted EBITDA | $39M | $60M | (34%) | n/a | | Segment adjusted EBITDA margin | 20.0% | 28.3% | (830) bp | n/a | - Revenue decrease was primarily due to generative AI-related content licensing revenue included in the prior-year period that was largely transactional[60](index=60&type=chunk) [Global Print](index=9&type=section&id=Global%20Print) Global Print revenue decreased 6% to $116 million, or 5% organically, driven by lower shipment volumes and customer migration to digital products like Westlaw. The segment's adjusted EBITDA margin saw a slight decline of 40 basis points to 37.8% Global Print Q1 2025 Performance | Metric | Q1 2025 | Q1 2024 | Total Change | Organic Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $116M | $124M | (6%) | (5%) | | Segment adjusted EBITDA | $44M | $47M | (7%) | n/a | | Segment adjusted EBITDA margin | 37.8% | 38.2% | (40) bp | n/a | [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) [Capital Strategy and Financial Position](index=10&type=section&id=Capital%20Strategy%20and%20Financial%20Position) The company maintains a disciplined capital strategy focused on growth, leverage management, and shareholder returns. As of March 31, 2025, cash and cash equivalents were $1.4 billion. The net debt to adjusted EBITDA leverage ratio was 0.6:1, well below the target of 2.5:1. The company expects its liquidity to be sufficient for the next 12 months and plans to repay C$1.4 billion in notes due May 2025 with cash on hand - Capital strategy targets include a maximum leverage ratio of **2.5x** net debt to adjusted EBITDA, a dividend payout of **50-60%** of free cash flow, and returning at least **75%** of annual free cash flow to shareholders[69](index=69&type=chunk) Financial Position as of March 31, 2025 | Metric | Value | | :--- | :--- | | Cash and cash equivalents | $1.4 billion | | Net debt | $1.75 billion | | Net debt to adjusted EBITDA ratio | 0.6:1 | | Credit facility covenant max ratio | 4.5:1 | - In March 2025, the company completed a debt exchange offer to optimize its capital structure, with TR Finance LLC issuing new notes guaranteed by the parent and certain subsidiaries[79](index=79&type=chunk) [Cash Flow](index=10&type=section&id=Cash%20flow) For Q1 2025, net cash from operating activities was $445 million, a slight increase from the prior year. Investing activities used $756 million, primarily for the $606 million SafeSend acquisition. Financing activities used $288 million, mainly for dividend payments. Free cash flow was stable at $277 million Summary of Cash Flow (Q1 2025 vs Q1 2024) | (millions of U.S. dollars) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | 445 | 432 | | Net cash (used in) provided by investing activities | (756) | 631 | | Net cash used in financing activities | (288) | (470) | | Free cash flow (Non-IFRS) | 277 | 271 | - Investing cash outflow in Q1 2025 was driven by the **$606 million** acquisition of SafeSend[73](index=73&type=chunk) - Financing cash outflow in Q1 2025 included **$259 million** in dividend payments. The prior year period included **$352 million** of share repurchases[75](index=75&type=chunk)[77](index=77&type=chunk)[85](index=85&type=chunk) [Contingencies](index=13&type=section&id=Contingencies) The company is involved in various legal proceedings and tax audits in the ordinary course of business, but management does not expect them to have a material adverse impact. A notable issue is an ongoing dispute with the U.K. tax authority (HMRC) regarding the Diverted Profits Tax (DPT), for which the company has paid $430 million under assessment but expects to recover substantially all of it. The company also has guarantee obligations related to the 3 Times Square office building redevelopment - The company is contesting notices of assessment from the U.K.'s HMRC under the Diverted Profits Tax (DPT) regime, having paid **$430 million**, but expects to receive refunds for substantially all amounts paid[95](index=95&type=chunk)[96](index=96&type=chunk) - The company guarantees **50%** of a **$415 million** term loan facility for the 3 Times Square office building redevelopment, which is expected to be refinanced in June 2025[97](index=97&type=chunk) [Outlook](index=15&type=section&id=Outlook) [2025 Outlook](index=15&type=section&id=2025%20Outlook) Thomson Reuters reaffirmed its full-year 2025 outlook. The company projects total revenue growth of 3.0-3.5% (impacted by divestitures) and organic revenue growth of 7.0-7.5%. The adjusted EBITDA margin is expected to be approximately 39%, with free cash flow around $1.9 billion. For Q2 2025, organic revenue growth is anticipated to be approximately 7% with an adjusted EBITDA margin of about 36% Full-Year 2025 Outlook | Metric | 2024 Actual | 2025 Outlook | | :--- | :--- | :--- | | Total Revenue growth | 7% | 3.0 - 3.5% | | Organic revenue growth | 7% | 7.0 - 7.5% | | Adjusted EBITDA margin | 38.2% | ~ 39% | | Free cash flow | $1.8 billion | ~ $1.9 billion | | "Big 3" Organic revenue growth | 9% | ~ 9% | - For the second quarter of 2025, the company expects an organic revenue growth rate of approximately **7%** and an adjusted EBITDA margin of approximately **36%**[103](index=103&type=chunk) [Material Assumptions and Risks](index=16&type=section&id=Material%20Assumptions%20and%20Risks) The 2025 outlook is based on assumptions of continued demand for trusted products and the ability to deliver innovative solutions amidst an uncertain macroeconomic environment. Key risks include the potential for lower demand due to economic worsening, regulatory changes related to AI, competitive pressures, and higher-than-expected inflation impacting costs - Material assumptions for revenue include continued need for trusted products to navigate complex environments and the ability to innovate and retain customers[105](index=105&type=chunk) - Material risks include ongoing geopolitical and macroeconomic uncertainty impacting demand, potential AI-related regulatory changes, competitive actions, and higher-than-expected inflation[105](index=105&type=chunk) [Other Disclosures](index=17&type=section&id=Other%20Disclosures) [Related Party Transactions](index=17&type=section&id=Related%20Party%20Transactions) As of April 30, 2025, the principal shareholder, Woodbridge, beneficially owned approximately 70% of the company's common shares. The only new significant related party transaction in Q1 2025 was a $5 million cash contribution to 3XSQ Associates pursuant to a capital call - Woodbridge, the principal shareholder, owned approximately **70%** of common shares as of April 30, 2025[107](index=107&type=chunk) - In Q1 2025, the company contributed **$5 million** in cash to 3XSQ Associates, a joint venture, as part of a capital call[108](index=108&type=chunk) [Critical Accounting Estimates and Judgments](index=17&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgments) There have been no significant changes to the company's critical accounting estimates and judgments since the 2024 annual report. However, management notes that the uncertain macroeconomic environment could cause these estimates to become more variable and subject to material changes in the future - No significant changes have been made to critical accounting estimates and judgments since the 2024 annual management's discussion and analysis[111](index=111&type=chunk) [Additional Information](index=18&type=section&id=Additional%20Information) Management concluded that disclosure controls and procedures were effective as of the end of Q1 2025. There were no material changes to internal control over financial reporting during the quarter. As of April 30, 2025, the company had 450,478,428 common shares outstanding - Disclosure controls and procedures were deemed effective at the end of the reporting period[113](index=113&type=chunk) - No material changes occurred in internal control over financial reporting during Q1 2025[115](index=115&type=chunk) [Appendix](index=19&type=section&id=Appendix) [Non-IFRS Financial Measures](index=19&type=section&id=Non-IFRS%20Financial%20Measures) This section defines the non-IFRS financial measures used throughout the report, such as Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and Organic Revenue Growth. The company believes these measures provide useful supplemental insight into its operating performance, financial position, and are used for internal planning and incentive programs - The company uses non-IFRS measures as supplemental indicators of operating performance and for internal planning, believing they provide more insight into performance[5](index=5&type=chunk)[123](index=123&type=chunk) [Reconciliations of Non-IFRS Financial Measures](index=23&type=section&id=Reconciliations%20of%20Non-IFRS%20Financial%20Measures) This appendix provides detailed reconciliations of non-IFRS financial measures to their most directly comparable IFRS measures. This includes reconciliations for Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Net Debt, and organic revenue growth, ensuring transparency in how these supplemental metrics are derived from the IFRS financial statements Reconciliation of Earnings from Continuing Operations to Adjusted EBITDA (Q1 2025) | (millions of U.S. dollars) | Q1 2025 | | :--- | :--- | | Earnings from continuing operations | 425 | | Tax expense | 92 | | Other finance costs (income) | 10 | | Net interest expense | 30 | | Amortization & Depreciation | 226 | | **EBITDA** | **783** | | Other adjustments | 26 | | **Adjusted EBITDA** | **809** | Reconciliation of Net Earnings to Adjusted Earnings (Q1 2025) | (millions of U.S. dollars) | Q1 2025 | | :--- | :--- | | Net earnings | 434 | | Adjustments (Amortization, other op losses, etc.) | 94 | | Tax on above items | (24) | | Other adjustments (tax items, discontinued ops, etc.) | (1) | | Dividends declared on preference shares | (1) | | **Adjusted earnings** | **506** |

Core Insights - Thomson Reuters reported $1.9 billion in revenue for Q1 2025, a year-over-year increase of 0.8%, with an EPS of $1.12 compared to $1.11 a year ago, indicating a slight growth in earnings [1] - The revenue fell short of the Zacks Consensus Estimate of $1.92 billion by 0.95%, while the EPS exceeded the consensus estimate of $1.06 by 5.66% [1] Revenue Performance - Legal Professionals revenue was $693 million, below the average estimate of $696.75 million, reflecting a year-over-year decline of 3.9% [4] - Tax & Accounting Professionals revenue reached $360 million, surpassing the average estimate of $366.88 million, with a year-over-year increase of 9.8% [4] - Global Print revenue was $116 million, below the average estimate of $119.85 million, showing a year-over-year decrease of 6.5% [4] - Corporates revenue was $541 million, slightly below the average estimate of $553.36 million, with a year-over-year increase of 6.7% [4] - Reuters News revenue was $196 million, exceeding the average estimate of $186.80 million, but down 6.7% year-over-year [4] - Eliminations reported a loss of $6 million, slightly worse than the estimated loss of $5 million, but improved by 20% year-over-year [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Legal Professionals was $336 million, exceeding the average estimate of $327.02 million [4] - Adjusted EBITDA for Corporates was $213 million, above the average estimate of $202.65 million [4] - Adjusted EBITDA for Corporate costs was -$33 million, worse than the average estimate of -$31.28 million [4] - Adjusted EBITDA for Reuters News was $39 million, surpassing the average estimate of $36 million [4] - Adjusted EBITDA for Global Print was $44 million, in line with the average estimate of $44.23 million [4] - Adjusted EBITDA for Tax & Accounting Professionals was $210 million, exceeding the average estimate of $197.30 million [4] Stock Performance - Thomson Reuters shares returned +6% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Thomson Reuters reported quarterly earnings of $1.12 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, and showing a slight increase from $1.11 per share a year ago, indicating a 5.66% earnings surprise [1][2] Financial Performance - The company posted revenues of $1.9 billion for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.95%, and a marginal increase from $1.89 billion year-over-year [2] - Over the last four quarters, Thomson Reuters has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Thomson Reuters shares have increased approximately 16% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $1.79 billion, and for the current fiscal year, it is $3.88 on revenues of $7.49 billion [7] - The estimate revisions trend for Thomson Reuters is mixed, and future changes in estimates will be closely monitored following the recent earnings report [6][7] Industry Context - The Business - Services industry, to which Thomson Reuters belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]