Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Market Overview - Canadian equities advanced in Q3, with the S&P/TSX Composite Total Return Index increasing by 12.5%, reaching an all-time high [2] - Seven of the eleven GICS sectors set new records, including energy, materials, industrials, consumer discretionary, consumer staples, financials, and utilities [2] - The U.S. dollar rose 2.3% against the Canadian dollar to $1.39 USD/CAD, although it remains down 3.2% year-to-date [3] Economic Context - Canada's economy showed modest improvement in July, with GDP growth affected by high unemployment and low inflation [4] - The Bank of Canada and the Federal Reserve both cut rates, with the Bank of Canada lowering rates to 2.50% to stimulate housing and consumption [4] Sector Performance - On an absolute return basis, 10 of 11 GICS sectors increased in Q3, with materials (+37.8%), IT (+13.2%), and energy (+12.6%) being the best performers [5] - Weakness in industrials was noted, particularly in Canadian railways, which faced pressure from softer shipping volumes and trade uncertainty [9] - Energy sector performance was mixed, with volatility in crude oil and natural gas prices, ending at $62.37/bbl and $3.30/mmbtu respectively [6] Strategy Performance - The ClearBridge Canadian Equity Strategy underperformed the benchmark in Q3, primarily due to cyclical exposure in materials [8] - Financials were the best contributors to the Strategy's performance, with strong selection benefiting from not owning underperforming stocks [12] Portfolio Positioning - The Strategy's largest sector exposures were in financials, industrials, and energy, with an underweight in materials and financials [18] - Trading activity increased, with selective exposure to out-of-favor cyclical stocks and trimming of defensive sectors [14] Corporate Actions - Several corporate actions occurred, including Parkland Corp.'s acquisition by Sunoco LP and MEG Energy's unsolicited bid from Strathcona Resources [13] - Teck Resources and Anglo American agreed to a merger, creating a global mining leader with significant copper exposure [13] Outlook - Canadian equity markets continued to show strength, supported by resilient corporate earnings amid global dynamics [19] - Investor sentiment remains cautious but resilient, with macro headwinds and political risks increasingly priced into expectations [19]

Group 1 - Thomson Reuters will release its third-quarter 2025 earnings on November 4, 2025, and a conference call will be held at 9:00 a.m. EST on the same day [1] - The conference call will be hosted by Steve Hasker, the president and CEO, and Mike Eastwood, the CFO, and may include forward-looking information [1] - The webcast for the earnings call is accessible through the Investor Relations section of the Thomson Reuters website, with registration now open [1] Group 2 - Thomson Reuters is a global content and technology company that provides trusted content and technology to professionals in various sectors, including legal, tax, accounting, compliance, government, and media [2] - The company's products combine specialized software and insights to empower professionals with the necessary data and intelligence for informed decision-making [2] - Reuters, as part of Thomson Reuters, is recognized as a leading provider of trusted journalism and news [2] Group 3 - Thomson Reuters announced a share repurchase program of up to $1.0 billion [4]

Core Insights - Oak Hill Advisors ("OHA") acted as the Administrative Agent and Lead Left Arranger for a private unitranche financing to support Francisco Partners' acquisition of Elite, a leading provider of ERP software and integrated payment solutions for law firms globally [1] - OHA's previous experience as the sole lender for TPG's carve-out of Elite from Thomson Reuters in 2023 facilitated a decisive financing solution due to its familiarity with the company and expertise in ERP software investments [2] - Eric Muller from OHA highlighted Elite's strong performance and growth, emphasizing its market leadership and customer retention, and expressed excitement about the partnership with Francisco Partners and Elite's leadership for future expansion [3] Company Overview - Oak Hill Advisors is a global credit-focused alternative asset manager with over 30 years of investment experience, managing approximately $98 billion in capital across various credit strategies as of June 30, 2025 [4] - OHA employs over 400 professionals across six global offices, providing a collaborative platform to meet diverse credit needs and is the private markets platform of T. Rowe Price Group, Inc. [5] - Elite, founded in 1947, is an independent technology company that develops innovative digital financial solutions for law firms, positioning itself as a leader in the legal technology sector [6] Investment Firm Profile - Francisco Partners is a global investment firm specializing in technology and technology-enabled businesses, having invested in over 450 technology companies and raised more than $50 billion in capital since its inception [7]

Core Viewpoint - Wells Fargo upgraded Thomson Reuters from Equal Weight to Overweight and increased its price target from $187 to $212, indicating a positive outlook for the company's stock performance [1] Group 1: Stock Performance - Shares of Thomson Reuters rose nearly 2% in premarket trading following the upgrade by Wells Fargo [1] Group 2: AI and Market Position - Analysts noted that concerns regarding artificial intelligence had led to a contraction in the stock's multiple, but argued that Thomson Reuters is well-positioned to benefit from AI adoption [1] Group 3: Revenue Growth - Growth in the Legal segment is expected to accelerate in the second half of the year, driven by the uptake of Westlaw Precision and Advantage [2] - Recurring revenue for Thomson Reuters is currently running at 9%, with easier comparisons for transactional revenue providing additional support [2] - The Advantage upgrade cycle is identified as a key long-term driver of growth for the company [2]

Core Viewpoint - Thomson Reuters has announced a $1.0 billion share repurchase program and entered into an automatic share purchase plan to facilitate share purchases during blackout periods [1][2]. Group 1: Share Repurchase Program - The company plans to repurchase up to 10 million common shares between August 19, 2025, and August 18, 2026, as part of its normal course issuer bid (NCIB) [1]. - The automatic share purchase plan (ASPP) allows the company to buy shares during periods when it would typically be restricted from doing so due to regulatory reasons [2]. - All purchases made under the ASPP will count towards the total shares repurchased under the NCIB [2]. Group 2: Conditions and Management Discretion - Purchases under the ASPP will be executed by the company's broker based on parameters set by Thomson Reuters, ensuring no material non-public information is involved [2]. - Outside of predetermined blackout periods, share purchases will be at management's discretion, adhering to TSX rules and applicable securities laws [2]. - Future repurchase decisions will depend on market conditions, share price, and other investment opportunities [3].

Core Viewpoint - Thomson Reuters plans to repurchase up to $1.0 billion of its shares under a new normal course issuer bid (NCIB) approved by the Toronto Stock Exchange [1][2]. Group 1: Share Repurchase Details - The company may repurchase up to 10 million common shares, representing approximately 2.22% of its issued and outstanding common shares as of August 12, 2025, between August 19, 2025, and August 18, 2026 [2]. - Repurchases will occur in open market transactions on the TSX, Nasdaq, and other eligible exchanges, with the price being the market price at the time of purchase [3]. - Daily repurchases on the TSX are limited to a maximum of 91,026 shares, which is 25% of the average daily trading volume of 364,105 for the six months ended July 31, 2025 [3]. Group 2: Capital Strategy and Flexibility - Thomson Reuters maintains a disciplined capital strategy that balances growth, financial leverage, credit ratings, and returns to shareholders through dividends and share repurchases [5]. - The NCIB provides a flexible way for the company to return value to shareholders who choose to sell their shares [5]. - Future repurchase decisions will depend on market conditions, share price, and other investment opportunities, with the option to suspend or discontinue repurchases at any time [6].

Group 1 - The analyst maintains a hold rating for Thomson Reuters (NASDAQ: TRI) due to perceived overvaluation despite a solid long-term outlook [1] - The investment approach emphasizes understanding core business economics, including competitive moat, unit economics, reinvestment opportunities, and management quality [1] - The focus is on sectors with strong secular tailwinds, aiming to identify businesses that can scale and generate long-term free cash flow [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by any business relationships with the companies discussed [2]

Market Overview - The worldwide Legal AI Software Market is expected to grow at a compound annual growth rate (CAGR) of 28.3%, increasing from approximately USD 3.11 billion in 2025 to USD 10.82 billion by 2030 [1]. Market Dynamics - The convergence of technological advancements, competitive pressures, and proven ROI of AI solutions is driving the adoption of AI tools in law firms, corporate legal departments, and government agencies [3]. - The European Union's Artificial Intelligence Act, adopted in March 2024, is reshaping the legal AI software market by establishing compliance frameworks for AI applications, particularly those classified as "high-risk" [4][6]. Key Trends - Generative AI agents are the fastest-growing segment in the legal AI software market, automating complex legal tasks with high accuracy and speed [7]. - Contract drafting and review is identified as the fastest-growing application due to the increasing complexity and volume of contracts across various industries [8]. Opportunities - The legal AI market presents significant opportunities for automating routine tasks, enhancing legal research, and improving compliance and risk management [9]. - Key opportunity areas in the U.S. market include generative AI for legal research and drafting, contract intelligence, compliance automation, and predictive analytics in litigation [12][15]. Competitive Landscape - Major companies in the legal AI software market include LexisNexis, Thomson Reuters, Sirion, Wolters Kluwer, and Relativity, among others [5]. - The U.S. legal industry is a prime market for AI-driven transformation, with significant investments from companies like Thomson Reuters and LexisNexis in AI-powered legal solutions [11].

Thomson Reuters Second Quarter Report 2025 Management's Discussion and Analysis EXHIBIT 99.1 This management's discussion and analysis is designed to provide you with a narrative explanation through the eyes of our management of how we performed, as well as information about our financial condition and future prospects. As this management's discussion and analysis is intended to supplement and complement our financial statements, we recommend that you read this in conjunction with our consolidated interim f ...