Financial Data and Key Metrics Changes - Full-year organic revenue grew by 7%, driven by a 9% growth for the big three segments [9][12] - Adjusted EBITDA margin expanded by 100 basis points to 39.2%, meeting the company's outlook [9][14] - Free cash flow for 2025 was $1.95 billion, slightly ahead of expectations [9][24] - Adjusted earnings per share for the year was $3.92, compared to $3.77 per share in the prior year [14] Business Line Data and Key Metrics Changes - Legal organic revenue grew by 9%, driven by Westlaw and CoCounsel [12][21] - Corporate segment's organic revenue also grew by 9%, supported by legal, tax, and risk portfolios [12][21] - Tax, audit, and accounting organic revenues increased by 11%, driven by UltraTax and CoCounsel [12][13] - Reuters' organic revenues rose by 5%, primarily due to growth in the agency business [12][14] Market Data and Key Metrics Changes - The percentage of annualized contract value (ACV) from GenAI-enabled products increased to 28%, up from 24% in the previous quarter [22] - Global print organic revenues declined by 6% year-on-year, in line with expectations [12][14] Company Strategy and Development Direction - The company aims to leverage proprietary content and deep domain expertise alongside AI capabilities to deliver specialized workflows [8][10] - The strategy includes aggressive innovation and a focus on AI-driven solutions, particularly in legal workflows [8][10] - The company plans to continue its balanced capital allocation approach, including annual dividend growth and strategic M&A [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term growth potential, reaffirming a 2026 outlook for organic revenue growth of 7.5%-8% [11][27] - The company anticipates healthy margin expansion and strong free cash flow while continuing to invest in innovation [11][27] - Management noted that AI-driven workflows present a significant opportunity, particularly in legal services [8][10] Other Important Information - The company executed a $1 billion share repurchase program and announced a 10% increase in its annual common stock dividend [11][25] - The company invested $850 million in M&A, completing four strategic acquisitions [10][26] Q&A Session Summary Question: What drove the slowdown in legal recurring growth from Q3 to Q4? - Management indicated that the slowdown was associated with the government business, which is expected to slow further in Q1 due to cancellations [34][36] Question: What is the moat around Westlaw and Practical Law? - Management highlighted the unique content sets and deep domain expertise as key differentiators that are difficult for competitors to replicate [39][41] Question: How are share buybacks prioritized in the current environment? - Management acknowledged that share repurchases are attractive at current levels and will continue discussions with the board regarding this [45][46] Question: What is the size and adoption progress of CoCounsel? - Management noted that while specific dollar figures are not provided, the reception of CoCounsel has been encouraging across various law firm sizes [51][53] Question: How does the company plan to monetize AI product innovations? - Management stated that they do not price based on headcount and aim to price based on value, benefiting from increased efficiency in legal and tax departments [66][67]

Financial Data and Key Metrics Changes - Full-year organic revenue grew 7%, driven by 9% growth for the big three segments [9][12] - Adjusted EBITDA margin expanded by 100 basis points to 39.2% [9][13] - Free cash flow for 2025 was $1.95 billion, slightly ahead of expectations [9][24] - Adjusted earnings per share for the year was $3.92, compared to $3.77 per share in the prior year [13] Business Line Data and Key Metrics Changes - Legal organic revenue grew 9%, driven by Westlaw and CoCounsel [12][21] - Corporate organic revenue also grew 9%, supported by legal, tax, and risk portfolios [12][21] - Tax, audit, and accounting organic revenues increased by 11%, driven by UltraTax and CoCounsel [12][21] - Reuters' organic revenues rose 5%, primarily from the agency business and a contract with LSEG [12][21] Market Data and Key Metrics Changes - The percentage of annualized contract value (ACV) from GenAI-enabled products increased to 28%, up from 24% [22] - Global print organic revenues declined 6% year-on-year [12][21] Company Strategy and Development Direction - The company is focused on leveraging proprietary content and deep domain expertise to deliver specialized AI workflows [7][8] - Continued innovation is emphasized, with several foundational product launches planned for 2026 [9][10] - The strategy includes a balanced capital allocation approach, with a commitment to annual dividend growth and strategic M&A [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the value of their content and expertise for delivering professional-grade AI solutions [5][6] - The outlook for 2026 includes organic revenue growth of 7.5%-8%, with approximately 9.5% for the big three segments [11][27] - Expected margin expansion and strong free cash flow are anticipated, even with continued investment in innovation [11][28] Other Important Information - The company executed a $1 billion share repurchase program and announced a 10% increase in the annual common stock dividend [11][26] - The company has an estimated $11 billion of capital capacity through 2028, positioning it for aggressive and opportunistic investments [11][25] Q&A Session Questions and Answers Question: What drove the slowdown in legal recurring growth from Q3 to Q4? - The slowdown is associated with the government business, which is expected to slow in Q1 due to cancellations [34][35] Question: What is the moat around Westlaw and Practical Law? - The moat is based on unique content sets created by skilled lawyers and deep domain expertise, making it difficult for competitors to replicate [38][40] Question: How are share buybacks prioritized in the current environment? - Share repurchases are considered attractive at current levels, and the company plans to return 75% of free cash flow to investors in 2026 [46][47] Question: What is the size and adoption progress of CoCounsel? - The reception of CoCounsel Legal has been encouraging among various law firms, and the company is optimistic about its growth [51][53] Question: How does the company plan to monetize AI product innovations? - The company does not price based on headcount and aims to price based on the value delivered by AI tools [67][68]

REUTERS/Michaela Rehle Thomson Reuters 2025 Fourth -Quarter Results February 5, 2026 Agenda • Welcome / Introduction Gary Bisbee • Fourth -Quarter & Full -Year 2025 Highlights Steve Hasker Reimagining How We Work: Leveraging AI Internally • Q & A 2 Special Note Special Note Regarding Forward - Looking Statements, Material Assumptions and Material Risks This presentation consists of these slides and the associated remarks and comments, which are related and intended to be pres ented and understood together. ...

Core Insights - Thomson Reuters Corporation (NASDAQ:TRI) is recognized as one of the promising stocks in the QQQ index according to hedge funds, with an Outperform rating reaffirmed by CIBC's Robert Bek, although the price target has been lowered from $198 to $183 [1] Group 1: Product Developments - To enhance its compliance sector, Thomson Reuters launched ONESOURCE Sales and Use Tax AI on January 16, aimed at automating sales and use tax compliance for US firms [2] - The company made significant advancements in legal AI by introducing CoCounsel Legal in the UK on January 26, integrating agentic AI capabilities into its Westlaw and Practical Law offerings, following its US launch last year [3] Group 2: Company Operations - Thomson Reuters operates as a content and technology company across various regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, with five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print [4]

Core Insights - Thomson Reuters Corporation (NASDAQ:TRI) is recognized as one of the 13 Best Canadian Dividend Stocks for long-term investment [1] - Scotiabank has lowered its price target for Thomson Reuters to $189 from $200 while maintaining an Outperform rating, citing concerns over competition from AI startups and pressure in the government solutions division [2] - The company reported third-quarter 2025 revenue of $1.78 billion, a 3.36% increase year-over-year, and operating profit of $593 million, up 43% year-over-year [3] - Thomson Reuters' major segments achieved organic revenue growth of 9%, contributing to 82% of total revenue, driven by advancements in AI offerings [4] - The company provides specialized information-enabled software and tools for professionals, supported by its global news service, Reuters [5] Financial Performance - In Q3 2025, Thomson Reuters generated $1.78 billion in revenue, exceeding expectations by $2.8 million, with a year-over-year growth of 3.36% [3] - Operating profit for the quarter reached $593 million, reflecting a significant increase of 43% year-over-year, aided by the sale of a minority stake in the Elite business [3] - Operating cash flow for the quarter totaled $704 million [3] Business Segments - The Big 3 segments of Thomson Reuters delivered organic revenue growth of 9% and accounted for 82% of total revenue [4] - The company highlighted the positive impact of its agentic AI offerings, such as CoCounsel Legal and CoCounsel for tax, audit, and accounting, which are transforming professional workflows [4]

Core Insights - Thomson Reuters reported a 3% increase in total revenues for Q3 2025, driven by a 7% growth in organic revenues, particularly in its "Big 3" segments: Legal Professionals, Corporates, and Tax & Accounting Professionals [1][4][23] - The company emphasized its AI-driven innovation strategy, which is reshaping professional workflows and enhancing customer capabilities [1][4] - A robust capital position allows the company to pursue further inorganic growth opportunities while maintaining a focus on long-term investment strategies [1] Financial Performance - Total revenues reached $1.782 billion in Q3 2025, up from $1.724 billion in Q3 2024, marking a 3% increase [2][3] - Operating profit surged by 43% to $593 million, attributed to higher revenues and an operating gain from the sale of a minority equity interest [2][3] - Diluted earnings per share (EPS) increased to $0.94, a 40% rise compared to $0.67 in the previous year [2][3] Revenue Breakdown - Recurring revenues accounted for 83% of total revenues, growing by 3%, while transaction revenues increased by 12% [3][23] - The "Big 3" segments collectively contributed to a 9% organic revenue growth, representing 82% of total revenues [5][23] - Global Print revenues declined by 4%, impacting overall revenue growth [3][5] Segment Highlights - Legal Professionals segment saw a 2% decrease in revenues, but organic growth was 9%, driven by products like Westlaw and CoCounsel [9][10] - Corporates segment revenues increased by 10%, with an 8% rise in adjusted EBITDA [12][13] - Tax & Accounting Professionals segment revenues rose by 15%, with a 10% organic growth rate, reflecting the impact of acquisitions [14][15] Cash Flow and Shareholder Returns - Net cash provided by operating activities decreased by 7% to $704 million, while free cash flow fell by 11% to $526 million [2][6] - The company completed a $1.0 billion share repurchase program, enhancing shareholder value [4][35] - A quarterly dividend of $0.595 per share was announced, marking the 32nd consecutive year of dividend increases [34] Future Outlook - The company reaffirmed its full-year 2025 outlook, expecting total revenue growth and organic revenue growth to trend towards the lower end of their respective ranges [24][26] - For 2026, the company anticipates adjusted EBITDA margin expansion of approximately 100 basis points and free cash flow of around $2.1 billion [30][31]

Core Insights - NetDocuments announced a partnership with Thomson Reuters to integrate CoCounsel Legal into its ndConnect interoperability program, enhancing legal professionals' workflows with AI and automation while ensuring security and governance [1][4][6] Group 1: Partnership Details - The integration allows shared customers to utilize NetDocuments' AI and automation features alongside CoCounsel Legal's capabilities in legal research, document analysis, and drafting [1][4] - This partnership is part of the expanding ndConnect ecosystem, which aims to create secure and connected experiences with legal AI [3][6] Group 2: Features and Benefits - Legal professionals can conduct research using Westlaw and Practical Law, draft documents, and analyze them while maintaining document integrity and metadata within NetDocuments [4][5] - The ndConnect program ensures that every integration respects user identity, document-level access, and organizational governance policies [6][7] Group 3: Industry Context - The partnership reflects a broader trend towards interoperable and secure legal AI ecosystems, addressing the need for innovation without compromising data governance and lawyer satisfaction [6][7] - NetDocuments has been a trusted cloud-native document management system for over 25 years, supporting over 7,000 organizations globally [9]

Industry Overview - The Zacks Business Services industry includes a variety of services such as specialty rentals, supply chain solutions, e-commerce support, technology services, and business transformation solutions, with a focus on digital transformation and technology integration in response to the pandemic [2] - The industry has shown consistent demand for its services, with revenues, operating income, and cash flows surpassing pre-pandemic levels, indicating financial strength and reliable dividend payouts [3] Future Trends - The rapid advancement of artificial intelligence and automation is transforming service delivery, promising efficiency and cost reduction, but also presenting challenges like workforce displacement [4] - The latest Services PMI indicates stagnation in U.S. services activity, with the index at 50% in September, reflecting stalled expansion momentum due to inflationary pressures and cautious business sentiment [5] Market Performance - The Zacks Business Services industry has underperformed compared to the broader sector and the S&P 500, declining 7.5% over the past 12 months, while the S&P 500 grew by 22.7% [8] - The industry is currently trading at a forward 12-month P/E ratio of 19.73X, lower than the S&P 500's 24.03X and the sector's 20.42X, with historical trading ranges between 26.24X and 28.8X over the past five years [11] Stock Recommendations - Rentokil Initial plc is positioned for growth, benefiting from improved sales execution and a digital marketing strategy, with ongoing expansion and cost efficiency initiatives enhancing its competitive position [14][15] - Thomson Reuters Corporation demonstrates operational discipline and innovation, focusing on AI-driven solutions to strengthen its leadership in professional information services [17][18]

Financial Performance - Thomson Reuters' Q2 2025 revenues increased by 3% to $1.785 billion[12], with organic revenue growth of 7%[11, 12, 14] and recurring revenue growth of 9%[11, 14] - Adjusted EBITDA for Q2 2025 increased by 5% to $678 million[12], with an adjusted EBITDA margin of 37.8%[12], up 70 bps[12] - Adjusted EPS for Q2 2025 increased by 2% to $0.87[12] - Free cash flow for Q2 2025 increased by 4% to $566 million[12] Segment Performance - "Big 3" (Legal, Corporates, and Tax & Accounting) organic revenue growth was 9%[11, 15, 29, 30] - Legal Professionals revenues decreased by 2% to $709 million[14, 29, 30], but experienced organic growth of 8%[14, 29, 30] - Corporates revenues increased by 7% to $472 million[14, 29, 30], with organic growth of 9%[14, 29, 30] - Tax & Accounting Professionals revenues increased by 11% to $277 million[14, 29, 30], with organic growth of 11%[14, 29, 30] Innovation and AI - Agentic AI launches continue, including CoCounsel for Tax, Audit & Accounting and CoCounsel Legal[11, 18] - The company estimates ~$10 billion of capital capacity by 2027[11] Outlook - FY 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow reaffirmed[11, 35] - Free cash flow is expected to be ~$1.9 billion[35]

Core Insights - Thomson Reuters reported a 3% increase in total revenues for Q2 2025, reaching $1,785 million, driven by a 3% growth in recurring revenues and a 5% increase in transaction revenues, despite a 7% decline in Global Print revenues [2][3][5] - The company launched new AI solutions, including CoCounsel Legal, aimed at enhancing its offerings in legal, tax, and accounting markets [1][5] - The company maintained its full-year 2025 outlook for organic revenue growth, adjusted EBITDA margin, and free cash flow [5][27] Financial Performance - Operating profit for Q2 2025 increased by 5% to $436 million, attributed to higher revenues and other operating gains [2][4] - Diluted earnings per share (EPS) decreased to $0.69, down 63% from $1.86 in the prior year, primarily due to currency losses and a significant non-cash tax benefit in the previous year [2][4] - Adjusted EBITDA rose by 5% to $678 million, with an adjusted EBITDA margin of 37.8%, up from 37.1% [2][4][5] Revenue Breakdown - The "Big 3" segments (Legal Professionals, Corporates, and Tax & Accounting Professionals) collectively accounted for 82% of total revenues, with organic revenue growth of 9% [6][8] - Legal Professionals segment revenues decreased by 2% to $709 million, while organic revenue growth was 8% [11][12] - Corporates segment revenues increased by 7% to $472 million, with organic growth of 9% [15][25] - Tax & Accounting Professionals segment revenues rose by 11% to $277 million, with organic growth of 11% [16][17] Cash Flow and Capital Allocation - Net cash provided by operating activities increased by $41 million to $746 million, reflecting higher operating profit [7][21] - Free cash flow for Q2 2025 increased by $25 million to $566 million [7] - The company repaid Canadian $1.4 billion (U.S. $1.0 billion) in notes with cash on hand in May 2025 [33] Outlook - The company expects approximately 7% organic revenue growth and an adjusted EBITDA margin of around 36% for Q3 2025 [28] - The full-year 2025 outlook remains unchanged, with total revenue growth projected at 3.0% to 3.5% and organic revenue growth at 7.0% to 7.5% [30][27]