Financial Data and Key Metrics Changes - Total company organic revenues rose 7% with the big three segments growing by 9% [5][9] - Adjusted EBITDA increased 5% to $678 million, reflecting a 70 basis point margin increase to 37.8% [9][29] - Adjusted EPS was $0.87 for the quarter versus $0.85 in the prior year period [29] Business Line Data and Key Metrics Changes - Legal organic revenue grew 8%, driven by Westlaw and co counsel [10][26] - Corporates organic revenue grew 9%, with key contributions from legal, tax, and risk portfolios [10][26] - Tax and accounting organic revenues grew 11%, driven by Latin American and US businesses [10][26] - Reuters News organic revenues rose 5%, with all major lines contributing [10][27] - Global print organic revenues declined 7% [10][27] Market Data and Key Metrics Changes - The percentage of annualized contract value from GenAI-enabled products increased to 22%, up from 20% last quarter [28] - The company expects organic revenue growth of 7% to 7.5% for the full year 2025 [31] Company Strategy and Development Direction - The company continues to invest heavily in innovation, particularly in AI capabilities [6][12] - A balanced capital allocation approach is maintained, with a focus on strategic M&A opportunities [8][80] - The company aims to leverage its capital capacity of $10 billion through 2027 for growth [8][80] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full year 2025 outlook for organic revenue, adjusted EBITDA margin, and free cash flow [5][31] - The company is optimistic about the adoption of AI technologies among clients, with a significant portion showing interest [105][110] Other Important Information - The company repaid a $1 billion maturing bond issue and remains well-capitalized with net leverage of only 0.5 times [8] - The company is committed to returning 75% of free cash flow to shareholders, with potential share buybacks discussed [81][82] Q&A Session Summary Question: Can you provide a sense of the percentage of workflow currently being automated? - Management indicated that automation is still relatively modest in legal but more significant in tax and accounting, with ongoing efforts to automate ancillary tasks [39][40] Question: How does the company view its competitive position in the market? - Management believes they are ahead of competitors in tax and accounting innovations and highlighted the unique capabilities of their deep research technology [48][51] Question: What is the company's approach to managing margins and expenses? - Management explained that margin performance was driven by good operating leverage and timing of expenses, with confidence in maintaining guidance despite seasonal factors [58][60] Question: How is the company thinking about excess capital and potential returns to shareholders? - Management emphasized strategic M&A as a top priority for capital deployment, with ongoing discussions about share buybacks and dividend growth [80][81] Question: What is the adoption rate of GenAI-enabled products across different segments? - Management noted that there is significant interest in AI offerings across client cohorts, with varying levels of adoption [105][110]

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]