Earnings release
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Exhibit 99.1 Thomson Reuters Reports Second-Quarter 2025 Results TORONTO, August 6, 2025 – Thomson Reuters (TSX/Nasdaq: TRI) today reported results for the second quarter ended June 30, 2025: • Good revenue momentum continued in the second quarter • Total company revenues up 3% / organic revenues up 7% • Organic revenues up 9% for the “Big 3” segments (Legal Professionals, Corporates and Tax & Accounting Professionals) • Maintained full-year 2025 outlook for organic revenue growth, adjusted EBITDA margin and free cash flow • Repaid Canadian $1.4 billion notes (U.S. $1.0 billion) with cash on hand in May 2025 • Launching new agentic AI solutions leveraging Thomson Reuters content and tools for our legal, tax and accounting markets “We saw good momentum continue in the second quarter, with revenue in-line and margins modestly ahead of our expectations”, saidSteve Hasker, President and CEO of Thomson Reuters. “We remain focused on delivering product innovation across our portfolio, asexemplified by the launch of CoCounsel Legal, including Deep Research on Westlaw and guided workflows, and CoCounsel for tax, auditand accounting. With these advanced agentic AI offerings, we continue to leverage our authoritative content and deep expertise to bringtransformative professional-grade AI solutions to our markets.” Mr. Hasker added, “As we look ahead, we remain committed to a balanced capital allocation approach and continue to assess inorganicopportunities as they arise, while focusing on delivering sustained value creation through a long-term investment strategy.” Consolidated Financial Highlights—Three Months Ended June 30 Three Months Ended June 30,(Millions of U.S. dollars, except for EPS)(unaudited) 2025 2024 Change IFRS Financial Measures(1) Revenues $1,785 $1,740 3% Operating profit $ 436 $ 415 5% Diluted earnings per share (EPS) $ 0.69 $ 1.86 -63% Net cash provided by operating activities $ 746 $ 705 5% 2025 2024 Change Change atConstantCurrency Non-IFRS Financial Measures(1) Revenue growth in constant currency 2% Organic revenue growth 7% Adjusted EBITDA $ 678 $ 646 5% 5% Adjusted EBITDA margin 37.8% 37.1% 70bp 70bp Adjusted EPS $ 0.87 $ 0.85 2% 2% Free cash flow $ 566 $ 541 4% (1) In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS financial measuresas supplemental indicators of its operating performance and financial position. See the “Non-IFRS Financial Measures” section and the tables appended to thisnews release for additional information on these and other non-IFRS financial measures, including how they are defined and reconciled to the most directlycomparable IFRS measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 2 of 24 Revenues increased 3% due to 3% growth in recurring revenues (82% of total revenues) and 5% growth in transactions revenues, partlyoffset by a 7% decline in Global Print. Total company revenue growth was negatively impacted by net acquisitions and disposals of 5%.Foreign currency had a slightly positive impact on revenue growth. o Organic revenues increased 7% reflecting 9% growth in recurring revenues, 7% growth in transactions revenues and a 7%decline in Global Print. o The company’s “Big 3” segments reported organic revenue growth of 9% and collectively comprised 82% of total revenues. Operating profit increased 5%, primarily due to higher revenues and a benefit from other operating gains reflected in the current-yearperiod compared to other operating losses in the prior-year period. These items were partly offset by higher operating expenses andamortization of computer software. o Adjusted EBITDA, which excludes other operating gains and losses, amortization of computer software, as well as otheradjustments, increased 5% and the related margin increased to 37.8% from 37.1% in the prior-year period, primarily due tohigher operating leverage. Diluted EPS decreased to $0.69 per share compared to $1.86 per share in the prior-year period. The current-year period includedcurrency losses reflected in other finance costs or income. The prior-year period included a $468 million or a $1.04 per share non-cash taxbenefit related to tax legislation enacted in Canada and an increase in value of the company’s former investment in London StockExchange Group (LSEG). o Adjusted EPS, which excludes the currency losses, the non-cash tax benefit and the increase in value of LSEG, as well asother adjustments, increased to $0.87 per share compared to $0.85 per share in the prior-year period, primarily due to higheradjusted EBITDA, partly offset by higher income tax expense and amortization of internally developed software. Net cash provided by operating activities increased by $41 million primarily due to cash benefits from higher operating profit. o Free cash flow increased by $25 million as higher net cash provided by operating activities was partly offset by higher capitalexpenditures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 3 of 24 Highlights by Customer Segment – Three Months Ended June 30 (Millions of U.S. dollars)(unaudited) Three Months Ended June 30, Change 2025 2024 Total Constant Currency(1) Organic(1)(2) Revenues Legal Professionals $ 709 $ 727 -2% -3% 8% Corporates 472 442 7% 6% 9% Tax & Accounting Professionals 277 250 11% 13% 11% “Big 3” Segments Combined(1) 1,458 1,419 3% 3% 9% Reuters News 218 205 7% 5% 5% Global Print 114 123 -7% -7% -7% Eliminations/Rounding (5) (7) Total Revenues $1,785 $1,740 3% 2% 7% Adjusted EBITDA(1) Legal Professionals $ 339 $ 327 4% 3% Corporates 169 163 3% 3% Tax & Accounting Professionals 113 91 22% 24% “Big 3” Segments Combined(1) 621 581 7% 6% Reuters News 45 51 -11% -10% Global Print 41 43 -5% -5% Corporate costs (29) (29) n/a n/a Total Adjusted EBITDA $ 678 $ 646 5% 5% Adjusted EBITDA Margin(1) Legal Professionals 47.8% 45.0% 280bp 250bp Corporates 35.7% 36.8% -110bp -120bp Tax & Accounting Professionals 39.3% 36.8% 250bp 240bp “Big 3” Segments Combined(1) 42.3% 41.0% 130bp 110bp Reuters News 20.8% 24.8% -400bp -360bp Global Print 36.0% 35.2% 80bp 50bp Total Adjusted EBITDA Margin 37.8% 37.1% 70bp 70bp (1) See the “Non-IFRS Financial Measures” section and the tables appended to this news release for additional information on these and other non-IFRS financialmeasures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue.(2) Computed for revenue growth only.n/a: not applicable Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (whichexcludes the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure performance.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 4 of 24 Legal Professionals Revenues decreased 3% substantially due to the impact from the disposal of FindLaw, which negatively impacted recurring andtransactions revenues. Organic revenue growth was 8%. o Recurring revenues decreased 2% (97% of total, increased 9% organic). Organic revenue growth was primarily driven byWestlaw, CoCounsel, CoCounsel Drafting, Practical Law, CLEAR, and the segment’s international businesses. o Transactions revenues decreased 22% (3% of total, decreased 7% organic). Adjusted EBITDA increased 4% to $339 million. o The margin increased to 47.8% from 45.0% primarily reflecting the disposal of the FindLaw business and operating leverage. Corporates Revenues increased 6% and organic revenue growth was 9%. o Recurring revenues increased 8% (88% of total, increased 9% organic). Organic revenue growth was primarily driven byIndirect and Direct Tax, Pagero, Practical Law, and the segment’s international businesses. o Transactions revenues decreased 2% (12% of total, increased 4% organic). Organic revenue growth was primarily driven byincreases in Indirect Tax, Confirmation, SurePrep and the segment’s international businesses. Adjusted EBITDA increased 3% to $169 million. o The margin decreased to 35.7% from 36.8% primarily reflecting higher technology and product development costs. Tax & Accounting Professionals Revenues increased 13%, including the acquisition impact of SafeSend which was reflected in transactions revenues. Organic revenuegrowth was 11%. o Recurring revenues increased 9% (69% of total, all organic). Organic revenue growth was primarily driven by the segment’sLatin America business and its tax products. o Transactions revenues increased 23% (31% of total, increased 14% organic) primarily driven by SurePrep, SafeSend,UltraTax and Confirmation. Adjusted EBITDA increased 22% to $113 million. o The margin increased to 39.3% from 36.8%, primarily reflecting operating leverage on higher revenue growth and the timing ofcertain expenses. The Tax & Accounting Professionals segment is the company’s most seasonal business with approximately 60% of full-year revenuestypically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in thefirst and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 5 of 24 Reuters News Revenues increased 5%, all organic, primarily due to higher Professional and Agency revenues and a contractual price increase from ournews agreement with the Data & Analytics business of LSEG. Adjusted EBITDA decreased 11% to $45 million. o The margin decreased to 20.8% from 24.8% primarily due to higher editorial coverage costs and investments across thebusiness. Global Print Revenues decreased 7%, all organic, driven by lower shipment volumes and the migration of customers from Global Print to Westlaw. Adjusted EBITDA decreased 5% to $41 million, and the margin increased to 36.0% from 35.2%. Corporate Costs Corporate costs were $29 million in both the current and prior-year periods. Consolidated Financial Highlights – Six Months Ended June 30 Six Months Ended June 30,(Millions of U.S. dollars, except for EPS)(unaudited) 2025 2024 Change IFRS Financial Measures(1) Revenues $3,685 $3,625 2% Operating profit $ 999 $ 972 3% Diluted EPS $ 1.65 $ 2.92 -43% Net cash provided by operating activities $1,191 $1,137 5% 2025 2024 Change Change at Constant Currency Non-IFRS Financial Measures(1) Revenue growth in constant currency 2% Organic revenue growth 7% Adjusted EBITDA $1,487 $1,452 2% 2% Adjusted EBITDA margin 40.1% 40.0% 10bp -10bp Adjusted EPS $ 2.00 $ 1.97 2% 2% Free cash flow $ 843 $ 812 4% (1) In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental indicators of its operatingperformance and financial position. See the “Non-IFRS Financial Measures” section and the tables appended to this news release for additional information onthese and other non-IFRS financial measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 6 of 24 Revenues increased 2% due to 2% growth in recurring revenues (79% of total revenues) and 1% growth in transactions revenues, partlyoffset by a 7% decline in Global Print. Total company revenue growth was negatively impacted by net acquisitions and disposals of 5%.Foreign currency had no impact on revenue growth. o Organic revenues increased 7% reflecting 9% growth in recurring revenues, 3% growth in transactions revenues and a 6%decline in Global Print. o The company’s “Big 3” segments reported organic revenue growth of 9% and collectively comprised 83% of total revenues. Operating profit increased 3%, primarily due to higher revenues and a benefit from other operating gains reflected in the current-yearperiod compared to other operating losses in the prior-year period. These items were partly offset by higher operating expenses andamortization of computer software. o Adjusted EBITDA, which excludes other operating gains and losses, amortization of computer software, as well as otheradjustments, increased 2% and the related margin increased slightly to 40.1% from 40.0%. Foreign currency contributed 20basis points to the year-over-year change in adjusted EBITDA margin. Diluted EPS decreased to $1.65 per share compared to $2.92 per share in the prior-year period. The current-year period includedcurrency losses reflected in other finance costs or income. The prior-year period included a $468 million or $1.04 per share non-cash taxbenefit related to tax legislation enacted in Canada and an increase in value of the company’s former investment in LSEG. o Adjusted EPS, which excludes the currency losses, the non-cash tax benefit and the increase in value of LSEG, as well asother adjustments, increased to $2.00 per share compared to $1.97 per share in the prior-year period, primarily due to higheradjusted EBITDA, partly offset by higher amortization of internally developed software. Net cash provided by operating activities increased by $54 million primarily due to cash benefits from higher operating profit. o Free cash flow increased by $31 million as higher net cash provided by operating activities was partly offset by higher capitalexpenditures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 7 of 24 Highlights by Customer Segment – Six Months Ended June 30 (Millions of U.S. dollars)(unaudited) Six Months Ended June 30, Change 2025 2024 Total Constant Currency(1) Organic(1)(2) Revenues Legal Professionals $1,402 $1,448 -3% -3% 8% Corporates 1,013 949 7% 7% 9% Tax & Accounting Professionals 637 578 10% 12% 11% “Big 3” Segments Combined(1) 3,052 2,975 3% 3% 9% Reuters News 414 415 0% -1% -1% Global Print 230 247 -7% -6% -6% Eliminations/Rounding (11) (12) Total Revenues $3,685 $3,625 2% 2% 7% Adjusted EBITDA(1) Legal Professionals $ 675 $ 669 1% 0% Corporates 382 356 7% 6% Tax & Accounting Professionals 323 272 19% 20% “Big 3” Segments Combined(1) 1,380 1,297 6% 6% Reuters News 84 111 -24% -25% Global Print 85 90 -6% -6% Corporate costs (62) (46) n/a n/a Total Adjusted EBITDA $1,487 $1,452 2% 2% Adjusted EBITDA Margin(1) Legal Professionals 48.1% 46.2% 190bp 150bp Corporates 37.7% 37.3% 40bp 0bp Tax & Accounting Professionals 49.1% 47.1% 200bp 160bp “Big 3” Segments Combined(1) 44.9% 43.5% 140bp 100bp Reuters News 20.4% 26.6% -620bp -630bp Global Print 36.9% 36.7% 20bp -10bp Total Adjusted EBITDA Margin 40.1% 40.0% 10bp -10bp (1) See the “Non-IFRS Financial Measures” section and the tables appended to this news release for additional information on these and other non-IFRS financialmeasures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue.(2) Computed for revenue growth only.n/a: not applicable
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 8 of 24 2025 Outlook The company maintained its 2025 full-year outlook announced on February 6, 2025, except as follows: • Depreciation and amortization of computer software has been updated to reflect lower amortization of internally developedsoftware than previously forecasted. Our full-year adjusted depreciation and amortization guidance is now $825 million to$835 million, with $625 million to $635 million related to depreciation and amortization of internally developed software. • Net interest expense is expected to be approximately $130 million, which is below our previous guidance of approximately$150 million due to higher than previously forecasted interest rates benefiting interest income. The company’s outlook for 2025 in the table below assumes constant currency rates and incorporates the recent SafeSend acquisitionand the disposals of FindLaw and other non-core businesses, but excludes the impact of any future acquisitions or dispositions that mayoccur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipatedperformance of its businesses. The company expects its third-quarter 2025 organic revenue growth to be approximately 7% and its adjusted EBITDA margin to beapproximately 36%. The company’s 2025 outlook is forward-looking information that is subject to risks and uncertainties (see “Special Note RegardingForward-Looking Statements, Material Risks and Material Assumptions”). In particular, the company continues to operate in an uncertainmacroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationarybackdrop. Any worsening of the global economic or business environment, among other factors, could impact the company’s ability toachieve its outlook.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 9 of 24 Reported Full-Year 2024 Results and Full-Year 2025 Outlook Total Thomson Reuters FY 2024 Reported FY 2025Outlook2/6/2025 FY 2025Outlook8/6/2025 Total Revenue Growth 7% 3.0 - 3.5%(2) Unchanged Organic Revenue Growth(1) 7% 7.0 - 7.5% Unchanged Adjusted EBITDA Margin(1) 38.2% ~39% Unchanged Corporate Costs $105 million $120 - $130 million Unchanged Free Cash Flow(1) $1.8 billion ~$1.9 billion Unchanged Accrued Capex as % of Revenue(1) 8.4% ~8% Unchanged Depreciation & Amortization of Computer Software Depreciation & Amortization of Internally Developed SoftwareAmortization of Acquired Software $731 million $584 million$147 million $835 - $855 million $635 - $655 million ~$200 million $825 - $835 million $625 - $635 million Unchanged Net Interest Expense $125 million ~$150 million ~$130 million Effective Tax Rate on Adjusted Earnings(1) 17.6% ~19% Unchanged “Big 3” Segments(1) FY 2024 Reported FY 2025Outlook2/6/2025 FY 2025Outlook8/6/2025 Total Revenue Growth 8% ~4%(2) Unchanged Organic Revenue Growth 9% ~9% Unchanged Adjusted EBITDA Margin 42.1% ~43% Unchanged (1) Non-IFRS financial measures. See the “Non-IFRS Financial Measures” section below as well as the tables and footnotes appended to this news release for moreinformation.(2) Total revenue growth reflects the impact of the disposals of FindLaw and other non-core businesses in December 2024. The information in this section is forward-looking. Actual results, which will include the impact of currency and futureacquisitions and dispositions completed during 2025, may differ materially from the company’s 2025 outlook. The information inthis section should also be read in conjunction with the section below entitled “Special Note Regarding Forward-LookingStatements, Material Risks and Material Assumptions.”
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 10 of 24 Debt Repayment In May 2025, the company repaid its Canadian $1.4 billion (U.S. $1.0 billion) 2.239% notes upon maturity with cash on hand. Dividends and Common Shares Outstanding In February 2025, the company announced a 10% or $0.22 per share annualized increase in the dividend to $2.38 per common share,representing the 32nd consecutive year of dividend increases and the fourth consecutive 10% increase. A quarterly dividend of $0.595 pershare is payable on September 10, 2025 to common shareholders of record as of August 19, 2025. As of August 4, 2025, Thomson Reuters had approximately 450.7 million common shares outstanding. Thomson Reuters Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people andorganizations need to make the right decisions. The company serves professionals across legal, tax, audit, accounting, compliance,government, and media. Its products combine highly specialized software and insights to empower professionals with the data,intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency.Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit tr.com. NON-IFRS FINANCIAL MEASURES Thomson Reuters prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued bythe International Accounting Standards Board (IASB). This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financialmeasures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earningsand the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, netdebt and leverage ratio of net debt to adjusted EBITDA, selected measures excluding the impact of foreign currency, changes in revenuescomputed on an organic basis as well as all financial measures for the “Big 3” segments. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial positionas well as for internal planning purposes and the company’s business outlook. Additionally, Thomson Reuters uses non-IFRS measuresas the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS andtherefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed asalternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined andreconciled to the most directly comparable IFRS measures in the appended tables.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 11 of 24 The company’s outlook contains various non-IFRS financial measures. The company believes that providing reconciliations of forward-looking non-IFRS financial measures in its outlook would be potentially misleading and not practical due to the difficulty of projecting itemsthat are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, forpurposes of its outlook only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRSmeasures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) thetranslation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related tointercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operatinggains and losses that generally arise from business transactions that the company does not currently anticipate. ROUNDING Other than EPS, the company reports its results in millions of U.S. dollars, but computes percentage changes and margins using wholedollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, andgrowth components may not total due to rounding. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS, MATERIAL RISKS AND MATERIAL ASSUMPTIONS Certain statements in this news release, including, but not limited to, statements in Mr. Hasker’s comments and the “2025 Outlook” sectionare forward-looking. The words “will”, “expect”, “believe”, “target”, “estimate”, “could”, “should”, “intend”, “predict”, “project” and similarexpressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-lookingstatements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of theother events described in any forward-looking statement will materialize. Forward-looking statements are subject to a number of risks,uncertainties and assumptions that could cause actual results or events to differ materially from current expectations. Many of these risks,uncertainties and assumptions are beyond the company’s control and the effects of them can be difficult to predict. Some of the material risk factors that could cause actual results or events to differ materially from those expressed in or implied byforward-looking statements in this news release include, but are not limited to, those discussed on pages 16-27 in the “Risk Factors”section of the company’s 2024 annual report. These and other risk factors are discussed in materials that Thomson Reuters fromtime-to-time files with, or furnishes to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission(SEC). Thomson Reuters’ annual and quarterly reports are also available in the “Investor Relations” section of tr.com. The company’s business outlook is based on information currently available to the company and is based on various external and internalassumptions made by the company in light of its experience and perception of historical trends, current conditions and expected futuredevelopments, as well as other factors that the company believes are appropriate under the circumstances. Material assumptions andmaterial risks may cause actual performance to differ from the company’s expectations underlying its business outlook. In particular, theglobal economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomicbackdrop and ongoing geopolitical risks. The company’s business outlook assumes that uncertain macroeconomic and geopoliticalconditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer thanexpected and any worsening of the global economic or business environment could impact the company’s ability to achieve its outlook andaffect its results and other expectations. For a discussion of material assumptions and material risks related to the company’s 2025outlook see pages 16-17 of the company’s first-quarter management’s discussion and analysis (MD&A) for the period ended March 31,2025. The company’s quarterly MD&A and annual report was filed with, or furnished to, the Canadian securities regulatory authorities andthe U.S. SEC and are also available in the “Investor Relations” section of tr.com. The company has provided an outlook for the purpose of presenting information about current expectations for the period presented. Thisinformation may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statementswhich reflect expectations only as of the date of this news release. Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward-lookingstatements.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 12 of 24 CONTACTS MEDIAGehna Singh KareckasSenior Director, Corporate Affairs+1 613 979 4272gehna.singhkareckas@tr.com INVESTORSGary Bisbee, CFAHead of Investor Relations+1 646 540 3249gary.bisbee@tr.com Thomson Reuters will webcast a discussion of its second-quarter 2025 results and its 2025 business outlook today beginning at8:30 a.m. Eastern Daylight Time (EDT). You can access the webcast by visiting ir.tr.com. An archive of the webcast will beavailable following the presentation.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 13 of 24 Thomson Reuters CorporationConsolidated Income Statement (millions of U.S. dollars, except per share data)(unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 CONTINUING OPERATIONS Revenues $ 1,785 $ 1,740 $ 3,685 $ 3,625 Operating expenses (1,124) (1,090) (2,232) (2,171) Depreciation (28) (29) (55) (57) Amortization of computer software (178) (154) (352) (307) Amortization of other identifiable intangible assets (24) (23) (49) (48) Other operating gains (losses), net 5 (29) 2 (70) Operating profit 436 415 999 972 Finance costs, net: Net interest expense (35) (36) (65) (76) Other finance (costs) income (48) 2 (58) 24 Income before tax and equity method investments 353 381 876 920 Share of post-tax (losses) earnings in equitymethod investments (4) 61 (10) 53 Tax (expense) benefit (52) 402 (144) 335 Earnings from continuing operations 297 844 722 1,308 Earnings (loss) from discontinued operations, netof tax 16 (3) 25 11 Net earnings $ 313 $ 841 $ 747 $ 1,319 Earnings (loss) attributable to: Common shareholders $ 313 $ 841 $ 747 $ 1,322 Non-controlling interests — — — (3) Earnings per share: Basic earnings (loss) per share: From continuing operations $ 0.66 $ 1.87 $ 1.60 $ 2.90 From discontinued operations 0.03 (0.01) 0.05 0.02 Basic earnings per share $ 0.69 $ 1.86 $ 1.65 $ 2.92 Diluted earnings (loss) per share: From continuing operations $ 0.66 $ 1.87 $ 1.60 $ 2.89 From discontinued operations 0.03 (0.01) 0.05 0.03 Diluted earnings per share $ 0.69 $ 1.86 $ 1.65 $ 2.92 Basic weighted-average common shares 450,673,826 450,364,361 450,481,106 451,244,365 Diluted weighted-average common shares 451,204,832 450,911,513 451,025,807 451,886,658
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 14 of 24 Thomson Reuters CorporationConsolidated Statement of Financial Position (millions of U.S. dollars)(unaudited) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 664 $ 1,968 Trade and other receivables 1,088 1,087 Other financial assets 63 35 Prepaid expenses and other current assets 441 400 Current assets 2,256 3,490 Property and equipment, net 375 386 Computer software, net 1,636 1,453 Other identifiable intangible assets, net 3,134 3,134 Goodwill 7,835 7,262 Equity method investments 284 269 Other financial assets 454 442 Other non-current assets 625 625 Deferred tax 1,367 1,376 Total assets $17,966 $ 18,437 Liabilities and equity Liabilities Current indebtedness $ 499 $ 973 Payables, accruals and provisions 892 1,091 Current tax liabilities 187 197 Deferred revenue 1,164 1,062 Other financial liabilities 112 113 Current liabilities 2,854 3,436 Long-term indebtedness 1,342 1,847 Provisions and other non-current liabilities 643 675 Other financial liabilities 212 232 Deferred tax 299 241 Total liabilities 5,350 6,431 Equity Capital 3,578 3,498 Retained earnings 9,933 9,699 Accumulated other comprehensive loss (895) (1,191) Total equity 12,616 12,006 Total liabilities and equity $17,966 $ 18,437
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 15 of 24 Thomson Reuters CorporationConsolidated Statement of Cash Flow (millions of U.S. dollars)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash provided by (used in): Operating activities Earnings from continuing operations $ 297 $ 844 $ 722 $1,308 Adjustments for: Depreciation 28 29 55 57 Amortization of computer software 178 154 352 307 Amortization of other identifiable intangible assets 24 23 49 48 Share of post-tax losses (earnings) in equity method investments 4 (61) 10 (53) Deferred tax (1) (545) 18 (695) Other 105 73 169 121 Changes in working capital and other items 107 189 (186) 46 Operating cash flows from continuing operations 742 706 1,189 1,139 Operating cash flows from discontinued operations 4 (1) 2 (2) Net cash provided by operating activities 746 705 1,191 1,137 Investing activities Acquisitions, net of cash acquired (24) (19) (630) (467) Proceeds (payments) related to disposals of businesses and investments 5 — 5 (4) Proceeds from sales of LSEG shares — 610 — 1,854 Capital expenditures (163) (152) (314) (297) Other investing activities — 6 1 6 Taxes paid on sales of LSEG shares and disposals of businesses — (121) — (137) Net cash (used in) provided by investing activities (182) 324 (938) 955 Financing activities Repayments of debt (999) — (999) (48) Net repayments under short-term loan facilities — (703) — (139) Payments of lease principal (16) (16) (33) (31) Repurchases of common shares — (287) — (639) Dividends paid on preference shares (1) (2) (2) (3) Dividends paid on common shares (260) (235) (519) (472) Purchase of non-controlling interests — (4) — (384) Other financing activities 1 2 (10) 1 Net cash used in financing activities (1,275) (1,245) (1,563) (1,715) Translation adjustments 4 (3) 6 (5) (Decrease) increase in cash and cash equivalents (707) (219) (1,304) 372 Cash and cash equivalents at beginning of period 1,371 1,889 1,968 1,298 Cash and cash equivalents at end of period $ 664 $1,670 $ 664 $1,670
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 16 of 24 Thomson Reuters CorporationReconciliation of Earnings from Continuing Operations to Adjusted EBITDA(1) (millions of U.S. dollars)(unaudited) Three Months Ended Six Months Ended Year Ended June 30, June 30, December 31, 2025 2024 2025 2024 2024 Earnings from continuing operations $ 297 $ 844 $ 722 $1,308 $ 2,192 Adjustments to remove: Tax expense (benefit) 52 (402) 144 (335) (123) Other finance costs (income) 48 (2) 58 (24) (45) Net interest expense 35 36 65 76 125 Amortization of other identifiable intangible assets 24 23 49 48 91 Amortization of computer software 178 154 352 307 618 Depreciation 28 29 55 57 113 EBITDA $ 662 $ 682 $1,445 $1,437 $ 2,971 Adjustments to remove: Share of post-tax losses (earnings) in equity methodinvestments 4 (61) 10 (53) (40) Other operating (gains) losses, net (5) 29 (2) 70 (144) Fair value adjustments* 17 (4) 34 (2) (8) Adjusted EBITDA(1) $ 678 $ 646 $1,487 $1,452 $ 2,779 Adjusted EBITDA margin(1) 37.8% 37.1% 40.1% 40.0% 38.2% * Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinarycourse of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue. Thomson Reuters CorporationReconciliation of Net Cash Provided By Operating Activities to Free Cash Flow(1) (millions of U.S. dollars)(unaudited) Three Months Ended Six Months Ended Year Ended June 30, June 30, December 31, 2025 2024 2025 2024 2024 Net cash provided by operating activities $ 746 $ 705 $1,191 $1,137 $ 2,457 Capital expenditures (163) (152) (314) (297) (607) Other investing activities — 6 1 6 46 Payments of lease principal (16) (16) (33) (31) (63) Dividends paid on preference shares (1) (2) (2) (3) (5) Free cash flow(1)) $ 566 $ 541 $ 843 $ 812 $ 1,828 Thomson Reuters CorporationReconciliation of Capital Expenditures to Accrued Capital Expenditures(1) (millions of U.S. dollars)(unaudited) Year Ended December 31, 2024 Capital expenditures $ 607 Remove: IFRS adjustment to cash basis 2 Accrued capital expenditures (1) $ 609 Accrued capital expenditures as a percentage of revenues(1) 8.4% (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 17 of 24 Thomson Reuters CorporationReconciliation of Net Earnings to Adjusted Earnings(1) Reconciliation of Total Change in Adjusted EPS to Change in Constant Currency(1) (millions of U.S. dollars, except for share and per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, Year Ended December 31, 2025 2024 2025 2024 2024 Net earnings $ 313 $ 841 $ 747 $1,319 $ 2,207 Adjustments to remove: Fair value adjustments* 17 (4) 34 (2) (8) Amortization of acquired computer software 52 37 101 75 147 Amortization of other identifiable intangible assets 24 23 49 48 91 Other operating (gains) losses, net (5) 29 (2) 70 (144) Other finance costs (income) 48 (2) 58 (24) (45) Share of post-tax losses (earnings) in equity method investments 4 (61) 10 (53) (40) Tax on above items(1) (22) (8) (46) (40) (9) Tax items impacting comparability(1) (21) (470) (20) (481) (478) (Earnings) loss from discontinued operations, net of tax (16) 3 (25) (11) (15) Interim period effective tax rate normalization(1) 1 (1) (4) (10) — Dividends declared on preference shares (1) (2) (2) (3) (5) Adjusted earnings(1)(2) $ 394 $ 385 $ 900 $ 888 $ 1,701 Adjusted EPS(1)(2) $ 0.87 $ 0.85 $ 2.00 $ 1.97 Total change 2% 2% Foreign currency 0% 0% Constant currency 2% 2% Diluted weighted-average common shares (millions) 451.2 450.9 451.0 451.9 Reconciliation of Effective Tax Rate on Adjusted Earnings(1) Year-ended December 31, 2024 Adjusted earnings $ 1,701 Plus: Dividends declared on preference shares 5 Plus: Tax expense on adjusted earnings 364 Pre-tax adjusted earnings $ 2,070 IFRS Tax benefit $ (123) Remove tax related to: Amortization of acquired computer software 33 Amortization of other identifiable intangible assets 22 Share of post-tax earnings in equity method investments (7) Other finance income 19 Other operating gains, net (56) Other items (2) Subtotal – Remove tax benefit on pre-tax items removed from adjusted earnings 9 Remove: Tax items impacting comparability 478 Total—Remove all items impacting comparability 487 Tax expense on adjusted earnings $ 364 Effective tax rate on adjusted earnings 17.6% * Fair value adjustments primarily represent gains or losses due to changes in foreign currency exchange rates on intercompany balances that arise in the ordinarycourse of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue.(1) Refer to page 24 for additional information on non-IFRS financial measures.(2) The adjusted earnings impact of non-controlling interests, which was applicable to the six-month period ended June 30, 2024 and the year-ended December 31, 2024,was not material.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 18 of 24 Thomson Reuters CorporationReconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1) (millions of U.S. dollars)(unaudited) Three Months Ended June 30, Change 2025 2024 Total Foreign Currency SUBTOTAL Constant Currency Net Acquisitions/ (Disposals) Organic Total Revenues Legal Professionals $ 709 $ 727 -2% 0% -3% -11% 8% Corporates 472 442 7% 0% 6% -2% 9% Tax & Accounting Professionals 277 250 11% -2% 13% 2% 11% “Big 3” Segments Combined(1) 1,458 1,419 3% 0% 3% -6% 9% Reuters News 218 205 7% 2% 5% 0% 5% Global Print 114 123 -7% 0% -7% 0% -7% Eliminations/Rounding (5) (7) Total Revenues $1,785 $ 1,740 3% 0% 2% -5% 7% Recurring Revenues Legal Professionals $ 689 $ 702 -2% 0% -2% -11% 9% Corporates 413 382 8% 0% 8% -2% 9% Tax & Accounting Professionals 190 179 7% -2% 9% 0% 9% “Big 3” Segments Combined(1) 1,292 1,263 2% 0% 2% -7% 9% Reuters News 176 164 8% 2% 6% 0% 6% Eliminations/Rounding (5) (7) Total Recurring Revenues $1,463 $ 1,420 3% 0% 3% -6% 9% Transactions Revenues Legal Professionals $ 20 $ 25 -20% 2% -22% -14% -7% Corporates 59 60 -2% 1% -2% -6% 4% Tax & Accounting Professionals 87 71 22% -1% 23% 8% 14% “Big 3” Segments Combined(1) 166 156 6% 0% 6% -2% 8% Reuters News 42 41 3% 2% 1% 0% 1% Total Transactions Revenues $ 208 $ 197 5% 1% 5% -2% 7% Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth componentsmay not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 19 of 24 Thomson Reuters CorporationReconciliation of Changes in Revenues to Changes in Revenues on a Constant Currency(1) and Organic Basis(1) (millions of U.S. dollars)(unaudited) Six Months Ended June 30, Change 2025 2024 Total Foreign Currency SUBTOTAL Constant Currency Net Acquisitions/ (Disposals) Organic Total Revenues Legal Professionals $1,402 $1,448 -3% 0% -3% -11% 8% Corporates 1,013 949 7% 0% 7% -2% 9% Tax & Accounting Professionals 637 578 10% -2% 12% 2% 11% “Big 3” Segments Combined(1) 3,052 2,975 3% -1% 3% -6% 9% Reuters News 414 415 0% 1% -1% 0% -1% Global Print 230 247 -7% 0% -6% 0% -6% Eliminations/Rounding (11) (12) Total Revenues $3,685 $3,625 2% 0% 2% -5% 7% Recurring Revenues Legal Professionals $1,364 $1,400 -2% 0% -2% -11% 9% Corporates 813 752 8% 0% 8% -2% 10% Tax & Accounting Professionals 397 378 5% -3% 8% 0% 8% “Big 3” Segments Combined(1) 2,574 2,530 2% -1% 2% -7% 9% Reuters News 351 328 7% 0% 6% 0% 6% Eliminations/Rounding (11) (12) Total Recurring Revenues $2,914 $2,846 2% 0% 3% -6% 9% Transactions Revenues Legal Professionals $ 38 $ 48 -22% 1% -23% -17% -6% Corporates 200 197 1% 0% 1% -3% 5% Tax & Accounting Professionals 240 200 20% -1% 20% 5% 15% “Big 3” Segments Combined(1) 478 445 7% 0% 7% -2% 9% Reuters News 63 87 -27% 2% -29% 0% -29% Total Transactions Revenues $ 541 $ 532 1% 0% 1% -2% 3% Year Ended December 31, Change 2024 2023 Total Foreign Currency SUBTOTAL Constant Currency Net Acquisitions/ (Disposals) Organic Total Revenues Legal Professionals $2,922 $2,807 4% 0% 4% -3% 7% Corporates 1,844 1,620 14% 0% 14% 4% 10% Tax & Accounting Professionals 1,165 1,058 10% -1% 11% 1% 10% “Big 3” Segments Combined(1) 5,931 5,485 8% 0% 8% 0% 9% Reuters News 832 769 8% 0% 8% 2% 6% Global Print 519 562 -8% 0% -7% 0% -7% Eliminations/Rounding (24) (22) Total Revenues $7,258 $6,794 7% 0% 7% 0% 7% Growth percentages are computed using whole dollars. As a result, percentages calculated from reported amounts may differ from those presented, and growth componentsmay not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 20 of 24 Thomson Reuters CorporationReconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant Currency Basis(1) (millions of U.S. dollars)(unaudited) Three Months Ended June 30, Change 2025 2024 Total Foreign Currency Constant Currency Adjusted EBITDA(1) Legal Professionals $ 339 $ 327 4% 1% 3% Corporates 169 163 3% 1% 3% Tax & Accounting Professionals 113 91 22% -2% 24% “Big 3” Segments Combined(1) 621 581 7% 1% 6% Reuters News 45 51 -11% 0% -10% Global Print 41 43 -5% 1% -5% Corporate costs (29) (29) n/a n/a n/a Total Adjusted EBITDA $ 678 $ 646 5% 0% 5% Adjusted EBITDA Margin(1) Legal Professionals 47.8% 45.0% 280bp 30bp 250bp Corporates 35.7% 36.8% -110bp 10bp -120bp Tax & Accounting Professionals 39.3% 36.8% 250bp 10bp 240bp “Big 3” Segments Combined(1) 42.3% 41.0% 130bp 20bp 110bp Reuters News 20.8% 24.8% -400bp -40bp -360bp Global Print 36.0% 35.2% 80bp 30bp 50bp Total Adjusted EBITDA Margin 37.8% 37.1% 70bp 0bp 70bp Thomson Reuters CorporationReconciliation of Changes in Adjusted EBITDA(1) and Related Margin(1) to Changes on a Constant Currency Basis(1) (millions of U.S. dollars)(unaudited) Six Months Ended June 30, Change 2025 2024 Total Foreign Currency Constant Currency Adjusted EBITDA(1) Legal Professionals $ 675 $ 669 1% 1% 0% Corporates 382 356 7% 1% 6% Tax & Accounting Professionals 323 272 19% -1% 20% “Big 3” Segments Combined(1) 1,380 1,297 6% 0% 6% Reuters News 84 111 -24% 1% -25% Global Print 85 90 -6% 0% -6% Corporate costs (62) (46) n/a n/a n/a Total Adjusted EBITDA $1,487 $1,452 2% 0% 2% Adjusted EBITDA Margin(1) Legal Professionals 48.1% 46.2% 190bp 40bp 150bp Corporates 37.7% 37.3% 40bp 40bp 0bp Tax & Accounting Professionals 49.1% 47.1% 200bp 40bp 160bp “Big 3” Segments Combined(1) 44.9% 43.5% 140bp 40bp 100bp Reuters News 20.4% 26.6% -620bp 10bp -630bp Global Print 36.9% 36.7% 20bp 30bp -10bp Total Adjusted EBITDA Margin 40.1% 40.0% 10bp 20bp -10bp n/a: not applicable Growth percentages and margins are computed using whole dollars. As a result, percentages and margins calculated from reported amounts may differ from thosepresented, and growth components may not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 21 of 24 Reconciliation of adjusted EBITDA margin(1) To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquireddeferred revenue from its IFRS revenues. The charts below reconcile IFRS revenues to revenues used in the calculation of adjustedEBITDA margin, which excludes fair value adjustments related to acquired deferred revenue. Three Months Ended June 30, 2025 (millions of U.S. dollars)(unaudited) IFRS revenues Remove fair value adjustments to acquired deferredrevenue Revenues excluding fair value adjustments to acquired deferredrevenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $ 709 — $ 709 $ 339 47.8% Corporates 472 — 472 169 35.7% Tax & AccountingProfessionals 277 $ 10 287 113 39.3% “Big 3” SegmentsCombined(1) 1,458 10 1,468 621 42.3% Reuters News 218 — 218 45 20.8% Global Print 114 — 114 41 36.0% Eliminations/ Rounding (5) — (5) — n/a Corporate costs — — — (29) n/a Consolidated totals $ 1,785 $ 10 $ 1,795 $ 678 37.8% Six Months Ended June 30, 2025 (millions of U.S. dollars)(unaudited) IFRS revenues Remove fair value adjustments to acquired deferredrevenue Revenues excluding fair value adjustments to acquired deferredrevenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $ 1,402 — $ 1,402 $ 675 48.1% Corporates 1,013 — 1,013 382 37.7% Tax & AccountingProfessionals 637 $ 20 657 323 49.1% “Big 3” SegmentsCombined(1) 3,052 20 3,072 1,380 44.9% Reuters News 414 — 414 84 20.4% Global Print 230 — 230 85 36.9% Eliminations/ Rounding (11) — (11) — n/a Corporate costs — — — (62) n/a Consolidated totals $ 3,685 $ 20 $ 3,705 $ 1,487 40.1% Three Months Ended June 30, 2024 (millions of U.S. dollars)(unaudited) IFRS revenues Remove fair value adjustments to acquired deferredrevenue Revenues excluding fair value adjustments to acquired deferredrevenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $ 727 — $ 727 $ 327 45.0% Corporates 442 $ 2 444 163 36.8% Tax & AccountingProfessionals 250 — 250 91 36.8% “Big 3” SegmentsCombined(1) 1,419 2 1,421 581 41.0% Reuters News 205 — 205 51 24.8% Global Print 123 — 123 43 35.2% Eliminations/ Rounding (7) — (7) — n/a Corporate costs — — — (29) n/a Consolidated totals $ 1,740 $ 2 $ 1,742 $ 646 37.1% n/a: not applicable Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 22 of 24 Reconciliation of adjusted EBITDA margin(1) Six Months Ended June 30, 2024 (millions of U.S. dollars)(unaudited) IFRS revenues Remove fair value adjustments to acquired deferredrevenue Revenues excluding fair value adjustments to acquired deferredrevenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $ 1,448 — $ 1,448 $ 669 46.2% Corporates 949 $ 5 954 356 37.3% Tax & AccountingProfessionals 578 — 578 272 47.1% “Big 3” SegmentsCombined(1) 2,975 5 2,980 1,297 43.5% Reuters News 415 1 416 111 26.6% Global Print 247 — 247 90 36.7% Eliminations/ Rounding (12) — (12) — n/a Corporate costs — — — (46) n/a Consolidated totals $ 3,625 $ 6 $ 3,631 $ 1,452 40.0% Thomson Reuters Corporation“Big 3” Segments and Consolidated Adjusted EBITDA(1) and the Related Margins(1) (millions of U.S. dollars)(unaudited) Year Ended December 31, 2024 Adjusted EBITDA(1) Legal Professionals $ 1,302 Corporates 671 Tax & Accounting Professionals 527 “Big 3” Segments Combined(1) 2,500 Reuters News 196 Global Print 188 Corporate costs (105) Total Adjusted EBITDA $ 2,779 “Big 3” Segments Combined(1) Adjusted EBITDA $ 2,500 Revenues, excluding $7 million of fair value adjustments to acquired deferred revenue $ 5,938 Adjusted EBITDA margin 42.1% Consolidated(1) Adjusted EBITDA $ 2,779 Revenues, excluding $9 million of fair value adjustments to acquired deferred revenue $ 7,267 Adjusted EBITDA margin 38.2% n/a: not applicable Margins are computed using whole dollars, as a result, margins calculated from reported amounts may differ from those presented due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 23 of 24 Thomson Reuters CorporationReconciliation of Net Debt(1) and Leverage Ratio of Net Debt to Adjusted EBITDA(1) (millions of U.S. dollars)(unaudited) June 30, 2025 December 31, 2024 Current indebtedness $ 499 $ 973 Long-term indebtedness 1,342 1,847 Total debt 1,841 2,820 Swaps — 21 Total debt after swaps 1,841 2,841 Remove fair value adjustments for hedges — 5 Total debt after currency hedging arrangements 1,841 2,846 Remove transaction costs, premiums or discounts, included in the carrying value of debt 28 22 Add: Lease liabilities (current and non-current) 252 256 Less: Cash and cash equivalents (664) (1,968) Net debt $1,457 $ 1,156 Leverage ratio of net debt to adjusted EBITDA Adjusted EBITDA $2,814 $ 2,779 Net debt/adjusted EBITDA 0.5:1 0.4:1 (1) Refer to page 24 for additional information on non-IFRS financial measures.
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Thomson Reuters Reports Second-Quarter 2025 ResultsPage 24 of 24 Non-IFRS FinancialMeasures Definition Why Useful to the Company and Investors Adjusted EBITDAand the relatedmargin Represents earnings or losses from continuingoperations before tax expense or benefit, net interestexpense, other finance costs or income, depreciation,amortization of computer software and other identifiableintangible assets, Thomson Reuters share of post-taxearnings or losses in equity method investments, otheroperating gains and losses, certain asset impairmentcharges and fair value adjustments, including thoserelated to acquired deferred revenue. The related margin is adjusted EBITDA expressed as apercentage of revenues. For purposes of this calculation,revenues are before fair value adjustments to acquireddeferred revenue. Provides a consistent basis to evaluate operatingprofitability and performance trends by excludingitems that the company does not consider to becontrollable activities for this purpose. Also, represents a measure commonly reported andwidely used by investors as a valuation metric, as wellas to assess the company’s ability to incur andservice debt. Adjusted earningsand adjusted EPS Net earnings or loss including dividends declared onpreference shares but excluding the post-tax impacts offair value adjustments, including those related toacquired deferred revenue, amortization of acquiredintangible assets (attributable to other identifiableintangible assets and acquired computer software), otheroperating gains and losses, certain asset impairmentcharges, other finance costs or income, ThomsonReuters share of post-tax earnings or losses in equitymethod investments, discontinued operations and otheritems affecting comparability. Acquired intangible assetscontribute to the generation of revenues from acquiredcompanies, which are included in the company’scomputation of adjusted earnings. The post-tax amount of each item is excluded fromadjusted earnings based on the specific tax rules and taxrates associated with the nature and jurisdiction of eachitem. Adjusted EPS is calculated from adjusted earnings usingdiluted weighted-average shares and does not representactual earnings or loss per share attributable toshareholders. Provides a more comparable basis to analyzeearnings. These measures are commonly used by shareholdersto measure performance. Effective tax rateon adjustedearnings Adjusted tax expense divided by pre-tax adjustedearnings. Adjusted tax expense is computed as incometax (benefit) expense plus or minus the income taximpacts of all items impacting adjusted earnings (asdescribed above), and other tax items impactingcomparability. In interim periods, the company also makes anadjustment to reflect income taxes based on theestimated full-year effective tax rate. Earnings or lossesfor interim periods under IFRS reflect income taxesbased on the estimated effective tax rates of each of thejurisdictions in which Thomson Reuters operates. Thenon-IFRS adjustment reallocates estimated full-yearincome taxes between interim periods but has no effecton full-year income taxes. Provides a basis to analyze the effective tax rateassociated with adjusted earnings. The company’s effective tax rate computed inaccordance with IFRS may be more volatile byquarter because the geographical mix of pre-taxprofits and losses in interim periods may be differentfrom that for the full year. Therefore, the companybelieves that using the expected full-year effective taxrate provides more comparability among interimperiods. Free cash flow Net cash provided by operating activities and otherinvesting activities, less capital expenditures, paymentsof lease principal and dividends paid on the company’spreference shares. Helps assess the company’s ability, over the longterm, to create value for its shareholders as itrepresents cash available to repay debt, pay commondividends, fund share repurchases and acquisitions. Changes beforethe impact offoreign currency orat “constantcurrency” The changes in revenues, adjusted EBITDA and therelated margin, and adjusted EPS before currency (atconstant currency or excluding the effects of currency)are determined by converting the current and equivalentprior period’s local currency results using the sameforeign currency exchange rate. Provides better comparability of business trends fromperiod to period.
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Changes inrevenuescomputed on an“organic” basis Represent changes in revenues of the company’sexisting businesses at constant currency. The metricexcludes the distortive impacts of acquisitions anddispositions from not owning the business in bothcomparable periods. Provides further insight into the performance of thecompany’s existing businesses by excluding distortiveimpacts and serves as a better measure of thecompany’s ability to grow its business over the longterm. Accrued capitalexpenditures as apercentage ofrevenues Accrued capital expenditures divided by revenues, whereaccrued capital expenditures include amounts thatremain unpaid at the end of the reporting period. Forpurposes of this calculation, revenues are before fairvalue adjustments to acquired deferred revenue. Reflects the basis on which the company managescapital expenditures for internal budgeting purposes. “Big 3” segments The company’s combined Legal Professionals,Corporates and Tax & Accounting Professionalssegments. All measures reported for the “Big 3”segments are non-IFRS financial measures. The “Big 3” segments comprised approximately 80%of revenues and represent the core of the company’sbusiness information service product offerings. Net debt andleverage ratio ofnet debt toadjusted EBITDA Net debt is total indebtedness (excluding the associatedunamortized transaction costs and premiums ordiscount) plus the currency related fair value ofassociated hedging instruments, and lease liabilities lesscash and cash equivalents. Net debt to adjusted EBITDA is net debt divided byadjusted EBITDA for the previous twelve-month periodending with the current fiscal quarter. Provides a commonly used measure of a company’sleverage and its ability to pay its debt. Given that thecompany hedges some of its debt to reduce risk, thecompany includes hedging instruments as it believesit provides a better measure of the total obligationassociated with its outstanding debt. However,because the company intends to hold its debt andrelated hedges to maturity, the company does notconsider the interest components of the associatedfair value of hedges in its measurements. Thecompany reduces gross indebtedness by cash andcash equivalents. The company’s non-IFRS measure is aligned with thecalculation of its internal target and is moreconservative than the maximum ratio allowed underthe contractual covenants in its credit facility. Please refer to reconciliations for the most directly comparable IFRS financial measures.