Slides
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REUTERS/Michaela Rehle Thomson Reuters 2025 Fourth - Quarter Results February 5, 2026
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• Welcome / Introduction Gary Bisbee • Fourth - Quarter & Full - Year 2025 Highlights Steve Hasker Reimagining How We Work: Leveraging AI Internally • Financial Review Mike Eastwood Fourth - Quarter & Full - Year 2025 Results 2026 Full - Year Outlook • Q & A Agenda 2
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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 ent ed and understood together. Certain statements in this presentation and discussion are forward - looking, including, but not limited to, statements regarding the company’s full - year 2026 outlook and other expectations regarding the future financial and operational performance of the company and its individual business segments, the company’s st rategic priorities, initiatives and opportunities, statements regarding investments in AI and the application and impact of AI in current and future products, statements regarding the fin anc ial and operational impacts on the company from reimagining work through innovation, statements regarding future plans for severance payments, and the company’s expectations re garding its liquidity and capital resources and its capital allocation approach. While the company believes that it has a reasonable basis for making forward - looking statements in this pre sentation, they are not a guarantee of future performance or outcomes and there is no assurance that any of the events described in any forward - looking statement will materialize. Forwar d - 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 our company’s control and the effects of them can be difficult to predict. Some of the factors that could cause actual results to di ffer materially from current expectations are discussed in the “Risk Factors” section of our annual report and in other materials that we from time to time file with, or furnish to, the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Our company has provided a full - year 2026 business outlook for the purpose of presenting information about current expectations for the periods presented. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward - looking statements which reflect expect ations only as of the date of this presentation. Except as may be required by applicable law, Thomson Reuters disclaims any obligation to update or revise any forward - looking statements. The company’s business outlook and financial framework are based on information currently available to the company and are ba sed on various external and internal assumptions made by the company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other fac to rs that the company believes are appropriate under the circumstances. Please refer to the third quarter management's discussion and analysis and our earnings rel ease dated February 5, 2026, each of which is available on www.tr.com, for a discussion of material assumptions and material risks related to our business outlook and financial framewo rk. Non - IFRS and Other Supplementary Financial Measures This presentation contains disclosures of certain non - IFRS financial measures. These measures include adjusted EBITDA and the re lated margin (other than at the customer segment level), free cash flow, adjusted earnings, adjusted EPS, effective tax rate on adjusted earnings, accrued capital expenditures expres sed as a percentage of revenues, net debt to adjusted EBITDA leverage ratio, selected measures excluding the impact of foreign currency, changes in revenues computed on an organic basis as well as all financial measures for the “Big 3”. See Appendix A of our management’s discussion and analysis for the three and nine months ended September 30, 2025 for a description of our non - IFRS financial measures, including an explanation of why we believe they are useful measures of our performance. Please see our earnings release dated February 5, 2026 for a reconciliation of each of Thomson Reuters’ measures to the most directly comparable IFRS financial measure. The earning s release can be found on SEDAR+ at www.sedarplus.com. As discussed in this presentation, generative AI as a percent of our annualized contract value (ACV) and capital capacity are su pplementary financial measures. ACV is the annualized value of all active subscription product contracts at a particular point in time. Generative AI enabled products are those that hav e s uch capabilities embedded as part of the offering. Capital Capacity is a measure of the company’s capacity to invest, and assumes cumulative free cash flow after dividend payments and net leverage of 2.5x through the period discussed. 3
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Thomson Reuters Fourth - Quarter & Full - Year 2025 Highlights Steve Hasker President & CEO
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1. Good 2025 performance as organic revenue, adjusted EBITDA margin, and FCF met expectations • Q4 organic revenue growth of 7%, driven by 9% recurring revenue growth • Q4 “Big 3” (Legal, Corporates, and Tax, Audit & Accounting) organic revenue growth of 9% • Q4 adjusted EBITDA margin meets outlook despite incremental investments 2. 2026 outlook for organic revenue growth, adjusted EBITDA margin and free cash flow maintained • 2026 Outlook reiterates all items from prior 2026 financial framework, including: 7.5% - 8.0% organic revenue growth (~9.5% for the “Big 3”), adjusted EBITDA margin +100 bps Y/Y to ~40%, and ~$2.1B of free cash flow 3. Generative AI progress highlights strong year of innovation and product success • Key product successes: launches of Westlaw Advantage, CoCounsel Legal, CoCounsel for Tax & Audit, Ready - to - Advise and Ready - to - Review; product enhancements made across the portfolio 4. Reimagining how we work with AI to drive automation and speed • Journey to reimagine how we work with AI underway; Early successes with software engineering, customer support, content opera tio ns and our General Counsel’s office provide growing confidence in long - term opportunity 5. Capital deployment progress continues; robust liquidity and capital capacity remain • ~$850M deployed into strategic M&A in 2025, including SafeSend, Additive, TimeBase and Imagn • Repurchased $1.0B of common shares in 2025; raising common dividend by 10% for a fifth straight year in 2026 • Robust capital position with net leverage of 0.6x at December 31; we estimate ~$11B of capital capacity by 2028 Fourth - Quarter & Full - Year 2025 Highlights 5
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IFRS Financial Measures ($ millions) 2025 2024 Change Revenues $2,009 $1,909 Up 5% Operating profit $540 $722 Down 25% Diluted earnings per share (EPS) $0.74 $1.30 Down 43% Net cash provided by operating activities $756 $564 Up 35% Non - IFRS Financial Measures ($ millions) 2025 2024 Change Change at Constant Currency Organic Growth Revenues $2,009 $1,909 Up 5% Up 5% Up 7% Adjusted EBITDA $777 $718 Up 8% Up 8% Adjusted EBITDA margin 38.7% 37.6% Up 110 bps Up 140 bps Adjusted EPS $1.07 $1.01 Up 6% Up 7% Free cash flow $581 $425 Up 38% Fourth - Quarter 2025 Consolidated Results 6
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Reported revenues up 5% to $2.0 billion Organic revenues up 7% Organic recurring revenues up 9% Legal Professionals $0.7B +1% (+9% organic) Tax Professionals Corporates $0.5B +8% (+9% organic) Corporates Tax, Audit & Accounting Professionals $0.4B +13% (+11% organic) $0.2B +7% (+5% organic) Global Print $0.1B - 6% ( - 6 % organic) Reuters Fourth - Quarter 2025 Revenue Growth by Segment Reported Revenues Global Print “Big 3” grew 9% organically ( 82% total revenues) 7
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IFRS Financial Measures ($ millions) 2025 2024 Change Revenues $7,476 $7,258 Up 3% Operating profit $2,132 $2,109 Up 1% Diluted EPS $3.33 $4.89 Down 32% Net cash provided by operating activities $2,651 $2,457 Up 8% Non - IFRS Financial Measures ($ millions) 2025 2024 Change Change at Constant Currency Organic Growth Revenues $7,476 $7,258 Up 3% Up 3% Up 7% Adjusted EBITDA $2,936 $2,779 Up 6% Up 5% Adjusted EBITDA margin 39.2% 38.2% Up 100 bps Up 80 bps Adjusted EPS $3.92 $3.77 Up 4% Up 4% Free cash flow $1,950 $1,828 Up 7% Full - Year 2025 Consolidated Results 8
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Full - Year 2025 Actual Results vs. Updated Guidance Total Thomson Reuters 2025 Outlook 11.04.25 Before Currency 2025 Results Before Currency 2025 Reported Total Revenue Growth 3.0% - 3.5% 3.0% 3.0% Organic Revenue Growth (1) 7.0% - 7.5% 7.0% 7.0% Adjusted EBITDA Margin (1) ~ 39% 39.1% 39.2% Corporate Costs $120 - $130 million $117 million $118 million Free Cash Flow (1) (2) ~ $1.9 billion $1.95 billion $1.95 billion Accrued Capex as % of Revenue (1) ~ 8% 8.2% 8.2% Depreciation & Amortization of Software $825 - $835 million $827 million $832 million Net Interest Expense ~ $130 million $143 million $143 million Effective Tax Rate on Adjusted Earnings (1) ~ 19% 18.5% 18.5% Big 3 (1) 2025 Outlook 11.04.25 Before Currency 2025 Results Before Currency 2025 Reported Total Revenue Growth ~ 4% 3.9% 3.8% Organic Revenue Growth ~ 9% 9.0% 9.0% Adjusted EBITDA Margin ~ 43% 43.5% 43.6% (1) Non - IFRS financial measures. All measures reported for the “Big 3” segments are non - IFRS (2) Free cash flow is at actual rates 9
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Reimagining How We Work: Leveraging AI Internally
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Reimagining How We Work: Leveraging AI Internally to Drive Productivity & Speed 300+ AI use cases in development across TR 2023+ 2025+ Upskilling talent, driving “tech + talent” mindset Investing in tools • Created Open Arena, an internal AI platform enabling all employees to take ownership of the AI transformation • Leveraging ~20 third - party SaaS AI tools Upskilling talent • AI learning days, certifications Fostering a culture of experimentation • Forums for sharing best practices, Hackathons • Proof of concept approach, scale based on learnings Adding structure to drive execution and accountability • Leadership oversight for AI transformation drives accountability • 3 - year AI roadmaps for all segments and functions Resources dedicated to driving transformation • Change management & AI experts supporting delivery • Technology team tasked with building agents for business - specific use cases • Process mapping exercise 85%+ of employees actively engaged with AI tools (year - end 2025) We are on a journey to reimagine how we work with AI - driven automation to drive productivity, accelerate decision - making and improve customer experiences Adding top - down disciplined structure to drive execution 11
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Four Examples of AI - Enabled Workforce Transformation • AI - enabled code generation • AI - enabled testing and quality control Driving Measurable Business Impact through the Internal Use of AI Use Cases Impact Product Engineering Content Operations TR General Counsel Early successes drive growing confidence in the internal AI opportunity Customer Service • >80% engineers utilizing AI tools • 30% AI code acceptance • Faster security remediation • Predictive incident management • Legal content processing • Automating document ingestion and enrichment • Accelerated timing of U.S. content delivery to Westlaw by 25% • Agent assist • Auto responses • Customer knowledge base • Case summarization • Decreased average call handle time by 15% • Boosted first - call resolution by 10% • POCs for agentic solutions Leveraging TR tools for : legal research, contract review & drafting, litigation workflows, M&A due diligence; other • Automating legal tasks and analysis gets to the answer you want sooner, saving time and resources, and helping mitigate risk 12
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Financial Review Fourth - Quarter & Full - Year 2025 Results 2026 Outlook Mike Eastwood Chief Financial Officer
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Fourth - Quarter & Full - Year 2025 Legal Professionals, Corporates, Tax, Audit & Accounting Professionals Revenues ($ millions) Fourth Quarter Full Year Revenues 2025 2024 Total Constant Currency Organic 2025 2024 Total Constant Currency Organic Legal Professionals 738 729 +1% +1% +9% 2,868 2,922 - 2% - 2% +8% Corporates 496 458 +8% +7% +9% 1,987 1,844 +8% +7% +9% Tax, Audit & Accounting Professionals 414 366 +13% +13% +11% 1,302 1,165 +12% +13% +11% “Big 3” Revenues 1,648 1,553 +6% +5% +9% 6,157 5,931 +4% +4% +9% 14
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Fourth - Quarter & Full - Year 2025 Consolidated Revenues ($ millions) Fourth Quarter Full Year Revenues 2025 2024 Total Constant Currency Organic 2025 2024 Total Constant Currency Organic Reuters 232 218 +7% +6% +5% 853 832 +3% +2% +1% Global Print 136 144 - 6% - 6% - 6% 490 519 - 6% - 5% - 5% Eliminations / Rounding (7) (6) (24) (24) Total Revenues 2,009 1,909 +5% +5% +7% 7,476 7,258 +3% +3% +7% 15
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Fourth - Quarter & Full - Year 2025 Consolidated Adjusted EBITDA ($ millions) Fourth Quarter Full Year Adjusted EBITDA 2025 2024 Total Constant Currency 2025 2024 Total Constant Currency Legal Professionals Margin 327 44.3% 299 41.0% + 9% +9% 1,356 47.3% 1,302 44.6% + 4% + 3% Corporates Margin 160 32.2% 153 33.5% +4% +4% 716 36.0% 671 36.3% +7% +6% Tax, Audit & Accounting Professionals Margin 222 53.6% 196 53.4% +14% +13% 623 47.1% 527 45.2% +18% +19% “Big 3” Adjusted EBITDA Margin 709 43.0% 648 41.7% +9% +9% 2,695 43.6% 2,500 42.1% +8% +7% Reuters Margin 48 21.0% 45 20.8% +7% +12% 174 20.4% 196 23.6% - 11% - 11% Global Print Margin 54 39.6% 55 38.2% - 2% - 2% 185 37.7% 188 36.2% - 2% - 2% Corporate Costs (34) (30) (118) (105) Total Adjusted EBITDA Margin 777 38.7% 718 37.6% +8% +8% 2,936 39.2% 2,779 38.2% +6% +5% 16
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($ millions except per share amounts & share count) Fourth Quarter Full Year 2025 2024 % Change 2025 2024 % Change Adjusted EBITDA 777 718 +8% 2,936 2,779 +6% Depreciation & Amortization of Software (215) (186) (832) (731) Add back: Acquired Software Amortization 53 38 2 06 147 Interest Expense (40) (28) (143) (125) Income Tax (95) (87) (401) (364) Dividend declared on preference shares (1) (1) (4) (5) Adjusted Earnings 479 454 1,762 1,701 Adjusted EPS $1.07 $1.01 +6% $3.92 $3.77 +4% Foreign Currency Impact ($0.01) - Diluted Weighted Average Common Shares 445.6M 449.5M Adjusted Earnings Per Share (EPS) 17
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Consolidated Free Cash Flow ($ millions) Fourth Quarter Full Year 2025 2024 (1) Change 2025 2024 (1) Change Net Cash from Operations, before change in WC 634 641 (7) 2,608 2,541 67 Changes in working capital and other items 122 (77) 199 43 (84) 127 Net Cash Provided by Operating Activities 756 564 192 2,651 2,457 194 Capital Expenditures (158) (161) 3 (634) (607) (27) Other Investing Activities - 40 (40) 1 46 (45) Payments of Lease Principal (16) (17) 1 (64) (63) (1) Dividends Paid on Preference Shares (1) (1) - (4) (5) 1 Free Cash Flow 581 425 156 1,950 1,828 122 18 (1) The year ended December 31, 2024 excludes $260 million provision (Q4 2024 $1 million) for current income taxes related to LSEG share sales.
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Capital Structure and Allocation Updates
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• Term Debt Outstanding @ 12/31/25 = $1.9B • CP Outstanding @ 12/31/25 = $0.3B • Cash on Balance Sheet @ 12/31/25 = $0.5B • Credit Revolver @ 12/31/25 = ~ $2.0B (undrawn) • Avg. Interest Cost for Term Debt = 5.1% • Avg. Term Debt Maturity Remaining = ~ 10 years • Net Debt / Reported EBITDA Ratio = 0. 6 x vs. 2.5x Target (1) Significant Financial Capacity - Ready to Put to Work • Capital structure and liquidity position remain strong: • Capital capacity expected to grow to ~$11B by 2028 • Expected to provide significant organic and inorganic growth opportunities; continue to assess acquisition candidates • As of Q4 ‘25, Net Debt / Adjusted EBITDA Ratio of 0.6x vs. 2.5x Target (0.6x calculated under credit facility vs. maximum of 4.5 x) • Next debt maturity in May 2026 ($500M) forecasted to be paid with cash on hand pending M&A and shareholder returns Debt Maturity ( as of 12/31/2025 ) $500M $400M $500M $469M $295M 2026 2035 2040 2043 Commercial Paper Term Debt 3.35% 5.50% 5.85% 5.65% 4.50% 20 (1) Includes lease liability of $0.2B
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$0.8B $0.8B $0.9B $0.9B $1.0B $18M $0.2B $1.2B $1.0B $0.8B $1.4B $1.3B $1.1B $0.6B $1.0B $2.0B 2021 2022 2023 2024 2025 Dividends Paid Acquisitions Share Repurchases Return of Capital Balanced Capital Allocation History We have allocated $15+ billion over the past 5 years in support of our capital allocation priorities: annual dividend growth, st rategic M&A, additional shareholder returns, and supporting a strong investment grade balance sheet 2026 Annualized Dividend Increases $0.24 to $2.62, a 33 rd consecutive annual increase and 5 th consecutive 10% Increase $2.2B $2.3B $5.2B $2.6B $2.9B 21 Note: Components may not total due to rounding.
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2026 Outlook
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2026 Outlook Total Thomson Reuters FY 2025 Reported 2026 Framework (2) 11/4/2025 2026 Outlook (2) 2/5/2026 Total Revenue Growth 3% 7.5% - 8.0% Organic Revenue Growth (1) 7% 7.5% - 8.0% 7.5% - 8.0% Adjusted EBITDA Margin (1) 39.2% +100 bps Y/Y +100 bps Y/Y Corporate Costs $118 million $115 - $125 million Free Cash Flow (1) $1.95 billion ~ $2.1 billion ~ $2.1 billion Accrued Capex as % of Revenues (1) 8.2% ~8% ~ 8.0% Depreciation & Amortization of Software $832 million $890 - $910 million Depreciation & Amortization of Internally Developed Software $626 million $680 - $690 million Amortization of Acquired Software $206 million $210 - $220 million Interest Expense (P&L) $143 million $150 - $160 million Effective Tax Rate on Adjusted Earnings (1) 18.5% ~ 19% ~ 19% Big 3 (1) FY 2025 Reported 2026 Framework (2) 11/4/2025 2026 Outlook (2) 2/5/2026 Total Revenue Growth 4% ~ 9.5% Organic Revenue Growth 9% ~ 9.5% ~ 9.5% Adjusted EBITDA Margin 43.6% +100 bps Y/Y (1) Non - IFRS financial measures. All measures reported for the “Big 3” segments are non - IFRS (2) Before currency and excludes the impact of future acquisitions / dispositions 23
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Q&A