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Thomson Reuters Reports Second-Quarter 2025 Results

1. TRI revenue up 3%, and organic growth at 7%. 2. The Big 3 segments saw 9% organic revenue growth. 3. Adjusted EBITDA margin improved to 37.8% from 37.1%. 4. EPS decreased significantly due to prior tax benefits. 5. TRI maintains full-year revenue and EBITDA growth outlook.

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FAQ

Why Bullish?

TRI's strong revenue growth and improved EBITDA margins are favorable signs. Historically, such trends lead to positive stock performance for established firms in growth sectors.

How important is it?

The insights on financial performance, including revenue growth and cash flow, are crucial for assessing TRI's stock value potential.

Why Short Term?

The reported results and guidance will likely impact TRI's stock performance immediately as investors react to positive growth figures and outlook, suggesting a short-term market response.

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, /PRNewswire/ -- 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", said Steve Hasker, President and CEO of Thomson Reuters. "We remain focused on delivering product innovation across our portfolio, as exemplified by the launch of CoCounsel Legal, including Deep Research on Westlaw and guided workflows, and CoCounsel for tax, audit and accounting. With these advanced agentic AI offerings, we continue to leverage our authoritative content and deep expertise to bring transformative 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 inorganic opportunities 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) IFRS Financial Measures(1) 2025 2024 Change 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 % Non-IFRS Financial Measures(1) 2025 2024 Change Change atConstant Currency 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 measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial      Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial      measures, including how they are defined and reconciled to the most directly comparable IFRS measures. Revenues increased 3% due to 3% growth in recurring revenues (82% of total revenues) and 5% growth in transactions revenues, partly offset 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. Organic revenues increased 7% reflecting 9% growth in recurring revenues, 7% growth in transactions revenues and a 7% decline in Global Print. 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-year period compared to other operating losses in the prior-year period. These items were partly offset by higher operating expenses and amortization of computer software. Adjusted EBITDA, which excludes other operating gains and losses, amortization of computer software, as well as other adjustments, increased 5% and the related margin increased to 37.8% from 37.1% in the prior-year period, primarily due to higher 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 included currency losses reflected in other finance costs or income. The prior-year period included a $468 million or a $1.04 per share non-cash tax benefit related to tax legislation enacted in Canada and an increase in value of the company's former investment in London Stock Exchange Group (LSEG).  Adjusted EPS, which excludes the currency losses, the non-cash tax benefit and the increase in value of LSEG, as well as other adjustments, increased to $0.87 per share compared to $0.85 per share in the prior-year period, primarily due to higher adjusted 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. Free cash flow increased by $25 million as higher net cash provided by operating activities was partly offset by higher capital expenditures. 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 financial measures. 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 (which excludes the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure performance. Legal Professionals Revenues decreased 3% substantially due to the impact from the disposal of FindLaw, which negatively impacted recurring and transactions revenues. Organic revenue growth was 8%. Recurring revenues decreased 2% (97% of total, increased 9% organic). Organic revenue growth was primarily driven by Westlaw, CoCounsel, CoCounsel Drafting, Practical Law, CLEAR, and the segment's international businesses. Transactions revenues decreased 22% (3% of total, decreased 7% organic). Adjusted EBITDA increased 4% to $339 million. 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%. Recurring revenues increased 8% (88% of total, increased 9% organic). Organic revenue growth was primarily driven by Indirect and Direct Tax, Pagero, Practical Law, and the segment's international businesses. Transactions revenues decreased 2% (12% of total, increased 4% organic). Organic revenue growth was primarily driven by increases in Indirect Tax, Confirmation, SurePrep and the segment's international businesses. Adjusted EBITDA increased 3% to $169 million. 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 revenue growth was 11%. Recurring revenues increased 9% (69% of total, all organic). Organic revenue growth was primarily driven by the segment's Latin America business and its tax products. 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. The margin increased to 39.3% from 36.8%, primarily reflecting operating leverage on higher revenue growth and the timing of certain expenses.  The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year. Reuters News Revenues increased 5%, all organic, primarily due to higher Professional and Agency revenues and a contractual price increase from our news agreement with the Data & Analytics business of LSEG. Adjusted EBITDA decreased 11% to $45 million. The margin decreased to 20.8% from 24.8% primarily due to higher editorial coverage costs and investments across the business. 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) IFRS Financial Measures(1) 2025 2024 Change 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 % Non-IFRS Financial Measures(1) 2025 2024 Change Change atConstant Currency 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 operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended      to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and      reconciled to the most directly comparable IFRS measures. Revenues increased 2% due to 2% growth in recurring revenues (79% of total revenues) and 1% growth in transactions revenues, partly offset 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. Organic revenues increased 7% reflecting 9% growth in recurring revenues, 3% growth in transactions revenues and a 6% decline in Global Print. 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-year period compared to other operating losses in the prior-year period. These items were partly offset by higher operating expenses and amortization of computer software. Adjusted EBITDA, which excludes other operating gains and losses, amortization of computer software, as well as other adjustments, increased 2% and the related margin increased slightly to 40.1% from 40.0%. Foreign currency contributed 20 basis 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 included currency losses reflected in other finance costs or income. The prior-year period included a $468 million or $1.04 per share non-cash tax benefit related to tax legislation enacted in Canada and an increase in value of the company's former investment in LSEG.      Adjusted EPS, which excludes the currency losses, the non-cash tax benefit and the increase in value of LSEG, as well as other adjustments, increased to $2.00 per share compared to $1.97 per share in the prior-year period, primarily due to higher adjusted 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. Free cash flow increased by $31 million as higher net cash provided by operating activities was partly offset by higher capital expenditures. 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 financial measures. 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 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 developed software 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 acquisition and the disposals of FindLaw and other non-core businesses, but excludes the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses. The company expects its third-quarter 2025 organic revenue growth to be approximately 7% and its adjusted EBITDA margin to be approximately 36%. The company's 2025 outlook is forward-looking information that is subject to risks and uncertainties (see "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions"). In particular, the company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment, among other factors, could impact the company's ability to achieve its outlook. Reported Full-Year 2024 Results and Full-Year 2025 Outlook Total Thomson Reuters FY 2024 Reported FY 2025 Outlook 2/6/2025 FY 2025 Outlook 8/6/2025 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 Software     Amortization 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 2025 Outlook 2/6/2025 FY 2025 Outlook 8/6/2025 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 more information. (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 future acquisitions and dispositions completed during 2025, may differ materially from the company's 2025 outlook. The information in this section should also be read in conjunction with the section below entitled "Special Note Regarding Forward-Looking Statements, Material Risks and Material Assumptions." 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 per share 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 and organizations 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 by the International Accounting Standards Board (IASB). This news release includes certain non-IFRS financial measures, which include ratios that incorporate one or more non-IFRS financial measures, such as adjusted EBITDA (other than at the customer segment level) and the related margin, free cash flow, adjusted earnings and the effective tax rate on adjusted earnings, adjusted EPS, accrued capital expenditures expressed as a percentage of revenues, net debt and leverage ratio of net debt to adjusted EBITDA, 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" segments. Thomson Reuters uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position as well as for internal planning purposes and the company's business outlook. Additionally, Thomson Reuters uses non-IFRS measures as the basis for management incentive programs. These measures do not have any standardized meanings prescribed by IFRS and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS. Non-IFRS financial measures are defined and reconciled to the most directly comparable IFRS measures in the appended tables. 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 items that are not reflective of ongoing operations in any future period. The magnitude of these items may be significant. Consequently, for purposes of its outlook only, the company is unable to reconcile these non-IFRS measures to the most directly comparable IFRS measures because it cannot predict, with reasonable certainty, the impacts of changes in foreign exchange rates which impact (i) the translation of its results reported at average foreign currency rates for the year, and (ii) other finance income or expense related to intercompany financing arrangements. Additionally, the company cannot reasonably predict the occurrence or amount of other operating gains 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 whole dollars to be more precise. As a result, percentages and margins calculated from reported amounts may differ from those presented, and growth 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" section are forward-looking. The words "will", "expect", "believe", "target", "estimate", "could", "should", "intend", "predict", "project" and similar expressions identify forward-looking statements. While the company believes that it has a reasonable basis for making forward-looking statements in this news release, they are not a guarantee of future performance or outcomes and there is no assurance that any of the other 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 by forward-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 from time-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 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 factors that the company believes are appropriate under the circumstances. Material assumptions and material risks may cause actual performance to differ from the company's expectations underlying its business outlook. In particular, the global economy has experienced substantial disruption due to concerns regarding economic effects associated with the macroeconomic backdrop and ongoing geopolitical risks. The company's business outlook assumes that uncertain macroeconomic and geopolitical conditions will continue to disrupt the economy and cause periods of volatility, however, these conditions may last substantially longer than expected and any worsening of the global economic or business environment could impact the company's ability to achieve its outlook and affect its results and other expectations. For a discussion of material assumptions and material risks related to the company's 2025 outlook 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 and the 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. This information may not be appropriate for other purposes. You are cautioned not to place undue reliance on forward-looking statements which 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-looking statements. CONTACTS MEDIA Gehna Singh Kareckas Senior Director, Corporate Affairs +1 613 979 4272 [email protected] INVESTORS Gary Bisbee, CFA Head of Investor Relations +1 646 540 3249 gary.bisbee@tr.com Thomson Reuters will webcast a discussion of its second-quarter 2025 results and its 2025 business outlook today beginning at 8:30 a.m. Eastern Daylight Time (EDT). You can access the webcast by visiting ir.tr.com. An archive of the webcast will be available following the presentation. Thomson Reuters Corporation Consolidated 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 equity method    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, net of 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 Thomson Reuters Corporation Consolidated Statement of Financial Position (millions of U.S. dollars) (unaudited) June 30,   December 31,  2025 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 Thomson Reuters Corporation Consolidated Statement of Cash Flow (millions of U.S. dollars) (unaudited) Three Months Ended Six Months Ended June 30, 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 Thomson Reuters Corporation Reconciliation 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 method    investments 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 ordinary course of business, which are a component of operating expenses, as well as adjustments related to acquired deferred revenue. Thomson Reuters Corporation Reconciliation 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 Corporation Reconciliation 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. Thomson Reuters Corporation Reconciliation 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 Six Months Ended Year Ended June 30, June 30, 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 ordinary course 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. Thomson Reuters Corporation Reconciliation 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 components may not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures. Thomson Reuters Corporation Reconciliation 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 components may not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures. Thomson Reuters Corporation Reconciliation 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 Corporation Reconciliation 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 those presented, and growth components may not total due to rounding. (1) Refer to page 24 for additional information on non-IFRS financial measures. Reconciliation of adjusted EBITDA margin(1) To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenue from its IFRS revenues. The charts below reconcile IFRS revenues to revenues used in the calculation of adjusted EBITDA 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 deferred revenue Revenues excluding fair value adjustments to acquired deferred revenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $709 - $709 $339 47.8 % Corporates 472 - 472 169 35.7 % Tax & Accounting Professionals 277 $10 287 113 39.3 % "Big 3" Segments Combined(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 deferred revenue Revenues excluding fair value adjustments to acquired deferred revenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $1,402 - $1,402 $675 48.1 % Corporates 1,013 - 1,013 382 37.7 % Tax & Accounting Professionals 637 $20 657 323 49.1 % "Big 3" Segments Combined(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 deferred revenue Revenues excluding fair value adjustments to acquired deferred revenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $727 - $727 $327 45.0 % Corporates 442 $2 444 163 36.8 % Tax & Accounting Professionals 250 - 250 91 36.8 % "Big 3" Segments Combined(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. 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 deferred revenue Revenues excluding fair value adjustments to acquired deferred revenue Adjusted EBITDA Adjusted EBITDA Margin Legal Professionals $1,448 - $1,448 $669 46.2 % Corporates 949 $5 954 356 37.3 % Tax & Accounting Professionals 578 - 578 272 47.1 % "Big 3" Segments Combined(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. Thomson Reuters Corporation Reconciliation of Net Debt(1)and Leverage Ratio of Net Debt to Adjusted EBITDA(1) (millions of U.S. dollars) (unaudited) June 30, December 31, 2025 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. Non-IFRS Financial Measures Definition Why Useful to the Company and Investors Adjusted EBITDA and the related margin Represents earnings or losses from continuing operations before tax expense or benefit, net interest expense, other finance costs or income, depreciation, amortization of computer software and other identifiable intangible assets, Thomson Reuters share of post-tax earnings or losses in equity method investments, other operating gains and losses, certain asset impairment charges and fair value adjustments, including those related to acquired deferred revenue. The related margin is adjusted EBITDA expressed as a percentage of revenues. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. Provides a consistent basis to evaluate operating profitability and performance trends by excluding items that the company does not consider to be controllable activities for this purpose. Also, represents a measure commonly reported and widely used by investors as a valuation metric, as well as to assess the company's ability to incur and service debt. Adjusted earningsand adjusted EPS Net earnings or loss including dividends declared on preference shares but excluding the post-tax impacts of fair value adjustments, including those related to acquired deferred revenue, amortization of acquired intangible assets (attributable to other identifiable intangible assets and acquired computer software), other operating gains and losses, certain asset impairment charges, other finance costs or income, Thomson Reuters share of post-tax earnings or losses in equity method investments, discontinued operations and other items affecting comparability. Acquired intangible assets contribute to the generation of revenues from acquired companies, which are included in the company's computation of adjusted earnings. The post-tax amount of each item is excluded from adjusted earnings based on the specific tax rules and tax rates associated with the nature and jurisdiction of each item. Adjusted EPS is calculated from adjusted earnings using diluted weighted-average shares and does not represent actual earnings or loss per share attributable to shareholders. Provides a more comparable basis to analyze earnings. These measures are commonly used by shareholders to measure performance. Effective tax rate on adjusted earnings Adjusted tax expense divided by pre-tax adjusted earnings. Adjusted tax expense is computed as income tax (benefit) expense plus or minus the income tax impacts of all items impacting adjusted earnings (as described above), and other tax items impacting comparability. In interim periods, the company also makes an adjustment to reflect income taxes based on the estimated full-year effective tax rate. Earnings or losses for interim periods under IFRS reflect income taxes based on the estimated effective tax rates of each of the jurisdictions in which Thomson Reuters operates. The non-IFRS adjustment reallocates estimated full-year income taxes between interim periods but has no effect on full-year income taxes. Provides a basis to analyze the effective tax rate associated with adjusted earnings. The company's effective tax rate computed in accordance with IFRS may be more volatile by quarter because the geographical mix of pre-tax profits and losses in interim periods may be different from that for the full year. Therefore, the company believes that using the expected full-year effective tax rate provides more comparability among interim periods. Free cash flow Net cash provided by operating activities and other investing activities, less capital expenditures, payments of lease principal and dividends paid on the company's preference shares. Helps assess the company's ability, over the long term, to create value for its shareholders as it represents cash available to repay debt, pay common dividends, fund share repurchases and acquisitions. Changes before the impact of foreign currency or at "constant currency" The changes in revenues, adjusted EBITDA and the related margin, and adjusted EPS before currency (at constant currency or excluding the effects of currency) are determined by converting the current and equivalent prior period's local currency results using the same foreign currency exchange rate. Provides better comparability of business trends from period to period. Changes in revenues computed on an "organic" basis Represent changes in revenues of the company's existing businesses at constant currency. The metric excludes the distortive impacts of acquisitions and dispositions from not owning the business in both comparable periods. Provides further insight into the performance of the company's existing businesses by excluding distortive impacts and serves as a better measure of the company's ability to grow its business over the long term. Accrued capital expenditures as a percentage of revenues Accrued capital expenditures divided by revenues, where accrued capital expenditures include amounts that remain unpaid at the end of the reporting period. For purposes of this calculation, revenues are before fair value adjustments to acquired deferred revenue. Reflects the basis on which the company manages capital expenditures for internal budgeting purposes.  "Big 3" segments The company's combined Legal Professionals, Corporates and Tax & Accounting Professionals segments. 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's business information service product offerings.  Net debt and leverage ratio of net debt to adjusted EBITDA Net debt is total indebtedness (excluding the associated unamortized transaction costs and premiums or discount) plus the currency related fair value of associated hedging instruments, and lease liabilities less cash and cash equivalents. Net debt to adjusted EBITDA is net debt divided by adjusted EBITDA for the previous twelve-month period ending with the current fiscal quarter. Provides a commonly used measure of a company's leverage and its ability to pay its debt. Given that the company hedges some of its debt to reduce risk, the company includes hedging instruments as it believes it provides a better measure of the total obligation associated with its outstanding debt. However, because the company intends to hold its debt and related hedges to maturity, the company does not consider the interest components of the associated fair value of hedges in its measurements. The company reduces gross indebtedness by cash and cash equivalents. The company's non-IFRS measure is aligned with the calculation of its internal target and is more conservative than the maximum ratio allowed under the contractual covenants in its credit facility. Please refer to reconciliations for the most directly comparable IFRS financial measures. SOURCE Thomson Reuters WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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