Thomson Reuters reported its third-quarter 2025 earnings on November 4, 2025, with total revenue up 3% to $1.78 billion and organic revenue growing 7%. Despite beating revenue and adjusted earnings per share (EPS) estimates, the stock’s market reaction was negative, with shares sliding post-announcement. The company also reaffirmed its full-year 2025 outlook while raising its 2026 financial framework.
TORONTO, Nov. 4, 2025 /PRNewswire/ — Thomson Reuters (TSX/Nasdaq: TRI) today reported results for the third quarter ended September 30, 2025: Solid revenue momentum continued in the third quarter Total Company revenue increased 3% / Organic revenue increased 7% Organic revenue for the “Big 3” increased 9%
Third-quarter 2025 financial highlights
- Revenue: Total revenue increased 3% to $1.78 billion, with organic revenue growing 7% year-over-year. The “Big 3” segments—Legal Professionals, Corporates, and Tax & Accounting Professionals—collectively achieved 9% organic growth.
- Adjusted EPS: Adjusted EPS was $0.85, an increase from $0.80 in the third quarter of 2024, beating analyst expectations.
- Operating Profit: Operating profit saw a significant 43% increase, primarily due to a gain from selling a minority equity interest in the Elite business.
- Adjusted EBITDA: This metric rose 10% to $672 million, and the associated margin expanded to 37.7%.
- Cash Flow: Net cash provided by operating activities decreased 7% to $704 million, and free cash flow fell 11% to $526 million, due in part to higher capital expenditures.
- Strategic Initiatives: The company cited its ongoing AI-driven innovation strategy and the strength of its AI products, such as CoCounsel Legal, as key drivers of momentum.
Market Reaction and Challenges
- Stock Performance: Despite the solid operational results, the company’s shares fell following the announcement, with some investors showing concern over the free cash flow decline.
- Headwinds: The company faced some challenges, including a slower-than-expected recovery in commercial print volumes and a number of government contract cancellations and downgrades.
- AI Competition: While confident in its AI products, the company also acknowledged increasing competition in the AI assistant space.