Thomson Reuters Corporation

Good day, everyone, and welcome to the Thompson Reuters second quarter earnings call. Today's conference is being recorded. At this time, I would like to turn the call over to Gary Bisbee, head of investor relations. Please go ahead.

Thank you, Ruth. Good morning, and thank you for joining us today for our second quarter 2025 earnings call. I'm joined by our CEO, Steve Hasker, our CFO, Mike Eastwood, and our Chief Product Officer, David Wong, who will discuss their results and a number of recent product launches and take your questions following our remarks. To enable us to get to as many questions as possible, we would appreciate it if you would limit yourself to one question and one follow-up each when we open the phone lines. Throughout today's presentation, when we compare performance period on period, we discuss revenue growth rates for currency, as well as on an organic basis. We believe this provides the best basis to measure the underlying performance of the business. Today's presentation contains forward-looking statements and non-IFRS and other supplementary financial measures, which are discussed on this special note slide. Actual results may differ materially due to number of risks and uncertainties discussed in reports and filings we provide to regulatory agencies. You may access these documents on our website or by contacting our investor relations department. Let me now turn it over to Steve Hasker.

Thank you, Gary, and thanks to all of you for joining us today. Good momentum continued in the second quarter, with revenue in line and margins modestly ahead of our expectations. Total company organic revenues rose 7%, with the big three segments growing by 9%. In addition, healthy revenue flow through and favourable expense timing boosted margins, driving profit ahead of expectations. We are reaffirming our full-year 2025 outlook for organic revenue, adjusted EBITDA margin and free cash flow, while improving our interest expense and depreciation and amortisation outlooks. We continue to see organic revenue growth in the range of 7% to 7.5%, including approximately 9% for the big three segments, and for our margins to rise by 75 basis points year over year to approximately 39%. Good momentum continues from many areas in our portfolio. This includes double-digit organic growth from key products, including co-council, co-council drafting, shore prep, safe-send, Pogero, indirect tax, and our international businesses. We continue to invest heavily in innovation and are pleased to have announced several meaningful product launches in recent weeks. As our Chief Product Officer, David Wong, and I will discuss shortly, we are leveraging agentic AI to bring significant new capabilities to our legal and our tax and accounting portfolios. These offerings leverage our authoritative content and deep domain expertise to complete complex multi-step work, helping our customers increase efficiency and effectiveness. Our capital capacity and liquidity remain a key asset that we are focused on deploying to create shareholder value. In the quarter, we repaid a $1 billion maturing bond issue and remain extremely well capitalized with net leverage of only 0.5 times at quarter end. We remain committed to a balanced capital allocation approach, and we continue to assess additional inorganic opportunities. With our estimated $10 billion of capital capacity through 2027, we are positioned to be both aggressive and opportunistic. Now to the results for the quarter. Second quarter organic revenues grew 7% in line with our expectations. Organic, recurring, and transactional revenue grew 9% and 7% respectively, while print revenue declined 7%. Our adjusted EBITDA increased 5% to $678 million, reflecting a 70 basis point margin increase to 37.8%, higher than anticipated due to healthy operating leverage and timing of expenses. Turning to second quarter results by segment. The big three segments delivered 9% organic revenue growth. Legal organic revenue grew 8% for the second consecutive quarter, driven by continued momentum from Westlaw and Co-Council and solid government growth. On the topic of government, we are pleased to have achieved in process status for the US FedRAMP program, demonstrating our strong commitment to meeting the rigorous cloud security requirements of US federal agencies. Orbit's organic revenue grew 9% driven by offerings in our legal, tax, and risk portfolios and the segments international businesses. Tax and accounting organic revenues grew 11% driven by our Latin American and US businesses. Royce's news organic revenues rose 5% with all major lines of business contributing. And lastly, global print organic revenues met our expectations, declining 7% year on year. In summary, we're pleased with our Q2 results. Let me close my prepared remarks with a few thoughts on the exciting pace of innovation that continues here at Thomson Royce's. We continue to make good progress executing against our product vision as we work to build AI more deeply into our offerings. In recent months, we have taken an important step forward introducing a number of agentic AI offerings across our legal and tax and accounting portfolios. As David will cover, we are really excited by these agentic offerings, which embed our AI capabilities deeper into customer workflows and more meaningfully leverage our key content assets and deep subject matter expertise. By enabling our solutions to complete more complex tasks, agentic AI creates an opportunity for Thomson Reuters to play a larger role in the success of our customers. Initial customer feedback on our new offerings is encouraging, and we look forward to providing updates as we continue to deliver against our roadmaps in the remainder of 2025 and beyond. Now let me hand it over to David to discuss these developments in more detail. Thanks, Steve. I share