Thomson Reuters Corporation

Recurring revenues comprised 84% of total Q4 2025 revenue, with 87% customer retention and the Big 3 segments delivering consistent organic growth through FY2021-FY2025 including the COVID downturn. Multi-year subscription contracts with law firms, corporations, and government agencies underpin forward visibility that is structurally above average for the professional services sector.

The Big 3 segments collectively account for 82% of FY2025 revenues across three distinct customer communities (legal, corporate, tax/accounting), with Reuters News and risk/investigative products comprising the remainder. While the segment spread is moderate, all three Big 3 segments address professional information and compliance workflows, creating meaningful revenue correlation in a broad economic downturn.

A substantial majority of revenues comes from North American customers, particularly the United States, reflecting the dominance of the U.S. legal market and the company's court infrastructure presence, with Westlaw powering e-filing for 78% of U.S. courts. International operations are present but do not represent a material share of consolidated revenue.

Adjusted EBITDA margin reached 39.2% in FY2025, and management has guided for 100 basis points of annual margin expansion through 2028, reflecting structural operating leverage as AI-enhanced subscription products scale on a largely fixed content and technology infrastructure. The USD 200 million annual AI investment creates a near-term cost headwind but is structurally reinforcing the asset-light subscription model.

The majority of revenue derives from subscription-based professional workflow products (Westlaw, tax and accounting platforms, CLEAR) embedded in daily compliance and research processes under multi-year contractual terms. These are non-discretionary services for regulated professions where switching carries meaningful operational cost and compliance risk.