Q2 2025 Thomson Reuters Corp Earnings Call

Operator: Call over to Gary Bisbee, Head of Investor Relations. Please go ahead.

Please go ahead.

Thank you Ruth.

And thank you for joining us today for our second quarter 2025 earnings call I'm joined by our CEO, Steve <unk>, Our CFO, Mike Eastwood and our Chief product Officer, David Wang who will discuss our results in a number of recent product launches and take your questions. Following Mark's.

Gary Bisbee: Thank you, Ruth. Good morning and thank you for joining us today for our Q2 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 our results and a number of recent product launches, and take your questions following the remarks. To enable us to get to as many questions as possible, we would appreciate it if you would limit yourself to 1 question and 1 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.

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 today's presentation.

Ruth: Please stand by. Good day, everyone, and welcome to the Thomson 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.

Gary Bisbee: Actual results may differ materially due to a 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 Stephen Hasker.

Please stand by.

<unk> contains forward looking statements and non <unk> and other supplementary financial measures, which are discussed on this special note slide actual results may differ materially due to a 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.

Mike Eastwood: 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, Stephen Hasker, our CFO, Mike Eastwood, and our chief product officer, David Wong, who will discuss our 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.

Good day, everyone and welcome to the Thompson. Reuters second quarter earnings call today is 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

Gary Bisbee: Actual results may differ materially due to a 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.

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 favorable 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 amortization 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 for many areas in our portfolio.

Relations Department, let me now turn it over to Steve.

Thank you Gary and thanks to all of you for joining us today Goodman.

Steve Hasker: Thank you, Gary, and thanks to all of you for joining us today. Good momentum continued in Q2 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%. Healthy revenue flow-through and favorable 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 amortization 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.

Good momentum continued in the second quarter with revenue in line and margins modestly ahead of our expectations total.

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 eastwoods and our chief product officer, David Wong will discuss their results and a number of recent product launches and take your questions following our remarks.

Total company organic revenues rose, 7% with the big three segments growing by 9%. In addition, healthy revenue flow through and favorable expense timing boosted margins driving profit ahead of expectations.

To enable us to get to as many questions as possible. We would appreciate it if you would limit yourself to 1 question and 1 follow-up each when we open the phone lines,

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 amortization outlooks.

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.

Mike Eastwood: Actual results may differ materially due to a 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 Stephen Hasker.

We continue to see organic revenue growth in the range of seven to seven 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%.

Steve Hasker: This includes double-digit organic growth from key products, including CoCounsel, CoCounsel Drafting, SurePrep, Safe Sign Technologies, Pagero, 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.

Stephen Hasker: Thank you, Gary, and thanks to all of you for joining us today. Good momentum continued in the second quarter, 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 favorable 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 amortization 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 for many areas in our portfolio.

Today's presentation contains forward-looking statements and non-ifrs and other supplementary Financial measures which are discussed on this special notes. Slide actual results, May differ materially due to a 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 continues for many areas in our portfolio.

Good momentum continued in the second quarter with Revenue in line and margins modestly ahead of our expectations.

This includes double digit organic growth from key products, including co counsel co counsel drafting short trip Saif sent to Garo indirect tax and our international businesses.

Steve Hasker: This includes double-digit organic growth from key products including CoCounsel Drafting, SurePrep, SafeSend, Pagero, 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 continue to invest heavily in innovation and are pleased to have announced several meaningful product launches in recent weeks.

Total company organic revenues Rose 7% with the big 3 segments growing by 9% in addition, healthy Revenue flow through and favorable expense timing, boosted, margins driving profit ahead of expectations.

As our Chief product Officer, David Wong and I will discuss shortly.

We are leveraging <unk> AI to bring significant new capabilities to our legal.

We are reaffirming our full-year 2025 outlook for organic revenue, adjusted EBITDA margin, and free cash flow while improving our interest expense and decreases. And

And our tax and accounting portfolios.

These offerings leverage our thoratec is 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 <unk>.

we continue to see organic Revenue growth in the range of 7 to 7 and a half percent, including approximately 9% for the Big 3, segments, and for our margins to rise by 75 basis points year over year to approximately 39%

Stephen Hasker: This includes double-digit organic growth from key products, including co-counsel, co-counsel drafting, shore prep, Safe Send, Figaro, 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.

Good momentum continues for many areas in our portfolio.

This includes double digit organic growth from keep products including co-consul.

Shareholder value in the quarter, we repaid $1 billion maturing bond issue.

Steve Hasker: 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 CoCounsel and solid government growth.

And remain extremely well capitalized with net leverage of only <unk> five times at quarter end.

Co-consul drafting Shore prep safe, send Pajero indirect tax and our International businesses.

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, and we are positioned to be both aggressive and opportunistic.

We continue to invest heavily in Innovation and are pleased to have announced several meaningful product launches in recent weeks.

Steve Hasker: 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. To the results for the quarter. Q2 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 Q2 results by segment, the big 3 segments delivered 9% organic revenue growth. Legal organic revenue grew 8% for the second consecutive quarter, driven by continued momentum from Westlaw and CoCounsel and solid government growth.

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.

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%.

These offerings, leverage our authoritative content and deep domain expertise to complete complex, multistep work, helping our customers, increase efficiency and effectiveness.

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.

Our Capital capacity and liquidity remain a key asset that we are focused on deploying to create shareholder value. In the quarter, we repay to 1 billion dollar maturing bond issue.

Stephen Hasker: 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-counsel and solid government growth.

And remain extremely well capitalized with net. Leverage of only 0.5 times at quarter end.

Turning to second quarter results by segment, the Big three segments delivered 9% organic revenue growth legal organic revenue grew 8% for the <unk>.

Steve Hasker: On the topic of government, we are pleased to have achieved in-process status for the U.S. FedRAMP program, demonstrating our strong commitment to meeting the rigorous cloud security requirements of U.S. federal agencies. Corporate organic revenue grew 9%, driven by offerings in our legal, tax, and risk portfolios and the segment's international businesses. Tax and accounting organic revenues grew 11%, driven by our Latin American and U.S. businesses. Reuters News organic revenues rose 5%, with all major lines of business contributing. 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 Reuters. We continue to make good progress executing against our product vision as we work to build AI more deeply into our offerings.

<unk> consecutive quarter, driven by continued momentum from Westwood and co counsel and solid government growth.

We remain committed to a balanced Capital, allocation approach and we continue to assess additional inorganic opportunities with our estimated 10 billion dollars of capital capacity, through 2027. We are positioned to be both aggressive and opportunistic.

On the topic of government. We are pleased to achieve to have achieved in process status for the U S. Fed ramp program, demonstrating our strong commitment to meeting the rigorous cloud security requirements of U S federal agencies.

Steve Hasker: 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. Corporate's organic revenue grew 9%, driven by offerings in our legal, tax, and risk portfolios, and the segment's international businesses. Tax and accounting organic revenues grew 11%, driven by our Latin American and US businesses. Reuters News organic revenues rose 5%, with all major lines of business contributing. 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 Reuters. We continue to make good progress executing against our product vision as we work to build AI more deeply into our offerings.

Second quarter organic revenues grew 7% in line with their expectations. Organic recurring and transactional revenue grew 9% and 7% respectively, while print Revenue declined 7%.

Corporates organic revenue grew 9% driven by offerings in our legal tax and risk portfolios and the segments International businesses.

Our adjusted, evitar increased 5%.

It's actually accounting, Okay organic revenues grew 11% driven by our Latin American and U S businesses.

To 678 million reflecting a 70 basis, point margin increased to 37.8% higher than anticipated, due to healthy operating leverage and timing of expenses.

Reuters 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.

Stephen Hasker: 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. Corporate organic revenue grew 9%, driven by offerings in our legal, tax, and risk portfolios and the segment's international businesses. Tax and accounting organic revenues grew 11%, driven by our Latin American and US businesses. Reuters 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 Reuters. We continue to make good progress executing against our product vision as we work to build AI more deeply into our offerings.

Turning to second quarter results by segment, the Big 3 segments, delivered 9% organic Revenue, growth legal, organic Revenue, grew, 8% for the second consecutive quarter driven by continued momentum from Westlaw and co-consul and solid government growth.

Let me close my prepared remarks with a few thoughts on the exciting pace of innovation that continues here at Thomson Reuters.

Steve Hasker: 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.

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 <unk> AI offerings across our legal and tax <unk> accounting portfolios.

On the topic of government, we are pleased to have ACH to have achieved in process status. For the US fed ramp program, demonstrating our strong commitment to meeting the rigorous Cloud security requirements of US federal agencies.

Steve Hasker: 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.

corporates, organic Revenue grew 9% driven by offerings in our legal, tax and risk portfolios, and the segments International businesses

As David will cover we are really excited by these <unk> offerings, which embed AI capabilities deeper into customer workflows and more meaningfully leverage.

Tax and accounting, okay? Organic revenues, grew 11% driven by a Latin American and US businesses.

Content assets and deep subject matter expertise.

Reuters News, organic revenues, Rose 5% with all major lines of business contributing.

By enabling our solutions.

To complete more complex tasks.

And lastly, Global print organic revenues Meadow expectations declining 7% year on year.

<unk> II creates an opportunity for Thomson Reuters to play a larger role in the success of our customers.

In summary, we're pleased with our Q2 results.

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.

Let me close my prepared, remarks with a few thoughts on the exciting pace of innovation that continues here at Thompson Reuters.

Gary Bisbee: Thanks, Steve. I share your excitement over the accelerating pace of innovation. Let me start with a few thoughts on Agentic AI, which is a key capability driving the new offerings I'll discuss. There are many definitions of Agentic, so let me share what we believe are the core characteristics of Agentic systems. They use advanced reasoning models supported by an AI assistant that can help orchestrate complex work. They have access to tools, they can use these tools to complete tasks, and they can adapt and respond to new information, changing course as needed to achieve their outcomes. Due to these capabilities, Agentic AI systems can complete complex multi-step assignments. Our Agentic platforms have been in development for more than a year, and we see them as transformational to our ability to serve our professional markets.

Stephen Hasker: 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.

Sir your excitement over the accelerating pace of innovation let.

David Wong: Thanks, Steve. I share your excitement over the accelerating pace of innovation. Let me start with a few thoughts on agentic AI, which is a key capability driving the new offerings I'll discuss. There are many definitions of agentic, so let me share what we believe are the core characteristics of agentic systems. They use advanced reasoning models supported by an AI assistant that can help orchestrate complex work. They have access to tools, and they can use these tools to complete tasks, and they can adapt and respond to new information, changing course as needed to achieve their outcomes. Due to these capabilities, agentic AI systems can complete complex multistep assignments. Our agentic platforms have been in development for more than a year, and we see them as transformational to our ability to serve our professional markets.

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.

Let me start with a few thoughts on <unk>, AI, which is a key capability driving the new offerings I'll discuss.

There are many distributions of <unk>. So let me share what we believe are the core characteristics of <unk> systems.

They use advanced reasoning models supported by an AI assistant that can help orchestrate complex work.

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 to complete more complex tasks.

They have access to tools and they can use these tools to complete tasks.

And they can adapt and respond to new information changing course as needed to achieve their outcomes.

And due to these capabilities agenda AI systems can't complete complex multi step assignments.

Gary Bisbee: We also believe Thomson Reuters is uniquely positioned to deliver professional-grade Agentic AI solutions since we bring those four essential capabilities. First, we offer leading AI assistants with advanced reasoning capabilities in CoCounsel Legal and CoCounsel for Tax, Audit, and Accounting. Second, we have comprehensive proprietary content and insights in Westlaw, Practical Law, and Checkpoint. Third, we have a portfolio of leading workflow software tools and analytics. Finally, we have substantial domain expertise through our more than 2,500 legal and tax editors and subject matter experts. In our Agentic workflows, our agents initially follow predetermined steps and guidelines mapped out by our domain experts, leveraging our content, software, and tools along the way. This approach allows them to deliver on real-world tasks, helping professionals move beyond prompting and start delegating. I'll now highlight several key recent product launches.

Agentic AI creates an opportunity for Thompson. 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.

Our agent Tech platforms have been in development for more than a year and we see them as transformational to our ability to serve our professional markets.

Mike Eastwood: Thanks, Steve. I share your excitement over the accelerating pace of innovation. Let me start with a few thoughts on Agentic AI, which is a key capability driving the new offerings I'll discuss. There are many traditions of Agentic, so let me share what we believe are the core characteristics of Agentic systems. They use advanced reasoning models supported by an AI assistant that can help orchestrate complex work. They have access to tools, and they can use these tools to complete tasks, and they can adapt and respond to new information, changing course as needed to achieve their outcomes. And due to these capabilities, Agentic AI systems can complete complex multi-step assignments. Our Agentic platforms have been in development for more than a year, and we see them as transformational to our ability to serve our professional markets.

Now, let me hand it over to David to discuss these developments in more detail.

We also believe Thomson Reuters is uniquely positioned to deliver professional grade Agentic AI solutions since we bring those four essential capabilities.

Thanks, Steve. I share your excitement over the accelerating pace of innovation.

David Wong: We also believe Thomson Reuters is uniquely positioned to deliver professional-grade agentic AI solutions since we bring those four essential capabilities. First, we offer leading AI assistants with advanced reasoning capabilities in CoCounsel Legal and CoCounsel for Tax, Audit, and Accounting. Second, we have comprehensive proprietary content and insights in Westlaw, Practical Law, and Checkpoint. Third, we have a portfolio of leading workflow software tools and analytics. Finally, we have substantial domain expertise through our more than 2,500 legal and tax editors and subject matter experts. In our agentic workflows, our agents initially follow predetermined steps and guidelines mapped out by our domain experts, leveraging our content, software, and tools along the way. This approach allows them to deliver on real-world tasks, helping professionals move beyond prompting and start delegating. I'll now highlight several key recent product launches.

Let me throw with a few thoughts on agentic AI, which is a key capability. Driving the new offerings. I'll discuss

First we offer leading AI assistance with advanced reason capabilities in co counsel legal and co counsel for tax audit and accounting.

There are many institutions of agentic, so let me share, what we believe are. The core characteristics of agentic systems.

Second we have comprehensive proprietary content and insights in west La practical law and checkpoint.

They use advanced reasoning models supported by an AI assistant that can help orchestrate complex work.

Third we have a portfolio of leading workflow software tools and analytics.

They have access to tools and they can use these tools to complete tasks.

And finally, we have substantial domain expertise through our more than 2500 legal and tax editors and subject matter experts.

And they can adapt and respond to new information. Changing course, as needed to achieve their outcomes.

And due to these capabilities, agentic AI systems can complete complex multistep assignments?

In our Agentic workflows, our agents initially follow predetermined steps in guidelines mapped out by our domain experts leveraging our content software and tools along the way.

Mike Eastwood: We also believe Thomson Reuters is uniquely positioned to deliver professional-grade Agentic AI solutions since we bring those four essential capabilities. First, we offer leading AI assistants with advanced reasoning capabilities in co-counsel legal and co-counsel for tax, audit, and accounting. Second, we have comprehensive proprietary content and insights in Westlaw, Practical Law, and Checkpoint. Third, we have a portfolio of leading workflow software tools and analytics. And finally, we have substantial domain expertise through our more than 2,500 legal and tax editors and subject matter experts. In our Agentic workflows, our agents initially follow predetermined steps and guidelines mapped out by our domain experts, leveraging our content, software, and tools along the way. This approach allows them to deliver on real-world tasks, helping professionals move beyond prompting and start delegating. I'll now highlight several key recent product launches.

Our agentic platforms have been in development for more than a year and we see them as transformational to our ability to serve our professional markets.

This approach allows us to deliver on real world tasks, helping professionals move beyond prompting and start delegated.

Gary Bisbee: In June, we launched CoCounsel for Tax, Audit, and Accounting, an Agentic AI platform powered by the 2024 acquisition of Materia. CoCounsel for Tax automates a growing number of complex multi-step tasks, ranging from client file review to memo drafting to compliance checks. It leverages training by our subject matter experts and Thomson Reuters' authoritative Checkpoint content to eliminate manual work, increase efficiency, and improve accuracy, all with the transparency, precision, and accountability professionals require. In mid-July, we announced two exciting new software tools powered by CoCounsel for Tax, Ready to Review and Ready to Advise. Ready to Review is an Agentic AI-powered tax preparation solution that automates the creation of the first draft of a tax return. AI agents autonomously work to extract and map data, run that data through our tax engines, and diagnose and resolve errors that come up.

We also believe, Thompson Reuters is uniquely positioned to deliver professional grade, agentic AI Solutions. Since we bring those 4 essential capabilities,

I will now highlight several key recent product line.

In June we launched co counsel for tax audit and accounting and <unk> AI platform powered by the 2020 for acquisition of material.

David Wong: In June, we launched CoCounsel for Tax, Audit, and Accounting, an agentic AI platform powered by the 2024 acquisition of Materia. CoCounsel for Tax automates a growing number of complex multistep tasks, ranging from client file review to memo drafting to compliance checks. It leverages training by our subject matter experts and Thomson Reuters' authoritative Checkpoint content to eliminate manual work, increase efficiency, and improve accuracy, all with the transparency, precision, and accountability professionals require. In mid-July, we announced two exciting new software tools powered by CoCounsel for Tax, Ready to Review and Ready to Advise. Ready to Review is an agentic AI-powered tax preparation solution that automates the creation of the first draft of a tax return. AI agents autonomously work to extract and map data, run that data through our tax engines, and diagnose and resolve errors that come up.

First we offer leading AI assistance with Advanced reasoning capabilities in co-consul legal and co-consul for tax audit and accounting.

Co counsel for tax automate a growing number of complex multistep tasks ranging from client file review to memo drafting to compliance checks that leverages training by our subject matter experts and Thomson Reuters authoritative checkpoint content to eliminate manual work increased efficiency and improved accuracy.

Second, we have comprehensive proprietary content and insights in West law, practical law and checkpoint.

Third, we have a portfolio of leading workflows, software, tools, and analytics.

and finally, we have substantial domain expertise through our more than 2500 legal and tax editors and subject matter experts

All with the transparency precision and accountability professionals require.

In mid July we announced two exciting new software tools powered by co counsel for tax ready to review and ready to advise.

And tools along the way. This approach allows them to deliver on real-world tasks, helping professionals move beyond prompting and start delegating.

Ready to review isn't a gentex AI powered tax preparation solution that automates the creation of the first draft of the tax return.

I'll now highlight several key recent product launch

Mike Eastwood: In June, we launched co-counsel for tax, audit, and accounting, an Agentic AI platform powered by the 2024 acquisition of Materia. Co-counsel for tax automates a growing number of complex multi-step tasks, ranging from client file review to memo drafting to compliance checks. It leverages training by our subject matter experts and Thomson Reuters' authoritative checkpoint content to eliminate manual work, increase efficiency, and improve accuracy, all with the transparency, precision, and accountability professionals require. In mid-July, we announced two exciting new software tools powered by co-counsel for tax, Ready to Review and Ready to Advise. Ready to Review is an Agentic AI-powered tax preparation solution that automates the creation of the first draft of a tax return. AI agents autonomously work to extract and map data, run that data through our tax engines, and diagnose and resolve errors that come up.

Gary Bisbee: This results in a quality first draft return while eliminating significant manual effort and improving accuracy. Ready to Advise is an Agentic AI-powered tax planning and advisory solution for CPA firms. The solution leverages our tax expertise and authoritative content and analyzes the client's data to identify tax planning strategies tailored to that client, which are ranked by relevance and potential impact. It provides step-by-step guidance, supporting authoritative knowledge and workflow tools that enable CPA firms to take a scalable approach to tax advisory services, generating incremental revenue for their businesses. Used together, accountants can save time through Ready to Review automation, which can be redirected to the delivery of higher-value services, including revenue-generating advisory work with the help of Agentic Advice. Ready to Advise is in the market today, and Ready to Review is currently in beta with a commercial launch scheduled for the fourth quarter.

AI agents autonomous Lee work to extract and map data run that data through our tax engines and diagnose and resolve errors that come up this.

in June, we launched co-consul for tax audit and accounting and agentic AI platform powered by the 2024 acquisition of material

This results in a quality first draft return, while eliminating significant manual effort and improving accuracy.

David Wong: This results in a quality first draft return while eliminating significant manual effort and improving accuracy. Ready to Advise is an agentic AI-powered tax planning advisory solution for CPA firms. The solution leverages our tax expertise and authoritative content and analyzes the client's data to identify tax planning strategies tailored to that client, which are ranked by relevance and potential impact. It provides step-by-step guidance, supporting authoritative knowledge and workflow tools that enable CPA firms to take a scalable approach to tax advisory services, generating incremental revenue for their businesses. Used together, accountants can save time through Ready to Review automation, which can be redirected to the delivery of higher-value services, including revenue-generating advisory work with the help of Advise. Ready to Advise is in the market today, and Ready to Review is currently in beta with a commercial launch scheduled for Q4.

Ready to advise us in Agentic AI powered tax planning advisory solution for CPA firms the solution.

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go Council for tax automates. A growing number of complex, multi-step tasks ranging from client file review to memo drafting to compliance. Checks IT leverages training by our subject matter experts and Thompson, Reuters authoritative, checkpoint, content to eliminate manual work, increase efficiency, and improve accuracy, all with the transparency precision and accountability professionals require.

Which are ranked by relevance and potential impact.

In mid July, we announced 2, exciting new software tools, powered by co-consul for tax.

It provides step by step guidance supporting authoritative knowledge and workflow tools that enable CPA firms take a scalable approach to tax advisory services generating incremental revenue for their businesses.

Ready to review and ready to advise.

Ready to review is an agentic AI powered tax, preparation solution that automates the creation of the first draft of a tax return.

Used together accountants can save time through ready to review automation, which can be redirected to the delivery of higher value services, including revenue generating revenue generating advisory work with the health.

Mike Eastwood: This results in a quality first draft return while eliminating significant manual effort and improving accuracy. Ready to Advise is an Agentic AI-powered tax planning advisory solution for CPA firms. The solution leverages our tax expertise and authoritative content and analyzes the client's data to identify tax planning strategies tailored to that client, which it ranks by relevance and potential impact. It provides step-by-step guidance, supporting authoritative knowledge and workflow tools that enable CPA firms to take a scalable approach to tax advisory services, generating incremental revenue for their businesses. Used together, accountants can save time through Ready to Review automation, which can be redirected to the delivery of higher value services, including revenue-generating advisory work with the help of Advice. Ready to Advise is in the market today, and Ready to Review is currently in beta with a commercial launch scheduled for the fourth quarter.

AI agents, autonomously work to extract and map data. Run that data through our tax engines and diagnose and resolve errors that come up.

Gary Bisbee: Yesterday, we announced a series of exciting new capabilities for our law firm and general counsel customers with the launch of CoCounsel Legal, a next-generation AI offering that combines a new Westlaw experience, Practical Law, CoCounsel Core, and CoCounsel Drafting into a single unified solution. With this new offering, CoCounsel orchestrates complex workflows, leveraging our Westlaw and Practical Law content and tools to deliver unique and valuable outcomes across litigation, transactional work, and regulatory analysis. In addition to deeper product integration, there is significant incremental capability and innovation in CoCounsel Legal, including deep research and guided workflows, which I'll briefly explain. Deep research, which is integrated into CoCounsel Legal and is also available through the new Westlaw Advantage product, is our latest and largest step change in legal research capabilities.

Five.

Ready to advise us in the market today and ready to review is currently in beta with commercial launch scheduled for the fourth quarter.

This results in a quality. First draft return, while eliminating significant manual effort and improving accuracy.

Ready to advise is an agentic AI, powered tax planning advisory solution for CPA firms.

Yesterday, we announced a series of exciting new capabilities for a law firm in general counsel customers with the launch of co counsel legal.

David Wong: Yesterday, we announced a series of exciting new capabilities for our law firm and general counsel customers with the launch of CoCounsel Legal, a next-generation AI offering that combines a new Westlaw experience, Practical Law, CoCounsel Core, and CoCounsel Drafting into a single unified solution. With this new offering, CoCounsel orchestrates complex workflows leveraging our Westlaw and Practical Law content and tools to deliver unique and valuable outcomes across litigation, transactional work, and regulatory analysis. In addition to deeper product integration, there is significant incremental capability and innovation in CoCounsel Legal, including Deep Research and guided workflows, which I'll briefly explain. Deep Research, which is integrated into CoCounsel Legal and is also available through the new Westlaw Advantage product, is our latest and largest step change in legal research capabilities.

The solution, leverages our tax expertise and authoritative content.

Next generation AI offering that combines our new westleigh experience practical law co capital Corps and co counsel drafting into a single unified solution.

And analyzes the client's data to identify tax planning strategies tailored to that client.

Ranks by relevance and potential impact.

With this new offering co counsel orchestrates complex workflows, leveraging our west la and practical content and tools to deliver unique and valuable outcomes across litigation transactional work and regulatory analysis.

It provides step-by-step guidance supporting authoritative knowledge and workflow tools, that enable CPA firms to take a scalable approach to tax advisory Services generating incremental revenue for their businesses.

And in addition to deeper product integration, there is significant incremental capability and innovation and co counts illegal, including deep research and guided workflows, which I'll briefly explain.

Used together accountants can save time through ready to review automation, which can be redirected to the delivery of higher value services, including Revenue, generating, a revenue generating advisory work with the help.

ready to advise is in the market today, and ready to review is currently in beta with commercial launch, scheduled for the fourth quarter,

Gary Bisbee: Deep research is the legal industry's first professional-grade Agentic AI research capability built to mimic the work of experienced legal researchers planning, reviewing, and adapting when encountering new information during a research process. This is not just generic AI layered on top of legal content. We've built something fundamentally more advanced: AI agents trained, equipped, and trusted to use Westlaw's exclusive research toolset with the curated and up-to-date content of Westlaw and Practical Law to move through complex legal research workflows with unprecedented speed and precision. With Westlaw Advantage, what used to take hours now takes minutes, and what used to be manual is now orchestrated by AI agents designed specifically for the legal domain. The resulting outputs are highly structured and detailed legal research reports that outperform other AI research capabilities and set a new standard when compared to our market-leading AI-assisted research tool in Westlaw Precision.

Deep research, which is integrated into co counsel legal and is also available through the new westleigh advantage product.

Mike Eastwood: Yesterday, we announced a series of exciting new capabilities for our law firm and general counsel customers with the launch of Co-Counsel Legal, a next-generation AI offering that combines a new Westlaw experience, practical law, co-counsel core, and co-counsel drafting into a single unified solution. With this new offering, co-counsel orchestrates complex workflows, leveraging our Westlaw and practical content and tools to deliver unique and valuable outcomes across litigation, transactional work, and regulatory analysis. And in addition to deeper product integration, there is significant incremental capability and innovation in Co-Counsel Legal, including deep research and guided workflows, which I'll briefly explain. Deep research, which is integrated into Co-Counsel Legal and is also available through the new Westlaw Advantage product, is our latest and largest step change in legal research capabilities.

Is our latest and largest step change in legal research capabilities.

Yesterday we announced a series of exciting new capabilities for a law firm and general Council, customers with the launch of co-consul legal.

Deep research is the legal industry is first professional grade Agentic AI research capability built to mimic the work of experienced legal researchers planning.

David Wong: Deep Research is the legal industry's first professional-grade agentic AI research capability, built to mimic the work of experienced legal researchers, planning, reviewing, and adapting when encountering new information during a research process. This is not just generic AI layered on top of legal content. We've built something fundamentally more advanced. AI agents trained, equipped, and trusted to use Westlaw's exclusive research tool set with the curated and up-to-date content of Westlaw and Practical Law to move through complex legal research workflows with unprecedented speed and precision. With Westlaw Advantage, what used to take hours now takes minutes, and what used to be manual is now orchestrated by AI agents designed specifically for the legal domain. The resulting outputs are highly structured and detailed legal research reports that outperform other AI research capabilities and set a new standard when compared to our market-leading AI-assisted research tool in Westlaw Precision.

A Next Generation, AI offering that combines a new Westlaw experience, practical law, co-consul core, and co-consul, drafting into a single unified solution.

Planning reviewing and adapting went into countering new information during our research process.

This is not just generic AI layered on top of legal content.

We've built something fundamentally more advanced AI agents trained in trained.

With this new offering co-consul orchestrates complex workflows leveraging, our Westlaw and practical content and tools to deliver unique and valuable outcomes across litigation transactional, work and Regulatory analysis.

Trained equipped and trusted to use westleigh exclusive research toolset with the curated an update a content of west La and practical law to move through complex legal research workflows with unprecedented speed and precision.

and in addition to deeper product integration, there is significant incremental capability and innovation in co-consul legal, including deep, research and guided workflows, which I'll briefly explain

With west La advantage, what used to take hours now takes minutes and what used to be manual is now orchestrated by agents designed specifically for the legal domain.

deep research, which is integrated into co-consul legal and is also available through the new Westlaw Advantage product.

Mike Eastwood: Deep research is the legal industry's first professional-grade Agentic AI research capability built to mimic the work of experienced legal researchers, planning, reviewing, and adapting when encountering new information during a research process. This is not just generic AI layered on top of legal content. We've built something fundamentally more advanced: AI agents trained, equipped, and trusted to use Westlaw's exclusive research toolset with the curated and up-to-date content of Westlaw and practical law to move through complex legal research workflows with unprecedented speed and precision. With Westlaw Advantage, what used to take hours now takes minutes, and what used to be manual is now orchestrated by AI agents designed specifically for the legal domain. The resulting outputs are highly structured and detailed legal research reports that outperform other AI research capabilities and set a new standard when compared to our market-leading AI-assisted research tool in Westlaw Precision.

Is our latest and largest step change in legal research capabilities.

The resulting outputs are highly structured and detailed legal research reports outperformed other AI research capabilities and set a new standard when compared to our market, leading AI assisted research tool and west while precision.

Gary Bisbee: A second significant advancement is the introduction of our Agentic guided workflows to CoCounsel. These new workflows leverage our AI agents to execute multi-step tasks scripted by our experts, drawing on Westlaw and Practical Law knowledge. In the third quarter, we plan to launch more than 15 of these guided workflows, spanning both litigation and transactional law and including a number of practice-area-specific. We believe they will resonate strongly with law firms, in-house legal teams, courts, and district attorneys. Let me share an example of a new guided workflow. The Analyze Merger Control Filing Requirements workflow streamlines complex multi-step compliance obligations for M&A transactions by analyzing deal information against Practical Law's global content to then identify potential risks and requirements, generate automated filing checklists, and provide actionable insights. I'll now turn it over to Mike to review our financial performance.

Deep research is the legal industry's. First professional-grade, agentic AI research. Capability built to mimic. The work of experienced legal researchers.

A second significant advancement is the introduction of our agent guided workflows to co Council.

Planning reviewing and adapting when an encountering new information during a research process.

David Wong: A second significant advancement is the introduction of our agentic guided workflows to CoCounsel. These new workflows leverage our AI agents to execute multi-step tasks scripted by our experts, drawing on Westlaw and Practical Law knowledge. In Q3, we plan to launch more than 15 of these guided workflows, spanning both litigation and transactional law and including a number of practice areas to support. We believe they will resonate strongly with law firms, in-house legal teams, courts, and district attorneys. Let me share an example of a new guided workflow. The Analyze Merger Control Filing Requirements workflow streamlines complex multi-step compliance obligations for M&A transactions by analyzing deal information against Practical Law's global content to then identify potential risks and requirements, generate automated filing checklists, and provide actionable insights. I'll now turn it over to Mike to review our financial performance.

These new workflows leverage our AI agents to execute multi step tasks scripted by our experts drawing on west la and practical knowledge.

In the third quarter, we plan to launch more than 15 of these guided workflows spanning both litigation and transactional law and including a number of practice areas.

This is not just generic, AI layered on top of legal content. We've built something fundamentally more advanced AI agents trained in a trained equipped and trusted to use, Westlaw exclusive research tool set with the curated and up-to-date content of Westlaw, and practical law to move through complex, legal research, workflows with unprecedented speed and precision.

We believe they will resonate strongly with law firms in house legal teams courts and district attorneys.

Let me share an example of a new guided workflow.

With Westlaw Advantage, what used to take hours now, takes minutes and what he used to be manual is now orated ai agents, designed specifically, for the legal domain.

The annualized merger control filing requirements workflow streamlines complex multistep compliance obligations for M&A transactions by analyzing deal information against practical loss global content to then identify potential risks in requirements generate automated filing checklists and provide actionable insights.

Mike Eastwood: Thanks, David. Thanks again for joining us today. As a reminder, I will talk through revenue growth before currency and on an organic basis. Let me start by discussing the second quarter revenue performance for our big three segments. Organic revenue grew 9% in the second quarter, stable with the first quarter and continuing the strong trend from recent periods. Legal professionals' organic revenue grew 8% for the second consecutive quarter, driven by Westlaw, CoCounsel, CoCounsel Drafting, LEIR, and our international businesses. Government grew 7%. In our corporate segment, organic revenues grew 9%. Recurring revenue grew 9%, while transactional rose 4%. Direct and Indirect Tax, Practical Law, Figaro, and our international businesses were key contributors. Tax and accounting delivered another strong quarter with organic growth of 11%. Recurring and transactional revenues grew 9% and 14% respectively. Our Latin American business, Safe Sign Technologies, Ultra Tax, and SurePrep were key drivers.

The resulting outputs are highly structured and detailed legal research reports that outperform other AI research capabilities and set a new standard when compared to our Market leading AI assisted research tool in Westlaw precision.

Mike Eastwood: A second significant advancement is the introduction of our Agentic guided workflows to co-counsel. These new workflows leverage our AI agents to execute multi-step tasks scripted by our experts, drawing on Westlaw and practical law knowledge. In the third quarter, we plan to launch more than 15 of these guided workflows, spanning both litigation and transactional law and including a number of practice areas for stakeholders. We believe they will resonate strongly with law firms, in-house legal teams, courts, and district attorneys. Let me share an example of a new guided workflow. The analyze merger control filing requirements workflow streamlines complex multi-step compliance obligations for M&A transactions by analyzing deal information against practical law's global content to then identify potential risks and requirements, generate automated filing checklists, and provide actionable insights. I'll now turn it over to Mike to review our financial performance.

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Second significant advancement is the introduction of our agentic, guided workflows to co-consul.

I'll now turn it over to Mike to review our financial performance.

Thanks, David Thanks, again for joining us today.

Mike Eastwood: Thanks, David. Thanks again for joining us today. As a reminder, I will talk through revenue growth before currency and on an organic basis. Let me start by discussing the Q2 revenue performance for our big three segments. Organic revenue grew 9% in Q2, stable with Q1 and continuing the strong trend from recent periods. Legal professionals organic revenue grew 8% for the second consecutive quarter, driven by Westlaw, CoCounsel Drafting, CLEAR, and our international businesses. Government grew 7%. In our corporate segment, organic revenues grew 9%. Recurring revenue grew 9%, while transactional rose 4%. Direct and indirect tax, Practical Law, Pagero, and our international businesses were key contributors. Tax & Accounting delivered another strong quarter with organic growth of 11%. Recurring and transactional revenues grew 9% and 14% respectively. Our Latin America business, SafeSend, UltraTax, and SurePrep were key drivers.

As a reminder, I will talk to revenue growth before currency and on an organic basis, let me start by discussing the second quarter revenue performance for our big three segments.

Step tasks scripted by your experts drawing on Westlaw, and practical law knowledge.

In the third quarter, we plan to launch more than 15 of these guided workflows standing, both litigation and transactional law and including a number of practice areas.

Organic revenue grew 9% in the second quarter stable with the first quarter and continuing the strong trend from recent periods.

We believe they will resonate strongly with law, firms, in-house legal teams, courts, and district attorneys.

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Let me share an example of a new guided workflow.

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In our corporate segment organic revenues grew 9% recurring revenue grew 9%, while transactional rose 4%.

The analyze merger control filing requirements, workflow streamlines complex multistep compliance obligations for m&a. Transactions by analyzing deal information, against practical laws, Global content to then identify potential risks and requirements generate automated filing checklists and provide actionable insights.

David Wong: Thanks, David. Thanks again for joining us today. As a reminder, I will talk to revenue growth before currency and on an organic basis. Let me start by discussing the second quarter revenue performance for our big three segments. Organic revenue grew 9% in the second quarter, stable with the first quarter and continuing the strong trend from recent periods. Legal professionals' organic revenue grew 8% for the second consecutive quarter, driven by Westlaw, co-counsel, co-counsel drafting, LIR, and our international businesses. Government grew 7%. In our corporate segment, organic revenues grew 9%. Recurring revenue grew 9%, while transactional rose 4%. Direct and indirect tax, practical law, Figaro, and our international businesses were key contributors. Tax and accounting delivered another strong quarter with organic growth of 11%. Recurring and transactional revenues grew 9% and 14% respectively. Our Latin American business, Safe Send, Ultra Tax, and Shore Prep were key drivers.

Direct and indirect tax practical law, the gara and our international businesses were key contributors.

On the now, turn it over to Mike to review our financial performance. Thanks, David. Thanks again for joining us today.

Tax <unk> accounting delivered another strong quarter with organic growth of 11%.

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As a reminder, I will talk to revenue growth before currency and on an organic basis. Let me start by discussing the second quarter Revenue performance for a big 3 segments.

Mike Eastwood: Moving to Reuters News, organic revenue rose 5% for the quarter, driven by growth at the professional and agency businesses and from the news agreement with the data and analytics business of London Stock Exchange Group. Finally, Global Print revenues decreased 7% on an organic basis. On a consolidated basis, second quarter organic revenues increased 7%. At the end of Q2, the percent of our annualized contract value, or ACV, from products that are GenAI enabled was 22%, up from 20% last quarter. As a reminder, we began to provide this metric with our Q3 2024 results as a way to help you assess our success at bringing GenAI capabilities to our portfolio. With Westlaw Advantage now in market and in recognition of the growing number of AI-driven revenue drivers, we no longer plan to comment on Westlaw Precision penetration and will instead focus on the GenAI ACV metric.

Our Latin America business safe <unk> ultra attacks and sure prep or key drivers.

Organic Revenue grew 9% in the second quarter. Stable with the first quarter and continuing the strong trend from recent periods.

Moving to Reuters news organic revenue rose, 5% for the quarter driven by growth at the professional and agency businesses and from the news agreement with the data and analytics business of L. Sag.

Mike Eastwood: Moving to Reuters News, organic revenue rose 5% for the quarter, driven by growth at the professional and agency businesses and from the news agreement with the data and analytics business of LSEG. Global Print revenues decreased 7% on an organic basis. On a consolidated basis, Q2 organic revenues increased 7%. At the end of Q2, the percent of our annualized contract value, or ACV, from products that are GenAI-enabled was 22%, up from 20% last quarter. As a reminder, we began to provide this metric with our Q3 2024 results as a way to help you assess our success at bringing GenAI capabilities to our portfolio. With Westlaw Advantage now in market and in recognition of the growing number of AI-driven revenue drivers, we no longer plan to comment on Westlaw Precision penetration and will instead focus on the GenAI ACV metric.

Legal professionals, organic Revenue, grew 8% for the second consecutive quarter driven by West law co-consul Council drafting clear and our International businesses.

Government grew 7%.

Finally, global print revenues decreased 7% on an organic basis.

On a consolidated basis second quarter organic revenues increased 7%.

in our corporate segment, organic revenues grew 9%, recurring Revenue, grew 9%, while transactional, rows 4%,

At the end of Q2 the percent of our annualized contract value or ACB from products that are Gen. AI enabled was 22% up from 20% last quarter.

Direct and indirect tax, practical law, Pajero and our International businesses were key. Contributors

Tax and accounting delivered. Another strong quarter with Organic growth of 11%

As a reminder, we began to provide this metric with our Q3 2024 results as a way to help you assess our success at bringing gen AI capabilities to our portfolio.

Recurring and transactional, revenues grew 9% and 14% respectively.

David Wong: Moving to Reuters News, organic revenue rose 5% for the quarter, driven by growth at the professional and agency businesses and from the news agreement with the data and analytics business of LSEG. Finally, global print revenues decreased 7% on an organic basis. On a consolidated basis, second quarter organic revenues increased 7%. At the end of Q2, the percent of our annualized contract value, or ACV, from products that are GenAI enabled was 22%, up from 20% last quarter. As a reminder, we began to provide this metric with our Q3 2024 results as a way to help you assess our success at bringing GenAI capabilities to our portfolio. With Westlaw Advantage now in market and in recognition of the growing number of AI-driven revenue drivers, we no longer plan to comment on Westlaw Precision penetration and will instead focus on the GenAI AC metric.

A Latin America business safe. Send Ultra tacks ensure prep for key drivers.

With west La at vantage now in market and in recognition of the growing number of AI driven revenue drivers, we no longer plan to comment on west La precision penetration and we will instead focus on the Gen III AC metric.

Mike Eastwood: Turning to our profitability, adjusted EBITDA for the big three segments was $621 million, up 7% from the prior year period, with the margin rising 130 basis points to 42.3%. Moving to Reuters News, adjusted EBITDA was $45 million, with a margin of 20.8%. Global Print's adjusted EBITDA was $41 million, with a margin of 36%. In aggregate, total company adjusted EBITDA was $678 million, a 5% increase versus Q2 2024, reflecting a 70 basis point margin increase of 37.8%. Turning to earnings per share, adjusted EPS was $0.87 for the quarter versus $0.85 in the prior year period. Currency had no impact on adjusted EPS in the quarter. Let me now turn to our free cash flow. For the first half of 2025, our free cash flow was $843 million, up 4% from $812 million in the prior year period. Higher EBITDA was the largest driver of the increase.

moving to Reuters News organic Revenue, Rose 5% for the quarter driven by growth at the professional and agency businesses, and from the news agreement, with the data and analytics business of elsag,

Finally, Global print revenues decrease 7% on an organic basis.

Turning to our profitability adjusted EBITDA for the Big three segments was $621 million.

Mike Eastwood: Turning to our profitability, adjusted EBITDA for the big three segments was $621 million, up 7% from the prior year period, with the margin rising 130 basis points to 42.3%. Moving to Reuters News, adjusted EBITDA was $45 million, with a margin of 20.8%. Global Print's adjusted EBITDA was $41 million with a margin of 36%. In aggregate, total company adjusted EBITDA was $678 million, a 5% increase versus Q2 2024, reflecting a 70-basis point margin increase, 37.8%. Turning to earnings per share, adjusted EPS was $0.87 for the quarter versus $0.85 in the prior year period. Currency had no impact on adjusted EPS in the quarter. Let me now turn to our free cash flow. For H1 2025, our free cash flow was $843 million, up 4% from $812 million in the prior year period. Higher EBITDA was the largest driver of the increase.

20 Consolidated basis second quarter organic revenues increased 7%.

Up 7% from the prior year period with the margin rising 130 basis points to 42, 3%.

Moving to Reuters news adjusted EBITDA was $45 million with a margin of 28%.

At the end of Q2, the percent of our annualised, contract value for ACV from products that are gen. AI enabled was 22% up from 20% last quarter.

Global Print's adjusted EBITDA was $41 million with a margin of 36%.

In aggregate total company adjusted EBITDA was $678 million, a 5% increase versus Q2 2024, reflecting a 70 basis point margin increase 37, 8%.

As a reminder, we began to provide this metric with our Q3 2024 results as a way to help you assess our success at bringing gen, AI capabilities to our portfolio.

Turning to earnings per share adjusted EPS was <unk> 87 for the quarter versus 85 cents in the prior year period.

David Wong: Turning to our profitability, adjusted EBITDA for the big three segments was $621 million, up 7% from the prior year period, with the margin rising 130 basis points to 42.3%. Moving to Reuters News, adjusted EBITDA was $45 million, with a margin of 20.8%. Global Print's adjusted EBITDA was $41 million, with a margin of 36%. In aggregate, total company adjusted EBITDA was $678 million, a 5% increase versus Q2 2024, reflecting a 70 basis point margin increase of 37.8%. Turning to earnings per share, adjusted EPS was $0.87 for the quarter versus $0.85 in the prior year period. Currency had no impact on adjusted EPS in the quarter. Let me now turn to our free cash flow. For the first half of 2025, our free cash flow was $843 million, up 4% from $812 million in the prior year period. Higher EBITDA was the largest driver of the increase.

With Westlaw Advantage now in markets and in recognition of the growing number of AI driven Revenue drivers, we no longer plan to comment on Westlaw, Precision, penetration and will instead focus on the Gen AI AC metric.

Currency had no impact on adjusted EPS.

Turning to our profitability. Adjusted ebit up with a big 3 segments with 621 million.

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Let me now turn to our free cash flow for the first half of 2025, our free cash flow was $843 million up 4% from $812 million in the prior year period.

Up 7% from the prior year period, with the margin rising 130 basis points to 42.3%.

Mike Eastwood: I will conclude with an updated 2025 outlook. As Steve outlined, we are largely reaffirming our full-year 2025 guidance. We continue to expect organic revenue growth of 7% to 7.5%, with the big three growing approximately 9%. We see a 2025 adjusted EBITDA margin of approximately 39%, up 75 basis points versus 2024, and we expect free cash flow of approximately $1.9 billion. We are updating two guidance line items. We now see slightly lower depreciation and amortization of computer software of $825 million to $835 million, with $625 million to $635 million related to internally developed software. We expect net interest expense to be approximately $130 million, below our previous guidance of approximately $150 million due to higher than previously forecast interest rates benefiting interest income. Turning to the third quarter, we expect organic revenue growth of approximately 7% and our adjusted EBITDA margin to be approximately 36%.

Moving to Reuters News, adjusted ibida was 45 million with the margin of 20.8%.

Higher EBITDA was the largest driver of the increase.

Global prints adjusted ibida was 41 million with the margin of 36%

I will conclude with an updated 825 outlook.

Mike Eastwood: I will conclude with an updated 2025 outlook. As Steve outlined, we are largely reaffirming our full year 2025 guidance. We continue to expect organic revenue growth of 7% to 7.5%, with the Big Three growing approximately 9%. We see a 2025 adjusted EBITDA margin of approximately 39%, up 75 basis points versus 2024, and we expect free cash flow of approximately $1.9 billion. We are updating two guidance line items. We now see slightly lower depreciation and amortization of computer software of $825 to 835 million, with $625 to 635 million related to internally developed software. We expect net interest expense to be approximately $130 million, below our previous guidance of approximately $150 million, due to higher than previously forecast interest rates benefiting interest income. Turning to Q3, we expect organic revenue growth of approximately 7% and our adjusted EBITDA margin to be approximately 36%.

As Steve outlined we are largely reaffirming our full year 2025 guidance, we continue to expect organic revenue growth of 7% to seven 5%.

In aggregate total company. Adjusted ibida, was 678 million 85%. Increase versus Q2 2024 reflecting a 70 basis, point margin. Increase 37.8%

With the big three growing approximately 9%.

We see a 2025 adjusted EBITDA margin of approximately 39% up 75 basis points versus 2024.

Returning to earnings per share. Adjusted. EPS was 87 cents for the quarter versus 85 cents in the prior year period.

Currency had no impact on adjusted EPS in quarter.

And we expect free cash flow of approximately $1 9 billion.

We are updating to guidance line items.

We now see slightly lower depreciation and amortization of computer software of $825 million to $835 million with $625 million to $635 million related to internally developed software.

Let me now turn to our free cash flows for the first half of 2025. Our free cash flow was 843. Million uh 4% from 812 million in the prior year period.

David Wong: I will conclude with an updated 2025 outlook. As Steve outlined, we are largely reaffirming our full-year 2025 guidance. We continue to expect organic revenue growth of 7 to 7.5%, with the big three growing approximately 9%. We see a 2025 adjusted EBITDA margin of approximately 39%, up 75 basis points versus 2024, and we expect free cash flow of approximately $1.9 billion. We are updating two guidance line items. We now see slightly lower depreciation and amortization of computer software of $825 to $835 million, with $625 to $635 million related to internally developed software. We expect net interest expense to be approximately $130 million, below our previous guidance of approximately $150 million, due to higher than previously forecast interest rates benefiting interest income. Turning to the third quarter, we expect organic revenue growth of approximately 7% and our adjusted EBITDA margin to be approximately 36%.

I will conclude with an updated 2025 Outlook.

We expect net interest expense to be approximately $130 million below our previous guidance of approximately $150 million due to a higher than previously forecast interest rates benefiting interest income.

Mike Eastwood: Looking forward, we remain confident in the previously provided 2026 financial framework, and organic revenue growth targets for our big three segments call for 8% to 9% growth at Legal Professionals, 9% to 11% at Corporates, and 11% to 13% at Tax and Accounting Professionals. Let me now turn it back to Gary for questions.

Turning to the third quarter, we expect organic revenue growth of approximately 7%.

As Steve outlined we are largely. Reaffirming our full year 2025 guidance. We continue to expect organic Revenue growth of 7 to 7.5% with the big 3 growing approximately 9%.

And our adjusted EBITDA margin to be approximately 36%.

We see a 2025 adjusted ibida margin of approximately 39% of 75 basis points for 2024.

Looking forward, we remain confident in the previously provided 2026 financial framework and organic growth targets for our big three segments, all four 8% to 9% growth at least <unk> 90.

Mike Eastwood: Looking forward, we remain confident in the previously provided 2026 financial framework and organic revenue growth targets for our Big Three segments call for 8% to 9% growth at Legal Professionals, 9% to 11% at Corporates, and 11% to 13% at Tax and Accounting Professionals. Let me now turn it back to Gary for questions.

And we expect free cash flow of approximately 1.9 billion.

We are updating 2 guidance, line items.

[Company Representative]: Thank you, Ruth. We're ready to go ahead with Q&A.

<unk>, 9% to 11% in corporate and 11% to 13% at tax <unk> accounting professionals.

Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We'll go first to Drew McReynolds with RBC.

Let me now turn it back to Gary for questions.

We now see slightly lower depreciation, and amortization of computer software of 825, to 835 million with 625 to 635 million related to internally developed software.

Thank you Ruth we're ready to go ahead with Q&A.

Gary Bisbee: Thank you, Ruth. We're ready to go ahead with the Q&A.

Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad.

Operator: We'll go first to Drew McReynolds with RBC.

Speaker phone. Please make sure your mute function is turned off to allow your signal Shrewsbury Clinton again. Please press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions.

We expect net interest expense to be approximately 130 million below. Our previous guidance of approximately 150 million due to a higher than previously forecast interest rates benefiting interest income.

Turning to the third quarter, we expect organic Revenue growth of approximately 7%.

[Analyst 1]: Yeah, thanks very much, and good morning. I appreciate the Agentic AI deep dive from David. That's definitely helpful. On that topic, I guess two questions. One, can you give us a sense as of today, and I know it's early innings, the % of workflow that's currently being automated, you know, versus kind of what could be theoretically automated end-to-end? Just a follow-up, maybe for you, Steve, just in terms of the TAMs that you outlined back in the March 2024 Investor Day related to GenAI, just how should we think about the evolution of those TAMs as we embed kind of the Agentic AI offerings into the equation? Thank you.

David Wong: Looking forward, we remain confident in the previously provided 2026 financial framework, and organic revenue growth targets for our big three segments fall for 8 to 9% growth at legal professionals, 9 to 11% at corporates, and 11 to 13% at tax and accounting professionals. Let me now turn it back to Gary for questions.

Well go first today drew mcreynolds with RBC.

Yes, thanks, very much and good morning.

Drew McReynolds: Yeah, thanks very much, good morning. Appreciate the agentic AI deep dive from David. That's definitely helpful. On that topic, I guess 2 questions. 1, can you give us a sense as of today, and I know it's early innings, the % of workflow that's currently being automated, versus what could be theoretically automated end to end? Just to follow up, maybe for you, Steve, just in terms of the TAMs that you outlined back in the March 2024 Investor Day related to GenAI, just how should we think about the evolution of those TAMs as we embed the agentic AI offerings into the equation? Thank you.

I appreciate the Atlantic AI deep dive from David Thats definitely helpful.

Looking forward, we remain confident in the previously provided 2026 natural framework and organic revenue growth targets for the Big 3 segments: all 4 to 8% growth, at least professionals.

On that topic.

I guess two questions one.

9% to 11% corporate and 11% to 13% at tax and accounting professionals.

Gary Bisbee: Thank you, Ruth. We're ready to go ahead with Q&A.

Can you give us a sense.

Let me now, turn it back to Gary for questions.

As of today and I know, it's early innings the percentage of workflow that's currently being automated.

Ruth: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star one to ask a question. We'll pause for just a moment to allow everyone an opportunity to signal for questions. We'll go first to Drew McReynolds with RBC.

Thank you Ruth for ready to go ahead with the Q&A.

Thank you, if you would like to ask a question, please.

Versus kind of what could be theoretically automated end to end and just a follow up.

Maybe for you Steve just in terms of the Tan.

Outlined back in the March 2024, Investor day related to Gen. AI, just how should we think about.

Steve Hasker: Yeah, thanks, Drew. Great questions. Look, in terms of the amount of automation today, I think I'd make two comments. The first is that in the overall scheme of things, it's still relatively modest, particularly in legal, less so in tax and accounting. The second is to that point, it does vary by profession. If you look at the sort of the life of a tax professional, our tax calculation engines have traditionally, you know, they are lightning fast. They have been in place for many years, and they're very effective in terms of producing the calculations. What we're doing with Ready to Review and Ready to Advise and the application of CoCounsel to tax and accounting and audit is automating a lot of the sort of shoulder tasks and the ancillary tasks that take an awful lot of time.

Speaker phone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, please press star 1 to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions.

The evolution of those hands as we embed Kennedy at Gentex.

The offerings into the equation. Thank you.

Yeah.

We'll go first to Drew MC, Reynolds with RBC.

Drew Mcreynolds: Yeah, thanks very much, and good morning. And I appreciate the Agentic AI deep dive from David. That's definitely helpful. And on that topic, I guess two questions. One, can you give us a sense as of today, and I know it's early innings, the percentage of workflow that's currently being automated, you know, versus kind of what could be theoretically automated end-to-end? And just a follow-up, you know, maybe for you, Steve, just in terms of the TAMs that you outlined back in the March 2024 Investor Day related to GenAI, just how should we think about the evolution of those TAMs as we embed kind of the Agentic AI offerings into the equation? Thank you.

Great questions.

Steve Hasker: Yeah. Thanks, Drew. Great questions. Look, in terms of the amount of automation today, I think I'd make two comments. The first is that, in the overall scheme of things, it's still relatively modest, particularly in legal, less so in tax and accounting. The second is to that point, it does vary by profession. If you look at the life of a tax professional, our tax calculation engines have traditionally. They are lightning fast. They have been in place for many years, and they're very effective in terms of producing the calculations. What we're doing with Ready to Review and Ready to Advise and the application of CoCounsel to tax and accounting and audits is automating a lot of the shoulder tasks and the ancillary tasks that take an awful lot of time.

In terms of the amount of automation.

Today, I think I'd make two comments the first is that.

In the overall scheme of things, it's still relatively modest particularly in legal.

Yeah. Thanks very much uh and good morning and appreciate the uh agentic Aid. Dive from David, that's definitely helpful. Um and on that topic um I guess 2 questions 1 um,

Less so in tax and accounting and the secondary to that point it does vary by profession.

Can you give us a sense as of today? And I know it's early Innings, the percentage of workflow, that's currently being automated.

So if you look at the sort of the life of the tax professional.

Our tax calculation engines have.

Traditionally they are lightning fast they have been in place for many years and they are very effective in terms of producing the calculations, what we're doing with ready to review and ready to advise and the application of co counsel to tax and accounting and audit is automating a lot of this sort of showed up.

You know, versus kind of what could be theoretically automated end to end and just to follow up. Um, you know, maybe for for you Steve, just in terms of the Tams that you outlined back in the March 2024, investor Day related to gen AI, just how should we think about

Steve Hasker: This is, for example, all of the sort of document ingestion and preparation to produce the first version of a tax return, the e-filing process and the follow-up, and then the advisory services that are queued off of that tax return cycle. I would say tax and accounting is, there are large portions that are automated today, but it really is some very time-consuming ancillary and important tasks that are being automated as part of this end-to-end Ready to Review, Ready to Advise cycle. The legal profession is different. I think the legal profession is, by some counts, 350 years old in its current form. Other than e-discovery and word processing and a number of other tools that have been implemented over time, the process is still fairly similar and has been for centuries.

Stephen Hasker: Yeah, thanks, Drew. Great questions. Look, in terms of the amount of automation today, I think I'd make two comments. The first is that in the overall scheme of things, it's still relatively modest, particularly in legal, less so in tax and accounting. And the second is, to that point, it does vary by profession. So if you look at the sort of the life of a tax professional, our tax calculation engines have traditionally, you know, they are lightning fast. They have been in place for many years, and they're very effective in terms of producing the calculations. What we're doing with Ready to Review and Ready to Advise and the application of co-counsel to tax and accounting and audit is automating a lot of the sort of shoulder tasks and the ancillary tasks that take an awful lot of time.

The evolution of those Tans as we embed kind of the agentic AI offerings into the equation. Thank you.

Tasks EMEA ancillary tasks that take an awful lot of time. So this is this is for example, all of the sort of document ingestion in preparation to produce the first version of a tax return the E filing process and the follow up and then the advisory services that acute off of that that tax return.

Steve Hasker: This is, for example, all of the document ingestion and preparation to produce the first version of a tax return, the e-filing process and the follow-up, and then the advisory services that are cued off of that tax return cycle. I would say tax and accounting is, there are large portions that are automated today, but it really is some very time-consuming ancillary and important tasks that are being automated as part of this end-to-end Ready to Review, Ready to Advise cycle. The legal profession is different. I think the legal profession is, by some counts, 350 years old in its current form. Other than e-discovery and word processing and a number of other tools that have been implemented over time, the process is still fairly similar and has been for centuries.

Yeah, thanks drew a great question. Um, look in terms of the the amount of automation. Um, today I I think I'd make 2 comments. The first is that, uh, in the overall scheme of things, it's still relatively modest particularly in legal.

Cycle, and so I would say tax and accounting is there a large portions that are automated today, but it really is some very time consuming ancillary and important tasks that are being automated as part of this into and ready to review ready to advise cycles. The legal profession is different legal professionals by some.

Um, less. So in tax and accounting and the second is to that point, it does vary by profession.

Some counts 350 years old in its current form and other than a discovery and wood processing and a number of other tools that are being implemented over time. The process is still fairly similar and has been for centuries, and so we think that that.

Steve Hasker: We think that generative AI and Agentic AI hold promise to fundamentally automate large portions of the first draft process and preparation. That's what we mean when we talk about the ability for Thomson Reuters to be performing more and more complex tasks and to play a larger role in the success of our customers. What we haven't done since Investor Day early last year is update our TAMs. I think we talked about a 20% increase in the TAMs at that time. We're certainly, we believe, on track for that. We haven't externally updated those since we sized them in the 2024 Investor Day, but we're going to remain vigilant here. As we execute on our product vision and our roadmaps and we make progress, we build confidence internally with our customers, we'll be in a position, I think, to revise those as we head through 2026.

So if if you look at the sort of, uh, the life of a tax, professional, our tax calculation engines have, um, traditionally, you know, they, they are lightning fast. They have been in place for many years and they're very effective in terms of producing that the calculations, what we're doing with ready to review and ready to advise.

Stephen Hasker: So this is, for example, all of the sort of document ingestion and preparation to produce the first version of a tax return, the e-filing process and the follow-up, and then the advisory services that are queued off of that tax return cycle. And so, you know, I would say tax and accounting is, there are large portions that are automated today, but it really is some very time-consuming, ancillary, and important tasks that are being automated as part of this end-to-end Ready to Review, Ready to Advise cycle. The legal profession is different. I think the legal profession is, by some accounts, 350 years old in its current form. And, you know, other than e-discovery and word processing and a number of other tools that have been implemented over time, the process is still fairly similar and has been for centuries.

<unk> generative AI and <unk> AI.

Steve Hasker: We think that generative AI and agentic AI hold promise to fundamentally automate large portions of the first draft process and preparation. That's what we mean when we talk about the ability for TR to be performing more and more complex tasks and to play a larger role in the success of our customers. Now, what we haven't done since Investor Day early last year is update our TAMs. I think we talked about a 20% increase in the TAMs at that time. We're certainly, we believe, on track for that. We haven't externally updated those since we sized them in the 2024 Investor Day.

Hold promise to fundamentally automate large portions of the of the first draft process and preparation and Thats, what we mean when we talk about.

The ability for ti to be performing more and more complex tasks.

And to play a larger role in the success of our customers now what we haven't done since.

Investor Day.

Early last year is update our Tam So I think we talked about a.

20% increase in the <unk> at that time, which certainly we believe on track for that.

We haven't sort of externally updated those since since we size them.

In 2020 for Investor day, but we're going to remain sort of vigilant here and as we execute on our product vision and our Roadmaps and we make progress.

Stephen Hasker: And so we think that generative AI and Agentic AI hold promise to fundamentally automate large portions of the first draft process and preparation. And that's what we mean when we talk about the ability for TR to be performing more and more complex tasks and to play a larger role in the success of our customers. Now, what we haven't done since Investor Day early last year is update our TAMs. I think we talked about a 20% increase in the TAMs at that time. We're certainly, we believe, on track for that. We haven't sort of externally updated those since we sized them in the 2024 Investor Day, but we're going to remain sort of vigilant here.

Question is by some some counts 350 years old in its current form and you know other than e Discovery and word processing and and and a number of other tools that have been implemented over time. The process is still fairly similar and has been for centuries. And so we think that

Steve Hasker: We're going to remain vigilant here, and as we execute on our product vision and our roadmaps, and we make progress, build confidence internally with our customers, we'll be in a position, I think, to revise those as we head through 2026. David, anything to add?

Steve Hasker: David, anything to add?

Gary Bisbee: No, I would just add that I think our approach when thinking about our Agentic investments is to start with the customer and really ask them what is the most valuable for us to be able to automate to provide a solution. Ready to Review and Ready to Advise are perfect examples of that, where when we talk with our customers, they've always said the tax preparation process is time-consuming, very labor-intensive, and where they want support. Agentic AI just happens to be, I think, one of the unique and perfect technologies to help those customers to get efficiencies because the technology can problem-solve, it can use tools, and it also can address the big gap, which is numeracy in AI systems. Instead of having to teach the AI how to do math, we've taught it instead how to use a calculator.

Confidence internally with our customers, we will be in a position I think to.

To to revise those as we head through 2026, David anything to add.

That generative AI in a jentique AI uh hold promise to fundamentally automate large portions of the of the first draft uh, process and preparation. And that's what we mean when we talk about, um,

I would just add that I think our approach when thinking about our.

David Wong: I would just add that I think our approach when thinking about our agentic investments is to start with the customer and really ask them what is the most valuable for us to be able to automate or provide a solution. Ready to Review and Ready to Advise are perfect examples of that, where when we talk with our customers, they've always said the tax preparation process is time-consuming, very labor-intensive, and where they want support. agentic AI just happens to be, I think, one of the unique and perfect technologies to help those customers to get efficiencies because the technology can problem solve, it can use tools, and it also can address the big gap, which is numeracy in AI systems. Instead of having to teach the AI how to do math, we've taught it instead how to use a calculator.

<unk> investments is to start with the customer and really.

The the ability for PR to be performing more and more complex tasks.

<unk> what is the most value for us to be able to automate it to provide.

Our solution and ready to reviewed ready to advise are perfect examples of that where when we talk with our customers. They've always said the tax preparation process is time consuming.

Very labor intensive and where they want one support and Egencia AI just happens to be I think one of the unique and perfect technologies to help those customers to get efficiencies because.

Stephen Hasker: And as we execute on our product vision and our roadmaps and we make progress, we build confidence internally with our customers, we'll be in a position, I think, to revise those as we head through 2026. David, anything to add?

The technology can problem solve it.

It can use tools and it also can address the big gap, which has numerous and AI system. So instead of having to.

Gary Bisbee: We've taught it how to use our tax engine. That's allowed us to be able to deliver the solution, which again helps the customer. I agree with everything you said, Steve, but I would say that the way that we approach identifying the opportunities for where we invest with the Agentic AI is starting with the customer and what their demands are.

Mike Eastwood: No, I would just add that I think our approach when thinking about our Agentic investments is to start with the customer and really ask them what is the most valuable for us to be able to automate to provide a solution. And Ready to Review and Ready to Advise are perfect examples of that, where when we talk with our customers, they've always said the tax preparation process is time-consuming, very labor-intensive, and where they want support. And Agentic AI just happens to be, I think, one of the unique and perfect technologies to help those customers to get efficiencies because the technology can problem-solve, it can use tools, and it also can address the big gap, which is numeracy in AI systems. So instead of having to teach the AI how to do math, we've taught it instead how to use a calculator.

Instead of having to teach the AI how to do math, we've taught instead, how to use a calculator and thought of how to use our tax engine and.

And to play a larger role in the success of our customers. Now, what we haven't done since, uh, invest today. Um, early last year is update, our Tams. I think we talked about a, a 20%, uh, increase in the Tams at that time. We're certainly, uh, We Believe, on track for that. Um, we we, we haven't sort of, uh, externally updated those since, since we sized them, um, in the 2024 investor day. Um, but we're going to remain sort of vigilant here and as we execute on our product vision and our road maps and we make progress, we build confidence internally with our customers. We'll be in a position. I think to, uh, to to revise those, as we head through 2026, David anything to add,

David Wong: We've taught it how to use our tax engine. That's allowed us to be able to deliver the solution, which again, helps the customer. Again, I agree with everything you said, Steve, but again, I would say that the way that we approach, again, identifying the opportunities for where we invest with the agentic AI is starting with the customer and what their demands are.

And that's.

No, I would just add that. I think our approach when thinking about our agentic investments is to start with the customer and really...

That soon.

Allowed us to be able to deliver this solution, which again helps helps customer so again.

Ask them what is to be most valuable for us to be able to automate to provide provide. Um,

I agree with everything you said since Steve, but again I would say that the way that we approach again identifying.

[Analyst 1]: That's really helpful. Thank you both.

Steve Hasker: Thanks, Drew.

The opportunities for <unk>.

Operator: We'll go next to Manav Patnaik with Barclays.

Where we invest with the agent Guy is starting with the customer and what their demands are.

[Analyst 2]: Thank you. I guess a lot of the product line of innovation is obviously a great thing to see from you guys, but I was hoping you could help us just frame your solution set versus the competition out there. Obviously, one of your main competitors just had a partnership with one of the legal tech competitors of yours. What the internal law firms are doing themselves, just trying to understand how ahead of the curve you are perhaps with all these innovations.

That's really helpful. Thank you both.

Thanks Kurt.

Drew McReynolds: That's really helpful. Thank you both.

We'll go next to Manav Patnaik with Barclays.

Steve Hasker: Thanks, Drew.

Operator: We'll go next to Manav Patnaik with Barclays.

A solution and ready to review and ready to advise, our perfect examples of that. Where when we talk with our customers, they've always said the tax preparation. Uh, process is time-consuming, uh, very labor intensive and where they want, want support and uh, agentic AI. Just happens to be I think 1 of the the unique and perfect Technologies to help those customers to, to get efficiencies. Because um,

Thank you.

I guess a lot of the product innovations, obviously encouraging to see from you guys, but I was hoping you could help us explain.

Manav Patnaik: Thank you. I guess a lot of the product innovation is obviously a great thing to see from you guys. I was hoping you could help us just frame your solution set versus the competition out there. Obviously, one of your main competitors just had a partnership with one of the legal tech competitors of yours, what the internal law firms are doing themselves. Just trying to understand how ahead of the curve you are, perhaps with all these innovations.

Your solution set listen the competition out there.

The technology can, uh, problem solve, uh, it can use tools and it also can address the big gap, which is numerously in AI systems. So, uh, instead of having to, um,

We see volumes remained competitive as just normal parkinson with.

Mike Eastwood: We've taught it how to use our tax engine, and that's allowed us to be able to deliver the solution, which again helps help the customer. So again, I agree with everything you said, Steve, but again, I would say that the way that we approach, again, identifying the opportunities for where we invest with the Agentic AI is starting with the customer and what their demands are.

It's almost a legal component will be internal law firms are gaining themselves just trying to understand how a head to toe.

Steve Hasker: Yeah, thanks, Manav. I'll start and I'm sure David, Mike might add. I think, as I read the landscape in tax and accounting and audit, with our Ready to Review and Ready to Advise and CoCounsel announcements, I would say we're ahead of competitors in terms of the announcements that they may or may not have made. In legal, to your question, what we're seeing is a sort of new era of competition with a bunch of startups, particularly in the legal AI assistance space, and a number of our traditional competitors making announcements and putting new offerings in the marketplace. Where we are differentiated and where our confidence is, if anything, growing is first and foremost in our content as a differentiator.

instead of having to teach the AI how to do math we've taught it and said how to use a calculator we thought of how to use our tax engine and um that's

You are perhaps with all these innovations.

Yeah. Thanks, Manav again, I'll start and I'm sure David Mike My My AD.

Steve Hasker: Yeah. Thanks, Manav. Again, I'll start, and I'm sure David might add. I think, as I read the landscape in tax and accounting and audit, I think with our Ready to Review and Ready to Advise, and CoCounsel announcements, I would say we're ahead of competitors in terms of the announcements that they may or may not have made. In legal, I think to your question, what we're seeing is a sort of new era of competition with a bunch of startups, particularly in the legal AI assistance space, and a number of our traditional competitors making announcements and putting new offerings in the marketplace. I think where we are differentiated and where our confidence is, if anything, growing, is first and foremost, in our content as a differentiator.

So I think.

As I read the landscape in tax and accounting in order, I think where without ready to review and ready to advise.

Drew Mcreynolds: That's really helpful. Thank you both.

Allowed us to be able to deliver the solution, which again helps help the customer. So again, I agree with everything you said said, Steve. But again, I would say that the way that we approach, uh, again, identifying, uh, the, the opportunities for where we invest with the agentic guy is starting with the customer and what their demands are.

Stephen Hasker: Thanks, Drew.

That's really helpful. Thank you both.

Thanks, dude.

And co counsel announcements I would say we are ahead of.

Ruth: We'll go next to Manav Patnik with Barclays.

Of all of competitors in terms of the announcements that they may or may not have made.

Connecting to manav Patnick with sparkles.

Manav Patnaik: Thank you. You know, I guess a lot of the product line and the innovation is obviously a great thing to see from you guys, but I was hoping you could help us just frame, you know, your solution set versus the competition out there. You know, obviously, one of your main competitors just had a partnership with one of the legal tech competitors of yours. What the internal law firms are doing themselves, just trying to understand like how ahead of the curve, you know, you are perhaps with all these innovations.

In legal I think to your question. What we're seeing is a sort of new era of of of competition with a bunch of start ups.

In the sort of legal.

Assistance space and a number of our traditional competitors sort of making announcements and putting new offerings in the marketplace.

Steve Hasker: The depth and breadth of Westlaw and Practical Law and the deep expertise of our subject matter experts, 2,500 or more in total, gives us a differentiation and it's a durable one. Secondly, we believe that having a single integrated solution that includes content and a best-of-breed AI assistant is a winning strategy. It gives us a single strategic play and puts us, we think, on a faster innovation and development roadmap. I think some of the moves we've seen from competitors is a response to that single integrated solution, and therefore, it helps build our confidence.

I think where we are differentiated and where our confidence is if anything growing.

Stephen Hasker: Yeah, thanks, Manav. Again, I'll start, and I'm sure David and Mike may add. So I think as I read the landscape in tax and accounting and audit, I think we're with our Ready to Review and Ready to Advise and co-counsel announcements, I would say we're ahead of competitors in terms of the announcements that they may or may not have made. In legal, I think to your question, what we're seeing is a sort of new era of competition with a bunch of startups, particularly in the sort of legal AI assistance space and a number of our traditional competitors sort of making announcements and putting new offerings in the marketplace. I think where we are differentiated and where our confidence is, if anything, growing is first and foremost in our content as a differentiator.

Thank you. Uh, you know, I, I guess a lot of the products are Innovations. Obviously, a great thing to see from you guys, but I was hoping you could help us just frame, uh, you know, your solution set versus the competition out there. Uh, you know, obviously 1 of your main competitors. Just had a partnership with with, with 1 of the legal Tech competitors of yours. What the internal law firms are doing themselves. Just trying to understand like how ahead of the curve. Uh, you know, you are, perhaps with all these Innovations.

Is first and foremost.

In our content is a differentiator.

The depth and breadth of west La and practical law.

Steve Hasker: The depth and breadth of Westlaw and Practical Law and the deep expertise of our subject matter experts, 2,500 or more in total, gives us, we think, a differentiation, and it's a durable one. Secondly, we believe that having a single integrated solution that includes content and a best of breed AI assistant is a winning strategy, and it gives us a single strategic play, and puts us, we think, on a faster innovation and development roadmap. I think some of the moves we've seen from competitors is a response to that single integrated solution. Therefore, it helps build our confidence.

And the deep expertise of our subject matter experts.

Yeah, thanks Mano again, I'll start. And I'm sure David Mike may may may add. Um so I think uh as I read the landscape in tax and accounting and order, I think we're with with our ready to review and ready to advise.

500 or more in total gives us we think.

uh, and co-consul announcements, I I would say we're ahead of

A differentiation in it so durable one.

Secondly, we believe that having a single integrated solution.

That includes content and the best of breed AI assistant.

Is a winning strategy and it gives us.

Uh huh.

Sort of a strategic a single strategic play.

And puts us we think on a foster.

Of of of competitors, in terms of the announcements that may they may or may not have made. Um, in legal, I think, to your question, what we're seeing is a sort of New Era of uh, of of competition with with a bunch of startups, particularly adults in the sort of legal, um, AI assistance space and uh, a number of our traditional competitors, um, sort of making announcements and and putting new offerings in the marketplace.

<unk> and development roadmap I think some of the moves we've seen from from competitors.

Gary Bisbee: Yeah, I agree with you, Steve. I would say that, again, in tax and accounting, I think we are ahead of the competition with CoCounsel for Tax, Audit, and Accounting, as well as Ready to Review and Ready to Advise. I think that they are unique solutions in the market. On the legal side, I would just highlight one additional thing, which is deep research in Westlaw. We believe that this is setting a new standard in the marketplace for legal research. If you compare and contrast our deep research capability versus those available from others in the market, ours is the only one which is a legal deep research agent technology, where we have trained, built, and taught these AI agents to perform research like a legal researcher.

um I think where we are differentiated and where our confidence uh is if anything growing

Response to that.

Single integrated solution.

Stephen Hasker: So the depth and breadth of Westlaw and practical law and the deep expertise of our subject matter experts, 2,500 or more in total, gives us, we think, a differentiation, and it's a durable one. Secondly, we believe that having a single integrated solution that includes content and a best-of-breed AI assistant is a winning strategy, and it gives us a sort of a single strategic play and puts us, we think, on a faster innovation and development roadmap. And I think some of the moves we've seen from competitors is a response to that single integrated solution, and therefore, it helps build our confidence.

And.

Is, uh, first and foremost, um, in our content as a differentiator.

And therefore, it helps build our confidence.

Yeah drew agree with you Steve there again, I would say that again and tax account gains I think we are.

David Wong: Yeah. I agree with you, Steve, there. Again, I would say that in tax and accounting, I think we are ahead of the competition, with CoCounsel for Tax, Audit, and Accounting, as well as Ready to Review and Ready to Advise. I think that they are unique solutions in the market. On the legal side, I would just highlight one additional thing, which is Deep Research in Westlaw. We believe that this is setting a new standard in the marketplace for legal research. If you compare and contrast our Deep Research capability versus those available from others in the market, ours is the only one which is a legal Deep Research agent technology, where we have trained, built, and taught these AI agents to perform research like a legal researcher.

So the depth and breadth of uh West law and practical law, and the Deep expertise of our subject matter experts, uh, 2500 or more in total.

Uh-huh ahead of the competition.

With co counts for tax audit with accounting as well as rate review and ready to advise I think that they are a unique solution to the market.

Gives us. Uh, we think a a differentiation and it's a durable 1.

On the legal side I will just highlight one additional thing which is.

<unk> deep research in West La.

That includes content and a best of breed AI assistant.

We believe that this is setting a new standard.

The marketplace for legal research and if you compare and contrast, our deep research capability versus those available from others in the market ours is the only one which is a legal deep research agent technology, where we have trained built and taught these AI agents to.

Gary Bisbee: That's an important distinction because the general solutions from an OpenAI or a Gemini or what have you perform generic research, like doing a college book report or something like that. What we've built with Westlaw deep research is a researcher which has been trained like an experienced lawyer to explore the law, to look at arguments and counterarguments, and to be able to consider and explore issues which would be related to how you might prepare for a litigation. That's something which I think we're one of the only in the market that have actually created. We're really proud of the work we've done there, that we have set a new standard for research with this technology.

<unk> research like illegal researcher and Thats, an important distinction because.

Is a winning strategy and it gives us uh, a, a sort of a straight, A single strategic play. Um, and puts us, we think on a faster. Uh, Innovation and development roadmap. And I think some of the moves we've seen um from from competitors. Uh is a response to that uh single integrated solution. Um and uh and and and and therefore it it helps build our confidence.

Mike Eastwood: Yeah, I agree with you, Steve. There, again, I would say that, again, in tax and accounting, I think we are ahead of the competition with co-counsel for tax, audit, and accounting, as well as Ready to Review and Ready to Advise. I think that they are unique solutions in the market. On the legal side, I would just highlight one additional thing, which is deep research in Westlaw. We believe that this is setting a new standard in the marketplace for legal research. And if you compare and contrast our deep research capability versus those available from others in the market, ours is the only one which is a legal deep research agent technology, where we have trained, built, and taught these AI agents to perform research like a legal researcher.

The general solutions from an open AI or a gemini or what have you they perform generic research like doing.

David Wong: That's an important distinction because, the general solutions from an OpenAI or a Gemini or what have you, they perform generic research, like doing a college book report or something like that. What we've built with Westlaw Deep Research is a researcher which has been trained like an experienced lawyer to explore the law, to look at arguments and counterarguments, and to be able to consider and explore issues which we related to how you might prepare for a litigation. That's something which I think we're one of the only in the market that have actually created. We're really proud of the work we've done there, that we have set a new standard for research with this technology.

College book report or something like that.

What we've built with Westleigh deep research as a researcher which has been trained like an experienced lawyer.

Yeah I agree. Agree with you. Steve there again I I would say that again in tax account. I I think we are um I had a head of the competition um with Co counts for tax audits accounting as well as rate review and rate to advise I think that they're a unique Solutions in the market.

To explore the law look at arguments and counter arguments and scale to consider and explore issues, which were related to how you might prepare for litigation and that's something which I think we're one of the only in the market that has actually created so we're really proud of the work we've done there.

[Analyst 2]: Got it. Thank you.

Steve Hasker: Thanks, Manav.

Operator: We'll go next to Scott Fletcher with CIBC.

But we have set a new standard for research with with this technology.

Gary Bisbee: Good morning. Another good quarter from you guys. I was wondering if we could dig into the margin performance in the quarter and what some of the drivers were there, and then with guidance unchanged, why that might not be going through to the rest of the year.

Got it thank you.

Thanks Manav.

Manav Patnaik: Got it. Thank you.

Well go next to Scott <unk> with CIBC.

Mike Eastwood: Thanks, Manav Patnaik.

Operator: We'll go next to Scott Fletcher with CIBC.

Mike Eastwood: And that's an important distinction because the general solutions from an OpenAI or a Gemini or what have you, they perform generic research, like doing a college book report or something like that. What we've built with Westlaw deep research is a researcher which has been trained like an experienced lawyer to explore the law, to look at arguments and counterarguments, and to be able to consider and explore issues which would be related to how you might prepare for a litigation. And that's something which I think we're one of the only in the market that have actually created. So we're really proud of the work we've done there. I think that we have set a new standard for research with this technology.

Good morning, good quarter from you guys before I'm wondering if we could dig into the margin performance in the quarter and what some of the drivers were there and then with guidance unchanged why that might not be flowing through to the rest of the year.

Mike Eastwood: Sure, Scott. I'll break that down by second quarter and then also for the full year. If you look at our second quarter margin performance, we were very pleased with it. Three key factors for Q2, Scott. First is we had good operating leverage. As I've shared in the past, at that roughly 7% to 7.5% organic revenue growth range, we're generating about 110 basis points of operating leverage, so good leverage in Q2. Second, we did have some timing of expenses in Q2 that will reverse during the second half of the year. The third benefit in the second quarter was revenue mix, including some of our print products. If I now go into the third quarter, EBITDA margin at 36% is less than Q2. Three factors that I would mention there.

Um, on the legal side, I would just highlight 1 1 additional thing, which is, uh, uh, deep research in West law. Uh, we believe that this is setting a new standard, uh, in the marketplace for legal research. And if you compare and contrast, our deep research capability versus those available. From others in the market, ours is the only 1 which is a legal deep research uh agent technology where we have trained built and taught these AI agents to perform research like a legal researcher. Um and that's an important distinction because um,

Scott Fletcher: Good morning. Another good quarter from you guys. I was wondering if we could dig into the margin performance in the quarter, and what some of the drivers were there, and then with guidance unchanged, why that might not be flowing through to the rest of the year?

Sure Scott I'll break that down by second quarter, and then also for the full year. If you look at our second quarter margin performance. We were very pleased with the three key factors for Q2 Scott.

Mike Eastwood: Sure. Scott, I'll break that down by Q2 and then also for the full year. If you look at our Q2 margin performance, we were very pleased with it. Three key factors for Q2, Scott. First is we had good operating leverage. As I've shared in the past, at that roughly 7% to 7.5% organic revenue growth range, we are generating about 110 basis points of operating leverage. Good leverage in Q2. Second, we did have some timing of expenses in Q2 that will reverse during the H2 of the year. Third benefit in the Q2 was revenue mix, including some of our print products. If I now go into the Q3, EBITDA margin at 36% is less than Q2. Three factors that I would mention there.

We had good operating leverage as I've shared in the past at that roughly 7% to seven and a half organic.

Our revenue growth range, we're generating about 110 basis points of operating leverage so good leverage in Q2.

Uh, the general solutions from an open AI or a gemini or what have you. They performed generic research like doing, you know, uh, College book report or something like that. Uh, what we've built with what's law, deep research is a researcher which has been trained, like an experienced lawyer to, uh, explore the law to look at arguments and counter-arguments and to be able to consider and explore issues, which we related to how you might prepare for a litigation. And that's the thing, which I think we're, we're 1 of the only in the market that have actually created. So we're really proud of the, the work we've done there that that we have set a new standard for, for research with, with this technology.

Manav Patnaik: Got it. Thank you.

Mike Eastwood: Thanks, Manav.

Got it. Thank you.

We did have some timing of expenses in Q2 that will reverse during the second half of the year and third benefit in the second quarter was revenue mix on including some of our print products. If I now go into the third quarter EBITDA margin at 36% is less than Q2.

Thanks manov.

Ruth: We'll go next to Scott Fletcher with CIBC.

we'll go next to Scott Fletcher, with CIBC

Scott Fletcher: Good morning. Another good quarter from you guys. I was wondering if we could dig into the margin performance in the quarter and what some of the drivers were there, and then with guidance unchanged, why that might not be flowing through to the rest of the year.

Mike Eastwood: We have the normal seasonality of our tax and accounting professional business in Q3 that we experience each year. Second item, some of the timing benefit that we experience in Q2 and the first half of the year will reverse, including some integration costs associated with Safe Sign Technologies and other recent acquisitions. The third item is in regards to the tough comp at Reuters News, given that Q3 2024 did include some one-time GenAI revenue that has significantly high profitability and revenue flow-through. To your question in regards to not increasing our full-year guidance, most importantly, I would say we remain very confident in delivering our full-year guidance of approximately 39%. We are not raising it for the three reasons in regards to the favorable revenue mix in the first half of the year. We do not anticipate that continuing.

<unk> three.

Good morning, another good reporter from you guys was wondering if we could dig into the margin performance in the quarter um and what some of the drivers were there and then with guidance on change, why that might not be flowing through to the rest of the year.

Three factors that I would mention there we have the normal seasonality of our tax and accounting professional business in Q3 that we experience on each year.

Mike Eastwood: Sure, Scott. I'll break that down by second quarter and then also for the full year. If you look at our second quarter margin performance, we were very pleased with it. Three key factors for Q2, Scott. First is we had good operating leverage. As I've shared in the past, at that roughly seven to seven and a half organic revenue growth range, we're generating about 110 basis points of operating leverage, so good leverage in Q2. Second, we did have some timing of expenses in Q2 that we'll reverse during the second half of the year. And third benefit in the second quarter was revenue mix, including some of our print products. If I now go into the third quarter, EBITDA margin at 36% is less than Q2. Three factors that I would mention there.

Mike Eastwood: We have the normal seasonality of our tax and accounting professional business in Q3 that we experience each year. Second item, some of the timing benefit that we experienced in Q2 and the H1 of the year will reverse, including some integration costs associated with SafeSend and other recent acquisitions. The third item is in regards to the tough comp at Reuters, given that Q3 2024 did include some one-time GenAI revenue that has significantly high profitability and revenue flow-through. To your question in regards to not increasing our full year guidance, most importantly, I would say we remain very confident in delivering our full year guidance of approximately 39%, and we are not raising it for the three reasons in regards to the favorable revenue mix in the H1 of the year. We do not anticipate that continuing.

Second item some of the timing benefit that we experienced in Q2 in the first half of the year will reverse including some integration cost associated with safe <unk> and other recent acquisitions.

The third item is in regards to the tough comp at borders given that Q3 2024 did include some onetime to NII NII revenue.

All right. Sure. Uh, Scott, I'll I'll break that down by a second quarter and then also for the uh full year. If you look at our second quarter margin performance, we were very pleased, um, with it 3, key factors for Q2 Scott, uh, first, as we had good operating leverage as I've shared in the past at roughly 7, 7 and a half organic uh, Revenue. Growth range. We are Jenner.

Writing about 110 uh basis points of operating leverage. So good leverage in Q2

That has a high.

Hi, profitability and revenue flow through.

To your question in regards to not increasing our full year guidance and most importantly, I would say we remain very confident.

And delivering our full year guidance of approximately 39% and we are not raising it for the three reasons in regards to the favorable revenue mix in the first half of the year, we do not anticipate that continuing the timing of expenses will reverse in the second.

Mike Eastwood: We have the normal seasonality of our tax and accounting professional business in Q3 that we experience each year. Second item, some of the timing benefit that we experience in Q2 and the first half of the year will reverse, including some integration costs associated with Safe Send and other recent acquisitions. The third item is in regards to the tough comp at Reuters, given that Q3 2024 did include some one-time GenAI revenue that has significantly high profitability and revenue flow-through. To your question in regards to not increasing our full-year guidance, most importantly, I would say we remain very confident in delivering our full-year guidance of approximately 39%, and we are not raising it for the three reasons in regards to the favorable revenue mix in the first half of the year. We do not anticipate that continuing.

Mike Eastwood: The timing of expenses will reverse in the second half of the year, including those integration expenses. I and we do have a good line of sight, Scott, into Q3, Q4, EBITDA margin. Once again, we're very confident in delivering to the guidance of approximately 39%. Just on the topic of margin, I'll take it into 2026. We have committed, which I reaffirmed today, for 2026. We said margin will expand by at least 50 basis points. We remain confident in delivering on the 2026 margin expansion also.

Second, we did have some timing of expenses in Q2 that will reverse uh, during the second half of the year and third benefit. In the second quarter was Revenue mix um including some of our uh print products. If I now go into the third quarter um ibida margin at 36% is less than Q2 uh 3 factors that I would mention there. We have the normal seasonality of our tax and accounting professional business in Q3 that we experience, um, each year

Mike Eastwood: The timing of expenses will reverse in the H2 of the year, including those integration expenses. We do have good line of sight, Scott, into Q3, Q4 EBITDA margin, and once again, we're very confident in delivering to the guidance of approximately 39%. Just on the topic of margin, I'll take it into 2026. We have committed, which I reaffirm today, for 2026, we said margin will expand by at least 50 basis points. We remain confident in delivering on the 2026 margin expansion also.

Half of the year, including those integration expenses, but I and we do have good line of sight Scott into Q3 Q4 EBITDA.

Margin and once again, we're very confident in delivering to the guidance of approximately 39% just on the topic of margin I'll take it into 2026, and we have committed which I reaffirmed today for 2026, we said margin will expand by at least 50 basis points, we remain confident.

Um, second items, some of the timing benefits that we experience in Q2 and the first half of the year will reverse, including some integration costs associated with Safe in and other recent acquisitions. The third item is in regard to the tough comp at Rotors, given that Q3 2024 did include some one-time Gen II, Gen AI revenue that has specifically uh,

Gary Bisbee: Okay, great, great color there. As a follow-up, maybe potentially for David, can you touch on the expense profile of some of the newer products, like something like a deep research? If there is a potential impact to margin, if the adoption of those does, you know, meet or exceed targets?

Didn't and delivering on the 2026 margin expansion also.

Okay, great great color, there and then as a follow up maybe maybe potentially for David.

High profitability and revenue flow through to your question in regards to not increasing our full year guidance. But most importantly, I would say we remain very confident, uh, in delivering, our full year guidance of approximately, uh, 39, uh, percent

Scott Fletcher: Okay, great. Great color there. As a follow-up, maybe potentially for David.

Mike Eastwood: Scott, I'll start there. We have certainly contemplated all of the costs, both operating expense and capital, for all of the product launches that David and capabilities that David discussed today. We remain very confident with our capital intensity, which is roughly 8% for calendar year 2025. If you look at our investments in GenAI, approximately $200 million plus. If you look at all of the products today, including deep research, we have all of those costs, OpEx and CapEx, built into our forecast and into our guidance, and we remain very confident. David?

Can you touch on the expense profile of some of the newer products like <unk> like something like a deep research and a third of the potential impact of margin its adoption of those does meet or exceed target.

David Wong: Sure.

Scott Fletcher: Can you touch on the expense profile of some of the newer products, like something like a Deep Research, and if there is a potential impact to margin if adoption of those does meet or exceed targets?

Mike Eastwood: The timing of expenses will reverse in the second half of the year, including those integration expenses. But I, and we do have a good line of sight, Scott, into Q3, Q4, EBITDA margin. And once again, we're very confident in delivering to the guidance of approximately 39%. Just on the topic of margin, I'll take it into 2026. We have committed, which I reaffirmed today, for 2026, we said margin will expand by at least 50 basis points. We remain confident in delivering on the 2026 margin expansion also.

Scott I'll start there we had certainly contemplated all of the costs, both operating expense and capital for all of the product launches that David and capabilities that David discussed today.

Mike Eastwood: Scott, I'll start there. We have certainly contemplated all of the costs, both operating expense and capital, for all of the product launches that David, and capabilities that David discussed today. We remain very confident with our capital intensity, which is roughly 8% for calendar year 2025. If you look at our investments in GenAI, they're approximately $200 million plus. If you look at all of the products today, including Deep Research, we have all of those costs, OpEx and CapEx, built into our forecast and into our guidance, and we remain very confident. David?

We remain very confident with our capital intensity, which is roughly 8% for calendar year 2025, and then also if you look at our investments in <unk> of approximately 200 million plus.

If you look at all of the products today, including deep research, we have all of those cost Opex and Capex built.

Steve Hasker: Yeah, I think that's well said, Mike. I think the only other thing is Mike keeps us very diligent on managing our pricing and profitability for new product offerings. We are also confident that we're able to provide this additional value to our customers, price effectively, and earn price for it, and continue to earn healthy margin off of that. We generally don't comment about what the cost profile looks like for those new features.

39% just on the topic of margin. I'll take it into 2026 and we have committed, which I reaffirmed today. Uh, for 2026, we said margin will expand by at least 50 basis points. Uh, we remain confident in delivering on the 2026 margin expansion. Also.

Scott Fletcher: Okay, great, great color there. And then as a follow-up, maybe potentially for David.

Into our forecast and into our guidance and we remain very confident David.

Mike Eastwood: Sure.

Scott Fletcher: Could you touch on the expense profile of some of the newer products, like something like a deep research, and if there is a potential impact to margin if adoption of those does, you know, meet or exceed targets?

Yes, I think Thats, well said Mike.

David Wong: Yeah, I think that's well said, Mike. I think the only other thing is Mike keeps us very diligent on managing our pricing and profitability for new product offerings. We are also confident that we're able to provide this additional value to our customers, price effectively, and earn price for it, and continue to earn healthy margin off of them. We generally don't comment about what the cost profile looks like for those new features.

The only other thing is <unk>.

It keeps us very diligent on managing our pricing and profitability for new product offerings and so we are also confident that.

Okay, great. Great color there and and then as a follow-up maybe, maybe potentially for David sure. Um, can you touch on the expense profile of some of the newer products? Like like something like a deep research and if there is a potential impact of margin is adoption of those, does you know, meter exceed targets.

Mike Eastwood: Scott, I'll start there. We have certainly contemplated all of the costs, both operating expense and capital, for all of the product launches that David and capabilities that David discussed today. We remain very confident with our capital intensity, which is roughly 8% for calendar year 2025. And then also, if you look at our investments in GenAI, approximately $200 million plus. If you look at all of the products today, including deep research, we have all of those costs, OpEx and CapEx, built into our forecast and into our guidance, and we remain very confident. David?

We're able to.

It provides us additional value to our customers price effectively and earn price for it and continue to to earn healthy Marta.

Mike Eastwood: Yeah, Scott, David makes a really excellent point in regards to, if you look at the variable cost, we're doing a terrific job in regards to managing the flow-through associated therewith, including the cloud costs.

We generally don't comment about.

The cost profile looks like for those new features.

Gary Bisbee: All right, thank you very much.

Yes, Scott David makes a really excellent point in regards to see if you look at the variable cost we're doing a terrific job in regards to managing the flow through associated there with including the cloud cloud costs.

Mike Eastwood: Yeah.

Mike Eastwood: Yeah, Scott, David makes a really excellent point in regards to, if you look at the variable costs, we're doing a terrific job in regards to managing the flow-through associated therewith, including the cloud costs.

Steve Hasker: Thanks, Scott.

Operator: We'll go next to Vince Valentini with TD Cowen.

[Analyst 1]: Hey, thanks very much. First, I misunderstood Drew's question, but I'm going to ask it the way I thought he asked it in a different way. What % of your internal workflows are automated with AI or something equivalent at this point? Where's the opportunity set there over the next couple of years to actually just make your own margin better and become more efficient? Question one. Question two, just to tag on the last one on margins, just to be clear, Steve, or sorry, Mike, your margins not changing for this year is just those factors you laid out. You're not putting in any sort of buffer for maybe there's some macro weakness or maybe there's some weakness in pricing from what competitors are doing, or maybe there's another acquisition that comes with a bit of integration cost and drag on margin.

Alright, Thank you very much.

Yep.

Scott Fletcher: All right. Thank you very much.

Scott.

Mike Eastwood: Yep. Thanks, Scott.

Okay.

Van <unk> with TD Cowen.

Operator: We'll go next to Vince Valentini with TD Cowen.

Stephen Hasker: Yeah, I think that's well said, Mike. I think the only other thing is Mike keeps us very diligent on managing our pricing and profitability for new product offerings. And so we are also confident that we're able to provide this additional value to our customers, price effectively, and earn price for it, and continue to earn healthy margin off of them. But we generally don't comment about what the cost profile looks like for those new features.

Uh, Scott, I'll I'll start there. We have certainly contemplated, um, all of the costs both operating expense and capital, for all of the product launches that David and capabilities that David, um, discussed. Um, today we remain very, uh, confident with our Capital intensity, which is roughly 8% for calendar year, uh, 2025. And then also, if you look at our investments in gen AI, have approximately 200 million plus. Uh, if you look at all of the products today, including deep research, we have all of those costs Opex and capex built, um, into our forecasts and into our guidance and we remain very confident, David.

Okay. Thanks very much.

I misunderstood judy's question, but I'm going to ask it the way I thought he asked it in a different way.

Vince Valentini: Hey, thanks very much. First, I misunderstood Drew's question, but I'm going to ask it the way I thought he asked it in a different way. What percentage of your internal workflows are automated with AI or something equivalent at this point? Where is the opportunity set there over the next couple of years to actually just make your own margin better and become more efficient? Question 1. Question 2, just to tag on the last 1 on margins. Just to be clear, Steve, or sorry, Mike, your margins not changing for this year is just those factors you laid out.

What percentage of your internal workflows are automated with AI or something equivalent at this point and where is the opportunity set there over the next couple of years to actually you just make your own margin better.

Yeah, I think that's well said, uh, Mike. I think it's only other thing is, uh, Mike keeps us very, uh, diligent on managing our, our pricing and profitability for new product, uh, offerings. And so, uh, we are also confident that, uh, we're uh, we're able to uh, provide this additional value to our customers uh, price effectively, and earn price for it and continue to uh to earn healthy uh, healthy margin. Also,

And become more efficient question. One question two just to tag on the last one on margins just to be clear, Steve or Troy, Mike Your margins not changing for this year is it just those factors you laid out your.

but we, we generally don't comment about what the uh,

Mike Eastwood: Yeah, Scott, David makes a really excellent point in regards to if you look at the variable cost, we're doing a terrific job in regards to managing the flow-through associated therewith, including the cloud costs.

Not putting in any sort of buffer for maybe there are some macro weakness or maybe there's some weakness in pricing from what competitors are doing or maybe there was another acquisition that comes with a bit of integration cost and drag on margin and those are not factors in why you're you're staying with the margin guidance. It's only the ones you sorry.

Scott Fletcher: All right, thank you very much.

The cost profile looks like for those new features. Yeah, Scott. David makes a really excellent point in regards to, if you look at the variable cost, we're doing a terrific job in regards to, to managing the flow through, um, Associated there with including the cloud cloud costs.

[Analyst 1]: Those are not factors in why you're staying with the margin guidance. It's only the ones you cited. Thanks.

Vince Valentini: You're not putting in any sort of buffer for maybe there's some macro weakness, or maybe there's some weakness in pricing from what competitors are doing, or maybe there's another acquisition that comes with integration cost and drag on margin, those are not factors in why you're staying with the margin guidance. It's only the ones you cited? Thanks.

Mike Eastwood: Yep.

All right. Thank you very much.

Thanks, Scott.

Yep, thanks Scott.

Steve Hasker: Yeah, Vince, it's Steve. I'll start, and then I'm sure Mike will answer the second part of your question. With regard to the internal application of GenAI, I can't give you, referring back to Drew's question, I can't give you the sort of percentage of tasks that are performed across the company that are being automated by GenAI. What I can say is that we have been very aggressive in making a set of internal AI tools available to every single one of our colleagues, and we're very pleased with the uptake on a daily basis by the majority of our colleagues. In that spirit, we continue to pilot many proof of concepts in terms of the application of GenAI across go-to-market, across the support functions, across product and engineering, and so forth. We're optimistic about the future potential to drive increased speed, higher quality, and productivity from our operations.

We'll go next to Vince, Valentini with TD Catlin.

Thanks.

Yes, Vince.

It's Steve I'll start and then I'm sure Michael answer the second part of your question. So with regard to the internal application of Gen II.

Steve Hasker: Yeah, Vince, it's Steve. I'll start, and then I'm sure Mike will answer the second part of your question. With regard to the internal application of GenAI, referring back to Drew's question, I can't give you the sort of percentage of tasks that are performed across the company that are being automated by GenAI. What I can say is that we have been very aggressive in making a set of internal AI tools available to every single one of our colleagues, and we're very pleased with the uptake on a daily basis by the majority of our colleagues. In that spirit, we continue to pilot many proof of concepts, and in terms of the application of GenAI across go-to-market, across the support functions, across product and engineering, and so forth. We're optimistic about the future potential to drive increased speed, higher quality, and productivity from our operations.

I can't give you.

Referring back to Drews question I can't give you the sort of percentage of tasks that are performed across the company.

That are being automated by G&A I, what I can say is that we have been very aggressive in making.

Hey, thanks very much. Um, first I misunderstood Drew's question but I'm going to ask you the way. I thought he asked it in in a different way. What, what percentage of your internal workflows are automated with AI or something equivalent at this point and and where is the opportunity set there or over the next couple of years to actually just make your own margin better and and become more efficient question. 1, question 2 just to tag on the on the last 1 on margins. Just just to be clear Steve or sorry. Mike. Um your margins not changing for this year.

A set of internal AI tools available to every single one of our colleagues and we are very pleased with the uptake on a daily basis by the majority of all of our colleagues.

We in the in that spirit, we continue to pilot many proof of concepts.

And in terms of the application of <unk> across across go to market across the support functions across product and engineering.

Here is just those factors you laid out, you're not putting in any sort of buffer for maybe. There's some macro weakness or maybe there's some weakness in pricing from what competitors are doing or maybe there's another acquisition that comes with a bit of integration cost and drag on margin. Those are not factors in why you're you're staying with the margin guidance. It's only the ones you you cited, thanks.

Steve Hasker: I'm not going to give you a quantification of the benefits today because I think it's a little bit too early, but we are seeing some early successes, particularly, for example, within our software engineering team and in our customer support applications. There's some upside there, Vince, but how much and over what period of time? I think it's a bit too early to give you a guide on that, Mike.

And so forth.

And we're optimistic about the future potential to drive increased speed higher quality and productivity from our operations.

I'm not going to give you.

The quantification of the benefits today, because I think it's a little bit too early.

Steve Hasker: I'm not going to give you a quantification of the benefits today because I think it's a little bit too early. We are seeing some early successes, particularly, for example, within our software engineering team and in our customer support application. So there's some upside there, Vince. How much and over what period of time? I think it's a bit too early to give you a guide on that. Mike?

But we are seeing some early successes, particularly for example, within our software engineering team and in our customer support applications. So there is some upside there Vince, but how much how much and over what period of time I think it's a bit too early.

Mike Eastwood: Vance, in regards to your second question, my response to Scott's questions on EBITDA margin, I think touched on the key drivers there. Your direct question, there are no weaknesses in pricing that we have assumed. To David's point earlier, we're confident in regards to our pricing and the related flow-through.

To give you a guide on that Mike.

Vince in regards to your second question My response to Scott's questions on EBITDA margin I think touched on the key drivers. There. Your direct question. There are no weaknesses and pricing that we have assumed to David's point earlier, we're confident in regards to our pricing.

Mike Eastwood: Vince, in regards to your second question, my response to Scott's questions on EBITDA margin, I think, touched on the key drivers there. Your direct question, there are no weaknesses in pricing that we have assumed. To David's point earlier, we're confident in regards to our pricing and the related flow-through.

Operator: We'll go next.

Steve Hasker: Next question, please.

Operator: We'll go next to Tim Casey with BMO.

And the related flow through.

Yeah, I've been um, it's Steve. I I'll I'll start and then I'm sure Michael answered the second part of your question. So with regard to the internal application of Genai. Um, I can't give you, you know, referring back to Drew's question. How can I give you the sort of percentage of tasks that are performed across the company that are that are being automated by Genai? What I can say is that we have uh, been very aggressive in making uh, a set of internal AI tools available to every single 1 of our colleagues. And we're very pleased with the uptake on a daily basis by the majority uh, of our of our colleagues. Um, we in the, in the in that Spirit, we continue to pile it, many proof of Concepts. Um, and uh, in terms of the, the application of dni across across go to market across the support functions across, um, product and Engineering, uh, and so forth. Um, and we're optimistic about the future.

[Analyst 3]: Hi, good morning. You continue to generate strong free cash flow and your balance sheet is relatively under-levered. I wonder how you're thinking about excess capital. I mean, given the valuation on your shares, I assume share buybacks are not a priority, but Mike, maybe if you could update us on how you're thinking about a potential return of capital transaction before Q2 next year. Steve, given your free cash flow profile, you do have the option to turn up the CapEx intensity to drive growth or also maybe an update on the M&A environment given the balance sheet. Thanks.

We'll go next to the next question please.

Operator: We'll go next to.

We will go next to Tim Casey with BMO.

Mike Eastwood: Next question, please.

Operator: We'll go next to Tim Casey with BMO.

Hi, good morning.

You continue to generate strong free cash flow and your balance sheet is.

Tim Casey: Hi, good morning. You continue to generate strong free cash flow, and your balance sheet is relatively under-levered. I wonder how you're thinking about excess capital. Given the valuation on your shares, I assume share buybacks are not a priority. Mike, maybe if you could update us on how you're thinking about a potential return of capital transaction before Q2 next year. Steve, given your free cash flow profile, you do have the option to turn up the CapEx intensity to drive growth or also maybe an update on the M&A environment given the balance sheet. Thanks.

Relatively under Levered, I wonder, how youre thinking about that.

Excess capital I mean, given the valuation on your shares I assume share buybacks or are not a priority, but like maybe if you could update us on how you're thinking about where the potential return of capital transaction before Q2 next year and then Steve.

Future potential to drive increased speed higher quality and productivity from our operations. Uh, I'm not going to give you a a, you know, a quantification of the benefits today because I think it's a little bit too early. Um, but we are seeing some early successes particularly, for example, within our software engineering team and in our customer support application. So, there's some upside there, Vince. But but how much, um, how much and over, what period of time? I think it's a bit too early, uh, to to, to give you a guide on that mic.

Uh,

Given your free cash flow profile.

You do have the option to turn up for Capex.

Mike Eastwood: Sure, Tim. I'll start just to frame everything. The $10 billion of capital capacity by the end of 2027 holds. Certainly, if you were to go into 2028, which we're not today, that $10 billion would further increase. As you referenced, Tim, balance sheet remains very strong, net leverage of 0.5 times. In regards to the potential deployment of that $10 billion of capital capacity, first priority remains strategic M&A. We think the strategic M&A has the highest return potential from our lens. We remain very focused on our existing big three and bolstering those similar to what we've done in the last two and a half years. I think we have deployed about $2.6 billion of capital via acquisitions in the last two and a half years there.

Intensity to drive growth are there also.

I think touched on the key. Uh, drivers there your direct question. There are no weaknesses in pricing that we have assumed uh, to David's Point earlier we're we're confident in regards to our pricing uh, in the related flow through.

Maybe an update on the M&A environment.

Given given the balance sheet.

We'll go next to next question, please.

Sure Tim I'll start just to frame everything to $10 billion of capital capacity by the end of 2027 hold certainly dealer to go into 2028, which were not today that $10 billion.

Mike Eastwood: Sure. Tim, I'll start. Just to frame everything, the $10 billion of capital capacity by the end of 2027 holds. Certainly, if you were to go into 2028, which we're not today, that $10 billion would further increase. As you referenced, Tim, balance sheet remains very strong. Net leverage of 0.5 times. In regards to the potential deployment of that $10 billion of capital capacity, first priority remains strategic M&A. We think the strategic M&A has the highest return potential from our lens. We remain very focused on our existing big three and bolstering those similar to what we've done in the last two and a half years. I think we have deployed about $2.6 billion of capital via acquisitions in the last two and a half years there.

We'll go next to Tim Casey, with BMO.

Hi, good morning. Um, just you continue to generate um, strong free, cash flow and uh, your balance sheet is

Would further increase as you've referenced 10 balance sheet remains very strong.

Net leverage at 0.5 times.

Uh, relatively under levered. I wonder how you're thinking about um, excess capital. I mean given the valuation on your shares? I assume.

In regards to the potential deployment of that $10 billion of capital capacity first priority remains strategic M&A, we think to strategic M&A has the highest return potential from our lands. We remained very focused on our existing big three and bolstering does <unk>.

Share BuyBacks are are not a priority but Mike, maybe if you could update us on how your thing go to potential return of capital.

Transaction, uh, before Q2 next year. And then Steve, um, you know, given your free cash flow profile, you do have the option to turn up the CapEx.

Mike Eastwood: We do not see a need for a fourth leg, but we remain very interested in expanding our areas such as risk fraud and compliance, growing our indirect tax business, and also growing our international business. Strategic M&A is top priority. With that said, we will, I believe, continue to grow our dividends in the out years. We have four consecutive years of dividend growth at 10%. The next cycle will be our January board meeting, so I'll hold any speculation on what that increase might be until then. In regards to share buybacks, we made a commitment at the March 2024 Investor Day to return 75% of our free cash flow. Our dividends cover about 55% of that. That would leave about $400 million that would need at 75%. When I provided that 75% framework, that was over a time horizon there.

To what we've done in the last.

Two and a half year I think we have deployed about $2 6 billion of capital via acquisitions in the last two and a half years. There we do not see a need for fourth lag, but we remain various.

Intensity to to drive growth or or also um maybe an update on the m&a environment um given uh given the balance sheet. Thanks.

Mike Eastwood: We do not see a need for a fourth leg, but we remain very interested in expanding our areas such as risk, fraud, and compliance, growing our indirect tax business, and also growing our international business. Strategic M&A is top priority. With that said, we will, I believe, continue to grow our dividends in the out years. We have 4 consecutive years of dividend growth at 10%. The next cycle will be our January board meeting, so I'll hold any speculation on what that increase might be until then. In regards to share buybacks, we made a commitment at the March 2024 Investor Day to return 75% of our free cash flow. Our dividends cover about 55% of that. That would leave about $400 million that would need at 75%. When I provided that 75% framework, that was over a time horizon there.

Interested in expanding our areas such as risk fraud, and compliance growing our indirect tax business and also growing our international business. So strategic M&A is top priority.

With that said, we will I believe continue to grow our dividends in the out years, we have four consecutive years of dividend growth at 10% the.

The next cycle will be our January board meeting, so I'll hold any speculation on what that increase might be.

Until then in regards to share buybacks, we made a commitment at the March 2024, Investor day to return, 75% of our free cash flow.

Our dividend cover about 55% of that that would leave about $400 million that would need at 75% when I provided that 75% framework that was over time.

Mike Eastwood: For calendar year 2025, would we consider an NCIB share buyback? Potentially. We have our next board meeting in September. We have our annual capital strategy discussion with the board in September. That is a topic. Could there be an NCIB yet this year? Potentially. If so, I think it would be within that $400 to $500 million range. I think you also asked about NCIB share buybacks into 2026. My response there would be, I think that 75% return of free cash flow is a good framework for both 2025 and 2026. That would indicate, Tim, we would need roughly $400 to $500 million of share buybacks in the calendar year to achieve that.

Uh, Tim, um, I'll start just to frame everything, the 10 billion dollars of capital capacity by the end of 2027. Um, hold certainly, if you were to go into 2028, uh, which were not today, that 10 billion dollars, uh, would further increase, uh, as you referenced him, balance sheet remains very strong. Uh, net leverage of 0.5 times. Uh, in regards to the potential deployment of that 10 billion dollars of capital capacity. First priority remains strategic, uh, m&a we think to strategic m&a. Um, has the highest return potential, uh, from Ireland. We remain very focused on our existing, uh, Big 3 and bolstering those, uh, similar to what we've done in the last, uh, 2 and a half years. I think we have deployed about 2.6 billion of capital, uh, via Acquisitions in the last, uh, 2 and a half years there. We do not see a need for a fourth leg, but we remain,

Time.

Ryzen there for calendar year, 2025 would we consider an NCI be share buyback potentially we have our next board meeting in September we have our annual capital strategy discussion with the board in September that is a topic. So could there be an NCI be yet this year potentially.

Mike Eastwood: For calendar year 2025, would we consider an NCIB share buyback? Potentially. We have our next board meeting in September. We have our annual capital strategy discussion with the board in September. That is a topic. Could there be an NCIB yet this year? Potentially. If so, I think it would be within that $400 to 500 million range. I think you also asked about NCIB share buybacks into 2026. My response there would be, I think that 75% return of free cash flow is a good framework for both 2025, 2026. That would indicate, Tim, we would need roughly $400 to 500 million of share buybacks in a calendar year to achieve that.

So I think it would be within that $4 million to $500 million range and I think you also asked about and CIB share buybacks into 2026. My response, there would be I think that 75% return of free cash flow is a good framework for both $25 26, so that would indicate Tim we would need.

Very, uh, interested and expanding our areas, such as risk fraud and compliance growing, our indirect tax business and also growing our um, international business. So strategic m&a is top priority. Um, with that said, uh we will I believe continue to grow our dividends. Um, in the out years, we have 4 consecutive years of dividend growth at 10%. Uh, the next cycle will be our January board meeting so I'll hold any specific.

Steve Hasker: With regard to capital intensity and M&A, capital intensity, as you can imagine, we have some pretty vigorous debates internally on both the absolute number and the way we quantify it. The way Mike thinks about it is percentage of revenue and also the efficiency. In other words, the bang for the buck we're getting, and particularly how much of that capital is being spent on new innovations and builds versus keeping the lights on and service health remediation type activities. I would say the biggest sort of cap or throttle on that absolute number is the availability of top-flight engineering talent because a lot of it is capitalized software development. We're always looking to expand our talents in that area. I'd say that's one cap that prevents it getting too far out and too large.

Roughly 4% to $500 million.

Share buybacks on a calendar year to achieve that.

And then Tim with regard to capital intensity and M&A.

Steve Hasker: Tim, with regard to capital intensity and M&A. Capital intensity, as you can imagine, we have some pretty vigorous debates internally on both the absolute number and the way we quantify it, the way Mike thinks about it, is percentage of revenue. Also the efficiency, in other words, the bang for the buck we're getting, and particularly how much of that capital is being spent on new innovations and builds versus keeping the lights on and service health remediation type activities. I would say the biggest sort of cap or throttle on that absolute number is the availability of top-flight engineering talent, because a lot of it is capitalized software development. We're always looking to expand our talent in that area. I'd say that's one cap that sort of prevents it getting too far out and too large.

So capital intensity as you can imagine we have some pretty vigorous debates internally on but the absolute number and the way we quantified the way Mike thinks about it as a percentage of revenue.

And also the efficiency in other words, the Bang for the Buck, we are getting and particularly how much of that capital is being spent on new new.

Innovations and build versus keeping the lights on and service health remediation.

<unk> activities I would say the biggest sort of.

Calculation on what that increase might be. Um, until then in regards to share BuyBacks, we made a commitment. Uh, at the March 2024, investor day to return, 75% of our free cash flow. Our dividends cover about 55% of that that would leave about $400 million that would need at 75% when I provided that 75% framework, that was over a time, uh, time, uh, Horizon there for calendar year. 2025, would we consider, uh, an ncib shared buyback. Potentially, we have our next board meeting in September. We have our annual Capital strategy discussion with the board in September. Uh, that is a topic. So could there be an ncib yet this year potentially? If so I think it would be within that 4 to 500 million range. And I think you also asked about ncib, share, BuyBacks into 2026. My response. There would be

Cap or full throttle on that absolute number.

Is.

Is the availability of top flight engineering talent, because a lot of it.

I think that 75% uh return of 3 cash flow is a good framework for both 2526. So that would indicate 10, we would need roughly 4 to 500 million of share BuyBacks. And a calendar in a year, uh, to achieve that.

Is capitalized software development.

Steve Hasker: Jason Escaravage has done a great job of improving the efficiency of our KTLO and service health remediation work. Joel Horan, our Head of Engineering, continues to attract, retain, and develop great talent. It's a vigorous, healthy, and ongoing debate as to what the right level is and how much should go to new versus remediation and so forth. On M&A, I use the language we can be both aggressive and opportunistic, and that is our stance. We're looking for acquisitions that better serve or enhance our proposition to customers in the big three. I would point particularly to areas like risk, AI, further forays into the generative and agentic AI area, and also in indirect tax. We're starting to see some signs that we're outgrowing some of the competition on the back of the Pagero acquisition.

And so we're always looking to expand.

Our talent in that area, but I'd say, that's one that's one cap that sort of prevents it getting too far out.

And two large and then Jason <unk>, who has done a great job of of improving.

Steve Hasker: Jason Escaravage has done a great job of improving the efficiency of our KTLO and service health remediation work. Joel Horan, our head of engineering, continues to attract, retain, develop great talent. It's a vigorous, I think, healthy and ongoing debate as to what the right level is and how much should go to new versus remediation and so forth. On M&A, I use the language we can be both aggressive and opportunistic, and that is our stance. We're looking for acquisitions that better enhance our proposition to customers in the big three. I would point particularly to areas like risk, AI, further forays into the sort of generative and agentic AI area, and also in indirect tax, where we're starting to see, I think, some signs that we're outgrowing some of the competition on the back of the Pagero acquisition.

The efficiency of our K TLO and service health remediation work.

And Joe <unk>, our head of engineering continues to attract retain and develop great talent.

But it's a it's a vigorous I think healthy and ongoing debate as to what the right level is and how much should go to new versus versus.

Remediation and so forth on M&A I used to.

The language, we can be both aggressive and opportunistic in that is our stance.

We're looking for acquisitions that.

That better serve al and heartfelt proposition to customers in the big three I would point, particularly to areas like.

Risk.

AI further further forays into the sort of generative and authentic II area and also in indirect tax where we're starting to see I think some signs that we are outgrowing some of the some of the competition on the back of the <unk> acquisition.

Steve Hasker: Those are a few of the areas we'll be both aggressive and opportunistic and just make sure that it's very much in our big three customers' interests, anything we do.

Mike Eastwood: Tim, just to round this out, for 2026, capital intensity, I would assume 8%. We will have capital intensity for 2025 of approximately 8%. We just completed what we call our Enterprise Prioritization Committee, which is our prioritization process for 2026, which is ongoing, but we spend a lot of time on 2026 this time of the year. Very comfortable saying that it will be approximately 8% capital intensity for 2026, and we'll continuously assess the level of AI, GenAI investment, which is $200 million plus this year.

Those are a few of the areas, we'll be both aggressive and opportunistic and just make sure that it is very much now big three customers interest in anything we do.

Steve Hasker: Those are a few of the areas we'll be both aggressive and opportunistic, and just make sure that it's very much in our big three customers' interests in anything we do.

Tim just to round this out.

For 2026 capital intensity I would assume 8% we will have capital intensity for 2025 of approximately eight we just completed what we call our enterprise privatization Committee, which is our prioritization process for 26, which is ongoing but we spent a lot of time on 26. This time of the year very.

Mike Eastwood: Tim, just to round this out, for 2026 capital intensity, I would assume 8%. We will have capital intensity for 2025 of approximately 8. We just completed what we call our enterprise prioritization committee, which is our prioritization process for 2026, which is ongoing, but we spend a lot of time on 2026 this time of the year. Very comfortable saying that it will be approximately 8% capital intensity for 2026, and we'll continuously assess the level of AI, GenAI investment, which is $200 million+ this year.

Comfortable saying that it will be approximately 8% capital intensity for 2026, and we will continuously assess the level of AI and AI investment, which is 200 million plus this year.

Is uh, capitalized software development. Um, and so we're always looking to expand uh uh our talent in that area. But I'd say that's 1, that's 1 cap that sort of prevents it getting um too far out uh uh and and too large. And then, you know, Jason ascara has done a great job of of improving, um, the efficiency of our ktlo and service Health remediation, uh, work and Joel haran. Our head of engineering continues to um to attract retain, develop great talent. So it but it's a it's a a vigorous I think healthy and ongoing debate as to what the right level is and how much should go to new versus versus uh um remediation and so forth on on m&a. You know, I I use the the the the language we can be both aggressive and opportunistic and that is our stance, you know, we we're looking for Acquisitions that, um, that that better serve our enhance our proposition to customers in the Big 3 I would point, you know, particularly

Steve Hasker: Thank you. Thanks, Tim.

Operator: We'll go next to Andrew Steinerman with J.P. Morgan.

Mike Eastwood: Hi. Two questions on Westlaw Advantage. Is Westlaw Advantage a separate module for Precision, meaning you have to buy the agentic, you know, deep research capabilities in addition to Precision? There'll be a penetration story there. Second question, this is for you, David. Is there, not just with Advantage, but broadly this year with the product upgrades, a better integrated user interface across the whole Westlaw CoCounsel suite? I ask because I was at a demo of the Westlaw CoCounsel products earlier this year, and it just felt like separate modules with separate user logins at the various kiosks at that time.

Thank you.

Thanks, Tim.

Steve Hasker: Thank you.

Well go next to Andrew Steinman with J P. Morgan.

Mike Eastwood: Thanks, Tim.

Operator: We'll go next to Andrew Steinerman with J.P. Morgan.

Hi, two.

Two questions on West La advantage is westwater advantages separate moderate module for precision, meaning you have to buy the <unk> deep research capabilities. In addition to precision so there'll be a penetration story there and then second question. This is for you David.

Andrew Steinerman: Hi. Two questions on Westlaw Advantage. Is Westlaw Advantage a separate module for Westlaw Precision, meaning you have to buy the agentic Deep Research capabilities in addition to Westlaw Precision, so there'll be a penetration story there? The second question, this is for you, David. Is there, not just with Westlaw Advantage, but broadly this year with the product upgrades, a better integrated user interface across the whole Westlaw CoCounsel suite? I ask because I was at a demo of the Westlaw CoCounsel products earlier this year, and it just felt like separate modules with separate user logins at the various kiosks at that time.

To areas like uh, risk, um, AI uh, further further, uh, fours into the sort of generative and authentic uh, AI area. And also, in indirect tax, we're starting to see. I think some signs that were outgoing. Some of the, some of the competition on the back of the Pajero acquisition. So, those are a few of the areas will be both aggressive and opportunistic, um, and just make sure that it's very much in our Big 3 customers interests, anything we do. Um, Tim just the

Around this out. Uh,

Is there not just with advantage back broadly this year with the product upgrades are better integrated user interface across the whole West lore co counsel suite I asked a question I have is that a demo of the Weslaco Council products earlier this year and I just felt like separate module walls with separate user law.

Steve Hasker: Yeah, thanks for the question. On the first, Westlaw Advantage is a new subscription tier for Westlaw. We've also had some coverage about how it's also, quote-unquote, "the final Westlaw tier." You do need to upgrade, you need to adopt Westlaw Advantage to get the deep research capabilities. Westlaw Advantage includes a number of new innovations and new AI features. Deep research is the sort of the crown jewel in the selection of new features which are included in Westlaw Advantage. You do need to subscribe to Westlaw Advantage to get access to deep research. That's just to clarify that on your first question. On the experience interface, this is a top priority for us, which is to continue to improve and to enhance the user experience for our customers.

Logins at the various kiosks at that time.

For 2026 Capital, intensity. I would assume 8%. Uh, we will have Capital intensity for 2025 of approximately 8. We just completed what we call our Enterprise prioritization committee which is our prioritization process for 26, which is ongoing. But we spent a lot of time on 26. This time of the year, uh, very comfortable saying that it will be approximately 8% Capital intensity for uh, 2026 and we'll continue continuously assess the level of AI gen, AI investment, which is 200 million plus this year

Thank you.

Yes, thanks for the question.

Thanks Tim.

David Wong: Yeah. Thanks for the question. On the first, Westlaw Advantage is a new subscription tier for Westlaw, so we've also had some coverage about how it's also the final Westlaw tier. You do need to upgrade. You need to adopt Westlaw Advantage to get the Deep Research capabilities. Westlaw Advantage includes a number of new innovations and new AI features. Deep Research is the sort of the crown jewel in the selection of new features which are included in Westlaw Advantage. You do need to subscribe to Westlaw Advantage to get access to Deep Research. That's just to clarify that on your first question. On the experience interface, this is a priority for us, which is to continue to improve and to enhance the user experience for our customers.

The on the first.

Welcome next to Andrew Steiner with JP Morgan.

What's the advantage is a.

A new subscription tier four west la so.

But we've also had some coverage about how it's also critical at the final west La.

Final whats launch here you.

You do need to to upgrade you need to adopt west la advantage to get the deep research capability. So west La advantage includes a number of.

New innovations.

And new AI features deep research is the is the.

That's sort of the crown jewel in this in the in the selection of New features which are included in west La advantage.

So.

But you do need to subscribe to that.

<unk> deep research so that's just.

Hi. Uh 2 2, 2 questions on, on West lore Advantage. Uh is West, Lord Advantage a separate module for precision. Meaning you have to buy uh, the agentic, you know, deep research capabilities in addition to Precision. So they'll be a penetration story there. And the second question, um, this is for you David, um, you know, is there not just with Advantage but broadly this year with the product upgrades of better integrated user interface across the whole Suite. I, I asked because I was at a demo of the West Loco Council products earlier this year, and it just felt like separate modules were separate user logins at the various, uh, kiosks at that.

Just to clarify that on your first question.

Steve Hasker: With the launch of CoCounsel Legal, which we just announced this week, we are introducing a much more integrated offering where CoCounsel, Westlaw, and Practical Law are more seamlessly integrated into a single experience, and the capabilities of Westlaw are available via CoCounsel and vice versa. I think if you were to see a demo or to visit us at ILTA, for example, next year, you'd probably see a much more integrated experience, and we're going to continue to iterate and to improve that experience over the next quarters. It is a top priority for us to continue to improve and enhance the user experience for both CoCounsel and Westlaw.

On the experienced interface.

The priority for us, which is to continue to improve and to enhance the user experience for.

For our customers with the launch of co counsel legal.

David Wong: With the launch of CoCounsel Legal, which we just announced this week, we are introducing a much more integrated offering where CoCounsel, Westlaw, and Practical Law are more seamlessly integrated into a single experience, and the capabilities of Westlaw are available via CoCounsel and vice versa. I think if you were to see a demo or to visit us at ILTA, for example, next week, you'd probably see a much more integrated experience. We're going to continue to iterate and to improve that experience over the next quarters. It is a top priority for us to continue to improve and enhance the user experience for both CoCounsel and Westlaw.

Which we just announced this.

This week.

We are introducing a much more integrated offering where.

Co counsel westleigh in practical law are more seamlessly integrated into a single experience and the capabilities of west La are available via co counsel and and vice versa. So I think if you were to see a demo.

Or to visit us at <unk> for example.

You'd probably see a much more integrated experience and we're going to continue to iterate and to improve that experience.

Mike Eastwood: That makes total sense. Thank you.

Over over the next next quarters, but it is a it is a top priority.

Operator: We'll go next to Aravinda Galappatthige with Canaccord Genuity.

Priority for us to to continue to improve and enhance these experience for both co counsel and west La.

Yeah, thanks for the, the question. Uh, the on the first, uh, what's the advantage is a uh, uh, a new subscription, tier for Westlaw. So uh, We've also had some coverage about how it's also quote unquote, the final uh Westlaw, uh uh, final watch launch here. Uh, you do need to uh to upgrade you need to adopt, uh, WL advantage to get, uh, the Deep research capabilities. So Westlaw Advantage includes a number of uh, of new Innovations. Uh, and new AI features. Uh, deep research is the uh is the uh, the sort of the crown jewel in the in the in the selection of new features which are included in Westlaw Advantage. Uh so uh uh but you do need to subscribe to get access to deep research. So that's uh, just to clarify that on your first question.

[Analyst 1]: Good morning. Thanks for taking my questions. On tax and accounting, obviously very strong EBITDA growth yet again, similar to what we saw in Q1. Perhaps for Mike, is that predominantly sort of that timing benefit or the timing of the integration cost with respect to Safe Sign Technologies that you were referring to, or was there another component to that that probably deserved to be called out? Maybe that's my quick follow-up. More generally, perhaps for Steve, can you just talk to what your client cohorts look like? When you think of the density of the new product innovations, I'm wondering what proportion of the clients are open to quickly gravitating towards the latest product and perhaps paying up for it. I assume there's a cohort that's probably more of a laggard from that perspective.

That makes total sense. Thank you.

Great.

Andrew Steinerman: That makes total sense. Thank you.

Well go next to Arvind <unk> with Canaccord Genuity.

David Wong: Great.

Operator: We'll go next to Aravinda Galappatthige with Canaccord Genuity.

Good morning, Thanks for taking my questions.

Gary Bisbee: Good morning. Thanks for taking my questions. On tax and accounting, obviously very strong EBITDA growth yet again, similar to what we saw in Q1. Perhaps for Mike, is that predominantly sort of that timing benefit or the timing of the integration cost with respect to SafeSend that you were referring to? Or was there another component to that?

On tax and accounting.

We see very strong EBITDA growth yet again.

Miller to what we saw in Q1.

Perhaps from Mike is that predominantly set of that timing benefit of the.

Uh, on the, uh, the experience interface. Uh, this is a typical priority for us, which is to continue to improve. And to enhance the user experience for, uh, for our customers, uh, with the launch of co-consul legal, uh, which we just announced this, uh, uh, this week. Uh, we are introducing a much more integrated offering where, uh, uh, co-consul West law, and practical law are, are more seamlessly integrated into a single experience and the capabilities of, uh, Westlaw are available via co-consul.

The timing of the integration costs with respect to safe send that you were referring to or was there another component to that.

Probably deserve to be called out.

Aravinda Galappatthige: Probably deserve to be called out. Maybe that's my quick follow-up. More generally, perhaps for Steve, can you just talk to what your client cohorts look like? When you think of the density of the new product innovations, I'm wondering what proportion of the clients are open to quickly gravitating towards the latest product and perhaps paying up for it. I assume there's a cohort that's probably more of a laggard from that perspective. I was wondering if you can give us a high-level description on that front as well. Thank you.

Maybe yes.

My quick follow up and more generally perhaps for Steve.

Can you just talk to what your client cohorts look like I mean, when you think of that.

The density of the new product innovations I'm sort of wondering what proportion of the clients are sort of open to quickly sort of gravitating towards the latest product and perhaps paying up for it.

With co-consul and Westlaw.

That makes total sense. Thank you.

[Analyst 1]: I was wondering if you can give us a high-level description on that front as well. Thank you.

We'll go next to aravinda. Galapos with canaccord. Genuity

Mike Eastwood: Yeah, Aravinda, I'll start with your question in regards to tax and accounting professional EBITDA. You are correct in your assumption in regards to Q2 EBITDA margin. It's the timing of the Safe Sign Technologies integration. Those integration expenses that were initially planned for Q2 will now occur in the second half of the year. With that said, tax and accounting professional on a full-year basis, along with legal professionals, will continue to have very strong full-year EBITDA margins, fairly comparable within a % or two of each other on a full-year basis. Your core question, Safe Sign Technologies integration expenses flipped into the second half of the year.

Assumed as a cohort that that.

Probably more.

More of a lag from that perspective I was wondering if you can give us at a high level description on that front as well. Thank you.

Yeah, <unk> I'll start with your question in regards to tax and accounting professional EBITDA you're correct in your assumption in regards to Q2 EBITDA margin. It's the timing of the <unk> integration. Those integration expenses that were initially planned for Q2 will now occur in the second half.

Mike Eastwood: Yeah. Aravinda Galappatthige, I'll start with your question in regards to tax and accounting professional EBITDA. You are correct in your assumption in regards to Q2 EBITDA margin. It's the timing of the SafeSend integration. Those integration expenses that were initially planned for Q2 will now occur in H2 of the year. With that said, tax and accounting professional on a full year basis, along with legal professionals, will continue to have very strong full year EBITDA margins, fairly comparable within 1% or 2% of each other on a full year basis. Your core question, SafeSend integration expenses flipped into H2 of the year.

<unk> of the year with that said tax and accounting professional on a full year basis, along with legal professionals will continue to have very strong full year EBITDA margins are fairly comparable.

Steve Hasker: Aravinda, thanks for the question with regard to the sort of customer cohorts. It does vary between legal and tax and accounting audit and risk customers. What I would say, though, is that it's very rare to find a customer who is not interested in our AI offerings. Almost all want to hear about those offerings, want to test, kick the tires on those offerings. What we see is lots and lots of proof of concept trials, comparison with some of the competitive products, and so on and so forth. We're happy with the way we show up through that process. I would say 20% to 30% of, for example, law firms are looking to aggressively lean into AI as a means to differentiate their firm in various ways.

Within a percent or two of each other for on a full year basis, but your core question Sasin integration expenses.

Slipped into the second half of the year.

And then Eric.

Thanks for the question with regard to the sort of customer cohorts look it it does vary between.

Steve Hasker: Then Aravinda, thanks for the question with regard to the customer cohorts. Look, it does vary between legal and tax, accounting, audit, and risk customers. What I would say, though, is that it's very rare to find a customer who is not interested in our AI offerings. Almost all want to hear about those offerings, want to test, kick the tires on those offerings. What we see is lots and lots of proof of concept, trials, comparison with some of the competitive products, and so on and so forth. We're happy with the way we show up through that process. I would say 20% to 30% of, for example, law firms are looking to aggressively lean into AI as a means to differentiate their firm in various ways.

Good morning. Thanks for uh, taking my questions, um, on uh, tax and accounting. Um, you know, obviously very strong habitat growth, uh, yet again, um, you know, similar to what we saw in q1. Um, perhaps some Mike is that predominantly sort of that timing benefit or the the the the the timing of the integration cost with respect to safe, send that you were referring to, or was there, um, another component to that that uh, probably deserve to be called out? Um, um, maybe that's sort of the, my quick follow-up and, and, and won't generally, perhaps for Steve. Um, can you just talk to what your client cohorts look like? I mean, when you think of the, the, you know, the density of the new products Innovations and sort of wondering, what proportion of the clients are sort of open to quickly sort of gravitating towards the latest product and perhaps being up for it. And I assume there's a cohort that that probably, you know, more uh, you know, more more of a lagger.

Legal and tax accounting audit and risk customers, what I would say, though is that.

From that perspective, I was wondering if you can give us a sort of a high level description on that front as well. Thank you.

It's very rare to find a customer who was not interested in our AI offerings.

Almost all want to hear about those offerings want a test.

Kick the tires on those offerings.

And what we see is lots and lots of proof of concept trials comparison with with some of the competitive products so on and so forth.

We're happy with the way we show up.

Through that process I would say, 20% to 30% of for example, Wolfgang.

Steve Hasker: That's firms of all different shapes and sizes, whereas the rest of the firms have accepted that they need to adopt AI, that they need to provide the best tools to their talent and to their lawyers, and are going through various waves of adoption. That's sort of starting to pick up. It's still pretty early days, but that's, I think, where we sit. It's a similar picture in the tax and accounting and audit where it's very rare to find a firm, large, medium, or small, that isn't interested and isn't sort of thinking through and adopting. It's probably a minority of firms that are really aggressively moving at this stage.

Looking to <unk>.

Aggressively lean into II as a means to differentiate their firm in various ways and thats.

Yeah um are vendor I'll start with your question in regards to tax and accounting. Professional um ibida. Uh you are correct in your assumption in regards to Q2 IBA margin. It's the timing of the safe, send integration those integration expenses that were initially planned for Q2 will now our in the second half of the year with that said, tax and accounting. Professional on a full year basis along with legal professionals, will continue to have very strong full year ibida. Margins uh, fairly comparable, uh, within a percent of 2 of each other for on a full year, uh, basis. But your core question says and integration expenses, uh, flipped into the second half of the year.

And thats firms of all different shapes and sizes, whereas the rest of the firms.

Steve Hasker: That's firms of all different shapes and sizes, whereas the rest of the firms have accepted that they need to adopt AI, that they need to provide the best tools to their talent and to their lawyers, and are going through various waves of adoption. That's starting to pick up. It's still pretty early days, but that's I think where we sit. It's a similar picture in the tax and accounting and audit, where it's very rare to find a firm, large, medium, or small, that isn't interested and isn't thinking through and adopting. Probably a minority of firms are really aggressively moving at this stage.

Have accepted that they need to adopt AI that they need to provide the best tools to two there.

Um, and then now, I've been to, uh, thanks for the question with regard to the sort of customer cohort. Look at it. It does vary between, um, legal and tax accounting, audit and risk customers. What I would say though is that, um, it's very rare to find a customer.

Who is not interested in our AI offerings.

So their talent to the lawyers.

And going through various waves of adoption and that sort of starting to pick up.

So, almost all want to hear about those offerings, want to test, uh, kick the tires on those, uh, offerings.

Still pretty early days, but that's I think where we sit.

And it's a similar picture in the detection of accounting and audit where.

It's very rare to find.

Our firm.

Large medium small that isn't interested in is and sort of thinking through and adopting.

[Analyst 1]: Thank you. I'll pass the line.

Steve Hasker: Thanks, Arvinda.

Um, and what we see is lots and lots of proof of concept trials comparison with with some of the competitive products and so on and so forth. Um and we're happy with the way we show up. Um, through through that process, I would say 20 to 30% of, for example, walking

But it probably a minority of firms are really aggressively moving at this stage.

Operator: We'll go next to Toni Kaplan with Morgan Stanley.

[Analyst 4]: Thanks so much. You mentioned the % of ASV from products that are GenAI enabled was 22% this quarter. I was wondering if there was a way to break that into legal, tax, and accounting and corporates. If you don't want to give the specific numbers, just, I guess, directionally, have you seen more adoption in specific areas versus others? Maybe just as a follow-on, we talk so much about legal AI products, but I know that you see a big opportunity in the tax and accounting side as well. Maybe as big, if not bigger. Just wondering what you think unlocks that value in the tax and accounting space. Two separate questions there, but thank you.

Yes.

Thank you <unk>.

Thanks Erin.

Aravinda Galappatthige: Thank you. I'll pass the line.

Well go next to Toni Kaplan with Morgan Stanley.

Steve Hasker: Thanks, Aravinda.

Operator: We'll go next to Toni Kaplan with Morgan Stanley.

Thanks, so much.

And the percent of ASB from products that are Gen. AI enabled was 22% this quarter.

Toni Kaplan: Thanks so much. You mentioned the percent of ASV from products that are GenAI enabled was 22% this quarter. I was wondering if there was a way to break that into legal, tax and accounting, and corporates. If you don't want to give the specific numbers, just, I guess directionally, have you seen more adoption in specific areas versus others? Maybe just as a follow on, we talk so much about legal AI products, but I know that you see a big opportunity in the tax and accounting side as well. Maybe as big, if not bigger. Just wondering what you think unlocks that value in the tax and accounting space. Two separate questions there, but thank you.

I was wondering if there was a way to break that into legal tax and accounting and corporate if you don't want to give the specific numbers I guess directionally have you seen more adoption in.

You know specific areas versus others.

Then maybe just as a follow on.

We talk so much about legal AI products, but I know that you see a big opportunity and the tax and accounting side as well maybe as big if not bigger than two just wondering what you think unlocks that value and the tax and accounting space.

Steve Hasker: Yeah, Toni. Mike, let me start. It's worth stating, and I think, Toni, you've heard this from us before, there's a particular sort of characteristic within the tax and accounting and audit spaces, which is an acute talent shortage. As the number of audits goes up and the complexity of audits goes up, the number of tax returns goes up and the complexity of those returns goes up, there is not the supply of young talent coming through undergraduate and graduate programs who want to become CPAs. The profession faces a very significant challenge, and that is talent shortages. The technology, therefore, has a really important role to play in addressing that fundamental issue. If anything, we see more interest and potentially more uptake.

Are looking to, um, uh, aggressively lean into AI as a means to differentiate their firm in various ways and that's, um, you know, that then that's firms of all different shapes and sizes, whereas the rest of the firms, um, have accepted that they need to adopt AI that, that they need to provide the best tools to, uh, to their, uh, to their talent and to their lawyers, um, and are going through, you know, various waves of adoption. Um, and that's sort of starting to pick up. I still still pretty early days, but that's I think where we, where we sit, um, and it's a similar picture in the tax and accounting and audit, where, you know, it's very rare to find, um, a firm, uh, large medium or small, that isn't interested and isn't sort of thinking through and adopting. Um, but it it probably a minority of firms are are really aggressively moving uh at this stage.

Thank you. I'll pass the line.

Two separate questions there, but thank you.

We'll go next to Tony Kaplan with Morgan Stanley.

Yes, Tony.

Let me start.

Mike Eastwood: Yeah, Toni.

It's worth stating I think Tony you've heard this from us before Theres a particular.

Steve Hasker: Mike, let me start. It's worth stating, and I think, Toni, you've heard this from us before. There's a particular sort of characteristic within the tax and accounting and audit spaces, which is an acute talent shortage. As the number of audits goes up and the complexity of audits goes up, the number of tax returns goes up, and the complexity of those returns goes up, there is not the supply of young talent coming through undergraduate and graduate programs who want to become CPAs. The profession faces a very significant challenge, and that is talent shortages. The technology therefore, has a really important role to play in addressing that fundamental issue. If anything, we see more interest, and potentially, more uptake.

Sort of characteristic within the tax and accounting and audit spaces, which is an acute talent shortage. So as the number of audits goes up and the complexity of audits goes up the number of tax returns goes up and the complexity of those returns goes up.

There is not the supply of young talent coming through undergraduate and graduate programs two one.

Thanks so much. You mentioned the percent of ASV from products that are gen. AI enabled was 22% this quarter. I was wondering if there was a way to break that into legal tax and accounting and corporates if you don't want to sort of give the specific number it's just I guess directionally. Have you seen more adoption and

Once it becomes <unk> and so I view the profession faces a very significant challenge and that is.

You know, specific areas versus others. Um, and then maybe just as a follow on.

Talent shortages and.

The technology, therefore is a really important role to play in addressing that fundamental issue and so if anything we see more interest.

Steve Hasker: I think it's too early to call it, but uptake from our tax and accounting and audit customers than we do in the other professions we serve. Mike, over.

Mike Eastwood: Yeah, Toni, on your first question, we don't break down externally that 22% of GenAI enabled. I would say to date, the larger portion of that 22% is legal. I don't think you'll be surprised because of the Westlaw Precision that was GenAI enabled, and we had a really great start with that. As we progress now going forward, I think you're going to see an increase in each of the three segments: legal, corporates, and TAP, just given the number of product launches in Q3 of this year. With that said, although corporates will increase with CoCounsel for corporates and other products, and TAP will increase with the products that David discussed today, legal over the time horizon will continue to have the larger portion of that just because of the scale of legal, the scale of Westlaw Advantage.

And potentially more uptake I think it's too early to call it but uptake.

We talk so much about legal AI products, but I know that you see a big opportunity in the tax and accounting side as well, um, maybe you know, as big, if not bigger. And so just wondering what you think unlocks that value, um, in the tax and accounting space. So, 2 separate questions there, but thank you.

Steve Hasker: I think it's too early to call it, but uptake from our tax and accounting and audit customers than we do in the other professions we serve. Mike.

From our tax accounting and audit customers than we do in the other professions, we said Mike Yeah.

Tony on your first question, we don't breakdown externally that 22% of Gen. AI enabled I would say to date the larger portion of that 22% is legal I don't think youll be surprised because of the west la precision that was gen. Eight gen AI enabled and so we had a really great start.

Mike Eastwood: Yeah. Toni, on your first question, we don't break down externally that 22% of GenAI enabled. I would say to date, the larger portion of that 22% is Legal. I don't think you'll be surprised because of the Westlaw Precision that was GenAI enabled. We had a really great start with that. As we progress now going forward, I think you're going to see an increase in each of the 3 segments, Legal, Corporates, and TAP, just given the number of product launches in Q3 of this year. With that said, although Corporates will increase with Co-Counsel for Corporates and other products, and TAP will increase for all the products that David discussed today, Legal over the time horizon will continue to have the larger portion of that, just because of the scale of Legal, the scale of Westlaw Advantage.

With that as we progress now going forward I think youre going to see an increase in each of the three segments legal corporates and tap to scaling the number of product launches in Q3 of this year with that said all the corporates will increase with co counsel for corporates and other products and tackling.

Mike. Let me start. I it's worth stating and I think Tony you've heard this from us before there's a particular um, sort of characteristic within the tax and accounting and audit spaces, which is an acute Talent shortage. So as the number of audits goes up and the complexity of audit goes up the number of tax returns goes up and the complexity of those returns goes up. Um, there is not the supply of young talent coming through undergraduate and graduate programs, who want to become CPAs. And so the, the, the, the, the profession faces a very significant Challenge and that is, uh, Talent shortages. And, um, the technology therefore has a really important role to play in addressing that fundamental issue. And so if anything we see more interest

Increased while the products that David discussed today legal over the time horizon will continue to have the larger portion of that just because of the scale of legal the scale of west La advantage and as we go forward, we're going to be talking more and more about the suite of products not just about less law advantage west La co counsel practice.

Mike Eastwood: As we go forward, we're going to be talking more and more about the suite of products, not just about Westlaw Advantage, Westlaw, CoCounsel, Practical Law, kind of all in. Hopefully, that's helpful, Toni.

Operator: Thank you. We'll go next to Mario Yaghi with Scotiabank.

Mike Eastwood: As we go forward, we're going to be talking more and more about the suite of products, not just about Westlaw Advantage. Westlaw, CoCounsel, Practical Law, kind of all in. Hopefully, that's helpful, Tony.

[Analyst 5]: Good morning. Thank you for taking my question. I wanted to ask you a question on free cash flow as we roll into the second half. So far, you generated close to, you know, $840 million. Your guidance is $1.9 billion. Could you, you know, provide us some puts and takes on working cap and the payments and lower payments, I guess, that you will have less to pay, maybe taxes, that we should be aware of in order to model the back half? Also on the guidance, again, you know, so far this year, you have in the first half, your revenue growth has been 2%. Your guidance is 3% to 3.5%. Can you maybe just help us understand what's going to accelerate in the back half to close that gap? Thank you.

Claw kind of all in hopefully that's helpful. Tony.

Thank you.

Toni Kaplan: Thank you.

We'll go next to Mayer Yaghi with Scotiabank.

Operator: We'll go next to Maher Yaghi with Scotiabank.

Hi, Good morning, Thank you for taking my question.

Maher Yaghi: Hi, good morning. Thank you for taking my question. I wanted to ask you a question on free cash flow as we roll into H2. So far, you generated close to $840 million. Your guidance is $1.9. Could you provide us some puts and takes on working cap and the payments and lower payments, I guess, that you will have less to pay, maybe taxes, that we should be aware of in order to model H2? Also on the guidance again, so far this year, in H1, your revenue growth has been 2%. Your guidance is 3% to 3.5%. Can you maybe just help us understand what's going to accelerate in H2 to close that gap? Thank you.

Wanted to ask you a question on free cash flow.

Uh, uh, and potentially, um, more uptake. I think it's too early to call it, but uptake, um, from our tax and accounting and audit customers than we do in the other professions. Uh, we serve for Mike. Yeah. Tony, on your first question, we don't break down externally that 22% of, uh, GenAI. I would say, to date, the larger portion of that 22% is legal. I don't think you'll be surprised because of the less law precision. Um, that was GenAI enabled. And so we had a really great start with that. As we progress now going forward, I think you're going to see an increase in each of the three.

As we roll into the second half so far you you generated close to 840 million.

<unk> won nine could you.

Can you provide us some puts and takes on on working cap in the payments and.

And lower payments I guess that you will have less to pay maybe taxes.

That we should be aware of in order to model the back half and and also on the guidance again.

So far this year you have.

First half your revenue growth.

Has been 2% guidance is three to three and a half.

Mike Eastwood: Sure. In regards to free cash flow, I'll start with full year. Our guidance is approximately $1.9 billion. We're very confident in achieving the $1.9 billion. There are some variants between H1 and H2. In March of each calendar year, we pay our annual incentive plan bonuses, which is a drag on free cash flow in Q1 in the first half of the year. If you look at individual items that impact working capital, that is the single largest item. I have strong confidence in the full year on the $1.9 billion. If I take free cash flow one step further to 2026, our guidance is $2 billion to $2.1 billion. I have strong confidence also in delivering on the 2026 free cash flow. In regards to your question on revenue, you referenced percentages associated with total revenue growth. I want to focus on organic growth.

Segments, legal corporate, and tap just giving the number of product launches in Q3 of this year, with that said, all the corporates will increase with co-consul, for corporates and other, um, products and tackling increase while the products that David discussed today legal over the time, Horizon will continue to have the larger portion of that, just because of the scale of legal, the scale of less law advantage and as we go forward, we're going to be talking more and more about the suite of products. Not just about West law Advantage. Westlaw code, canceled practical law, kind of all in. Hopefully that's helpful Tony.

Thank you.

Can you maybe just help us understand what's going to accelerate in the back half.

Welcome to Mayor Yogi with Scotia Bank.

That gap thank you.

Sure My regards to free cash flow I'll start with full year. Our guidance is approximately $1 9 billion were very confident in achieving the one 9 billion. There are some variance between H, one and H two.

Mike Eastwood: Sure, Maher. In regards to free cash flow, I'll start with full year, our guidance is approximately $1.9 billion. We're very confident in achieving the $1.9 billion. There are some variance between H1 and H2. In March of each calendar year, we pay our annual incentive plan bonuses, which is a drag on free cash flow in Q1 in H1. If you look at individual items that impact working capital, that is the single largest item. I have strong confidence in the full year on the $1.9 billion. If I take free cash flow one step further to 2026, our guidance is $2 billion to $2.1 billion. I have strong confidence also in delivering on the 2026 free cash flow. In regards to your question on revenue, you referenced percentages associated with total revenue growth. I want to focus on organic growth.

Hi, good morning, and thank you for taking my question. Um, I wanted to ask you a question on on free cash flow.

Uh, as we roll into the second half. Uh, so far, you you generated close to, you know, 840 million, your guidance is 1.9, Could you? Um,

In March of each calendar year, we pay our annual incentive plan bonuses, which is a drag on free cash flow in Q1, and the first in the first half of the year. If you look at individual items that impact working capital that is the single largest item, but I have strong.

Give, you know, provide us some puts and takes on on working cap and and the payments and and and lower payments, I guess that you will have less to pay maybe taxes.

Confidence in the full year on the $1 9 billion, if I take free cash flow one step further to 2026, our guidance is $2 billion to $2 1 billion I have strong confidence also in delivering on the 2026 free cash flow.

Uh, that we should be aware of in order to model the back half and and also on the guidance again. Um, you know, so far this year, you have uh, the first half your Revenue growth.

Has been 2%. Your guidance is 3 to 3 and a half.

Um, can you maybe just help us understand what's going to accelerate in the back half?

Mike Eastwood: Once again, for the full year, it's 7% to 7.5%, 9% for the big three, which we have confidence in delivering. From my chair, if I look at the second half of the year and the bookings that we incurred for the first semester, I have strong confidence in regards to the revenue for Q3, Q4. Also, with the healthy pipelines that we have in Q3, Q4, I have very strong confidence. Another key factor is in H2, we have significantly easier comps for both the Reuters News business and tax and accounting professional. You'll remember in the second half of 2024, we had some significant Reuters News GenAI revenue, and we also had some factors with tax and accounting professional that makes it an easier comp this year.

Of that Gap. Thank you.

In regards to your question on revenue.

Referenced percentages associated with total revenue growth I want to focus on organic growth.

Once again for the full year at seven to seven 5%, 9% for the big three which we have confidence in delivering.

Mike Eastwood: Once again, for the full year, it's 7% to 7.5%, 9% for the big 3, which we have confidence in delivering. From my chair, if I look at H2 and the bookings that we incurred for H1, I have strong confidence in regards to the revenue for Q3, Q4. With the healthy pipelines that we have in Q3, Q4, I have very strong confidence. Another key factor is in H2, we have significantly easier comps for both the Reuters business and Tax and Accounting Professional. You'll remember in H2 2024, we had some significant Reuters GenAI revenue, we also had some factors with TAP that makes it an easier comp this year. Those are some of the key items that we have as we look at H2 revenue and the full year.

From my chair, if I look at the second half of the year and the bookings that we incurred for the first semester I have strong confidence in regards to the revenue for Q3 Q4 also with the healthy pipelines that we have in Q3 Q4.

Very strong confidence another key factor is an H two we have significantly easier comps for both the orders business and tax and accounting professional you'll remember in the second half of 2024, we had some significant orders Gen AI revenue and we also had <unk>.

Mike Eastwood: Those are some of the key items that we have as we look at the second half of the year revenue and the full year, but we have strong confidence on delivering to that 7% to 7.5% for total Thomson Reuters and 9% for the big three. The key factor there is the book of business. The underlying bookings is very strong. The pipeline is strong, and we have easier comps in the second half of the year.

Factors with tap that makes it an easier comp this year. So those are some of the key items that we have as we look at the second half of the year revenue in the full year, but we have strong confidence on delivering to that 7% to seven and a half.

Sure, my regards to uh free cash flow. I'll start with full cool year. Our guidance is approximately 1.9 billion. We're very confident in achieving the 1.9 billion. There are some variance between H1 and H2 in March of each calendar. Year, we pay our annual incentive, uh, plan bonuses, which is a drag on free cash flow in q1. In the first, uh, in the first half of the year. If you look at individual items that impact uh working capital that is the single uh, largest item. But uh, I have strong confidence on in the full year on the 1.9 billion. If I take free cash flow 1 step further to 2026. Um, our guidance is 2 billion to 2.1 billion. I have strong confidence, also in delivering on the 2026 uh, free cash flow in regards to your question. On Revenue, you reference percentages associated with total revenue growth. I want to

Mike Eastwood: We have strong confidence on delivering to that 7% to 7.5% for total TR and 9% for the big three. The key factor there is the book of business. The underlying bookings is very strong. The pipeline is strong, and we have easier comps in H2 of the year.

Focus on organic growth. Uh, once again for the full year, it's 7 uh, to 7.5% 9% for the Big 3, uh, which we have a confidence uh, in delivering

For total TR and 9% for the Big three the key factor there is the book of business. The underlying bookings is very strong the pipeline is strong and we have easier comps in the second half of the year.

Steve Hasker: Thank you.

Operator: We'll go next to Jason Haas with Wells Fargo.

Gary Bisbee: Hi, good morning. Thanks for taking my question. I'm curious if you could talk about what sort of price increase your customers will see if they upgrade from Westlaw Precision with AI to Westlaw Advantage. If you don't want to be too specific on the %, which I understand, how does it compare from the step up to Westlaw Precision with AI? I'm trying to understand, this is a big step up in value, and you'll be able to price even more for it than the price increases we've been seeing previously. Thank you.

Thank you.

[laughter].

Maher Yaghi: Thank you.

We'll go next to Jason <unk> with Wells Fargo.

Operator: We'll go next to Jason Haas with Wells Fargo.

Hi, good morning, Thanks for taking my questions I'm curious if you could talk about what sort of price increase your customers will see if they upgrade.

Jason Haas: Hi, good morning. Thanks for taking my questions. I'm curious if you could talk about what sort of price increase your customers will see if they upgrade from Westlaw Precision with AI to Westlaw Advantage. If you don't want to be too specific on the percentage, which I understand, how does it compare from the step up to Westlaw Precision with AI? I'm trying to understand, this is a big step up in value, and you'll be able to price even more for it than the price increases we've been seeing previously. Thank you.

I saw precision with AI to west La advantage, if you want to be too specific on that percentage on which I understand.

How does it compare on the step up to west operation with <unk> I'm trying to understand this.

Mike Eastwood: Yeah, Jason, I'll provide some color on that. We'll continue, no surprise, to price for value over the time horizon. As we move forward, and I'll intentionally use the phrase commercial packages to my comment earlier versus point solutions, looking at the collection of offerings, it will include a combination of a premium of the initial sale, but then also higher out-year price increases. You'll see a continued opportunity for sustained acceleration from all of our businesses. As a result of that, that gives us confidence in delivering for 2025 and 2026 guidance. I would encourage you to focus on the overall suite of our products. There will be a step up, and there will be out-year increases.

This is a big step up in value and you'll be able to price.

Even more important than the price increases we've been seeing previously thank you.

You'll remember and the second half of 2024, we had some significant orders gen AI uh, revenue. And we also had some factors with tap. That makes it an easier comp this year. So those are some of the key items that we have as we look at the second half of the Year revenue and, and the full year. But we have strong confidence on delivering to that, 7 to 7 and a half.

Yeah, Jason I'll provide some color on that will continue no surprise surprise for value over the type time horizon as we move forward I'll intentionally use the phrase commercial packages to my comment earlier versus point solutions looking at the collection of offerings. It will include a combination of a premium.

Mike Eastwood: Yeah, Jason, I'll provide some color on that. We'll continue, no surprise, to price for value over the time horizon. As we move forward, I'll intentionally use the phrase commercial packages to my comment earlier versus point solutions, looking at the collection of offerings. It will include a combination of a premium of the initial sale, but then also higher out-year price increases. You'll see a continued opportunity for sustained acceleration from all of our businesses. As a result of that gives us confidence in delivering for 2025 and 2026 guidance. I would encourage you to focus on the overall suite of offerings versus a product. There will be a step up, and there will be out-year increases.

For total TR and 9%, uh, for the Big 3. The key factor there is the book of business. The underlying bookings is very strong. The pipeline is strong, and we have easier comps, and the second half of the year.

Thank you.

The initial sale, but then also higher out year.

We'll go next to Jason hos with Wells Fargo.

This increases so youll see a continued opportunity for sustained acceleration from all of our businesses.

As a result of that that gives us confidence in delivering for 2026, 25% in 2026 guidance, but I would encourage you to focus on the overall split of <unk>.

Gary Bisbee: Got it. That's very helpful. Thank you. As a follow-up, I was curious if you could comment on the size and growth of CoCounsel. Harvey recently disclosed they're doing $100 million of ARR. I was curious how CoCounsel compares to that. Thank you.

Versus them.

Products. So there will be a step up and there will be out year increases.

Got it that's very helpful. Thank you and as a follow up I was curious if you could comment on the size and growth of.

Hi, good morning, thanks for taking my questions. I'm curious if you could talk about what sort of price increase uh, your customers will see if they upgrade from westall Precision with AI to West law Advantage. If you don't want to be too specific on the percentage, which I understand, um, you know how how does it compare from the the Step Up, um, to West all Precision with a I'm trying to understand, you know, this is a, a big step up in value and you'll be able to price, uh, you know, even more for it than the price increases. We've been seeing previously. Thank you.

Mike Eastwood: Yeah, we don't disclose on an individual product level. I would say we are very, very pleased with the progress of CoCounsel across the total Thomson Reuters.

Jason Haas: Got it. That's very helpful. Thank you. As a follow-up, I was curious if you could comment on the size and growth of CoCounsel. Harvey recently disclosed they're doing $100 million of ARR. I was curious how CoCounsel compares to that. Thank you.

Co Council.

Harvey recently disclosed they're doing $100 million of IRR.

Curious, how how called counsel comparison, thank you.

Yeah, we don't disclose on an individual product level I would say we are very very pleased with the progress of co counsel across the total tier.

Gary Bisbee: Got it. Okay. Thank you.

Steve Hasker: Sure. Thanks, Jason.

Mike Eastwood: We don't disclose on an individual product level. I would say we are very pleased with the progress of CoCounsel across the total TR.

Operator: Our next question comes from George Tong with Goldman Sachs.

[Analyst 3]: Hi, thanks. Good morning. Sticking with the topic of AI, are you seeing different adoption curves for AI tools between large enterprise clients versus mid-market or smaller firms? How are you tailoring your go-to-market strategies accordingly?

Okay. Thank you.

Sure.

Jason Haas: Got it. Okay. Thank you.

Thanks, guys.

Mike Eastwood: Sure.

Our next question comes from George Tong with Goldman Sachs.

Operator: Thanks, Jason. Our next question comes from George Tong with Goldman Sachs.

Hi, Thanks, good morning.

Sticking with the topic of AI are you seeing different adoption curves for AI tools between March enterprise clients versus mid market or smaller firms.

George Tong: Hi. Thanks. Good morning. Sticking with the topic of AI, are you seeing different adoption curves for AI tools between large enterprise clients versus mid-market or smaller firms? How are you tailoring your go-to-market strategies accordingly?

Steve Hasker: Yeah, thanks, George. I think what's interesting in this sort of AI revolution is that we're seeing a pretty even demand curve across the different segments. Relative to when we would put out a new version of Westlaw or a new version of Practical Law in the legal segment, it would very much be the largest, most sophisticated firms with the most evolved chief knowledge officer groups and so forth. They were the first customer set. Whereas now we see sole proprietor, sole operator lawyers taking up CoCounsel and wanting to hear about the latest version of Westlaw if they're in the litigation business. I think that's true of the tax and accounting side of things as well. It's a slightly different and potentially more attractive dynamic for us.

Yeah, Jason, I'll provide, uh, some caller on that. We'll continue. No surprise the price for Value, um, over the time time Horizon, as we move forward, and I'll intentionally use the phrase, uh, commercial packages to my comment earlier versus Point Solutions, looking at the collection of offerings. It will include a combination of a premium, uh, of the initial sale but then also higher out-year, um, price increases. So you'll see a continued opportunity, uh, for sustained, uh, acceleration from all of our businesses. Um, as a result of that, that gives us confidence in delivering for uh, 2026 25 and 2026 guidance. But I would encourage you to focus on the overall Suite of all things. Versus

Products. So there will be a step up and there will be um, out-year increases.

And how are you tailoring your go to market strategies Accordingly.

Yes, Thanks George.

So I think what's interesting in this sort of AI Revolution.

Steve Hasker: Yeah. Thanks, George. I think what's interesting in this sort of AI revolution is that we're seeing a pretty even demand curve across the different segments. Relative to when we would put out a new version of Westlaw or a new version of Practical Law in the legal segment, it would very much be the largest, most sophisticated firms with the most evolved chief knowledge officer groups and so forth. They were the first customer set. Whereas now we see sole proprietor, sole operator lawyers, taking up CoCounsel and wanting to hear about the latest version of Westlaw if they're in the litigation business. I think that's true of the tax and accounting side of things as well. It's a slightly different and potentially more attractive dynamic for us.

Is that we're seeing a pretty even.

Got it. That's very helpful. Thank you. And as a follow, I was curious if you could comment on this size and growth of co-consul. Um, so Harvey recently, disclosed they're doing 100 million of ARR. Um so I was curious how um how cold Council compares to that. Thank you.

Demand.

Across the different segments, so relative to when we would put out a new version of West La New version of practical law in the legal segment.

Yeah. Uh, we don't disclose on an individual product, uh, level. I would say, we are very, very pleased, uh, with the progress of co-consul across the, uh, total TR

And it would very much be the sort of the largest most sophisticated firms with the most.

Okay, thank you.

Sure.

Thanks Chase.

The most evolved sort of chief knowledge officer groups, and so forth value, where the first customer ship, whereas now we see.

Our next question comes from George Tong with Goldman Sachs.

Sole proprietor sole operator lawyers.

Taking up co council.

And wanting to hear about the latest version of West La if there if there is litigation business.

Hi, thanks. Good morning. Um, sticking with the topic of AI, are you seeing different adoption curves for AI tools between large enterprise clients versus mid-market or smaller firms? And how are you tailoring your go-to-market strategies accordingly?

So.

[Analyst 3]: Got it. That's helpful. Can you talk a little bit about what internal benchmarks or KPIs you're using to measure the ROI of AI investments, particularly in terms of customer retention or customer upsell rates or the percentage of annualized contract value that's coming from AI?

That's true of the tax and accounting side of things as well, so it's a slightly different in and potentially.

Yeah, thanks George. Um, so I think what's interesting in this sort of AI Revolution,

More attractive dynamic for us.

Um, is that we're seeing a pretty even?

Got it that's helpful. And then can you talk a little bit about what internal benchmarks or kpis are using to measure the ROI of AI investments, particularly in terms of the.

George Tong: Got it. That's helpful. Can you talk a little bit about what internal benchmarks or KPIs you're using to measure the ROI of AI investments, particularly in terms of customer retention or customer upsell rates or the percentage of ACV that's coming from AI?

Mike Eastwood: Yeah, George, I think it's a combination or convergence of all the items that you mentioned there. I certainly look at it from a gross margin perspective, just given in the last two and a half years, we have a different type of cost in regards to the large language model payings or searches associated with that, the cloud cost, etc. Customer retention, we've talked a lot about in the last few quarters. That continues to be a key focus item. Also, the adoption rates because some of these new offerings are really important for us, and we track the adoption and usage on a monthly, quarterly basis. It's really a convergence, George, of the items that you mentioned, not solely one item.

Customer retention or customer upsell rates or the percentage of ACD, that's coming from AI.

Yes, George I think it's a combination of convergence of all the items that you mentioned there I certainly look at it from a gross margin perspective, just given in the last two and a half years, we don't have a different type of costs in regards to the large single model things are searches associated.

Mike Eastwood: George, I think it's a combination or convergence of all the items that you mentioned there. I certainly look at it from a gross margin perspective, just given in the last 2.5 years, we have a different type of cost in regards to the large language model, pings or searches associated with that, the cloud cost, et cetera. Customer retention, we've talked a lot about in the last few quarters. That continues to be a key focus item. Then also the adoption rates, because some of these new offerings are really important for us, and we track the adoption and usage on a monthly, quarterly basis. It's really a convergence, George, of the items that you mentioned, not solely one item.

With that the cloud cost et cetera customer retention, we've talked a lot about in the last few quarters that continues to be a key focus item and then also the adoption adoption rate because some of these new offerings.

Uh, demand curve across the different segments. So, relative to when we would put out a new version of Westlaw or a new version of practical law in the legal segment, and it would very much be the sort of the largest most sophisticated firms with the most, uh, uh, the most evolved sort of Chief knowledge officer groups and so forth. They were the first customer set. Whereas now, we see. Um, sole proprietor, you know, sole operator, lawyers, uh, taking up co-consul and, and wanting to hear about the latest, uh, version of of West law if they're if they're in the litigation business. And so, um, you know, I think that's true of, uh, of the tax and accounting side of things as well. So it's a slightly different.

and potentially, um,

More attractive Dynamic for us.

Are really important for us and we track the adoption and usage on a monthly quarterly basis. So it's really a convergence of Georgia. The items that you mentioned not solely one item.

Steve Hasker: Very helpful. Thank you.

Mike Eastwood: All right, great. I think we'll end the call there. Thanks, thanks everybody for your time. Have a good day.

Very helpful. Thank you.

Got it, that's helpful. And then can you talk a little bit about what internal benchmarks, or kpis you're using to measure the ROI of AI Investments? Particularly in terms of, uh, customer retention or customer upsell rates or the percentage of ACV? That's coming from AI?

George Tong: Very helpful. Thank you.

Alright, great.

I think we'll learn.

We'll end the call there. So thanks, thanks, everybody for your time.

Steve Hasker: All right. Great. I think we'll end the call there. Thanks everybody for your time. Have a good day.

Good day.

Um, Etc, customer retention. Uh, we've talked a lot about, uh, in the last few quarters that continues, uh, to be a key, Focus item, and then also the adoption adoption rate, because some of these new offerings, uh,

Are really important for us and we track uh the adoption and usage uh on a monthly quarterly basis. So it's really a convergence. Um George of the items that you mentioned not solely 1 item,

Very cool. Thank you.

All right, great. Um, I think we'll end the call there. So thanks, uh, thanks everybody for your time.

Have a good day.

This does conclude today's call. Thank you for your participation. You may now disconnect