Half Year 2026 Wolters Kluwer NV Earnings Call

August 5, 2026

Operator: Good day, and thank you for standing by. Welcome to the Wolters Kluwer Half Year 2026 Results Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising that you are in the queue to ask a question. Please be advised that today's call is being recorded.

Operator: Good day, and thank you for standing by. Welcome to the Wolters Kluwer H1 2026 Results Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising that you are in the queue to ask a question. Please be advised that today's call is being recorded.

Speaker #1: Good day, and thank you for standing by. Welcome to the Wolters Kluwer Half-Year 2026 Results Webcast and Conference Call. At this time, all participants are in listen-only mode.

Speaker #1: After the presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #1: You will then hear an automated message advising that you are in the queue to ask a question. Please be advised that today's call is being recorded.

Speaker #1: I'd now like to hand the call over to your host, Meg Geldens, Vice President of Investor Relations, to begin today's conference. Please go ahead.

Operator: I'd now like to hand the call over to your host, Meg Geldens, Vice President, Investor Relations, to begin today's conference. Please go ahead.

Speaker #2: Hello, everyone, and welcome to our half-year 2026 results presentation. Today's earnings release and the presentation slides are available on the Investor section of our website, wolterskluwer.com.

Meg Geldens: Hello, everyone, welcome to our H1 2026 results presentation. Today's earnings release and the presentation slides are available on the investor section of our website, wolterskluwer.com. On the call today are Stacey Caywood, our CEO, and Kevin Entricken, our CFO. Stacy and Kevin will present the highlights of the H1 results and provide an update on how we're progressing with our AI strategy. After the presentation, we will take questions. Before we start, I'll remind you that some statements we make today may be forward-looking. We caution that these statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in these statements. Factors that could affect Wolters Kluwer's future financial results are disclosed in Note two of today's release and in our latest annual report. As usual, we refer to adjusted profits, which exclude non-benchmark items.

Meg Geldens: Hello, everyone, welcome to our H1 2026 Results Presentation. Today's earnings release and the presentation slides are available on the investor section of our website, wolterskluwer.com. On the call today are Stacey Caywood, our CEO, and Kevin Entricken, our CFO. Stacy and Kevin will present the highlights of the H1 results and provide an update on how we're progressing with our AI strategy. After the presentation, we will take questions.

Speaker #2: On the call today are Stacey Kaywood, our CEO, and Kevin Entrekin, our CFO. Stacey and Kevin will present the highlights of the first half results and provide an update on how we're progressing with our AI strategy.

Speaker #2: After the presentation, we will take questions. Before we start, I'll remind you that some statements we make today may be forward-looking. We caution that these statements are subject to risks and uncertainties.

Meg Geldens: Before we start, I'll remind you that some statements we make today may be forward-looking. We caution that these statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in these statements. Factors that could affect Wolters Kluwer's future financial results are disclosed in Note two of today's release and in our latest annual report. As usual, we refer to adjusted profits, which exclude non-benchmark items.

Speaker #2: They may cause actual results to differ materially from those indicated in these statements. Factors that could affect Wolters Kluwer's future financial results are disclosed in Note 2 of today's release, and in our latest annual report.

Speaker #2: As usual, we refer to adjusted profits, which exclude non-benchmark items. We also refer to growth in constant currencies, which excludes the effect of exchange rate movements.

Meg Geldens: We also refer to growth in constant currencies, which excludes the effect of exchange rate movements. We refer to organic growth, which excludes both the effect of currency and the effect of acquisitions and divestments. Reconciliations to IFRS numbers can be found in Note four of today's release. At this time, I would like to hand over to our CEO, Stacey Caywood.

Speaker #2: And we refer to organic growth, which excludes both the effect of currency and the effect of acquisitions and investments. Reconciliations to IFRS numbers can be found in Note 4 of today's release.

Speaker #2: At this time, I would like to hand over to our CEO, Stacey Kaywood.

Speaker #3: Thank you, Meg. Welcome, everyone, and thank you for joining today's call. As you may have seen from our press releases this morning, we've had a good start to the year, in line with our expectations.

Stacey Caywood: Thank you, Meg. Welcome everyone, thank you for joining today's call. As you may have seen from our press release this morning, we've had a good start to the year, in line with our expectations. Organic growth was 5%. Excluding print, organic growth was 6%, subscription renewals are going well across the group. The adjusted operating profit margin increased by 100 basis points, putting us in a good position to step up investment in product development in the coming months. I'm pleased to reiterate our group-level guidance, which includes a margin increase for the full year. We are executing on our near-term priority of speeding up the development of advanced AI innovation, which is delivering improved productivity and outcomes for our customers.

Speaker #3: Organic growth was 5%. Excluding print, organic growth was 6%, and subscription renewals are going well across the group. The adjusted operating profit margin increased by 100 basis points, putting us in a good position to step up investment and product development in the coming months.

Speaker #3: And I'm pleased to reiterate our group-level guidance, which includes a margin increase for the full year. We are executing on our near-term priority of speeding up the development of advanced AI innovation, which is delivering improved productivity and outcomes for our customers.

Stacey Caywood: I'm pleased to reiterate our group-level guidance, which includes a margin increase for the full year. We are executing on our near-term priority of speeding up the development of advanced AI innovation, which is delivering improved productivity and outcomes for our customers. Our AI features are directly incorporated into our platforms, seamlessly integrated with our trusted proprietary content, and where appropriate, integrated with client data held in our secure systems of record.

Speaker #3: Our AI features are directly incorporated into our platforms, seamlessly integrated with our trusted proprietary content, and, where appropriate, integrated with client data held in our secure systems of record.

Stacey Caywood: Our AI features are directly incorporated into our platforms, seamlessly integrated with our trusted proprietary content, and where appropriate, integrated with client data held in our secure systems of record. Our AI solutions leverage our advanced, expert-validated AI technology that keeps humans in the loop. These are differentiators which are critical for our customers. I am pleased to report that our recent acquisitions performed strongly in H1, with revenues ahead of plan. These bolt-on acquisitions are extending our existing positions and offering us new growth opportunities. We also made progress on executing several key partnerships, which allow us to play a key role in professionals' workflow. Let me take you through the key highlights by division. Health delivered 5% organic growth, an improvement on H1 of last year.

Speaker #3: Our AI solutions leverage our advanced, expert-validated AI technology that keeps humans in the loop. These are differentiators which are critical for our customers. I'm pleased to report that our recent acquisitions performed strongly in the first half, with revenues ahead of plan.

Stacey Caywood: Our AI solutions leverage our advanced, expert-validated AI technology that keeps humans in the loop. These are differentiators which are critical for our customers. I am pleased to report that our recent acquisitions performed strongly in H1, with revenues ahead of plan. These bolt-on acquisitions are extending our existing positions and offering us new growth opportunities. We also made progress on executing several key partnerships, which allow us to play a key role in professionals' workflow.

Speaker #3: These bolt-on acquisitions are extending our existing positions and offering us new growth opportunities. We also made progress on executing several key partnerships, which allow us to play a key role in professionals' workflow.

Speaker #3: Let me take you through the key highlights by division. Health delivered 5% organic growth and an improvement on the first half of last year. The adjusted operating profit margin increased by 110 basis points, mainly reflecting the ongoing mix shift as well as operational gearing and efficiencies.

Stacey Caywood: Let me take you through the key highlights by division. Health delivered 5% organic growth, an improvement on H1 of last year. The adjusted operating profit margin increased by 110 basis points, mainly reflecting the ongoing mix shift as well as operational gearing and efficiencies. Clinical Solutions grew 5% organically. The UpToDate suite performed well, with good renewal rates in clinical decision support and drug data among health systems in the US and globally.

Stacey Caywood: The adjusted operating profit margin increased by 110 basis points, mainly reflecting the ongoing mix shift as well as operational gearing and efficiencies. Clinical Solutions grew 5% organically. The UpToDate suite performed well, with good renewal rates in clinical decision support and drug data among health systems in the US and globally. I am very pleased to report today that over 90% of our US Enterprise Edition customers have signed up to adopt UpToDate Enterprise Expert AI, and more on that in a moment. Legal Learning Research and Practice grew 4% organically, or 8% when excluding print, led by 6% organic growth in medical research, partly reflecting a recently added open-access publishing partnership. In Learning and Practice, organic growth slowed as digital learning solutions for nursing schools faced a tough comparable while print books continued to decline. Turning to Tax & Accounting on the next slide.

Speaker #3: Clinical Solutions grew 5% organically. The UpToDate suite performed well, with good renewal rates in clinical decision support and drug data among health systems in the US and globally.

Speaker #3: And I'm very pleased to report today that over 90% of our U.S. Enterprise Edition customers have signed up to adopt up-to-date enterprise expert AI—and more on that in a moment.

Stacey Caywood: I am very pleased to report today that over 90% of our US Enterprise Edition customers have signed up to adopt UpToDate Enterprise Expert AI, and more on that in a moment. Legal Learning Research and Practice grew 4% organically, or 8% when excluding print, led by 6% organic growth in medical research, partly reflecting a recently added open-access publishing partnership.

Speaker #3: Legal Research & Learning Research and Practice grew 4% organically, or 8% when excluding print, led by 6% organic growth in Medical Research, partly reflecting a recently added open access publishing partnership.

Speaker #3: In Learning & Practice, organic growth slowed, as digital learning solutions for nursing schools faced a tough comparable, while print books continued to decline. Turning to Tax & Accounting on the next slide.

Stacey Caywood: In Learning and Practice, organic growth slowed as digital learning solutions for nursing schools faced a tough comparable while print books continued to decline. Turning to Tax & Accounting on the next slide. Tax & Accounting grew 6% organically, in line with H1 of last year. The adjusted operating profit margin eased slightly as we increased investments in product development.

Speaker #3: Tax and accounting grew 6% organically, in line with the first half of last year. The adjusted operating profit margin eased slightly as we increased investments in product development.

Stacey Caywood: Tax & Accounting grew 6% organically, in line with H1 of last year. The adjusted operating profit margin eased slightly as we increased investments in product development. In North America, revenues grew 5% organically as continued strong organic growth in recurring software revenues was partly offset by a sharp decline in print books and other non-recurring revenues. Growth was led by an 18% increase in cloud software revenues as customers continued to migrate to the CCH Axcess cloud-native platform and adopt additional workflow modules, including our new agentic AI modules. In Europe, revenues grew 8% organically, driven by 16% growth in cloud software solutions, with all regions performing well. Cloud-based automation and data exchange solutions, in particular, e-invoicing solutions, saw strong organic growth. Moving to the next slide, Financial and Corporate Compliance delivered 4% organic growth in line with the comparable period a year ago.

Speaker #3: In North America, revenues grew 5% organically, as continued strong organic growth in recurring software revenues was partly offset by a sharp decline in print books and other non-recurring revenues.

Stacey Caywood: In North America, revenues grew 5% organically as continued strong organic growth in recurring software revenues was partly offset by a sharp decline in print books and other non-recurring revenues. Growth was led by an 18% increase in cloud software revenues as customers continued to migrate to the CCH Axcess cloud-native platform and adopt additional workflow modules, including our new agentic AI modules.

Speaker #3: Growth was led by an 18% increase in cloud software revenues as customers continued to migrate to the CCH Access Cloud Native platform and adopt additional workflow modules, including our new agentic AI modules.

Speaker #3: In Europe, revenues grew 8% organically, driven by 16% growth in cloud software solutions, with all regions performing well. Cloud-based automation and data exchange solutions, in particular e-invoicing solutions, saw strong organic growth.

Stacey Caywood: In Europe, revenues grew 8% organically, driven by 16% growth in cloud software solutions, with all regions performing well. Cloud-based automation and data exchange solutions, in particular, e-invoicing solutions, saw strong organic growth. Moving to the next slide, Financial and Corporate Compliance delivered 4% organic growth in line with the comparable period a year ago.

Speaker #3: Moving to the next slide, Financial and Corporate Compliance delivered 4% organic growth, in line with the comparable period a year ago. The adjusted operating profit margin increased, primarily due to the divestment of FRR late last year.

Stacey Caywood: The adjusted operating profit margin increased primarily due to the divestment of FRR late last year. Legal Services delivered 5% organic growth, driven by subscription renewals, upselling of services such as business licenses, and strong growth at RASi in the mid-sized corporate market. Corporate Legal Services transactional revenues grew 4% as subdued M&A volumes and a ramp down of BOI activity were more than offset by good transactional growth in the mid-size US corporate segment. Financial services grew 3% organically, supported by a 6% increase in recurring revenues, while lending-related transactional revenues remained subdued. In Legal & Regulatory, we delivered 5% organic growth, or 8% if you exclude print. The adjusted operating profit margin eased very slightly as increased investment in product development and margin dilution from recent acquisitions offset underlying efficiencies. Information Solutions grew 5% organically against a challenging comparable created by the German federal elections last year.

Speaker #3: Legal Services delivered 5% organic growth, driven by subscription renewals, upselling of services such as business licenses, and strong growth at RASI in the midsize corporate market.

Speaker #3: Corporate Legal Services transactional revenues grew 4%, as subdued M&A volumes and a ramp-down of BOI activity were more than offset by good transactional growth in the midsize U.S. corporate segment.

Speaker #3: Financial services grew 3% organically, supported by a 6% increase in recurring revenues, while lending-related transactional revenues remained subdued. In Legal & Regulatory, we delivered 5% organic growth, or 8% if you exclude print.

Stacey Caywood: Financial services grew 3% organically, supported by a 6% increase in recurring revenues, while lending-related transactional revenues remained subdued. In Legal & Regulatory, we delivered 5% organic growth, or 8% if you exclude print. The adjusted operating profit margin eased very slightly as increased investment in product development and margin dilution from recent acquisitions offset underlying efficiencies.

Speaker #3: The adjusted operating profit margin eased very slightly, as increased investment in product development and margin dilution from recent acquisitions offset underlying efficiencies. Information Solutions grew 5% organically against a challenging comparable created by the German federal elections last year.

Stacey Caywood: Information Solutions grew 5% organically against a challenging comparable created by the German federal elections last year. The integration of Libra Technology, the German AI startup we acquired in November last year, is ahead of plan. We have infused the Libra AI assistant directly with our legal content across 10 European countries and are seeing rapid rates of adoption among law firms. Legal and regulatory software saw 7% organic growth.

Speaker #3: The integration of Libra Technology, the German AI startup we acquired in November last year, is ahead of plan. We have infused the Libra AI Assistant directly with our legal content, across 10 European countries, and are seeing rapid rates of adoption among law firms.

Stacey Caywood: The integration of Libra Technology, the German AI startup we acquired in November last year, is ahead of plan. We have infused the Libra AI assistant directly with our legal content across 10 European countries and are seeing rapid rates of adoption among law firms. Legal and regulatory software saw 7% organic growth. Enterprise legal management solutions saw mid-single-digit organic growth, supported by 10% growth in legal invoice volumes. Brightflag, acquired in June 2025 and focused on serving mid and large corporations, continued to perform strongly. The Corporate Performance & ESG division delivered 7% organic growth. Revenue growth continued to be driven by strong double-digit organic growth in cloud software revenues. Non-recurring revenues were weak, mainly due to a decline in software implementation projects in the H1. The adjusted operating profit margin increased to 9.7%, reflecting operational gearing and careful expense management.

Speaker #3: Legal and regulatory software saw 7% organic growth. Enterprise legal management solutions saw mid-single-digit organic growth, supported by 10% growth in legal invoice volumes. Bright Flag, acquired in June 2025 and focused on serving mid and large corporations, continued to perform strongly.

Stacey Caywood: Enterprise legal management solutions saw mid-single-digit organic growth, supported by 10% growth in legal invoice volumes. Brightflag, acquired in June 2025 and focused on serving mid and large corporations, continued to perform strongly. The Corporate Performance & ESG division delivered 7% organic growth. Revenue growth continued to be driven by strong double-digit organic growth in cloud software revenues.

Speaker #3: The Corporate Performance & ESG division delivered 7% organic growth. Revenue growth continued to be driven by strong double-digit organic growth in cloud software revenues.

Speaker #3: Non-recurring revenues were weak, mainly due to a decline in software implementation projects in the first half. The adjusted operating profit margin increased to 9.7%, reflecting operational gearing and careful expense management.

Stacey Caywood: Non-recurring revenues were weak, mainly due to a decline in software implementation projects in the H1. The adjusted operating profit margin increased to 9.7%, reflecting operational gearing and careful expense management. In environmental health and safety in ESG, the Enablon suite grew 2% organically.

Speaker #3: In Environmental, Health, and Safety within ESG, the Enable On Suite grew 2% organically. While Enable On's recurring cloud software revenues grew 10%, we saw a decline in implementation services and longer sales cycles amidst the geopolitical uncertainty in the Middle East.

Stacey Caywood: In environmental health and safety in ESG, the Enablon suite grew 2% organically. While Enablon's recurring cloud software revenues grew 10%, we saw a decline in implementation services and longer sales cycles amidst the geopolitical uncertainty in the Middle East. Within Corporate Performance, CCH Tagetik delivered 12% organic growth, lifted by strong 19% growth in recurring cloud revenues, driven by new customer wins and upgrades. On-premise license fees and services declined as businesses transitioned to the cloud. In audit and assurance, TeamMate delivered high single-digit organic growth, and the integration of StandardFusion risk and control management tools is on track. Our corporate tax unit also reported high single-digit growth. We're delighted to announce today that Mirosa has joined Wolters Kluwer. This bolt-on acquisition will accelerate the development of a global indirect tax product.

Stacey Caywood: While Enablon's recurring cloud software revenues grew 10%, we saw a decline in implementation services and longer sales cycles amidst the geopolitical uncertainty in the Middle East. Within Corporate Performance, CCH Tagetik delivered 12% organic growth, lifted by strong 19% growth in recurring cloud revenues, driven by new customer wins and upgrades. On-premise license fees and services declined as businesses transitioned to the cloud.

Speaker #3: Within Corporate Performance, CCH Tagetik delivered 12% organic growth, lifted by strong 19% growth in recurring cloud revenues, driven by new customer wins and upgrades.

Speaker #3: On-premise license fees and services declined as businesses transitioned to the cloud. In Audit and Assurance, TeamMate delivered high single-digit organic growth, and the integration of standard Fusion Risk and Control management tools is on track.

Stacey Caywood: In audit and assurance, TeamMate delivered high single-digit organic growth, and the integration of StandardFusion risk and control management tools is on track. Our corporate tax unit also reported high single-digit growth. We're delighted to announce today that Mirosa has joined Wolters Kluwer. This bolt-on acquisition will accelerate the development of a global indirect tax product.

Speaker #3: Our Corporate Tax unit also reported high single-digit growth. We're delighted to announce today that Marossa has joined Wolters Kluwer. This bolt-on acquisition will accelerate the development of a global indirect tax product.

Speaker #3: In February, we announced plans to speed up the pace of advanced AI innovation to capture opportunities ahead, drive growth, and support our customers.

Stacey Caywood: In February, we announced plans to speed up the pace of advanced AI innovation to capture opportunities ahead to derive growth and support our customers. We announced our intention to increase product development spend to between 12% and 13% of revenues this year and beyond. We said that we intend to fund this investment while simultaneously increasing our operating profit margin. We are executing on this plan and, as noted, pursuing a rapid rollout of advanced AI capabilities across several platforms. While I will highlight three important rollouts today, I also want to note that we are adding AI-powered features across the entire portfolio, and there is more to come as we green-light new investments. In February, we also noted two other areas of near-term focus, fostering partnerships and intensifying our go-to-market. Partnerships allow us to embed our solutions more deeply into customer workflows and ecosystems.

Speaker #3: We announced our intention to increase product development spend to between 12% and 13% of revenues this year and beyond. And we said that we intend to fund this investment while simultaneously increasing our operating profit margin.

Speaker #3: We are executing on this plan and, as noted, pursuing a rapid rollout of advanced AI capabilities across several platforms. While I will highlight three important rollouts today, I also want to note that we are adding AI-powered features across the entire portfolio, and there is more to come as we greenlight new investments.

Stacey Caywood: While I will highlight three important rollouts today, I also want to note that we are adding AI-powered features across the entire portfolio, and there is more to come as we green-light new investments. In February, we also noted two other areas of near-term focus, fostering partnerships and intensifying our go-to-market. Partnerships allow us to embed our solutions more deeply into customer workflows and ecosystems.

Speaker #3: In February, we also noted two other areas of near-term focus: fostering partnerships and intensifying our go-to-market efforts. Partnerships allow us to embed our solutions more deeply into customer workflows and ecosystems.

Speaker #3: Our initiatives in go-to-market will create more data-driven and scalable sales and revenue processes, leveraging AI-powered capabilities. As I mentioned earlier, as of July, over 90% of our U.S. Enterprise Edition customers have signed up to adopt up-to-date Expert AI.

Stacey Caywood: Our initiatives in go-to-market will create more data-driven and scalable sales and revenue processes, leveraging AI-powered capabilities. As I mentioned earlier, as of July, over 90% of our US Enterprise Edition customers have signed up to adopt UpToDate Expert AI. This means that our Expert AI solution is now available in around 2,500 US hospitals, highlighting the trust our customers place in us to deliver enterprise-grade AI for their high-stakes decisions. UpToDate Expert AI is also starting to be adopted by international health systems. Today, we have over 230 sites activated across 36 countries. In every international market, we comply with the evolving local regulatory frameworks such as the EU AI Act and Medical Devices Regulation. We are now focused on activation, support, and integrations, and we continue to add new AI capabilities and additional content to the UpToDate Enterprise platform.

Speaker #3: This means that our expert AI solution is now available in approximately 2,500 U.S. hospitals, highlighting the trust our customers place in us to deliver enterprise-grade AI for their high-stakes decisions.

Speaker #3: Up-to-date expert AI is also starting to be adopted by international health systems. Today, we have over 230 sites activated across 36 countries. In every international market, we comply with the evolving local regulatory frameworks, such as the EU AI Act and Medical Devices Regulation.

Stacey Caywood: Today, we have over 230 sites activated across 36 countries. In every international market, we comply with the evolving local regulatory frameworks such as the EU AI Act and Medical Devices Regulation. We are now focused on activation, support, and integrations, and we continue to add new AI capabilities and additional content to the UpToDate Enterprise platform.

Speaker #3: We are now focused on activation, support, and integrations, and we continue to add new AI capabilities and additional content to the up-to-date enterprise platform.

Speaker #3: In the last few weeks, we went live with AI drug dosing, a valuable new feature which has passed rigorous validation by our expert clinicians and pharmacists, as well as structured testing against real-world medication questions.

Stacey Caywood: In the last few weeks, we went live with AI drug dosing, a valuable new feature which has passed rigorous validation by our experts, clinicians, and pharmacists, as well as structured testing against real-world medication questions. We are currently rolling out local guidelines in close collaboration with a number of hospital customers with a view to launch more broadly later this year. As noted, we are continuing to develop integrated offerings with EMRs such as Epic and ambient players such as Abridge. These integrations are very important for our future platforms to support our healthcare customers to manage chronic conditions such as diabetes and hypertension. We are also making good progress with CCH Axcess Expert AI. As we enter the key selling season, we already have around 250 accounting firms who are subscribing to one or more of our new agentic AI modules.

Speaker #3: We are currently rolling out local guidelines, in close collaboration with a number of hospital customers, with a view to launching more broadly later this year.

Speaker #3: And as noted, we are continuing to develop integrated offerings with EMRs, such as Epic, and ambient players such as Abridge. These integrations are very important for our future platforms to support our healthcare customers to manage chronic conditions, such as diabetes and hypertension.

Stacey Caywood: These integrations are very important for our future platforms to support our healthcare customers to manage chronic conditions such as diabetes and hypertension. We are also making good progress with CCH Axcess Expert AI. As we enter the key selling season, we already have around 250 accounting firms who are subscribing to one or more of our new agentic AI modules.

Speaker #3: We are also making good progress with CCH Axcess expert AI. As we enter the key selling season, we already have around 250 accounting firms who are subscribing to one or more of our new agentic AI modules.

Speaker #3: While adoption will build gradually, I'm very encouraged by the sales pickup we saw starting in June, and the enthusiastic adopters. This graphic illustrates where the agentic AI modules operate in the tax workflow.

Stacey Caywood: While adoption will build gradually, I'm very encouraged by the sales pickup we saw starting in June, and the enthusiastic reaction we are getting from early adopters. This graphic illustrates where the agentic AI modules operate in the tax workflow. CCH Axcess Intelligence is the top-selling module. This tool acts as an overarching assistant, orchestrating agents to perform a wide range of tasks, from collaborating with clients, to planning and scheduling resources, to ingesting and analyzing documents, and generating insights. It leverages firm and client data from across the platform, along with our deep domain expertise and proprietary content. Customers value the seamless and secure integration with firm and client data and the overall quality and trustworthiness of our content and platform. We continue to make improvements and add new functionality.

Speaker #3: CCH Access Intelligence is the top-selling module. This tool acts as an overarching assistant, orchestrating agents to perform a wide range of tasks—from collaborating with clients, to planning and scheduling resources, to ingesting and analyzing documents and generating insights.

Speaker #3: It leverages firm and client data from across the platform, along with our deep domain expertise and proprietary content. Customers value the seamless and secure integration with firm and client data, as well as the overall quality and trustworthiness of our content and platform.

Stacey Caywood: It leverages firm and client data from across the platform, along with our deep domain expertise and proprietary content. Customers value the seamless and secure integration with firm and client data and the overall quality and trustworthiness of our content and platform. We continue to make improvements and add new functionality. In May, we launched CCH Axcess Advisor, which uses AI to identify and prioritize new opportunities for CPAs to advise their clients.

Speaker #3: We continue to make improvements and add new functionality. In May, we launched CCH Access Advisor, which uses AI to identify and prioritize new opportunities for CPAs to advise their clients.

Stacey Caywood: In May, we launched CCH Axcess Advisor, which uses AI to identify and prioritize new opportunities for CPAs to advise their clients. We also enhanced CCH Axcess Workflow with AI-powered scheduling intelligence. In June, we launched an enhanced CCH Axcess Scan with AI-powered ingestion of complex unstructured data from US K-1 partnerships forms. Users are reporting up to 70% efficiencies when they use the new K-1 scan tool. In legal and regulatory, we acquired a German legal AI startup, Libra Technology, in November 2023. Within three months of completing this acquisition, we had integrated the Libra AI technology with our Belgian, Dutch, Polish, and Italian content and launched the solution in-market. In March, we added our four Eastern European countries.

Speaker #3: We also enhanced CCH Axcess Workflow with AI-powered scheduling intelligence. And, in June, we launched and enhanced CCH Axcess Scan with AI-powered ingestion of complex, unstructured data from U.S. K-1 partnership forms.

Stacey Caywood: We also enhanced CCH Axcess Workflow with AI-powered scheduling intelligence. In June, we launched an enhanced CCH Axcess Scan with AI-powered ingestion of complex unstructured data from US K-1 partnerships forms. Users are reporting up to 70% efficiencies when they use the new K-1 scan tool. In legal and regulatory, we acquired a German legal AI startup, Libra Technology, in November 2023.

Speaker #3: Users are reporting up to 70% efficiency when they use the new K1 Scan tool. In Legal & Regulatory, we acquired a German legal AI startup, Libra Technology, in November last year.

Speaker #3: Within three months of completing this acquisition, we had integrated the Libra AI technology with our Belgian, Dutch, Polish, and Italian content, and launched the solution in-market.

Stacey Caywood: Within three months of completing this acquisition, we had integrated the Libra AI technology with our Belgian, Dutch, Polish, and Italian content and launched the solution in-market. In March, we added our four Eastern European countries. The Libra solution provides lawyers with an integrated AI-enabled working environment that is directly embedded into their workflows, combining GenAI-powered search across trusted legal content with tools that support the drafting of briefs, memos, and other legal documents.

Speaker #3: In March, we added our four Eastern European countries. The Libra solution provides lawyers with an integrated, AI-enabled working environment that is directly embedded into their workflows.

Stacey Caywood: The Libra solution provides lawyers with an integrated AI-enabled working environment that is directly embedded into their workflows, combining GenAI-powered search across trusted legal content with tools that support the drafting of briefs, memos, and other legal documents. We continue to enhance capabilities. In May, we enhanced contract review and workflow integration and embedded Libra into Kleos, our practice management suite for law firms, and we have further innovations in the pipeline. Feedback from law firms has been very positive, and we're finding that in addition to monetizing the AI workspace, we are able to upsell content to Libra subscribers. The Libra acquisition will be included in organic growth in 2025. Let me finish with a few words on partnerships. Workflow and ecosystem partnerships allow us to embed our solutions more deeply into customer workflows and systems, allowing us to expand our role and extend our market reach.

Speaker #3: Combining GenAI-powered search across trusted legal content with tools that support the drafting of briefs, memos, and other legal documents, we continue to enhance capabilities.

Stacey Caywood: We continue to enhance capabilities. In May, we enhanced contract review and workflow integration and embedded Libra into Kleos, our practice management suite for law firms, and we have further innovations in the pipeline. Feedback from law firms has been very positive, and we're finding that in addition to monetizing the AI workspace, we are able to upsell content to Libra subscribers. The Libra acquisition will be included in organic growth in 2025. Let me finish with a few words on partnerships.

Speaker #3: In May, we enhanced contract review and workflow integration, and embedded Libra into Cleos, our practice management suite for law firms. We have further innovations in the pipeline.

Speaker #3: Feedback from law firms has been very positive, and we're finding that, in addition to monetizing the AI workspace, we are able to upsell content to Libra subscribers.

Speaker #3: The Libra acquisition will be included in organic growth next year. Let me finish with a few words on partnerships. Workflow and ecosystem partnerships allow us to embed our solutions more deeply into customer workflows and systems, allowing us to expand our role and extend our market reach.

Stacey Caywood: Workflow and ecosystem partnerships allow us to embed our solutions more deeply into customer workflows and systems, allowing us to expand our role and extend our market reach. Abridge is a great example. In March, we went live with UpToDate inside Abridge, allowing doctors to pull in context-aware content from UpToDate when creating a clinical note. The integration with Dragon Copilot is also on track to launch later this year.

Speaker #3: Abridge is a great example. In March, we went live with UpToDate inside Abridge, allowing doctors to pull in context-aware content from UpToDate when creating a clinical note.

Stacey Caywood: Abridge is a great example. In March, we went live with UpToDate inside Abridge, allowing doctors to pull in context-aware content from UpToDate when creating a clinical note. The integration with Dragon Copilot is also on track to launch later this year. You may have also seen our expanded technology partnership with OpenAI, which we announced in early June, allowing us to leverage OpenAI's latest APIs and enterprise-grade platform capabilities. We've made good progress on the partnership front in H1, and there's more to come. Now I'll hand over to Kevin, who will take you through the financial results in more detail.

Speaker #3: The integration with Dragon Copilot is also on track to launch later this year. You may have also seen our expanded technology, which we announced in early June, allowing us to leverage OpenAI's latest APIs and enterprise-grade platform capabilities.

Stacey Caywood: You may have also seen our expanded technology partnership with OpenAI, which we announced in early June, allowing us to leverage OpenAI's latest APIs and enterprise-grade platform capabilities. We've made good progress on the partnership front in H1, and there's more to come. Now I'll hand over to Kevin, who will take you through the financial results in more detail.

Speaker #3: We've made good progress on the partnership front in the first half, and there's more to come. Now I'll hand over to Kevin, who will take you through the financial results in more detail.

Speaker #1: Thank you, Stacey. Let's start with the headline numbers. First half 2026 revenues were $3 billion and €33 million. The absolute decline of 1% was due to currency translation.

Kevin Entricken: Thank you, Stacy. Let's start with the headline numbers. H1 2026 revenues were EUR 3 billion and 33 million. The absolute decline of 1% was due to currency translation. On a constant currency basis, revenues increased 4%. This includes the effect of last year's disposal of FRR. Organic growth was 5%, in line with H1 of last year, as expected. H1 adjusted operating profit was EUR 893 million, up 10% in constant currencies and up 9% on an organic basis. The adjusted operating profit margin increased 100 basis points to 29.4%. This was achieved through operational gearing, operating efficiency programs, and the prior year divestiture of FRR. Our guidance for the full year margin remains around 28%. We expect the previously announced increase in product development spending to be H2 weighted. H1 diluted adjusted earnings per share increased 14% in constant currencies.

Speaker #1: On a constant currency basis, revenues increased 4%. This includes the effect of last year's disposal of FRR. Organic growth was 5%, in line with the first half of last year, as expected.

Speaker #1: First half adjusted operating profit was €893 million, up 10% in constant currencies and up 9% on an organic basis. The adjusted operating profit margin increased 100 basis points to 29.4%.

Speaker #1: This was achieved through operational gearing, operating efficiency programs, and the prior year divestiture of FRR. Our guidance for the full-year margin remains at around 28%.

Kevin Entricken: This was achieved through operational gearing, operating efficiency programs, and the prior year divestiture of FRR. Our guidance for the full year margin remains around 28%. We expect the previously announced increase in product development spending to be H2 weighted. H1 diluted adjusted earnings per share increased 14% in constant currencies. H1 adjusted free cash flow was EUR 533 million, an increase of 14% in constant currencies.

Speaker #1: We expect the previously announced increase in product development spending to be second-half weighted. First-half diluted adjusted earnings per share increased 14% in constant currencies.

Speaker #1: First-half adjusted free cash flow was €533 million, an increase of 14% in constant currencies. This reflects favorable movements in working capital, which are expected to reverse in the coming quarters.

Kevin Entricken: H1 adjusted free cash flow was EUR 533 million, an increase of 14% in constant currencies. This reflects the favorable movements in working capital, which are expected to reverse in the coming quarters. The balance sheet remains strong, with a rolling 12-month net debt to EBITDA ratio of 2.0 times. Return on invested capital, also based on 12 months rolling figures, was 18.2%. Let's look at revenues by division on the next slide. All five divisions contributed to the positive organic growth. Health grew 5% organically, which was an improvement from a year ago. Clinical Solutions posted 5% organic growth, driven by good renewals and upgrades among health systems in the US and internationally. Tax and Accounting revenues grew 6% organically, in line with the comparable period, and supported by a strong Q2.

Kevin Entricken: This reflects the favorable movements in working capital, which are expected to reverse in the coming quarters. The balance sheet remains strong, with a rolling 12-month net debt to EBITDA ratio of 2.0 times. Return on invested capital, also based on 12 months rolling figures, was 18.2%. Let's look at revenues by division on the next slide. All five divisions contributed to the positive organic growth. Health grew 5% organically, which was an improvement from a year ago.

Speaker #1: The balance sheet remains strong, with a rolling 12-month net debt-to-EBITDA ratio of 2.0 times. Return on invested capital, also based on 12-month rolling figures, was 18.2%.

Speaker #1: Let's look at revenues by division on the next slide. All five divisions contributed to the positive organic growth. Health grew 5% organically, which was an improvement from a year ago.

Speaker #1: Clinical Solutions posted 5% organic growth, driven by good renewals and upgrades among health systems in the U.S. and internationally. Tax & Accounting revenues grew 6% organically, in line with the comparable period and supported by a strong second quarter.

Kevin Entricken: Clinical Solutions posted 5% organic growth, driven by good renewals and upgrades among health systems in the US and internationally. Tax and Accounting revenues grew 6% organically, in line with the comparable period, and supported by a strong Q2. Growth was driven by strong double-digit organic growth in our cloud software solutions in North America and Europe. financial and corporate compliance grew 4% organically, in line with the comparable period, with recurring subscription revenues up 6%.

Speaker #1: Growth was driven by strong double-digit organic growth in our cloud software solutions in North America and Europe. Financial and Corporate Compliance grew 4% organically, in line with the comparable period, with recurring subscription revenues up 6%.

Kevin Entricken: Growth was driven by strong double-digit organic growth in our cloud software solutions in North America and Europe. financial and corporate compliance grew 4% organically, in line with the comparable period, with recurring subscription revenues up 6%. Legal and Regulatory grew 5% organically against a tough comparable related to the German elections last year. Finally, Corporate Performance and ESG grew 7% organically, in line with the comparable period. Double-digit growth in recurring cloud software revenues was partially offset by a decline in non-recurring implementation services. On the next slide, you can see the trends in recurring and non-recurring revenues. Recurring revenue streams, shown on the left, accounted for 85% of total revenue. The most important component, Digital and Services subscriptions, sustained 7% organic growth. This reflects continued good customer contract renewals.

Speaker #1: Legal and Regulatory grew 5% organically, against a tough comparable related to the German elections last year. And finally, Corporate Performance & ESG grew 7% organically, in line with the comparable period.

Kevin Entricken: Legal and Regulatory grew 5% organically against a tough comparable related to the German elections last year. Finally, Corporate Performance and ESG grew 7% organically, in line with the comparable period. Double-digit growth in recurring cloud software revenues was partially offset by a decline in non-recurring implementation services. On the next slide, you can see the trends in recurring and non-recurring revenues. Recurring revenue streams, shown on the left, accounted for 85% of total revenue.

Speaker #1: Double-digit growth in recurring cloud software revenues was partially offset by a decline in non-recurring implementation services. On the next slide, you can see the trends in recurring and non-recurring revenues.

Speaker #1: Recurring revenue streams, shown on the left, accounted for 85% of total revenue. The most important component, digital and services subscriptions, sustained 7% organic growth.

Kevin Entricken: The most important component, Digital and Services subscriptions, sustained 7% organic growth. This reflects continued good customer contract renewals. Other recurring revenues, which include a range of repeating revenue streams such as content license and usage fees, also maintained 7% organic growth. Print subscriptions declined. The chart shows the temporary boost we experienced a year ago from the German elections for various legal publications.

Speaker #1: This reflects continued good customer contract renewals. Other recurring revenues, which include a range of repeating revenue streams such as content licenses and usage fees, also maintained 7% organic growth.

Kevin Entricken: Other recurring revenues, which include a range of repeating revenue streams such as content license and usage fees, also maintained 7% organic growth. Print subscriptions declined. The chart shows the temporary boost we experienced a year ago from the German elections for various legal publications. Non-recurring revenues, shown on the right, represents 15% of group revenues. Here we continue to see mixed trends. F&CC transactional revenues, shown in red, were up 2% in the first six months. The absence of an interest rate cut has kept US M&A volumes and lending activity at subdued levels. Legal and Regulatory transactional revenues, which are fees linked to legal spend volumes in our enterprise legal management unit, grew 10% organically. Other non-recurring revenues, such as on-premise software licenses and implementation services, declined 6% organically.

Speaker #1: Print subscriptions declined. The chart shows the temporary boost we experienced a year ago from the German elections for various legal publications. Non-recurring revenues, shown on the right, represent 15% of group revenues.

Kevin Entricken: Non-recurring revenues, shown on the right, represents 15% of group revenues. Here we continue to see mixed trends. F&CC transactional revenues, shown in red, were up 2% in the first six months. The absence of an interest rate cut has kept US M&A volumes and lending activity at subdued levels. Legal and Regulatory transactional revenues, which are fees linked to legal spend volumes in our enterprise legal management unit, grew 10% organically.

Speaker #1: Here, we continued to see mixed trends. FCC transactional revenues, shown in red, were up 2% in the first six months. The absence of an interest rate cut has kept U.S. M&A volumes and lending activity at subdued levels.

Speaker #1: Legal and regulatory transactional revenues, which are fees linked to legal spend volumes and are part of the enterprise legal management unit, grew 10% organically. Other non-recurring revenues, such as on-premise software licenses and implementation services, declined 6% organically.

Kevin Entricken: Other non-recurring revenues, such as on-premise software licenses and implementation services, declined 6% organically. Print books, which are only 1% of revenue, saw a sharp fall in H1, largely due to the changes in the publication schedule. Turning to margins on the next slide. As mentioned, H1 adjusted operating profit increased 10% in constant currencies and 9% on an organic basis. The adjusted operating profit margin increased 100 basis points to 29.4%.

Speaker #1: Print books, which are only 1% of revenue, saw a sharp fall in the first half, largely due to changes in the publication schedule.

Kevin Entricken: Print books, which are only 1% of revenue, saw a sharp fall in H1, largely due to the changes in the publication schedule. Turning to margins on the next slide. As mentioned, H1 adjusted operating profit increased 10% in constant currencies and 9% on an organic basis. The adjusted operating profit margin increased 100 basis points to 29.4%. The margin improvement in H1 was supported by the divestiture of FRR at the end of last year. This resulted in a notable margin increase in the Financial and Corporate Compliance margin. Health and Corporate Performance & ESG also saw margin improve. This mainly reflects operational gearing, mix shift of revenues, scaling of expert solutions, and expense management. Tax and Accounting and Legal and Regulatory margins eased slightly, reflecting increased investments in product development, the impact of recent acquisitions, and currency.

Speaker #1: Turning to margins on the next slide. As mentioned, first-half adjusted operating profit increased 10% in constant currencies, and 9% on an organic basis.

Speaker #1: The adjusted operating profit margin increased by 100 basis points to 29.4%. The margin improvement in the first half was supported by the divestiture of FRR at the end of last year.

Kevin Entricken: The margin improvement in H1 was supported by the divestiture of FRR at the end of last year. This resulted in a notable margin increase in the Financial and Corporate Compliance margin. Health and Corporate Performance & ESG also saw margin improve. This mainly reflects operational gearing, mix shift of revenues, scaling of expert solutions, and expense management.

Speaker #1: This resulted in a notable margin increase in the Financial and Corporate Compliance margin. Health and Corporate Performance & ESG also saw margins improve. This mainly reflects operational gearing, mix shift of revenues, scaling of expert solutions, and expense management.

Speaker #1: Tax & Accounting and Legal & Regulatory margins eased slightly, reflecting increased investments in product development, as well as the impact of recent acquisitions and currency. Investment in product development, including capitalized spend, was 11% of revenues.

Kevin Entricken: Tax and Accounting and Legal and Regulatory margins eased slightly, reflecting increased investments in product development, the impact of recent acquisitions, and currency. Investment in product development, including capitalized spend, was 11% of revenues. We expect this will ramp up in H2 as we approve and kick off AI development projects. Restructuring expenses, which we include in adjusted operating profit, amounted to EUR 9 million, compared to EUR 5 million in the comparable period.

Kevin Entricken: Investment in product development, including capitalized spend, was 11% of revenues. We expect this will ramp up in H2 as we approve and kick off AI development projects. Restructuring expenses, which we include in adjusted operating profit, amounted to EUR 9 million, compared to EUR 5 million in the comparable period. Moving to the rest of the income statement on the next slide. H1 net financing costs increased to EUR 56 million. This reflects higher coupon rates on euro bonds issued in 2025. Adjusted financing costs also included an EUR 8 million net foreign exchange loss, mainly related to the currency translation of intercompany balances. The prior year included an EUR 2 million net foreign exchange gain. Adjusted profit before tax increased 9% in constant currencies. The benchmark effective tax rate was stable at 23.8%.

Speaker #1: We expect this will ramp up in the second half, as we approve and kick off AI development projects. Restructuring expenses, which we included in adjusted operating profit, amounted to €9 million, compared to €5 million in the comparable period.

Speaker #1: Now, moving to the rest of the income statement on the next slide. First half net financing costs increased to €56 million. This reflects higher coupon rates on Eurobonds issued in 2025.

Kevin Entricken: Moving to the rest of the income statement on the next slide. H1 net financing costs increased to EUR 56 million. This reflects higher coupon rates on euro bonds issued in 2025. Adjusted financing costs also included an EUR 8 million net foreign exchange loss, mainly related to the currency translation of intercompany balances. The prior year included an EUR 2 million net foreign exchange gain. Adjusted profit before tax increased 9% in constant currencies. The benchmark effective tax rate was stable at 23.8%.

Speaker #1: Adjusted financing costs also included an €8 million net foreign exchange loss, mainly related to the currency translation of intercompany balances. The prior year included a €2 million net foreign exchange gain.

Speaker #1: As a result, adjusted profit before tax increased 9% in constant currencies. The benchmark effective tax rate was stable at 23.8%. We continued to guide to an effective benchmark tax rate for the full year in the range of 23.5% to 24.5%.

Kevin Entricken: We continue to guide to an effective benchmark tax rate for the full year in the range of 23.5% to 24.5%. Adjusted net profit was EUR 637 million, up 10% in constant currencies. H1 diluted adjusted EPS was EUR 2.83, up 14% in constant currencies. This reflects the increase in adjusted net profit and a 4% reduction in the weighted average number of shares outstanding as a result of our ongoing share buyback program. Turning to cash flow on the next slide. H1 adjusted operating cash flow increased 17% in constant currencies. The cash conversion ratio was 91%, reflecting favorable timing of working capital, which we expect will reverse in coming quarters. Capital expenditures were EUR 143 million, a slight decrease compared to the prior year, mostly due to the divestment of FRR and timing of projects. Net interest paid, excluding lease interest, increased to EUR 66 million.

Speaker #1: Adjusted net profit was $637 million euros, up 10% in constant currencies. First half diluted adjusted EPS was $2 euros and 83 euro cents, up 14% in constant currencies.

Speaker #1: This reflects the increase in adjusted net profit and a 4% reduction in the weighted average number of shares outstanding as a result of our ongoing share buyback program.

Speaker #1: Turning to cash flow on the next slide. First half adjusted operating cash flow increased 17% in constant currencies. The cash conversion ratio was 91%, reflecting favorable timing of working capital, which we expect will reverse in coming quarters.

Kevin Entricken: The cash conversion ratio was 91%, reflecting favorable timing of working capital, which we expect will reverse in coming quarters. Capital expenditures were EUR 143 million, a slight decrease compared to the prior year, mostly due to the divestment of FRR and timing of projects. Net interest paid, excluding lease interest, increased to EUR 66 million. This reflects the higher coupon interest paid and lower interest income on cash balances.

Speaker #1: Capital expenditures were €143 million, a slight decrease compared to the prior year, mostly due to the divestment of FRR and timing of projects.

Speaker #1: Net interest paid, excluding lease interest, increased to €66 million. This reflects the higher coupon interest paid and lower interest income on cash balances.

Kevin Entricken: This reflects the higher coupon interest paid and lower interest income on cash balances. Cash taxes increased to EUR 220 million, reflecting higher pre-tax income in the United States and tax assessments and payments related to prior years. As a result, adjusted free cash flow increased 14% in constant currencies to reach EUR 533 million. Now let's turn to the uses of cash on the next slide. The main uses of free cash flow in H1 were dividends and share buybacks. Dividends paid reflect the final dividend payment for 2025 fiscal year of EUR 303 million. This excludes withholding taxes, which were paid in July. Cash deployed towards share buyback repurchases amounted to EUR 215 million in H1. Net debt was approximately EUR 4 billion, unchanged from our position at the end of 2025.

Speaker #1: Cash taxes increased to €220 million, reflecting higher pre-tax income in the United States and tax assessments and payments related to prior years. As a result, adjusted free cash flow increased 14% in constant currencies to reach €533 million.

Kevin Entricken: Cash taxes increased to EUR 220 million, reflecting higher pre-tax income in the United States and tax assessments and payments related to prior years. As a result, adjusted free cash flow increased 14% in constant currencies to reach EUR 533 million. Now let's turn to the uses of cash on the next slide. The main uses of free cash flow in H1 were dividends and share buybacks. Dividends paid reflect the final dividend payment for 2025 fiscal year of EUR 303 million. This excludes withholding taxes, which were paid in July.

Speaker #1: Now, let's turn to the uses of cash on the next slide. The main uses of free cash flow in the first half were dividends and share buybacks.

Speaker #1: Dividends paid reflect the final dividend payment for the 2025 fiscal year, of €303 million. This excludes withholding taxes, which were paid in July. Cash deployed toward share buyback repurchases amounted to €215 million in the first half.

Kevin Entricken: Cash deployed towards share buyback repurchases amounted to EUR 215 million in H1. Net debt was approximately EUR 4 billion, unchanged from our position at the end of 2025. Our net debt to EBITDA ratio remains at 2.0 times within our target range for leverage. We remain in solid financial position, with sufficient room to support organic investments in the business and make select acquisitions. At this time, we are committed to our progressive dividend while continuing to execute on our share repurchases.

Speaker #1: Net debt was approximately €4 billion, unchanged from our position at the end of 2025. Our net debt to EBITDA ratio remains at 2.0 times, within our target range for Ledbridge.

Kevin Entricken: Our net debt to EBITDA ratio remains at 2.0 times within our target range for leverage. We remain in solid financial position, with sufficient room to support organic investments in the business and make select acquisitions. At this time, we are committed to our progressive dividend while continuing to execute on our share repurchases. Now let me turn to the outlook for the remainder of the year. Our divisional outlook is largely the same. However, we now expect CP and ESG organic growth to be in line with the prior year, given the geopolitical circumstances have not yet improved. This change in divisional outlook is small enough that it does not alter our overall outlook for the group. For the group as a whole, we continue to expect another year of good organic growth, further margin increase, high single-digit growth in diluted adjusted EPS and constant currencies.

Speaker #1: We remain in a solid financial position, with sufficient room to support organic investments in the business and make select acquisitions. At this time, we're committed to our progressive dividend, while continuing to execute on our share repurchases.

Speaker #1: Now, let me turn to the outlook for the remainder of the year. Our divisional outlook is largely the same. However, we now expect CP and ESG organic growth to be in line with the prior year, given that geopolitical circumstances have not yet improved.

Kevin Entricken: Now let me turn to the outlook for the remainder of the year. Our divisional outlook is largely the same. However, we now expect CP and ESG organic growth to be in line with the prior year, given the geopolitical circumstances have not yet improved. This change in divisional outlook is small enough that it does not alter our overall outlook for the group. For the group as a whole, we continue to expect another year of good organic growth, further margin increase, high single-digit growth in diluted adjusted EPS and constant currencies.

Speaker #1: This change in divisional outlook is small enough that it does not alter our overall outlook for the group. For the group as a whole, we continue to expect another year of good organic growth, further margin increase, and high single-digit growth in diluted adjusted EPS at constant currencies.

Speaker #1: As mentioned in today's release, product development spending is expected to be second-half weighted, and we're happy to reiterate our margin guidance of approximately 28%.

Kevin Entricken: As mentioned in today's release, product development spending is expected to be H2 weighted. We are happy to reiterate our margin guidance for approximately 28%. In summary, we are pleased with the good H1 results. Organic growth was 5%, or 6% if you exclude print. We delivered strong improvements in margin, diluted adjusted EPS, and free cash flow. We remain in a solid financial position with net debt to EBITDA ratio of 2 times. These strong results have allowed us to reiterate our full year guidance for the group with confidence. We are excited about the opportunities ahead of us, and we look forward to executing on our priorities. With that, Stacey and I are now happy to take your questions.

Speaker #1: In summary, we're pleased with the good first half results. Organic growth was 5%. We're at 6% if you exclude print. We delivered strong improvements in margin, diluted adjusted EPS, and free cash flow.

Speaker #1: We remain in a solid financial position, with a net debt to EBITDA ratio of 2 times. These strong results have allowed us to reiterate our full-year guidance for the group with confidence.

Kevin Entricken: These strong results have allowed us to reiterate our full year guidance for the group with confidence. We are excited about the opportunities ahead of us, and we look forward to executing on our priorities. With that, Stacey and I are now happy to take your questions.

Speaker #1: We are excited about the opportunity ahead of us, and we look forward to executing on our priorities. With that, Stacey and I are now happy to take your questions.

Speaker #2: Thank you. As a reminder, if you would like to ask a question on today’s call, please press star 1-1 on your telephone keypad.

Operator: Thank you. As a reminder, if you would like to ask a question on today's call, please press star one and one on your telephone keypad. To withdraw your question, please press star one and one again. Please stand by while I retrieve the first caller's details. Your first question today is from the line of Ciaran Donnelly from Citi. Please go ahead.

Speaker #2: To withdraw your question, please press star 1 and then 1 again. Please stand by while I retrieve the first caller's details. Your first question today is from the line of Kieran Donnelly from Citi.

Speaker #2: Please go ahead.

Speaker #3: Yeah, thanks, Ameline. Three questions from myself. Firstly, just on the FY26 margin guide—it implies quite a step up in cost in H2. So, could you just help us understand where specifically the incremental product development spend will be focused?

Ciaran Donnelly: Thanks, Emmeline. Three questions from myself. Firstly, on the FY2026 margin guide. It implies quite a step-up in cost in H2. Could you help us understand where specifically the incremental product development spend will be focused? Separately, could you comment on whether any of the increased cost in H2 is reflective of AI cost inflation more generally? Secondly, again, on margin 2026, there is quite a lot of moving parts. In terms of the guide, again, could you help us understand within that the net effect of operating leverage and the reinvestment rate? Is that reflective of how we should think 2027 is going to play out? I think consensus has broadly 30 basis points of margin improvement in 2027. Finally, on Clinical Solutions, implied slowdown in Q2, given the H1 results.

Ciarán Donnelly: Thanks, Emmeline. Three questions from myself. Firstly, on the FY2026 margin guide. It implies quite a step-up in cost in H2. Could you help us understand where specifically the incremental product development spend will be focused? Separately, could you comment on whether any of the increased cost in H2 is reflective of AI cost inflation more generally? Secondly, again, on margin 2026, there is quite a lot of moving parts.

Speaker #3: And then just separately, could you comment on whether any of the increased cost in H2 is reflective of AI cost inflation more generally? Secondly, again, just on margin—2026 has quite a lot of moving parts.

Speaker #3: Just in terms of the guide, again, could you help us understand within that the net effect of operating leverage and the reinvestment rate? And is that reflective of how we should think 2027 is going to play out, I think, in terms of how it's broadly 30 basis points of margin improvement in '27?

Ciarán Donnelly: In terms of the guide, again, could you help us understand within that the net effect of operating leverage and the reinvestment rate? Is that reflective of how we should think 2027 is going to play out? I think consensus has broadly 30 basis points of margin improvement in 2027.

Speaker #3: And then just finally, on Clinical Solutions, there's an implied slowdown in Q2 given the H1 results. I know these quarterly growth rates can sometimes be a function of small changes in absolute numbers and the rounding of the growth rates to one significant figure.

Ciarán Donnelly: Finally, on Clinical Solutions, implied slowdown in Q2, given the H1 results. I know these quarterly growth rates, they can sometimes be a function of small changes in absolute numbers and the rounding of the growth rates to 1 significant figure. Can you provide a bit more color on the Q2 performance and if it was materially different from Q1? Thanks.

Ciaran Donnelly: I know these quarterly growth rates, they can sometimes be a function of small changes in absolute numbers and the rounding of the growth rates to 1 significant figure. Can you provide a bit more color on the Q2 performance and if it was materially different from Q1? Thanks.

Speaker #3: So, can you just provide a bit more color on the Q2 performance, and if it was materially different from Q1? Thanks.

Speaker #4: Yeah, no, thanks very much, Kieran. So, I'll start with the product development and the investments that we'll be making in the second half.

Stacey Caywood: Thanks very much, Ciaran. I will start with the product development and the investments that we will be making in H2. Also the CS question, Kevin, maybe you can give a little bit more detail on the margin expectations. To sort of set the stage on what we are doing with regard to product investments. As I shared earlier and you saw in the roadmaps, we have significant investments in the CCH tax, in our legal and regulatory business, and in health. Those will continue to drive the roadmap. Very importantly, as we are working with customers and getting their input on which of our AI capabilities are going to drive the most impact for them, we are bringing those forward into the roadmap in H2. We are excited to be able to further those investments.

Speaker #4: And also the CS question Kevin, maybe you can give a little bit of more detail on the margin expectations. But just to sort of set the stage on what we're doing with regard to product investments, as I shared earlier, and you saw in the roadmaps, we have significant investments in the CCH tax, in our legal and regulatory business, and in health.

Speaker #4: Those will continue to drive the roadmap. And, very importantly, as we're working with customers and getting their input on which of our AI capabilities are going to drive the most impact for them, we're bringing those forward into the roadmap in the second half of the year.

Stacey Caywood: Very importantly, as we are working with customers and getting their input on which of our AI capabilities are going to drive the most impact for them, we are bringing those forward into the roadmap in H2. We are excited to be able to further those investments. We are also, as I mentioned briefly, we have AI opportunities across the portfolio, and we are going to be increasing investment in particular use cases within each of those divisions. That will start rolling in H2.

Speaker #4: So, we're excited to be able to further those investments. And then we're also, as I mentioned briefly, we have AI opportunities across the portfolio.

Stacey Caywood: We are also, as I mentioned briefly, we have AI opportunities across the portfolio, and we are going to be increasing investment in particular use cases within each of those divisions. That will start rolling in H2. With regard to CS, we had a good H1 in health overall, strong renewals. You mentioned some of the nuances and slight changes compared to H1 last year. This year, for us, that was in the Medi-Span Drug Solution business that is within the Clinical Solutions portfolio, where in Q1 2025 we had a slight pickup of non-recurring revenue, which did cause a small grow over this year in the CS portfolio. Kevin, do you want to give a bit more insight into the margin this year?

Speaker #4: And we are going to be increasing investment into particular use cases within each of those divisions. So that will start rolling in in the second half of the year.

Speaker #4: With regard to CS, we had a good first half in Health overall, with strong renewals. You mentioned some of the nuances and slight changes compared to the first half last year and this year.

Stacey Caywood: With regard to CS, we had a good H1 in health overall, strong renewals. You mentioned some of the nuances and slight changes compared to H1 last year. This year, for us, that was in the Medi-Span Drug Solution business that is within the Clinical Solutions portfolio, where in Q1 2025 we had a slight pickup of non-recurring revenue, which did cause a small grow over this year in the CS portfolio. Kevin, do you want to give a bit more insight into the margin this year?

Speaker #4: For us, that was in the MetaSpan drug solution business, which is within the Clinical Solutions portfolio. In the first quarter of ’25, we had a slight pickup of non-recurring revenue, which did cause a small growth over this year in the CS portfolio.

Speaker #4: And then, Kevin, do you want to give a bit more insight into the margin this year?

Speaker #3: Yeah, absolutely. Kieran, I want to make sure I got your question. The margin performance in the second half will definitely be impacted by the product development, the innovation spend, which we do expect to ramp up, as Stacey said.

Kevin Entricken: Yeah, absolutely. Ciaran, I want to make sure I got your question. The margin of performance in H2 will definitely be impacted by the product development, the innovation spend, which we do expect to ramp up, as Stacey said. In H1, it was about 11% of revenues. By the full year, I expect it to get to 12% to 13%. So a lot of the margin progression in H2 has to do with that. With regard to AI costs, token costs in particular, we do see that as part of our cost base, and we do see that increasing. However, it is a very small part of our cost base, and it is something that we are managing very carefully.

Speaker #3: In the first half, it was about 11% of revenues. By the full year, I expect it to get to 12% to 13%. So, a lot of the margin progression in the second half has to do with that.

Speaker #3: With regard to AI costs—token costs in particular—we do see that as part of our cost base, and we do see that increasing.

Speaker #3: However, it's a very small part of our cost base, and it's something that we are managing very carefully. As you probably know, we use a variety of different AI models.

Kevin Entricken: However, it is a very small part of our cost base, and it is something that we are managing very carefully. As you probably know, we use a variety of different AI models, and particularly for development, we can apply the most economic model to the particular use case. I hope that gives you an insight into what we are expecting.

Kevin Entricken: As you probably know, we use a variety of different AI models, and particularly for development, we can apply the most economic model to the particular use case. I hope that gives you an insight into what we are expecting.

Speaker #3: And particularly for development, we can apply the most economical model to the particular use case. So I hope that gives you an insight into what we're expecting.

Speaker #5: And then, just on the net effect of operating leverage and reinvestment rate in '26, and how we should think about that for '27?

Ciaran Donnelly: Just on the net effect of operating leverage and reinvestment rate in 2026, and how we should think about that for 2027.

Ciarán Donnelly: Just on the net effect of operating leverage and reinvestment rate in 2026, and how we should think about that for 2027.

Speaker #3: Well, we're not giving guidance today for 2027. But, as you know, our history over the last several years is to continue to deliver good organic growth and to continue to deliver some margin improvement.

Kevin Entricken: Well, we are not giving guidance today for 2027, but as you know, our history over the last several years is to continue to deliver good organic growth and to continue to deliver some margin improvement. We will have more to say about that in February when we give you 2027 guidance.

Speaker #3: We'll have more to say about that in February, when we give you 2027 guidance.

Speaker #5: All right. Thanks, Ameline.

Ciaran Donnelly: All right. Thanks a lot, guys.

Ciarán Donnelly: All right. Thanks a lot, guys.

Speaker #2: Thank you. We will now take our next question. This is from the line of Nick Dempsey from Barclays. Please go ahead.

Operator: Thank you. We will now take our next question. This is from the line of Nick Dempsey from Barclays. Please go ahead.

Speaker #5: Yeah. Good afternoon, guys. So, first question—I’ve got three. First question, you’ve flagged that over 90% of enterprise customers have signed up for Expert AI.

Nick Dempsey: Good afternoon, guys. First question, I've got three. First question, you've flagged that over 90% of enterprise customers have signed up for Expert AI. Can you first of all, give us a sense of what the take-up is among users inside those hospitals, rather than just who's signed up overall? Am I right in thinking that you're mostly not charging anything extra for UpToDate Expert AI, and therefore, when might you start to see some benefit from the value you're creating there? Second question, can you talk about the visibility that you have in the H2 in tax and legal at this point, given that your guidance calls for an acceleration in both of those? Given the weighting subscriptions, can we think that that's mostly kind of signed and sealed by now?

Speaker #5: Can you, first of all, give us a sense of what the take-up is among users inside those hospitals, rather than just who's signed up overall?

Speaker #5: And then, am I right in thinking that you're mostly not charging anything extra for up-to-date expert AI? And therefore, when might you start to see some benefit from the value you're creating there?

Speaker #5: Second question, can you talk about the visibility that you have in the second half in Tax and Legal at this point, given that your guidance calls for an acceleration in both of those?

Nick Dempsey: Second question, can you talk about the visibility that you have in the H2 in tax and legal at this point, given that your guidance calls for an acceleration in both of those? Given the weighting subscriptions, can we think that that's mostly kind of signed and sealed by now? Third question, just on the buyback, you mentioned at the full-year results that your book equity was one factor in your decision on the scale of this year's buyback.

Speaker #5: Given the waiting subscriptions, can we think that that's mostly kind of signed and sealed by now? And then, third question, just on the buyback. You mentioned at the full year results that your book equity was one factor in your decision on the scale of this year's buyback.

Nick Dempsey: Third question, just on the buyback, you mentioned at the full-year results that your book equity was one factor in your decision on the scale of this year's buyback. Looks like that equity level has ticked up a bit in the H1 stage. Does that give you a bit more freedom when you're thinking about next year's buyback?

Speaker #5: Looks like that equity level has ticked up a bit at the first-half stage. Does that give you a bit more freedom when you're thinking about next year's buyback?

Nick Dempsey: Looks like that equity level has ticked up a bit in the H1 stage. Does that give you a bit more freedom when you're thinking about next year's buyback?

Speaker #4: Okay, thanks, Nick. So in Health, and particularly with our Enterprise Edition customers, we're very pleased with the adoption of our expert AI solution, as I mentioned earlier. What we've done is that expert AI has been rolled out as a part of our Enterprise Edition subscriptions.

Stacey Caywood: Okay. Thanks, Nick. In health, and particularly with our enterprise edition customers, we're very pleased with the adoption of our Expert AI solution, as I mentioned earlier. What we've done is that Expert AI has been rolled out as a part of our enterprise edition subscriptions. Monetization is effectively through supporting renewals and price increases. As you also noticed on our rollout and what we're doing in terms of not just our Expert AI solution, but other solutions that we deliver to our enterprises, fully embedded into their clinician workflows, those are additional capabilities that would be add-ons that deliver value and get priced accordingly upon renewal of our customers. That's how the rollout is expected. As you know, these are subscriptions, that has a gradual impact as customers take in those additional capabilities.

Speaker #4: So, monetization is effectively through supporting renewals and price increases. And then, as you also noticed, on our rollout and what we're doing in terms of not just our expert AI solution but other solutions that we deliver to our enterprises—fully embedded into their clinician workflows—those are additional capabilities that would be add-ons, that deliver value, and get priced accordingly upon renewal of our customers.

Stacey Caywood: As you also noticed on our rollout and what we're doing in terms of not just our Expert AI solution, but other solutions that we deliver to our enterprises, fully embedded into their clinician workflows, those are additional capabilities that would be add-ons that deliver value and get priced accordingly upon renewal of our customers. That's how the rollout is expected. As you know, these are subscriptions, that has a gradual impact as customers take in those additional capabilities.

Speaker #4: So that's how the rollout is expected. As you know, these are subscriptions, so that has a gradual impact as customers take in those additional capabilities.

Speaker #4: Within Tax and Legal, we had good organic growth in the first half, at 6%, so very much in line with the first half last year.

Stacey Caywood: Within Tax and Legal, we had good organic growth in H1 at 6%, very much in line with H1 last year. The Q1, we were impacted by a change in publication dates for US books, that caused a decline in our print book revenue in Q1. This, as you can see in Q2, is lessening as we progress throughout the year. We expect to see sort of catch up by the end of the year. Just in terms of the drivers of growth in Tax, certainly migration of the CCH Axcess cloud platform, the upselling of our more classic modules, and the adoption of our new agentic models certainly that I shared earlier. That is definitely helping us to drive growth and to achieve the full-year guidance for Tax.

Speaker #4: In the first quarter, we were impacted by a change in publication dates for U.S. books, and that caused a decline in our print book revenue in Q1.

Speaker #4: This, as you can see in Q2, is lessening as we progress throughout the year. So, we expect to see a sort of catch-up by the end of the year.

Speaker #4: And then, just in terms of the drivers of growth in Tax, certainly migration to the CCH Axcess cloud platform, the upselling of our more classic modules, and the adoption of our new agentic models, certainly in our areas that I shared earlier.

Stacey Caywood: Just in terms of the drivers of growth in Tax, certainly migration of the CCH Axcess cloud platform, the upselling of our more classic modules, and the adoption of our new agentic models certainly that I shared earlier. That is definitely helping us to drive growth and to achieve the full-year guidance for Tax. In Legal and Regulatory, the major drivers there in terms of what's going to cause the H2 pickup.

Speaker #4: So that is definitely helping us to drive growth and to achieve the full year guidance for tax. In the legal and regulatory, the major drivers there in terms of what's going to cause the second half pickup, the acquisition of bright flag became organic at the end of June.

Stacey Caywood: In Legal and Regulatory, the major drivers there in terms of what's going to cause the H2 pickup. The acquisition of Brightflag became organic at the end of June, that will begin rolling in in the H2, we'll have a slight benefit from Libra, which becomes organic towards the end of the year, November. The other big piece that impacted the H1 of Legal and Regulatory was the effect that Kevin and I mentioned earlier around the German elections that were strong in the H1 of last year but did not repeat this year. Maybe, Kevin, you could talk about the share buyback.

Stacey Caywood: The acquisition of Brightflag became organic at the end of June, that will begin rolling in in the H2, we'll have a slight benefit from Libra, which becomes organic towards the end of the year, November. The other big piece that impacted the H1 of Legal and Regulatory was the effect that Kevin and I mentioned earlier around the German elections that were strong in the H1 of last year but did not repeat this year. Maybe, Kevin, you could talk about the share buyback.

Speaker #4: So that will begin rolling in during the second half. And then we'll have a slight benefit from Libra, which becomes organic towards the end of the year, in November.

Speaker #4: And then the other big piece that impacted the first half of Legal and Regulatory was the effect that Kevin and I mentioned earlier around the German elections, that were strong in the first half of last year, but did not repeat this year.

Speaker #4: And then maybe, Kevin, you could talk about this year's buyback?

Speaker #3: Certainly, Stacey. On the share buyback, indeed, in thinking about the share buyback, and in addition to our cash position and our leverage position, we also do have to be mindful of retained earnings and our distributable reserves in retained earnings.

Kevin Entricken: Certainly, Stacy. On the share buyback, indeed, in thinking about the share buyback, in addition to our cash position and our leverage position, we also do have to be mindful of retained earnings and our distributable reserves in retained earnings. I've actually reached out to a number of experts in this field, we do have to stay within those distributable reserve boundaries. We have taken that and looked at that very seriously. I will say that as profits do improve and as profits do increase, it does indeed expand our distributable reserves, that will give us more opportunity as profits increase. It is worth mentioning, though, this year, we will be returning nearly 100% of our free cash flow and our profit in the form of dividends and share buybacks. We're about halfway through our share buyback program.

Speaker #3: And I've actually reached out to a number of experts in this field, and we do have to stay within those distributed reserve boundaries. So we have taken that and looked at that very seriously.

Speaker #3: I will say that as profits do improve, and as profits do increase, it does indeed expand our distributable reserves. So that will give us more opportunity as profits increase.

Kevin Entricken: I will say that as profits do improve and as profits do increase, it does indeed expand our distributable reserves, that will give us more opportunity as profits increase. It is worth mentioning, though, this year, we will be returning nearly 100% of our free cash flow and our profit in the form of dividends and share buybacks. We're about halfway through our share buyback program. As of today, we have bought back EUR 244 million, and we are on target to complete the EUR 500 million program by the end of this year.

Speaker #3: It is worth mentioning, though, that this year we will be returning nearly 100% of our free cash flow and our profit in the form of dividends and share buybacks.

Speaker #3: So far, we're about halfway through our share buyback program. As of today, we have bought back €244 million, and we are on target to complete the $500 million program by the end of this year.

Kevin Entricken: As of today, we have bought back EUR 244 million, and we are on target to complete the EUR 500 million program by the end of this year.

Speaker #5: Thank you, guys.

Nick Dempsey: Thank you, guys.

Speaker #1: Thank you. We'll now take our next question. This is from Joe Barnett Lamb from UBS. Please go ahead.

Operator: Thank you. We'll now take our next question. This is from Joseph Barnet-Lamb from UBS. Please go ahead.

Operator: Thank you. We'll now take our next question. This is from Joe Barnet-Lamb from UBS. Please go ahead.

Speaker #5: Excellent. Thank you for taking my questions. I have three. The first two build off Nick's. So, Nick's question on the path to expert AI monetization—

Joseph Barnet-Lamb: Excellent. Thank you for taking my questions. Three from me. The first two are both building off Nick's. Nick's question on the path to Expert AI monetization. You spoke about effectively bundling and that supporting renewals, underlying pricing, and the ability to sell add-ons. Should we assume that underlying price rises on a look-forward basis, though, will now be higher as a result of that than previously? Secondly, on the bolt-ons, is that something that comes in FY2027 or it's progressive on a multi-year basis? Secondly, again, building on Nick's, I don't think you answered the proportion of users in those hospitals that are using Expert AI rather than just the number of hospitals. Then finally, within the tweak to CP and ESG guidance, you referenced geopolitics, you referenced macro, and in your divisional write-up, you talk about Enablon.

Joe Barnet-Lamb: Excellent. Thank you for taking my questions. Three from me. The first two are both building off Nick's. Nick's question on the path to Expert AI monetization. You spoke about effectively bundling and that supporting renewals, underlying pricing, and the ability to sell add-ons. Should we assume that underlying price rises on a look-forward basis, though, will now be higher as a result of that than previously? Secondly, on the bolt-ons, is that something that comes in FY2027 or it's progressive on a multi-year basis?

Speaker #5: You spoke about effectively bundling and that supporting renewals, underlying pricing, and the ability to sell add-ons. Should we assume that underlying price rises, on a look-forward basis, will now be higher as a result of that than previously?

Speaker #5: And secondly, on the Wolters, is that something that comes in FY27, or is it progressive on a multi-year basis? Secondly, again, building on Nick's question, I don't think you answered the proportion of users in those hospitals that are using Expert AI, rather than just the number of hospitals.

Joe Barnet-Lamb: Secondly, again, building on Nick's, I don't think you answered the proportion of users in those hospitals that are using Expert AI rather than just the number of hospitals. Then finally, within the tweak to CP and ESG guidance, you referenced geopolitics, you referenced macro, and in your divisional write-up, you talk about Enablon. I think, Stacey, you specifically mentioned that in your spiel as well.

Speaker #5: And then finally, within the tweak to CP and ESG guidance, you referenced geopolitics, you referenced macro, and in your divisional write-up, you talk about Enablon.

Speaker #5: I think, Stacey, you specifically mentioned that in your spiel as well. Can you give more color within CP and ESG, and specifically within ESG and Enablon, what the issue is?

Joseph Barnet-Lamb: I think, Stacey, you specifically mentioned that in your spiel as well. Can you give more color within CP and ESG, and specifically within ESG and Enablon, what the issue is? You mentioned it's Middle East related, but some more color would be great. Thank you.

Joe Barnet-Lamb: Can you give more color within CP and ESG, and specifically within ESG and Enablon, what the issue is? You mentioned it's Middle East related, but some more color would be great. Thank you.

Speaker #5: You mentioned this was Middle East related. If you could provide more color, that would be great. Thank you.

Speaker #4: Sure. Yes, in terms of CES—so, clinical solutions—this is very much a gradual rollout of our additional solutions and our capabilities. And we do expect that to build over time.

Stacey Caywood: Sure. Yes. In terms of the CS, so Clinical Solutions, this is very much a gradual rollout of our additional solutions, our capabilities, and we do expect that to build over time. At this point, again, we'll affirm our 2026 guidance for health. In terms of the users, thanks for reminding me of that. We are very pleased with the activation of users of our expert AI solution within our enterprise customers. We do see a nice growth as we continue to add on additional capabilities. I've mentioned, for example, drug dosing recently added, so we expect the activation to continue to grow. We're also seeing a nice growth where customers have deployed ambient solutions such as Abridge and UpToDate content flowing through the ambient solutions to be able to provide additional insights and actions as a result of being included in clinical notes.

Speaker #4: So at this point, again, we'll affirm our 2026 guidance for Health. In terms of the users—thanks for reminding me of that—we are very pleased with the activation of users of our expert AI solution within our enterprise.

Speaker #4: Customers—we do see nice growth as we continue to add additional capabilities. I've mentioned, for example, drug dosing, which was recently added. So we expect activation to continue to grow.

Stacey Caywood: I've mentioned, for example, drug dosing recently added, so we expect the activation to continue to grow. We're also seeing a nice growth where customers have deployed ambient solutions such as Abridge and UpToDate content flowing through the ambient solutions to be able to provide additional insights and actions as a result of being included in clinical notes. We're seeing good user activation of our AI solutions through the enterprise.

Speaker #4: We're also seeing nice growth where customers have deployed ambient solutions, such as a bridge, and up-to-date content is flowing through the ambient solutions to be able to provide additional insights and actions as a result of being included in clinical notes.

Speaker #4: So we're seeing good user activation of our AI solutions through the enterprise. And then in CP and ESG, our Enablon platform is really focused on safety—on ensuring that our customers' employees remain safe in high-risk industries.

Stacey Caywood: We're seeing good user activation of our AI solutions through the enterprise. In CP and ESG, our Enablon platform is really around safety, around ensuring that our customers' employees remain safe in high-risk industries. One of those is oil and gas. Oil and gas companies, as you might imagine, heavy concentration in the Middle East. We did have some implementations that were paused because of the current situation in that region. That's the major reason why, yeah, we have adjusted slightly the CP and ESG forecast.

Stacey Caywood: In CP and ESG, our Enablon platform is really around safety, around ensuring that our customers' employees remain safe in high-risk industries. One of those is oil and gas. Oil and gas companies, as you might imagine, heavy concentration in the Middle East. We did have some implementations that were paused because of the current situation in that region. That's the major reason why, yeah, we have adjusted slightly the CP and ESG forecast.

Speaker #4: And one of those is oil and gas. So, oil and gas companies, as you might have imagined, have a heavy concentration in the Middle East. We did have some implementations that were paused because of the current situation in that region.

Speaker #4: And so that's the primary reason why we have adjusted the CP and ESG forecasts slightly.

Speaker #5: Very helpful. Thank you, Stacey.

Joseph Barnet-Lamb: Very helpful.

Joe Barnet-Lamb: Very helpful.

Joseph Barnet-Lamb: Okay.

Stacey Caywood: Okay.

Joseph Barnet-Lamb: Thank you, Stacey.

Joe Barnet-Lamb: Thank you, Stacey.

Speaker #1: Thank you. We will now take the next question. This is from George Webb at Morgan Stanley. Please go ahead.

Operator: Thank you. We will now take the next question. This is from George Webb of Morgan Stanley. Please go ahead.

Speaker #5: Yeah, hi, Stacey and Kevin. Hope you're having a good summer so far. A couple of questions that come back on a couple of the pieces we've talked about already.

George Webb: Yeah. Hi, Stacey and Kevin. Hope you're having a good summer so far. A couple of questions that come back on a couple of the pieces we've talked about already. Maybe just starting with Enablon. If I look in the mix of the Enablon performance, and looking particularly at the cloud software piece, which I imagine should be pretty recurring, that also decelerated quite sharply in the H1. I appreciate you called out those factors on implementations, but I guess the recurring piece, I feel, should move less sharply. Is there anything you're seeing there on the competitive environment aside from the factors you've seen, or does that all feel quite stable to you?

Speaker #5: Maybe just starting with Enablon. If I look at the mix of the Enablon performance, and looking particularly at the cloud software piece, which I imagine should be pretty recurring, that also decelerated quite sharply in the half.

Speaker #5: And I appreciate you called out those factors on implementations. But I guess the recurring piece, I feel, should move less sharply. Is there anything you're seeing there on the comparative environment aside from the factors you've seen, or does that all feel quite stable to you?

George Webb: Is there anything you're seeing there on the competitive environment aside from the factors you've seen, or does that all feel quite stable to you?

Speaker #5: And especially just on Clinical, yeah.

Stacey Caywood: Yeah.

George Webb: Especially just on Clinical Solutions.

Stacey Caywood: Yeah. Go ahead.

Speaker #4: Yeah. Go ahead.

George Webb: Yeah, sorry, just secondly, on Clinical Solutions, good renewal rates, high uptake of Expert AI on the enterprise customer base. On that smaller non-enterprise customer base, I guess, what have you been seeing there with regards to retention and then upsell to the paid offering? Thank you.

Speaker #5: Yeah, sorry. Just secondly, on Clinical Solutions—good renewal rates, high uptake of Expert AI on the enterprise customer base. On that smaller, non-enterprise customer base, what have you been seeing there with regards to retention, and then upsell to the paid offering?

Speaker #5: Thank you.

Speaker #4: Yeah, so with CP and ESG, yes, as we noted in our first-quarter press release, the sales cycles are also slower in the Middle East.

Stacey Caywood: Yeah. With CP and ESG, yes, as we noted in our Q1 press release, the sales cycles are also slower in the Middle East. The impact we've had in the H1 has been more on those services or implementation, but we are seeing slightly slower sales cycles in that region. Kevin, I don't know if you want to add anything more to that.

Speaker #4: The impact we've had in the first half has been more on those services or implementation, but we are seeing slightly slower sales cycles in that region.

Speaker #4: And then, Kevin, I don't know if you want to add anything more to that.

Speaker #3: No, I definitely think it is a bit of a slowdown in just all activity, particularly in oil and gas, as Stacey mentioned, and that is a big part of our customer base there.

Kevin Entricken: No, I definitely think, it is a bit of a slowdown in just all activity, particularly in oil and gas, as Stacey mentioned, and that is a big part of our customer base there. We do expect that as we get through and navigate through this, we will see those not only software sales, but service contracts pick up.

Speaker #3: But we do expect that, as we get through and navigate this, we will see not only software sales but also service contracts pick up.

Speaker #4: Yeah. And then George, on UpToDate Pro, which is what we call our individual segment, just to put things into context: Pro does represent less than 20% of the core UpToDate solutions, so less than 2% for Wolters Kluwer.

Stacey Caywood: Yeah. George, on UpToDate Pro, which is what we call our individual segment, just to put things into context, Pro does represent less than 20% of the core UpToDate solution, so less than 2% of Wolters Kluwer. The individual segment of the market has always been more competitive, and that does remain the case, as we now have many general LLMs offering free medical chat box. Even in this segment, we remain differentiated because of our proprietary content, the overall trust in the solution, and the way that we deliver the solution. We do continue to enhance UpToDate Pro. Expert AI has now been made part of the basic package. We've revamped the mobile app, and expert dosing, AI dosing is also now available as of the last month or so. Good progress in rolling out the expert AI solution.

Speaker #4: The individual segment of the market has always been more competitive, and that does remain the case. As we now have many general LLMs offering free medical chatbots, but even in this segment, we remain differentiated because of our proprietary content, the overall trust in the solution, and the way that we deliver the solution.

Speaker #4: We do continue to enhance UpToDate Pro. Expert AI has now been made part of the basic package. We've revamped the mobile app, and expert dosing AI is also now available as of the last month or so.

Stacey Caywood: We do continue to enhance UpToDate Pro. Expert AI has now been made part of the basic package. We've revamped the mobile app, and expert dosing, AI dosing is also now available as of the last month or so. Good progress in rolling out the expert AI solution.

Speaker #4: So, good progress in rolling out the expert AI solution.

Speaker #5: That's great. Thank you.

George Webb: That's great. Thank you.

Speaker #1: Thank you. We will now take the next question. This is from Adam Berlin from Goldman Sachs. Please go ahead.

Operator: Thank you. We'll now take the next question. This is from Adam Berlin from Goldman Sachs. Please go ahead.

Speaker #5: Yeah, hi, good afternoon. I have three questions as well, please. The first one is: Can you give us an update on where you are in the migration from the Pro system to Access in the U.S. tax business?

Adam Berlin: Yeah. Hi, good afternoon. Three questions from me as well, please. First one is, can you give us an update on where you are in the migration from ProSystem to CCH Axcess in the US tax business? I think last you told us you were just over halfway. Where do you think you are now? Second question is, can you give us any color on FRR transaction trends as we are going through Q3? Third, I'm going to have another go at the 2027 margin question. I'm just trying to work out, if we're going from 11% R&D to 12% to 13% by the end of the year, then in H1 next year, we're not going to have the benefit of the disposal of FRR.

Speaker #5: I think last you told us you were just over halfway. Where do you think you are now? Second question is, can you give us any color on FNCC transaction trends as we are going through Q3?

Speaker #5: And third, I'm going to have another go at the 2027 margin question, just I'm just trying to work out if we're going from 11% R&D to 12 to 13 by the end of the year, and then in H1 next year, we're not going to have the benefit of the disposal of FRR, should we be more I know you're not going to give guidance, but should we be more dealing some kind of big step down in margins in H1 27 as those extra costs are carried forward into next year?

Adam Berlin: I'm just trying to work out, if we're going from 11% R&D to 12% to 13% by the end of the year, then in H1 next year, we're not going to have the benefit of the disposal of FRR. Should we be modeling some kind of big step down in margins in H1 2027 as those extra costs are carried forward into next year?

Adam Berlin: Should we be modeling some kind of big step down in margins in H1 2027 as those extra costs are carried forward into next year?

Speaker #4: Okay, I will take the first one. So, in Pro System FX, as you noted, we have made it to the halfway mark in terms of migrating from Pro System—and that continues to be a big focus for us, migrating.

Stacey Caywood: Okay. I will take the first one. In CCH ProSystem fx, as you noted, we have made it to the halfway mark in terms of migrating from CCH ProSystem fx to our cloud solution. That continues to be a big focus for us. Migrating it is a gradual process. What we're seeing is that with all the AI solutions embedded in the CCH Axcess platform, there is a pickup in interest and demand to move to our cloud solution. We continue to push that hard, and are now over the 50% mark. I will just do a quick confirmation of what Kevin mentioned earlier in terms of directionally, on the margin, we certainly are not ready to share guidance for next year.

Speaker #4: It is a gradual process. What we're seeing is that, with all the AI solutions embedded in the CCH Access platform, there is a pickup in interest and demand to move to our cloud solution.

Speaker #4: So we continue to push that hard and are now over the 50% mark. I'll just do a quick confirmation of what Kevin mentioned earlier in terms of, sort of directionally, we certainly—on the margin, we certainly are not ready to share guidance for next year. But what I will say is that Kevin and I are very committed to continuing to deliver strong margins and, in line with our past, continue to do slight increases on a regular annual basis.

Stacey Caywood: I will just do a quick confirmation of what Kevin mentioned earlier in terms of directionally, on the margin, we certainly are not ready to share guidance for next year. What I will say is that Kevin and I are very committed to continuing to deliver strong margins and, in line with our past, continue to do slight increases on a regular annual basis. That's still the intent. With that, Kevin, maybe you could give a little bit more context for the margin question, and then also on the F&CC transactions.

Stacey Caywood: What I will say is that Kevin and I are very committed to continuing to deliver strong margins and, in line with our past, continue to do slight increases on a regular annual basis. That's still the intent. With that, Kevin, maybe you could give a little bit more context for the margin question, and then also on the F&CC transactions.

Speaker #4: So that's still the intent. But with that, Kevin, maybe you could give a little bit more context for the margin question, and then also on the FCC transactions.

Speaker #3: Sure. I think on the margin question, obviously we have greenlighted a number of investment programs. Some of these programs will go on beyond 2026 and into the future.

Kevin Entricken: Sure. I think on the margin question, obviously we have green-lighted a number of investment programs. Some of these programs will go on beyond 2026 and into the future. Again, it's a little bit early for us to be talking about guidance for 2027. We will have more to say on that when we get together with you again in February. With regard to F&CC transactions, as you probably know, we've got good insight into a lot of things in our portfolio, but this is the hardest one, the transaction revenue. We did not see an interest rate cut that we expected at the beginning of the year. Because of that, you do see more subdued transactional revenue, particularly in the financial service side of that business.

Speaker #3: But again, it's a little bit early for us to be talking about guidance for 2027, but we will have more to say on that when we get together with you again in February.

Speaker #3: With regard to FCC transactions, as you probably know, we've got good insight into a lot of things in our portfolio, but this is the hardest one—the transaction revenue.

Speaker #3: We did not see an interest rate cut that we expected at the beginning of the year. So, because of that, you do see more subdued transactional revenue, particularly in the financial services side of that business.

Kevin Entricken: We did not see an interest rate cut that we expected at the beginning of the year. Because of that, you do see more subdued transactional revenue, particularly in the financial service side of that business. It's difficult to predict, but if you take a look at what some projections are for the mortgage market in H2, we do still expect that the mortgage market, mortgage origination, and refinances will still be under some pressure. That is baked into our thinking and baked into our guidance.

Speaker #3: So it's difficult to predict, but if you take a look at what some projections are for the mortgage market in the second half of the year, we do still expect that the mortgage market—mortgage originations and refinances—will still be under some pressure.

Kevin Entricken: It's difficult to predict, but if you take a look at what some projections are for the mortgage market in H2, we do still expect that the mortgage market, mortgage origination, and refinances will still be under some pressure. That is baked into our thinking and baked into our guidance. If I could mention a positive on transactions. BOI revenue, business ownership, the Corporate Transparency Act, as you know, that's not being enforced anymore, we do have a grow over in that from last year. That becomes less and less of a drag as we move forward. This is one area where we are laser-focused, but our guidance does incorporate this caution.

Speaker #3: So that is baked into our thinking and baked into our guidance. If I could mention a positive on transactions, BOI revenue, business ownership, the Corporate Transparency Act, as you know, that's not being enforced anymore, so we do have a grow over.

Kevin Entricken: If I could mention a positive on transactions. BOI revenue, business ownership, the Corporate Transparency Act, as you know, that's not being enforced anymore, we do have a grow over in that from last year. That becomes less and less of a drag as we move forward. This is one area where we are laser-focused, but our guidance does incorporate this caution.

Speaker #3: In that, from last year, that becomes less and less of a drag as we move forward. But this is one area where we are laser-focused, but our guidance does incorporate this caution.

Speaker #5: Okay. Thank you.

Stacey Caywood: Okay. Thank you.

Adam Berlin: Okay. Thank you.

Speaker #1: Thank you. We will now take our next question. This is from Steve Lichty from Deutsche Bank. Please go ahead.

Operator: Thank you. We will now take our next question. This is from Steve Lichty from Deutsche Bank. Please go ahead.

Speaker #2: Yeah, hi. Thanks for taking the question. I've got two left. Just going back to Health and Clinical Solutions, and kind of embedding expert AI, can you give me some help here in terms of—if I was a subscriber maybe in the last few years—what your average increase in, I guess, price or yield would be per subscriber?

Steve Lichty: Yeah. Hi. Thanks for taking the questions. I've got two left. Just going back to health and clinical solutions and kind of embedding expert AI, can you give me some help here in terms of if I was a subscriber maybe in the last few years, what your average increase of, I guess, price or yield would be per subscriber? And then really try and link that to putting in expert AI, would there be an acceleration in that? I know some of your peers have given examples of double-digit increases when they put in an AI layer, so anything that you can give us there would be useful. And then secondly, on Legal specifically, if you included Libra and Brightflag on a kind of pro forma basis, what would the like-for-like revenue be if we did the H1 was 5%?

Steve Liechti: Yeah. Hi. Thanks for taking the questions. I've got two left. Just going back to health and clinical solutions and kind of embedding expert AI, can you give me some help here in terms of if I was a subscriber maybe in the last few years, what your average increase of, I guess, price or yield would be per subscriber? And then really try and link that to putting in expert AI, would there be an acceleration in that?

Speaker #2: And then really try and link that to putting in expert AI—would there be an acceleration in that? I know some of your peers have given examples of double-digit increases when they put in an AI layer.

Steve Liechti: I know some of your peers have given examples of double-digit increases when they put in an AI layer, so anything that you can give us there would be useful. And then secondly, on Legal specifically, if you included Libra and Brightflag on a kind of pro forma basis, what would the like-for-like revenue be if we did the H1 was 5%? What would that be if we included on a pro forma basis those acquisitions? Thanks.

Speaker #2: So anything you can give us there would be useful. And then secondly, on legal specifically, if you included Libra and Bright Flag on a kind of pro forma basis, what should the what would the like for like revenue be if we did the first half was 5%?

Speaker #2: What would that be if we included, on a pro forma basis, those acquisitions? Thanks.

Steve Lichty: What would that be if we included on a pro forma basis those acquisitions? Thanks.

Speaker #4: Yeah, so I'll take the first one on the clinical solutions and our enterprise edition and the rollout of our AI solutions. Again, we're very pleased with the rollout.

Stacey Caywood: Yeah. I'll take the first one on the clinical solutions and our enterprise edition and the rollout of our AI solutions. Again, we're very pleased with the rollout. We are including the Expert AI solution as part of our enterprise subscription. Over time, as we see that value reflected with our customers and, very importantly, with other components of our enterprise platform, including the add-on modules that we have with our patient engagement data, local guidelines, our APIs, and so on, those will be reflected in our renewals, and that happens gradually. No more details at this point in terms of how that flows into the actual prices. With Legal and the addition and the inclusion of Brightflag into organic growth and Libra, Kevin, why don't you take that one?

Speaker #4: We are including the expert AI solution as part of our enterprise subscription, and over time, as we see that value reflected with our customers, and very importantly, with other components of our enterprise platform, including the add-on modules that we have with our patient engagement data, local guidelines, our APIs, and so on.

Stacey Caywood: Over time, as we see that value reflected with our customers and, very importantly, with other components of our enterprise platform, including the add-on modules that we have with our patient engagement data, local guidelines, our APIs, and so on, those will be reflected in our renewals, and that happens gradually. No more details at this point in terms of how that flows into the actual prices. With Legal and the addition and the inclusion of Brightflag into organic growth and Libra, Kevin, why don't you take that one?

Speaker #4: Those will be reflected in our renewals, and that happens gradually. So, no more details at this point in terms of how that flows into the actual prices.

Speaker #4: And then, with Legal and the addition and inclusion of Brightflag into organic growth and Libra, Kevin, why don't you take that one?

Speaker #3: Sure. I would say I don't have pro forma numbers off the top of my head, but I can tell you that Brightflag, in particular, is growing quite well.

Kevin Entricken: Sure. I would say I don't have pro forma numbers off the top of my head. I can tell you that Brightflag in particular is growing quite well. In fact, slightly ahead of our expectations, we're very pleased to see that. Libra as well, I think is certainly meeting, if not exceeding our expectations. We have taken that business and rolled it out to 10 different geographies since acquisition, in the last six, seven months or so. Again, very happy with the way that is performing. I will tell you that Brightflag in particular is going to be included in organic growth for the full H2 of the year. Libra, probably not, maybe December, but the effect of Libra will be much less.

Speaker #3: In fact, slightly ahead of our expectations, so we're very pleased to see that. Libra as well, I think, is certainly meeting, if not exceeding, our expectations.

Speaker #3: We have taken that business and rolled it out to 10 different geographies since acquisition—so in the last six or seven months or so. Again, we're very happy with the way that is performing.

Kevin Entricken: Again, very happy with the way that is performing. I will tell you that Brightflag in particular is going to be included in organic growth for the full H2 of the year. Libra, probably not, maybe December, but the effect of Libra will be much less. Brightflag will certainly contribute, that does in fact inform us with our guidance that we're giving you, that we expect improved organic growth for the full year.

Speaker #3: I will tell you that Bright Flag, in particular, is going to be included in organic growth for the full second half of the year.

Speaker #3: And Libra, probably not—maybe December—but the effect of Libra will be much less. Bright Flag will certainly contribute. And that does, in fact, inform us, with our guidance that we're giving you, that we expect improved organic growth for the full year.

Kevin Entricken: Brightflag will certainly contribute, that does in fact inform us with our guidance that we're giving you, that we expect improved organic growth for the full year.

Speaker #2: Great. Thank you.

Steve Lichty: Great. Thank you.

Steve Liechti: Great. Thank you.

Speaker #1: Thank you. We will now take the next question. This is from Timon Runberg from ING. Please go ahead.

Operator: Thank you. We will now take the next question. This is from Thymen Rundberg from ING. Please go ahead.

Speaker #5: Yes, thanks for taking some of my questions. First one, on AI: adoption metrics are clearly improving. What I'm trying to understand is the depth of engagement behind that adoption.

Thymen Rundberg: Yes. Thanks for taking some of my questions. First one on AI. Adoption metrics are clearly improving. What I'm trying to understand is the depth of engagement behind that adoption. Are you seeing usage intensity per new customer or user build faster than the adoption base itself? For example, in terms of frequency of use, number of workflows that are touched or modules used, and then what gives you the confidence that this is moving from initial adoption to becoming really embedded in the day-to-day workflow usage? On the capital allocation, you're clearly using all three routes, organic investments, partnerships, M&A. We've seen these deals like StandardFusion and now also Mirosa. I just wanted to ask if you can discuss how do you decide whether an opportunity is best addressed through either build, buy or partner?

Speaker #5: And so, are you seeing usage intensity per new customer or user build faster than the adoption base itself? So, for example, in terms of frequency of use, number of workflows that are touched, or modules used. And then, what gives you the confidence that this is moving from initial adoption to becoming really embedded in the day-to-day workflow usage?

Speaker #5: And then on the capital allocation, so you're clearly using all three routes, and we're getting organic investments, partnerships, M&A. So we've seen these deals like Stern Fusion and now also Marosa.

Thymen Rundberg: On the capital allocation, you're clearly using all three routes, organic investments, partnerships, M&A. We've seen these deals like StandardFusion and now also Mirosa. I just wanted to ask if you can discuss how do you decide whether an opportunity is best addressed through either build, buy or partner? For example, Mirosa, that you just announced as well, what gives you confidence that they can become a strong platform extension? Thanks.

Speaker #5: I just wanted to ask if you can discuss how you decide whether an opportunity is best addressed through either build, buy, or partner?

Speaker #5: And for example, Marosa, that you just announced as well—what gives you the confidence that they can become a strong platform extension? Thanks.

Thymen Rundberg: For example, Mirosa, that you just announced as well, what gives you confidence that they can become a strong platform extension? Thanks.

Speaker #4: Yeah. So certainly, in terms of the AI usage, yes, we are seeing nice adoption. So for example, in our the intelligence layer within our CCH access platform, if you recall the rollout slide that I shared with you earlier, we are seeing nice adoption and increase in usage as those customers were rolling out those solutions to those customers.

Stacey Caywood: Certainly, in terms of the AI usage, yes, we are seeing a nice adoption. For example, in the intelligence layer within our CCH Axcess platform, if you recall the rollout slide that I shared with you earlier, we are seeing nice adoption and increase in usage, as we are rolling out those solutions to those customers. Still very early days, but we are very encouraged by the adoption. The feedback we are getting, we are seeing very nice improvements in efficiency when customers are using our solutions. For example, in Scan, one of the solutions that we have launched, there is a pretty significant increase in efficiency for our customers in automating processes that they had to do in the past manually. We are seeing good adoption there.

Speaker #4: It's still very early days, but we're very encouraged by the adoption and the feedback we're getting. We are seeing very nice improvements in efficiency. When customers are using our solutions—for example, in Scan, one of the solutions that we've launched—there is a pretty significant increase in efficiency for our customers in automating processes that they had to do manually in the past.

Stacey Caywood: For example, in Scan, one of the solutions that we have launched, there is a pretty significant increase in efficiency for our customers in automating processes that they had to do in the past manually. We are seeing good adoption there. Also, as I mentioned in the Libra rollout, we are seeing very good adoption, usage, engagement, which is fueling the continued rollout of that solution. We are very encouraged by what we are seeing so far in our AI rollouts and launches.

Speaker #4: So we're seeing good adoption there. Also, as I mentioned, in the Libra rollout, we are seeing very good adoption, usage, and engagement, which is fueling the continued rollout.

Stacey Caywood: Also, as I mentioned in the Libra rollout, we are seeing very good adoption, usage, engagement, which is fueling the continued rollout of that solution. We are very encouraged by what we are seeing so far in our AI rollouts and launches. In terms of how we think about our M&A activities, we have really been very successful in two areas where we, for example, are deeply embedded in one part of a workflow and extend to another. This has been the case with our FINCA Isabelle Group product acquisition several years ago. Certainly, the case with Libra, where it is a natural extension of our content integrated into the AI workspace that is, as I mentioned, very successful for us. This latest acquisition that we announced this morning, which is Morosa, is a very good example of that.

Speaker #4: Of that solution. So, very encouraged by what we're seeing so far in our AI rollouts and launches. In terms of how we think about our M&A activities, we have really been very successful in two areas, where we, for example, are deeply embedded in one part of a workflow or another.

Stacey Caywood: In terms of how we think about our M&A activities, we have really been very successful in two areas where we, for example, are deeply embedded in one part of a workflow and extend to another. This has been the case with our FINCA Isabelle Group product acquisition several years ago. Certainly, the case with Libra, where it is a natural extension of our content integrated into the AI workspace that is, as I mentioned, very successful for us. This latest acquisition that we announced this morning, which is Morosa, is a very good example of that.

Speaker #4: This has been the case with our Finca Isabel group product acquisition several years ago, and certainly, this extends to the case with Libra, where it's a natural extension of our content integrated into the AI workspace. That's, as I mentioned, very successful for us.

Speaker #4: This latest acquisition that we announced this morning, which is Marosa, is a very good example of that. So, what Marosa does is that it's a VAT compliance real-time reporting and invoicing solution that complements our existing U.S. corporate tax business to accelerate the development of a broader global indirect tax platform.

Stacey Caywood: What Morosa does is that it is a VAT compliance real-time reporting and e-invoicing solution that complements our existing US corporate tax business to accelerate the development of a broader global indirect tax platform. We are able to offer our multinational and global customers that have used our US corporate tax solution to extend their, and be able to fulfill their need to have a more broad platform, including the real-time reporting, VAT compliance, and e-invoicing. Very natural extension and serves our current customers well, and that brings in a customer base that is very blue-chip companies, 30% headquartered in the US, that need the combined solution. Another very good example of how we are extending our platforms to be able to deliver more value for customers.

Speaker #4: So we're able to offer our multinational global customers that have used our US corporate tax solution to extend their be able to fulfill their need to have a more broad platform, including the real-time reporting VAT compliance and e-invoicing.

Speaker #4: So, a very natural extension and serves our current customers well, and brings in a customer base that is very blue chip companies. The combined solution.

Stacey Caywood: Very natural extension and serves our current customers well, and that brings in a customer base that is very blue-chip companies, 30% headquartered in the US, that need the combined solution. Another very good example of how we are extending our platforms to be able to deliver more value for customers.

Speaker #4: So another very good example of how we're extending 30% headquartered in our platforms to be able to deliver more value for customers.

Speaker #5: Great. Thank you very much.

Thymen Rundberg: Great. Thank you very much.

Speaker #1: Thank you. And we have time for one more question today. There are further questions in the queue. Please note the investor relations team will reach out to those still in the queue.

Operator: Thank you. We have time for one more question today. There are further questions in the queue. Please note the investor relations team will reach out to those still in the queue. Take our last question now. This is from Will Packer from BNP. Please go ahead.

Speaker #1: We'll take our last question now. This is from Will Packer from BMP. Please go ahead.

Will Packer: Hi there. Many thanks for taking my questions. Firstly, as you mentioned, the competitive intensity in US clinical diagnostics has increased materially. Using third-party web traffic sources, we can observe that OpenEvidence web and app traffic has grown very strongly and is now the most used clinical diagnostics tool. Our tracking suggests that after a period of stability, UpToDate weekly active users has fallen a fair bit since May. Is there anything specific behind this fall or is this more of a management issue? It's always potentially dangerous using these third-party sources. Could you comment more widely as the extent to which you see OpenEvidence as a complementary or substitutable product for UpToDate?

Speaker #6: Hi there. Many thanks for taking my questions. Firstly, as you mentioned, the competitive intensity in US clinical diagnostics has increased materially. Using third-party web traffic sources, we can observe that open evidence web and app traffic is growing very strongly and is now the most used clinical diagnostics tool.

Speaker #6: Our tracking suggests that after a period of stability, up-to-date weekly active users has fallen a fair bit since May. Is there anything specific behind this fall, or is this more of a management issue?

Speaker #6: It's always potentially dangerous using these third-party sources. And could you comment more widely as to the extent to which you see open evidence as a complementary or substitutable product for UpToDate?

Will Packer: It's always potentially dangerous using these third-party sources. Could you comment more widely as the extent to which you see OpenEvidence as a complementary or substitutable product for UpToDate? Secondly, within the legal segment, we've had a whole flurry of announcements from new AI native players, the likes of Harvey and Legora, rapidly scaling in the new workflow layer with combined ARRs in excess of EUR 400 million in Q2 with strong growth.

Speaker #6: And then secondly, within the Legal segment, we've had a whole flurry of announcements from new AI-native players—the likes of Harvey and Legora—rapidly scaling in the new workflow layer.

Will Packer: Secondly, within the legal segment, we've had a whole flurry of announcements from new AI native players, the likes of Harvey and Legora, rapidly scaling in the new workflow layer with combined ARRs in excess of EUR 400 million in Q2 with strong growth. Could you talk the extent to which you see that fast-growing workflow opportunity as core for your Wolters Kluwer legal business? Or the extent to which you're going to be more focused on the research side, for example? Any color there would be useful. Thank you.

Speaker #6: We've combined ARR and access to 400 million in Q2. We have strong growth. Could you talk about the extent to which you see that fast-growing workflow opportunity as core for your Wolters Kluwer Legal business?

Will Packer: Could you talk the extent to which you see that fast-growing workflow opportunity as core for your Wolters Kluwer legal business? Or the extent to which you're going to be more focused on the research side, for example? Any color there would be useful. Thank you.

Speaker #6: Or the extent to which you're going to be more focused on the research side? For example, any color there, be useful. Thank you.

Speaker #4: Yeah. So in terms of the up-to-date usage stats, as I've mentioned before, public usage stats are not a reliable proxy for up-to-date usage significant portion of up-to-date usage is not via the web, but via EHRs or integrated into the health systems electronic medical records and also through now through ambient scribes and so on.

Stacey Caywood: In terms of the UpToDate usage stats, as I've mentioned before, public usage stats are not a reliable proxy for UpToDate usage. Significant portion of UpToDate usage is not via the web, but via EHRs or integrated into the health system's electronic medical records, now through ambient scribes and so on. This usage is not captured on the web stats. Clinicians today do have a growing number of AI native solutions available for quick questions, naturally, those interactions do capture a portion of their clinical decision support needs, especially simpler queries. Those would be the types of queries that you'd see from OpenEvidence or other LLM players, we've always had through Google, prior to LLMs.

Speaker #4: So this usage is not captured on the website. Web stats. But that said, clinicians today do have a growing number of AI native solutions available for quick questions.

Stacey Caywood: Clinicians today do have a growing number of AI native solutions available for quick questions, naturally, those interactions do capture a portion of their clinical decision support needs, especially simpler queries. Those would be the types of queries that you'd see from OpenEvidence or other LLM players, we've always had through Google, prior to LLMs. We have a differentiated AI solution based on the most trusted and proprietary UpToDate content.

Speaker #4: And naturally, those interactions do capture a portion of their clinical decision support needs, especially simpler queries. So those would be the types of queries that you'd see from open evidence or other LLM players.

Speaker #4: And we've always had through Google prior to LLMs. We have a differentiated AI solution based on the most trusted and proprietary up-to-date content and that's why hospitals have adopted expert AI in such a increasing way to be able to achieve that 90% adoption rate that we shared earlier.

Stacey Caywood: We have a differentiated AI solution based on the most trusted and proprietary UpToDate content. That's why hospitals have adopted Expert AI in such an increasing way to be able to achieve that 90% adoption rate that we shared earlier. If I talk about the question on legal, our Libra acquisition is, in fact, just what you had talked about, the AI workspace that is deeply integrated with our proprietary legal content. That's a real differentiator for us as we are launching our integrated solution into the countries where we operate. I talked about the fact that we have now launched this integrated research and AI workspace product line into our 10 countries where we have our proprietary content sold today.

Stacey Caywood: That's why hospitals have adopted Expert AI in such an increasing way to be able to achieve that 90% adoption rate that we shared earlier. If I talk about the question on legal, our Libra acquisition is, in fact, just what you had talked about, the AI workspace that is deeply integrated with our proprietary legal content. That's a real differentiator for us as we are launching our integrated solution into the countries where we operate.

Speaker #4: So if I talk about the question on legal, are Libra acquisition is in fact just what you talked about, the AI workspace that is deeply integrated with our proprietary legal content.

Speaker #4: And that's a real differentiator for us as we are launching our integrated solution into the countries where we operate. I talked about the fact that we have now launched this integrated research and AI workspace product line into our 10 countries where we have our proprietary content sold today.

Stacey Caywood: I talked about the fact that we have now launched this integrated research and AI workspace product line into our 10 countries where we have our proprietary content sold today.

Speaker #5: Thanks for the call.

Will Packer: Thanks, Michelle.

Speaker #4: Okay. All right. Well, I'll stop. Just close up with just thank you for joining the call today. We're very pleased to share the good first half results to reaffirm our guidance.

Stacey Caywood: Okay. All right. Well, I'll just close up with just thank you for joining the call today. We're very pleased to share the good H1 results to reaffirm our guidance. We're very pleased with the acceleration and delivery on our strategic priorities, including our AI and agentic AI rollout. Thanks very much. Look forward to seeing you all again soon.

Speaker #4: And we're very pleased with the acceleration and delivery on our strategic priorities, including our AI and agentic AI rollout. So, thanks very much, and we look forward to seeing you all again soon.

Operator: Thank you. That does conclude today's conference call. Thank you for participating. You may now disconnect.

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