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.

On the call today are Stacey Caywood, our CEO, and Kevin Entricken, 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.

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 2 of today's release and in our latest annual report.

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, and 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 4 of today's release. At this time, I would like to hand over to our CEO, Stacey Caywood.

Thank you, Meg. Welcome, everyone, and 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% 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 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.

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'm pleased to report that our recent acquisitions performed strongly in the first half 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 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. 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'm 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.

Learning, Research & 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 & 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 the first half 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 continue 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 & 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. 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-sized 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. 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 & 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 of 2025 and focused on serving mid and large corporations, continued to perform strongly.

Corporate Performance & ESG 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 first half. The adjusted operating profit margin increased to 9.7%, reflecting operational gearing and careful expense management.

In Environmental, Health & Safety and 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 & 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 recorded high-single-digit growth.

We're delighted to announce today that Marosa has joined Wolters Kluwer. This bolt-on acquisition will accelerate the development of a global indirect tax product.

In February, we announced plans to speed up the pace of advanced AI innovation to capture opportunities ahead to drive 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 greenlight 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. 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 Enterprise 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.

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. 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.

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. 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 & Regulatory, we acquired a German legal AI startup, Libra Technology, in November last year.

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. 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 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. 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 DAX 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 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.

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.

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. 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%. 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 second-half weighted.

First-half diluted adjusted earnings per share increased 14% in constant currencies. First-half adjusted free cash flow was €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-month 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 & Accounting revenues grew 6% organically, in line with the comparable period and supported by a strong second quarter.

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

Legal & Regulatory grew 5% organically against a tough comparable related to the German elections last year. Finally, Corporate Performance & 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. 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, represent 15% of group revenues. Here we continue 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 US M&A volumes and lending activity at subdued levels.

Legal & 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.

Print books, which are only 1% of revenue, saw a sharp fall in the first half largely due to changes in the publication schedule. 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. The adjusted operating profit margin increased 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. This resulted in a notable margin increase in the Financial & 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 & Accounting and Legal & 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 the second half as we approve and kick off AI development projects. Restructuring expenses, which we include in adjusted operating profit, amounted to €9 million compared to €5 million in the comparable period.

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. 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. As a result, adjusted profit before tax increased 9% in constant currencies.

The benchmark effective tax rate was stable at 23.8%. 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 €637 million, up 10% in constant currencies. First-half diluted adjusted EPS was €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.

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.

Capital expenditures were €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 €66 million.

This reflects the higher coupon interest paid and lower interest income on cash balances. 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. 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. Dividends paid reflect the final dividend payment for 2025 fiscal year of €303 million.

This excludes withholding taxes, which were paid in July. Cash deployed towards share buyback repurchases amounted to €215 million in the first half.

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 leverage.

We remain in solid financial position with sufficient room to support organic investments in the business and make selective acquisitions. At this time, we're 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 & 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 in constant currencies.

As mentioned in today's release, product development spending is expected to be second-half weighted. We're happy to reiterate our margin guidance for approximately 28%.

In summary, we're pleased with the good first-half 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.

Thanks a million. Three questions for myself.

Firstly, just on the FY '26 margin guide, it implies quite a step-up in costs in H2. Could you just help us understand where specifically the incremental product development spend will be focused?

Then just separately, could you comment on whether any of the increased costs in H2 is reflective of AI cost inflation more generally? Secondly, again just on margin, 2026 has quite a lot of moving parts.

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 just 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 '27.

Then just 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 rounding of the growth rates to one significant figure.

Can you just provide a bit more color on the Q2 performance and if it was materially different from Q1? Thanks.

No, thanks very much, Ciaran. I'll start with the product development and the investments that we'll be making in the second half, and also the CS question.

Kevin, maybe you can give a little bit more detail on the margin expectations. 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 Axcess, in our Legal & Regulatory business, and in Health.

Those will continue to drive the roadmap. 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.

We're excited to be able to further those investments. Then we're 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 in the second half of the year. With regard to CS, we had a good first half in Health overall, strong renewals.

You mentioned some of the nuances and slight changes compared to the first half last year and this year. For us, that was in the Medi-Span drug solution business that is within the Clinical Solutions portfolio, where in the first quarter of '25, we had a slight pickup of non-recurring revenue, which did cause a small grow-over this year in the CS portfolio.

Then, Kevin, do you want to give a bit more insight into the margin this year?

Absolutely. Ciaran, 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. In the first half, it was about 11% of revenues.

By the full year, I expect it to get to 12% to 13%. A lot of the margin progression in the second half 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'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, 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're expecting.

Then

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

We're not giving guidance today for '27, but as our history over the last several years is to continue to deliver good organic growth and to continue to deliver some margin improvement. We'll have more to say about that in February when we give you 2027 guidance.

All right. Thanks very much, guys.

Good afternoon, guys. I've got three.

First question, you 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?

Then, 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 second half in Tax and Legal at this point, given that your guidance calls for an acceleration in both of those?

Given the weighting to subscriptions, can we think that that's mostly kind of signed and sealed by now? 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.

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?

Okay.

Thanks, Nick. In Health, and particularly with our enterprise edition, customers were 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. 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.

That's how the rollout is expected. As these are subscriptions, so that has a gradual impact as customers take in those additional capabilities.

Within Tax and Legal, we had good organic growth in the first half at 6%, very much in line with first half last year. The first quarter, we were impacted by a change in publication dates for US books, so 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.

Then, 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 & Regulatory, the major drivers there in terms of what's going to cause the second-half pickup, the acquisition of Brightflag became organic at the end of June, so that will begin rolling in in the second half, and then we'll have a slight benefit from Libra, which becomes organic towards the end of the year, November. Then the other big piece that impacted the first half of Legal & 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.

Then maybe, Kevin, you could talk about the share buyback?

Certainly, Stacey. 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 and 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 to increase, it does indeed expand our distributable reserves, so 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.

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.

Thank you, guys.

Excellent. Thank you for taking my questions.

Three from me. The first two are both building off Nick.

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 FY '27 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 & 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. Can you give more color within CP & 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.

Sure. Yes, in terms of CS, 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 mentioned, for example, drug dosing recently added, we expect the activation to continue to grow.

We're also seeing 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.

Then in CP & ESG, our Enablon platform is really around safety, around ensuring that our customers' employees remain safe in high-risk industries, and one of those is oil and gas. Oil and gas companies, as you might have imagined, 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 & ESG forecast.

Very helpful. Thank you, Stacey.

Yeah. Hi, Stacey and Kevin.

Hope you're having a good summer so far. Just 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 half, and I appreciate you called out those factors around 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? Just secondly on Clinical Solutions, good renewal rates, high uptake of Expert AI in 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 offerings? Thank you.

Yeah.

With CP & ESG, yes, as we noted in our first-quarter press release, the sales cycles are also slower in the Middle East. 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.

Then, Kevin, I don't know if you want to add anything more to that?

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.

Yeah. 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, less than 2% for 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 chatbots.

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 AI dosing is also now available as of the last month or so. Good progress in rolling out the Expert AI solution.

That's great. Thank you.

Yeah. Hi, good afternoon.

Three questions for me as well, please. The first one is, can you give us an update on where you are in the migration from ProSystem to Axcess in the US tax business?

I think last told us you were just over halfway. Where do you think you are now?

Second question is, can you give us any color on F&CC 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, and then in H1 next year, we're not going to have the benefit of the disposal of FRR, I know you're not going to give guidance, but should we be modeling some kind of big step-down in margins in H1 '27 as those extra costs are carried forward into next year?

I will take the first one. In ProSystem fx, as you noted, we have made it to the halfway mark in terms of migrating from ProSystem 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, that 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'll just do a quick confirmation of what Kevin mentioned earlier in terms of sort 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 FCC transactions.

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, but 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 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. 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 the second half of the year, 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 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.

Okay. Thank you.

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, just 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 on I guess price or yield would be per subscriber?

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, anything that you can give us there would be useful.

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 first half was 5%? What would that be if we included on a pro forma basis those acquisitions?

Thanks.

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, 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, 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.

Then with Legal and the inclusion of Brightflag into organic growth and Libra, Kevin, why don't you take that one?

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.

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 second half of the year, and Libra probably not, maybe December, but the effect of Libra will be much less. Brightflag 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.

Great, thank you.

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?

Then what gives you the confidence that this is moving from initial adoption to becoming really embedded in the day-to-day workflow usage? Then 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 Marosa. I just wanted to ask if you can discuss how do you decide whether an opportunity is best addressed to either build, buy, or partner?

For example Marosa that you just announced as well, what gives you the confidence that they can become a strong platform extension? Thanks.

Certainly in terms of the AI usage, yes, we are seeing nice adoption. For example, in our the intelligence layer within our CCH Axcess platform, if you recall the 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.

Still very early days, but we're very encouraged by the adoption, the feedback we're getting. We are seeing, very nice improvements in efficiency when customers are using our solutions.

For example, in K-1 Scan, the 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 in the past manually. We're seeing good adoption there.

Also, as I mentioned in in the Libra rollout, we're seeing very good adoption, usage, engagement, which is, fueling the continued rollout of that solution. Very encouraged by what we're seeing so far in our AI rollouts and launches.

In terms of our, how we think about our M&A activities, we've really been very successful in two areas where we, for example, have are deeply embedded in one part of a workflow and extend to another. This has been the case with our our Finsight Isabel Group product line acquisition several years ago, certainly 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. This latest acquisition that we announced this morning, which is Marosa, is a very good example of that.

What Marosa does is that it's a 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're able to offer our multinational, 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're extending our our platforms to be able to deliver more value for customers.

Great, thank you very much.

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 is going 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 it more of a measurement issue? It's always potentially the dangerous using these third-party sources.

Could you comment more widely as to the extent to which you see OpenEvidence as a complementary or substitutable product for UpToDate? 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 with combined ARRs in excess of 400 million in Q2 with strong growth.

Could you talk to 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.

Yep. In terms of the UpToDate usage stats, as I mentioned before, public usage stats are not a reliable proxy for UpToDate usage.

A significant portion of UpToDate usage is not via the web, but via EHRs or integrated into the health systems' electronic medical records, and also through ambient scribes and so on. This usage is not captured on the web stats.

That said, clinicians today do have a growing number of AI native solutions available for quick questions, and actually 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, 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.

If I talk about the question on Libra Legal, our Libra acquisition is, in fact, just what you 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.

Thanks for the color.

Okay. All right.

I'll 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, and we're very pleased with the acceleration and delivery on our strategic priorities including our AI and agentic AI rollout.

Thanks very much and look forward to seeing you all again soon.