Hey guys, good morning and thank you for taking my questions. Just wanted to touch on—you guys cited some timing around renewals that may have impacted ACV growth during the quarter.

Is anything around that due to longer sales cycles, and anything we should expect to persist at all in the second half of the year?

Hey, good morning Scott. Thanks for the question.

We believe that our results for Q2 and the first half are in line with our original expectations. If I remind everyone, we pointed—the equivalent of page 20 in Q1 indicated we expected to see a pullback in recurring organic growth in Q2.

Subscriptions were a part of that, ACV, we continue to make progress over the last six quarters. It's not always going to be linear, but we continue to see strong renewal rates and good opportunities for the new products to convert to sales.

The timing of renewals is something we see in the business from time to time. No, we don't think it's an elongation of the renewal cycle, and the organic ACV growth of about 1.5% in the end of June is generally in line with our first half organic growth for subscription revenues at about 1.2%.

We're generally where we expected. As we indicate also on page 20 in this quarter's deck, we expect the ACV and the organic recurring revenue to inflect in the second half of the year.

We have good line of sight to that. At this point in the year, the A&G business, as of the end of July, has 75% of this year's business in the bag, very similar to what we saw at this point last year.

The fall is an important renewal cycle, but we're already well on our way, and we have good line of sight to the second half of the year. Thanks for the question, Scott.

Thank you. Thanks so much.

I was hoping you could talk more about the MCP opportunity, where you think— which client types are going to more gravitate towards utilizing your data over MCP, which segments, etc., and just how you're thinking about how it could contribute to growth and is it included in the subscription or is there an upcharge for it? Also just, Jonathan, congratulations on your new opportunity.

Thanks.

I'll take this one. Thank you, Toni.

To take maybe to take a broader view on the AI innovation we are doing, we are very much focused, and since I joined or since we started the VCP, we are delivering on 19 different initiatives regarding external and new products that we are delivering. We are very, very pleased with the progress so far, which is the AI enablement of our existing products is a source for revenue for new logos, new products, and improving retention.

We think also to allow us to have some AI-specific pricing for new products. New revenue generation or new revenue stream—for example, Web of Science Research Intelligence definitely a revenue new revenue stream, PharmaPendium a new revenue stream, IP One that I've been talking about, and we are very excited about IP One, definitely a new revenue stream.

Some will come, Nexus Connect, another product of A&G, which will involve MCP. We see the customers in the three segments, including Life Sciences, either want to consume our data, our proprietary data, either directly through us with our UX, our new AI-enabled products, or using their own.

Customers, there's a tendency in some the bigger customer, would like us to embed our capabilities, MCP capabilities, into their respective corporate AI products. This is why you see more of our products whether it's into embedded into Anthropic, ChatGPT, and other generic LLMs.

By and large, the bigger customer would like to be able to embed this through MCP. Smaller customer may want to use it in our environment.

This is just early days. Overall, we are very pleased with the momentum that we're having introducing AI either our own native or embedded our proprietary data into MCP environment of the customer, basically into corporate AI infrastructure.

Thank you.

Thank you. Firstly, congratulations, Jonathan and Matti, both for your new roles.

I just had a question on the expectation for acceleration of organic growth. I think it said sequentially 100 basis points.

Can you flush that out a bit if it's different between academic and government and then the IP side as well? I think just going into '27, I guess, maybe just, is that 100 basis points for the full year as well in '27 or how should we think about that?

I think we are pretty positive on both segments. We have a line of sight that the momentum is building up in IP as well.

We are back to recurring flat in QT in Q2. We believe that we're going to improve reoccurring in the second half of the year for IP as well with a great new momentum.

As here to re-mention the introduction of or the rejoining of Simon to Clarivate, he's been in the industry for 20 years. He was kind enough to come back and support us.

He will utilize all his IP knowhow and expertise and accelerating the progress on the IP turnaround. We do believe IP will be turned around faster with Simon in place and with the great assets, the new IT software intelligence that we have, and with the AI innovation that I've mentioned.

I've mentioned Riskmarker as a product that won three awards, and I'm also upbeat about IP One. IP One is not just intelligence; IP One is, in fact, an agentic environment in which IP professional Basically, we're taking a different route.

We all know about the Derwent and the other one which been a little bit contracting, and basically we are going to disrupt the market using both our agentic capabilities and expertise and our proprietary data. That's on the IP side.

On the A&G side, momentum is also building with the new Web of Science Research Intelligence, with a new Alma Specto, and with obviously Nexus Connect and several other new innovation coming out from the A&G product house. Optimistic on both segments.

Next question, please.

Hi, thanks. Good morning.

Thank you. I wanted to dive more into transactional revenue performance.

To what extent would you say the transactional revenue declines are due to industry factors versus idiosyncratic execution factors? What gives you confidence that there's a path for transactional revenue performance to improve?

Let me start, and I will hand it over to Jonathan. The idea that we are moving is part of my playbook or the playbook we've used in the VCP is to move away from transactions.

Going into this VCP, there were certain pieces that we divested completely, like the one-time books, the one-time parts, the real-world data. We divested this business completely.

In the divestiture of Life Sciences, we're also giving away, some of the Life Sciences was a little bit higher on transactional. There's still a portion of transactional business that stay with us, and it's supporting the one-time business that we have.

Still, within this transactional business, there are still business that we have the ambition to transform to subscription. Just one simple one example is the backfiles of Web of Science.

This will gradually improve our subscription rates, going even beyond 94 92%. I hand over to Jonathan for some more specifics about the quarter.

Thanks Matti. Just a little bit of additional color on the quarter, George.

The Life Sciences business is still in our organic results in Q2. We didn't reach the agreement until after the end of the quarter.

That business saw some headwinds in the quarter on transactional in particular. As Matti said, we are have been looking to migrate some of those things to subscription.

That's been piecemeal, but also we just saw some headwinds in Life Sciences. In the other two businesses, the business can be lumpy quarter-to-quarter.

We knew we lapped a couple of things in Q2 in both of those businesses that were going to be a bit of a headwind, but we do expect that to ameliorate in the second half of the year. I think we have better line of sight into that.

Our full-year guide does contemplate that transactional will be down slightly year-over-year, but I think we'll see some improvement on that in the second half. Thanks for the questions, George.

Thank you.

Hi, this is Adam on for Shlomo. Were there any client losses that might have impacted the Life Sciences business that drove the revenue decline in addition to the kind of transactional movement?

Thanks for the question. No, there's nothing discrete or specific.

As I mentioned, Matti talked about the fact that we've had an emphasis over the last year or so of really providing good subscription alternatives to migrate some of the transactional business away from. Certainly, that is an item, but nothing specific that we would highlight on an individual basis other than just some headwinds in that area on transactional side.

Okay. Did the buyer of the Life Sciences division know the performance in the second quarter when they announced the deal?

Just want to verify what potentially trigger if there's a MAC clause or anything like that.

No, certainly this is nothing to that level. That process is moving exactly as we would expect.

We worked through the process to reach an agreement, and all of the approvals that are required are customary, and we expect those to occur in the coming months, and we expect this to close before the end of the year.

Thank you.

As we close, I want to just repeat the key takeaways today are very, very clear. We have a building block in place to accelerate organic growth, and we will continue to deliver on our commitment to drive long-term shareholder value.

Thank you for joining us.