MERODANMarginalia
Merodan · Exhibit 02

Marginalia

Two hundred pages in. The handful that matter out.

Marginalia reads a company’s annual report end to end and returns six plain-English sections. Every figure is drawn straight from the document — described, never advised.

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The brief below is a complete, unedited example of what comes back.

A worked example

What comes back

Below is a complete brief, generated from a real published annual report and shown unedited — the same six sections you get for your own file.

A real brief, generated from a published annual report.Sample output

London Stock Exchange Group plc

Year ended 31 December 2025·GBP
01

Business Snapshot

What the company does

LSEG is a provider of financial markets infrastructure and data products, delivering capabilities in data, indices and analytics, capital formation, trade execution, clearing and risk management.

The company generates revenue through a combination of recurring subscription-based services and transactional fees derived from its four business divisions: Data & Analytics, FTSE Russell, Risk Intelligence and Markets.

02

What Changed Year-over-Year

Revenue, profit & key line items

Revenue

Revenue increased from £8,579m in 2024 to £9,081m in 2025.

£9,081m
from £8,579m
Net profit for the year

Profit for the year rose to £1,506m compared with £921m in the prior year.

£1,506m
from £921m
Adjusted EBITDA margin

The adjusted EBITDA margin expanded to 50.3% from 48.8% in the prior year.

50.3%
from 48.8%
Operating profit

Operating profit increased to £2,127m from £1,463m in 2024.

£2,127m
from £1,463m
Basic earnings per share

Basic earnings per share rose to 238.4p from 128.8p in the prior year.

238.4p
from 128.8p
Total assets

Total assets increased to £796,704m from £732,819m in 2024, driven primarily by clearing member assets.

£796,704m
from £732,819m
Net cash flows from operating activities

Net cash flows from operating activities increased to £3,622m from £3,396m.

£3,622m
from £3,396m
03

Management's Stated Risks

Risks leadership flagged

  • Central counterparty (CCP) risk

    The company faces financial and operational risks inherent in central clearing, where a member default could lead to losses from adverse price movements or liquidation costs.

  • Model risk

    Flaws in model design, data sourcing, implementation or misuse — including risks from generative and agentic AI — could result in financial loss or reputational harm.

  • Technology risk

    Dependence on complex, interconnected systems means outages or infrastructure failures could interrupt market operations and impact customer access.

  • Information and cyber security

    The company is exposed to cyber threats targeting systems and data, which could pose systemic risks to the broader financial sector.

  • Third-party risk

    Reliance on third-party providers, including cloud services, exposes the group to technology, cyber, geopolitical and regulatory risks if those providers fail to meet obligations.

  • Regulatory change and compliance

    Operating within complex, evolving cross-border regulatory environments requires the company to anticipate and adapt to changes to ensure ongoing compliance.

  • Disruptive technology

    Emerging technologies such as AI, cloud computing and distributed ledger systems could reshape market dynamics and challenge core services.

04

Flags Worth Noticing

Auditor, related-party, debt

  • Auditor

    Deloitte LLP was appointed as auditor on 25 April 2024, with a total uninterrupted engagement period of two years covering the years ending 31 December 2024 to 31 December 2025.

  • Related party

    The Company has a tax indemnity receivable from Thomson Reuters for tax liabilities incurred prior to the separation of the Refinitiv business on 1 October 2018, measured at £44 million as of 31 December 2025.

  • Related party

    The Company has a corresponding tax indemnity payable to Thomson Reuters, measured at £177 million as of 31 December 2025.

  • Debt

    The Company reported total borrowings of £1,366 million as of 31 December 2025, consisting of bonds maturing between 2027 and 2030.

  • Noted

    The Group reported a share buyback obligation of £417 million in current payables as of 31 December 2025.

  • Tone shift

    Management noted that the UBS/Credit Suisse merger led to contract optimisation and reduced that client's contribution to Data & Analytics Annual Subscription Value (ASV).

05

Where the Money Went

Capital allocation

Capex£1,906 milliontotalout
£861 millionPayments for intangible assets during the year.
£921 millionPayment for a SwapClear intangible asset.
£124 millionPayments for property, plant and equipment.
Dividends£760 milliontotalout
£718 millionDividends paid to equity holders.
£42 millionDividends paid to non-controlling interests.
Buybacks£2,152 milliontotalout
£2,072 millionThe Company repurchased its own shares.
£80 millionThe subsidiary Tradeweb repurchased its own shares.
Debt repaid£730 millionout
Repayments of borrowings and settlement of derivative financial instruments.
Other
£279 millionInvestments in financial assets and joint ventures (outflow).
£204 millionProceeds received from changes in non-controlling interests (inflow).
06

Open Questions

Worth exploring next — not advice

  1. 01

    What specific factors contributed to the expansion of the adjusted EBITDA margin from 48.8% to 50.3%?

  2. 02

    What are the primary drivers behind the increase in total assets from £732,819m to £796,704m?

  3. 03

    How does the company plan to mitigate the impact of contract optimisation and reduced contributions from the UBS/Credit Suisse merger on its Data & Analytics ASV?

  4. 04

    What is the nature of the £133 million difference between the £177 million tax indemnity payable to Thomson Reuters and the £44 million receivable?

  5. 05

    How does the company's reliance on third-party cloud service providers influence its overall technology and cyber-security risk profile?

  6. 06

    What are the terms of the £417 million share buyback obligation reported in current payables?

Analysed from lseg-annual-report-2025.pdfvia gemini-3.1-flash-lite