Bentley Systems (BSY) investor relations material

Executive summary

• Q2 2025 revenues reached $364.1M, up 10.2% year-over-year, with robust ARR and subscription growth, and strong execution across all regions and sectors.

• Business model resilience shown by high retention, continued expansion in large and SMB segments, and 14 consecutive quarters of 600+ new logos.

• Secular trends in digitalization, AI adoption, and infrastructure demand underpin long-term growth, with strategic focus on asset analytics and AI integration.

• Resources sector led growth, with Public Works/Utilities and regional strength in India and Latin America.

• Management highlighted strong operational execution, resilience amid global uncertainties, and confidence in meeting 2025 outlook.

Financial highlights

• Q2 total revenues were $364.1M, up 10.2% year-over-year; six-month revenues reached $734.6M, up 10%.

• Subscription revenues grew 12.1% year-over-year to $333.5M, now 92% of total revenues; perpetual licenses declined to 3%.

• Adjusted operating income less SBC was $105.2M for Q2 (28.9% margin), up 10.4% year-over-year; YTD $231M (31.5% margin), up 11%.

• Free cash flow for Q2 was $57M; six-month free cash flow was $273.4M; full-year FCF outlook raised to $430–470M.

• Net income for Q2 2025 was $70.5M; diluted EPS was $0.22; gross margin for Q2 was 81.1%.

Outlook and guidance

• On track to deliver within annual outlook for ARR growth, revenues, profitability, and increased free cash flow.

• Full year 2025 revenue outlook: $1,461M–$1,490M (or $1,481M–$1,510M in constant currency), with ARR growth of 10.5%–12.5%.

• AOI less SBC margin expected at approximately 28.5%, up 100bps YoY; free cash flow guidance raised to $430M–$470M.

• Management anticipates favorable cash tax impacts in 2025 due to recent U.S. tax legislation changes.

• Q3 anticipated as seasonal low for ARR growth; foreign exchange tailwinds could add $17M to second-half GAAP revenues.