Bentley Systems (BSY) investor relations material

Executive summary

• Q3 constant-currency ARR growth reached 13%, above the prior annual outlook range; net retention was a record 110%.

• Demand was supported by Resources, Public Works & Utilities, and infrastructure investment related to AI.

Financial highlights

• Q3 revenue was $421.507 million, up 12.2% reported and 12.7% in constant currency; subscription revenue was $386.819 million, up 12.4%.

• Nine-month revenue was $1,256.415 million, up 13.2%; subscription revenue was $1,157.938 million, up 13.5%.

• Q3 operating income was $122.623 million versus $84.497 million; net income was $89.997 million versus $57.289 million.

• Q3 adjusted operating income less operating SBC was $135.456 million, up 28%; nine-month results were $392.415 million, up 15%.

Outlook and guidance

• FY26 constant-currency ARR growth outlook excluding Cohesive was raised to 12.5%–13.5%; reported ARR growth outlook was 11.5%–12.5%.

• FY26 revenue outlook is $1,673 million–$1,703 million, reflecting the Cohesive divestiture; Cohesive is expected to reduce Q4 revenue by ~$12 million.

• Adjusted operating income less operating SBC guidance remains $495 million–$510 million; free cash flow guidance remains $500 million–$570 million.

• Subscription growth is expected toward the high end of the 11%–13% range; perpetual licenses and services are expected to be flat.