Bentley Systems (BSY) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with total revenue of $1,502 million, up 11% year-over-year, and robust subscription revenue growth of 13%.

• ARR reached $1,462 million at year-end, up 11.5% in constant currency, with net revenue retention at 109% and account retention at 99%.

• Asset Analytics achieved a $50 million run rate, strengthened by acquisitions of Talon Aerolytics and Pointivo and AI-powered solutions.

• AI integration is central to strategy, with immediate monetization in asset analytics and a longer-term approach for design AI.

• Maintained broad-based growth across Americas and EMEA, with sector strength in Resources and Public Works.

Financial highlights

• Q4 revenue was $392 million, up 12% year-over-year; full year revenue reached $1,502 million, up 11% over 2024.

• Adjusted operating income less stock-based compensation was $430 million for 2025, up 16% with a 28.6% margin.

• Free cash flow for 2025 was $520 million, up 24% year-over-year, with a margin of 35%.

• Net debt leverage reduced to 2.1x, a four-year low.

• E365 now comprises 45% of subscription revenues, up from 42% in 2024.

Outlook and guidance

• 2026 revenue guidance: $1,685M–$1,715M, representing 11–13% constant currency growth.

• Subscription revenues projected to grow 11–13%; ARR growth expected between 10.5–13% in constant currency.

• Adjusted operating income less operating SBC forecasted at $495–$510 million for 2026, with margin improvement of ~100 bps.

• Free cash flow projected at $500–$570 million, with 45–50% generated in H1 2026.

• Effective tax rate expected at ~21%; diluted share count between 320.8M and 322.4M.