Bentley Systems (BSY) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in Q4 and full year 2025, with double-digit revenue and ARR growth year-over-year, sustained by robust subscription growth and margin expansion.

• Adjusted operating income less stock-based compensation (AOI less SBC) compounded at over 16% per year since 2022, with margin rising to 28.6% in 2025.

• Free cash flow for 2025 reached $520M, up 24% year-over-year, with margin at 35% and truly free cash flow margin (less SBC) at 30%.

• AI and Asset Analytics are seen as transformative opportunities, with capabilities expanded through acquisitions and new solutions.

• Deleveraging completed; leverage at 2.1x, enabling up to $400M in annual programmatic acquisitions.

Financial highlights

• 2025 total revenues: $1,502M, up 11% reported and 10% constant currency year-over-year; Q4 revenues: $392M, up 12% reported.

• Subscription revenues grew 13% for the year, now 92% of total revenues; ARR at Q4 end: $1.462B, up 11.5% YoY constant currency.

• Adjusted operating income less SBC: $430M for 2025 (margin 28.6%, up 110 bps YoY); GAAP operating income for 2025 was $363M (+20% YoY).

• Free cash flow: $520M, up 24% YoY; adjusted EBITDA for 2025 was $526M, up 13% YoY.

• Net income per diluted share was $0.85 for the year; adjusted EPS was $1.21.

Outlook and guidance

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

• Subscription revenues to grow 11–13%; service revenues to accelerate 15–20%.

• Projected ARR growth: 10.5–12.5% constant currency.

• Adjusted operating income less operating SBC: $495M–$510M; free cash flow guidance: $500M–$570M, with 45–50% generated in H1.

• Effective tax rate for 2026 expected at 21%; diluted share count between 320.8M and 322.4M.