Bentley Systems Q4 Earnings Call Highlights

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• The full-year result reflected 110 basis points of margin improvement, consistent with the company's outlook

  80% confidence

• E365 represented 45% of subscription revenue, up from 42% in 2024

  80% confidence

• The U.K. was softer due to product pauses earlier in 2025, though the design and engineering pipeline was improving

  80% confidence

• Subscription revenue rose 13% reported (12% constant currency) for the full year, and 13% reported (11% constant currency) in the fourth quarter

  80% confidence

• Management is expanding its M&A openness beyond asset analytics as leverage has come down, while stressing it is not necessarily targeting that full annual amount

  80% confidence

• Constant-currency account retention was 99%

  80% confidence

• Power Line Systems benefited from demand for grid resilience and increased power generation

  80% confidence

• Sequential ARR growth aligned with expectations given typical fourth-quarter seasonality and timing of asset analytics deals and programmatic acquisitions

  80% confidence

• In Asia Pacific, India grew solidly, China remained impacted by economic and geopolitical headwinds, and Australia showed signs of recovery

  80% confidence

• Perpetual license revenue is expected to remain relatively flat in 2026

  80% confidence

• In EMEA, growth was led by the Middle East, while Europe delivered a strong quarter

  80% confidence

• Adjusted operating income less stock-based compensation was $94 million in Q4, representing a 24.1% margin, and $430 million for the year with a 28.6% margin

  80% confidence

• Perpetual license revenue was essentially flat for both the quarter and year

  80% confidence

• The company's 2026 guidance assumes a demand environment remarkably consistent with 2025, noting that the main slowdown in recent years had been in facilities and commercial buildings

  80% confidence

• For 2026, adjusted operating income less operating SBC is projected at $495 million to $510 million and free cash flow at approximately $500 million to $570 million

  80% confidence

• Last-twelve-month recurring revenue growth was 12% year-over-year, representing 93% of total revenue

  80% confidence

• Public works and utilities delivered strong growth, driven by global infrastructure investment and standout performance from Bentley Asset Analytics

  80% confidence

• Subscription revenue is expected to grow 11% to 13% in constant currency in 2026

  80% confidence

• Bentley's role as a system of record—especially via ProjectWise within Bentley Infrastructure Cloud—positions the company to steward proprietary engineering data and enable AI training under customer control

  80% confidence

• GAAP operating income was $79 million in Q4 and $363 million for the year

  80% confidence

• Free cash flow for 2025 totaled $520 million, up 24% year-over-year

  80% confidence

• Resources was Bentley's fastest-growing sector in Q4

  80% confidence

• Full-year 2025 total revenue was $1.502 billion, up 11% on a reported basis and 10% in constant currency

  80% confidence

• Industrial growth was solid, while commercial facilities were relatively flat

  80% confidence

• Subscription revenue accounted for 92% of total revenue, up from 2024

  80% confidence

• Service revenue declined 6% reported (7% constant currency) for the year, with a modest increase in the fourth quarter

  80% confidence

• Bentley ended 2025 with net debt leverage of 2.1x and has capacity for dividends, share repurchases, and up to $400 million in programmatic acquisitions annually

  80% confidence

• The company's AI approach is twofold: embedding AI capabilities into products and instrumenting platforms so users and partners can build AI-driven workflows

  80% confidence

• Bentley has a principled approach to data ownership, where customers decide if their data can be used for AI training and can grant or revoke consent through a Data Agreement Registry

  80% confidence

• Cash flow guidance reflects variability in fourth-quarter collections and repaying the 2026 convertible notes would introduce about $30 million of cash interest outflow compared with a negligible amount in 2025

  80% confidence

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