Q4 2025 Bentley Systems Inc Earnings Call Transcript
Key Points
- Bentley Systems Inc (BSY) reported strong financial results for 2025, with total revenues growing 11% on a reported basis and 10% in constant currency.
- The company's subscription revenues, which now represent 92% of total revenues, grew 13% reported and 12% in constant currency.
- Bentley Systems Inc (BSY) achieved a free cash flow margin of 35% in 2025, with a truly free cash flow margin (less stock-based compensation) reaching 30%.
- The company has successfully reduced its leverage to a healthy 2.1x, providing significant strategic flexibility for future investments.
- Bentley Systems Inc (BSY) is well-positioned to leverage AI as an opportunity, particularly in asset analytics and infrastructure engineering, which could drive future growth.
- The company's growth from smaller programmatic acquisitions was at a low of under 40 basis points in 2025, indicating limited contribution from these acquisitions.
- Bentley Systems Inc (BSY) faces challenges in classifying AI-driven asset analytics revenue as annual recurring due to regulatory requirements for infrastructure inspections.
- The macroeconomic environment in China remains challenging, with economic and geopolitical headwinds likely to persist through 2026.
- The company's exposure to currency fluctuations has shifted, creating potential headwinds to reported margin percentages due to the growth of Seequent.
- Bentley Systems Inc (BSY) acknowledges that the adoption of AI in design is still in early stages, with a focus on building market adoption rather than immediate monetization.
Good morning and thank you for joining Bentley Systems Q4 and full-year 2025 results and 2026 financial outlook. I'm Eric Boyer, Bentley Systems Investor Relations Officer. On the webcast today, we have Bentley Systems Executive Chair, Greg Bentley; Chief Executive Officer, Nicholas Cumins; and Chief Financial Officer, Werner Andre.
This webcast includes forward-looking statements made as of February 26, 2026, regarding the future results of operations and financial position, business strategy and objectives for future operations of Bentley Systems, Incorporated. All such statements made in or contained during this webcast other than statements of historical fact are forward-looking statements.
This webcast will be available for replay on Bentley Systems Investor Relations website at investors.bentley.com on February 26, 2026. After our presentation, we'll conclude with Q&A. And with that, let me introduce the Executive Chair of Bentley Systems, Greg Bentley.
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