Bentley Systems Inc Earnings Summary
Bentley Systems, Incorporated (NASDAQ:BSY), the leading infrastructure engineering software company, reported robust financial results for the third quarter of 2025, showcasing significant growth in revenue and an emphasis on strategic innovations. The company continues to secure its position as a front-runner in the infrastructure software market through its solid execution and commitment to advancements in artificial intelligence (AI).
Bentley Systems Inc Financial Results
The financial results for the third quarter reflect Bentley Systems' sustained growth trajectory. Key financial metrics, as presented in the company's consolidated statements, highlight the company's strong performance.
| Financial Metric | Q3 2025 | Q3 2024 | Year-over-Year Growth |
|---|---|---|---|
| Total Revenue ($ in millions) | 375.5 | 335.2 | 12.0% |
| Net Income Per Diluted Share | 0.18 | 0.13 | 38.5% |
| Adjusted Net Income Per Diluted Share (Adjusted EPS) | 0.27 | 0.24 | 12.5% |
| Operating Income Margin | 22.5% | 20.5% | 2.0% point increase |
| AOI Less SBC Margin | 27.7% | 26.7% | 1.0% point increase |
| Cash Flows from Operations ($ in millions) | 116.4 | 86.1 | 35.2% |
| Free Cash Flow ($ in millions) | 110.7 | 84.3 | 31.3% |
These financial results underscore Bentley Systems' proficiency in delivering consistent growth and strong financial performance.
Revenue Breakdown
Bentley Systems' revenue growth was driven by its strong subscription model and recurring revenue streams, which now constitute a significant portion of total revenue. The following table provides a breakdown of revenue performance across major segments.
| Revenue Segment | Q3 2025 Revenue ($ in millions) | Growth Rate (Constant Currency) |
|---|---|---|
| Total Revenue | 375.5 | 10.6% |
| Subscriptions Revenue | 344.3 | 12.1% |
| Annualized Recurring Revenue (ARR) | 1,405.2 | 10.5% |
In-Depth Analysis : The 12.1% growth in subscription revenue highlights Bentley's focus on a stable recurring revenue model. Subscriptions now account for 92% of total revenue, signifying customer loyalty and Bentley Systems' effectiveness in retaining recurring business. The increased ARR further emphasizes the company's expanding footprint in the global infrastructure engineering software market.
Key Developments
Bentley Systems has not only strengthened its financial position but also made significant strides in technology and strategic partnerships:
-
Innovations in AI : During the Year in Infrastructure conference, Bentley Systems introduced new AI capabilities to address the growing need for engineering capacity, helping deliver essential infrastructure efficiently. The AI advancements are part of Bentley's strategy to enhance its software’s value across infrastructure sectors.
-
Strategic Acquisitions and Partnerships : Company executives, including CEO Nicholas Cumins, emphasized the importance of AI in closing the engineering capacity gap, suggesting potential partnerships and acquisitions aimed at reinforcing Bentley’s market position.
-
Product Announcements : Bentley Systems announced advancements in its digital twin solutions, enhancing their ability to transform project delivery and asset performance through enriched data utilization.
Comments from Company Officers
Commentary from Bentley's executive team provides insights into the company's future direction and strategic focus:
-
Greg Bentley, Executive Chair : "Our product announcements during the quarter and ongoing strategic developments for Infrastructure AI advancement present new opportunities to creatively broaden consumption and value generation of our software and cloud services."
-
Nicholas Cumins, CEO : "Our third-quarter results reflected strong execution and consistent growth drivers across commercial models, regions, and infrastructure sectors. Demand for infrastructure engineering remains robust, and project pipelines are full."
-
Werner Andre, CFO : "Solid 25Q3 results, in line with our expectations, position us well with respect to our full-year financial outlook. Our strong margin and cash flow performance puts us on track for another year of purposeful compounding."
Dividends and Share Repurchases
Bentley Systems continues to prioritize shareholder returns through careful management of dividends and share repurchase programs. The firm underlines its robust balance sheet and reliable cash flow as strategic levers to offset stock-based compensation dilution and support selective acquisitions.
Bentley Systems Inc Stock Forecast
Based on Bentley Systems' strong financial performance, strategic advancements in AI, and robust subscription growth, the company's stock price is expected to show moderate appreciation. The innovative AI initiatives and potential for expanded market penetration provide an optimistic outlook.
- High Projection : With continued revenue growth and execution of strategic AI initiatives, the stock could reach $65 in the near term.
- Low Projection : If market conditions fluctuate or strategic initiatives take longer to materialize, the stock may stabilize around $52.
The insightful quarterly performance and future-oriented innovations provide Bentley Systems with an encouraging outlook in the infrastructure engineering software domain.
