Bentley Systems, Incorporated (Nasdaq: BSY), a leader in infrastructure engineering software, announced its third-quarter results for the fiscal year ending September 30, 2025. The company reported robust financial growth, demonstrating resilience and effective execution in a dynamic market environment.

Key Financial Metrics

Total Revenues: Bentley recorded total revenues of $375.5 million, marking a 12.0% increase year-over-year. When adjusted for currency fluctuations, the revenue growth stands at 10.6%.

Subscriptions Revenues: The company’s subscription revenues reached $344.3 million, reflecting a 13.5% year-over-year increase, or 12.1% on a constant currency basis.

Annualized Recurring Revenues (ARR): As of September 30, 2025, ARR grew to $1,405.2 million, up from $1,270.7 million a year earlier, with a constant currency growth rate of 10.5%.

Dollar-Based Net Retention Rate: The dollar-based net retention rate remained strong at 109%, consistent with the previous year.

Operating Income Margin: Bentley reported an operating income margin of 22.5%, an increase from 20.5% in the same quarter last year.

Net Income: The net income per diluted share rose to $0.18, up from $0.13 year-over-year, while the adjusted net income per diluted share increased to $0.27 from $0.24.

Cash Flow: The company generated cash flows from operations amounting to $116.4 million, compared to $86.1 million in Q3 2024. Free cash flow also saw a significant rise, reaching $110.7 million, up from $84.3 million.

Year-to-Date Performance

For the nine months ending September 30, 2025, Bentley continued its upward trajectory:

Total Revenues: $1,110.2 million, a 10.7% increase year-over-year.

Subscriptions Revenues: $1,020.1 million, up 12.4% from the same period last year.

Operating Income Margin: Increased to 25.6% from 24.0%.

Net Income Per Diluted Share: Rose to $0.67, compared to $0.57 in the previous year.

Free Cash Flow: Increased to $384.0 million, up from $345.2 million.

Executive Insights

Strategic Advancements and AI Focus

Greg Bentley, Executive Chair, expressed satisfaction with the company's execution in Q3, noting the importance of their recent product announcements and strategic developments in Infrastructure AI. He emphasized the potential for these advancements to broaden software consumption and value generation.

CEO Nicholas Cumins highlighted AI as a focal point during the Year in Infrastructure conference, where Bentley engaged with industry leaders about leveraging AI to address the engineering capacity gap. He pointed out that the company unveiled new AI capabilities across its product portfolio, indicating a commitment to a comprehensive approach to Infrastructure AI.

Cumins stated, “Demand for infrastructure engineering remains robust, and project pipelines are full,” reinforcing the company's strong market position.

Financial Outlook

CFO Werner Andre shared an optimistic view on Bentley's financial standing, noting that the solid results align with the company's full-year outlook. With subscription revenue making up 92% of total revenues and strong cash flow performance, Bentley is well-positioned for sustained growth. Andre also mentioned plans to address maturing convertible debt while maintaining capacity for stock repurchases and potential acquisitions.

Upcoming Investor Engagement

Bentley Systems will host a live Zoom video webinar on November 5, 2025, at 8:15 a.m. EST to discuss these results in further detail. Investors are encouraged to participate through the registration link provided in the press release.

Conclusion

With its strong financial performance, focus on AI advancements, and strategic growth initiatives, Bentley Systems is poised to continue its leadership in the infrastructure engineering software market. As demand for innovative solutions in infrastructure grows, Bentley’s ongoing commitment to technological advancement positions it well for future success.

Original press release