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1. Company Snapshot

1.a. Company Description

Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.The company offers open modeling and open simulation applications for infrastructure design integration, which include MicroStation, OpenRoads, OpenRail, OpenPlant, OpenBuildings, OpenBridge, OpenSite, OpenFlows, STAAD and RAM, SACS, MOSES, AutoPIPE, SITEOPS, CUBE, DYNAMEQ, EMME, and LEGION; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including Leapfrog, AGS Workbench, GeoStudio, Imago, MX Deposit, Oasis montaj, PLAXIS, and OpenGround.It also provides project delivery systems that support collaboration, work-sharing, and 4D construction modeling for infrastructure project delivery enterprises, such as ProjectWise, ProjectWise Design Review Service, and SYNCHRO; and asset and network performance systems, such as AssetWise ALIM, AssetWise Asset Reliability, AssetWise Enterprise Interoperability, AssetWise 4D Analytics, AssetWise Linear, and Seequent Central.


In addition, it offers industry solutions comprising AssetWise Linear SUPERLOAD, AssetWise Linear Analytics, AssetWise Inspections, ContextCapture, OpenCities, OpenUtilities, OpenTower, OpenWindPower, Power Line, SPIDA, OrbitGT, sensemetrics, PlantSight, and WaterSight.The company serves civil, structural, geotechnical, geoscience subsurface engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers.Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.

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1.b. Last Insights on BSY

Bentley Systems' recent performance was negatively impacted by reduced stakes from institutional investors, including Copeland Capital Management LLC, which lessened its position by 4.3%, and Fisher Asset Management LLC, which cut its stake by 12.3%. However, the company's Q4 2025 earnings report revealed a 28.6% YoY growth in EPS, driven by higher enterprise subscription share and increased small-to-midsized business penetration. With a "Moderate Buy" consensus rating from analysts, according to Marketbeat, and a better-than-expected FY26 guidance, the company's outlook appears positive.

1.c. Company Highlights

2. Bentley Systems' Q4 and Full Year 2025 Results Exceed Expectations

Bentley Systems reported total revenues of $1.502 billion for the full year 2025, growing 11% on a reported basis and 10% in constant currency. Subscription revenues grew 13% reported and 12% in constant currency. The company's adjusted operating income grew faster than revenue, and free cash flow margin reached 35%, with truly free cash flow margin, less SBC, at 30%. EPS came in at $0.27, in line with estimates.

Publication Date: Mar -01

📋 Highlights
  • 2025 Free Cash Flow Margins:: Achieved 35% free cash flow margin, with truly free cash flow (less SBC) at 30%, driven by operational efficiency.
  • 2026 Revenue Guidance:: Projects constant currency revenue growth of 11–13%, with subscription revenue expected to grow 11–13% annually.
  • Asset Analytics Milestone:: Reached $50 million annualized run rate for asset consumption revenue in 2025, bolstered by acquisitions (Pointivo, Talon).
  • Q4 ARR Growth:: Annual Recurring Revenue increased 11.5% YoY, with net revenue retention stable at 109% and new SME logos contributing 300 bps ARR growth.
  • Programmatic Acquisitions:: Plans to allocate $400 million annually for strategic acquisitions post-deleveraging, with leverage reduced to a "healthy level."

Segment Performance

The company's Q4 ARR increased 11.5% year-over-year, with net revenue retention stable at 109%. The Resources sector was the fastest-growing sector, driven by Seequent's resilience in the mining sector. The Public Works Utilities sector, the largest, delivered strong growth, driven by sustained global infrastructure investment. The Americas saw strong growth, driven by a favorable macro backdrop for infrastructure investment.

AI-Driven Growth Opportunities

The company is investing in AI across its portfolio, with three key areas: leveraging AI to enhance engineers' work, Bentley Asset Analytics using AI to process imagery and detect features on assets, and Bentley Infrastructure Cloud serving as the data foundation for AI. The asset analytics strategy reached a $50 million run rate milestone for asset consumption revenue, with OpenTower iQ and Blyncsy having a breakthrough year. As Greg Bentley noted, "AI is not a risk to Bentley Systems but an unprecedented opportunity, given the company's distinctive fundamentals in infrastructure engineering."

2026 Financial Outlook

The company expects total revenues constant currency growth to be in the range of 11% to 13%, with subscription revenues expected to grow between 11% and 13% in constant currency. Adjusted operating income less operating stock-based compensation expense is projected to be in the range of $495 million to $510 million. Free cash flow is projected to be in the range of $500 million to $570 million, representing a healthy increase.

Valuation and Growth Prospects

With a P/E Ratio of 41.39 and an EV/EBITDA of 24.84, the company's valuation multiples suggest a premium for its growth prospects. The company's ROE of 23.93% and ROIC of 8.43% indicate strong profitability. Analysts estimate next year's revenue growth at 11.0%, which is in line with the company's guidance. The company's ability to drive growth through AI-driven initiatives and its asset analytics platform positions it well for long-term success.

3. NewsRoom

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Bentley Systems: Positive On Q4 Outperformance And Above-Consensus Guide

Feb -27

Source: seekingalpha.com

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Bentley Systems, Incorporated (BSY) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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Compared to Estimates, Bentley Systems (BSY) Q4 Earnings: A Look at Key Metrics

Feb -26

Source: zacks.com

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Bentley Systems, Incorporated (BSY) Q4 Earnings Meet Estimates

Feb -26

Source: zacks.com

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Bentley Systems Announces Fourth Quarter and Full Year 2025 Results and 2026 Financial Outlook

Feb -26

Source: businesswire.com

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What Analyst Projections for Key Metrics Reveal About Bentley Systems (BSY) Q4 Earnings

Feb -24

Source: zacks.com

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Mairs and Power's Strategic Moves: NVIDIA Corp Sees a -1.1% Portfolio Impact

Feb -17

Source: gurufocus.com

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Alabama Department of Transportation Enhances Performance-Based Budgeting with Bentley Systems' AI-Powered Blyncsy Solution

Feb -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.81%)

6. Segments

Enterprise Subscriptions

Expected Growth: 12%

Strong demand for infrastructure development, increasing adoption of digital twins, and growing need for data-driven insights drive Bentley Systems' Enterprise Subscriptions growth. The company's expanding product portfolio, strategic acquisitions, and partnerships also contribute to its 12% growth. Additionally, the shift towards subscription-based models and the rising importance of infrastructure resilience and sustainability further support this growth.

Term License Subscriptions

Expected Growth: 10%

Bentley Systems' Term License Subscriptions growth is driven by increasing adoption of infrastructure engineering software, rising demand for digital twins, and growing need for construction and engineering firms to digitize their workflows. Additionally, the company's strategic acquisitions and expanding partner network contribute to its growth.

SELECT Subscriptions

Expected Growth: 11%

Bentley Systems' 11% growth in Subscriptions is driven by increasing adoption of digital twins in infrastructure projects, growing demand for cloud-based collaboration tools, and expansion into new markets such as China and India. Additionally, the company's strategic acquisitions and investments in emerging technologies like AI and IoT are contributing to its growth momentum.

Services - Other

Expected Growth: 9%

Bentley Systems' Services - Other segment growth is driven by increasing adoption of digital twin technology, growing demand for infrastructure development, and rising need for asset performance management. Additionally, the company's expanding presence in emerging markets and strategic partnerships are contributing to the 9% growth rate.

Perpetual Licenses

Expected Growth: 8%

Strong demand for infrastructure development, increasing adoption of digital twins, and growing need for efficient project delivery drive growth in Perpetual Licenses from Bentley Systems. Additionally, the company's strategic acquisitions, expanding partner network, and continuous innovation in software solutions contribute to the 8% growth rate.

Services - Recurring

Expected Growth: 13%

Bentley Systems' Services - Recurring segment growth of 13% is driven by increasing adoption of subscription-based models, expansion of its SaaS offerings, and growing demand for digital twin solutions in infrastructure and construction industries, resulting in higher recurring revenue and improved customer retention.

7. Detailed Products

MicroStation

A CAD software for 2D and 3D design and drafting, used for architecture, engineering, and construction projects.

ProjectWise

A project collaboration and management software for infrastructure projects, enabling teams to work together and share information.

AssetWise

An asset performance management software for industries such as oil and gas, transportation, and utilities.

OpenRoads

A civil engineering software for designing and analyzing roads, highways, and other transportation infrastructure.

OpenBridge

A bridge design and analysis software for engineers and architects.

OpenBuildings

A building information modeling (BIM) software for architects, engineers, and contractors.

OpenSite

A site design and land development software for architects, engineers, and surveyors.

LEGION

A pedestrian simulation software for analyzing and optimizing pedestrian traffic flow.

iTwin

A digital twin software for creating and managing digital replicas of physical infrastructure assets.

8. Bentley Systems, Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Bentley Systems, Incorporated has a diverse range of products and services, making it difficult for substitutes to emerge. However, the increasing adoption of cloud-based solutions and open-source alternatives poses a moderate threat.

Bargaining Power Of Customers

Bentley Systems, Incorporated has a large and diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often critical to customers' operations, making it difficult for them to negotiate prices or terms.

Bargaining Power Of Suppliers

Bentley Systems, Incorporated has a diverse supply chain and is not heavily dependent on a single supplier. The company's strong financial position and long-term contracts with suppliers also reduce the bargaining power of suppliers.

Threat Of New Entrants

The software industry has high barriers to entry, including significant research and development costs, complex technology, and established customer relationships. These barriers make it difficult for new entrants to compete with Bentley Systems, Incorporated.

Intensity Of Rivalry

The software industry is highly competitive, with many established players and new entrants vying for market share. Bentley Systems, Incorporated faces intense competition from companies like Autodesk, Trimble, and ESRI, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.53%
Debt Cost 3.95%
Equity Weight 36.47%
Equity Cost 9.34%
WACC 5.91%
Leverage 174.22%

11. Quality Control: Bentley Systems, Incorporated passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.87$

Current Price

38.87$

Potential

-0.00%

Expected Cash-Flows