Bentley Systems, Incorporated Q4 2025 Earnings Call Summary

Bentley Systems, Incorporated Q4 2025 Earnings Call Summary Moby Intelligence Fri, February 27, 2026 at 5:33 AM GMT+8 3 min read In this article:

BSY -1.32%

Bentley Systems, Incorporated Q4 2025 Earnings Call Summary - Moby

Strategic Performance and AI Positioning

• Sustained low-double-digit ARR growth since 2022, driven by a 94% direct sales motion and high visibility in infrastructure end markets.

• AI is framed as an unprecedented opportunity rather than a risk, specifically through automating design optimization and enhancing asset analytics.

• The deliberate pace of technology adoption in infrastructure is attributed to safety, resilience, and regulatory requirements like professional engineer seals.

• Infrastructure engineering data is largely proprietary and managed within Bentley Infrastructure Cloud, preventing public scraping for AI training and reinforcing Bentley's role as a trusted steward.

• The Resources sector, led by Seequent, remains the fastest-growing segment due to its deep integration into operational workflows rather than cyclical capital projects.

• Strategic shift in business models is anticipated, moving from hourly billing for engineering services to value-based compensation for AI-optimized outcomes.

• Asset Analytics reached a $50 million run rate milestone in 2025, combining digital twin creation with engineering simulation for infrastructure maintenance.

2026 Outlook and Strategic Initiatives

• Projecting 2026 constant currency ARR growth between 10.5% and 12.5%, reflecting momentum in established business and AI-powered initiatives.

• Management committed to approximately 100 basis points of annual operating margin improvement, though reported margins face a 50 basis point FX headwind.

• Free cash flow for 2026 is projected between $500 million and $570 million, impacted by a $30 million cash interest outflow following the retirement of 2026 convertible notes.

• Capital allocation strategy shifts toward scaled-up programmatic acquisitions, with capacity for up to $400 million in annual M&A without increasing leverage.

• Immediate AI priority in design is adoption and exploration of high-value workflows rather than direct monetization, which is expected to follow as workflows mature.

Structural Changes and Risk Factors

• Retired maturing 2026 convertible debt in early 2026, reducing fully diluted share count by approximately 3%.

• Acquired Pointivo and Talon Analytics to extend asset analytics capabilities into automated measurement and utility/telecom inspection workflows.

• China, representing 2% of ARR, continues to face economic and geopolitical headwinds expected to persist through 2026.

• Refined the primary profitability metric to focus on adjusted operating income less operating stock-based compensation to remove M&A-related volatility.

Story Continues

Q&A Session Insights

Monetization of AI and API consumption timelines

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.

• Asset analytics provides immediate revenue, though it may not always be classified as ARR due to non-annual regulatory inspection cycles.

• Bentley intends to incrementally monetize API consumption on a scale significantly larger than current attendant consumption as AI agents automate design iterations.

M&A strategy and leverage targets

• With net debt leverage at a 4-year low of 2.1x, the company is expanding its M&A focus beyond asset analytics to broader programmatic acquisitions.

• Management noted that even $400 million in annual acquisitions would not necessarily increase current leverage levels.

Data stewardship and AI training consent

• Bentley differentiates itself through a data agreement registry where accounts must explicitly consent to or can revoke the use of their data for AI training.

• Management emphasized that users' proprietary design data will not be used to train models for other organizations without authorization.

Recovery in services revenue and Maximo business

• The 15% to 20% projected growth in services is primarily driven by a recovery in the Cohesive Maximo business as clients upgrade to newer software versions.

• Asset analytics acquisitions contribute minimal data acquisition services, as the goal is to minimize manual service components in favor of automated analytics.

One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Terms and Privacy Policy Privacy Dashboard More Info