Financial Data and Key Metrics Changes - For the full year 2025, total revenues reached $1,502 million, growing 11% on a reported basis and 10% in constant currency [31] - Subscription revenues grew 13% reported and 12% in constant currency, now representing 92% of total revenues, up 2% from 2024 [32] - Free cash flow generation for the year totaled $520 million, up 24% year-over-year, with a free cash flow margin of 35% [5][34] Business Line Data and Key Metrics Changes - The E365 initiative now comprises 45% of subscription revenues, an increase from 42% in 2024 [32] - The asset analytics strategy reached a $50 million run rate milestone for asset consumption revenue in 2025, with significant contributions from acquisitions [15] - Perpetual license revenues were flat for both the quarter and the full year, while service revenues declined by 6% reported and 7% in constant currency for the full year [32] Market Data and Key Metrics Changes - The resources sector was the fastest-growing sector, driven by the performance of Seequent, which is expanding into critical resources [25] - The Americas region saw strong growth, supported by favorable macro conditions for infrastructure investment, with the U.S. market remaining healthy [26] - Growth in EMEA was led by the Middle East, with expectations for continued strong performance in 2026 [27] Company Strategy and Development Direction - The company is focusing on embedding AI capabilities into its products and enabling users to build their own AI-driven workflows [19] - Bentley Systems aims to leverage AI to enhance engineering work, automate design tasks, and optimize entire designs [20] - The strategy includes a commitment to data stewardship, ensuring users control their data used for AI training [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, expecting total revenue growth in the range of 11%-13% in constant currency [37] - The macro environment for 2026 is expected to remain consistent with 2025, with strong growth in most sectors except for facilities and commercial buildings [60] - AI is viewed as an opportunity rather than a risk, with expectations that it will transform infrastructure engineering business models [7][18] Other Important Information - The company reduced its net debt leverage to a healthy 2.1x, providing strategic flexibility for future acquisitions [36] - The company retired its 2026 convertible notes, reducing the fully diluted share count by approximately 3% [36] Q&A Session Summary Question: What elements could push constant currency ARR growth closer to the higher end of the range? - AI is contributing to asset analytics growth, but it may take time for this to reflect in ARR due to the nature of inspections not being annual [46] Question: Is the $400 million for programmatic acquisitions consistent with past amounts? - The company is open to expanding M&A opportunities beyond asset analytics now that leverage is at a more optimal level [51] Question: Are you seeing changes in infrastructure budgets or delayed projects? - The macro environment is consistent with 2025, with strong growth in most sectors, but China is experiencing a slowdown [60] Question: How much of the services revenue recovery is driven by asset analytics versus core Maximo business? - The recovery is primarily driven by improvements in the IBM Maximo services business, with asset analytics contributing minimally [64] Question: Can you discuss the new packaging for ProjectWise and its impact on guidance? - The new packaging was released in Q4 and is expected to resonate well with accounts, supporting growth going forward [68] Question: How is the company leveraging its network for AI design? - The company is engaging with accounts to evolve its engineering applications to support AI-driven workflows, focusing on adoption over monetization [71]

Financial Data and Key Metrics Changes - For the full year 2025, total revenues reached $1,502 million, growing 11% on a reported basis and 10% in constant currency [31] - Subscription revenues grew 13% reported and 12% in constant currency, now representing 92% of total revenues, up 2 percentage points from 2024 [31][32] - Free cash flow generation for the year totaled $520 million, up 24% year-over-year, with a free cash flow margin of 35% [5][34] Business Line Data and Key Metrics Changes - The E365 performance remained steady, contributing 45% of subscription revenues, an increase from 42% in 2024 [32] - The asset analytics strategy reached a $50 million run rate milestone for asset consumption revenue in 2025, with significant contributions from recent acquisitions [15] - Perpetual license revenues were essentially flat for both the quarter and the full year, while service revenues declined by 6% reported and 7% in constant currency for the full year [32] Market Data and Key Metrics Changes - The fastest growing sector was resources, driven by the performance of Seequent, which is expanding into critical resources [25] - Public works utilities, the largest sector, delivered strong growth due to sustained global infrastructure investment [26] - The Americas region saw strong growth, supported by stable public funding and large private sector investments in data centers [26][27] Company Strategy and Development Direction - The company is embedding AI capabilities into its products and enabling users to build their own AI-driven workflows, focusing on three key areas: Bentley Open Applications, Bentley Asset Analytics, and Bentley Infrastructure Cloud [19][20] - The strategy emphasizes a principled approach to data stewardship, ensuring users control their data for AI training [22] - The company aims to lead the transition to AI in infrastructure engineering, focusing on adoption rather than immediate monetization [23] Management's Comments on Operating Environment and Future Outlook - The macro environment for 2026 is expected to remain consistent with 2025, with strong growth in most sectors except for facilities and commercial buildings [59] - The company anticipates total revenue growth in the range of 11%-13% for 2026, with subscription revenues expected to grow similarly [37] - Management expressed confidence in the long-term potential of AI to transform infrastructure engineering business models [17][19] Other Important Information - The company reduced its net debt leverage to a healthy 2.1 times, providing strategic flexibility for future acquisitions [36] - The company retired its 2026 convertible notes, reducing the fully diluted share count by approximately 3% [36] Q&A Session Summary Question: What elements could push constant currency ARR growth closer to the higher end of the range? - AI is contributing to asset analytics growth, but it may take time for this to translate into annual recurring revenue [46] Question: Is the $400 million annual acquisition capacity consistent with past messaging? - The company is open to expanding M&A beyond asset analytics now that leverage is down, but $400 million is not a strict target [51] Question: Are digital twins opening up the pipeline for funding projects? - Investments in digital twins are being made easier as the technology underlies many products [56] Question: What is the macro demand environment assumed in guidance? - The macro environment is expected to remain consistent with 2025, with strong growth in most sectors [59] Question: How much of the services revenue recovery is driven by asset analytics? - The recovery is primarily driven by improvements in the IBM Maximo services business, with minimal contributions from asset analytics [63] Question: Is the new packaging for products included in the 2026 guidance? - The new packaging was released in Q4 and is expected to support growth going forward [66]

Financial Data and Key Metrics Changes - For the full year 2025, total revenues reached $1,502 million, growing 11% on a reported basis and 10% in constant currency [32] - Subscription revenues grew 13% reported and 12% in constant currency, now representing 92% of total revenues, up 2 percentage points from 2024 [33] - Free cash flow generation totaled $520 million, up 24% year-over-year, with a free cash flow margin of 35% [36][37] - Adjusted operating income, less stock-based compensation, was $430 million for the year, up 16% with a margin of 28.6% [36] Business Line Data and Key Metrics Changes - E365 performance remained steady, contributing 45% of subscription revenues, an increase from 42% in 2024 [33] - The asset analytics strategy reached a $50 million run rate milestone for asset consumption revenue in 2025 [15] - The industrial sector showed solid growth, while commercial facilities remained relatively flat [27] Market Data and Key Metrics Changes - The Americas region saw strong growth driven by favorable macro conditions for infrastructure investment, with stable public funding ensuring large project backlogs [28] - The Middle East led growth in the EMEA region, with investments shifting towards transportation, utilities, and mining [30] - China continued to be impacted by economic and geopolitical headwinds, representing approximately 2% of ARR [31] Company Strategy and Development Direction - The company aims to leverage AI as an unprecedented opportunity rather than a risk, focusing on enhancing infrastructure engineering through AI integration [5][19] - Bentley Systems is embedding AI capabilities into its products and enabling users to build their own AI-driven workflows [19][24] - The strategy includes a commitment to data stewardship, ensuring users retain control over their data used for AI training [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, projecting total revenue growth in the range of 11%-13% in constant currency [39] - The macro environment for 2026 is expected to remain consistent with 2025, with strong growth in sectors like resources and public utilities [60] - AI is seen as a transformative force for infrastructure engineering, with expectations for increased adoption and monetization over time [71] Other Important Information - The company reduced its net debt leverage to a healthy 2.1 times, providing strategic flexibility for future acquisitions [37] - The company retired its 2026 convertible notes, reducing the fully diluted share count by approximately 3% [37] Q&A Session Summary Question: What elements could push constant currency ARR growth closer to the higher end of the range? - AI is contributing to asset analytics growth, but it may take time for this to reflect in ARR due to the nature of inspections not being annual [46][47] Question: Is the $400 million annual acquisition capacity consistent with past messaging? - The company is open to expanding M&A beyond asset analytics now that leverage is down, but $400 million is not a strict target [51][52] Question: Are digital twins opening up the pipeline for funding projects? - Investments in digital twins are being made easier as the technology underlies many of the company's products [55][56] Question: What is the macro demand environment assumed in guidance? - The macro environment for 2026 is expected to be consistent with 2025, with strong growth in most sectors except for facilities [59][60] Question: How is the services revenue recovery being driven? - The recovery is primarily driven by improvements in the IBM Maximo services business, with asset analytics contributing minimally [63][64] Question: Is the new packaging for products included in the 2026 guidance? - The new packaging was released in Q4 and is expected to support growth going forward [66][67] Question: How is the company leveraging its network for AI design? - The company is engaging with accounts to evolve its engineering applications to support AI-driven workflows, focusing on adoption over monetization [70][72]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $376 million, up 12% year over year on a reported basis and 11% on a constant currency basis [25] - Year-to-date total revenues grew 11% and 10% on a reported and constant currency basis, respectively [25] - Subscription revenues grew 14% year over year for the quarter in reported and 12% in constant currency, representing 92% of total revenues, up 2 percentage points from the same quarter last year [26][25] - Adjusted operating income less stock-based compensation expense was $104 million for the quarter, up 16% year over year with a margin of 27.7%, and year-to-date adjusted operating income was $335 million, up 13% with a margin of 30.2% [30] Business Line Data and Key Metrics Changes - The resources sector was the fastest-growing sector in the quarter, with solid performance in public works/utilities driven by sustained global infrastructure investment [22] - Perpetual license revenues for the quarter were $11 million, essentially flat compared to the prior year, while professional services revenues declined 2% for the quarter [26] - E365 performance remained solid, contributing 300 basis points of ARR growth from new logos, primarily within the SMB segment [22] Market Data and Key Metrics Changes - Asia-Pacific had a strong quarter, followed by the Americas and EMEA, with North America leading growth in the Americas [23] - The Middle East continued to lead EMEA with strong performance, supported by robust investment in transport, water, and energy [24] - China's performance was consistent with expectations, representing only about 2% of total ARR [25] Company Strategy and Development Direction - The company is focusing on AI-driven innovations and partnerships, particularly with Google, to enhance asset analytics and infrastructure management [52][51] - Bentley Systems is investing in AI capabilities to improve engineering productivity and is engaging with customers to evolve its applications to better support AI use cases [46][18] - The company aims to shift from time and materials billing to value-based pricing, leveraging AI to enhance productivity and service delivery [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving annual financial targets, with expectations for stronger ARR growth in Q4 due to significant renewal activity [39][38] - The ongoing government shutdown has had minimal impact on revenues, with funding for awarded projects continuing to flow [40] - Concerns about permitting reform in the U.S. could affect future growth, but the company is well-positioned to benefit from upcoming developments in energy infrastructure [23] Other Important Information - Free cash flow was $111 million for the quarter and $384 million year-to-date, consistent with seasonal expectations [31] - The company fully paid down its senior debt, resulting in a net debt leverage of 2.2 times adjusted EBITDA, down from 2.9 times at the end of 2024 [32] Q&A Session Summary Question: Can you elaborate on the opportunity for better ARR growth and asset analytics? - Management indicated that they only monetize actual consumption and are not yet monetizing API consumption, but expect to see a strong renewal period in Q4 [36][37] Question: What impact has the government shutdown had on your business? - Management noted minimal impact, as direct revenue from the U.S. federal government is less than 1%, and funding for awarded projects continues [39][40] Question: How is the partnership with Google progressing? - The integration of Google Geo data across the portfolio is going well, with exciting opportunities for asset analytics and deeper infrastructure asset understanding [51][52] Question: Are you seeing proactive RFPs from customers around AI capabilities? - It is still early for specific AI capabilities requests, but there is a clear demand for data accessibility for AI purposes [53][54] Question: How do you plan to evolve your product development in light of AI? - The company aims to maintain a close feedback loop with users and iterate on product development to ensure readiness for market scaling [59][60]

Core Insights - Bentley Systems unveiled new infrastructure AI capabilities and an Infrastructure AI co-innovation initiative at its Year in Infrastructure conference, emphasizing the role of trustworthy AI in enhancing engineering productivity and transforming workflows [1][19]. AI Capabilities and Applications - Bentley's OpenSite+ is the first engineering application utilizing generative AI for civil site design, achieving project delivery up to 10 times faster without compromising accuracy [1][12]. - New AI-powered applications for substation design and construction management were introduced, aimed at accelerating AI adoption in project delivery [4][12]. - AI enhancements will be integrated into existing applications like OpenRoads Designer and OpenRail Designer, with a new AI agent for automating drawing annotations set for general availability in November 2025 [6]. Industry Collaboration and Initiatives - The Infrastructure AI Co-Innovation Initiative invites engineering firms and asset owners to collaborate on developing next-generation AI workflows, reflecting the evolving balance between AI-driven and human-driven work [15][16]. - Nearly one-third of submissions for the Going Digital Awards incorporated AI, highlighting the growing integration of AI in infrastructure projects [2][3]. Survey Findings - A global survey revealed that about half of infrastructure professionals are piloting or have implemented AI, focusing on enhancing design productivity and automating documentation processes [3]. Commitment to Data Stewardship - Bentley emphasizes data stewardship, ensuring users retain control over their data used for AI training, with strict governance around AI model training [9][10]. - The introduction of the Data Agreement Registry aims to provide transparency regarding how data is utilized in training AI models [10]. Future Outlook - Bentley's vision for AI is to empower infrastructure engineers rather than replace them, with a focus on real-world context to ensure precision in engineering [2][11]. - The company aims to shape the future of infrastructure through collaboration with users, leveraging AI to optimize decisions and outcomes across the infrastructure lifecycle [14][16].

Core Insights - Bentley Systems announced the launch of Bentley Infrastructure Cloud Connect, a foundational layer designed to enhance connectivity among data and people throughout the infrastructure lifecycle and value chain [1][15] Group 1: Product Features - Bentley Infrastructure Cloud Connect provides a connected data environment, allowing infrastructure professionals to access and manage project and asset data in one place, improving collaboration from design to operations [2][3] - The platform supports over 50 distinct file formats and integrates with various enterprise systems, creating digital twins of assets in their built and natural environments [3][4] - A unified web experience visualizes infrastructure data in full geospatial context, enhanced by Bentley's Cesium 3D capabilities, and includes a mobile app for project connectivity [5][6] Group 2: User Benefits - Early adopters report that the platform has facilitated access to curated views of 72 projects for over 900 external stakeholders from 86 organizations, helping to avoid costly missteps and save millions in potential rework [3] - Connect enables seamless collaboration across infrastructure ecosystems, allowing users to share files, capture feedback, and manage deliverables efficiently [4] Group 3: Future Availability - Bentley Infrastructure Cloud Connect is set to become generally available in December 2025, serving as the entry point to more advanced workflows in ProjectWise and AssetWise [6]