Bentley Systems' Q3 Revenue Jumps 12% on Strong Subscription Growth

TL;DR

**BSY is crushing it with subscription growth and fatter profits, making it a solid buy for long-term gains.**

AI Summary

Bentley Systems Inc. (BSY) reported a strong financial performance for the three and nine months ended September 30, 2025. Total revenues increased by 11.9% to $375.5 million for the three months ended September 30, 2025, up from $335.2 million in the prior year period. For the nine months, total revenues grew by 10.7% to $1.11 billion, compared to $1.00 billion in the same period of 2024. Net income attributable to Bentley Systems surged by 35.5% to $57.4 million for the three months, and by 18.7% to $219.2 million for the nine months ended September 30, 2025. This growth was primarily driven by a 13.5% increase in subscription revenues to $344.3 million for the quarter and a 12.4% rise to $1.02 billion for the nine months. Operating expenses saw an increase, with research and development up 12.4% to $78.8 million for the quarter, and selling and marketing up 11.0% to $72.1 million. The company also significantly improved its cash position, with cash and cash equivalents rising to $165.4 million as of September 30, 2025, from $64.0 million at December 31, 2024. Long-term debt decreased from $1.39 billion to $1.25 billion, indicating a deleveraging effort. Key risks include foreign currency translation adjustments, which resulted in an $8.4 million loss for the quarter, and increased operating expenses.

Why It Matters

Bentley Systems' robust subscription revenue growth, up 13.5% to $344.3 million for the quarter, signals strong customer retention and expanding market penetration in infrastructure software, which is crucial for long-term investor confidence. The significant increase in net income by 35.5% to $57.4 million demonstrates effective cost management and operational leverage, potentially attracting growth-oriented investors. This performance positions BSY favorably against competitors like Autodesk and Trimble, showcasing its ability to capture market share in a competitive industry. Employees benefit from a growing, profitable company, while customers gain from continued investment in R&D, as evidenced by the $78.8 million spent in Q3 2025.

Risk Assessment

Risk Level: medium — The company faces a medium risk level due to significant foreign currency translation adjustments, which resulted in an $8.3 million loss in other comprehensive income for the three months ended September 30, 2025. Additionally, while overall debt decreased, the company still carries $1.25 billion in long-term debt, which could be a burden if interest rates rise or cash flow tightens. Operating expenses, particularly R&D and selling & marketing, are increasing, which could pressure margins if revenue growth slows.

Analyst Insight

Investors should consider BSY a strong contender for a long-term growth portfolio, given its consistent subscription revenue growth and improved profitability. Monitor foreign exchange fluctuations and their impact on comprehensive income, but the core business performance suggests continued strength. The reduction in long-term debt is a positive sign, indicating prudent financial management.

Financial Highlights

debt To Equity

1.05

revenue

$375.5M

total Assets

$3.46B

total Debt

$1.25B

net Income

$57.4M

cash Position

$165.4M

revenue Growth

+11.9%

Revenue Breakdown

Key Numbers

• $375.5M — Total Revenues (Q3 2025) (Increased 11.9% from $335.2M in Q3 2024)
• $1.11B — Total Revenues (9M 2025) (Increased 10.7% from $1.00B in 9M 2024)
• $57.4M — Net Income (Q3 2025) (Increased 35.5% from $42.3M in Q3 2024)
• $219.2M — Net Income (9M 2025) (Increased 18.7% from $184.7M in 9M 2024)
• $344.3M — Subscription Revenues (Q3 2025) (Increased 13.5% from $303.2M in Q3 2024)
• $165.4M — Cash and Cash Equivalents (Increased from $64.0M at Dec 31, 2024)
• $1.25B — Long-term Debt (Decreased from $1.39B at Dec 31, 2024)
• $8.4M — Foreign Currency Translation Loss (Q3 2025) (Impacted other comprehensive income)

Key Players & Entities

• BENTLEY SYSTEMS, INCORPORATED (company) — Registrant for the 10-Q filing
• SEC (regulator) — United States Securities and Exchange Commission
• $375,549 (dollar_amount) — Total revenues for the three months ended September 30, 2025
• $1,110,197 (dollar_amount) — Total revenues for the nine months ended September 30, 2025
• $57,373 (dollar_amount) — Net income attributable to Bentley Systems for the three months ended September 30, 2025
• $219,223 (dollar_amount) — Net income attributable to Bentley Systems for the nine months ended September 30, 2025
• $344,293 (dollar_amount) — Subscription revenues for the three months ended September 30, 2025
• $1,020,063 (dollar_amount) — Subscription revenues for the nine months ended September 30, 2025
• $165,411 (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $1,247,378 (dollar_amount) — Long-term debt as of September 30, 2025

FAQ

Risk Factors

• Foreign Currency Fluctuations [medium — financial]: The company experienced an $8.4 million loss due to foreign currency translation adjustments in the third quarter of 2025. This can negatively impact reported earnings and comprehensive income, especially given the global nature of its operations.
• Increased Operating Expenses [medium — operational]: Research and development expenses increased by 12.4% to $78.8 million, and selling and marketing expenses rose by 11.0% to $72.1 million for the quarter. While indicative of investment, sustained high growth in these areas could pressure margins if not matched by revenue growth.
• Competition in Software Market [medium — market]: The software industry, particularly in engineering and construction, is highly competitive. Competitors may offer similar or superior products, potentially impacting BSY's market share and pricing power.
• Data Privacy and Security [medium — regulatory]: As a software provider, BSY is subject to evolving data privacy regulations globally. Breaches or non-compliance could lead to significant fines, reputational damage, and loss of customer trust.
• Debt Management [medium — financial]: While long-term debt decreased to $1.25 billion from $1.39 billion, it remains a significant liability. Interest rate fluctuations and the company's ability to service this debt are ongoing considerations.

Industry Context

Bentley Systems operates in the engineering and infrastructure software market, a sector characterized by long sales cycles and a shift towards subscription-based models. The industry is driven by digital transformation initiatives, BIM (Building Information Modeling), and the increasing demand for cloud-based solutions. Key competitors include Autodesk, Dassault Systèmes, and Siemens PLM Software, all vying for market share through product innovation and strategic acquisitions.

Regulatory Implications

Bentley Systems must navigate a complex web of global regulations, including data privacy laws (like GDPR and CCPA) and cybersecurity standards. Compliance is critical to avoid penalties and maintain customer trust. The company's financial reporting is subject to SEC oversight and GAAP, requiring accurate and transparent disclosures.

What Investors Should Do

1. Monitor subscription revenue growth trajectory.
2. Analyze operating expense trends relative to revenue growth.
3. Evaluate the impact of foreign currency fluctuations.
4. Track debt reduction progress and leverage ratios.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for strong revenue and net income growth, with increased cash and reduced debt.
• 2024-12-31: End of Fiscal Year 2024 — Baseline for comparison of cash position and long-term debt reduction.

Glossary

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses on certain investments, foreign currency translation adjustments, and other items that are not included in net income. (Reflects the $8.4 million foreign currency translation loss for the quarter.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (Represents a significant portion of BSY's assets ($2.41 billion), indicating past acquisitions.)

Deferred revenues

Revenue that has been received by the company but not yet earned, typically from multi-year software subscriptions or service contracts. (A substantial liability ($234.8 million current, $17.9 million long-term) representing future revenue streams.)

Cloud Services Subscription deposits

Payments received from customers for cloud-based services that are recognized as revenue over the service period. (A significant current liability ($427.8 million), indicating strong demand for cloud offerings.)

ACDP (Accelerated Commercial Development Program)

Bentley's internal program for capitalizing certain software development costs once technological feasibility is established. (Impacts the balance sheet (Other assets) and cost of revenues through amortization.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Bentley Systems has demonstrated robust top-line growth, with total revenues increasing by 11.9% in Q3 2025 and 10.7% year-to-date. Net income has seen even more significant expansion, up 35.5% for the quarter, indicating improved profitability. The company has also strengthened its balance sheet by substantially increasing its cash reserves to $165.4 million and reducing long-term debt by $140.7 million. New risks or significant changes in existing risks were not explicitly detailed in the provided excerpt, but the ongoing increase in operating expenses and foreign currency impacts remain points of attention.

Key Financial Figures

• $0.01 — which registered Class B Common Stock, $0.01 Par Value BSY The Nasdaq Stock Market L

Filing Documents

• bsy-20250930.htm (10-Q) — 1924KB
• a25q3exhibit311.htm (EX-31.1) — 10KB
• a25q3exhibit312.htm (EX-31.2) — 10KB
• a25q3exhibit32.htm (EX-32) — 6KB
• 0001031308-25-000015.txt ( ) — 10330KB
• bsy-20250930.xsd (EX-101.SCH) — 71KB
• bsy-20250930_cal.xml (EX-101.CAL) — 106KB
• bsy-20250930_def.xml (EX-101.DEF) — 451KB
• bsy-20250930_lab.xml (EX-101.LAB) — 828KB
• bsy-20250930_pre.xml (EX-101.PRE) — 651KB
• bsy-20250930_htm.xml (XML) — 1530KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Consolidated Financial Statements

Item 1. Unaudited Consolidated Financial Statements Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Equity 7 Consolidated Statements of Cash Flows 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 47

Controls and Procedures

Item 4. Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 50 SIGNATURE 51 2 Table of Contents EXPLANATORY NOTE This Quarterly Report on Form 10Q is for the three and nine months ended September 30, 2025. This Quarterly Report on Form 10Q modifies and supersedes documents filed before it. The United States ("U.S.") Securities and Exchange Commission ("SEC") allows us to "incorporate by reference" information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report on Form 10Q. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report on Form 10Q. Unless indicated otherwise, throughout this Quarterly Report on Form 10Q, we refer to Bentley Systems, Incorporated and its consolidated subsidiaries, as "Bentley Systems," "Bentley," the "Company," "we," "us," and "our." This Quarterly Report on Form 10Q contains trademarks, service marks, brands, or product names owned by us, as well as those owned by others. Numerical information in this report is presented on a rounded basis using actual amounts. Minor differences in totals and percentage calculations may exist due to rounding. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10Q includes forwardlooking statements. All statements contained in this Quarterly Report on Form 10Q other than statements of historical facts, including statements regarding our future results of operations and financial condition, our business strategy, and plans and our objectives for future operations, are forwardlooking statements. The words "believe," "may," "will," "could," "would," "seeks," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions, as well as statements regarding our focus for the future, are intended to identify forwardlooking statements.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Consolidated Financial Statements

Item 1. Unaudited Consolidated Financial Statements BENTLEY SYSTEMS, INCORPORATED Consolidated Balance Sheets (in thousands, except share and per share data) (unaudited) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 165,411 $ 64,009 Accounts receivable 293,942 322,862 Allowance for doubtful accounts ( 7,776 ) ( 8,395 ) Prepaid income taxes 17,337 13,066 Prepaid and other current assets 57,916 50,531 Total current assets 526,830 442,073 Property and equipment, net 35,176 33,798 Operating lease right-of-use assets 31,099 32,303 Intangible assets, net 181,022 213,959 Goodwill 2,410,308 2,367,179 Investments 27,690 25,764 Deferred income taxes 176,376 198,286 Other assets 75,947 86,445 Total assets $ 3,464,448 $ 3,399,807 Liabilities and Equity Current liabilities: Accounts payable $ 17,841 $ 16,479 Accruals and other current liabilities 158,299 169,522 Cloud Services Subscription deposits 427,750 366,895 Deferred revenues 234,824 245,729 Operating lease liabilities 11,797 11,656 Income taxes payable 9,944 4,053 Current portion of long-term debt — — Total current liabilities 860,455 814,334 Long-term debt 1,247,378 1,388,088 Deferred compensation plan liabilities 104,857 96,684 Long-term operating lease liabilities 24,072 26,894 Deferred revenues 17,904 16,641 Deferred income taxes 9,350 8,612 Income taxes payable — 3,615 Other liabilities 5,082 3,819 Total liabilities 2,269,098 2,358,687 Commitments and contingencies (Note 18) Equity: Preferred stock, $ 0.01 par value, authorized 100,000,000 shares; none issued or outstanding as of September 30, 2025 and December 31, 2024 — — Class A common stock, $ 0.01 par value, authorized 100,000,000 shares; issued and outstanding 11,537,627 shares as of September 30, 2025 and December 31, 2024 115 115 Class B common stock, $ 0.01 par value, authorized 1,800,000,000 shares; issued and outstanding 291,920,279 and 290,439,703 shares as of Septemb

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (in thousands, except share and per share data) (unaudited) Note 1: Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. The unaudited consolidated financial statements and accompanying notes have been prepared in U.S. dollars, and in accordance with U.S. generally accepted accounting principles ("GAAP") and the rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2024 Annual Report on Form 10 K. In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal, recurring and non-recurring adjustments) that were considered necessary for the fair statement of the Company's financial position, results of operations, and cash flows as of the dates and for the periods indicated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates. The December 31, 2024 consolidated balance sheet included herein is derived from the Company's audited consolidated financial statements. Reclassifications Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Accounting Policies Software Development Costs — Under its Accelerated Commercial Development Program ("ACDP") (the Company's structured approach to an inhouse business incubator function), the Company capitalizes certain deve

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