Summary
Bentley Systems reported first-quarter fiscal 2025 total revenues of $370.5 million, up 9.7% from the prior-year quarter and up 10.9% on a constant currency basis. Subscriptions revenues, the largest part of the business, rose 11.5%, or 12.7% on a constant currency basis. Gross margin was 82.3%, up 0.6 percentage points. Operating income reached $115.2 million, up 25.3%, and operating margin was 31.1%, up 3.9 percentage points. Net income attributable to Bentley Systems was $91.4 million, up 30.0%, and GAAP diluted EPS was $0.28, up 27.3%.
The recurring side of the model showed steady momentum. Annualized recurring revenues were $1,319.3 million as of March 31, 2025, compared with $1,186.5 million as of March 31, 2024, a constant currency ARR growth rate of 12%. The last twelve-month recurring revenues dollar-based net retention rate was 110%, compared with 108% a year earlier. Account retention rate held at 99%. Recurring revenues represented 92% of total revenues for the twelve months ended March 31, 2025. ARR from consumption-based subscriptions with measurement durations of less than one year was 50% of total ARR, and the E365 subscription offering represented 45%. Non-GAAP adjusted operating income less stock-based compensation expense margin was 34.1%, and adjusted EPS was $0.35. Management said subscriptions revenue growth came from existing accounts and a 3% contribution from new accounts, mostly small and medium-sized accounts. Growth was led by engineering applications, followed by geoprofessional applications and Bentley Infrastructure Cloud. Revenue growth was broad by region, with increases in the Americas, EMEA, and APAC.
Cash generation remained a bright spot. Operating cash flow was $219.4 million, up 7.0% from the prior-year quarter. Free cash flow, a non-GAAP measure, was $216.4 million, compared with $201.4 million. Adjusted EBITDA, another non-GAAP measure, was $148.1 million, compared with $135.9 million. Capital expenditures were $3.0 million, down 15.4%. Deferred revenue was $244.1 million, up 0.8%, and remaining performance obligations were $260.7 million, up 1.3%. The company described its balance sheet strength and expected cash flow generation as enough to fund its dividend, share repurchases to offset dilution from stock-based compensation, growth initiatives including potential acquisitions, and the refinancing of next year's maturing convertible debt with available credit capacity.
Management framed the quarter as consistent with expectations. CEO Nicholas Cumins said the results position Bentley well for its financial outlook for the year. CFO Werner Andre said the company continues to execute toward its financial outlook range for the full fiscal year, while acknowledging current global economic uncertainties. Executives pointed to a critical need for better and more resilient infrastructure, a continued shortage of engineers, and backlogs extending further out as supportive demand fundamentals. They also said accounts remain cautiously optimistic following tariff announcements, as countries continue to prioritize infrastructure funding.
Risks remain visible. Bentley cited adverse changes in global economic or political conditions, the impact of tariffs and related policies, sanctions and embargoes, and regulatory and political uncertainties in the countries where it operates. China remains a specific concern because of geopolitical challenges, obstacles to cloud-deployed software, and a local preference for license sales over subscriptions. Foreign currency moves affect reported results, and the company does not hedge exposure beyond natural hedges. Other named risks include competition, product quality and development, capital markets access, interest rate changes, acquisition integration, personnel retention, and succession planning. The company said these and other factors could cause actual results to differ materially from its forward-looking statements. Investors will watch whether the strong margin and cash flow trends persist as macro uncertainty remains elevated.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $370.5M | $349.8M | +5.9% | $337.8M | +9.7% |
| Gross profit | $304.9M | $281.9M | +8.1% | $275.9M | +10.5% |
| Gross margin | 82.3% | 80.6% | +1.7 pp | 81.7% | +0.6 pp |
| Research & development | $72.5M | $77.1M | -6.0% | $68.4M | +6.0% |
| Sales & marketing | $63.1M | $78.7M | -19.9% | $54.4M | +15.9% |
| General & administrative | $47.2M | $57.7M | -18.1% | $46.5M | +1.6% |
| Total operating expenses | $189.7M | $220.5M | -14.0% | $184.0M | +3.1% |
| Operating income (loss) | $115.2M | $61.4M | +87.6% | $91.9M | +25.3% |
| Operating margin | 31.1% | 17.6% | +13.5 pp | 27.2% | +3.9 pp |
| Net income (loss) | $91.3M | $49.7M | +83.6% | $70.3M | +29.9% |
| Net margin | 24.6% | 14.2% | +10.4 pp | 20.8% | +3.8 pp |
| Diluted EPS | $0.28 | $0.15 | +$0.13 | $0.22 | +$0.06 |
| Net retention rate | 110.0% | — | — | 108.0% | +2.0 pp |
Risks
The filing states that future results in China remain uncertain because of continued geopolitical challenges, obstacles there to cloud-deployed software, and the financial timing impact of the preference there for license sales rather than subscriptions. APAC growth was partly offset by declines of our subscriptions revenues in China for the three months ended March 31, 2025.
Because the company operates in and derives revenue from geographies around the world, MD&A states it will continue to monitor the impact of tariffs and other trade policies on its business, on the businesses of its accounts, and on its financial condition, results of operations, and cash flows.
Services revenues were $17,432 for the three months ended March 31, 2025, down 17.6% (down 16.3% on a constant currency basis) versus the prior-year quarter, driven by weaker business performance primarily within Asset Performance Services, while headcount-related cost reductions in cost of services partly offset the decline.
Other than a natural hedge from matching revenues and expenses in the same currencies, the company does not hedge foreign currency exposure, and the filing notes future results will be affected by exchange rate changes. Total revenue growth was 9.7% as reported versus 10.9% on a constant currency basis for the three months ended March 31, 2025.
Headcount-related costs increased across cost of subscriptions and licenses, research and development, selling and marketing, and general and administrative for the three months ended March 31, 2025, mainly from increases in headcount and in annual and other compensation costs, which drove selling and marketing expenses up 15.9% in the quarter.
The 2026 Notes outstanding principal of $677,830 as of March 31, 2025 must be repaid at maturity in January 2026 unless converted, and they are classified as long-term debt based on the company's current ability and intent to refinance through available Credit Facility capacity.
MD&A discloses that ARR from annualized recurring contracts with consumption measurement durations under one year was 50% of total ARR as of March 31, 2025, up from 48% a year earlier, with the E365 subscription offering representing 45% of total ARR versus 42% as of March 31, 2024, concentrating the metric in a small number of offerings.
SaaS KPIs
All quarters →Last Twelve-Months Recurring Revenues
Adjusted EBITDA
Constant Currency ARR Growth Rate
Last Twelve-Month Recurring Revenues Dollar-Based Net Retention Rate
Free Cash Flow
AOI less SBC Margin
Adjusted Operating Income
Summary, forecast, risks and KPIs are extracted from BENTLEY SYSTEMS INC's SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.