Bentley Systems, Incorporated (BSY): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of infrastructure software, trying to map out how a company like Bentley Systems, Incorporated (BSY) actually prints money with its digital twin focus. Honestly, it's a masterclass in recurring revenue, built on deep Research and Development-they're projecting over $150 million in that area for 2025 alone. We see a business heavily leaning on subscriptions, driving an Annualized Recurring Revenue (ARR) base to $1.405 billion by Q3 2025, with total revenues expected between $1,461 million and $1,490 million for the year. If you want to see exactly how they structure partnerships, lock in those big owner-operators, and maintain that impressive 28.5% Adjusted Operating Income margin, check out the full nine-block breakdown below.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Key Partnerships

You're looking at the structure that helps Bentley Systems, Incorporated (BSY) scale its digital twin and AI offerings across the massive global infrastructure market. The partnerships here aren't just nice-to-haves; they are essential conduits for adoption and data flow.

Strategic Alliances with Global Infrastructure Firms

Bentley Systems, Incorporated solidifies its position by embedding its technology directly within major project execution workflows. For instance, Afcons Infrastructure Limited named Bentley Systems its Innovation Partner of the Year for 2025 in September 2025.

This recognition followed a strategic enterprise agreement that gave Afcons' teams access to over 250 Bentley engineering software tools. A key deliverable was the deployment of ProjectWise, part of Bentley Infrastructure Cloud, as a Common Data Environment (CDE) compliant with ISO 19650 standards. Furthermore, Bentley's SYNCHRO 4D software supported the Greater Malé Connectivity Project (GMCP) pilot, tracking real-time progress in 3D models.

Global Network of Sales and Channel Partners

The distribution strength relies heavily on a carefully selected, authorized channel network, often focusing on small and medium-size organizations. The success of this network is measured at events like the 2025 Sales Partner Summit, held from October 28 to 30 in Berlin, Germany.

The Partner of the Year for 2025 was CAD Journey, recognized for exceptional growth and boosting solution adoption across North America. To give you a sense of scale, it's estimated that two-thirds of companies on the U.S. General Services Administration (GSA) schedule use Bentley Systems' software.

Here's a snapshot of the partner ecosystem's focus areas, based on product listings:

Software Product	Partner Count Reference
MicroStation	249
GEOSTUDIO	123
LumenRT	119
iTwin Capture	184
AutoPIPE	112

Long-term partners, like Archway Systems Inc., which has a 30-year history with Bentley Systems, Incorporated, have expanded their reach, gaining North American Channel Partner rights effective May 1, 2022.

Technology Integration with AI/Analytics Companies

Bentley Systems, Incorporated is actively integrating external AI and geospatial capabilities to enhance its digital twin offerings. A major step was the partnership with Google, announced in October 2024, to integrate Google's high-quality geospatial content and AI tools like Vertex AI.

New capabilities leveraging Imagery Insights from Google Maps Platform were unveiled at Google Cloud Next 2025 on April 9, 2025. The rollout of new AI features across the portfolio is aggressive:

• A new AI agent automating drawing annotation is set for general availability in November 2025.
• ProjectWise AI capabilities are slated for early access in December 2025.
• OpenUtilities Substation+ is expected in November 2025 via an early access program.
• SYNCHRO+, the AI-powered construction application, begins early access in December 2025.

Infrastructure AI Co-Innovation Initiative

To shape the next wave of AI workflows, Bentley Systems announced the Infrastructure AI Co-Innovation Initiative at its Year in Infrastructure conference on October 15, 2025. This program invites engineering firms and asset owners to collaborate on evolving Bentley APIs and commercial models.

This push aligns with industry trends; a global survey conducted with Pinsent Masons, Mott MacDonald, and Turner & Townsend found that about half of infrastructure professionals are already piloting or implementing AI. The commitment is visible in the Going Digital Awards, where nearly one-third of submissions incorporated AI.

Cloud Platform Partnerships for Hosting and Scaling Digital Twin Solutions

The foundation for connected data is the Bentley Infrastructure Cloud, which saw a major update with the announcement of Bentley Infrastructure Cloud Connect on October 15, 2025. This new layer is scheduled for general availability in December 2025.

Cloud Connect leverages the iTwin platform to ingest data from over 50 distinct file formats and integrate with enterprise systems. This connected environment is already seeing high utilization by early adopters like WSB, which has curated views of 72 projects accessible to over 900 external stakeholders from 86 organizations. The focus on recurring revenue streams is clear, as subscription revenues represented 90% of total revenues in Q4 2024, with the 2025 outlook projecting subscription revenue growth of 10.5% to 12.5%.

For context on the scale these partnerships support, the 2025 GAAP revenue projection is between $1.461 billion and $1.490 billion.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Key Activities

You're looking at the core engine driving Bentley Systems, Incorporated (BSY) right now, late in 2025. It's all about continuous, heavy investment in the digital foundation of infrastructure engineering.

Research and development (R&D) of infrastructure engineering software remains a top priority. For the twelve months ending September 30, 2025, R&D expenses hit $0.304B, which is a 10.28% increase year-over-year. This spending fuels the next generation of tools.

The focus on developing and integrating AI/Generative AI capabilities is clear, especially with the rollout of tools like OpenSite+. As of late 2025, OpenSite+ for civil site design is in an early-adoption program, using AI-assisted workflows to query data and automate work like generating design scripts for miles of roadway. Also, AI-powered search capabilities have been added to ProjectWise, part of the Bentley Infrastructure Cloud, designed to give users instant, concise summaries without opening files. The company also unveiled OpenUtilities Substation+ and SYNCHRO+, all built on digital twins and powered by AI. A recent survey indicated that about half of infrastructure professionals are already piloting or implementing AI.

Managing the subscription-based licensing and recurring revenue model is central to the financial structure. Subscriptions revenues for the third quarter of 2025 were $344.3 million, representing 92% of total revenues for that quarter. The Annualized Recurring Revenues (ARR) stood at $1,405.2 million as of September 30, 2025, showing a growth rate of 10.5%. The dollar-based net retention rate for the last twelve months was 109%. This model is definitely the bedrock of their current valuation.

Here's a quick look at the recent top-line performance driving this activity:

Metric	Q3 2025 Amount	Nine Months Ended Sept 30, 2025 Amount	Year-over-Year Growth (Q3 Constant Currency)
Total Revenues	$375.5 million	$1,110.2 million	10.6%
Subscriptions Revenues	$344.3 million	$1,020.1 million	12.1%
Operating Income Margin	22.5%	25.6%	Up from 20.5% (Q3 last year)

Global sales, marketing, and professional services delivery supports this software deployment worldwide. Total revenues for the nine months ended September 30, 2025, reached $1,110.2 million, a 10.7% increase year-over-year. For the full year 2024, total revenue was reported at $1.4 billion, marking a 10.1% increase over 2023. The 2025 outlook projects Services revenues growth to be approximately flat in constant currency.

Maintaining and enhancing the core technology platforms involves deep integration across the portfolio. The new foundational layer, Bentley Infrastructure Cloud Connect, was announced to provide a unified experience for professionals interacting with project and asset data. Furthermore, the new generation of AI-powered applications, like OpenSite+, are designed to write data directly to a Bentley iModel, ensuring a direct digital thread. You can see this commitment in the platform updates:

• AI-enabled applications built on digital twins, fully connected to Bentley Infrastructure Cloud.
• New AI features confirmed for OpenRoads Designer and OpenRail Designer.
• The company is exploring how its APIs can evolve to better support AI use cases.

Finance: draft 13-week cash view by Friday.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Key Resources

You're hiring before product-market fit... wait, Bentley Systems, Incorporated is well past that stage, and their Key Resources are the bedrock supporting their market position as of late 2025. Honestly, these assets are what keep the competition at bay.

The core of their offering is a deeply entrenched Proprietary software portfolio. This isn't just a list of products; it's the infrastructure backbone for global engineering firms and owner-operators. You see the mainstays:

• MicroStation: Core CAD/BIM design and modeling.
• ProjectWise: Project delivery and collaboration platform.
• AssetWise: Asset and network performance management.
• Open-series: Specialized applications for various engineering disciplines.

This proprietary stack is heavily protected by Intellectual property and patents in digital twin and BIM technology. For instance, Bentley Systems, Incorporated secured a Grant Patent on July 1, 2025, for Crack detection, assessment and visualization using deep learning with 3D mesh model. Also, a patent granted on August 5, 2025, covers Techniques for providing proprietary solid modeling to an open-source infrastructure modeling platform. Their digital twin focus is operationalized through the iTwin platform, which leverages open standards like 3D Tiles and Cesium, which Bentley Systems, Incorporated acquired in 2024.

The human element is substantial, represented by Highly skilled software engineers and infrastructure domain experts. As of October 2025, Bentley Systems, Incorporated has approximately 5.6K employees. These colleagues operate across 194 countries. This deep expertise underpins their ability to innovate, especially in AI-enhanced workflows.

Financial stability is a massive resource, evidenced by the subscription momentum. The Annualized Recurring Revenue (ARR) base was $1.405 billion as of Q3 2025 (September 30, 2025). This recurring stream is sticky, shown by the last twelve-month recurring revenues dollar-based net retention rate of 109% as of Q3 2025. The company's full-year 2025 total revenue outlook was projected between $1,461 million and $1,490 million.

Physical and digital infrastructure supporting their cloud strategy is also a key asset. The Global data centers and cloud infrastructure for Bentley Infrastructure Cloud are evolving, with the introduction of Bentley Infrastructure Cloud Connect as the new foundational layer in late 2025. This cloud environment leverages the iTwin platform to integrate data from more than fifty file formats. Early adopter usage demonstrates scale:

Metric	Data Point
Projects with Curated Views	72
External Stakeholders Accessible	Over 900
Organizations Involved	86

This unified environment helps project stakeholders clearly understand design decision impacts, saving millions in potential rework. Also, AI enhancements to ProjectWise now include AI-powered search capabilities.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Value Propositions

You're looking at the core value Bentley Systems, Incorporated (BSY) delivers to its users, which is clearly reflected in its financial performance, like the $1.460B in trailing twelve months revenue as of September 30, 2025, a 11.12% increase year-over-year. This value centers on making infrastructure professionals more productive and helping them close the engineering capacity gap the world faces.

Creating and managing Infrastructure Digital Twins for asset performance.

Bentley Systems, Incorporated (BSY) provides the foundation for creating and managing digital twins across the infrastructure lifecycle. This isn't just a concept; it's showing up in real-world results. The global digital twin software market itself is projected to grow rapidly at a compound annual growth rate (CAGR) of 40.1% through at least 2032. You see the value in projects like the Yangjiang offshore wind farm, where the use of tools like ProjectWise and iTwin Experience led to a 15% faster design cycle and a 20% shorter construction period, saving CNY 20 million in costs. For another example, an Australian highway upgrade saw 366,000 work hours saved and AUD 5 million in rework costs avoided by creating a connected digital twin. This focus on lifecycle management is central to delivering better, more resilient infrastructure.

Improving engineering productivity and closing the capacity gap via AI.

The reality is, there aren't enough engineers for the work that needs doing, so productivity gains via AI are a major value driver. Bentley Systems, Incorporated (BSY) is embedding AI across its portfolio to address this capacity shortage. A global survey found about half of infrastructure professionals are already piloting or have implemented AI, focusing on design productivity and documentation automation. Evidence of this trend is clear: nearly one-third of submissions and nearly half of the finalists in the 2025 Going Digital Awards utilized AI in their projects. New generative AI tools, like OpenSite+, are in limited release, claiming they can deliver civil site design projects up to 10 times faster. Also, new AI-powered search capabilities are coming to ProjectWise, aiming to reduce time spent finding information, with early access starting in December 2025.

Comprehensive project collaboration and data management via ProjectWise.

ProjectWise is key to enabling collaboration at scale, which is critical when coordinating many design partners, as seen in complex projects. The company serves approximately 41,000 customers globally. The value here is in connected data environments that streamline workflows. For instance, the Australian highway upgrade mentioned earlier required coordinating 15 design partners, which was managed using ProjectWise alongside other tools. The company's strong recurring revenue model supports this, with Annualized Recurring Revenues (ARR) reaching $1,405.2M as of Q3 2025, reflecting a 10.5% constant currency growth year-over-year.

Enabling design, construction, and operations for resilient infrastructure.

Bentley Systems, Incorporated (BSY) empowers users across the entire infrastructure journey, from initial design through to operations and maintenance. This is reflected in the quality and stickiness of their revenue base. The company's subscription revenue, which is the mainstay, accounted for 92% of total revenue in Q1 2025. Customer commitment is high, with the dollar-based net retention rate hitting 110% in Q1 2025. The 2025 full-year outlook projects total revenues between $1,461 million and $1,490 million. This sustained performance shows users are relying on the platform for long-term asset health and resilience.

Flexible licensing options (Virtuosity, SELECT) for different user needs.

You have options depending on your organization's size and needs, which is a deliberate part of the strategy to capture the market. The growth strategy specifically calls out Enterprise 365 (E365) for large accounts and Virtuosity for small and medium businesses (SMB). This is working, as E365 and SMB accounts now make up 45% of ARR as of Q2 2025, up from 25% in 2020. The financial structure shows this shift: subscription revenue grew 13.5% year-over-year in Q3 2025 to $344.3M, while the outlook projects perpetual licenses revenue to be approximately flat in constant currency for the full year 2025. This preference for recurring subscriptions over one-time purchases is a clear value indicator.

Metric	Value/Range (As of Late 2025 Data)	Context/Period
Trailing Twelve Months Revenue	$1.460B	As of September 30, 2025
2025 Full Year Revenue Outlook	$1,461M to $1,490M	Full Year 2025 Guidance
Q3 2025 Subscription Revenue	$344.3M	Year-over-year growth of 13.5%
Subscription Revenue as % of Total Revenue	92%	Q1 2025
Annualized Recurring Revenue (ARR)	$1,405.2M	Q3 2025
ARR Growth (Constant Currency)	10.5% to 12.5%	2025 Outlook
Net Dollar Retention Rate	109%	Q3 2025
E365/SMB Contribution to ARR	45%	Q2 2025

• Digital Twin Software Market CAGR: 40.1% through 2032.
• AI Adoption in Infrastructure Survey: About half of respondents are piloting or have implemented AI.
• AI in 2025 Going Digital Awards: Nearly one-third of submissions used AI.
• ProjectWise AI Search Early Access: December 2025.
• Total Global Customers: Approximately 41,000.

Finance: finalize the Q4 2025 revenue projection update by next Tuesday.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Customer Relationships

You're looking at how Bentley Systems, Incorporated (BSY) keeps its customers engaged and spending more over time. It's all about locking in that recurring revenue stream, which, as of the last twelve months ending Q3 2025, represented a solid 92% of total revenues.

Dedicated Enterprise 365 (E365) agreements for large accounts

The consumption-based E365 commercial model is a key driver for the largest accounts. This approach is noted for providing accretion within the Annual Recurring Revenue (ARR) base. While specific E365 agreement counts aren't public, the model's success is reflected in the overall retention metrics. The company added 300 basis points of ARR growth from new logos in Q3 2025, primarily within the SMB segment, while the E365 performance remained steady. The strategic focus on these enterprise accounts is a core part of the growth story.

High-touch, consultative sales and advisory services

The relationship is deep, moving beyond just selling software licenses. This is supported by the bundled services in other offerings, suggesting a consultative approach is embedded. For instance, the Virtuoso Subscription includes direct access to in-house industry experts for consulting. The company's overall Services revenue for the first six months of 2025 was $21 million. The 2025 financial outlook projected Services revenues growth to be 'approximately flat' in constant currency for the full year.

Virtuoso Subscription model with bundled training and auto-renewals

Every purchase made through the Bentley eStore comes exclusively as a Virtuoso Subscription. This model is designed for simplicity and continuous learning. It bundles a 12-month software license with 'Keys' (training credits) that can be redeemed for on-demand courses, 1-to-1 mentoring, and tailored consulting. A key feature is the automatic annual key replenishment when the subscription renews, ensuring fresh credits are available. These subscriptions are 12-month practitioner licenses that feature convenient auto-renewals. This contrasts with the older perpetual license model, which included a yearly maintenance subscription called SELECT.

24/7/365 technical support and professional/managed services

While the older SELECT maintenance plan explicitly included 24/7/365 technical support, the current subscription focus integrates support and services differently. The overall health of the customer base is strong, evidenced by the last twelve months constant currency account retention rate holding at 99% as of Q3 2025. The consumption-based E365 model and the Virtuoso model are designed to provide continuous access and support resources.

Here's a quick look at the recurring revenue health underpinning these relationships as of late 2025:

Metric	Value (as of LTM Q3 2025 or H1 2025)
Last Twelve Months Recurring Revenues Growth (YoY)	13%
Last Twelve Months Recurring Revenues as % of Total Revenues	92%
Last Twelve Months Constant Currency Account Retention Rate	99%
Last Twelve Months Constant Currency Net Retention Rate	109%
Annualized Recurring Revenue (ARR)	$1,405 million
Q3 2025 Total Revenue	$375.5 million
Services Revenue (Six Months Ended June 30, 2025)	$21 million

Annual Year in Infrastructure conference for community and innovation showcase

The annual Year in Infrastructure (YII) conference serves as a major community touchpoint, bringing together global industry leaders. The YII 2025 event was held in Amsterdam on October 15-16, 2025. This event showcases innovation and recognizes customer success through the Going Digital Awards. For the 2025 awards cycle, nearly 250 projects were nominated by organizations spanning 47 countries. The conference features keynotes from Bentley leadership, like CEO Nicholas Cumins and CTO Julien Moutte, discussing trends like AI and digital twins.

• YII 2025 Event Location: Amsterdam
• YII 2025 Dates: October 15-16
• Going Digital Awards Nominations (2025): Nearly 250
• Countries Represented by Finalists (2025): 47

Finance: review Q4 2025 cash flow projections against the full-year guidance of $430-$470 million in free cash flow.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Channels

You're looking at how Bentley Systems, Incorporated (BSY) gets its software and services into the hands of its global infrastructure engineering customers as of late 2025. The channel strategy heavily leans on recurring revenue delivery, which is now the mainstay of the business.

Direct sales force for large enterprise and government accounts (E365)

The Enterprise 365 (E365) initiative targets large enterprise and government accounts, driving consumption through a direct-like engagement model. This segment, combined with Small and Medium Business (SMB) accounts, is a significant growth driver for Bentley Systems, Incorporated (BSY). As of the second quarter of 2025, E365 and SMB accounts represented 45% of the Annualized Recurring Revenues (ARR). This is a clear upward trend, moving from 41% in 2023 and 25% in 2020, showing successful expansion beyond the traditional, very large enterprise base. New logos from both the E365 and SMB segments continue to be major contributors to revenue growth.

Global network of sales partners and resellers

While the search results emphasize the direct growth of E365 and SMB logos, the global network of partners and resellers is integral to market reach, especially in regions where direct presence is less dense. The overall subscription revenue growth supports the effectiveness of all sales channels, including partners. For the nine months ended September 30, 2025, subscription revenues reached $1,020.1 million, which is 92% of the total revenues of $1,110.2 million for the same period. The partner network helps drive this high subscription percentage across diverse geographies.

Virtuosity eStore for Small and Medium Businesses (SMB) software leasing

The Virtuosity platform serves as a key channel for the SMB segment, facilitating software leasing and consumption. The growth in the combined E365 and SMB ARR share to 45% as of Q2 2025 directly reflects the success of this channel strategy for smaller entities. This channel supports the overall shift to a subscription model, where subscription revenues accounted for 92% of total revenue in the nine months ended September 30, 2025.

Bentley Infrastructure Cloud platform for software delivery and data services

The Bentley Infrastructure Cloud platform is the primary vehicle for software delivery and the consumption of data services, underpinning the recurring revenue model. The company's Annualized Recurring Revenues (ARR) stood at $1,405.2 million as of September 30, 2025, up from $1,270.7 million as of September 30, 2024, reflecting a constant currency ARR growth rate of 10.5%. This platform delivery method is crucial for achieving the projected full-year 2025 subscription revenue growth rate of 10.5% to 12.5% in constant currency.

The following table summarizes key revenue metrics that reflect the success of these delivery channels through the first three quarters of 2025:

Metric	Q3 2025 Value	Nine Months Ended Sep 30, 2025 Value	Context/Comparison
Total Revenues	$375.5 million	$1,110.2 million	Q3 YoY growth was 12.0%
Subscriptions Revenues	$344.3 million	$1,020.1 million	Subscription revenue is 92% of total revenue as of Q3 2025
Annualized Recurring Revenues (ARR)	$1,405.2 million	N/A	ARR growth rate was 10.5% in constant currency for Q3
Services Revenues (H1 2025)	N/A	$21 million	Services revenue was up 3% year-over-year for H1 2025

Professional services and training academies

Professional services are a smaller, non-subscription component of the channel mix. For the first half of 2025, services revenues were reported at $21 million, showing a modest increase of 3% year-over-year. This contrasts with the prior year's Q4 2024 performance, where services revenues declined by 21% year-over-year. The company projects that for the full year 2025, Services revenues growth will be approximately flat in constant currency. Training academies are embedded within the service offerings, supporting the adoption of the cloud platform and E365 consumption.

The shift to subscriptions is definitive.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Bentley Systems, Incorporated as of late 2025. This isn't just a list; it's where the $1.405 billion in Annual Recurring Revenue (ARR) as of September 30, 2025, is coming from. The company's reach is broad, serving over 41,000 accounts globally as of early 2024.

The customer base is fundamentally split between those who design and build the assets and those who own and operate them. While the most granular split available is from 2023, it gives you a clear picture of the two primary pillars supporting the business. The shift toward recurring revenue is evident, with subscriptions making up 92% of total revenues in Q3 2025.

Here's a breakdown of the key segments and what we know about their financial contribution or size:

Customer Segment	Latest Quantifiable Data Point	Context/Metric
Global Architecture, Engineering, and Construction (AEC) firms	50%	Of total revenues in 2023, working on project delivery.
Large infrastructure owner-operators (e.g., public works, utilities, rail)	50%	Of total revenues in 2023, focusing on asset performance.
Small and Medium Businesses (SMBs) in engineering and design	300 basis points of ARR growth	Added from new logos in Q3 2025, primarily within this segment.
SMBs and Enterprise 365 (E365) Accounts (Combined)	45% of ARR	As of June 30, 2025, showing increasing importance to the revenue mix.
Government agencies and municipalities	Public Works/Utilities showed solid performance	Identified as a strong sector contributor in Q2 2025.

The growth in the E365 commercial model, which is often tied to consumption and serves both large and smaller entities, is a key trend. The combined E365 and SMB segment now accounts for 45% of ARR as of June 30, 2025. This is a significant increase from just 25% of ARR back in 2020. To be fair, the 50/50 split from 2023 is the best we have for the two largest groups, but the growth in new logos points directly at the SMB space.

You should also note the success in expanding relationships with existing customers, which drives the overall health of the subscription base. The last twelve-month recurring revenues dollar-based net retention rate was 109% as of September 30, 2025. This means that even without adding new logos, the existing customer base is spending more year-over-year. The company also saw the Resources sector emerge as the fastest-growing infrastructure segment in Q2 2025.

The customer segments are served across the infrastructure lifecycle, from conception through operations. For instance, the iTwin Platform is used to add digital twin capabilities for project delivery, construction, and asset operations. Also, the acquisition of Cesium in 2024 was specifically noted for adding 3D geospatial capabilities and fostering deeper market penetration in Japan.

• The company serves enterprises and professionals across the infrastructure lifecycle.
• The focus on AI capabilities is aimed at helping users close the engineering capacity gap.
• The company is also supporting an emerging ecosystem of third-party developers using the iTwin.js library.

Finance: draft 13-week cash view by Friday.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Cost Structure

You're looking at the expense side of Bentley Systems, Incorporated's operations as of late 2025. This is where the money goes to keep the subscription engine running and fuel future growth in digital twins and AI integration.

The Research and Development (R&D) function represents a substantial, high fixed-cost commitment. For the twelve months ending September 30, 2025, R&D expenses were reported at $0.304B, which was a 10.28% increase year-over-year. To give you a more recent snapshot, R&D rose to $281.25 million in the first quarter of 2025, representing 20.6% of that quarter's revenue. This level of investment is necessary to maintain the technological edge in infrastructure engineering software and support the Bentley Infrastructure Cloud ecosystem.

Selling, General, and Administrative (S&G&A) expenses, which capture your Sales and Marketing (S&M) spend for global reach, are also significant. For the twelve months ending September 30, 2025, SG&A expenses reached $0.492B. For instance, in the second quarter of 2025, these costs rose to $477.93 million year-over-year. This spend supports the global sales force necessary to manage the 41,000 accounts across 189 countries.

Personnel costs are embedded within these large operating expense categories, covering the highly specialized engineers and the professional services staff needed for customer success, especially within the E365 Pure Consumption Program. You can see the cost of rewarding that talent through the Stock-Based Compensation (SBC) figure, which was $67.41M for the fiscal quarter ending September 30, 2025. Honestly, these highly skilled people are the engine, and their compensation reflects that value.

Infrastructure and cloud computing costs are increasingly important as Bentley Systems, Incorporated pushes its Bentley Infrastructure Cloud, anchored by the iTwin platform. The announcement of Bentley Infrastructure Cloud Connect in October 2025, with general availability in December 2025, signals continued investment in this unified data environment. While specific cloud infrastructure spend isn't broken out separately from R&D and SG&A, the platform's ability to ingest data from over 50 distinct file formats and integrate with enterprise systems implies significant ongoing operational expenditure in this area.

Despite these significant operating costs, management is guiding toward improved profitability. The Adjusted Operating Income (AOI) w/SBC margin is projected at approximately 28.5% for the full year 2025, which represents an annual improvement of 100 basis points from the 2024 margin of 27.5%.

Here's a quick look at the key figures driving the cost structure relative to the projected revenue scale:

Cost/Metric Category	Latest Reported/Projected Value (2025)	Context/Period
Projected Total Revenue Range	$1,461 million to $1,490 million	Full Year 2025 Outlook
R&D Expenses	$0.304B	Twelve Months Ending September 30, 2025
SG&A Expenses	$0.492B	Twelve Months Ending September 30, 2025
Stock-Based Compensation (SBC)	$67.41M	Quarter Ending September 30, 2025
Projected AOI w/SBC Margin	28.5%	Full Year 2025 Projection

The primary cost drivers you need to track are:

• High fixed investment in R&D for software development.
• Substantial SG&A to support global sales and marketing efforts.
• Personnel costs for specialized engineers and services staff.
• Cloud and infrastructure spend supporting Bentley Infrastructure Cloud.
• Stock-Based Compensation impacting reported operating expenses.

Bentley Systems, Incorporated (BSY) - Canvas Business Model: Revenue Streams

You're looking at the core drivers of cash flow for Bentley Systems, Incorporated (BSY) as of late 2025. The model is heavily weighted toward predictable, recurring income, which is exactly what investors want to see.

The primary engine for Bentley Systems, Incorporated (BSY) revenue is its subscription model. The company has guided for subscription revenues in 2025 to grow between 10.5% to 12.5% in constant currency. This focus on recurring revenue is clearly paying off, as subscription revenues represented $344.3 million in the third quarter of 2025, marking a 13.5% year-over-year increase on a reported basis.

For the full fiscal year 2025, Bentley Systems, Incorporated (BSY) projects its total revenues to fall within the range of $1,461 million to $1,490 million in GAAP terms. This projection is built upon the continued strength of the subscription base, which is the highest quality revenue stream for the business.

Here's a quick look at the key components of the 2025 financial outlook:

Revenue Component	2025 Projection/Expectation
Total Revenues (GAAP Range)	$1,461 million to $1,490 million
Subscription Revenues Growth (Constant Currency)	10.5% to 12.5%
Perpetual Licenses Sales	Approximately flat (in constant currency)
Professional Services and Training Fees	Approximately flat (in constant currency)

While subscriptions dominate, the other streams provide necessary support. To be fair, the guidance for perpetual license sales suggests they are expected to be approximately flat in constant currency for 2025. Similarly, professional services and training fees are also anticipated to be approximately flat in constant currency for the year.

The health of the recurring base is best seen in the latest reported figures. As of September 30, 2025, the Annualized Recurring Revenue (ARR) for Bentley Systems, Incorporated (BSY) reached $1,405.2 million. This figure reflects a constant currency ARR growth rate of 10.5% year-over-year for Q3 2025. You can see the stickiness of the customer base in the retention metrics.

Key statistical data points from the Q3 2025 results include:

• Total Revenues for Q3 2025: $375.5 million (up 12.0% YoY)
• ARR as of September 30, 2025: $1,405.2 million
• Last twelve-month recurring revenues dollar-based net retention rate: 109%
• Adjusted Operating Income Margin (Q3 2025): 27.7%
• Free Cash Flow Year-to-Date (Q3 2025): $384.0 million

Finance: draft the Q4 2025 revenue forecast based on the Q3 performance and FX tailwinds mentioned by management by next Tuesday.