BSY

Bentley Systems is the dominant pure-play infrastructure-engineering software company, and the FY2025 financials show a textbook high-quality SaaS franchise. Gross margin is 81.5%, operating margin 24.1%, and return on equity 23.4%. Revenue grew 11.0% to $1.50B while net income rose 18.3% to $278M and operating income jumped 20.0% to $363M — margin expansion on top of double-digit growth. Crucially, the business is overwhelmingly recurring: subscriptions revenue was $1.38B (up 12.5%), ARR reached $1.46B (+11.5% constant currency), and the dollar-based net retention rate was 109%, meaning existing customers spend more each year. Over 70% of revenue comes from organizations that have been accounts for more than ten years — evidence of deep stickiness in mission-critical engineering workflows.

The cash characteristics reinforce the quality. Operating cash flow grew 23.7% to $538M on minimal capex of just $18.3M, reflecting the asset-light software model. Management is returning that cash — $125M of buybacks (up 94.3%) and $85M of dividends (up 17.8%) — while paying down debt (long-term debt fell 10.0% to $1.25B). Leverage at 1.99x liabilities/equity is moderate and improving, and retained earnings turned nearly breakeven (-$40.3M, up 47.0%).