Open the filing on EDGARBentley Systems Announces Fourth Quarter and Full Year 2025 Results and 2026 Financial Outlook
Declares Quarterly Dividend
EXTON, PA - February 26, 2026 - Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, today announced results for the quarter ended December 31, 2025 and its financial outlook for 2026.
Fourth Quarter 2025 Results
- Total revenues were $391.6 million, up 11.9% or 9.7% on a constant currency basis, year-over-year;
- Subscriptions revenues were $356.6 million, up 13.0% or 10.8% on a constant currency basis, year-over-year;
- Annualized Recurring Revenues (“ARR”) were $1,462.1 million as of December 31, 2025, compared to $1,283.3 million as of December 31, 2024; Constant currency ARR growth rate was 11.5%;
- Last twelve-month recurring revenues dollar-based net retention rate was 109%, compared to 110% for the same period last year;
- Operating income margin was 20.0%, compared to 17.6% for the same period last year;
- Adjusted operating income less stock-based compensation expense (“AOI less SBC”) margin was 24.1%, compared to 21.5% for the same period last year;
- Net income per diluted share was $0.18, compared to $0.16 for the same period last year;
- Adjusted net income per diluted share (“Adjusted EPS”) was $0.27, compared to $0.21 for the same period last year;
- Cash flows from operating activities were $141.6 million, compared to $81.6 million for the same period last year; and
- Free cash flow was $136.2 million, compared to $76.1 million for the same period last year.
Full Year 2025 Results
- Total revenues were $1,501.8 million, up 11.0% or 10.1% on a constant currency basis over 2024;
- Subscriptions revenues were $1,376.7 million, up 12.5% or 11.7% on a constant currency basis over 2024;
- Operating income margin was 24.1%, compared to 22.3% for 2024;
- AOI less SBC margin was 28.6%, compared to 27.5% for 2024;
- Net income per diluted share was $0.85, compared to $0.72 for 2024;
- Adjusted EPS was $1.21, compared to $1.07 for 2024;
- Cash flows from operating activities were $538.5 million, compared to $435.3 million for 2024; and
- Free cash flow was $520.2 million, compared to $421.2 million for 2024.
Executive Chair Greg Bentley said, “BSY’s stalwart operating results and strategic acquisitions in 2025 set the stage for what I expect to be - increasingly accelerated by AI! - even better days and decades ahead, for colleagues, user organizations, and shareholders. Throughout crosscurrents of evolution within infrastructure engineering our consumption-based business model proves consistently reliable in aggregate. AI-agentic automation can greatly increase the value generated by our modeling and simulation functionality - and ultimately captured through A(P)I consumption - in optimizing infrastructure designs.
“A tremendous incremental opportunity for us has already been opened by AI, for continuous optimization of infrastructure operations and maintenance. Now, it is gratifying to report the long-anticipated critical mass being achieved through our Asset Analytics platform with the acquisitions of Pointivo and of Talon. This positions us for asset consumption leadership, proceeding from roadways and communications towers to the integrated grid for energy transmission and distribution. Here’s to 2026!”
CEO Nicholas Cumins said, “We delivered a strong finish to the year, giving us great momentum for our 2026 outlook, and I want to thank our colleagues for their outstanding dedication and our users for their continued partnership. The standout growth of our Seequent business continues to successfully expand our addressable market into critical resources. In parallel, we are building momentum in AI, from the growing commercial traction of Bentley Asset Analytics in operations, to our strategic push in the foundational area of AI in design - where we see enormous potential and are building the market to secure long-term leadership.”
CFO Werner Andre said, “Our 2025 results reflect a year of disciplined execution where we delivered on our commitments across the board. Our constant-currency growth of 11.5% in ARR, with less than half of a percent onboarded with acquisitions, was of notably high quality. Adjusted Operating Income less Stock-Based Compensation expense margin of 28.6% achieved our year-over-year margin improvement target of 100 basis-points (in constant currency), and free cash flow of $520 million significantly exceeded our raised outlook by virtue of strong collections and effective working capital management.
“We enter 2026 from a position of financial strength, having reduced our net debt leverage to a healthy 2.1 times, a four-year low, while the retirement of our 2026 convertible notes in January reduced our fully-diluted share count by approximately 3%. Our current leverage range and cash generation affords capacity to fund dividends, ongoing share repurchases, and up to $400 million in programmatic acquisitions annually. We are confident in our consistent outlook for 2026, starting with ARR growth range, again, of 10.5% to 12.5%.”
Recent Developments
- On January 5, 2026, we announced the acquisitions of Talon Aerolytics and the technology and technical expertise of Pointivo. These acquisitions, which closed in December, significantly strengthen our Asset Analytics portfolio, which applies digital twins and AI to help owner-operators improve asset performance and resilience across infrastructure sectors; and
- On January 15, 2026, we announced we repaid at maturity the $678 million principal balance and accrued interest on our 0.125% Convertible Senior Notes due 2026. The repayment was funded by cash on hand and $610 million drawn from our previously unused revolving credit facilities. $575 million of 0.375% Convertible Senior Notes due mid-2027 remain outstanding.
2026 Financial Outlook
The Company is sharing the following financial outlook for the full year 2026:
- Total revenues in the range of $1,685 million to $1,715 million, or growth rate of 11% to 13% in constant currency;
- Subscriptions revenues growth rate of 11% to 13% in constant currency;
- Perpetual licenses revenues growth rate approximately flat in constant currency;
- Services revenues growth rate of 15% to 20% in constant currency;
- Constant currency ARR growth rate (business performance, including programmatic acquisitions) of 10.5% to 12.5%;
- Adjusted operating income less operating stock-based compensation expense (“AOI less Operating SBC”) of $495 million to $510 million (representing annual margin improvement of approximately 100 bps in constant currency);
- Effective tax rate of approximately 21%; and
- Free cash flows in the range of $500 million to $570 million.
The 2026 outlook information provided above includes non-GAAP financial measures management uses in measuring performance and liquidity. The Company is unable to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including stock‑based compensation charges, amortization of acquired intangible assets, realignment expenses, and other items, which would be included in GAAP results. The impact of such items and unanticipated events could be potentially significant.
The 2026 outlook is forward-looking, subject to significant business, economic, regulatory, and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and those variations may be material. As such, our results may not fall within the ranges contained in this outlook. The Company uses these forward-looking measures to evaluate its ongoing operations and for internal planning and forecasting purposes.
First Quarter 2026 Dividend Declaration
On February 23, 2026, the Company’s Board of Directors declared a $0.07 per share dividend for the first quarter of 2026. The cash dividend is payable on March 19, 2026 to all stockholders of record of Class A and Class B common stock as of the close of business on March 10, 2026.
Call Details
Bentley Systems will host a live Zoom video webinar on February 26, 2026 at 8:15 a.m. EST to discuss results for its fourth quarter ended December 31, 2025.
Those wishing to participate should access the live Zoom video webinar of the event through a direct registration link at https://bentley-com.zoom.us/webinar/register/WN_IDE1r6AxQBK6Ltjwe2tpJg#/registration. Alternatively, the event can be accessed from the Events & Presentations page on Bentley Systems’ Investor Relations website at https://investors.bentley.com. In addition, a replay and transcript will be available after the conclusion of the live event on Bentley Systems’ Investor Relations website for one year.
Non-GAAP Financial Measures
In this press release, we sometimes refer to financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these measures are considered non‑GAAP financial measures under the United States Securities and Exchange Commission (“SEC”) regulations. Those rules require the supplemental explanations and reconciliations that are in Bentley Systems’ Form 8‑K (Quarterly Earnings Release) furnished to the SEC.
In future periods, we will discuss AOI less Operating SBC rather than AOI less SBC as our primary performance measure, as management believes AOI less Operating SBC better captures the Company’s core business operating results. AOI less Operating SBC excludes certain expenses and charges, including cash- and equity-settled retention incentives provided to key employees of acquired companies, which we believe may not be indicative of the Company’s core business operating results. For comparability, we have provided reconciliations of our non‑GAAP primary performance measure under both the current and future period definitions for all periods presented.
Forward-Looking Statements
Forward-looking statements notice
This press release includes forward-looking statements regarding the future results of operations and financial condition, business strategy, and plans and objectives for future operations of Bentley Systems, Incorporated (the “Company,” “we,” “us,” and words of similar import). All such statements contained in this press release, other than statements of historical facts, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations, projections, and assumptions about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, and there are a significant number of factors that could cause actual results to differ materially from statements made in this press release including: adverse changes in global economic and/or political conditions; the impact of tariffs and related policies on our business and the businesses of the industries we serve; the impact of current and future sanctions, embargoes and other similar laws at the state and/or federal level that impose restrictions on our counterparties or upon our ability to operate our business within the subject jurisdictions; political, economic, regulatory and public health and safety risks and uncertainties in the countries and regions in which we operate; failure to retain personnel necessary for the operation of our business or those that we acquire; failure to effectively manage succession; changes in the industries in which our accounts operate; the competitive environment in which we operate; the quality of our products; our ability to develop and market new products to address our accounts’ rapidly changing technological needs; changes in capital markets and our ability to access financing on terms satisfactory to us or at all; the impact of changing or uncertain interest rates on us and on the industries we serve; our ability to integrate acquired businesses successfully; and our ability to identify and consummate future investments and/or acquisitions on terms satisfactory to us or at all.
Further information on potential factors that could affect the financial results of the Company are included in the Company’s Form 10‑K and subsequent Form 10‑Qs, which are on file with the SEC. The Company disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Bentley Systems
Around the world, infrastructure professionals rely on software from Bentley Systems to help them design, build, and operate better and more resilient infrastructure for transportation, water, energy, cities, and more. Founded in 1984 by engineers for engineers, Bentley is the partner of choice for engineering firms and owner-operators worldwide, with software that spans engineering disciplines, industry sectors, and all phases of the infrastructure lifecycle. Through our digital twin solutions, we help infrastructure professionals unlock the value of their data to transform project delivery and asset performance.
© 2026 Bentley Systems, Incorporated. Bentley, the Bentley logo, Pointivo, Seequent, and Talon are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries. All other brands and product names are trademarks of their respective owners.
For more information, contact:
Investors: Eric Boyer, IR@bentley.com
BENTLEY SYSTEMS, INCORPORATED
Consolidated Balance Sheets
(in thousands)
(unaudited)
| December 31, |
|---|
| 2025 | 2024 |
|---|
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $123,278 | | $64,009 | |
| Accounts receivable | 350,299 | | 322,862 | |
| Allowance for doubtful accounts | (7,609) | | (8,395) | |
| Prepaid income taxes | 19,805 | | 13,066 | |
| Prepaid and other current assets | 53,260 | | 50,531 | |
| Total current assets | 539,033 | | 442,073 | |
| Property and equipment, net | 36,031 | | 33,798 | |
| Operating lease right-of-use assets | 31,141 | | 32,303 | |
| Intangible assets, net | 193,018 | | 213,959 | |
| Goodwill | 2,482,154 | | 2,367,179 | |
| Investments | 27,920 | | 25,764 | |
| Deferred income taxes | 170,368 | | 198,286 | |
| Other assets | 75,502 | | 86,445 | |
| Total assets | $3,555,167 | | $3,399,807 | |
| Liabilities and Equity | | |
| Current liabilities: | | |
| Accounts payable | $26,952 | | $16,479 | |
| Accruals and other current liabilities | 173,255 | | 169,522 | |
| Cloud Services Subscription deposits | 463,312 | | 366,895 | |
| Deferred revenues | 278,244 | | 245,729 | |
| Operating lease liabilities | 13,669 | | 11,656 | |
| Income taxes payable | 4,778 | | 4,053 | |
| Current portion of long-term debt | - | | - | |
| Total current liabilities | 960,210 | | 814,334 | |
| Long-term debt | 1,248,912 | | 1,388,088 | |
| Deferred compensation plan liabilities | 106,831 | | 96,684 | |
| Long-term operating lease liabilities | 22,150 | | 26,894 | |
| Deferred revenues | 18,410 | | 16,641 | |
| Deferred income taxes | 4,368 | | 8,612 | |
| Income taxes payable | - | | 3,615 | |
| Other liabilities | 4,794 | | 3,819 | |
| Total liabilities | 2,365,675 | | 2,358,687 | |
| Equity: | | |
| Common stock | 3,024 | | 3,020 | |
| Additional paid-in capital | 1,301,205 | | 1,217,986 | |
| Accumulated other comprehensive loss | (74,558) | | (104,078) | |
| Accumulated deficit | (40,258) | | (75,941) | |
| Total Bentley Systems stockholders’ equity | 1,189,413 | | 1,040,987 | |
| Noncontrolling interest | 79 | | 133 | |
| Total equity | 1,189,492 | | 1,041,120 | |
| Total liabilities and equity | $3,555,167 | | $3,399,807 | |
BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Revenues: | | | | |
| Subscriptions | $356,633 | | $315,590 | | $1,376,696 | | $1,223,362 | |
| Perpetual licenses | 14,282 | | 14,312 | | 46,180 | | 45,961 | |
| Subscriptions and licenses | 370,915 | | 329,902 | | 1,422,876 | | 1,269,323 | |
| Services | 20,667 | | 19,920 | | 78,903 | | 83,772 | |
| Total revenues | 391,582 | | 349,822 | | 1,501,779 | | 1,353,095 | |
| Cost of revenues: | | | | |
| Cost of subscriptions and licenses | 53,325 | | 46,470 | | 201,405 | | 173,340 | |
| Cost of services | 17,575 | | 21,442 | | 76,125 | | 84,427 | |
| Total cost of revenues | 70,900 | | 67,912 | | 277,530 | | 257,767 | |
| Gross profit | 320,682 | | 281,910 | | 1,224,249 | | 1,095,328 | |
| Operating expense (income): | | | | |
| Research and development | 80,990 | | 77,099 | | 307,576 | | 281,247 | |
| Selling and marketing | 84,504 | | 78,722 | | 289,543 | | 255,177 | |
| General and administrative | 66,429 | | 57,679 | | 217,332 | | 210,374 | |
| Deferred compensation plan | 2,038 | | (1,283) | | 14,409 | | 12,382 | |
| Amortization of purchased intangibles | 8,211 | | 8,281 | | 32,768 | | 33,998 | |
| Total operating expenses | 242,172 | | 220,498 | | 861,628 | | 793,178 | |
| Income from operations | 78,510 | | 61,412 | | 362,621 | | 302,150 | |
| Interest expense, net | (2,381) | | (5,755) | | (12,435) | | (22,044) | |
| Other (expense) income, net | (243) | | 8,619 | | 547 | | 12,949 | |
| Income before income taxes | 75,886 | | 64,276 | | 350,733 | | 293,055 | |
| Provision for income taxes | (17,357) | | (14,627) | | (72,977) | | (58,726) | |
| Equity in net income of investees, net of tax | 138 | | 90 | | 38 | | 104 | |
| Net income | 58,667 | | 49,739 | | 277,794 | | 234,433 | |
| Less: Net income (loss) attributable to noncontrolling interest | 29 | | (354) | | (67) | | (354) | |
| Net income attributable to Bentley Systems | $58,638 | | $50,093 | | $277,861 | | $234,787 | |
| Net income per share attributable to Bentley Systems stockholders: | | | | |
| Basic | $0.19 | | $0.16 | | $0.88 | | $0.75 | |
| Diluted | $0.18 | | $0.16 | | $0.85 | | $0.72 | |
| Weighted average shares: | | | | |
| Basic | 314,203,618 | | 315,035,554 | | 314,690,707 | | 314,886,615 | |
| Diluted | 332,633,891 | | 333,874,529 | | 333,089,213 | | 333,774,167 | |
BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Year Ended |
|---|
| December 31, |
|---|
| 2025 | 2024 |
|---|
| Cash flows from operating activities: | | |
| Net income | $277,794 | | $234,433 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation, amortization, and impairment | 65,880 | | 64,608 | |
| Deferred income taxes | 24,333 | | 12,571 | |
| Stock-based compensation expense | 72,576 | | 74,417 | |
| Deferred compensation plan | 14,409 | | 12,382 | |
| Amortization of deferred debt issuance costs | 7,575 | | 7,338 | |
| Change in fair value of derivative | 10,238 | | (10) | |
| Foreign currency remeasurement loss (gain) | 664 | | (785) | |
| Other | 5,674 | | 7,794 | |
| Changes in assets and liabilities, net of effect from acquisitions: | | |
| Accounts receivable | (18,584) | | (32,064) | |
| Prepaid and other assets | 10,543 | | (6,006) | |
| Accounts payable, accruals, and other liabilities | (18,440) | | (16,642) | |
| Cloud Services Subscription deposits | 77,190 | | 91,595 | |
| Deferred revenues | 19,006 | | (1,789) | |
| Income taxes payable, net of prepaid income taxes | (10,394) | | (12,550) | |
| Net cash provided by operating activities | 538,464 | | 435,292 | |
| Cash flows from investing activities: | | |
| Purchases of property and equipment and investment in capitalized software | (18,255) | | (14,046) | |
| Acquisitions, net of cash acquired | (93,252) | | (130,407) | |
| Purchases of investments | (981) | | (1,435) | |
| Other | 179 | | 2,621 | |
| Net cash used in investing activities | (112,309) | | (143,267) | |
| Cash flows from financing activities: | | |
| Proceeds from credit facilities | 289,567 | | 517,643 | |
| Payments of credit facilities | (424,882) | | (474,356) | |
| Repayments of term loan | - | | (190,000) | |
| Repurchase of convertible senior notes | (9,797) | | - | |
| Payments of debt issuance costs | - | | (6,184) | |
| Payments of contingent and non-contingent consideration | (310) | | (3,022) | |
| Payments of dividends | (84,963) | | (72,115) | |
| Proceeds from stock purchases under employee stock purchase plan | 11,534 | | 11,228 | |
| Proceeds from exercise of stock options | - | | 4,007 | |
| Payments for shares acquired including shares withheld for taxes | (32,187) | | (12,504) | |
| Repurchases of Class B common stock under approved program | (125,057) | | (64,359) | |
| Other | (203) | | (188) | |
| Net cash used in financing activities | (376,298) | | (289,850) | |
| Effect of exchange rate changes on cash and cash equivalents | 9,412 | | (6,578) | |
| Increase (decrease) in cash and cash equivalents | 59,269 | | (4,403) | |
| Cash and cash equivalents, beginning of year | 64,009 | | 68,412 | |
| Cash and cash equivalents, end of year | $123,278 | | $64,009 | |
BENTLEY SYSTEMS, INCORPORATED
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share data)
(unaudited)
Current Periods Definition: Reconciliation of operating income to AOI less SBC and to Adjusted operating income:
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Operating income | $78,510 | | $61,412 | | $362,621 | | $302,150 | |
| Amortization of purchased intangibles | 11,470 | | 11,520 | | 45,658 | | 46,679 | |
| Deferred compensation plan | 2,038 | | (1,283) | | 14,409 | | 12,382 | |
| Acquisition expenses (cash-settled) | 2,430 | | 3,440 | | 7,229 | | 10,222 | |
| Realignment (income) expenses | - | | (29) | | - | | 789 | |
| AOI less SBC | 94,448 | | 75,060 | | 429,917 | | 372,222 | |
| Stock-based compensation expense | 17,452 | | 16,417 | | 71,949 | | 73,505 | |
| Adjusted operating income | $111,900 | | $91,477 | | $501,866 | | $445,727 | |
Future Periods Definition: Reconciliation of operating income to AOI less Operating SBC and to Adjusted operating income:
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Operating income | $78,510 | | $61,412 | | $362,621 | | $302,150 | |
| Amortization of purchased intangibles | 11,470 | | 11,520 | | 45,658 | | 46,679 | |
| Deferred compensation plan | 2,038 | | (1,283) | | 14,409 | | 12,382 | |
| Acquisition expenses (cash- and equity-settled) | 3,771 | | 5,604 | | 13,767 | | 16,752 | |
| Realignment (income) expenses | - | | (29) | | - | | 789 | |
| AOI less Operating SBC | 95,789 | | 77,224 | | 436,455 | | 378,752 | |
| Operating stock-based compensation expense | 16,111 | | 14,253 | | 65,411 | | 66,975 | |
| Adjusted operating income | $111,900 | | $91,477 | | $501,866 | | $445,727 | |
Reconciliation of net income attributable to Bentley Systems to Adjusted net income:
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| $ | EPS | $ | EPS | $ | EPS | $ | EPS |
|---|
| Net income attributable to Bentley Systems | $58,638 | $0.18 | | $50,093 | $0.16 | | $277,861 | $0.85 | | $234,787 | $0.72 | |
| Non-GAAP adjustments, prior to income taxes: | | | | | | | | |
| Amortization of purchased intangibles | 11,470 | 0.03 | | 11,520 | 0.03 | | 45,658 | 0.14 | | 46,679 | 0.14 | |
| Stock-based compensation expense | 17,452 | 0.05 | | 16,417 | 0.05 | | 71,949 | 0.22 | | 73,505 | 0.22 | |
| Deferred compensation plan | 2,038 | 0.01 | | (1,283) | - | | 14,409 | 0.04 | | 12,382 | 0.04 | |
| Acquisition expenses (cash-settled) | 2,430 | 0.01 | | 3,440 | 0.01 | | 7,229 | 0.02 | | 10,222 | 0.03 | |
| Realignment (income) expenses | - | - | | (29) | - | | - | - | | 789 | - | |
| Other expense (income), net | 243 | - | | (8,619) | (0.03) | | (547) | - | | (12,949) | (0.04) | |
| Total non-GAAP adjustments, prior to income taxes | 33,633 | 0.10 | | 21,446 | 0.06 | | 138,698 | 0.42 | | 130,628 | 0.39 | |
| Income tax effect of non-GAAP adjustments | (4,620) | (0.01) | | (2,775) | (0.01) | | (20,795) | (0.06) | | (14,375) | (0.04) | |
| Equity in net income of investees, net of tax | (138) | - | | (90) | - | | (38) | - | | (104) | - | |
| Adjusted net income | $87,513 | $0.27 | | $68,674 | $0.21 | | $395,726 | $1.21 | | $350,936 | $1.07 | |
| Adjusted diluted weighted average shares | | | 332,633,891 | | | 333,874,529 | | | 333,089,213 | | | 333,774,167 |
(1)Adjusted EPS was computed independently for each reconciling item presented; therefore, the sum of Adjusted EPS for each line item may not equal total Adjusted EPS due to rounding.
(2)Adjusted EPS numerator includes $1,715 and $1,717 for the three months ended December 31, 2025 and 2024, respectively, and $6,720 and $6,880 for the years ended December 31, 2025 and 2024, respectively, related to interest expense, net of tax, attributable to the convertible senior notes using the if‑converted method.
Reconciliation of cash flows from operating activities to free cash flow:
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Cash flows from operating activities | $141,588 | | $81,632 | | $538,464 | | $435,292 | |
| Purchases of property and equipment and investment in capitalized software | (5,419) | | (5,547) | | (18,255) | | (14,046) | |
| Free cash flow | $136,169 | | $76,085 | | $520,209 | | $421,246 | |
Reconciliation of cash flows from operating activities to Adjusted EBITDA:
| Three Months Ended | Year Ended |
|---|
| December 31, | December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Cash flows from operating activities | $141,588 | | $81,632 | | $538,464 | | $435,292 | |
| Cash interest | 2,002 | | 5,072 | | 7,846 | | 17,202 | |
| Cash taxes | 25,068 | | 24,503 | | 59,095 | | 57,526 | |
| Cash deferred compensation plan distributions | - | | - | | 3,766 | | 2,436 | |
| Cash acquisition expenses | 1,520 | | 2,951 | | 10,874 | | 8,522 | |
| Cash realignment costs | - | | 162 | | - | | 12,768 | |
| Changes in operating assets and liabilities | (49,855) | | (14,351) | | (86,894) | | (59,069) | |
| Other | (1,744) | | (2,089) | | (7,390) | | (9,309) | |
| Adjusted EBITDA | $118,579 | | $97,880 | | $525,761 | | $465,368 | |
(1) Includes receipts related to interest rate swap.
Reconciliation of total revenues and subscriptions revenues to total revenues and subscriptions revenues in constant currency:
| Three Months Ended December 31, 2025 | Three Months Ended December 31, 2024 |
|---|
| Actual | Impact of Foreign Exchange at 2024 Rates | Constant Currency | Actual | Impact of Foreign Exchange at 2024 Rates | Constant Currency |
|---|
| Total revenues | $391,582 | $(8,008) | $383,574 | $349,822 | $(317) | $349,505 |
| Subscriptions revenues | $356,633 | $(7,442) | $349,191 | $315,590 | $(330) | $315,260 |
| Year Ended December 31, 2025 | Year Ended December 31, 2024 |
|---|
| Actual | Impact of Foreign Exchange at 2024 Rates | Constant Currency | Actual | Impact of Foreign Exchange at 2024 Rates | Constant Currency |
|---|
| Total revenues | $1,501,779 | $(12,387) | $1,489,392 | $1,353,095 | $(797) | $1,352,298 |
| Subscriptions revenues | $1,376,696 | $(11,533) | $1,365,163 | $1,223,362 | $(791) | $1,222,571 |