BENTLEY SYSTEMS INC (BSY): Results of Operations and Financial Condition
BENTLEY SYSTEMS INC (BSY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Bentley Systems Announces Second Quarter 2026 Results EXTON, PA – August 6, 2026 – Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, today announced results for the quarter ended June 30, 2026. Second Quarter 2026 Results •
How this was made
The 30-second read
Why it matters
Traders can update models using the disclosed Q2 and six-month revenue, ARR, retention, EPS, and cash-flow figures, and reassess profitability trend given margin declines YoY.
Market read
Fresh quarterly datapoints (ARR, retention, EPS, and free cash flow) are likely to drive near-term sentiment and revisions to forward estimates.
What to watch
The release notes new enterprise-wide finance and quote-to-cash platforms and integration-cost definition changes for AOI less Operating SBC, which may affect comparability and perceived profitability trend.
Bentley Systems reported second-quarter revenue growth of 12.8%, subscription revenue growth of 13.6%, and higher GAAP and adjusted diluted EPS, while operating margins declined year over year.
Revenue, subscription revenue, ARR, diluted EPS, operating cash flow, and free cash flow increased year over year in the second quarter. The principal offset was lower GAAP operating income margin and lower AOI less Operating SBC margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $410.7 million | – | up 12.8% or 12.2% on a constant currency basis |
| Subscriptions revenuesGAAP | $378.6 million | – | up 13.6% or 13.0% on a constant currency basis |
| Annualized Recurring Revenues (ARR)other | $1,536.0 million | – | Constant currency ARR growth rate was 12% |
| Last twelve-month recurring revenues dollar-based net retention rateother | 109% | – | consistent with the same period last year |
| Operating income marginGAAP | 21.6% | – | – |
| AOI less Operating SBC marginnon-GAAP | 28.3% | – | – |
| Net income per diluted shareGAAP | $0.25 | – | – |
| Adjusted EPSnon-GAAP | $0.35 | – | – |
| Cash flows from operating activitiesGAAP | $71.5 million | – | – |
| Free cash flownon-GAAP | $63.8 million | – | – |
| Six Months Total revenuesGAAP | $834.9 million | – | up 13.6% or 12.1% on a constant currency basis |
| Six Months Subscriptions revenuesGAAP | $771.1 million | – | up 14.1% or 12.6% on a constant currency basis |
| Six Months Operating income marginGAAP | 25.7% | – | – |
| Six Months AOI less Operating SBC marginnon-GAAP | 30.8% | – | – |
| Six Months Net income per diluted shareGAAP | $0.55 | – | – |
| Six Months Adjusted EPSnon-GAAP | $0.73 | – | – |
| Six Months Cash flows from operating activitiesGAAP | $264.9 million | – | – |
| Six Months Free cash flownon-GAAP | $251.7 million | – | – |
Capital returns
- The company reported a meaningful increase in share repurchases during the first half.
- The company stated it retains flexibility to return capital to shareholders through dividends and share repurchases.
What drove it
- Growth was led by the Resources sector, followed by Public Works / Utilities, including from the electric grid.
- Management cited continued strength in the end markets it serves.
- The company is instrumenting more engineering applications so users can combine Bentley's modeling, analysis, and simulation engines with preferred AI assistants.
- Management said accounts are beginning to apply Infrastructure AI capabilities on live projects.
- The company went live with new enterprise-wide finance and quote-to-cash platforms during the second quarter.
Concerns
- GAAP operating income margin was 21.6%, compared to 23.2% for the same period last year.
- AOI less Operating SBC margin was 28.3%, compared to 29.3% for the same period last year.
- Six-month cash flows from operating activities were $264.9 million, compared to $280.5 million for the same period last year.
- Six-month free cash flow was $251.7 million, compared to $273.4 million for the same period last year.
- Management said it intends to monetize Infrastructure AI value in due course, without providing a reported revenue contribution or timing.
- The company cited its mid-2027 convertible notes maturity.
What to watch
- Constant-currency ARR growth rate of 12%.
- Last twelve-month recurring revenues dollar-based net retention rate of 109%.
- Whether operating income margin and AOI less Operating SBC margin improve from their reported year-over-year comparisons.
- Execution and efficiency benefits from the new enterprise-wide finance and quote-to-cash platforms.
- Progress in applying and monetizing Infrastructure AI capabilities on live projects.
- Share repurchases, dividends, programmatic acquisitions, and funding plans ahead of the mid-2027 convertible notes maturity.
Balance sheet and cash flow
- Cash and cash equivalents were $146,981 (in thousands) as of June 30, 2026, compared to $123,278 (in thousands) as of December 31, 2025.
- Total assets were $3,582,904 (in thousands) as of June 30, 2026, compared to $3,555,167 (in thousands) as of December 31, 2025.
- Quarter-end net debt leverage was 1.9 times.
- Second-quarter cash flows from operating activities were $71.5 million, compared to $61.1 million for the same period last year.
- Second-quarter free cash flow was $63.8 million, compared to $57.0 million for the same period last year.
- Six-month cash flows from operating activities were $264.9 million, compared to $280.5 million for the same period last year.
- Six-month free cash flow was $251.7 million, compared to $273.4 million for the same period last year.
Analysis
Bentley reported a solid second quarter marked by broad recurring-revenue growth. Total revenues were $410.7 million, up 12.8% or 12.2% on a constant currency basis, while subscriptions revenues were $378.6 million, up 13.6% or 13.0% on a constant currency basis. ARR reached $1,536.0 million as of June 30, 2026, compared with $1,379.2 million as of June 30, 2025, and the company reported a constant-currency ARR growth rate of 12%. Dollar-based net retention was 109%, consistent with the same period last year.
Management identified the Resources sector as the leading growth contributor, followed by Public Works / Utilities, including the electric grid. The company also described continued strength in its served end markets. Bentley is expanding Infrastructure AI functionality across engineering applications and said accounts are beginning to use these capabilities on live projects. Management framed this activity as a future monetization opportunity rather than a reported current-period revenue contributor.
Profitability remained positive but was lower on a year-over-year margin basis. GAAP operating income margin was 21.6%, compared with 23.2%, and AOI less Operating SBC margin was 28.3%, compared with 29.3%. GAAP diluted EPS increased to $0.25 from $0.22, while Adjusted EPS increased to $0.35 from $0.32. The company said it absorbed costs related to new enterprise-wide finance and quote-to-cash platforms within its margin commitment while establishing a foundation for efficiency and scale.
Cash generation improved in the quarter, with operating cash flow of $71.5 million compared with $61.1 million and free cash flow of $63.8 million compared with $57.0 million. For the six months ended June 30, 2026, operating cash flow and free cash flow were below the respective prior-year figures. Cash and cash equivalents were $146,981 (in thousands) at quarter end, and management cited quarter-end net debt leverage of 1.9 times alongside ample credit capacity.
Capital allocation remains active. Management cited a meaningful increase in share repurchases during the first half and said the company maintains flexibility to fund programmatic acquisitions and return capital through dividends and repurchases. The release refers to the full-year financial outlook but does not provide numerical guidance in the supplied filing text, preventing an assessment of the reported period against stated outlook ranges.
Management, verbatim
We had another strong quarter, reflecting disciplined execution by our team and continued strength in the end markets we serve. Growth was led once again by the Resources sector, followed by Public Works / Utilities, including from the electric grid.
Nicholas Cumins, CEO
Our second-quarter results reflect consistent high performance across our key financial metrics, positioning us favorably within our full-year financial outlook. We delivered constant-currency ARR growth of 12% and constant-currency subscriptions revenue growth of 13%, with free cash flow having grown 15% on a last-twelve-months basis and profitability in line with our expectations.
Werner Andre, CFO
Not in the filing
stated, not guessed- Numerical full-year financial outlook figures, including revenue, gross margin, operating expenses, tax rate, and other guided metrics, were not included in the supplied filing text.
- Previous-period outlook was not provided.
- GAAP operating income dollar amount was not included in the supplied filing text.
- GAAP net income dollar amount was not included in the supplied filing text.
- Gross profit and gross margin were not included in the supplied filing text.
- Prior-quarter comparisons for reported second-quarter metrics were not included in the supplied filing text.
- Segment revenue figures and segment-level revenue growth figures were not included in the supplied filing text.
- Debt balance was not included in the supplied filing text.
- Share repurchase amount, dividend amount, and capital-return totals were not included in the supplied filing text.
- The consolidated balance sheet and financial statements were truncated after the beginning of current liabilities in the supplied filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) furnishing Bentley Systems’ Q2 2026 earnings release (Exhibit 99.1).
Ticker impact
Bentley Systems reported Q2 2026 results with $410.7M revenue (+12.8% YoY), $1.536B ARR, and $0.35 adjusted EPS, plus FCF $63.8M.
Likely modestly positive bias for BSY as ARR growth and free cash flow increased, though operating margin declined YoY.
Key disclosed datapoints include revenue/subscription growth, ARR level and retention, EPS, and free cash flow. Operating margin and AOI less Operating SBC margin both fell YoY, which can temper upside despite growth.
Market effects
Signals continued demand strength in infrastructure engineering software, with emphasis on subscription growth and monetization of Infrastructure AI.
No specific regional breakdown disclosed beyond end-market commentary (Resources, Public Works/Utilities).
Constant-currency growth and ARR scale suggest resilience across geographies, but the release provides no country-level guidance.
Counterpoint
Margin compression (operating margin 21.6% vs 23.2% YoY, AOI less Operating SBC margin 28.3% vs 29.3%) could indicate cost pressure or investment drag despite revenue growth.
Key entities
- companyBentley Systems, Incorporated
Infrastructure engineering software company reporting Q2 2026 results and cash-flow metrics in an 8-K.
- executiveGreg Bentley
Executive Chair quoted on ARR growth, profitability durability, and free cash flow.
- executiveNicholas Cumins
CEO quoted on end-market strength and progress on Infrastructure AI instrumentation.
- executiveWerner Andre
CFO quoted on financial performance, platform go-live, capital allocation, and net debt leverage.
