Bentley Systems, Incorporated, the infrastructure engineering software company, announced results for the quarter ended June 30, 2026.
Second Quarter 2026 Results
- Total revenues were $410.7 million, up 12.8% or 12.2% on a constant currency basis, year-over-year;
- Subscriptions revenues were $378.6 million, up 13.6% or 13.0% on a constant currency basis, year-over-year;
- Annualized Recurring Revenues (“ARR”) were $1,536.0 million as of June 30, 2026, compared to $1,379.2 million as of June 30, 2025. Constant currency ARR growth rate was 12%;
- Last twelve-month recurring revenues dollar-based net retention rate was 109%, consistent with the same period last year;
- Operating income margin was 21.6%, compared to 23.2% for the same period last year;
- Adjusted operating income less operating stock-based compensation expense (“AOI less Operating SBC”) margin was 28.3%, compared to 29.3% for the same period last year;
- Net income per diluted share was $0.25, compared to $0.22 for the same period last year;
- Adjusted net income per diluted share (“Adjusted EPS”) was $0.35, compared to $0.32 for the same period last year;
- Cash flows from operating activities were $71.5 million, compared to $61.1 million for the same period last year; and
- Free cash flow was $63.8 million, compared to $57.0 million for the same period last year.
Six Months Ended June 30, 2026 Results
- Total revenues were $834.9 million, up 13.6% or 12.1% on a constant currency basis, year-over-year;
- Subscriptions revenues were $771.1 million, up 14.1% or 12.6% on a constant currency basis, year-over-year;
- Operating income margin was 25.7%, compared to 27.2% for the same period last year;
- AOI less Operating SBC margin was 30.8%, compared to 32.0% for the same period last year;
- Net income per diluted share was $0.55, compared to $0.50 for the same period last year;
- Adjusted EPS was $0.73, compared to $0.67 for the same period last year;
- Cash flows from operating activities were $264.9 million, compared to $280.5 million for the same period last year; and
- Free cash flow was $251.7 million, compared to $273.4 million for the same period last year.
Executive Chair Greg Bentley said, “BSY’s hallmark growth dependability, positively exemplified by the quarters of 2026, underscores the boundless prioritization of investment within the world’s owner-operators of physical infrastructure— and our company’s ingrained zeal for hybrid innovation, led foreseeably by successive multi-faceted integration of AI. These factors underlie my confidence in the durability of superior financial returns for holders of BSY shares, characterized by our sustained momentum in growth of ARR, profitability, and most fundamentally, free cash flow (appropriately burdened by operating stock-based compensation).”
CEO Nicholas Cumins said, “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.
“We are also making meaningful progress with Infrastructure AI. We are instrumenting more of our engineering applications so that users can combine our trusted, deterministic engines for modeling, analysis, and simulation with the reasoning capabilities of their preferred AI assistants. The feedback from accounts has been encouraging: as they better understand what becomes possible, they are beginning to apply these capabilities on live projects, creating value that we intend to monetize in due course.”
CFO Werner Andre said, “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. During the second quarter, we went live with our new enterprise-wide finance and quote-to-cash platforms, the costs of which we absorbed within our margin commitment while laying the foundation for future efficiency and scale.
“Our disciplined approach to capital allocation is evidenced by quarter-end net debt leverage of 1.9 times and ample credit capacity, notwithstanding a meaningful increase in share repurchases during the first half. Together with our reliable cash generation, and in anticipation of our mid-2027 convertible notes maturity, we maintain the flexibility to fund programmatic acquisitions and to return capital to shareholders through dividends and share repurchases.”
