BSY · Bentley Systems, Incorporated

Bentley Systems delivered solid first-quarter 2026 results, with total revenue growing 14.5% year-over-year to $424.2 million, driven by strong performance in its Resources business—the fastest-growing sector—and steady demand from Public Works/Utilities. Subscriptions revenue rose 14.7% to $392.5 million, supporting Annualized Recurring Revenue (ARR) growth of 11.5% on a constant currency basis to $1,494.5 million—indicating continued expansion in recurring scale and customer retention. However, profitability metrics softened: GAAP operating income margin declined 130 bps to 29.8%, and AOI less Operating SBC margin fell 140 bps to 33.2%, reflecting increased investments in AI initiatives and integration costs. Diluted EPS of $0.30 (GAAP) and $0.38 (Adjusted) both exceeded prior-year levels, though free cash flow declined 13% year-over-year to $187.9 million, primarily due to timing-driven increases in cloud subscription deposits and deferred revenue outflows. Management highlighted strategic progress in AI instrumentation across engineering applications and announced a $550 million Term Loan A—closed April 23, 2026—under the credit facility’s accordion feature, raising total borrowing capacity to $1.85 billion. This refinancing lowers interest costs and bolsters financial flexibility for programmatic acquisitions and capital returns, with CFO Werner Andre noting net debt leverage remained under 2x at quarter-end. The press release reaffirmed confidence in full-year guidance, citing robust ARR growth, disciplined capital allocation, and long-term AI-driven economic potential.