Bentley Systems Inc (BSY)

Price$33.78Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong cash growth offsets a still-demanding valuation.

At the verified regular-session close, Bentley trades at about 41 times trailing diluted earnings and 22 times trailing free cash flow. Free cash flow means cash left after running and investing in the business; the latest twelve months produced about $498 million. Because that cash measure includes roughly $79 million of stock compensation added back as a non-cash expense, the effective multiple rises to about 27 times after subtracting it. Management's 2026 cash-flow midpoint implies about 21 times, which is reasonable only if durable high-single-digit growth continues.

Big pictureRevenue and cash have compounded steadily, while recurring infrastructure software softens normal economic swings.

Revenue rose from $802 million in 2020 to $1.50 billion in 2025, roughly 13% annual growth, while operating margin improved from 18.7% to 24.1%. Free cash flow more than doubled from about $242 million to $520 million. In the latest quarter, subscriptions supplied more than 92% of revenue, recurring revenue reached a $1.54 billion annualized pace, and existing customers' recurring revenue was 109% of its year-earlier level. Mining and resources remain cyclical, but public works, utilities, and subscriptions diversify that exposure.

Business strengthRecurring revenue is strong, but acquisition-heavy assets and meaningful debt reduce downside protection.

At June 2026 Bentley held about $147 million of cash against $1.22 billion of debt, leaving roughly $1.07 billion of net debt. Goodwill from acquisitions was $2.47 billion, about 69% of total assets, so reported asset value offers limited liquidation protection. Capital allocation is more encouraging: first-half buybacks totaled $125 million versus about $43 million of stock compensation and $42 million of dividends. Second-quarter diluted weighted shares fell about 4% year over year, helped materially by retiring convertible debt rather than issuing shares on conversion.

What could change the storyFaster recurring growth or weaker cash conversion would quickly move the stock away from fair value.

The bull case is sustained recurring-revenue growth near the recent 12% rate, stronger Asset Analytics adoption, and free cash flow near the top of management's $500 million to $570 million range. The bear case is slower growth with weaker cash conversion: first-half free cash flow fell 8% year over year even as revenue rose 13.6%, and operating margin also declined. Reaching the guidance midpoint requires a stronger second half. At roughly 21 times that midpoint, the shares assume several years of solid cash growth, successful product monetization, and manageable debt refinancing.

AI: News

Second-quarter resultsGrowth stayed solid, but a small revenue miss and softer margins produced a cautious market reaction.

On August 6, 2026, Bentley reported $410.7 million of quarterly revenue, up 12.8%, with subscription revenue up 13.6% and annualized recurring revenue at $1.536 billion. Adjusted earnings per share beat the analyst consensus, while revenue was about $1.4 million below it. Operating margin slipped to 21.6% from 23.2%. Shares fell about 2.9% before the market opened; the timing supports a link to the mixed earnings report, but does not prove it caused the full move.

Convertible debt retirementRetiring convertible debt reduced potential dilution, while replacing unusually cheap financing with costlier ordinary borrowing.

On January 15, 2026, Bentley repaid $678 million of 0.125% convertible notes using cash and $610 million drawn from its revolving credit facility. The company said the move reduced the fully diluted share count by more than 10 million shares, or about 3%. It later added a $550 million term loan. The trade-off is clear: dilution risk fell, but interest expense rose because the retired notes carried an exceptionally low coupon, and $575 million of convertible notes still mature in mid-2027.

Asset Analytics acquisitionsTwo acquisitions expanded Bentley's infrastructure analytics opportunity, but undisclosed prices limit return visibility.

On January 5, 2026, Bentley announced the completed acquisitions of Talon Aerolytics and Pointivo technology. The businesses add telecom-tower, electric-utility, drone-data, and automated damage-detection capabilities to Bentley Asset Analytics. Management said the platform had reached an approximately $50 million revenue run rate and was positioned for long-term double-digit growth. Financial terms were not disclosed, so the strategic fit is visible but investors cannot yet judge whether the acquisition prices will earn attractive returns on the additional goodwill and capital employed.

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Revenue

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2025

Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$1.50B	$1.35B	$1.23B	$1.10B	$965.0M	$801.5M	$736.7M	$691.7M
Gross profit	$1.22B	$1.10B	$962.3M	$862.1M	$748.5M	$634.4M	$592.5M	$560.4M
Gross margin	81.52%	80.95%	78.34%	78.44%	77.56%	79.15%	80.43%	81.01%
Research & development	$307.6M	$281.2M	$274.6M	$257.9M	$220.9M	$185.5M	$183.6M	$175.0M
Operating expenses	$861.6M	$793.2M	$731.8M	$653.5M	$653.9M	$484.2M	$450.6M	$439.0M
Operating income	$362.6M	$302.1M	$230.5M	$208.6M	$94.6M	$150.2M	$141.9M	$121.4M
Operating margin	24.15%	22.33%	18.77%	18.98%	9.80%	18.73%	19.26%	17.55%
EBITDA	$431.9M	$382.4M	$296.7M	$280.1M	$147.4M	$186.3M	$174.0M	$150.6M
EBITDA margin	28.76%	28.26%	24.15%	25.49%	15.27%	23.24%	23.62%	21.77%
Net income	$277.9M	$234.8M	$326.8M	$174.8M	$93.2M	$126.5M	$103.1M	$142.1M
Net profit margin	18.50%	17.35%	26.60%	15.90%	9.66%	15.78%	14.00%	20.55%
Basic EPSper basic share	$0.88	$0.75	$1.05	$0.57	$0.30	$0.44	$0.36	$0.50
Diluted EPSper diluted share	$0.85	$0.72	$1.00	$0.55	$0.30	$0.42	$0.35	$0.49

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)46$124.54M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 10, 2026Form 4 · 10b5-1	BENTLEY GREGORY SExecutive Chair & President	SellClass B Common Stock	100	$40.01	$4.0K	7.61M
Nov 17, 2025Form 4	Trimback Thomas FChief Accounting Officer	SellClass B Common Stock	560	$43.02	$24.1K	13.8K
Sep 2, 2025Form 4	BENTLEY GREGORY SExecutive Chair & President	SellClass B Common Stock	37.2K	$54.83	$2.04M	7.58M
Jul 29, 2025Form 4 · 10b5-1	Shaman David R.Chief Legal Officer	SellClass B Common Stock	400	$59.25	$23.7K	647.2K
Jul 14, 2025Form 4 · 10b5-1	Shaman David R.Chief Legal Officer	SellClass B Common Stock	19.3K	$56.96	$1.10M	647.6K

Review ownership filings at SEC.gov ↗

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Bentley Systems Inc (BSY)

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