Bentley Systems (BSY) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with 12.8% year-over-year revenue growth and 12% ARR growth, driven by robust demand in infrastructure engineering, resources, and AI-led solutions.

• Maintained high net revenue retention (109-110%) and account retention (99%), reflecting durable recurring revenue streams and strong customer engagement.

• AI strategy is central, with rapid adoption of MCP servers, digital twin technologies, and open integration with third-party AI assistants, positioning for future monetization.

• Significant penetration among top global design firms and infrastructure owners, with over 80% of ex-China top owners' assets managed by accounts.

• Net income per diluted share was $0.25, up from $0.22; adjusted EPS was $0.35, up from $0.32 year-over-year.

Financial highlights

• Q2 revenues reached $411 million, up 12.8% year-over-year; subscription revenues comprised 92% of total and grew 13.6%.

• Last 12 months recurring revenues were $1,486 million, up 13.5% year-over-year; ARR at quarter-end was $1,536 million, up 12% constant currency.

• Free cash flow for the last 12 months was $498 million, up 15%; Q2 free cash flow was $63.8 million, up from $57.0 million.

• Adjusted operating income less SBC was $116 million for Q2 (28.3% margin); adjusted EBITDA was $143.4 million, up from $129.3 million year-over-year.

• Net debt reduced by $32 million; $155 million deployed for share repurchases and $42 million for dividends in H1.

Outlook and guidance

• On track to meet full-year free cash flow outlook of $500–$570 million; FY2026 revenue guidance: $1,685M–$1,715M (+11% to 13% YoY in constant currency).

• ARR growth expected at 10.5%–12.5% in constant currency.

• Not planning to monetize AI-driven workflows in 2026; monetization expected to begin in 2027 with a focus on value-based, usage-driven models.

• Committed to annual constant currency margin improvement and disciplined expense management.

• Ongoing investments in cloud and enterprise platforms are anticipated to impact general and administrative expenses.