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Bentley Systems
(NASDAQ:BSY)
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Rating:65Neutral
Price Target:
$41.00
▲(10.99% Upside)
Action:Downgraded
Date:09/12/26
BSY scores as a solid fundamental business (high margins and strong free cash flow) supported by a constructive earnings update (steady ARR growth, high retention, reaffirmed FCF outlook). The overall score is held back by weak technicals (clear downtrend despite oversold signals) and a valuation that looks rich relative to the modest dividend yield, with leverage and delayed AI monetization adding risk.
Positive Factors
Recurring revenue and retention
Strong recurring growth and retention indicate durable customer dependence on Bentley’s infrastructure software. Expansion within the installed base supports predictable revenue, lowers replacement risk, and creates a foundation for continued cross-selling across long-lived infrastructure workflows.
Negative Factors
Meaningful leverage
Although leverage has improved, debt remains material for a software company and reduces financial flexibility if growth slows or financing conditions tighten. Interest obligations and debt-management needs could constrain investment, acquisitions, or shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and retention
Strong recurring growth and retention indicate durable customer dependence on Bentley’s infrastructure software. Expansion within the installed base supports predictable revenue, lowers replacement risk, and creates a foundation for continued cross-selling across long-lived infrastructure workflows.
Read all positive factors
Bentley Systems Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Bentley Systems is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Bentley Systems is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyBentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.52B
Dividend Yield0.73%
Average Volume (3M)2.63M
Price to Earnings (P/E)41.7
Beta (1Y)0.62
Revenue Growth12.85%
EPS Growth14.73%
CountryUS
Employees5,800
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.92
Shares Outstanding290,577,760
10 Day Avg. Volume2,073,326
30 Day Avg. Volume2,628,592
Financial Highlights & Ratios
PEG Ratio2.50
Price to Book (P/B)10.10
Price to Sales (P/S)8.00
P/FCF Ratio23.09
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue6.65
Enterprise Value/Gross Profit8.13
Enterprise Value/Ebitda22.21
Forecast
1Y Price Target
$44.43Price Target Upside20.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.4
Revenue Forecast (FY)$1.70B
Bentley Systems Business Overview & Revenue Model
Company Description
Bentley Systems, Inc., along with its affiliated companies, delivers specialized software solutions for infrastructure engineering across a global footprint, encompassing the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions....
How the Company Makes Money
Bentley Systems primarily makes money by licensing and subscribing its infrastructure engineering software and related cloud services to organizations that design, deliver, and operate infrastructure. The company’s revenue is largely recurring in ...
Bentley Systems Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial story: solid recurring revenue and ARR growth (ARR +12% YoY CC), high retention (NRR 109%), improving free cash flow (LTM FCF $498M), and strong momentum in strategic areas like PLS and resources. Management emphasized disciplined capital allocation (share repurchases, debt reduction) and significant progress on the infrastructure AI initiative (multiple MCP servers released, open model strategy). Lowlights were largely timing, macro and execution-related (China/geopolitics, FX headwinds, front-loaded investments, lumpy Asset Analytics monetization and the deliberate delay to monetize AI until validated). Overall, positive fundamentals and clear strategic initiatives outweigh near-term risks and timing effects.Positive Updates
Top-Line Revenue Growth
Total revenues of $411 million in Q2, up 12.8% year-over-year (12.2% constant currency); first half revenues up 13.6% (12.1% constant currency). Subscription revenues represented 92% of total and grew 13.6% year-over-year (13.0% constant currency).
Negative Updates
China and Geopolitical Headwinds
China-related constraints remain a headwind: China represents only ~2% of ARR and management highlighted unique geopolitical obstacles in China that limit penetration and growth in that market.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Revenue Growth
Total revenues of $411 million in Q2, up 12.8% year-over-year (12.2% constant currency); first half revenues up 13.6% (12.1% constant currency). Subscription revenues represented 92% of total and grew 13.6% year-over-year (13.0% constant currency).
Read all positive updates
Company Guidance
Bentley reiterated a full‑year free cash flow outlook of $500–$570M (last‑12‑month FCF $498M; burdened FCF $426M), noting H1 free cash flow of $252M (~47% of the full‑year guide, in line with the 45–50% H1 target). ARR ended Q2 at $1.536B (12% YoY constant‑currency, +2.9% sequential), last‑12‑month recurring revenues were $1.486B (+13.5% YoY), subscription revenues comprised 92% of total and grew 13.6% YoY, with constant‑currency net revenue retention of 109% and account retention of 99%. Profitability metrics: AOI less operating SBC was $116M in Q2 (28.3% margin) and $257M in H1 (30.8% margin). Balance sheet/capital allocation guidance included net debt leverage ~1.9x adjusted EBITDA, $1.2B capacity under the credit facility, a closed $550M Term Loan A, continued opportunistic repurchases (3.1M shares in Q2; $155M YTD) and $42M of dividends, with fully diluted shares at ~319M; management cautioned a modest FX headwind (~$5M YTD; a potential $8–10M H2 impact) and said AI monetization is expected to begin after 2026.Bentley Systems Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
63
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.60B | 1.50B | 1.35B | 1.23B | 1.10B | 965.05M |
| Gross Profit | 1.31B | 1.22B | 1.10B | 910.24M | 862.07M | 748.51M |
| EBITDA | 479.64M | 429.05M | 382.44M | 296.72M | 304.87M | 160.19M |
| Net Income | 289.97M | 277.86M | 234.79M | 326.79M | 174.78M | 93.19M |
Balance Sheet | ||||||
| Total Assets | 3.58B | 3.56B | 3.40B | 3.32B | 3.17B | 2.66B |
| Cash, Cash Equivalents and Short-Term Investments | 146.98M | 123.28M | 64.01M | 68.41M | 71.68M | 329.34M |
| Total Debt | 1.27B | 1.28B | 1.43B | 1.57B | 1.82B | 1.49B |
| Total Liabilities | 2.38B | 2.37B | 2.36B | 2.44B | 2.59B | 2.25B |
| Stockholders Equity | 1.20B | 1.19B | 1.04B | 883.28M | 572.75M | 409.22M |
Cash Flow | ||||||
| Free Cash Flow | 498.50M | 520.21M | 421.25M | 391.69M | 255.78M | 270.49M |
| Operating Cash Flow | 522.88M | 538.46M | 435.29M | 416.70M | 274.32M | 288.02M |
| Investing Cash Flow | -118.44M | -112.31M | -143.27M | -60.50M | -770.13M | -1.06B |
| Financing Cash Flow | -343.73M | -376.30M | -289.85M | -359.07M | 243.03M | 982.58M |
Bentley Systems Technical Analysis
Positive
36.94
Price Trends
34.45
Positive
33.37
Positive
34.22
Positive
Market Momentum
1.30
Negative
72.50
Negative
93.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Positive. The current price of 36.94 is above the 20-day moving average (MA) of 34.80, above the 50-day MA of 34.45, and above the 200-day MA of 34.22, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 72.50 is Negative, neither overbought nor oversold. The STOCH value of 93.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSY.
Bentley Systems Risk Analysis
Bentley Systems disclosed 37 risk factors in its most recent earnings report. Bentley Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bentley Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.00B | 18.73 | 32.64% | ― | 19.50% | 143.45% | |
75 Outperform | $7.79B | -60.09 | -8.33% | ― | 22.90% | 61.40% | |
73 Outperform | $9.23B | -233.73 | -3.13% | ― | 15.41% | 73.03% | |
70 Outperform | $500.30M | 32.79 | 5.40% | ― | 10.14% | -10.93% | |
67 Neutral | $18.14B | -30.30 | -18.85% | ― | 13.98% | -27.86% | |
65 Neutral | $11.52B | 41.70 | 24.10% | 0.73% | 12.85% | 14.73% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BSY
Bentley Systems
39.41
-11.51
-22.61%
PTC
PTC
194.00
-10.67
-5.21%
MTLS
Materialise
8.53
2.45
40.30%
U
Unity Software
40.27
3.98
10.97%
PCOR
Procore Technologies
62.29
-11.20
-15.24%
TTAN
ServiceTitan, Inc. Class A
85.20
-13.22
-13.43%
Bentley Systems Corporate Events
Business Operations and StrategyDividends
Bentley Systems Declares Third-Quarter Cash Dividend Payment
Positive
Sep 11, 2026
On September 11, 2026, Bentley Systems announced that its board of directors declared a third-quarter cash dividend of $0.07 per share for its Class A and Class B common stock. The dividend is scheduled to be paid on September 29, 2026, to shareho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.