Bentley Systems (BSY) Financials

Bentley Systems’ recent results show a business with strong long-term revenue growth and recurring cash generation, but also meaningful leverage, acquisition-related goodwill and quarterly volatility. The latest figures cover the quarter ended June 30, 2026, with prior-year results restated in some periods, so investors should focus on broad trends rather than treating every quarter as directly comparable.

• Revenue continues to expand. Q2 2026 revenue reached $410.7 million, up 12.8% from $364.1 million in Q2 2025 and roughly 43% above Q2 2023. This indicates continued demand for Bentley’s infrastructure engineering software.
• Gross profitability remains exceptionally high. Q2 2026 gross profit was $336.7 million, representing an 82.0% gross margin. That compares with 81.1% in Q2 2025 and 77.6% in Q2 2023, suggesting the company is maintaining substantial pricing power and software-like economics.
• Net income has improved over the longer term. Q2 2026 net income was $78.5 million, compared with $70.5 million in Q2 2025, $72.0 million in Q2 2024 and $48.7 million in Q2 2023. Basic earnings per share also increased to $0.25 from $0.22 a year earlier and $0.16 in Q2 2023.
• Operating cash flow remains consistently positive. Bentley generated $71.5 million of operating cash flow in Q2 2026 and $193.4 million in Q1 2026. Quarterly operating cash flow has generally remained positive throughout the supplied period, supporting dividends, repurchases and debt service.
• Cash reserves have strengthened from earlier periods. Cash and equivalents rose to $147.0 million at June 30, 2026, from $51.3 million in Q2 2024 and $66.9 million in Q3 2023. Total assets also increased to $3.58 billion from $3.16 billion in Q2 2023.
• Shareholder returns remain a capital-allocation priority. Bentley repurchased $85.1 million of common stock and paid $21.2 million in dividends during Q2 2026. The quarterly dividend has risen from $0.03 per share in Q3 2022 to $0.07 in Q1 2026, although repurchases can fluctuate materially from quarter to quarter.
• Operating performance was weaker sequentially. Q2 2026 revenue declined from $424.2 million in Q1, while operating income fell from $126.3 million to $88.6 million. The operating margin dropped to 21.6% from 29.8% sequentially, although the latest quarter was still profitable and revenue growth remained positive year over year.
• Working-capital movements are volatile. Changes in operating assets and liabilities added $59.7 million to operating cash flow in Q1 2026 but reduced it by $34.3 million in Q2. Accounts receivable also increased to $359.2 million from $286.2 million in Q3 2025, making collections and billing trends important to monitor.
• Debt remains substantial relative to cash. Short- and long-term debt totaled approximately $1.22 billion at June 30, 2026, compared with only $147.0 million of cash. Although debt was below the $1.33 billion reported in Q2 2024, Q2 financing activity included $794.4 million of new debt and $693.2 million of repayments, indicating significant refinancing activity.
• The balance sheet is heavily weighted toward goodwill and intangible assets. Goodwill of $2.47 billion and intangible assets of $169.0 million represented approximately 74% of total assets. This structure reflects Bentley’s acquisition history and creates impairment risk if acquired businesses underperform or growth expectations weaken.

Overall, the statements point to a growing, high-margin software company with durable positive operating cash flow and a rising shareholder-return program. The main risks are the sharp sequential decline in operating profitability, volatile working capital, high debt relative to cash and the concentration of assets in goodwill. Investors should watch whether revenue growth remains above 10%, whether operating margins recover from the Q2 2026 dip and whether future cash flow can support debt reduction alongside dividends, buybacks and acquisitions.