Bentley Systems (BSY)
NASDAQ:BSY
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Bentley Systems
(NASDAQ:BSY)
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Rating:70Outperform
Price Target:
$34.00
▲(8.63% Upside)
Action:ReiteratedDate:02/27/26
The score is primarily supported by strong underlying financial quality (high margins and strong free-cash-flow generation) and a positive earnings call with solid 2026 growth, margin, and cash-flow guidance plus strong retention metrics. Offsetting these strengths are weaker technicals (still below longer-term moving averages with negative MACD) and a premium valuation (high P/E with a modest dividend yield).
Positive Factors
High recurring revenue and retention
A subscription-heavy model (92% of revenue) with 99% account retention and 109% NRR creates durable, predictable revenue and strong upsell economics. High retention and >100% NRR sustain recurring cash flow and lower sales reinvestment needs over the medium term.
Negative Factors
Elevated leverage vs. best-in-class peers
Leverage, while reduced, remains meaningfully above conservative software peers and constrains financial optionality. Interest and principal obligations limit rapid capital returns or large-scale M&A, and with FCF covering a modest portion of debt, deleveraging is likely to be gradual over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue and retention
A subscription-heavy model (92% of revenue) with 99% account retention and 109% NRR creates durable, predictable revenue and strong upsell economics. High retention and >100% NRR sustain recurring cash flow and lower sales reinvestment needs over the medium term.
Read all positive factors
Bentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.48B
Dividend Yield0.72%
Average Volume (3M)2.67M
Price to Earnings (P/E)51.2
Beta (1Y)0.62
Revenue Growth11.12%
EPS Growth-26.24%
CountryUS
Employees5,500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.27
Shares Outstanding291,357,180
10 Day Avg. Volume2,099,198
30 Day Avg. Volume2,667,207
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)10.10
Price to Sales (P/S)8.00
P/FCF Ratio23.09
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue6.85
Enterprise Value/Gross Profit8.40
Enterprise Value/Ebitda21.58
Forecast
1Y Price Target
$46.63Price Target Upside48.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.38
Revenue Forecast (FY)$1.70B
Bentley Systems Business Overview & Revenue Model
Company Description
Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open simulation appl...
How the Company Makes Money
Bentley primarily makes money by selling software and related services to organizations that design, deliver, and operate infrastructure assets. The company’s revenue model is predominantly recurring: (1) Subscriptions and recurring licenses: Bent...
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.
Data provided by:
The Fly
The FlyBentley Systems Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: durable low-double-digit ARR and revenue growth, strong retention (109% NRR), meaningful margin expansion, robust free cash flow (+24% YoY), and active deleveraging including retirement of convertible debt. Management emphasized AI and asset analytics as strategic growth engines, with asset analytics already at a $50M run rate and several targeted acquisitions enhancing capabilities. Key challenges include services revenue decline in 2025, delays in converting some asset analytics consumption into ARR due to inspection cadences, regional headwinds (notably China), FX pressure on margins, and free cash flow timing variability. Overall, the highlights (growth, profitability, cash generation, AI/asset analytics traction) materially outweigh the lowlights, while the company set a constructive 2026 outlook with continued margin improvement and strong cash generation.Positive Updates
Strong ARR Growth and Scale
Q4 ARR grew 11.5% year-over-year on a constant currency basis, ending the quarter at $1.462 billion. Management projects 2026 constant-currency ARR growth of 10.5%–12.5% and expects quarter-to-quarter ARR seasonality similar to 2025.
Negative Updates
Services Revenue Weakness in 2025
Full-year services revenue declined 6% reported (7% constant currency) in 2025. While Q4 saw a modest sequential increase (4% reported, 2% CC), services remain a lagging area that management expects to recover in 2026 driven largely by Maximo-related activity.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong ARR Growth and Scale
Q4 ARR grew 11.5% year-over-year on a constant currency basis, ending the quarter at $1.462 billion. Management projects 2026 constant-currency ARR growth of 10.5%–12.5% and expects quarter-to-quarter ARR seasonality similar to 2025.
Read all positive updates
Company Guidance
Bentley guided 2026 from a position of strength after 2025: full‑year 2025 revenue was $1.502B (+11% reported, +10% constant currency) with Q4 revenue $392M (+12%/+10% cc); subscription revenue grew 13%/12% and now represents 92% of revenue (E365 = 45% of subscriptions); Q4 ARR was $1.462B (+11.5% cc, +4% sequential) with L12M recurring revenue +12% (93% of total), account retention 99% and net revenue retention 109%; FY adjusted operating income less SBC was $430M (+16%) with a 28.6% margin (Q4 AOI less SBC $94M, 24.1%); free cash flow was $520M (+24%) with FCF margin ~35% and FCF less SBC ~30%; net debt leverage ended ~2.1x, the 2026 convertible was retired (reducing fully diluted shares ~3%), and 2025 cash uses included $93M of acquisitions, $135M debt paydown, $157M share repurchases and $85M dividends while keeping a $1.3B undrawn revolver (+$500M accordion) and capacity for up to ~$400M/year in programmatic M&A. For 2026 management expects total revenue growth of 11–13% CC (implying $1.685–$1.750B at current rates), subscription +11–13% CC, services +15–20% CC, ARR growth 10.5–12.5% CC, adjusted operating income less operating SBC $495–$510M, effective tax ~21%, free cash flow $500–$570M (≈45–50% in H1), and continued ~100 bps of annual margin improvement (with a metric refinement that adds ~50 bps vs. the prior definition).Bentley Systems Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.50B | 1.35B | 1.23B | 1.10B | 965.05M |
| Gross Profit | 1.22B | 1.10B | 910.24M | 862.07M | 748.51M |
| EBITDA | 429.05M | 382.44M | 288.44M | 304.87M | 152.34M |
| Net Income | 277.86M | 234.79M | 326.79M | 174.78M | 93.19M |
Balance Sheet | |||||
| Total Assets | 3.56B | 3.40B | 3.32B | 3.17B | 2.66B |
| Cash, Cash Equivalents and Short-Term Investments | 123.28M | 64.01M | 68.41M | 71.68M | 329.34M |
| Total Debt | 1.28B | 1.43B | 1.57B | 1.82B | 1.49B |
| Total Liabilities | 2.37B | 2.36B | 2.44B | 2.59B | 2.25B |
| Stockholders Equity | 1.19B | 1.04B | 883.28M | 572.75M | 409.22M |
Cash Flow | |||||
| Free Cash Flow | 520.21M | 421.25M | 391.69M | 255.78M | 270.49M |
| Operating Cash Flow | 538.46M | 435.29M | 416.70M | 274.32M | 288.02M |
| Investing Cash Flow | -112.31M | -143.27M | -60.50M | -770.13M | -1.06B |
| Financing Cash Flow | -376.30M | -289.85M | -359.07M | 243.03M | 982.58M |
Bentley Systems Technical Analysis
Negative
31.30
Price Trends
35.55
Negative
37.78
Negative
45.42
Negative
Market Momentum
-0.99
Positive
31.28
Neutral
24.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Negative. The current price of 31.3 is below the 20-day moving average (MA) of 35.81, below the 50-day MA of 35.55, and below the 200-day MA of 45.42, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 24.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.23B | 47.65 | 76.65% | ― | 4.10% | -0.21% | |
72 Outperform | $9.99B | 49.66 | 12.92% | ― | 22.80% | 198.93% | |
71 Outperform | $6.66B | 25.92 | 60.07% | 0.16% | 17.00% | 120.21% | |
71 Outperform | $13.47B | 61.99 | 8.73% | ― | 10.62% | 31.43% | |
70 Outperform | $9.48B | 51.21 | 23.93% | 0.72% | 11.12% | -26.24% | |
68 Neutral | $16.24B | 26.80 | 11.57% | 1.17% | 6.67% | 21.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BSY
Bentley Systems
31.30
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-26.76%
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Bentley Systems Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Bentley Systems Posts Strong Q4 Results and 2026 Outlook
Positive
Feb 26, 2026
Bentley Systems reported on February 26, 2026 that fourth-quarter 2025 revenue rose 11.9% year-on-year to $391.6 million, with subscription revenue up 13% and operating margin improving to 20%, while annualized recurring revenue reached $1.46 bill...
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.