Bentley Systems — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the quarter ended September 30, 2026, were $421.5 million, an increase of 12.2% (12.7% on a constant currency basis) year-over-year.
• Subscription revenues were $386.8 million, up 12.4% (12.9% on a constant currency basis) year-over-year.
• Annualized Recurring Revenues (ARR) reached $1,582.8 million as of September 30, 2026, compared to $1,405.2 million in the prior year, representing a 13% constant currency growth rate.
• The last twelve-months recurring revenues dollar-based net retention rate was 110%, compared to 109% in the prior year.
• Operating income margin was 29.1%, up from 22.5% in the prior year.
• Adjusted operating income less operating stock-based compensation expense (AOI less Operating SBC) margin was 32.1%, up from 28.1% in the prior year.
• Net income per diluted share was $0.29, compared to $0.18 in the prior year.
• Adjusted net income per diluted share (Adjusted EPS) was $0.36, compared to $0.27 in the prior year.
• Cash flows from operating activities were $109.4 million, down from $116.4 million in the prior year.
• Free cash flow was $101.4 million, down from $110.7 million in the prior year.
• For the nine months ended September 30, 2026, total revenues were $1,256.4 million (up 13.2% or 12.3% constant currency), subscription revenues were $1,157.9 million (up 13.5% or 12.7% constant currency), and operating income margin was 26.9%.
• Nine-month Adjusted EPS was $1.09, compared to $0.94 in the prior year.
• Nine-month free cash flow was $353.1 million, compared to $384.0 million in the prior year; last twelve-months free cash flow was $489.3 million, compared to $460.1 million.
• Net debt leverage was 1.7 times.

Guidance and Future Outlook:

• Management raised the constant currency ARR year-over-year growth range for the full year to 12.5-13.5%, excluding the impact from the Cohesive divestiture.
• Revenues excluding the Cohesive divestiture, AOI less Operating SBC, and free cash flow remain on track to deliver within their respective outlook ranges.
• The company has ample financial flexibility to fund programmatic acquisitions, return capital through dividends and opportunistic share repurchases, and repay 2027 convertible notes at maturity.

Business Segments and Product Lines:

• Growth was driven by strength in the Resources segment and continued momentum in Public Works & Utilities.
• Nearly 70% of finalists at the Year in Infrastructure Awards leveraged AI in their projects.
• The acquisition of Eliis, completed on October 29, 2026, is expected to complement the Seequent subsurface portfolio by expanding seismic interpretation capabilities.

Market and Competitive Landscape:

• Engineering firms are benefiting from an unprecedented level of investment in infrastructure for AI.
• Bentley's software is used at machine speed to expand engineering capability to deliver better, more resilient infrastructure.

Risks and Challenges:

• Forward-looking statements note risks including adverse changes in global economic/political conditions, tariffs, sanctions, and regulatory changes.
• Risks include failure to retain personnel, manage succession, or successfully integrate acquired businesses.
• Potential impacts from artificial intelligence on business strategy and the competitive environment are noted.

Management Commentary and Tone:

• Executive Chair Greg Bentley stated that the progression of ARR growth to 13% reflects robust end markets and client confidence in infrastructure AI trajectories.
• CEO Nicholas Cumins highlighted accelerated growth driven by Resources and Public Works & Utilities, noting the unique positioning to unlock AI potential for infrastructure.
• CFO Werner Andre expressed confidence in raising the ARR growth range, citing strong Q3 results and the programmatic acquisition of Eliis.

Other Key Points:

• On October 13, 2026, the company completed the divestiture of Cohesive (IBM Maximo-related services) by contributing it to Naviam in exchange for an equity interest and warrants.
• On October 29, 2026, the company completed the acquisition of Eliis, a seismic interpretation software company.
• The company has a revolving credit facility and intends to repay 2027 convertible notes at maturity.
• Non-GAAP measures were adjusted in 2026 to include cash- and equity-settled retention incentives for acquired employees and integration costs.
• A live Zoom video webinar was hosted on November 5, 2026, to discuss results.