Summary of Bentley Systems Q1 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenues: $424 million, up 14.5% year-over-year (11.9% in constant currency).

Subscription Revenue: 93% of total revenues, growing 14.7% (12.2% in constant currency).

Annual Recurring Revenue (ARR): $1.495 billion, with a year-over-year growth rate of 11.5%.

Net Revenue Retention Rate: 109%, consistent with previous quarters.

GAAP Operating Income: $126 million.

Adjusted Operating Income (AOI): $141 million, with a margin of 33.2%.

Free Cash Flow: $188 million for the quarter; $492 million over the last 12 months, up 13%.

Net Debt: Decreased by $134 million, with a leverage ratio of 1.9x adjusted EBITDA.

2Strategic Updates and Business Highlights

AI Initiatives: Bentley is focusing on leveraging AI to enhance its product offerings, particularly through API consumption and automation in engineering workflows.

New Leadership: Bryan Friehauf appointed as General Manager of Bentley Asset Analytics to drive growth.

Sector Performance: The resources sector is the fastest-growing, with strong contributions from Seequent and mining, while public works utilities also performed solidly.

Geographic Growth: The Americas, particularly the U.S. and Latin America, showed strong growth. EMEA was the fastest-growing region despite geopolitical tensions in the Middle East.

Event Strategy: Bentley is decoupling its awards from its user conference to create two distinct events, enhancing focus on both.

3Forward Guidance and Outlook

Bentley expects continued strong performance in 2026, with a focus on maintaining ARR growth and expanding its presence in the resources sector.

The company anticipates stable year-over-year ARR growth rates throughout the year, driven by strong demand in infrastructure and resources.

The financial outlook remains unchanged, with free cash flow expected to be between $500 million and $570 million for the year.

4Bad News, Challenges, or Points of Concern

Perpetual License Revenue Decline: Perpetual license revenues decreased by 18% in constant currency, indicating a shift away from this less predictable revenue stream.

Geopolitical Risks: Ongoing tensions, particularly in the Middle East, have caused project delays and consumption shifts, although strength in other regions has offset this impact.

Churn Management: While overall retention rates remain high, the growing base of the Virtuoso program introduces a higher dollar amount of churn that needs to be managed.

5Notable Q&A Insights

AI Adoption: Customers are increasingly interested in AI capabilities, with large engineering firms leading the way in adopting AI-driven workflows.

Data Ownership: Bentley maintains a principled approach to data stewardship, emphasizing that customer data is not used to train AI unless explicitly permitted, which enhances trust.

Growth Drivers: Key growth drivers include the performance of the resources sector, continued expansion of Bentley Asset Analytics, and successful cross-selling within existing accounts.

Customer Feedback: Positive feedback from clients regarding AI initiatives indicates a strong demand for optimization and automation in engineering processes. Overall, Bentley Systems reported a strong start to 2026, with solid financial performance and strategic initiatives focused on AI and infrastructure growth, despite some challenges related to revenue streams and geopolitical factors.