Bentley Systems Reports 14.5% Revenue Growth to $424.2 Million in Q1 2026

Bentley Systems, Incorporated reported a total revenue of $424.2 million for the three months ended March 31, 2026, marking a 14.5% increase from $370.5 million in the same period of the previous year. The growth was primarily driven by a 14.7% rise in subscription revenues, which reached $392.5 million, while service revenues also saw a significant increase of 29.9%, totaling $22.6 million. However, perpetual license revenues declined by 16.1% to $9.1 million. The company's operating income for the quarter was $126.3 million, up from $115.2 million a year earlier, and net income attributable to Bentley Systems was $95.4 million, compared to $91.4 million in the prior year.

In terms of operational metrics, Bentley Systems reported an annualized recurring revenue (ARR) of $1.5 billion as of March 31, 2026, up from $1.3 billion a year prior, reflecting a constant currency growth rate of 11.5%. The company maintained a dollar-based net retention rate of 109%, slightly down from 110% in the previous year. The total customer count and user engagement metrics were not disclosed in the filing, but the company noted that growth was particularly strong among small- and medium-sized accounts.

The company did not engage in any acquisitions during the first quarter of 2026, but it did report strategic developments in its financial structure. Bentley Systems repaid $678.3 million in convertible senior notes that matured in January 2026, utilizing cash on hand and borrowings from its credit facility. The company also entered into a new $550 million term loan agreement, increasing its total borrowing capacity under the credit facility to $1.85 billion. This move is expected to enhance liquidity and support ongoing operational needs.

On the operational front, Bentley Systems experienced a decrease in cash and cash equivalents, which fell to $105.2 million from $123.3 million at the end of 2025. Cash flows from operating activities were $193.4 million, down from $219.4 million in the prior year, attributed to changes in operating assets and liabilities. The company’s total liabilities decreased to $2.3 billion from $2.4 billion, while total equity increased to $1.2 billion, reflecting a positive shift in the company’s financial health.

Looking ahead, Bentley Systems anticipates continued growth driven by its subscription model and expanding customer base. The company remains focused on enhancing its product offerings and optimizing its operational efficiency to capitalize on market opportunities. However, management acknowledged potential risks related to market conditions and competition, which could impact future performance.