Bentley Systems, Incorporated (BSY) SEC Filings & Earnings Calls

Margin compression from platform investments may persist near-term.

“AOI less SBC margin declined 100bps YoY; CFO notes costs absorbed within margin commitment.”

Convertible notes maturity mid-2027 requires refinancing or cash deployment.

“CFO: 'in anticipation of our mid-2027 convertible notes maturity, we maintain the flexibility to fund programmatic acquisitions and to return capital'”

Increased Operating Expenses

“General and administrative expenses increased 30.8% YoY due to headcount expansion and new enterprise platform costs.”

Interest Expense Increase

“Interest expense increased 147.9% YoY due to higher weighted average interest rates.”

Cloud Cost Pressure

“cost of subscriptions and licenses expenses increased primarily due to an increase in cloud-related costs of $5,683” · word for word

Interest Expense Increase

“Interest expense, net increased compared to the same period in the prior year, primarily due to higher weighted average debt outstanding and higher weighted average interest rates on borrowings following the January 2026 repayment of the 2026 Notes, which had a 0.125% coupon rate.” · word for word

Operating Cash Flow Decline

“Cash flows from operating activities were $193,408 for the three months ended March 31, 2026, compared to $219,415 for the three months ended March 31, 2025” · word for word

Margin compression from AI and platform investments

“Operating margin declined from 31.1% to 29.8%; AOI less Operating SBC margin from 34.6% to 33.2%.”

Free cash flow decline YoY

“Free cash flow decreased from $216.4M to $187.9M YoY.”

Increased debt service obligations may pressure cash flows.

“quarterly amortization equal to 1.25% of the initial aggregate principal amount” · word for word

Controlled Company Structure

“We are a “controlled company” under the corporate governance rules of the Nasdaq Listing Rules because the Bentley Control Group controls a majority of the voting power of our outstanding capital stock.” · word for word

Key Person Dependency

“Gregory S. Bentley, our Executive Chairperson and President, participates in a different incentive plan from the other NEOs, called the Bonus Pool Plan.” · word for word

Demand volatility from infrastructure cycles

“Demand for our software is subject to volatility in our accounts’ underlying businesses, which includes infrastructure projects that typically have long timelines.” · word for word

International revenue concentration and FX risk

“Approximately 59%, 58%, and 58% of our total revenues were from outside the U.S. for the years ended December 31, 2025, 2024, and 2023, respectively. For the years ended December 31, 2025, 2024, and 2023, 33%, 34%, and 35%, respectively, of our total revenues were denominated in a currency other than the U.S. dollar.” · word for word

APAC/China exposure

“Approximately 18% of our total revenues for the years ended December 31, 2025, 2024, and 2023 relate to infrastructure projects in APAC, including China.” · word for word

Tariff and trade war risk

“Recent and potential tariffs imposed by the U.S. government or a global trade war could increase the cost of our products and services and the cost of conducting our business, which could harm our business, financial condition, and results of operations.” · word for word

Net retention rate declined slightly from 110% to 109%, indicating potential slowdown in upsell/cross-sell.

“Last twelve-month recurring revenues dollar-based net retention rate was 109%, compared to 110% for the same period last year.” · word for word

Maturing convertible debt needs to be addressed

“Along with addressing our maturing convertible debt” · word for word

Stock-based compensation dilution offset by repurchases

“stock repurchases to offset stock-based compensation dilution” · word for word

China revenue uncertainty

“Our subscriptions revenues in China decreased primarily due to a decline from existing accounts, partially offset by an increase from new accounts. The future results in China remain uncertain as a result of continued geopolitical challenges, the obstacles there to cloud‑deployed software, and the financial timing impact of the preference there for license s” · word for word

Cloud cost pressure

“Cost of subscriptions and licenses expenses further increased due to an increase in cloud-related costs of $2,980 and $7,435, respectively.” · word for word