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What this page is: Delvantic's full research page for Bentley Systems, Incorporated Class B (BSY) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-09-11): Designation Watch · Gem Score -7 (−100…+100 Quality+Value blend) · Quality 65 · Value -55 · Sentiment -6 (timing only, not weighted)
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Bentley Systems, Incorporated Class B
BSY NASDAQBentley Systems, Incorporated Class B is the Class B common stock of an infrastructure engineering software company. It provides software solutions that enable infrastructure professionals to design, build, and operate resilient infrastructure across transportation, water, energy, cities, public works, utilities, telecommunications, and urban sectors. The company's portfolio features digital twin technologies, which create engineering-grade digital representations of assets in their built and natural contexts, integrating engineering, operational, geospatial, and subsurface data for improved decision-making throughout the infrastructure lifecycle. Bentley Infrastructure Cloud offers a unified platform for managing project and asset data, leveraging the iTwin platform for connected data environments. Its Asset Analytics applies AI and digital twins to enhance asset performance, including tools like OpenTower iQ for telecom towers and Blyncsy for road networks. Additional capabilities encompass AI-powered applications such as OpenSite+ for civil design, geospatial visualization via Cesium integration, and reality modeling with iTwin Capture. Bentley serves engineering firms, construction companies, and owner-operators, supporting smart construction and data-driven workflows. Founded in 1984 and headquartered in Exton, Pennsylvania, it plays a key role in advancing infrastructure digital transformation.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 0.85
Total Equity: $1.19B
Shares: 333,089,213
Total Debt: $1.25B
Cash: $123.28M
EBITDA: $409.89M
Total Debt: $1.25B
Cash: $123.28M
Revenue: $1.50B
Revenue: $1.50B
Revenue: $1.50B
Total Equity: $1.19B
Tax Rate: 20.8%
Equity: $1.19B
Total Debt: $1.25B
Cash: $123.28M
Current Liabilities: $960.21M
Long-Term Debt: $1.25B
Total Debt: $1.25B
Total Equity: $1.19B
Shares: 333,089,213
Shares: 333,089,213
CapEx: -$18.26M
Shares: 333,089,213
Stock Price: $35.89
Net Income: $277.86M
Industry Benchmarks
Income Statement (Annual)
Last updated: Aug 15, 2026 10:37am (26d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $965.0M | $1.1B | $1.2B | $1.4B | $1.5B |
| Cost of Revenue | $216.5M | $237.0M | $266.1M | $257.8M | $277.5M |
| Gross Profit | $748.5M | $862.1M | $962.3M | $1.1B | $1.2B |
| Operating Expenses | $653.9M | $653.5M | $731.8M | $793.2M | $861.6M |
| Operating Income | $94.6M | $208.6M | $230.5M | $302.2M | $362.6M |
| Net Income | $93.2M | $174.8M | $326.8M | $234.8M | $277.9M |
| EBITDA | $131.4M | $260.4M | $281.4M | $349.8M | $409.9M |
| EPS | $0.30 | $0.57 | $1.05 | $0.75 | $0.88 |
| EPS (Diluted) | $0.30 | $0.55 | $1.00 | $0.72 | $0.85 |
Balance Sheet (Annual)
Last updated: Aug 15, 2026 10:13am (26d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $329.3M | $71.7M | $68.4M | $64.0M | $123.3M |
| Total Current Assets | $615.8M | $415.9M | $419.6M | $442.1M | $539.0M |
| Total Assets | $2.7B | $3.2B | $3.3B | $3.4B | $3.6B |
| Current Liabilities | $593.9M | $628.4M | $760.4M | $814.3M | $960.2M |
| Long-Term Debt | $1.4B | $1.8B | $1.5B | $1.4B | $1.2B |
| Total Liabilities | $2.3B | $2.6B | $2.4B | $2.4B | $2.4B |
| Total Equity | $409.2M | $573.5M | $884.0M | $1.0B | $1.2B |
| Retained Earnings | -$439.6M | -$370.9M | -$161.9M | -$75.9M | -$40.3M |
Cash Flow (Annual)
Last updated: Aug 15, 2026 10:37am (26d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $288.0M | $274.3M | $416.7M | $435.3M | $538.5M |
| Capital Expenditure | -$17.5M | -$18.5M | -$25.0M | -$14.0M | -$18.3M |
| Free Cash Flow | $270.5M | $255.8M | $391.7M | $421.2M | $520.2M |
| Acquisitions (net) | -$1.0B | -$743.0M | -$26.0M | -$130.4M | -$93.3M |
| Net Debt Issued / (Repaid) | — | — | — | — | — |
| Dividends Paid | -$33.4M | -$34.5M | -$58.8M | -$72.1M | -$85.0M |
| Stock Buybacks | -$120.5M | -$28.3M | $0 | -$64.4M | -$125.1M |
| Net Change in Cash | $207.3M | -$257.7M | -$3.3M | -$4.4M | $59.3M |
Growth Trends (YoY %)
Last updated: Aug 15, 2026 10:37am (26d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +13.9% | +11.8% | +10.1% | +11.0% |
| Gross Profit Growth | +15.2% | +11.6% | +13.8% | +11.8% |
| Operating Income Growth | +120.5% | +10.5% | +31.1% | +20.0% |
| Net Income Growth | +87.5% | +87.0% | -28.2% | +18.3% |
| EBITDA Growth | +98.2% | +8.1% | +24.3% | +17.2% |
Dividend History (Last 20)
Last updated: Aug 15, 2026 10:13am (26d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-06-02 | $0.07 | — | — | — |
| 2026-03-10 | $0.07 | — | — | — |
| 2025-12-04 | $0.07 | — | — | — |
| 2025-09-23 | $0.07 | — | — | — |
| 2025-06-03 | $0.07 | — | — | — |
| 2025-03-19 | $0.07 | — | — | — |
| 2024-12-03 | $0.06 | — | — | — |
| 2024-09-17 | $0.06 | — | — | — |
| 2024-06-04 | $0.06 | — | — | — |
| 2024-03-19 | $0.06 | — | — | — |
| 2023-12-01 | $0.05 | — | — | — |
| 2023-08-14 | $0.05 | — | — | — |
| 2023-06-07 | $0.05 | — | — | — |
| 2023-02-17 | $0.05 | — | — | — |
| 2022-11-29 | $0.03 | — | — | — |
| 2022-09-07 | $0.03 | — | — | — |
| 2022-06-08 | $0.03 | — | — | — |
| 2022-03-07 | $0.03 | — | — | — |
| 2021-12-08 | $0.03 | — | — | — |
| 2021-08-31 | $0.03 | — | — | — |
Deep Analysis
Risk : Reward — upside vs downside from this company's own quarters
Not computed yetNarrative Economics
market-narrative step).
Growth Outlook
Analyzed 2026-08-17 16:25The question every valuation on this page silently assumes: is this company likely to grow? Judged forward — the business, its category, the world — against what's already printed.
Claude Reading
Starting from the raw numbers: Bentley is a genuinely good business trading at a demanding price. FY25 revenue of $1.50B grew 11.1% over FY24's $1.35B, continuing a remarkably steady 10-14% band since 2021 ($965M → $1.10B → $1.23B → $1.35B → $1.50B). FCF of $520M on $1.50B revenue is a stunning 34.7% FCF margin, and OCF of $538M on just $18M capex speaks to the asset-light engineering-software model. Gross margin at 81.5% and operating margin expanding from 9.8% (2021) to 24.2% (2025) is real operating leverage. But at $35.89 and ~$11.0B market cap, EV of roughly $12.2B (adding $1.25B debt net of $123M cash) puts EV/FCF at ~23.5x and EV/Revenue at 8.1x — not egregious for an 80%+ gross margin compounder, but not cheap either. The 42.6x P/E overstates the richness because GAAP NI is depressed by intangible amortization; FCF yield of ~4.7% is the honest lens.
Quarterly trajectory is more nuanced than the annual smoothness suggests. Q1'26 revenue of $424.2M vs Q1'25's $370.5M is 14.5% YoY — an acceleration, not deceleration. Net income of $95.4M in Q1'26 vs $91.4M in Q1'25 is only +4.4%, and the seasonal pattern (Q1 margins consistently ~22-25% vs Q2-Q4 in the 13-19% range) suggests Q1 is a subscription-renewal-heavy quarter with front-loaded revenue recognition rather than genuine operating expansion. Earnings CAGR of -7.8% is misleading because FY23 had a $326.8M NI figure inflated by tax/one-time items (NI > operating income of $230.5M is the tell). Normalizing, earnings growth roughly tracks revenue.
Where I disagree with the prior models: the Thesis Evaluation's claim that the market is pricing "22.6% growth" is a strawman derived from reverse-DCF at absurd discount rates. At an 8-9% cost of equity and 3% terminal, ~$520M growing FCF in the 10-12% range for a decade sustains a fair value in the low-to-mid $30s per share — right around today's price. The synthesis "$23.98 fair value" implies either draconian growth deceleration or a punitive discount rate; neither is warranted for a business with 34% FCF margins, an entrenched position in bridge/rail/utility engineering workflows, and switching costs measured in decades of legacy project files. The Market Narrative layer is closer to right: this is anchored, moderate premium, execution-dependent. However, I share the bears' concern about the balance sheet — current ratio 0.56, debt/equity 1.05, and only $123M cash against $1.25B debt is thinner than I want for a company at this multiple; a downturn would force refinancing at less friendly rates. ROIC of 12.4% is decent but not the 20%+ you want for a "monopoly-like" narrative.
The contrarian read on the bull case: infrastructure bill tailwinds have been "coming" for four years and Bentley's growth hasn't accelerated meaningfully above trend. Autodesk's Construction Cloud and civil products are the real threat — not commoditization, but bundling pressure. Insider activity is uninformative (only awards, gifts, in-kind — no open-market buying or selling of size), so no read there. The dating anomaly (2026 quarters and insider dates) suggests the data file is either time-shifted or includes forward-labeled forecast/reported figures; I'm treating Q1'26 as the most recent actual print but flagging this. My verdict: partial agreement with the "fully priced" synthesis but I think their $27 fair value is too low. This is a $32-38 stock on fundamentals — meaning today's $35.89 is fair-to-slightly-rich, not 24% overvalued. A pullback into the high $20s would be a clear buy; here, it's a hold. The synthesis is directionally right (no margin of safety) but overstates the downside. Growth needs to hold 11%+ and FCF margins need to stay north of 32% to justify current levels — both plausible but not guaranteed given the SaaS transition friction and competitive intensification the models correctly flag.
GPT Reading
Bentley looks like a very good business priced like a great one. The raw numbers show a durable infrastructure software franchise: revenue grew from $965.0M in 2021 to $1.50B in 2025, a roughly 11-12% annualized clip, while gross margin stayed elite at 81.5% in 2025 and operating margin expanded to 24.2% from 9.8% in 2021. Cash conversion is the real attraction here. On $1.50B of 2025 revenue, Bentley produced $538.5M of operating cash flow and $520.2M of free cash flow, a 34.7% FCF margin, with only $18.3M of capex. That is not financial engineering; it is a genuinely high-quality software model serving sticky workflows. The latest quarter reinforces the quality angle: Q1 2026 revenue was $424.2M, up 14.5% from $370.5M a year earlier, and net income rose to $95.4M from $91.4M despite already high prior-year profitability. This is not a broken story.
What keeps me from being bullish is that the valuation assumes more than the company has actually demonstrated. At $35.89, the stock trades at about 8.0x sales, 42.6x earnings, and 30.6x EV/EBITDA for a company whose long-run revenue CAGR is 10.6%, with recent YoY growth around 11-15%, not 20%+. Even if I give full credit for the recurring nature of the revenue and the niche moat, that multiple belongs to either a much faster grower or a business with a visibly long runway to margin expansion from here. But Bentley already has 81.5% gross margin and 24.2% operating margin; there is room for some operating leverage, yes, but not enough to justify paying a premium multiple on both revenue and earnings simultaneously. Net debt is also material relative to cash generation: $1.25B debt against only $123.3M cash leaves limited balance-sheet elegance for a company already valued at 10.1x book and carrying a 0.56 current ratio. None of that is alarming operationally, but it matters when the market is granting a near-flawless quality premium.
The quarterly pattern also argues for realism rather than SaaS-style exuberance. Revenue progression is steady rather than explosive: $330.3M, $335.2M, $349.8M, $370.5M, $364.1M, $375.5M, $391.6M, then $424.2M. That's healthy compounding, but it is still the profile of a mature vertical software leader, not an inflecting platform story. Net margins bounce between 12.6% and 24.7% by quarter, and annual net income has not been linear either: 2023 net income of $326.8M was above 2025's $277.9M despite lower revenue, reminding you that the earnings line has noise and should not be capitalized too aggressively. If I value Bentley primarily on what it has proven — low-double-digit top-line growth, elite gross margins, mid-30s FCF margin, and modest margin expansion over time — I struggle to get comfortable above the high-$20s to low-$30s. The business deserves a premium, just not this much of one.
The best case against my view is straightforward: Bentley may be one of the few software companies where “mature” understates the strategic value. A business compounding revenue 11% with 35% FCF margins, 23.4% ROE, and 12.4% ROIC can deserve a scarcity premium if customer switching costs are truly severe and infrastructure digitization expands the addressable market for years. The latest quarter did show acceleration, with revenue up 14.5% and net income margin back to 22.5%, and if that pace sustains, today's 42x P/E can compress faster than bears expect because earnings estimates will keep moving up. The high debt load is also less troubling in the context of $520M of annual FCF; leverage is serviceable. If this is a “compounder you never get cheap,” then waiting for a textbook valuation may mean missing a long run of acceptable, if not spectacular, returns.
What would change my mind is evidence that Bentley is crossing from steady niche incumbent to faster compounding platform. Specifically, I would want to see revenue sustain above 14-15% for several quarters, annual revenue push toward $1.75B-$1.80B without margin sacrifice, and free cash flow remain above 30% of sales while net debt starts to come down meaningfully. That combination would justify paying into the mid-$30s and perhaps higher. Conversely, if quarterly revenue slips back toward 9-10% growth or net margin settles closer to the mid-teens while the stock still commands 8x sales, the valuation air pocket becomes hard to avoid.
Grok Reading
Bentley is a genuine cash compounder dressed in growth-stock clothes. Annual revenue climbed from $965M in 2021 to $1.50B in 2025, a clean ~11–12% trajectory that the most recent quarter extends: Q1 2026 printed $424.2M, up roughly 14.5% from the year-ago $370.5M and accelerating sequentially from $391.6M. Gross margin sits at 81.5%, operating margin at 24.2%, and free cash flow of $520.2M on $1.50B of sales (nearly 35% FCF margin, with only $18.3M of capex) is the standout number in the entire briefing. That cash conversion dwarfs the $277.9M of reported net income and is the real economic engine. Yet the market is paying 42.6x earnings, 8.0x sales and 30.6x EV/EBITDA for a business whose revenue CAGR is 10.6% and whose earnings CAGR is actually negative (-7.8%) because 2023 net income of $326.8M has not been reclaimed. At $35.89 the stock is capitalizing roughly $11B of equity value on a franchise that still carries $1.25B of debt against only $123M of cash and a current ratio of 0.56. The quantitative models’ $27–28 fair-value cluster is not an artifact; it is what 10–12% growth, mid-20s operating margins and a modest terminal multiple actually produce.
The contradiction worth catching is that the market narrative—iTwin/platform monopoly, infrastructure digital-twin TAM, SaaS conversion—has already been written into the multiple even though the reported growth rates have never approached the 20%+ pace that 30x EBITDA normally requires. Net income margins bounce between 12% and 25% quarter to quarter with no clear step-function improvement; the subscription story remains more aspiration than demonstrated acceleration. ROIC of 12.4% is respectable for industrial software but ordinary for a 43x P/E name. Debt-to-equity of 1.05 and the thin cash buffer mean any prolonged growth stumble or acquisition binge would pressure the equity story quickly.
The strongest counter-argument is precisely the FCF quality and the niche lock-in. A smart opponent would note that $520M of free cash flow already covers the entire enterprise at roughly 21x FCF, that 81% gross margins and high switching costs in civil/infrastructure design software are durable, and that the Q1 2026 revenue print plus 18% earnings growth year-on-year could be the first evidence of the long-promised inflection. Global infrastructure spend and the digital-twin overlay give a multi-year tailwind that pure DCF models underweight. Those points are real; I simply weigh them as already more than fully discounted at current levels. Paying 30x EBITDA for mid-teens FCF growth leaves almost no margin of safety if Autodesk pressure intensifies or if the perpetual-to-subscription conversion stalls.
What would flip the view is sustained quarterly revenue growth above 15–16% for two consecutive periods with operating margin expanding through 26–27%, or a clear re-acceleration that makes a 15%+ medium-term CAGR credible rather than aspirational. A material debt pay-down that lifts the current ratio and ROIC would also narrow the valuation gap. Until those numbers appear, the stock looks like a high-quality mature earner priced for a growth rate it has not yet earned.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
Bentley Systems shows the profile of a mature, well-run vertical software franchise. Revenue compounded from $965M (2021) to $1.50B (2025), roughly 12% CAGR, while gross margin expanded from 77.6% to 81.5% and operating margin from 9.8% to 24.1% - textbook operating leverage. FCF scaled from $270M to $520M (35% margin), and OCF/NI at 1.95x with -5.3% accruals confirms earnings are cash-backed. Altman Z of 3.4 sits in the safe zone. Dilution is disciplined: diluted shares grew from 314.6M to 333.1M (1.4% CAGR) and buybacks offset ~98% of the 4.8%-of-revenue SBC. The one real constraint is the balance sheet: net debt of ~$1.13B against only $123M liquid cash. With $520M FCF, that debt is easily serviceable - it is a constraint, not a threat - but it does mean the company runs without a cash cushion. Insider tape shows only awards, tax withholdings, and family gifts from the Bentley clan; no open-market sales of size and no buys. Family-controlled governance with founder alignment appears intact. Overall this reads as a durable niche leader (infrastructure engineering software) with widening margins, clean accruals, contained dilution, and strong FCF conversion. Not a fortress because of the net-debt position and lack of liquidity cushion, but clearly well above average business quality.
Verify before trusting this (5)
- Composition and maturity schedule of the ~$1.25B debt stack
- Recurring/subscription revenue mix and net revenue retention (ARR disclosure)
- Driver of 2023 net income spike and 2024 dip (tax items, FX, gains?)
- Customer concentration in infrastructure engineering verticals
- Bentley family voting control mechanics and any related-party arrangements
The composite fair value sits at $23.98 and the signal-adjusted FV at $27.48, implying roughly 24% downside from $36.24. The DCF ($29.41) and anchored P/E ($28.43) cluster in the high-20s, while the EPV floor at $8.68 is a runaway low-end outlier reflecting a no-growth scenario and should be treated as a stress case, not a target. Triangulating the credible methods, deserved value looks like $27-30 - meaningfully below today's price. Earnings quality is high, so no haircut is warranted; the business quality (score 65, strong) justifies a premium multiple, which is largely why the anchored P/E lands where it does. But that premium is already in the price. What has to go right to justify $36? iTwin adoption must accelerate, subscription ARR compounding must sustain, and competitive pressure from Autodesk and cloud-native entrants must stay muted. That is the bull case as base case - a heroic ask. There is no margin of safety here; you are paying for execution on the platform story with roughly 20-30% air underneath if growth merely normalizes.
Verify before trusting this (5)
- ARR growth and net revenue retention trajectory in latest quarter
- iTwin platform revenue disclosure and adoption metrics
- subscription mix vs perpetual license roll-off pace
- competitive commentary on Autodesk and cloud-native encroachment
- net debt level and capital allocation between buybacks and M&A
The macro tape is mildly supportive - VIX at 14.3, S&P near highs, regime risk-on for 10 days - and with beta near 1.0, BSY neither amplifies nor damps that gentle lift. As a profitable, subscription-transitioning infrastructure software name, it sits in a cohort that benefits from the calm tape but doesn't ride any euphoric AI wave; there is no cult, no mania, no story running hot ahead of numbers. The platform-monopoly narrative (engineering chokepoint, iTwin, ARR compounding) is moderate in intensity and durability - a steady base, not a rocket. On the negative side, the Q2 print drew a 'modestly negative' market response despite beating on non-GAAP profit, which tells you sentiment on the name is picky right now, and third-party letters are openly probing the AI-disruption risk to legacy CAD vendors. Autodesk's own transition drama is a nearby tell that this whole cohort is being re-examined. Net: a light macro tailwind offset by a soft, questioning narrative tone on the specific name - roughly balanced, leaning nowhere hard.
Verify before trusting this (4)
- Whether sell-side targets get trimmed after the Q2 tone or hold firm
- Any hard evidence of iTwin adoption accelerating vs stalling in coming quarters
- Whether AI-native CAD or open-source alternatives start showing up in customer commentary
- Autodesk's trajectory as a read-across for the whole cohort's sentiment
Global infrastructure renewal — grid buildout, water systems, transport, data-center adjacent civil work — is a multi-decade funded cycle, and engineering-grade digital twins sit directly in its path. That is a real structural tailwind and explains Bentley's remarkably low revenue volatility. But the fastest-growing software dollars in this cycle are flowing to cloud-native platforms and AI-assisted design tooling, and Bentley's growth rate says it is capturing the durable, not the incremental, share of that spend. Higher long rates pressure the marginal infrastructure project's financing but rarely the incumbent design toolchain. Net: a company structurally positioned to grow steadily for years, without the mechanism visible today to reaccelerate into the high teens or twenties.