A maker of infrastructure engineering software, Bentley Systems builds the tools used to design, build, and operate roads, bridges, water systems, power grids, and other public works, with products like MicroStation and the iTwin Platform for digital twins, plus subsurface specialist Seequent. The company was founded in 1984 by brothers Keith and Barry Bentley, who began by writing software that let engineers do CAD work on cheap desktop terminals instead of costly mainframes. Fun fact: the name comes from the Bentley brothers themselves—Keith, Barry, and several siblings all worked at the company.
Interest expense more than doubled to $9.1M after the January 2026 debt repayment, while the net retention rate held at 109%.
The cost of Bentley's debt refinancing landed this quarter. rose 12.8% to $410.7 million and widened 0.9 points to 82.0%, but climbed 158.7% to $9.1 million after the company repaid low-coupon notes and borrowed at higher rates. The core subscription engine is intact, but higher financing costs are now a recurring drag on .
Key takeaways
, net rose 158.7% to $9.1 million, the direct result of repaying the $677.8 million 2026 Notes in January 2026 and replacing them with borrowings at higher interest rates.
Subscription grew 13.6% to $378.6 million, led by Bentley Open Applications, Seequent applications, and Bentley Infrastructure Cloud, with existing account expansion as the primary driver.
reached $1.54 billion on 12% constant-currency growth, and the held steady at 109%.
Section summaries
Management's Discussion and Analysis
Total revenues rose 12.8% to $410.7M in Q2 FY2026, driven by 13.6% subscription growth and led by existing account expansion.
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Subscriptions grew 13.6% (13.0% ) to $378.6M, led by Bentley Open Applications, Seequent applications, and Bentley Infrastructure Cloud.
General and administrative expenses rose 30.8% to $65.2 million, driven by higher headcount costs, a new enterprise platform go-live, and $2.2 million in non-recurring corporate initiative costs.
rose 4.9% to $88.6 million, but narrowed 1.6 points to 21.6% as total operating expenses grew faster than .
rose 11.9% to $63.8 million for the quarter, while first-half of $264.9 million was down from $280.5 million a year ago on timing of collections and income tax payments.
What changed
The Q1 FY2026 watch item on the impact of borrowings used to repay the 2026 Notes has materialized: rose to $9.1 million from $3.5 million a year ago, confirming higher financing costs as a recurring drag.
The , unreported in Q1 FY2026, was disclosed this quarter at 109%, unchanged from FY2025 and Q3 FY2025, indicating stability in existing-account expansion after prior fluctuations.
narrowed to 21.6% from 23.2% a year ago and from 29.8% in Q1 FY2026, as the 18.2% operating expense growth flagged last quarter continued, driven this time by a 30.8% rise in G&A.
New account growth from small- and medium-sized businesses remained at 3%, unchanged from Q1 FY2026 and consistent with the modest contribution flagged throughout FY2025, leaving existing-account expansion as the primary growth engine.
What to watch
Whether remains near $9 million per quarter or rises further as the full impact of the replacement borrowings flows through the income statement.
Whether the holds at 109% or resumes its historical pattern of fluctuation, and whether new account growth can rise above 3% to sustain the 12% constant-currency growth rate.
The trajectory of G&A expenses after the 30.8% increase, and whether the $2.2 million in non-recurring corporate initiative costs are truly one-time or signal a higher baseline.
Whether recovers in the second half after the first-half decline in , and whether the preliminary favorable impact from the One Big Beautiful Bill Act provides a measurable lift in 2026.
increased to $88.6M from $84.4M, while AOI less Operating rose to $116.0M from $106.8M.
General and administrative expenses jumped 30.8% to $65.2M due to higher headcount costs, a new enterprise platform go-live, and $2.2M in non-recurring corporate initiative costs.
, net surged 158.7% to $9.1M following the January 2026 repayment of low-coupon 2026 Notes and subsequent borrowings at higher rates.
was $264.9M for the six months, down from $280.5M, primarily on timing of collections and income tax payments.
reached $1.54B with 12% growth, and the recurring revenues held steady at 109%.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our market risk exposure as described in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report on Form 10‑K.
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There have been no material changes in our market risk exposure as described in Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report on Form 10‑K.
We are subject from time to time to various legal proceedings and claims which arise in the ordinary course of our business. Although the outcome of these and other claims cannot be predicted with certainty, we do not believe that the ultimate resolution of pending matters will…
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We are subject from time to time to various legal proceedings and claims which arise in the ordinary course of our business. Although the outcome of these and other claims cannot be predicted with certainty, we do not believe that the ultimate resolution of pending matters will have a material adverse effect on our financial condition, results of operations, or cash flows. We currently believe that we do not have any material litigation pending against us.
There have been no material changes from the risk factors previously disclosed in Part I, Item 1A. Risk Factors in our 2025 Annual Report on Form 10‑K.
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There have been no material changes from the risk factors previously disclosed in Part I, Item 1A. Risk Factors in our 2025 Annual Report on Form 10‑K.