📊 BSY Key Takeaways
Investment Thesis
Bentley Systems demonstrates solid fundamental strength with 11% revenue growth, exceptional profitability metrics (81.5% gross margin, 24.1% operating margin), and exceptional free cash flow generation of $520.2M (34.6% FCF margin). The company maintains strong operational efficiency with 47.8x interest coverage, though liquidity constraints and elevated leverage require monitoring.
BSY Strengths
- Outstanding gross margin of 81.5% indicates strong pricing power and operational efficiency in software delivery
- Exceptional free cash flow generation at $520.2M with 34.6% FCF margin demonstrates high-quality earnings conversion
- Strong operational leverage with 24.1% operating margin and 11% YoY revenue growth showing sustainable top-line expansion
- Excellent interest coverage ratio of 47.8x provides substantial debt service cushion despite high leverage
- High ROE of 23.4% demonstrates efficient capital deployment for shareholder returns
BSY Risks
- Weak liquidity position with current ratio of 0.56x raises concerns about short-term obligations coverage despite strong cash generation
- Elevated leverage at 1.05x debt-to-equity ratio limits financial flexibility and increases refinancing risk
- Net income flat YoY despite 11% revenue growth suggests margin pressure from operating expenses or tax headwinds
- High insider activity (36 Form 4 filings in 90 days) warrants monitoring for potential confidence concerns
- Modest cash position of $123.3M relative to $1.2B long-term debt and $2.4B total liabilities
Key Metrics to Watch
- Free cash flow conversion ratio and sustainability of 34.6% FCF margin amid growth scaling
- Quarterly revenue growth rate and operating margin trajectory to identify deceleration
- Debt reduction progress and liquidity improvement to strengthen current ratio above 0.70x
- Net income growth acceleration relative to revenue growth
- Operating cash flow stability and capital expenditure requirements
BSY Financial Metrics
💡 AI Analyst Insight
The 34.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BSY Profitability Ratios
BSY vs Technology Sector
How BENTLEY SYSTEMS INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BSY Balance Sheet & Liquidity
BSY 5-Year Financial Trend
5-Year Trend Summary: BENTLEY SYSTEMS INC's revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.00 reflects profitable operations.
BSY Growth Metrics (YoY)
BSY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $335.2M | $42.3M | $0.13 |
| Q2 2025 | $330.3M | $70.5M | $0.22 |
| Q1 2025 | $337.8M | $70.3M | $0.22 |
| Q3 2024 | $306.6M | $42.3M | $0.13 |
| Q2 2024 | $296.7M | $48.7M | $0.15 |
| Q1 2024 | $314.4M | $45.5M | $0.14 |
| Q3 2023 | $268.3M | $37.0M | $0.12 |
| Q2 2023 | $268.3M | $48.7M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BSY Capital Allocation
BSY SEC Filings
Access official SEC EDGAR filings for BENTLEY SYSTEMS INC (CIK: 0001031308)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | 4 | xslF345X06/tm268358-21_4seq1.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/tm268358-20_4seq1.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/tm268358-19_4seq1.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/tm268358-18_4seq1.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/tm268358-17_4seq1.xml | View → |
❓ Frequently Asked Questions about BSY
What is the AI rating for BSY?
BENTLEY SYSTEMS INC (BSY) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BSY's key strengths?
Outstanding gross margin of 81.5% indicates strong pricing power and operational efficiency in software delivery. Exceptional free cash flow generation at $520.2M with 34.6% FCF margin demonstrates high-quality earnings conversion.
What are the risks of investing in BSY?
Weak liquidity position with current ratio of 0.56x raises concerns about short-term obligations coverage despite strong cash generation. Elevated leverage at 1.05x debt-to-equity ratio limits financial flexibility and increases refinancing risk.
What is BSY's revenue and growth?
BENTLEY SYSTEMS INC reported revenue of $1.5B.
Does BSY pay dividends?
BENTLEY SYSTEMS INC pays dividends, with $85.0M distributed to shareholders in the trailing twelve months.
Where can I find BSY SEC filings?
Official SEC filings for BENTLEY SYSTEMS INC (CIK: 0001031308) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BSY's EPS?
BENTLEY SYSTEMS INC has a diluted EPS of $0.85.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.