Revenue growth accelerated from 7.4% in 2024Q1 to 12.8% in 2026Q2, with gross margin stable at 82.0% and operating margin fluctuating between 17.6% and 31.1% due to investment cycles, while EPS growth swung from -70.4% in 2024Q4 to +13.6% in 2026Q2.
Bentley Systems, Incorporated (BSY) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 1.6B | 1.5B | 1.35B | 1.23B | 1.1B | 965.05M | 801.54M | 736.65M | 691.71M |
| Revenue Growth % | 12.85% | 10.99% | 10.15% | 11.77% | 13.89% | 20.4% | 8.81% | 6.5% | - |
| Cost of Goods Sold | 290.86M | 277.53M | 257.77M | 318.18M | 237.01M | 216.54M | 167.16M | 144.15M | 131.32M |
| COGS % of Revenue | - | 18.48% | 19.05% | 25.9% | 21.56% | 22.44% | 20.85% | 19.57% | 18.99% |
| Gross Profit | 1.31B | 1.22B | 1.1B | 910.24M | 862.07M | 748.51M | 634.39M | 592.5M | 560.39M |
| Gross Margin % | 81.84% | 81.52% | 80.95% | 74.1% | 78.44% | 77.56% | 79.15% | 80.43% | 81.01% |
| Gross Profit Growth % | - | 11.77% | 20.33% | 5.59% | 15.17% | 17.99% | 7.07% | 5.73% | - |
| Operating Expenses | 933.31M | 861.63M | 793.18M | 679.69M | 653.46M | 653.92M | 484.24M | 450.64M | 439M |
| OpEx % of Revenue | - | 57.37% | 58.62% | 55.33% | 59.45% | 67.76% | 60.41% | 61.17% | 63.47% |
| Selling, General & Admin | 549.31M | 506.88M | 477.93M | 418.65M | 354.49M | 407.4M | 257.24M | 252.87M | 249.96M |
| SG&A % of Revenue | - | 33.75% | 35.32% | 34.08% | 32.25% | 42.22% | 32.09% | 34.33% | 36.14% |
| Research & Development | 324.84M | 307.58M | 281.25M | 274.62M | 257.86M | 220.91M | 185.51M | 183.55M | 175.03M |
| R&D % of Revenue | - | 20.48% | 20.79% | 22.36% | 23.46% | 22.89% | 23.14% | 24.92% | 25.3% |
| Other Operating Expenses | 4M | 47.18M | 34M | -13.58M | 41.11M | 25.6M | 41.48M | 14.21M | 654K |
| Operating Income | 377.88M | 362.62M | 302.15M | 230.54M | 208.61M | 94.59M | 150.15M | 141.87M | 121.39M |
| Operating Margin % | 23.59% | 24.15% | 22.33% | 18.77% | 18.98% | 9.8% | 18.73% | 19.26% | 17.55% |
| Operating Income Growth % | - | 20.01% | 31.06% | 10.51% | 120.55% | -37% | 5.84% | 16.87% | - |
| EBITDA | 467.18M | 428.5M | 366.76M | 294.13M | 280.15M | 139.53M | 186.27M | 174.03M | 147.53M |
| EBITDA Margin % | 29.16% | 28.53% | 27.11% | 23.94% | 25.49% | 14.46% | 23.24% | 23.62% | 21.33% |
| EBITDA Growth % | 18.79% | 16.83% | 24.69% | 4.99% | 100.78% | -25.09% | 7.03% | 17.96% | - |
| D&A (Non-Cash Add-back) | 89.31M | 65.88M | 64.61M | 63.59M | 71.54M | 44.94M | 36.12M | 32.16M | 26.14M |
| EBIT | 412.96M | 363.17M | 317.83M | 224.86M | 233.33M | 107.4M | 174.84M | 137.84M | 122.47M |
| Net Interest Income | -36.89M | -12.44M | -22.04M | -39.79M | -34.63M | -11.22M | -7.48M | -8.2M | -8.77M |
| Interest Income | 2.87M | 2.89M | 2.73M | 1.54M | 421K | 306K | 437K | 1.53M | 842K |
| Interest Expense | 39.76M | 15.32M | 24.77M | 41.33M | 35.06M | 11.53M | 7.91M | 9.73M | 9.61M |
| Other Income/Expense | -4.73M | -11.89M | -8.99M | -47.02M | -12.55M | -1.26M | 15M | -15.03M | -8.53M |
| Pretax Income | 373.14M | 350.73M | 293.16M | 183.53M | 196.06M | 93.33M | 165.15M | 126.83M | 112.86M |
| Pretax Margin % | 23.29% | 23.35% | 21.67% | 14.94% | 17.84% | 9.67% | 20.6% | 17.22% | 16.32% |
| Income Tax | 83.32M | 72.98M | 58.73M | -143.24M | 21.28M | -3.45M | 38.63M | 23.74M | -29.25M |
| Effective Tax Rate % | 22.33% | 20.81% | 20.03% | -78.05% | 10.86% | -3.69% | 23.39% | 18.72% | -25.92% |
| Net Income | 289.97M | 277.86M | 234.79M | 326.79M | 174.78M | 93.19M | 126.52M | 103.1M | 142.11M |
| Net Margin % | 18.1% | 18.5% | 17.35% | 26.6% | 15.9% | 9.66% | 15.78% | 14% | 20.54% |
| Net Income Growth % | 14.04% | 18.35% | -28.15% | 86.97% | 87.55% | -26.34% | 22.72% | -27.45% | - |
| Net Income (Continuing) | 289.82M | 277.86M | 234.43M | 326.77M | 174.78M | 96.78M | 126.52M | 103.1M | 142.11M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -16K | 79K | 133K | 704K | 704K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.91 | 0.85 | 0.72 | 1.00 | 0.53 | 0.30 | 0.42 | 0.39 | 0.54 |
| EPS Growth % | 13.92% | 18.06% | -28% | 88.68% | 76.67% | -28.57% | 7.69% | -27.78% | - |
| EPS (Basic) | - | 0.88 | 0.75 | 1.07 | 0.57 | 0.30 | 0.44 | 0.39 | 0.54 |
| Diluted Shares Outstanding | 318.96M | 333.09M | 333.77M | 332.5M | 331.77M | 314.61M | 299.37M | 261.23M | 261.23M |
| Basic Shares Outstanding | 311.78M | 314.69M | 314.89M | 312.36M | 309.23M | 305.71M | 289.86M | 261.23M | 261.23M |
| Dividend Payout Ratio | - | 30.58% | 30.72% | 17.98% | 19.74% | 35.84% | 334.05% | 24.24% | 14.11% |
Quick answers to the most common questions about buying BSY stock.
For fiscal year 2025, Bentley Systems, Incorporated (BSY) reported total revenue of $1.50B. This represents a 117.1% increase compared to $691.7M in 2018.
Bentley Systems, Incorporated (BSY) is profitable, generating $277.9M in net income for the fiscal year ending 2025 with a net profit margin of 18.5%.
Bentley Systems, Incorporated (BSY) reported an operating income of $362.6M, resulting in an operating profit margin of 24.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Bentley Systems, Incorporated (BSY) generated $1.22B in gross profit for the year, representing a gross profit margin of 81.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
E365 consumption volatility
Metrics are mathematically derived from official filings.
Steady Acceleration in Infrastructure Software
BSY's revenue growth accelerated from 7.4% in 2024Q1 to 12.8% in 2026Q2, reaching $410.7M, driven by sustained demand in Public Works and Resources sectors, as reported in quarterly filings.
The sequential acceleration in revenue growth, from 7.4% in 2024Q1 to 12.8% in 2026Q2, suggests that the company is benefiting from multi-year infrastructure spending tailwinds, particularly in the U.S. and energy transition projects. The consistent double-digit growth over the last four quarters indicates that the demand is not a one-off but reflects a durable shift toward digitalization of infrastructure assets. However, the maintained full-year guidance after a Q2 beat implies that management sees limited upside to current expectations, which may temper expectations for further acceleration.
Gross Margin Resilience Amid Cloud Shift
Gross margin has remained stable around 81-82% over the past ten quarters, with 2026Q2 at 82.0%, indicating that the shift to cloud-hosted Digital Twin environments has not yet eroded the structural profitability of the software model.
Despite the company's migration to E365 consumption-based subscriptions and increased cloud hosting costs, gross margins have held steady in the 80.8% to 82.6% range, suggesting that pricing power and cost controls are offsetting any incremental hosting expenses. The slight dip to 80.8% in 2025Q3 and 2024Q4 may reflect temporary integration costs from acquisitions, but the recovery to 82.0% in 2026Q2 indicates that these pressures are manageable. Investors should monitor whether the scaling of iTwin and Digital Twin implementations, which may require more services, could compress gross margins in the future.
Operating Leverage Fluctuates with Investment Cycles
Operating margin swung from 31.1% in 2025Q1 to 21.6% in 2026Q2, reflecting SG&A and R&D investment cycles, with SG&A rising to $146.1M in 2026Q2, the highest in the period, as per income statement data.
The wide fluctuation in operating margin, from a high of 31.1% in 2025Q1 to a low of 17.6% in 2024Q4, indicates that BSY's operating leverage is not consistently scaling with revenue. The increase in SG&A to $146.1M in 2026Q2, up from $132.7M in the prior quarter, suggests that the company is investing heavily in sales and marketing to capture infrastructure opportunities, which may temporarily suppress operating margins. The R&D line has also grown steadily, from $65.7M in 2024Q2 to $82.1M in 2026Q2, indicating a commitment to product development that could support long-term growth but pressures near-term profitability.
Earnings Quality Tempered by Stock Compensation
Net income quality is mixed: 2026Q2 EPS of $0.25 was boosted by a $42.9M stock-based compensation expense, which is non-cash but dilutive, and the effective tax rate appears volatile, as seen in the 2024Q4 EPS drop of 70.4%.
The reported net income and EPS are significantly affected by stock-based compensation (SBC), which totaled $42.9M in 2026Q2, the highest in the period, representing over half of operating income. This non-cash expense reduces reported earnings but does not impact cash flow, yet it dilutes shareholders over time. The 70.4% year-over-year decline in EPS in 2024Q4, despite only a 12.6% revenue growth, suggests that tax rates or other non-operating items can cause substantial volatility in quarterly earnings, warranting a focus on pre-SBC earnings and normalized tax rates.
R&D and SG&A Escalation Reflects Growth Investment
R&D and SG&A combined grew from $172.4M in 2024Q1 to $228.2M in 2026Q2, outpacing revenue growth, indicating that BSY is deliberately increasing its cost base to support future expansion, as per income statement data.
The combined R&D and SG&A expenses have risen by 32.4% over the period, while revenue grew by only 21.6%, suggesting that the company is investing heavily in product development and go-to-market capabilities. The increase in R&D to $82.1M in 2026Q2, up from $65.7M in 2024Q2, aligns with the company's focus on Digital Twin and iTwin platforms, which are critical for long-term differentiation. However, this cost escalation has compressed operating margins from 27.2% in 2024Q1 to 21.6% in 2026Q2, indicating that the market should expect near-term margin pressure as the company scales these initiatives.
2024Q4 Marks a Profitability Trough
2024Q4 saw the lowest operating margin (17.6%) and net margin (14.3%) in the ten-quarter period, with EPS down 70.4% year-over-year, likely due to elevated costs and tax effects, as reported in financial statements.
The 2024Q4 quarter stands out as a clear inflection point, with operating income of only $61.4M and net income of $50.1M, the lowest in the period, despite revenue of $349.8M. This trough appears to be driven by a combination of higher SG&A ($135.1M) and R&D ($77.1M) expenses, as well as a possible tax-related impact, given the sharp EPS decline. Since then, the company has recovered, with operating margins rebounding to 21.6% in 2026Q2, but the volatility suggests that quarterly profitability can be significantly affected by cost timing and tax items, making it essential to analyze trends over multiple quarters.
Margin Compression and Consumption Volatility Risks
Despite stable gross margins, operating margins have declined from 27.2% in 2024Q1 to 21.6% in 2026Q2, and the shift to E365 consumption-based revenue may introduce unpredictability, as seen in the 2026Q2 revenue dip from Q1.
A short-seller might argue that BSY's operating margin compression, from 31.1% in 2025Q1 to 21.6% in 2026Q2, indicates that the company is losing operating leverage as it invests heavily in growth, and that the E365 model could lead to lumpy revenue recognition. The sequential revenue decline from $424.2M in 2026Q1 to $410.7M in 2026Q2, despite a 12.8% year-over-year growth, may signal consumption volatility as customers adjust to usage-based billing. Additionally, the high stock-based compensation, which reached $42.9M in 2026Q2, could be masking true earnings power, and if the company fails to convert these investments into sustained growth, the premium valuation may be at risk.