Bentley Systems, Incorporated

Good morning and thank you for joining Bentley Systems Q2 2026 results. I'm Eric Boyer, Bentley's Investor Relations Officer. On the webcast today, we have Bentley Systems Executive Chair, Greg Bentley, Chief Executive Officer, Nicholas Cumins, and Chief Financial Officer, Werner Andre. This webcast includes forward-looking statements made as of August 6, 2026 regarding the future results of operations and financial position, business strategy and plans, and objectives for future operations of Bentley Systems, Incorporated. All such statements Thank you for your interest and attention.

Bentley Systems' positively exemplary operating results for 26Q2 and the year as we see it accord with our expectations to sustain foreseeably our dependable double-digit growth record. Early in 2025, I quantified that our outlook range for last year would serve to at least double over the five years following our 2020 IPO the key financial metrics of ARR, Revenues, profitability, and SBC-burdened free cash flow, and it can be confirmed that we met those thresholds. In now updating this and looking forward, a significant factor in my confidence is the boundless regeneration of demand within our infrastructure engineering end markets, With high economic returns globally and across sectors on investments in resilience, capacity, and self-sufficiency. Within these priorities, relative proportions fluctuate, presently most benefiting our offerings for integrated grid and for subsurface resources. But infrastructure engineering consumption has tended overall to remain predictably consistent, perhaps due to the constancy of engineering resource constraints. To finally alleviate this engineering capacity bottleneck and thus further realize infrastructure investments potential through AI enablement is everyone's appropriate priority as the resulting benefits from improved infrastructure engineering throughput and quality will be broadly shared across project delivery firms and infrastructure owner-operators and all of us as their constituents. Bentley Systems will especially benefit as our successive and multifaceted hybrid AI innovations continue for years to come on stream. I expect the established attended consumption of our software to continue growing as every day for every engineer will become increasingly valuable at the helm of ever more specialized AI leveraging applications. But this business model will in due course be supplemented and potentially multiplied by monetizing agentic API consumption of our modeling and simulation software, primarily to optimize designs at machine speed, accelerating the proprietary AI strategies of infrastructure engineering firms. And our emerging asset analytics offerings, monetized through asset consumption subscriptions per asset, are breaking through to finally leverage digital twins in operations and maintenance for infrastructure owner operators. Adding to my confidence in looking forward, these incremental AI-led consumption opportunities are uniquely accessible to Bentley Systems by virtue of our established positioning as the major comprehensive infrastructure engineering software provider across both the leading infrastructure project delivery and owner-operator enterprises. We have earned our standing as trusted digital quartermaster for each of these major infrastructure engineering organizations over decades of proactively embracing and incorporating potentially disruptive technologies and business models so that no one ever needs to start over in order to stay ahead of the innovation curve. In my now long experience The winning strategy for every technology opportunity is hybrid, integrating, in this case, AI advances within a creative overall continuity. Facilitating progressive enterprise AI adoption is the invigorating current priority for our thousand success force engineers embedded in E365 accounts. Last quarter I talked about AI's auspicious economic leverage for engineering firms, whose work pre-AI has been constrained by the limiting supply of infrastructure engineers. Underscoring our incumbency advantage in helping these firms to leverage their engineers with AI-agentic assistance to perform more work, and particularly to optimize designs, 470 Thank you for watching. Bentley Infrastructure 500 Top Owners Rankings. The upcoming 2026 BI500 will be published on Bentley.com. The most recent 2025 BI500, it no longer includes Russia, own and manage about $21 trillion of net infrastructure assets. Not quite half of those top owners assets are in the public works slash utilities infrastructure sector, Followed by industrial and then resources sectors, which together comprise most of the balance. In net asset proportions, the top owners are located about half of the Americas, followed by EMEA and Asia-Pacific. In particular, the 43 top owners in China account for just under 10% of these assets, and because it's with Chinese state owners that we encounter unique geopolitical obstacles currently, To quantify BSY penetration, the following charts are ex-China. Over three quarters of the ex-China top owners, managing well over 80% of such infrastructure assets, are BSY accounts. Excluding top owners in the commercial slash facility sector, where we are less focused, 90% of ex-China top owners' infrastructure assets are managed by BSY accounts. 153 ex-China top owners, holding the majority of these accounts' net infrastructure assets, have already adopted Bentley Infrastructure Cloud, with most using ProjectWise. They are thus accumulating engineering data for delivered projects, which will make AI-enabled digital twins more valuable. In quantifying BSY spending by these top owners, I use current year run rate, which beyond ARR includes our relatively minor amounts of license sales, professional services, and other subscriptions to fully capture the offerings, which are exclusive to owner-operators, of Cohesive and Fortnest Analytics. These 346 top owner accounts spent annually over $330 million in run rate with us, Averaging about $1 million per year for those not in the commercial slash facility sector and collectively representing about 20% of our overall business. Accordingly, annual BSY expenditures currently average $21 per million of the $15.5 trillion of net infrastructure assets owned by these 346 ex-China top owners, who are BSY accounts. In introducing and fully developing infrastructure AI, it is a tremendous and literally unique advantage for Bentley Systems to be in the pole position with virtually all of the infrastructure engineering organizations with the most to gain in both project delivery and operations and maintenance. For every top design firm and top owner account, infrastructure engineering and hence Bentley Systems are mission-critical factors of their production. It is certain that in each case, their current expenditure levels on software in proportion to their respective engineering labor costs and asset values will be multiplied by orders of magnitude as AI is inexorably and advantageously integrated to improve infrastructure capacity, quality, and economics. In sum, I believe this enterprise account springboard will continue, foreseeably, to improve Bentley Systems' own economics and growth prospects. So at this point in time, when investable sectors seem ever more subject to comparisons from first principles, let's update our own point of departure. Free cash flow as a valuation benchmark has the advantage of meaningful commonality across investment sectors. However, it's uniquely salient for software, in particular given the opacity of 606 subscription accounting, other than for BSY, with our consumption-dominated revenues being recognized primarily ratably to the virtual exclusion of multi-year noise. Here is shown the past five years of BSY's free cash flows, aggregated within trailing four quarters, ending in each Q2 for comparison to the latest for 26 Q2. Over this period, these annual cash flows compounded at an average rate of 14.7% annually to reach $498 million over the last 12 months. For mature software companies, another rightful valuation consideration is stock-based compensation Given its prevalence and typical magnitude, I don't consider that cash flow should be counted as free to the extent that it needs to be extended for stock repurchases to offset resulting dilution. Shown here as accordingly offsetting free cash flow is BSY's operating, that is, not acquisition-related, stock-based compensation for these periods. The remainder is BSY's truly free cash flow as burdened Thank you very much. Over the last four years, this valuation metric, which to me seems most economically appropriate to us shareholders. And consistent with Bentley Systems' conscientious stewardship of stock-based compensation, over most of our public history, we have tended to allocate free cash flow to stock repurchasing in approximate keeping with annual requirements to offset SBC dilutions. Here are the quarterly expenditure amounts for all repurchases, including de facto repurchases associated with net distributions, through this period up until 25Q3. Even though BSY has had a discretionary share repurchasing authorization throughout, there hasn't been a very significant opportunistic, that is, inverse correlation between our share price and overall repurchase expenditures. What changed since late last year is By then, we had resolutely worked down the debt leverage we incurred to finance the platform acquisitions of Sequent and Powerline Systems in 2021 and 2022 to a tolerably optimum range of about 2x. This has enabled us since then to allocate more capital to discretionary stock repurchases without impinging either on ongoing cash flow funding for programmatic acquisitions, nor on balance sheet preparedness for potential larger scaled platform acquisitions. What eventuated during 26Q2 was a stock price which, at our marginal financing cost, enabled repurchasing to be accretive just on financial fundamentals to a significant and reasonable basis for valuation. We variously repurchased 3.1 million shares during 26Q2 and subject to remaining within an optimal leverage range, I expect us to continue to responsibly act upon any such opportunities going forward. Indeed, the net result of this SPC and corresponding repurchasing discipline over this period has been to avoid share dilution. Shaded here at top is the portion of our fully diluted shares attributable to our convertible debt. In fact, the redemption of our 2026 maturing convertible debt during 26Q1 reduced our fully diluted share count by about 3%, as will presumably recur in 27Q3 with the maturity of our remaining convertible debt. So, reflecting a compounded average growth rate of negative 1% through this period, at the end of 26Q2, our fully diluted share count was down to and we thank you for being among or interested in becoming or informing those of us who are the holders of those shares. And now, over to Nicholas and then Werner to cover this quarter's developments. Thank you.

Thank you Greg. We had another strong quarter executing consistently against a backdrop that keeps working in our favor. The world needs more infrastructure and resources, and it needs them faster that they can be delivered. Everywhere we look, across accounts large and small, the constraint is the same. There are not enough engineers. Which is why engineering productivity, making every engineer both more efficient and more effective, is at the core of our AI strategy. Let me pick up the AI thread from last quarter. At the end of 2025, We launched our infrastructure AI initiative, and last quarter, I reported that leading engineering firms and owner-operators were asking us to instrument our applications to power their own AI-driven workflows. I also shared that we had released our first NCP server for STAG. This quarter, I want to show you how far we have come and why we are confident in the approach. Our conviction is that when it comes to nation-critical infrastructure engineering, Our applications and today's AI models are far more powerful together than apart because each does something the other cannot. Our applications are deterministic. They perform the engineering itself, the modeling, the analysis, and the simulation. And that work is trusted because it has been proven over decades, embedded in workflows across infrastructure value chains. AI models are different in nature. They are probabilistic. What they contribute is natural language processing, high-level reasoning, and the ability to break a problem down and generate the instructions that our applications then execute with enduring precision. The MCP server is the interface between the two, turning the AI's instruction into real, validated work inside the application. One point I want to stress, we are deliberately open. This is not a walled garden. Our accounts can pair our applications with whichever assistant and whichever model they have standardized on, whether Bentley Copilot, Anthropic Cloud, Google Gemini, or OpenAI ChatGPT. Our aim is to be the trusted engineering layer beneath all of them, whichever AI model happens to lead at a given time. Now to the progress. Last quarter, we had released a first NTP server for STAAD. Since then, we have released five more across Bentley open applications, with more to come. The response from our accounts has been very positive, whilst they grasp what is possible. This is still early, and a great deal of our work today is education on two fronts. First, we are helping users cut through the considerable noise around AI, and we have made this a priority, with several campaigns underway to show what is generally achievable now. Second, we're staying close to our accounts as they adopt. And here, application engineers and solution architects are proving invaluable, serving in effect as 4G cloud engineers, helping our accounts evaluate and integrate these new capabilities into their workflows. Finally, on the commercial model, as discussed last quarter, our next steps were to instrument more applications and to validate the commercial model for this new usage pattern. The first is well underway. On the second, Our priority remains in order, adoption, exploration, and validation, with monetization to follow, and we continue to be transparent with our accounts about the sequence. Earning adoption and trust first is precisely what will let us capture our fair share of the value that will be created as our applications are used at machine speed with AI. Now turning to our business highlights. Our year-over-year ARR growth for Q2 accelerated to 12%. Our net revenue retention rate remained high at 109%, consistent with previous quarters, and endoscoring the stability and growth within our existing accounts. Our Enterprise 365 commercial program continues to drive steady growth. We were particularly pleased with our renewals in the quarter, as Q2 is typically our second largest quarter for renewals. This strong performance gives us confidence for the rest of the year. New logos contributed again 300 basis points of AR growth, primarily within the SMB segment. Through Virtuoso, our flagship commercial program for SMB accounts, we again added over 600 new logos in Q2. The underlying SMB market sentiment remains positive, with accounts reporting healthy product backlogs extending well into 2027. Accounts are increasingly viewing Bentley technology as part of their business backbone, rather than point solutions for specific projects, which validates our cross-selling and upselling efforts. Turning to our performance by infrastructure sector, resources were our fastest growing sector in total, driven by mining once again, with strengths across geographic regions. The fundamental drivers for this demand are macroeconomic and long-term. Countries around the world are increasingly prioritizing self-sufficiency given ongoing geopolitical tensions and supply chain disruptions. In addition, the global push for electrification, including to power AI data centers, also depends on securing critical minerals. Our largest sector of public works and utilities delivered another strong quarter, driven by sustained infrastructure investment worldwide. Within public works and utilities, Thank you very much. In the Americas, our largest region, the U.S. continues to deliver strong growth. The underlying fundamentals of our accounts remain very strong, characterized by double-digit backlogs and a bullish outlook on their long-term growth, driven primarily by transportation, water, power, and data centers. Public funding at the federal and state level remains robust, supplemented by a healthy influx of private capital funding. Latin America delivered another very strong quarter led by mining and an increased focus on transportation in the region. EMEA delivered a solid quarter as the overall region remains well invested. The quarter benefited from strong renewals at a number of large accounts. Large ongoing national infrastructure programs are driving demand in the UK. Fundamentals in Europe are also strong. In Germany, while the 500 billion euro infrastructure fund is in place, actual deployment has been slow as early funds are backfilling existing deficits, delaying the impact on new projects. In the Middle East, despite the ongoing conflicts, accounts have returned to work, consumption has rebounded, and deals are progressing again. Asia-Pacific delivered strong growth, with Australia leading the way as performance bounced back strongly. followed closely by India. China, representing only about 2% of ARR, continues to operate against the same economic and geopolitical headwinds. Across most of the region, rail is a massive long-term opportunity with major projects in Australia, India, the Philippines, and in Indonesia. Offshore oil and gas is also an investment priority across the region, driven by major field developments in Southeast Asia, and offshore redevelopment in India. We are well positioned for this work with our SACS offshore design and analysis engine. Now, I would like to highlight the continued outperformance of our power line systems. PLS is the gold standard for the design and analysis of overhead electric power transmission and distribution lines and their structures. It is part of a broader electric grid portfolio encompassing open utilities, Substation Plus and Spyda that together allows us to address the full spectrum of grid infrastructure from transmission and distribution to substations. Looking back four and a half years since the acquisition, PLS has become a vital part of our core business and the foundational pillar of our electric grid offering. We have also seen significant growth internationally Leveraging Bentley's established global reach and go-to-market engine. In fact, PLS revenue outside of the US is now as large as the entire PLS business was when we acquired it in 2022. Reliable energy delivery is more critical now than ever as electrification and the rapid expansion of AI data centers place unprecedented stress on the global grid. In the US alone, The network requires an estimated 35 gigawatts of additional capacity by 2030. PLS software is instrumental in bridging this power gap. We're seeing our users apply PLS at impressive scale to overcome real-world physical and operational challenges. For instance, EXO digitally stress-tested century-old transmission towers spanning the Ohio River. allowing the UDT to engineer targeted stabilization that saved $80 million and avoided up to a decade of permanent delays. And when 120 miles an hour winds destroyed a transmission corridor in Illinois, Toth and Associates used PLSCAD to redesign the network digitally, accelerating the rebuild to restore power 18 days ahead of schedule. The vibrancy of this ecosystem was on full display during Q2 at our bi-annual PLS User Group Conference in Madison, Wisconsin, which threw more than 500 attendees from nearly 300 companies, including over 90 utilities, representing 20 countries. A central theme of the conference was AI, where we announced three new NCP servers for PLS products, including PLS Grid. This is an important milestone because it demonstrates how, with MCP servers, we can empower AI systems to not only interact with engineering applications, but also directly with rich engineering data. By connecting AI systems to PS Grid via MCP, users can query vast digital twin repositories in natural language, asking questions like, find the 100 weakest structures in my entire grid, or which transmission line spans will thermally limit the interconnection of the proposed AI data center. Unlocking this engineering data directly is precisely the direction we're taking across a broader bed infrastructure cloud, enabling our users to extract actionable intelligence across their product files and asset information at machine speed. With TLS as a critical component of our electrical grid offering and very much part of our core now, Bentley is uniquely positioned to continue to benefit from the massive investments required to power an electrified future. In summary, Q2 was a strong quarter, and we entered the second half of the year with great confidence in our discipline execution and market fundamentals. And with that, over to you Werner for a detailed review of our financial results.