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Climb Global Solutions
(NASDAQ:CLMB)
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Rating:74Outperform
Price Target:
$35.00
▲(28.44% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong financial quality (low leverage, solid ROE, and improved TTM cash generation) and a generally positive strategic/operational narrative from the earnings call and recent accretive M&A. Offsetting these strengths are margin compression and expense pressure, plus a mixed near-term technical picture and a relatively high P/E with a low dividend yield.
Positive Factors
Conservative balance sheet and liquidity
Very low leverage and substantial liquidity give Climb flexibility to fund working capital, platform investment and acquisitions without relying heavily on external financing. This strengthens resilience during demand fluctuations and supports continued strategic expansion.
Negative Factors
Margin compression and expense pressure
Higher operating costs are absorbing much of the benefit from commercial growth, leaving adjusted EBITDA essentially unchanged despite stronger billings. If platform, IT and integration investments do not generate planned operating leverage, profitability could remain structurally constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and liquidity
Very low leverage and substantial liquidity give Climb flexibility to fund working capital, platform investment and acquisitions without relying heavily on external financing. This strengthens resilience during demand fluctuations and supports continued strategic expansion.
Read all positive factors
Climb Global Solutions (CLMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$583.14M
Dividend Yield0.54%
Average Volume (3M)145.50K
Price to Earnings (P/E)27.8
Beta (1Y)1.14
Revenue Growth23.05%
EPS Growth-7.49%
CountryUS
Employees402
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)1.13
Shares Outstanding18,660,639
10 Day Avg. Volume105,838
30 Day Avg. Volume145,502
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)3.99
Price to Sales (P/S)0.71
P/FCF Ratio31.83
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.30
Enterprise Value/Ebitda10.19
Forecast
1Y Price Target
$30.00Price Target Upside10.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.4
Revenue Forecast (FY)$732.88M
Climb Global Solutions Business Overview & Revenue Model
Company Description
Climb Global Solutions Inc. operates as a comprehensive, value-added information technology (IT) distribution and solutions provider with a global footprint, serving clients across the United States, Canada, Europe, and the United Kingdom, as well...
How the Company Makes Money
Climb Global Solutions primarily makes money as a value-added distributor by purchasing software and other technology offerings from vendors (or facilitating vendor-delivered subscriptions) and selling those products and subscriptions to channel p...
Climb Global Solutions Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The quarter shows strong commercial momentum and disciplined strategic progress: gross billings (+17%), net sales (+9%), gross profit (+15%), improved cash position and meaningful vendor wins/expansions (Ivanti, Check_MK, Darktrace, Fortinet). Offsetting this are short-term margin and profitability pressures from higher SG&A (+26%), a slightly lower adjusted EBITDA and a compressed effective margin (37.5% vs 43.3%), along with a higher tax rate and lumpy large-deal comparables. Management is investing in platform development, IT/infrastructure and selective M&A to drive long-term scalable growth; these investments explain much of the near-term margin compression.Positive Updates
Strong Gross Billings Growth
Gross billings for Q2 2026 were $587.3M, up 17% year-over-year (from $500.6M). Distribution segment gross billings rose 8% to $562.9M and Solutions gross billings increased 4% to $24.4M.
Negative Updates
Decline in Net Income and Adjusted Net Income
Net income fell to $5.5M ($0.30 diluted) from $6.0M ($0.33) in the prior year quarter (≈ -8.3%). Adjusted net income declined to $5.5M ($0.30) from $6.4M ($0.35) (≈ -14.1%), driven in part by a higher effective tax rate.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Gross Billings Growth
Gross billings for Q2 2026 were $587.3M, up 17% year-over-year (from $500.6M). Distribution segment gross billings rose 8% to $562.9M and Solutions gross billings increased 4% to $24.4M.
Read all positive updates
Company Guidance
Management guided to drive continued organic growth, selectively expand the line card (Europe a focal point) and pursue accretive M&A while targeting to more than double FY2025 adjusted EBITDA by 2030 through organic growth, deeper vendor/partner relationships, operating leverage and strategic M&A; near-term operational guidance included completion of the cloud platform technical blueprint soon with Adobe prioritized for initial integration and some platform work expected by Q4, IT investments with an expected ~1-year payback, and seasonal strength in H2 (Q3/Q4 > H1) with Fortinet (10x Q1→Q2 growth, expected top‑5 vendor in ~12 months; NA Fortinet ~$2.5B through 4–5 distributors) and Darktrace as key drivers. Financial flexibility remains: cash $56.6M (6/30/26) vs. $36.6M (12/31/25), no debt and a $50M revolver undrawn; Q2 reference metrics were gross billings $587.3M (+17%), distribution $562.9M (+8%), solutions $24.4M (+4%), net sales $174.2M (+9%), gross profit $30.2M (+15%), adjusted EBITDA $11.3M (effective margin 37.5%), adjusted net income $5.5M ($0.30/share), SG&A $20.7M (3.5% of gross billings, including ~$0.5M nonrecurring) and a target to drive SG&A toward ~3% over time.Climb Global Solutions Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 711.77M | 652.52M | 465.61M | 352.01M | 304.35M | 282.58M |
| Gross Profit | 112.22M | 105.27M | 91.08M | 64.25M | 52.04M | 45.72M |
| EBITDA | 36.32M | 36.26M | 35.01M | 20.28M | 19.02M | 14.37M |
| Net Income | 20.53M | 21.33M | 18.61M | 12.32M | 12.18M | 9.20M |
Balance Sheet | ||||||
| Total Assets | 462.50M | 460.23M | 469.18M | 335.10M | 231.86M | 190.75M |
| Cash, Cash Equivalents and Short-Term Investments | 56.56M | 36.56M | 29.78M | 36.30M | 20.25M | 29.27M |
| Total Debt | 2.05M | 3.41M | 3.09M | 2.62M | 3.63M | 2.29M |
| Total Liabilities | 337.51M | 343.65M | 378.59M | 260.33M | 171.28M | 138.34M |
| Stockholders Equity | 124.99M | 116.58M | 90.59M | 74.77M | 60.57M | 52.42M |
Cash Flow | ||||||
| Free Cash Flow | 41.00M | 14.61M | 28.27M | 37.13M | 2.06M | 4.45M |
| Operating Cash Flow | 42.54M | 16.60M | 33.74M | 42.12M | 4.56M | 4.71M |
| Investing Cash Flow | -9.76M | -2.00M | -26.43M | -17.67M | -11.01M | -258.00K |
| Financing Cash Flow | -5.13M | -9.06M | -12.96M | -8.95M | -1.83M | -4.40M |
Climb Global Solutions Technical Analysis
Positive
27.25
Price Trends
30.04
Positive
27.42
Positive
25.59
Positive
Market Momentum
0.54
Positive
53.29
Neutral
17.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLMB, the sentiment is Positive. The current price of 27.25 is below the 20-day moving average (MA) of 32.56, below the 50-day MA of 30.04, and above the 200-day MA of 25.59, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 53.29 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLMB.
Climb Global Solutions Risk Analysis
Climb Global Solutions disclosed 32 risk factors in its most recent earnings report. Climb Global Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Climb Global Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.19B | 23.15 | 10.40% | 0.85% | 3.23% | 14.66% | |
74 Outperform | $583.14M | 27.85 | 17.50% | 0.54% | 23.05% | -7.49% | |
71 Outperform | $1.21B | 16.54 | 8.66% | ― | 6.09% | 21.23% | |
69 Neutral | $11.15B | 13.88 | 12.14% | ― | 26.05% | 76.95% | |
64 Neutral | $19.80B | 15.19 | 14.94% | 0.76% | 24.10% | 77.90% | |
62 Neutral | $7.49B | 22.88 | 6.77% | 1.52% | 24.47% | 47.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CLMB
Climb Global Solutions
31.95
-0.80
-2.43%
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Climb Global Solutions Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Climb Global Solutions expands European presence with NeoVAD acquisition
Positive
Oct 22, 2026
On October 21, 2026, Climb Global Solutions completed the acquisition of NeoVAD, a France-based value-added IT distributor focused on cybersecurity, cloud services and virtualization, for approximately €16.0 million. NeoVAD’s French fo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.