Climb Global Solutions, Inc. (CLMB)
NASDAQ:CLMB
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Climb Global Solutions
(NASDAQ:CLMB)
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Rating:74Outperform
Price Target:
$24.50
▲(7.27% Upside)
Action:Reiterated
Date:06/05/26
The score is primarily supported by strong financial quality (very low leverage, solid profitability, and healthy free cash flow) and a constructive earnings-call setup highlighting strong top-line momentum and a clear path to scaling. Offsetting factors are mixed technicals (still below longer-term moving averages with elevated Stoch) and some caution from recent margin compression and near-term investment-driven profitability pressure.
Positive Factors
Low leverage / strong balance sheet
Exceptionally low leverage and strong ROE provide durable financial flexibility for a cyclical distributor. This reduces refinancing risk, enables opportunistic M&A and investments, and cushions the business through hardware cycle downturns while preserving capacity to fund growth without stressing cash flow.
Negative Factors
Margin compression versus prior year
A multi-percentage-point decline in gross and net margins suggests durable pressure from mix shifts, pricing, or higher operating spend. If sustained, lower margins reduce operating leverage, constrain ROE expansion, and limit reinvestment capacity unless mix or pricing is restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Exceptionally low leverage and strong ROE provide durable financial flexibility for a cyclical distributor. This reduces refinancing risk, enables opportunistic M&A and investments, and cushions the business through hardware cycle downturns while preserving capacity to fund growth without stressing cash flow.
Read all positive factors
Climb Global Solutions (CLMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$442.99M
Dividend Yield0.63%
Average Volume (3M)187.33K
Price to Earnings (P/E)20.7
Beta (1Y)1.09
Revenue Growth36.31%
EPS Growth7.03%
CountryUS
Employees367
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)1.15
Shares Outstanding18,597,200
10 Day Avg. Volume126,184
30 Day Avg. Volume187,332
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)3.99
Price to Sales (P/S)0.71
P/FCF Ratio31.83
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda10.09
Forecast
1Y Price Target
$31.00Price Target Upside35.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.39
Revenue Forecast (FY)$716.82M
Climb Global Solutions Business Overview & Revenue Model
Company Description
Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solut...
How the Company Makes Money
Climb Global Solutions primarily makes money by distributing third-party technology offerings and earning a margin between the price at which it acquires vendor products/services and the price at which it sells them to channel partners (such as re...
Climb Global Solutions Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call highlighted robust top-line performance (gross billings +14%, net sales +32%) and strategic progress (acquisition of Interwork, selective high-impact vendor additions, investments in automation/AI, and a clean balance sheet with no debt). Near-term profitability metrics were modestly pressured by one-time and strategic investments (including ~ $0.5M Fortinet-related costs), a higher effective tax rate, and a decline in effective margin (29.9% vs 32.7%). Management framed these costs as intentional, short-term investments expected to drive scalable growth and margin improvement later in 2026 (returns expected by Q3). Given the strength of growth metrics, clear M&A and product strategy, and liquidity, balanced against manageable short-term margin pressure, the overall tone is constructive and confidence-oriented.Positive Updates
Gross Billings Growth
Gross billings increased 14% year-over-year to $542.8 million (from $474.6 million). Distribution segment billings rose 15% to $520.9 million and Solutions segment billings rose 4% to $21.9 million.
Negative Updates
Decline in Effective Margin
Effective margin (adjusted EBITDA as a percentage of gross profit) declined to 29.9% from 32.7% in the prior-year quarter (a ~2.8 percentage-point decrease), driven by investments and one-time costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Gross Billings Growth
Gross billings increased 14% year-over-year to $542.8 million (from $474.6 million). Distribution segment billings rose 15% to $520.9 million and Solutions segment billings rose 4% to $21.9 million.
Read all positive updates
Company Guidance
Management provided directional guidance rather than formal numeric targets, saying Q1 momentum (gross billings $542.8M, +14%; distribution $520.9M, solutions $21.9M; net sales $182.4M, +32%; gross profit $26.5M, +13%; adjusted EBITDA $7.9M, +4%; net income $3.3M/$0.18 diluted; adjusted net income $3.6M/$0.19) should improve as one-time investments abate—notably a ~$0.5M Fortinet investment that will ramp in Q2 and is expected to turn positive by Q3 2026. They noted Q1 effective margin was 29.9% (adjusted EBITDA/gross profit) vs. 32.7% year‑ago but said ex‑one‑offs margin was higher and Q1 is typically the year’s low; Q1 SG&A was $20.3M (3.7% of gross billings) with a management goal to split a ~5% gross‑profit pool into ~2.5% SG&A and ~2.5% operating income. Other forward priorities: double the business in three years without doubling headcount, pursue accretive M&A (Interwork added Feb 24 with 600+ resellers), deploy 41+ IT/AI projects to drive efficiency, and operate with strong liquidity ($41.8M cash, no borrowings on a $50M revolver).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 | 696.85M | 652.52M | 465.61M | 352.01M | 304.35M | 282.58M |
| Gross Profit | 108.37M | 105.27M | 91.08M | 64.25M | 52.04M | 45.72M |
| EBITDA | 35.93M | 35.65M | 35.01M | 20.28M | 19.01M | 14.05M |
| Net Income | 20.98M | 21.33M | 18.61M | 12.32M | 12.18M | 9.20M |
Balance Sheet | ||||||
| Total Assets | 458.84M | 460.23M | 469.18M | 335.10M | 231.86M | 190.75M |
| Cash, Cash Equivalents and Short-Term Investments | 41.77M | 36.56M | 29.78M | 36.30M | 20.25M | 29.27M |
| Total Debt | 1.78M | 3.41M | 3.09M | 2.62M | 3.63M | 2.29M |
| Total Liabilities | 340.41M | 343.65M | 378.59M | 260.33M | 171.28M | 138.34M |
| Stockholders Equity | 118.43M | 116.58M | 90.59M | 74.77M | 60.57M | 52.42M |
Cash Flow | ||||||
| Free Cash Flow | 23.23M | 14.61M | 28.27M | 37.13M | 2.06M | 4.45M |
| Operating Cash Flow | 24.97M | 16.60M | 33.74M | 42.12M | 4.56M | 4.71M |
| Investing Cash Flow | -9.97M | -2.00M | -26.43M | -17.67M | -11.01M | -258.00K |
| Financing Cash Flow | -6.43M | -9.06M | -12.96M | -8.95M | -1.83M | -4.40M |
Climb Global Solutions Technical Analysis
Positive
22.84
Price Trends
20.90
Positive
23.51
Positive
26.69
Negative
Market Momentum
0.62
Negative
68.23
Neutral
85.33
Negative
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 22.84 is above the 20-day moving average (MA) of 20.92, above the 50-day MA of 20.90, and below the 200-day MA of 26.69, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 85.33 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.20B | 15.47 | 11.15% | ― | 20.49% | 92.31% | |
74 Outperform | $442.99M | 20.68 | 18.67% | 0.63% | 36.31% | 7.03% | |
74 Outperform | $1.82B | 20.79 | 9.67% | 1.02% | 0.78% | 3.87% | |
69 Neutral | $949.36M | 13.57 | 8.07% | ― | 3.76% | 18.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.35B | 19.01 | 11.17% | ― | -1.83% | -2.39% | |
59 Neutral | $7.12B | 33.29 | 4.33% | 2.77% | 12.68% | -27.94% |
* Technology Sector Average
CLMB
Climb Global Solutions
23.82
-2.68
-10.11%
ARW
Arrow Electronics
219.09
95.81
77.72%
AVT
Avnet
86.81
36.43
72.31%
NSIT
Insight Enterprises
111.07
-23.13
-17.24%
CNXN
PC Connection
72.15
7.72
11.97%
SCSC
ScanSource
46.71
4.74
11.29%
Climb Global Solutions Corporate Events
Business Operations and Strategy
Climb Global Schedules Investor Day to Present Growth Strategy
Positive
Jun 4, 2026
On June 4, 2026, Climb Global Solutions announced it will host an Investor Day on July 7, 2026, at Nasdaq MarketSite in New York City, with both in-person and virtual participation options. The executive leadership team, led by CEO Dale Foster, wi...
Executive/Board ChangesShareholder Meetings
Climb Global Shareholders Back Directors, Pay and Incentive Plan
Positive
Jun 4, 2026
At its 2026 Annual Meeting of Stockholders held on June 2, 2026, Climb Global Solutions, Inc. secured strong shareholder participation, with 81.97% of outstanding common shares represented in person or by proxy. Stockholders elected four directors...
Executive/Board ChangesShareholder Meetings
Climb Global Solutions Announces Board Change as Director Retires
Neutral
Apr 23, 2026
On April 20, 2026, Climb Global Solutions, Inc. announced that director Gerri Gold notified the board she will retire and will not stand for re‑election at the company’s 2026 annual meeting of stockholders, though she will continue to ...
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.