Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $369.93M
• Dividend Yield: 0.63%
• Average Volume (3M): 71.23K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.12
• Revenue Growth: 51.09%
• EPS Growth: 25.86%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.53
• Shares Outstanding: 4,605,692
• 10 Day Avg. Volume: 83,291
• 30 Day Avg. Volume: 71,226
• PEG Ratio: 1.53
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 31.83
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 9.14
• 1Y Price Target: $120.00
• Price Target Upside: 49.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 5.73
• Revenue Forecast (FY): $656.35M

• Rating: 63 Neutral
• Price Target: $86.00 ▲(7.07% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid underlying financial strength (notably the very strong balance sheet) and a generally positive strategic/growth outlook from the latest earnings call. These are tempered by near-term risks from weak technicals, margin compression, and the reported TTM cash flow weakness, with valuation providing only moderate support.

Positive Factors

Balance sheet strength

Exceptionally low leverage and steadily rising equity provide durable financial flexibility. This supports funding M&A, reinvestment in AI/ERP initiatives, and weathering working-capital swings without reliance on external debt, preserving optionality for strategic execution.

Sustained revenue momentum

Multi-year top-line growth reflects expanding vendor relationships and reseller ecosystem scale. The rising gross billings and net sales imply structural demand for distributed cloud/software, supporting repeatable transaction volumes and a larger recurring revenue base over coming quarters.

Accretive M&A and vendor wins

Targeted, accretive M&A and strategic vendor additions strengthen market position and product mix. Integrating Interworks’ CSP footprint and the Fortinet/Darktrace ramps should expand cross-sell, bolster regional cloud capabilities, and materially lift recurring gross billings over time.

Negative Factors

TTM cash-flow weakness

A reported TTM cash-flow collapse to $0, despite prior strong annual FCF, signals working-capital or timing volatility that can impair cash-conversion reliability. Persistent weak cash generation would constrain reinvestment, M&A funding cadence and covenant flexibility over months ahead.

Margin compression

Material year-over-year deterioration in gross profit flow-through and adjusted EBITDA indicates rising cost or pricing pressure. If vendor pricing shifts, mix changes, or SG&A creep persist, sustained margin pressure could cap free-cash conversion and long-term return on invested capital.

Working-capital volatility

A $27.7M working-capital swing highlights sensitivity to receivable and payable timing in a distribution model. Continued volatility can amplify cash-flow uncertainty, force financing or delay M&A/investment plans, and increase the need for tighter operational controls to sustain growth.

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 Solutions. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators under the names Climb Channel Solutions and Sigma Software Distribution; and software, hardware, and services under the names TechXtend and Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Climb Global Solutions Inc. markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. It provides IT distribution and solutions for companies in the security, data management, cloud, connectivity, storage and HCI, virtualization, and software and ALM industries. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

How the Company Makes Money

Climb Global Solutions primarily makes money by acting as a value-added distributor in the IT channel. Its core revenue stream is the sale of third-party software and cloud offerings to reseller partners: Climb typically purchases or aggregates vendor products/services (or facilitates their provisioning) and resells them to channel partners, earning a gross profit spread (distribution margin) on those transactions. Revenue is therefore driven by the volume and mix of vendor solutions distributed through its reseller network and the level of ongoing subscription or cloud consumption that flows through its platform. In addition to product distribution, the company generates revenue from value-added services provided to partners and vendors—such as technical enablement, marketing and demand-generation support, and other channel services—when these are included in distribution arrangements. The company’s earnings are influenced by the strength of its relationships with software/cloud vendors (whose products it is authorized to distribute), the breadth and activity of its reseller ecosystem, and the continued shift toward recurring subscription and cloud-delivered software that can create repeat, ongoing billings through the channel. Specific material partnerships, contract terms (e.g., take rates), or revenue by product line are null if not publicly specified in the referenced information.

Climb Global Solutions Financial Statement Overview

Summary

Strong revenue growth and consistently positive profitability are supported by an exceptionally conservative balance sheet (very low leverage and strong ROE). The main offsets are margin compression and the reported TTM operating/free cash flow of $0, which raises near-term cash-conversion risk until clarified or normalized.

Income Statement

CLMB shows strong top-line momentum over the last several years, with revenue rising from $252M (2020) to $466M (2024), and TTM (Trailing-Twelve-Months) reaching $653M. Profitability is consistently positive, with TTM net income of ~$21M and EBIT/EBITDA margins still healthy for a distributor. The main weakness is margin compression in TTM versus 2024 (gross, EBIT, and EBITDA margins all down), suggesting either pricing pressure, mix shift, or higher costs that could cap earnings upside if sustained.

Balance Sheet

The balance sheet is a clear strength: debt is very low relative to equity across all periods (TTM debt-to-equity ~0.03), providing high financial flexibility. Equity has steadily built over time (from ~$45M in 2020 to ~$117M TTM), while returns on equity remain strong (~20% in 2024 and TTM). The primary watch item is that assets are sizable (~$460M TTM), so future performance depends on maintaining efficient working-capital management, but leverage risk appears minimal.

Cash Flow

Cash flow quality is mixed and currently a concern. In 2023–2024 the business generated solid operating cash flow ($42M in 2023; $34M in 2024) and strong free cash flow ($37M in 2023; $28M in 2024), supporting earnings with real cash generation. However, TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are reported as $0, which drives a sharp drop in cash conversion versus net income and creates uncertainty around near-term cash generation (potentially working-capital swings or data limitations).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	652.52M	465.61M	352.01M	304.35M	282.58M
Gross Profit	105.27M	91.08M	64.25M	52.04M	45.72M
EBITDA	35.65M	35.01M	20.28M	19.01M	14.05M
Net Income	21.33M	18.61M	12.32M	12.18M	9.20M
Balance Sheet
Total Assets	460.23M	469.18M	335.10M	231.86M	190.75M
Cash, Cash Equivalents and Short-Term Investments	36.56M	29.78M	36.30M	20.25M	29.27M
Total Debt	3.41M	3.09M	2.62M	3.63M	2.29M
Total Liabilities	343.65M	378.59M	260.33M	171.28M	138.34M
Stockholders Equity	116.58M	90.59M	74.77M	60.57M	52.42M
Cash Flow
Free Cash Flow	14.61M	28.27M	37.13M	2.06M	4.45M
Operating Cash Flow	16.60M	33.74M	42.12M	4.56M	4.71M
Investing Cash Flow	-2.00M	-26.43M	-17.67M	-11.01M	-258.00K
Financing Cash Flow	-9.06M	-12.96M	-8.95M	-1.83M	-4.40M

Climb Global Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLMB, the sentiment is Negative. The current price of 80.32 is below the 20-day moving average (MA) of 94.83, below the 50-day MA of 109.04, and below the 200-day MA of 113.77, indicating a bearish trend. The MACD of -8.91 indicates Positive momentum. The RSI at 23.86 is Positive, neither overbought nor oversold. The STOCH value of 7.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLMB.

Climb Global Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNXN	74 Outperform	$1.52B	17.40	9.37%	1.02%	3.19%	-4.91%
AVT	71 Outperform	$4.93B	16.25	4.22%	2.77%	-2.30%	-29.75%
SCSC	67 Neutral	$761.48M	12.95	8.14%	―	-4.88%	2.57%
CLMB	63 Neutral	$369.93M	21.80	20.00%	0.63%	51.09%	25.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ARW	60 Neutral	$7.20B	9.99	9.05%	―	3.16%	1.09%
NSIT	59 Neutral	$2.52B	16.31	9.79%	―	-6.69%	-51.74%

Climb Global Solutions Corporate Events

Climb Global Solutions Announces Four-for-One Stock Split

On March 2, 2026, Climb Global Solutions, Inc. announced that its board approved a four-for-one forward stock split of its common stock, to be implemented via an amendment to its Restated Certificate of Incorporation in Delaware. The amendment will also proportionately increase authorized common shares, with the action designed to improve trading liquidity and broaden accessibility without altering any shareholder’s proportional ownership.

Shareholders of record at the close of business on March 16, 2026, are scheduled to receive three additional shares for each share held after trading closes on March 20, 2026. Trading in Climb’s stock is expected to begin on a split-adjusted basis on March 23, 2026, a move that could expand the investor base and potentially enhance marketability of the stock for existing and prospective stakeholders.

The most recent analyst rating on (CLMB) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Climb Global Solutions stock, see the CLMB Stock Forecast page.

Climb Global Solutions Completes Interworks Cloud Acquisition in Europe

On February 24, 2026, Climb Global Solutions completed the acquisition of Interworks Single Member SA (interworks.cloud), a Greece-based value-added cloud distributor, for approximately €8.0 million. Interworks adds a strong regional footprint in Greece, Malta, Cyprus, Bulgaria and surrounding markets, with more than 600 cloud reseller and MSP relationships and an expanding portfolio of cloud and security vendors led by Microsoft.

For the fiscal year ended December 31, 2025, Interworks reported adjusted EBITDA of about €901,000, an 86% increase from the prior year, highlighting the growth profile Climb is adding to its platform. Climb’s management said the full Interworks team will join the company, reinforcing local support while advancing its pan-European Microsoft Cloud Solution Provider strategy and strengthening its position as a leading cloud and software distributor across Southeastern Europe.

The deal is expected to be accretive to Climb’s earnings per share and adjusted EBITDA, suggesting a positive financial contribution alongside the strategic benefits. By integrating Interworks’ Microsoft-focused CSP business, cloud marketplace capabilities and MSP-centric model, Climb aims to deepen cross-selling opportunities, meet evolving compliance requirements and enhance its competitive standing in Europe’s cloud distribution market.

The most recent analyst rating on (CLMB) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Climb Global Solutions stock, see the CLMB Stock Forecast page.