Climb Global Solutions, Inc. (CLMB)
NASDAQ:CLMB
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Climb Global Solutions
(NASDAQ:CLMB)
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Rating:63Neutral
Price Target:
$20.50
▼(-4.03% Downside)
Action:ReiteratedDate: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
Conservative balance sheet
Exceptionally low leverage and a materially larger equity base give the company durable financial flexibility. This reduces refinancing and solvency risk, supports opportunistic M&A and reinvestment, and helps absorb working-capital swings typical in software distribution over the next several quarters.
Negative Factors
TTM cash-flow weakness
A reported TTM operating and free cash flow of $0, despite prior-year positive cash generation, signals potential working-capital swings or timing issues. If unresolved, weak cash conversion can constrain funding for M&A, reinvestment and operations and raise reliance on liquidity buffers over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Exceptionally low leverage and a materially larger equity base give the company durable financial flexibility. This reduces refinancing and solvency risk, supports opportunistic M&A and reinvestment, and helps absorb working-capital swings typical in software distribution over the next several quarters.
Read all positive factors
Climb Global Solutions (CLMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$394.17M
Dividend Yield0.63%
Average Volume (3M)274.86K
Price to Earnings (P/E)21.8
Beta (1Y)1.09
Revenue Growth51.09%
EPS Growth25.86%
CountryUS
Employees367
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)0.38
Shares Outstanding18,453,785
10 Day Avg. Volume141,010
30 Day Avg. Volume274,860
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 Cap0.91
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.42
Enterprise Value/Ebitda9.82
Forecast
1Y Price Target
$76.00Price Target Upside255.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.46
Revenue Forecast (FY)$689.78M
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 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 ve...
Climb Global Solutions Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive growth and strategic-transformation story: top-line billings and net sales growth, strengthened liquidity and meaningful strategic wins (Fortinet, Darktrace) and an accretive regional acquisition (interworks.cloud). However, Q4 profitability metrics were weaker year-over-year (lower gross profit, adjusted EBITDA and adjusted net income) and effective margin compression and a temporary working capital increase were notable headwinds. Management is prioritizing reinvestment, operational efficiencies (including AI and ERP-driven automation) and M&A to restore leverage and margin expansion. On balance the call emphasized growth initiatives and a clear plan to address margin/efficiency pressures.Positive Updates
Gross Billings Growth
Q4 gross billings increased 3% to $625.4M from $605.0M a year ago; Distribution segment gross billings rose 4% to $602.3M while Solutions remained flat at $23.1M.
Negative Updates
Gross Profit Decline
Q4 gross profit decreased to $29.8M from $31.2M year-over-year (≈ -4.5%), primarily due to a large, higher-margin vendor transaction in the prior-year period.
Read all updates
Q4-2025 Updates
Positive
Negative
Gross Billings Growth
Q4 gross billings increased 3% to $625.4M from $605.0M a year ago; Distribution segment gross billings rose 4% to $602.3M while Solutions remained flat at $23.1M.
Read all positive updates
Company Guidance
Climb guided toward accelerating organic growth while reinvesting capital to drive operational efficiency (including building generative AI tools) and pursuing accretive M&A (management said they expect to do 1–2 deals in 2026), funding that strategy by suspending the quarterly dividend beginning Q1 2026; the company highlighted strong liquidity with $36.6 million of cash, only $200,000 of outstanding debt and no borrowings on a $50 million revolver, and said the recent interworks.cloud acquisition (9.4x adjusted EBITDA, >600 cloud resellers, Microsoft CSP footprint, ~86% EBITDA growth prior-year and a roughly $1M EBITDA starting point) will be immediately accretive to earnings and adjusted EBITDA and enable faster cross-sell, while new vendor wins like Fortinet (a ~$2.5 billion U.S. addressable market they target ~10% of, or roughly $250 million of gross billings, in ~18 months) and early Darktrace traction (70 partners transacted >$13 million in Q4) should meaningfully contribute to growth; Q4 context: gross billings $625.4M (+3%; distribution $602.3M +4%, solutions $23.1M), net sales $193.8M (+20%), gross profit $29.8M, SG&A $18.2M (2.9% of gross billings), net income $7.0M ($1.52 EPS), adjusted net income $7.0M ($1.53) vs prior $10.3M/$2.26, adjusted EBITDA $13.0M (effective margin 43.6% vs 51.5% prior), and working capital up $27.7M—all of which management says positions the company to deliver on its 2026 organic and inorganic objectives.Climb Global Solutions Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
38
Negative
| 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
Neutral
21.36
Price Trends
23.94
Negative
25.74
Negative
27.90
Negative
Market Momentum
-0.58
Negative
49.47
Neutral
64.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLMB, the sentiment is Neutral. The current price of 21.36 is above the 20-day moving average (MA) of 20.23, below the 50-day MA of 23.94, and below the 200-day MA of 27.90, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.57B | 17.40 | 9.37% | 1.02% | 3.19% | -4.91% | |
71 Outperform | $5.49B | 16.25 | 4.22% | 2.77% | -2.30% | -29.75% | |
67 Neutral | $818.19M | 12.95 | 8.14% | ― | -4.88% | 2.57% | |
63 Neutral | $394.17M | 21.80 | 20.00% | 0.63% | 51.09% | 25.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $8.08B | 9.99 | 9.05% | ― | 3.16% | 1.09% | |
59 Neutral | $2.13B | 16.31 | 9.79% | ― | -6.69% | -51.74% |
* Technology Sector Average
CLMB
Climb Global Solutions
21.36
-4.99
-18.95%
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Climb Global Solutions Corporate Events
Stock Split
Climb Global Solutions Announces Four-for-One Stock Split
Positive
Mar 2, 2026
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 wil...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Climb Global Solutions Completes Interworks Cloud Acquisition in Europe
Positive
Feb 24, 2026
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 footpri...
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.