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Climb Global Solutions (CLMB)
NASDAQ:CLMB
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Climb Global Solutions (CLMB) AI Stock Analysis

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CLMB

Climb Global Solutions

(NASDAQ:CLMB)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$144.00
▲(6.19% Upside)
Climb Global Solutions demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. Technical indicators support a positive trend, though valuation concerns and recent corporate events introduce some caution.
Positive Factors
Revenue Growth
The substantial increase in net sales indicates strong demand for CLMB's services, reflecting effective market positioning and growth strategy.
Strategic Partnerships
The partnership with Forcepoint enhances CLMB's product offerings and market reach, aligning with industry trends in AI-native data security.
Balance Sheet Health
A strong balance sheet with low leverage provides financial stability and flexibility, supporting long-term strategic initiatives.
Negative Factors
Cash Flow Weakness
Declining free cash flow growth may limit CLMB's ability to reinvest in business operations and pursue growth opportunities.
Leadership Changes
Leadership changes may introduce uncertainty in strategic direction and affect stakeholder confidence in the company's management.
Partnership Loss
Losing the Citrix partnership could impact revenue streams and market presence, necessitating adjustments in strategic partnerships.

Climb Global Solutions (CLMB) vs. SPDR S&P 500 ETF (SPY)

Climb Global Solutions Business Overview & Revenue Model

Company DescriptionClimb 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 MoneyClimb Global Solutions generates revenue through a combination of service contracts, subscription-based models, and project-based engagements. Key revenue streams include consulting services for cloud migration, cybersecurity assessments, and ongoing managed services for data management. The company also forms strategic partnerships with technology providers to enhance its service offerings, such as collaborations with leading cloud platforms and cybersecurity firms. These partnerships not only broaden CLMB's service portfolio but also create additional revenue opportunities through joint marketing initiatives and bundled service offerings.

Climb Global Solutions Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Climb Global Solutions, with significant increases in gross billings, net sales, and net income, driven by organic growth and strategic acquisitions. Notable strategic partnerships and leadership appointments bolster future prospects. However, challenges such as the loss of the Citrix partnership and the impact of lumpy transactions were discussed. Despite these lowlights, the call sentiment remains positive overall.
Q2-2025 Updates
Positive Updates
Significant Gross Billings Increase
Gross billings in Q2 of 2025 increased 39% to $500.6 million compared to $359.8 million in the year-ago quarter.
Strong Net Sales Growth
Net sales in the second quarter of 2025 increased 73% to $159.3 million compared to $92.1 million in the same quarter of 2024.
Substantial Gross Profit Improvement
Gross profit increased 42% to $26.3 million compared to $18.6 million, driven by organic growth and the contribution from DSS.
Net Income Surge
Net income increased 74% to $6 million or $1.30 per diluted share compared to $3.4 million or $0.75 per diluted share in the comparable period of 2024.
Adjusted EBITDA Growth
Adjusted EBITDA increased 64% to $11.4 million compared to $6.9 million in the prior year quarter.
Decrease in SG&A as a Percentage of Gross Billings
SG&A as a percentage of gross billings decreased to 3.3% in Q2 of 2025 compared to 3.6% in the year-ago period.
Strategic Partnerships and Leadership Appointments
New partnerships with Ignite and IGEL, and appointments of Vishal Pushpa as CIO and Carlos Rodrigues as President of North America, highlighting strategic growth and leadership strengthening.
Negative Updates
Citrix Partnership Loss
The company lost its partnership with Citrix in its Ireland Group, which was a notable negative factor for Q2.
Impact of Lumpy Transactions
A large VAST Data order that was budgeted for Q3 got pulled into Q2, affecting the consistency of quarterly results.
Company Guidance
During the second quarter of fiscal year 2025, Climb Global Solutions reported a 39% increase in gross billings, reaching $500.6 million, alongside a 73% rise in net sales to $159.3 million. The company achieved a 42% growth in gross profit, totaling $26.3 million, while maintaining operational efficiency by reducing SG&A expenses as a percentage of gross billings from 3.6% to 3.3%. Net income surged by 74% to $6 million, or $1.30 per diluted share, with adjusted EBITDA climbing 64% to $11.4 million, reflecting the company's strategic expansion and robust organic growth. Climb also highlighted its disciplined approach to vendor partnerships, contributing to double-digit organic growth and significant gains in market share within the U.S. and Europe.

Climb Global Solutions Financial Statement Overview

Summary
Climb Global Solutions demonstrates strong financial health with consistent revenue growth, solid profitability, and efficient cash flow management. The balance sheet is notably strong with low leverage, supporting long-term stability.
Income Statement
85
Very Positive
Climb Global Solutions shows strong revenue growth with a notable increase of 9.79% in the TTM compared to the previous year. The company has maintained a solid gross profit margin of 18.89% and a net profit margin of 3.83% in the TTM, indicating strong profitability. The EBIT and EBITDA margins also reflect efficient operational performance at 5.82% and 6.74% respectively.
Balance Sheet
90
Very Positive
The balance sheet reflects a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The equity ratio stands at 25.81%, showing a healthy proportion of equity in the asset base. The return on equity is robust at 20.47%, highlighting effective use of shareholder funds to generate profits.
Cash Flow
70
Positive
The company's free cash flow growth rate is strong, with a slight decline in the TTM, but maintaining a solid operating cash flow to net income ratio of 1.44. The free cash flow to net income ratio is also impressive at 1.18, demonstrating effective cash management and conversion of earnings into cash flows.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue578.44M465.61M352.01M304.35M282.58M251.57M
Gross Profit105.21M91.08M64.25M54.09M45.72M33.04M
EBITDA41.68M35.01M20.28M18.59M13.59M7.53M
Net Income22.10M18.61M12.32M12.50M9.20M4.47M
Balance Sheet
Total Assets420.69M469.18M335.10M231.86M190.75M165.53M
Cash, Cash Equivalents and Short-Term Investments28.59M29.78M36.30M20.25M29.27M29.35M
Total Debt2.32M3.09M2.62M3.63M2.29M2.66M
Total Liabilities314.75M378.59M260.33M171.28M138.34M120.82M
Stockholders Equity105.18M90.59M74.77M60.57M52.42M44.72M
Cash Flow
Free Cash Flow14.16M28.27M37.13M2.06M4.45M37.95M
Operating Cash Flow18.67M33.74M42.12M4.56M4.71M37.97M
Investing Cash Flow-25.47M-26.43M-17.67M-11.01M-258.00K-16.80M
Financing Cash Flow-12.89M-12.96M-8.95M-1.83M-4.40M-6.74M

Climb Global Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price135.60
Price Trends
50DMA
120.07
Positive
100DMA
113.35
Positive
200DMA
116.32
Positive
Market Momentum
MACD
4.43
Positive
RSI
59.00
Neutral
STOCH
44.71
Neutral
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 135.6 is above the 20-day moving average (MA) of 131.09, above the 50-day MA of 120.07, and above the 200-day MA of 116.32, indicating a bullish trend. The MACD of 4.43 indicates Positive momentum. The RSI at 59.00 is Neutral, neither overbought nor oversold. The STOCH value of 44.71 is Neutral, 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 35 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$626.07M28.1723.39%0.50%56.45%59.09%
74
Outperform
$1.58B18.889.56%0.89%4.94%-1.79%
71
Outperform
$967.30M14.687.89%-6.72%-1.14%
69
Neutral
$6.23B13.677.38%-3.95%-16.72%
66
Neutral
$4.34B18.904.79%2.58%-6.55%-49.61%
61
Neutral
$3.55B26.919.32%-7.61%-50.01%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLMB
Climb Global Solutions
135.60
39.77
41.50%
ARW
Arrow Electronics
120.92
-10.86
-8.24%
AVT
Avnet
51.94
-0.15
-0.29%
NSIT
Insight Enterprises
112.52
-98.67
-46.72%
CNXN
PC Connection
61.61
-10.95
-15.09%
SCSC
ScanSource
44.19
-2.61
-5.58%

Climb Global Solutions Corporate Events

Executive/Board Changes
Climb Global Solutions Terminates CIO Vito Legrottaglie
Negative
Jun 13, 2025

On June 12, 2025, Climb Global Solutions, Inc. announced the termination of Vito Legrottaglie as Chief Information Officer, effective June 13, 2025. As part of a separation agreement, Mr. Legrottaglie will receive cash compensation for consulting services and accelerated vesting of certain stock units, impacting the company’s executive structure and potentially influencing stakeholder perceptions.

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.Date of analysis: Sep 09, 2025