Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $436.80M
• Dividend Yield: 0.63%
• Average Volume (3M): 61.74K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.10
• 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: 4,613,446
• 10 Day Avg. Volume: 78,287
• 30 Day Avg. Volume: 61,739
• PEG Ratio: 1.53
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 11.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.73
• Revenue Forecast (FY): $656.35M

• Rating: 62 Neutral
• Price Target: $100.00 ▼(-18.47% Downside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is driven by strong balance-sheet quality and solid growth/profitability, tempered by the sharp TTM cash-flow weakness and recent margin compression. Technically, the stock is in a clear downtrend (below key moving averages with negative MACD), which weighs on the overall rating despite oversold signals. Valuation is reasonable but not notably cheap, and the earnings call outlook is constructive but offset by weaker Q4 profitability and the dividend suspension.

Positive Factors

Conservative Balance Sheet

Exceptionally low leverage and steadily growing equity provide durable financial flexibility. This balance-sheet strength supports disciplined M&A, reinvestment, and downside protection through cycles, enabling the company to fund strategic initiatives without relying on external debt.

Multi-year Revenue Momentum

Sustained top-line growth and expanding billings/net sales indicate scalable demand for cloud, cybersecurity, and managed services. A growing, recurring revenue base enhances predictability, supports scale economics, and underpins long-term margin and cash-generation potential as the business cross-sells services.

Strategic M&A & Vendor Wins

Acquisition of interworks.cloud (600+ resellers, Microsoft CSP footprint) and partnerships with Fortinet/Darktrace materially expand distribution, product breadth and addressable markets. These structural moves deepen reseller ties, accelerate cross-sell, and increase recurring cloud/security revenue over time.

Negative Factors

TTM Cash-Flow Weakness

A collapse to $0 TTM operating and free cash flow is a material structural concern: it undermines demonstrated earnings quality and raises questions about working-capital swings or collection dynamics. Persistent weak cash conversion would constrain organic investment and increase financing risk.

Margin Compression

Noticeable decline in adjusted EBITDA and adjusted net income and lower effective margins signal weakening flow-through from gross profit. If margin pressure persists via vendor mix shifts, pricing, or higher SG&A, it limits free cash generation and the payoff from reinvestment and M&A initiatives.

Working-Capital / Cash Cycle Risk

A sizable working-capital uptick tied to receivable/payable timing shows operational cash-cycle vulnerability. With large total assets (~$460M), inefficient working-capital management can tie up liquidity, magnify the impact of cash-flow weakness, and complicate execution of growth and M&A plans.

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 generates revenue through multiple streams, primarily by providing cloud services and IT management solutions to businesses. Their revenue model includes subscription fees for cloud services, hourly rates for consulting and implementation projects, and recurring fees from managed services agreements. Additionally, CLMB benefits from strategic partnerships with major technology providers, allowing them to resell software licenses and hardware solutions, further diversifying their income. The company also engages in training and support services, adding another layer to their revenue generation.

Climb Global Solutions Financial Statement Overview

Summary

Strong multi-year revenue growth and consistent profitability are supported by an exceptionally conservative balance sheet (very low leverage and solid ROE). Offsetting this, margins compressed recently and TTM operating/free cash flow are reported at $0, raising near-term cash-conversion uncertainty.

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	0.00	28.27M	37.13M	2.06M	4.45M
Operating Cash Flow	0.00	33.74M	42.12M	4.56M	4.71M
Investing Cash Flow	0.00	-26.43M	-17.67M	-11.01M	-258.00K
Financing Cash Flow	0.00	-12.96M	-8.95M	-1.83M	-4.40M

Climb Global Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 122.65 is above the 20-day moving average (MA) of 113.49, above the 50-day MA of 113.71, and above the 200-day MA of 114.99, indicating a bearish trend. The MACD of -5.37 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 is Neutral, 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	$1.54B	18.66	9.30%	1.02%	3.19%	-4.91%
AVT	71 Outperform	$5.39B	26.96	4.71%	2.77%	-2.30%	-29.75%
SCSC	67 Neutral	$790.05M	11.32	8.16%	―	-4.88%	2.57%
CLMB	62 Neutral	$436.80M	20.40	20.27%	0.63%	51.09%	25.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ARW	60 Neutral	$7.77B	13.90	7.70%	―	3.16%	1.09%
NSIT	59 Neutral	$2.59B	16.82	9.20%	―	-6.69%	-51.74%

Climb Global Solutions Corporate Events

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.