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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 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
$30.00
▲(17.83% Upside)
Action:Reiterated
Date:07/31/26
The score is driven mainly by strong financial quality—rapid recent revenue expansion, very low leverage, and solid ROE—supported by improved recent cash generation. Technicals are constructive with the stock trading above major moving averages, while valuation is a modest headwind due to a mid-to-high P/E and low dividend yield. Earnings-call commentary is net positive on growth initiatives and liquidity, but near-term margin pressure from higher SG&A and investment spending keeps the score from being higher.
Positive Factors
Rapid revenue scale-up
A sustained 214% TTM revenue increase to $711.8M signals durable commercial traction and successful scaling of the distribution model. Growing top-line supports vendor leverage, fixed-cost absorption, and provides a larger base to convert platform and cross-sell initiatives into long-term recurring revenue streams.
Negative Factors
Margin compression from rising SG&A
Significant SG&A increases and near-term investment spending have compressed adjusted margins. If cost efficiencies or operating leverage are slower to materialize, margin pressure could persist for multiple quarters, limiting free cash flow expansion and constraining returns despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue scale-up
A sustained 214% TTM revenue increase to $711.8M signals durable commercial traction and successful scaling of the distribution model. Growing top-line supports vendor leverage, fixed-cost absorption, and provides a larger base to convert platform and cross-sell initiatives into long-term recurring revenue streams.
Read all positive factors

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

Climb Global Solutions Business Overview & Revenue Model

Company Description
Climb Global Solutions Inc. operates as a comprehensive, value-added information technology (IT) distribution and solutions provider with a global footprint, serving clients across the United States, Canada, Europe, and the United Kingdom, as well...
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:Jul 29, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The quarter shows strong commercial momentum and disciplined strategic progress: gross billings (+17%), net sales (+9%), gross profit (+15%), improved cash position and meaningful vendor wins/expansions (Ivanti, Check_MK, Darktrace, Fortinet). Offsetting this are short-term margin and profitability pressures from higher SG&A (+26%), a slightly lower adjusted EBITDA and a compressed effective margin (37.5% vs 43.3%), along with a higher tax rate and lumpy large-deal comparables. Management is investing in platform development, IT/infrastructure and selective M&A to drive long-term scalable growth; these investments explain much of the near-term margin compression.
Positive Updates
Strong Gross Billings Growth
Gross billings for Q2 2026 were $587.3M, up 17% year-over-year (from $500.6M). Distribution segment gross billings rose 8% to $562.9M and Solutions gross billings increased 4% to $24.4M.
Negative Updates
Decline in Net Income and Adjusted Net Income
Net income fell to $5.5M ($0.30 diluted) from $6.0M ($0.33) in the prior year quarter (≈ -8.3%). Adjusted net income declined to $5.5M ($0.30) from $6.4M ($0.35) (≈ -14.1%), driven in part by a higher effective tax rate.
Read all updates
Q2-2026 Updates
Negative
Strong Gross Billings Growth
Gross billings for Q2 2026 were $587.3M, up 17% year-over-year (from $500.6M). Distribution segment gross billings rose 8% to $562.9M and Solutions gross billings increased 4% to $24.4M.
Read all positive updates
Company Guidance
Management guided to drive continued organic growth, selectively expand the line card (Europe a focal point) and pursue accretive M&A while targeting to more than double FY2025 adjusted EBITDA by 2030 through organic growth, deeper vendor/partner relationships, operating leverage and strategic M&A; near-term operational guidance included completion of the cloud platform technical blueprint soon with Adobe prioritized for initial integration and some platform work expected by Q4, IT investments with an expected ~1-year payback, and seasonal strength in H2 (Q3/Q4 > H1) with Fortinet (10x Q1→Q2 growth, expected top‑5 vendor in ~12 months; NA Fortinet ~$2.5B through 4–5 distributors) and Darktrace as key drivers. Financial flexibility remains: cash $56.6M (6/30/26) vs. $36.6M (12/31/25), no debt and a $50M revolver undrawn; Q2 reference metrics were gross billings $587.3M (+17%), distribution $562.9M (+8%), solutions $24.4M (+4%), net sales $174.2M (+9%), gross profit $30.2M (+15%), adjusted EBITDA $11.3M (effective margin 37.5%), adjusted net income $5.5M ($0.30/share), SG&A $20.7M (3.5% of gross billings, including ~$0.5M nonrecurring) and a target to drive SG&A toward ~3% over time.

Climb Global Solutions Financial Statement Overview

Summary
Strong scale-up in TTM revenue ($711.8M, +214%) and solid profitability (EBIT margin ~4.0%, net margin ~3.0%). Balance sheet strength is a major positive with extremely low leverage (debt-to-equity ~0.02) and strong ROE (~17.5%). Offsets are margin compression versus 2024 and historically uneven cash conversion despite improved TTM free cash flow (~$41.0M).
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue711.77M652.52M465.61M352.01M304.35M282.58M
Gross Profit112.22M105.27M91.08M64.25M52.04M45.72M
EBITDA35.98M35.65M35.01M20.28M19.01M14.37M
Net Income20.53M21.33M18.61M12.32M12.18M9.20M
Balance Sheet
Total Assets462.50M460.23M469.18M335.10M231.86M190.75M
Cash, Cash Equivalents and Short-Term Investments56.56M36.56M29.78M36.30M20.25M29.27M
Total Debt2.05M3.41M3.09M2.62M3.63M2.29M
Total Liabilities337.51M343.65M378.59M260.33M171.28M138.34M
Stockholders Equity124.99M116.58M90.59M74.77M60.57M52.42M
Cash Flow
Free Cash Flow41.00M14.61M28.27M37.13M2.06M4.45M
Operating Cash Flow42.54M16.60M33.74M42.12M4.56M4.71M
Investing Cash Flow-9.76M-2.00M-26.43M-17.67M-11.01M-258.00K
Financing Cash Flow-5.13M-9.06M-12.96M-8.95M-1.83M-4.40M

Climb Global Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.46
Price Trends
50DMA
24.45
Positive
100DMA
22.50
Positive
200DMA
24.98
Positive
Market Momentum
MACD
0.92
Positive
RSI
63.23
Neutral
STOCH
74.78
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 25.46 is below the 20-day moving average (MA) of 26.43, above the 50-day MA of 24.45, and above the 200-day MA of 24.98, indicating a bullish trend. The MACD of 0.92 indicates Positive momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 74.78 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 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$500.29M23.8317.50%0.67%23.05%-7.49%
75
Outperform
$2.11B22.0910.40%0.86%3.23%14.66%
72
Outperform
$11.07B15.3712.14%20.49%92.31%
69
Neutral
$3.89B22.4213.08%-1.83%-2.39%
69
Neutral
$1.15B17.168.07%3.76%18.30%
65
Neutral
$7.29B34.147.19%1.57%12.68%-27.94%
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
27.81
-1.81
-6.12%
ARW
Arrow Electronics
203.51
83.56
69.66%
AVT
Avnet
96.53
45.97
90.93%
NSIT
Insight Enterprises
149.32
25.50
20.59%
CNXN
PC Connection
84.14
23.44
38.62%
SCSC
ScanSource
54.95
13.39
32.22%

Climb Global Solutions Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Climb Global Solutions Provides Investor Presentation and Outlook
Neutral
Jul 7, 2026
Climb Global Solutions, Inc. has released a set of presentation materials as Exhibit 99.1 for use in meetings with investors and other interested parties, as well as in speeches to broader audiences. The company explicitly notes that this informat...
Business Operations and StrategyExecutive/Board Changes
Climb Global Solutions Adds Veteran Director to Board
Positive
Jun 25, 2026
On June 23, 2026, Climb Global Solutions, Inc. expanded its Board of Directors from four to five members and elected veteran venture capitalist and technology operator Peter Bell as a director, effective immediately. Bell also became chair of the ...
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...
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: Jul 31, 2026