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Climb Global Solutions (CLMB)
NASDAQ:CLMB
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Climb Global Solutions
(NASDAQ:CLMB)
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Rating:73Outperform
Price Target:
$137.00
▲(15.85% Upside)
Climb Global Solutions' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The technical analysis indicates mixed signals, with potential short-term weakness but longer-term strength. The valuation suggests the stock is relatively expensive, which slightly offsets the positive aspects.
Positive Factors
Revenue Growth
The significant increase in net sales reflects robust demand and effective market penetration, indicating strong growth potential and competitive positioning in the technology distribution sector.
Strategic Partnerships
Strategic partnerships and leadership appointments enhance Climb's market reach and operational capabilities, fostering long-term growth and innovation in cybersecurity and cloud solutions.
Balance Sheet Health
A low debt-to-equity ratio indicates minimal leverage, reducing financial risk and enhancing the company's ability to invest in growth opportunities and withstand economic fluctuations.
Negative Factors
Cash Flow Weakness
The decline in free cash flow growth suggests potential challenges in cash generation, which could limit the company's ability to fund new projects or respond to market changes effectively.
Citrix Partnership Loss
Losing the Citrix partnership may impact revenue streams and market presence in certain regions, requiring strategic adjustments to mitigate potential negative effects on growth.
Gross Profit Margin Decline
A decline in gross profit margin indicates potential cost pressures, which could affect profitability if not managed effectively, impacting long-term financial performance.
Climb Global Solutions (CLMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$550.85M
Dividend Yield0.63%
Average Volume (3M)80.38K
Price to Earnings (P/E)25.7
Beta (1Y)1.05
Revenue Growth51.09%
EPS Growth25.86%
CountryUS
Employees367
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)1.31
Shares Outstanding4,613,446
10 Day Avg. Volume98,171
30 Day Avg. Volume80,382
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)6.25
Price to Sales (P/S)1.22
P/FCF Ratio20.02
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit5.36
Enterprise Value/Ebitda15.52
Forecast
1Y Price Target
$136.00Price Target Upside15.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.54
Revenue Forecast (FY)$662.69M
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 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with notable achievements in organic growth, new partnerships, and successful initiatives in Europe. However, challenges in the Solutions segment and slight declines in net income and adjusted EBITDA were noted.Q3-2025 Updates
Positive Updates
Double-Digit Organic Growth
In Q3, Climb Global Solutions achieved double-digit organic growth, benefiting from the acquisition of Douglas Stewart Software.
New Strategic Partnerships
Climb Global Solutions formed partnerships with Liongard and Halcyon, enhancing capabilities in attack surface management and anti-ransomware solutions.
AI Academy Success in Europe
The Climb AI Academy launched in the DACH region, with over 700 participants and positive feedback, proving to be a powerful differentiator.
Significant Increase in Net Sales
Net sales in Q3 2025 increased by 35% to $161.3 million compared to $119.3 million from the previous year.
Strong Cash Position
Cash and cash equivalents increased to $49.8 million as of September 30, 2025, compared to $29.8 million on December 31, 2024.
Negative Updates
Decrease in Solutions Segment Gross Billings
Solutions segment gross billings decreased 5% to $22.7 million compared to the previous year.
Decline in Net Income
Net income in Q3 2025 was $4.7 million, down from $5.5 million in Q3 2024.
Reduction in Adjusted EBITDA
Adjusted EBITDA for Q3 was $10.9 million, slightly down from $11.1 million in the prior year.
Company Guidance
During the conference call for Climb Global Solutions' third quarter 2025 financial results, several key metrics were highlighted. The company reported an 8% increase in gross billings, reaching $504.6 million, with the distribution segment seeing a 9% rise to $481.9 million. Despite a 5% decrease in the Solutions segment's gross billings to $22.7 million, net sales rose 35% to $161.3 million compared to the previous year. Gross profit increased by 6% to $25.7 million, while SG&A expenses climbed to $16.2 million. Net income was reported at $4.7 million, translating to $1.02 per diluted share, although adjusted net income was slightly higher at $6 million or $1.31 per diluted share. Adjusted EBITDA stood at $10.9 million, with an effective margin of 42.3%. The company maintained a robust balance sheet with $49.8 million in cash and cash equivalents, a significant increase from the end of 2024. Climb Global Solutions also declared a quarterly dividend of $0.17 per share, reflecting confidence in their strategic growth initiatives and ongoing operational momentum.Climb Global Solutions Financial Statement Overview
Summary
Climb Global Solutions demonstrates strong financial performance with consistent revenue growth, solid profitability, and effective cash flow management. The company maintains low leverage, enhancing financial stability. Minor declines in profit margins are noted, but the overall trajectory remains positive.Income Statement
Climb Global Solutions demonstrates strong revenue growth with a TTM increase of 7.26% and a previous annual growth of 32.27%. The company maintains healthy gross and net profit margins, although there is a slight decline in margins over the TTM period. EBIT and EBITDA margins remain robust, indicating efficient operational performance.Balance Sheet
The company exhibits a solid balance sheet with a low debt-to-equity ratio of 0.022 in the TTM period, reflecting minimal leverage risk. Return on equity is strong at 22.52%, showcasing effective utilization of equity. The equity ratio is stable, indicating a balanced asset structure.Cash Flow
Climb Global Solutions shows impressive free cash flow growth of 189.09% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting efficient cash conversion. However, the free cash flow to net income ratio indicates room for improvement in cash retention.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 620.43M | 465.61M | 352.01M | 304.35M | 282.58M | 251.57M |
| Gross Profit | 105.35M | 91.08M | 64.25M | 52.04M | 45.72M | 33.04M |
| EBITDA | 36.35M | 35.01M | 20.28M | 19.01M | 14.05M | 7.53M |
| Net Income | 21.16M | 18.61M | 12.32M | 12.18M | 9.20M | 4.47M |
Balance Sheet | ||||||
| Total Assets | 376.09M | 469.18M | 335.10M | 231.86M | 190.75M | 165.53M |
| Cash, Cash Equivalents and Short-Term Investments | 49.84M | 29.78M | 36.30M | 20.25M | 29.27M | 29.35M |
| Total Debt | 2.54M | 3.09M | 2.62M | 3.63M | 2.29M | 2.66M |
| Total Liabilities | 266.83M | 378.59M | 260.33M | 171.28M | 138.34M | 120.82M |
| Stockholders Equity | 109.26M | 90.59M | 74.77M | 60.57M | 52.42M | 44.72M |
Cash Flow | ||||||
| Free Cash Flow | 40.93M | 28.27M | 37.13M | 2.06M | 4.45M | 37.95M |
| Operating Cash Flow | 44.48M | 33.74M | 42.12M | 4.56M | 4.71M | 37.97M |
| Investing Cash Flow | -3.84M | -26.43M | -17.67M | -11.01M | -258.00K | -16.80M |
| Financing Cash Flow | -12.86M | -12.96M | -8.95M | -1.83M | -4.40M | -6.74M |
Climb Global Solutions Technical Analysis
Positive
118.26
Price Trends
108.03
Positive
119.51
Negative
113.17
Positive
Market Momentum
1.70
Negative
65.11
Neutral
97.49
Negative
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 118.26 is above the 20-day moving average (MA) of 108.63, above the 50-day MA of 108.03, and above the 200-day MA of 113.17, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 97.49 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $550.85M | 25.71 | 21.27% | 0.63% | 51.09% | 25.86% | |
73 Outperform | $1.48B | 18.06 | 9.30% | 1.02% | 3.19% | -4.91% | |
67 Neutral | $4.05B | 18.57 | 4.71% | 2.77% | -2.30% | -29.75% | |
64 Neutral | $5.92B | 12.73 | 7.70% | ― | 3.16% | 1.09% | |
64 Neutral | $894.82M | 12.82 | 8.11% | ― | -4.88% | 2.57% | |
62 Neutral | $2.66B | 19.95 | 8.51% | ― | -6.69% | -51.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CLMB
Climb Global Solutions
118.26
-7.62
-6.05%
ARW
Arrow Electronics
115.30
2.41
2.13%
AVT
Avnet
49.71
-0.87
-1.72%
NSIT
Insight Enterprises
85.56
-77.76
-47.61%
CNXN
PC Connection
58.84
-10.63
-15.30%
SCSC
ScanSource
41.14
-8.16
-16.55%
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.