Climb Global Solutions Reports First Quarter 2025 Results
Climb Global Solutions reported strong Q1 2025 financial results, with net sales surging 49% to $138.0 million and net income rising 35% to $3.7 million ($0.81 per share). The company's adjusted EBITDA increased 38% to $7.6 million, while gross billings grew 34% to $474.6 million.
Key highlights include a 36% increase in Distribution segment gross billings to $453.6 million and a 2% rise in Solutions segment to $21.0 million. The company maintained strong liquidity with $32.5 million in cash and minimal debt of $0.6 million. A quarterly dividend of $0.17 per share was declared, payable May 16, 2025.
CEO Dale Foster attributed the growth to successful core initiatives and integration of Douglas Stewart Software & Services (DSS). The company plans to leverage its new ERP system for operational efficiencies and remains active in pursuing M&A opportunities to expand its presence in North America and overseas.
Climb Global Solutions ha riportato risultati finanziari solidi per il primo trimestre del 2025, con le vendite nette in aumento del 49%, raggiungendo 138,0 milioni di dollari, e l'utile netto in crescita del 35% a 3,7 milioni di dollari (0,81 dollari per azione). L'EBITDA rettificato dell'azienda è aumentato del 38% a 7,6 milioni di dollari, mentre le fatturazioni lorde sono cresciute del 34% a 474,6 milioni di dollari.
Tra i principali risultati si segnala un aumento del 36% delle fatturazioni lorde nel segmento Distribuzione, che hanno raggiunto 453,6 milioni di dollari, e una crescita del 2% nel segmento Soluzioni, arrivato a 21,0 milioni di dollari. L'azienda ha mantenuto una solida liquidità con 32,5 milioni di dollari in contanti e un debito minimo di 0,6 milioni di dollari. È stato dichiarato un dividendo trimestrale di 0,17 dollari per azione, pagabile il 16 maggio 2025.
Il CEO Dale Foster ha attribuito la crescita al successo delle iniziative principali e all'integrazione di Douglas Stewart Software & Services (DSS). L'azienda prevede di sfruttare il nuovo sistema ERP per migliorare l'efficienza operativa e continua a essere attiva nella ricerca di opportunità di fusioni e acquisizioni per espandere la propria presenza in Nord America e all'estero.
Climb Global Solutions informó resultados financieros sólidos para el primer trimestre de 2025, con ventas netas que aumentaron un 49% hasta los 138,0 millones de dólares y utilidad neta que creció un 35% hasta los 3,7 millones de dólares (0,81 dólares por acción). El EBITDA ajustado de la compañía aumentó un 38% hasta los 7,6 millones de dólares, mientras que las facturaciones brutas crecieron un 34% hasta los 474,6 millones de dólares.
Entre los aspectos destacados se incluye un aumento del 36% en las facturaciones brutas del segmento de Distribución, alcanzando los 453,6 millones de dólares, y un incremento del 2% en el segmento de Soluciones, llegando a 21,0 millones de dólares. La compañía mantuvo una sólida liquidez con 32,5 millones de dólares en efectivo y una deuda mínima de 0,6 millones de dólares. Se declaró un dividendo trimestral de 0,17 dólares por acción, pagadero el 16 de mayo de 2025.
El CEO Dale Foster atribuyó el crecimiento al éxito de las iniciativas principales y a la integración de Douglas Stewart Software & Services (DSS). La empresa planea aprovechar su nuevo sistema ERP para mejorar la eficiencia operativa y continúa activa en la búsqueda de oportunidades de fusiones y adquisiciones para expandir su presencia en Norteamérica y en el extranjero.
Climb Global Solutions는 2025년 1분기 강력한 재무 실적을 보고했으며, 순매출이 49% 급증하여 1억 3,800만 달러에 달했고, 순이익은 35% 증가하여 370만 달러(주당 0.81달러)를 기록했습니다. 회사의 조정 EBITDA는 38% 증가한 760만 달러였으며, 총 청구액은 34% 증가한 4억 7,460만 달러였습니다.
주요 하이라이트로는 유통 부문의 총 청구액이 36% 증가하여 4억 5,360만 달러에 달했고, 솔루션 부문은 2% 증가하여 2,100만 달러에 이르렀습니다. 회사는 3,250만 달러의 현금과 60만 달러의 최소 부채로 강력한 유동성을 유지했습니다. 분기 배당금은 주당 0.17달러로 선언되었으며, 2025년 5월 16일에 지급될 예정입니다.
CEO 데일 포스터는 성장을 핵심 이니셔티브의 성공과 Douglas Stewart Software & Services(DSS)의 통합 덕분이라고 평가했습니다. 회사는 새로운 ERP 시스템을 활용해 운영 효율성을 높이고, 북미 및 해외에서의 입지를 확장하기 위해 인수합병 기회를 적극 모색할 계획입니다.
Climb Global Solutions a publié de solides résultats financiers pour le premier trimestre 2025, avec des ventes nettes en hausse de 49% atteignant 138,0 millions de dollars et un revenu net en hausse de 35% à 3,7 millions de dollars (0,81 dollar par action). L'EBITDA ajusté de la société a augmenté de 38% pour atteindre 7,6 millions de dollars, tandis que le chiffre d'affaires brut a progressé de 34% pour s'établir à 474,6 millions de dollars.
Les points forts incluent une augmentation de 36% du chiffre d'affaires brut dans le segment Distribution à 453,6 millions de dollars et une hausse de 2% dans le segment Solutions à 21,0 millions de dollars. La société a maintenu une forte liquidité avec 32,5 millions de dollars en liquidités et une dette minimale de 0,6 million de dollars. Un dividende trimestriel de 0,17 dollar par action a été déclaré, payable le 16 mai 2025.
Le PDG Dale Foster a attribué cette croissance au succès des initiatives clés et à l'intégration de Douglas Stewart Software & Services (DSS). La société prévoit de tirer parti de son nouveau système ERP pour améliorer son efficacité opérationnelle et reste active dans la recherche d'opportunités de fusions et acquisitions pour étendre sa présence en Amérique du Nord et à l'international.
Climb Global Solutions meldete starke Finanzergebnisse für das erste Quartal 2025, mit einem Netto-Umsatzanstieg von 49% auf 138,0 Millionen US-Dollar und einem Nettoeinkommensanstieg von 35% auf 3,7 Millionen US-Dollar (0,81 US-Dollar pro Aktie). Das bereinigte EBITDA des Unternehmens stieg um 38% auf 7,6 Millionen US-Dollar, während die Bruttorechnungen um 34% auf 474,6 Millionen US-Dollar wuchsen.
Zu den wichtigsten Highlights zählt ein 36%iger Anstieg der Bruttorechnungen im Vertriebssegment auf 453,6 Millionen US-Dollar sowie ein 2%iger Anstieg im Lösungssegment auf 21,0 Millionen US-Dollar. Das Unternehmen behielt eine starke Liquidität mit 32,5 Millionen US-Dollar in bar und einer minimalen Verschuldung von 0,6 Millionen US-Dollar bei. Eine vierteljährliche Dividende von 0,17 US-Dollar pro Aktie wurde angekündigt, zahlbar am 16. Mai 2025.
CEO Dale Foster führte das Wachstum auf erfolgreiche Kerninitiativen und die Integration von Douglas Stewart Software & Services (DSS) zurück. Das Unternehmen plant, sein neues ERP-System zur Steigerung der operativen Effizienz zu nutzen und bleibt aktiv auf der Suche nach M&A-Möglichkeiten, um seine Präsenz in Nordamerika und im Ausland auszubauen.
- Net sales surged 49% to $138.0M in Q1 2025
- Net income increased 35% to $3.7M ($0.81 per share)
- Adjusted EBITDA grew 38% to $7.6M
- Gross billings up 34% to $474.6M
- Distribution segment billings rose 36% to $453.6M
- Strong cash position of $32.5M with minimal debt ($0.6M)
- Working capital increased by $4.4M
- Maintained effective margin at 32.7%
- Quarterly dividend of $0.17 per share declared
- SG&A expenses increased to $16.8M from $12.5M
- Solutions segment showed minimal growth of only 2% to $21.0M
Insights
Climb Global Solutions delivered exceptional Q1 growth with net sales up 49%, net income up 35%, and solid balance sheet improvements.
Climb Global Solutions' Q1 2025 results showcase impressive financial performance across all key metrics. Net sales jumped
This growth stems from both organic expansion and the successful integration of Douglas Stewart Software & Services (DSS), acquired in July 2024. The distribution segment's gross billings increased
The company's financial position remains robust with
Operational efficiency is also improving, with effective margin (adjusted EBITDA as a percentage of gross profit) increasing 20 basis points to
The declaration of a
Net Sales up
EATONTOWN, N.J., April 30, 2025 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb” or the “Company”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the first quarter ended March 31, 2025.
First Quarter 2025 Summary vs. Same Year-Ago Quarter
- Net sales increased
49% to$138.0 million . - Net income increased
35% to$3.7 million or$0.81 per diluted share. - Adjusted net income (a non-GAAP financial measure defined below) increased
39% to$3.9 million or$0.86 per diluted share. - Adjusted EBITDA (a non-GAAP financial measure defined below) increased
38% to$7.6 million . - Gross billings (a key operational metric defined below) increased
34% to$474.6 million . Distribution segment gross billings increased36% to$453.6 million , and Solutions segment gross billings increased2% to$21.0 million .
Management Commentary
“The momentum from our record 2024 has carried into the first quarter, leading to exceptional growth across all key financial metrics,” said CEO Dale Foster. “Our performance was driven by the execution of our core initiatives and the integration of Douglas Stewart Software & Services, LLC (“DSS”) into our operating platform. We drove organic growth in both the U.S. and Europe, demonstrating our ability to deepen relationships with existing partners while signing new, cutting-edge technologies to our line card across geographies.”
“Looking ahead, we believe that we are well-positioned to continue driving organic growth and further improving operating leverage. While still early, we expect the implementation of our new ERP system to drive meaningful efficiencies across our global operations. We also plan to remain active with M&A as we evaluate accretive targets that can enhance our comprehensive offerings and expand our presence in both North America and overseas. These initiatives, coupled with our robust balance sheet, will enable us to continue executing on our goals and objectives.”
Dividend
Subsequent to quarter end, on April 28, 2025, Climb’s Board of Directors declared a quarterly dividend of
First Quarter 2025 Financial Results
Net sales in the first quarter of 2025 increased
Gross profit in the first quarter of 2025 increased
Selling, general, and administrative (“SG&A”) expenses in the first quarter of 2025 were
Net income in the first quarter of 2025 increased
Adjusted EBITDA in the first quarter of 2025 increased
On March 31, 2025, cash and cash equivalents were
For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.
Conference Call
The Company will conduct a conference call tomorrow, May 1, 2025, at 8:30 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2025.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Thursday, May 1, 2025
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 267-6316
International dial-in number: (203) 518-9783
Conference ID: CLIMB
Webcast: Climb’s Q1 2025 Conference Call
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.
About Climb Global Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the U.S., Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.
Additional information can be found by visiting www.climbglobalsolutions.com.
Non-GAAP Financial Measures
Climb Global Solutions uses non-GAAP financial measures, including adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.
Key Operational Metric
Gross Billings
Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, includes amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.
Forward-Looking Statements
The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisition of Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, import and export tariffs, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time in the Company’s filings with the Securities and Exchange Commission.
Company Contact
Matthew Sullivan
Chief Financial Officer
(732) 847-2451
MatthewS@ClimbCS.com
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
(720) 330-2829
CLMB@elevate-ir.com
| CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (Amounts in thousands, except share and per share amounts) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 32,461 | $ | 29,778 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 240,230 | 341,597 | ||||||
| Inventory, net | 2,328 | 2,447 | ||||||
| Prepaid expenses and other current assets | 6,144 | 6,874 | ||||||
| Total current assets | 281,163 | 380,696 | ||||||
| Equipment and leasehold improvements, net | 13,264 | 12,853 | ||||||
| Goodwill | 35,675 | 34,924 | ||||||
| Other intangibles, net | 35,904 | 36,550 | ||||||
| Right-of-use assets, net | 1,841 | 1,965 | ||||||
| Accounts receivable long-term, net | 1,183 | 1,174 | ||||||
| Other assets | 715 | 824 | ||||||
| Deferred income tax assets | 308 | 193 | ||||||
| Total assets | $ | 370,053 | $ | 469,179 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 266,452 | $ | 370,397 | ||||
| Lease liability, current portion | 688 | 654 | ||||||
| Term loan, current portion | 566 | 560 | ||||||
| Total current liabilities | 267,706 | 371,611 | ||||||
| Lease liability, net of current portion | 1,502 | 1,685 | ||||||
| Deferred income tax liabilities | 4,862 | 4,723 | ||||||
| Term loan, net of current portion | 48 | 191 | ||||||
| Non-current liabilities | 381 | 381 | ||||||
| Total liabilities | 274,499 | 378,591 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,584,055 and 4,601,302 shares outstanding, respectively | 53 | 53 | ||||||
| Additional paid-in capital | 39,532 | 37,977 | ||||||
| Treasury stock, at cost, 700,445 and 683,198 shares, respectively | (14,397 | ) | (13,337 | ) | ||||
| Retained earnings | 71,705 | 68,787 | ||||||
| Accumulated other comprehensive loss | (1,339 | ) | (2,892 | ) | ||||
| Total stockholders' equity | 95,554 | 90,588 | ||||||
| Total liabilities and stockholders' equity | $ | 370,053 | $ | 469,179 | ||||
| CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||
| (Unaudited) | ||||||||
| (Amounts in thousands, except per share data) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Sales | $ | 138,044 | $ | 92,422 | ||||
| Cost of sales | 114,648 | 75,402 | ||||||
| Gross profit | 23,396 | 17,020 | ||||||
| Selling, general and administrative expenses | 16,755 | 12,523 | ||||||
| Depreciation & amortization expense | 1,737 | 871 | ||||||
| Acquisition related costs | 126 | 123 | ||||||
| Total selling, general and administrative expenses | 18,618 | 13,517 | ||||||
| Income from operations | 4,778 | 3,503 | ||||||
| Interest, net | 186 | 203 | ||||||
| Foreign currency transaction loss | (580 | ) | (85 | ) | ||||
| Change in fair value of acquisition contingent consideration | (136 | ) | – | |||||
| Income before provision for income taxes | 4,248 | 3,621 | ||||||
| Provision for income taxes | 564 | 890 | ||||||
| Net income | $ | 3,684 | $ | 2,731 | ||||
| Income per common share – Basic | $ | 0.81 | $ | 0.60 | ||||
| Income per common share – Diluted | $ | 0.81 | $ | 0.60 | ||||
| Weighted average common shares outstanding – Basic | 4,497 | 4,438 | ||||||
| Weighted average common shares outstanding – Diluted | 4,497 | 4,438 | ||||||
| Dividends paid per common share | $ | 0.17 | $ | 0.17 | ||||
| Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited) | ||||||||
| (Amounts in thousands, except per share data) | ||||||||
| The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (1): | ||||||||
| Three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Net income | $ | 3,684 | $ | 2,731 | ||||
| Provision for income taxes | 564 | 890 | ||||||
| Depreciation and amortization | 1,737 | 871 | ||||||
| Interest expense | 69 | 101 | ||||||
| EBITDA | 6,054 | 4,593 | ||||||
| Share-based compensation | 1,323 | 822 | ||||||
| Acquisition related costs | 126 | 123 | ||||||
| Change in fair value of acquisition contingent consideration | 136 | – | ||||||
| Adjusted EBITDA | $ | 7,639 | $ | 5,538 | ||||
| Three months ended | ||||||||
| March 31, | March 31, | |||||||
| Components of interest, net | 2025 | 2024 | ||||||
| Amortization of discount on accounts receivable with extended payment terms | $ | (12 | ) | $ | (6 | ) | ||
| Interest income | (243 | ) | (298 | ) | ||||
| Interest expense | 69 | 101 | ||||||
| Interest, net | $ | (186 | ) | $ | (203 | ) | ||
(1) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, acquisition related costs and change in fair value of acquisition contingent consideration. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
| The table below presents net income reconciled to adjusted net income (Non-GAAP) (2): | ||||||||
| Three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Net income | $ | 3,684 | $ | 2,731 | ||||
| Acquisition related costs, net of income taxes | 95 | 92 | ||||||
| Change in fair value of acquisition contingent consideration | 136 | – | ||||||
| Adjusted net income | $ | 3,915 | $ | 2,823 | ||||
| Adjusted net income per common share – diluted | $ | 0.86 | $ | 0.62 | ||||
(2) We define adjusted net income as net income excluding acquisition related costs, net of income taxes and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income and adjusted net income per common share as supplemental measures of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that adjusted net income and adjust net income per common share provide useful information to investors and others in understanding and evaluating our operating results. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.
| The table below presents the operational metric of gross billings by segment (3): | ||||||||
| Three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2025 | 2024 | |||||||
| Distribution gross billings | $ | 453,575 | $ | 334,636 | ||||
| Solutions gross billings | 21,021 | 20,632 | ||||||
| Total gross billings | $ | 474,596 | $ | 355,268 | ||||
(3) Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, include amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.
FAQ
How much did Climb Global Solutions (CLMB) revenue grow in Q1 2025?
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How did Climb Solutions perform in Europe during Q1 2025?
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