Climb Global Solutions Reports Second Quarter 2026 Results
Rhea-AI Summary
Climb Global Solutions (NASDAQ:CLMB) reported Q2 2026 net sales up 9% year over year to $174.2 million, with gross billings rising 17% to $587.3 million and gross profit up 15% to $30.2 million, reflecting double‑digit organic growth and contributions from the Interworks acquisition.
Net income declined to $5.5 million ($0.30 per diluted share) from $6.0 million ($0.33), with adjusted net income at $5.5 million versus $6.4 million and adjusted EBITDA essentially flat at $11.3 million. Effective margin decreased to 37.5% from 43.3%, mainly due to higher SG&A, including Interworks-related expenses, variable sales compensation, legal and professional fees, IT investments, and a higher effective tax rate. Cash rose to $56.6 million at June 30, 2026, from $36.6 million at year-end 2025, and Climb reported no outstanding debt and no borrowings under its $50 million revolving credit facility.
Positive
- Net sales +9% to $174.2 million in Q2 2026
- Gross billings +17% to $587.3 million; gross profit +15% to $30.2 million
- Adjusted EBITDA stable at $11.3 million versus $11.4 million
- Cash balance up to $56.6 million from $36.6 million
- No outstanding debt and unused $50 million revolving credit facility
- Top 20 vendors delivered double‑digit organic growth, aided by Interworks acquisition
Negative
- Net income down to $5.5 million from $6.0 million year over year
- Adjusted net income declined to $5.5 million from $6.4 million
- Effective margin fell to 37.5% from 43.3%
- SG&A expenses increased to $20.7 million from $16.4 million
- Higher effective tax rate reduced net income and adjusted net income
News Explained
The release defines gross billings as customer purchase value net of returns, credits, and taxes, including transaction amounts recognized on a net basis and therefore excluded from reported revenue; its
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Earnings report | Positive | -21.6% | Q1 sales and billings growth, but adjusted EBITDA growth remained limited |
| Feb 25 | Earnings report | Positive | -3.2% | FY2025 sales, net income, adjusted EBITDA, and billings increased |
| Oct 29 | Earnings report | Positive | -8.0% | Q3 sales and gross profit increased while effective margin declined |
| Jul 30 | Earnings report | Positive | +16.2% | Q2 sales, net income, adjusted EBITDA, and gross billings increased |
| Apr 30 | Earnings report | Positive | -4.5% | Q1 sales, net income, adjusted EBITDA, and billings increased |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The tag-specific record showed four negative 24-hour reactions and one positive reaction across the five prior earnings events, despite generally positive operating results.
Key Terms
gross billings financial
sg&a financial
adjusted ebitda financial
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Sales up
EATONTOWN, N.J., July 29, 2026 (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 second quarter ended June 30, 2026.
Second Quarter 2026 Summary vs. Same Year-Ago Quarter
- Net sales increased
9% to$174.2 million . - Gross billings (a key operational metric defined below) increased
17% to$587.3 million . Distribution segment gross billings increased18% to$562.9 million , and Solutions segment gross billings increased4% to$24.4 million . - Net income was
$5.5 million or$0.30 per diluted share, compared to$6.0 million or$0.33 per diluted share. - Adjusted net income (a non-GAAP financial measure defined below) was
$5.5 million or$0.30 per diluted share, compared to$6.4 million or$0.35 per diluted share. - Adjusted EBITDA (a non-GAAP financial measure defined below) was
$11.3 million compared to$11.4 million .
Management Commentary
“We executed on our core initiatives in the second quarter as we generated strong, double-digit organic growth with our top 20 vendors, benefitted from our acquisition of interworks.cloud (“Interworks”), and bolstered our line card with innovative vendors,” said CEO Dale Foster. “A key differentiator of our model is our highly selective approach to building the line card. Rather than pursuing scale for its own sake, we focus on strengthening our current partnerships and identifying emerging technologies that provide a unique value proposition for our reseller network and their end customers. Darktrace is a strong example of this strategy in action, having grown into one of our top 20 vendors within approximately 12 months of joining the Climb platform.”
“Earlier this month, we hosted our first Investor Day at the Nasdaq MarketSite, where our leadership team provided a deeper look into Climb’s differentiated business model, strategic priorities and long-term growth opportunities. The event gave us an opportunity to demonstrate how our specialized approach, global infrastructure and high-touch sales and technical capabilities create value for our vendors and channel partners. We appreciated the opportunity to engage directly with the investment community and provide greater visibility into the foundation we have built to support Climb’s next phase of growth, where we expect to more than double FY 2025 adjusted EBITDA by 2030.”
“Looking ahead, we remain focused on executing our strategic initiatives, including driving organic growth across our vendor portfolio, selectively expanding our line card and continuing to scale our global platform, with Europe remaining a key area of focus. We believe these initiatives, coupled with our robust balance sheet and disciplined approach to capital allocation, will enable us to continue driving value for our shareholders.”
Second Quarter 2026 Financial Results
Net sales in the second quarter of 2026 increased
Gross profit in the second quarter of 2026 increased
Selling, general, and administrative (“SG&A”) expenses in the second quarter of 2026 were
Net income in the second quarter of 2026 was
Adjusted EBITDA in the second quarter of 2026 was
On June 30, 2026, 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, July 30, 2026, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2026.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Thursday, July 30, 2026
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 245-3047
International dial-in number: (203) 518-9765
Conference ID: CLIMB
Webcast: Climb’s Q2 2026 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 US, 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 “looking ahead,” “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 strategic acquisitions on our business, payments of dividends and the Company’s capital allocation objectives. Adjusted EBITDA is a non-GAAP financial measure. The Company has not provided a target for net income, the most directly comparable GAAP financial measure, or a quantitative reconciliation of the 2030 adjusted EBITDA goal to net income because the amounts of future income taxes, interest expense, depreciation and amortization, share-based compensation, acquisition-related costs and changes in the fair value of acquisition contingent consideration cannot be reasonably predicted without unreasonable efforts. These items could be material, and actual net income could differ materially from the amount implied by the adjusted EBITDA goal. 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 Interworks, our ability to sustain organic growth; identify, finance, complete and integrate acquisitions on acceptable terms; realize anticipated benefits and synergies; manage changes in product mix and gross margins; and execute planned investments in systems, personnel and infrastructure; 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, , contribution of key vendor relationships and support programs, inflation, import and export tariffs, the successful integration of artificial intelligence tools, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein speak only as of the date of this release and are 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, 2025, and from time to time in the Company’s filings with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release, except as required by law.
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) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 56,563 | $ | 36,563 | |||
| Accounts receivable, net of allowance for expected credit losses of | 295,258 | 324,345 | |||||
| Inventory, net | 4,579 | 2,502 | |||||
| Prepaid expenses and other current assets | 12,639 | 10,825 | |||||
| Total current assets | 369,039 | 374,235 | |||||
| Equipment and leasehold improvements, net | 13,647 | 13,339 | |||||
| Goodwill | 41,946 | 36,838 | |||||
| Other intangibles, net | 34,520 | 32,228 | |||||
| Right-of-use assets, net | 1,849 | 1,717 | |||||
| Accounts receivable long-term, net | 857 | 1,233 | |||||
| Other assets | 492 | 510 | |||||
| Deferred income tax assets | 148 | 133 | |||||
| Total assets | $ | 462,498 | $ | 460,233 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 292,157 | $ | 309,670 | |||
| Accrued expenses and other current liabilities | 35,060 | 26,835 | |||||
| Lease liability, current portion | 683 | 791 | |||||
| Term loan, current portion | — | 191 | |||||
| Total current liabilities | 327,900 | 337,487 | |||||
| Lease liability, net of current portion | 1,368 | 1,216 | |||||
| Deferred income tax liabilities | 5,741 | 4,923 | |||||
| Other non-current liabilities | 2,497 | 28 | |||||
| Total liabilities | 337,506 | 343,654 | |||||
| Stockholders' equity | |||||||
| Common stock, $.01 par value; 40,000,000 shares authorized, 21,138,000 shares | |||||||
| issued, and 18,660,639 and 18,442,472 shares outstanding, respectively | 211 | 53 | |||||
| Additional paid-in capital | 43,854 | 42,338 | |||||
| Treasury stock, at cost, 2,477,361 and 2,695,528 shares, respectively | (15,287 | ) | (14,909 | ) | |||
| Retained earnings | 95,893 | 87,039 | |||||
| Accumulated other comprehensive income | 321 | 2,058 | |||||
| Total stockholders' equity | 124,992 | 116,579 | |||||
| Total liabilities and stockholders' equity | $ | 462,498 | $ | 460,233 | |||
| CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Sales | $ | 356,585 | $ | 297,328 | $ | 174,209 | $ | 159,284 | ||||||||
| Cost of sales | 299,929 | 247,624 | 144,052 | 132,976 | ||||||||||||
| Gross profit | 56,656 | 49,704 | 30,157 | 26,308 | ||||||||||||
| Selling, general and administrative expenses | 41,001 | 33,112 | 20,668 | 16,357 | ||||||||||||
| Depreciation & amortization expense | 4,063 | 3,720 | 2,080 | 1,982 | ||||||||||||
| Acquisition related costs | 319 | 139 | 19 | 13 | ||||||||||||
| Total selling, general and administrative expenses | 45,383 | 36,971 | 22,767 | 18,352 | ||||||||||||
| Income from operations | 11,273 | 12,733 | 7,390 | 7,956 | ||||||||||||
| Interest, net | 418 | 337 | 275 | 151 | ||||||||||||
| Foreign currency transaction gain (loss) | 24 | (567 | ) | (120 | ) | 14 | ||||||||||
| Change in fair value of acquisition contingent consideration | - | (515 | ) | - | (379 | ) | ||||||||||
| Income before provision for income taxes | 11,715 | 11,988 | 7,545 | 7,742 | ||||||||||||
| Provision for income taxes | 2,861 | 2,338 | 2,025 | 1,774 | ||||||||||||
| Net income | $ | 8,854 | $ | 9,650 | $ | 5,520 | $ | 5,968 | ||||||||
| Income per common share - Basic | $ | 0.48 | $ | 0.53 | $ | 0.30 | $ | 0.33 | ||||||||
| Income per common share - Diluted | $ | 0.48 | $ | 0.53 | $ | 0.30 | $ | 0.33 | ||||||||
| Weighted average common shares outstanding - Basic | 18,256 | 18,036 | 18,296 | 18,084 | ||||||||||||
| Weighted average common shares outstanding - Diluted | 18,256 | 18,036 | 18,296 | 18,084 | ||||||||||||
| Dividends paid per common share | $ | - | $ | 0.09 | $ | - | $ | 0.04 | ||||||||
| Reconciliation of GAAP and Non-GAAP Financial Measures and Key Operational Metrics (unaudited) | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (1): | ||||||||||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 8,854 | $ | 9,650 | $ | 5,520 | $ | 5,968 | ||||||||
| Provision for income taxes | 2,861 | 2,338 | 2,025 | 1,774 | ||||||||||||
| Depreciation and amortization | 4,063 | 3,720 | 2,080 | 1,982 | ||||||||||||
| Interest expense | 185 | 159 | 85 | 90 | ||||||||||||
| EBITDA | 15,963 | 15,867 | 9,710 | 9,814 | ||||||||||||
| Share-based compensation | 2,929 | 2,496 | 1,570 | 1,173 | ||||||||||||
| Acquisition related costs | 319 | 139 | 19 | 13 | ||||||||||||
| Change in fair value of acquisition contingent consideration | - | 515 | - | 379 | ||||||||||||
| Adjusted EBITDA | $ | 19,211 | $ | 19,017 | $ | 11,299 | $ | 11,379 | ||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| Components of interest, net | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Amortization of discount on accounts receivable with extended payment terms | $ | (38 | ) | $ | (23 | ) | $ | (19 | ) | $ | (11 | ) | ||||
| Interest income | (565 | ) | (473 | ) | (341 | ) | (230 | ) | ||||||||
| Interest expense | 185 | 159 | 85 | 90 | ||||||||||||
| Interest, net | $ | (418 | ) | $ | (337 | ) | $ | (275 | ) | $ | (151 | ) | ||||
(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): | ||||||||||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net income | $ | 8,854 | $ | 9,650 | $ | 5,520 | $ | 5,968 | ||||||||
| Acquisition related costs, net of income taxes | 239 | 104 | 14 | 10 | ||||||||||||
| Change in fair value of acquisition contingent consideration | - | 515 | - | 379 | ||||||||||||
| Adjusted net income | $ | 9,093 | $ | 10,269 | $ | 5,534 | $ | 6,357 | ||||||||
| Adjusted net income per common share - diluted | $ | 0.49 | $ | 0.56 | $ | 0.30 | $ | 0.35 | ||||||||
(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): | ||||||||||||||||
| Six months ended | Three months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Distribution gross billings | $ | 1,083,797 | $ | 930,619 | $ | 562,863 | $ | 477,043 | ||||||||
| Solutions gross billings | 46,290 | 44,531 | 24,396 | 23,510 | ||||||||||||
| Total gross billings | $ | 1,130,087 | $ | 975,150 | $ | 587,259 | $ | 500,553 | ||||||||
(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.
