Climb Global Solutions (CLMB) Q2 2026 earnings summary

Executive summary

• Net sales rose 9% year-over-year to $174.2 million, driven by double-digit organic growth and the acquisition of InterWorks, which expanded presence in Southeastern Europe.

• Gross billings increased 17% to $587.3 million, with strong performance in both Distribution and Solutions segments and robust vendor growth.

• Gross profit grew 15% to $30.2 million, reflecting expansion in North America and Europe.

• Net income was $5.5 million ($0.30 per diluted share), down from $6.0 million ($0.33 per share) year-over-year, due to higher SG&A expenses and a higher effective tax rate.

• Adjusted EBITDA was $11.3 million, nearly flat year-over-year, with an effective margin of 37.5%.

Financial highlights

• Gross billings: $587.3 million (+17% YoY); net sales: $174.2 million (+9% YoY); gross profit: $30.2 million (+15% YoY).

• Distribution segment gross billings: $562.9 million (+8% YoY); Solutions segment: $24.4 million (+4% YoY).

• Net income: $5.5 million ($0.30 per diluted share), down from $6.0 million ($0.33 per share); adjusted net income: $5.5 million ($0.30 per share), down from $6.4 million ($0.35 per share).

• SG&A expenses rose to $20.7 million, reflecting InterWorks integration, higher sales compensation, legal/professional fees, and IT investments.

• Cash and cash equivalents at $56.6 million as of June 30, 2026, up from $36.6 million at year-end 2025; no debt or borrowings under $50 million credit facility.

Outlook and guidance

• Management expects to more than double FY 2025 adjusted EBITDA by 2030 through organic growth, deeper vendor and partner relationships, and M&A.

• Fortinet anticipated to be a key growth driver in Q3 and Q4; Adobe integration expected to boost results in the buying season.

• Targeting SG&A as a percentage of gross billings at or below 3% over time, with ongoing cost-cutting and efficiency initiatives.

• Management anticipates increased working capital needs as the business grows but expects current cash and credit facilities to be sufficient for at least the next 12 months.