EATONTOWN, N.J., Oct. 29, 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 third quarter ended September 30, 2025.
Third Quarter 2025 Summary vs. Same Year-Ago Quarter
-- Net sales increased 35% to $161.3 million.
-- Net income was $4.7 million or $1.02 per diluted share compared to $5.5
million or $1.19 per diluted share.
-- Adjusted net income (a non-GAAP financial measure defined below) was $6.0
million or $1.31 per diluted share compared to $7.1 million or $1.55 per
diluted share.
-- Adjusted EBITDA (a non-GAAP financial measure defined below) was $10.9
million compared to $11.1 million.
-- Gross billings (a key operational metric defined below) increased 8% to
$504.6 million. Distribution segment gross billings increased 9% to
$481.9 million, and Solutions segment gross billings decreased 5% to
$22.7 million.
Management Commentary
"We continued to execute on our core initiatives in Q3 as we generated double digit organic growth, benefitted from the acquisition of Douglas Stewart Software & Services, LLC ("DSS") last year, and deepened existing partnerships while signing new, cutting-edge vendors to our line card," said CEO Dale Foster. "I'm proud of our team's ability to deliver solid results, maintain operational discipline, and continue driving growth, even in the face of a challenging comp from last year with unique profit characteristics."
"Looking ahead, we will continue to work through a healthy pipeline of strategic acquisition opportunities, with increasing interest in European markets, to enhance our offerings and expand our presence in both North America and overseas. We believe these initiatives, coupled with our robust balance sheet and demonstrated track record of accretive M&A, will enable us to close out 2025 on a strong note and deliver another year of record results."
Dividend
Subsequent to quarter end, on October 28, 2025, Climb's Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on November 17, 2025, to shareholders of record on November 10, 2025.
Third Quarter 2025 Financial Results
Net sales in the third quarter of 2025 increased 35% to $161.3 million compared to $119.3 million for the same period in 2024. This reflects double digit organic growth from new and existing vendors, as well as contribution from the Company's acquisition of DSS on July 31, 2024. In addition, gross billings in the third quarter of 2025 increased 8% to $504.6 million compared to $465.2 million in the year-ago period.
Gross profit in the third quarter of 2025 increased 6% to $25.7 million compared to $24.3 million for the same period in 2024. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSS.
Selling, general, and administrative ("SG&A") expenses in the third quarter of 2025 were $16.2 million compared to $13.9 million in the year-ago period. SG&A as a percentage of gross billings was 3.2% for the third quarter of 2025 compared to 3.0% in the year-ago period.
Net income in the third quarter of 2025 was $4.7 million or $1.02 per diluted share, compared to $5.5 million or $1.19 per diluted share for the same period in 2024. Adjusted net income was $6.0 million or $1.31 per diluted share, compared to $7.1 million or $1.55 per diluted share for the year-ago period.
Adjusted EBITDA in the third quarter of 2025 was $10.9 million compared to $11.1 million for the same period in 2024. The slight decrease was primarily driven by a large vendor transaction in the year-ago period that carried a higher flow-through to Adjusted EBITDA as sales compensation related to this transaction was paid through a contingent earnout. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, was 42.3% compared to 45.7% for the same period in 2024.
On September 30, 2025, cash and cash equivalents were $49.8 million compared to $29.8 million on December 31, 2024, while working capital increased by $18.3 million during this period. The increase in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.3 million of outstanding debt on September 30, 2025, with no borrowings outstanding under its $50 million revolving credit facility.
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, October 30, 2025, at 8:30 a.m. Eastern time to discuss its results for the third quarter ended September 30, 2025.
Climb management will host the conference call, followed by a question-and-answer period.
Date: Thursday, October 30, 2025
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 445-7795
International dial-in number: (785) 424-1699
Conference ID: CLIMB
Webcast: Climb's Q3 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. Our methodology for calculating gross billings was unchanged from prior periods. 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 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. 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)
September 30, 2025 December 31, 2024
---------------------- ---------------------
ASSETS
Current assets
Cash and cash
equivalents $ 49,842 $ 29,778
Accounts receivable, net
of allowance for
doubtful accounts of
$666 and $588,
respectively 224,471 341,597
Inventory, net 3,187 2,447
Prepaid expenses and
other current assets 10,016 6,874
-------------- --------------
Total current assets 287,516 380,696
Equipment and leasehold
improvements, net 13,485 12,853
Goodwill 36,777 34,924
Other intangibles, net 33,765 36,550
Right-of-use assets, net 1,881 1,965
Accounts receivable
long-term, net 878 1,174
Other assets 585 824
Deferred income tax assets 1,204 193
-------------- --------------
Total assets $ 376,091 $ 469,179
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued expenses $ 258,990 $ 370,397
Lease liability, current
portion 798 654
Term loan, current
portion 334 560
-------------- --------------
Total current liabilities 260,122 371,611
Lease liability, net of
current portion 1,405 1,685
Deferred income tax
liabilities 4,921 4,723
Term loan, net of
current portion -- 191
Non-current liabilities 381 381
-------------- --------------
Total liabilities 266,829 378,591
Stockholders' equity
Common stock, $.01 par
value; 10,000,000 shares
authorized, 5,284,500
shares
issued, and 4,613,446
and 4,601,302 shares
outstanding,
respectively 53 53
Additional paid-in
capital 41,136 37,977
Treasury stock, at cost,
671,054 and 683,198
shares, respectively (14,588) (13,337)
Retained earnings 80,829 68,787
Accumulated other
comprehensive gain
(loss) 1,832 (2,892)
-------------- --------------
Total stockholders' equity 109,262 90,588
Total liabilities and
stockholders' equity $ 376,091 $ 469,179
============== ==============
CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Amounts in thousands, except per share data)
Nine months ended Three months ended
September 30, September 30,
-------------------- --------------------
2025 2024 2025 2024
------- ------- ------- -------
Net Sales $458,671 $303,847 $161,343 $119,349
Cost of sales 383,234 244,014 135,610 95,092
Gross profit 75,437 59,833 25,733 24,257
Selling, general
and
administrative
expenses 49,339 39,433 16,226 13,937
Depreciation &
amortization
expense 5,696 2,933 1,976 1,197
Acquisition
related costs 733 1,201 594 609
------- ------- ------- -------
Total selling,
general and
administrative
expenses 55,768 43,567 18,796 15,743
Income from
operations 19,669 16,266 6,937 8,514
Interest, net 562 755 224 198
Foreign currency
transaction
(loss) gain (566) (688) 2 (442)
Change in fair
value of
acquisition
contingent
consideration (1,374) (1,152) (860) (1,152)
------- ------- ------- -------
Income before
provision for
income taxes 18,291 15,181 6,303 7,118
Provision for
income taxes 3,945 3,561 1,607 1,659
------- ------- ------- -------
Net income $ 14,346 $ 11,620 $ 4,696 $ 5,459
======= ======= ======= =======
Income per
common share -
Basic $ 3.13 $ 2.54 $ 1.02 $ 1.19
======= ======= ======= =======
Income per
common share -
Diluted $ 3.13 $ 2.54 $ 1.02 $ 1.19
======= ======= ======= =======
Weighted average
common shares
outstanding -
Basic 4,518 4,458 4,536 4,476
======= ======= ======= =======
Weighted average
common shares
outstanding -
Diluted 4,518 4,458 4,536 4,476
======= ======= ======= =======
Dividends paid
per common
share $ 0.51 $ 0.51 $ 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):
Nine months ended Three months ended
------------------------ --------------------------
September September September
30, 30, 30, September 30,
2025 2024 2025 2024
Net income $ 14,346 $ 11,620 $ 4,696 $ 5,459
Provision for income
taxes 3,945 3,561 1,607 1,659
Depreciation and
amortization 5,696 2,933 1,976 1,197
Interest expense 226 266 67 105
------ ------ ------ ------
EBITDA 24,213 18,380 8,346 8,420
Share-based compensation 3,574 2,810 1,078 904
Acquisition related
costs 733 1,201 594 609
Change in fair value of
acquisition contingent
consideration 1,374 1,152 860 1,152
Adjusted EBITDA $ 29,894 $ 23,543 $ 10,878 $ 11,085
====== ====== ====== ======
Nine months ended Three months ended
------------------------ --------------------------
September September September
30, 30, 30, September 30,
Components of interest,
net 2025 2024 2025 2024
------ ------ ------ ------
Amortization of discount
on accounts receivable
with extended payment
terms $ (34) $ (23) $ (10) $ (6)
Interest income (754) (998) (281) (297)
Interest expense 226 266 67 105
------ ------ ------ ------
Interest, net $ (562) $ (755) $ (224) $ (198)
====== ====== ====== ======
(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):
Nine months ended Three months ended
------------------------ --------------------------
September September September
30, 30, 30, September 30,
2025 2024 2025 2024
--- ------ --- ------ --- ------ --- ------
Net income $ 14,346 $ 11,620 $ 4,696 $ 5,459
Acquisition
related costs,
net of income
taxes 550 901 446 457
Change in fair
value of
acquisition
contingent
consideration 1,374 1,152 860 1,152
Adjusted net
income $ 16,270 $ 13,673 $ 6,002 $ 7,068
=== ====== === ====== === ====== === ======
Adjusted net
income per
common share -
diluted $ 3.55 $ 3.00 $ 1.31 $ 1.55
(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):
Nine months ended Three months ended
---------------------- --------------------------
September September September
30, 30, 30, September 30,
2025 2024 2025 2024
--------- --------- ------- -------
Distribution
gross
billings $1,412,503 $1,113,575 $ 481,884 $ 441,389
Solutions
gross
billings 67,247 66,719 22,716 23,795
Total gross
billings $1,479,750 $1,180,294 $ 504,600 $ 465,184
========= ========= ======= =======
(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.
(END) Dow Jones Newswires
October 29, 2025 16:05 ET (20:05 GMT)
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