EATONTOWN, N.J., July 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 second quarter ended June 30, 2025.

Second Quarter 2025 Summary vs. Same Year-Ago Quarter

Net sales increased 73% to $159.3 million.
Net income increased 74% to $6.0 million or $1.30 per diluted share.
Adjusted net income (a non-GAAP financial measure defined below) increased 68% to $6.4 million or $1.39 per diluted share.
Adjusted EBITDA (a non-GAAP financial measure defined below) increased 64% to $11.4 million.
Gross billings (a key operational metric defined below) increased 39% to $500.6 million. Distribution segment gross billings increased 40% to $477.0 million, and Solutions segment gross billings increased 19% to $23.5 million.

Management Commentary

"We continued to execute on our core initiatives in Q2, resulting in another period of exceptional performance with material increases across all key financial metrics," said CEO Dale Foster. "During the quarter, we generated double-digit organic growth by strengthening relationships with key customers, bolstering our line card with new, innovative vendors, and growing our market share in both the U.S. and Europe. We also benefited from the incremental contribution and seasonal strength of Douglas Stewart Software & Services, LLC ("DSS"), which typically sees higher demand from education customers as they ramp ahead of the next school year.

"Looking ahead, we will continue to build on the momentum established in the first half of the year, with a clear focus on driving sustainable growth and operational execution. With our ERP system now fully implemented, we expect to capture operational efficiencies that will enhance scalability and drive operating leverage across our global platform. We also remain focused on identifying strategic acquisition opportunities that can enhance our capabilities and complement our existing footprint. These initiatives, coupled with our robust balance sheet and demonstrated track record of success, will enable us to deliver on both our organic and inorganic growth objectives in 2025 and beyond."

Dividend

Subsequent to quarter end, on July 29, 2025, Climb's Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on August 15, 2025, to shareholders of record on August 11, 2025.

Second Quarter 2025 Financial Results

Net sales in the second quarter of 2025 increased 73% to $159.3 million compared to $92.1 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 second quarter of 2025 increased 39% to $500.6 million compared to $359.8 million in the year-ago period.

Gross profit in the second quarter of 2025 increased 42% to $26.3 million compared to $18.6 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 second quarter of 2025 were $16.4 million compared to $13.0 million in the year-ago period. DSS represented $0.9 million of the increase. SG&A as a percentage of gross billings decreased to 3.3% for the second quarter of 2025 compared to 3.6% in the year-ago period.

Net income in the second quarter of 2025 increased 74% to $6.0 million or $1.30 per diluted share, compared to $3.4 million or $0.75 per diluted share for the same period in 2024. Adjusted net income increased 68% to $6.4 million or $1.39 per diluted share, compared to $3.8 million or $0.83 per diluted share for the year-ago period.

Adjusted EBITDA in the second quarter of 2025 increased 64% to $11.4 million compared to $6.9 million for the same period in 2024. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company's acquisition of DSS. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 600 basis points to 43.3% compared to 37.3% for the same period in 2024.

On June 30, 2025, cash and cash equivalents were $28.6 million compared to $29.8 million on December 31, 2024, while working capital increased by $12.2 million during this period. The decrease in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.5 million of outstanding debt on June 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, July 31, 2025, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2025.

Climb management will host the conference call, followed by a question-and-answer period.

Date: Thursday, July 31, 2025

Time: 8:30 a.m. Eastern time

Toll-free dial-in number: (800) 225-9448

International dial-in number: (203) 518-9708

Conference ID: CLIMB

Webcast: Climb's Q2 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)

		June 30, 2025			December 31, 2024

ASSETS

Current assets
	Cash and cash equivalents	$	28,587		$	29,778
	Accounts receivable, net of allowance for doubtful accounts of $693 and $588, respectively		289,083			341,597
	Inventory, net		3,349			2,447
	Prepaid expenses and other current assets		9,164			6,874
Total current assets			330,183			380,696

Equipment and leasehold improvements, net			13,626			12,853
Goodwill			37,270			34,924
Other intangibles, net			35,718			36,550
Right-of-use assets, net			1,509			1,965
Accounts receivable long-term, net			1,209			1,174
Other assets			649			824
Deferred income tax assets			527			193

Total assets		$	420,691		$	469,179

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
	Accounts payable and accrued expenses	$	307,715		$	370,397
	Lease liability, current portion		727			654
	Term loan, current portion		474			560
Total current liabilities			308,916			371,611

	Lease liability, net of current portion		1,116			1,685
	Deferred income tax liabilities		5,101			4,723
	Term loan, net of current portion		—			191
	Non-current liabilities		381			381

Total liabilities			315,514			378,591


Stockholders' equity
	Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares
	issued, and 4,617,206 and 4,601,302 shares outstanding, respectively		53			53
	Additional paid-in capital		40,043			37,977
	Treasury stock, at cost, 667,294 and 683,198 shares, respectively		(14,266	)		(13,337	)
	Retained earnings		76,904			68,787
	Accumulated other comprehensive gain (loss)		2,443			(2,892	)
Total stockholders' equity			105,177			90,588
Total liabilities and stockholders' equity		$	420,691		$	469,179

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,
		2025			2024			2025			2024

Net Sales		$	297,328		$	184,498		$	159,284		$	92,076

Cost of sales			247,624			148,921			132,976			73,518

Gross profit			49,704			35,577			26,308			18,558


Selling, general and administrative expenses			33,112			25,496			16,357			12,974
Depreciation & amortization expense			3,720			1,736			1,982			865
Acquisition related costs			139			592			13			469
Total selling, general and administrative expenses			36,971			27,824			18,352			14,308

Income from operations			12,733			7,753			7,956			4,250

Interest, net			337			557			151			354
Foreign currency transaction loss			(567	)		(246	)		14			(162	)
Change in fair value of acquisition contingent consideration			(515	)		-			(379	)		-
Income before provision for income taxes			11,988			8,064			7,742			4,442
Provision for income taxes			2,338			1,903			1,774			1,012

Net income		$	9,650		$	6,161		$	5,968		$	3,430

Income per common share - Basic		$	2.11		$	1.35		$	1.30		$	0.75
Income per common share - Diluted		$	2.11		$	1.35		$	1.30		$	0.75

Weighted average common shares outstanding - Basic			4,509			4,449			4,521			4,461
Weighted average common shares outstanding - Diluted			4,509			4,449			4,521			4,461

Dividends paid per common share		$	0.34		$	0.34		$	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):

		Six months ended						Three months ended
		June 30,			June 30,			June 30,			June 30,
		2025			2024			2025			2024

Net income		$	9,650		$	6,161		$	5,968		$	3,430
	Provision for income taxes		2,338			1,903			1,774			1,012
	Depreciation and amortization		3,720			1,736			1,982			865
	Interest expense		159			161			90			60
EBITDA			15,867			9,961			9,814			5,367
	Share-based compensation		2,496			1,906			1,173			1,084
	Acquisition related costs		139			592			13			469
	Change in fair value of acquisition contingent consideration		515			-			379			-
Adjusted EBITDA		$	19,017		$	12,459		$	11,379		$	6,920


		Six months ended						Three months ended
		June 30,			June 30,			June 30,			June 30,
Components of interest, net		2025			2024			2025			2024

	Amortization of discount on accounts receivable with extended payment terms	$	(23	)	$	(17	)	$	(11	)	$	(11	)
	Interest income		(473	)		(701	)		(230	)		(403	)
	Interest expense		159			161			90			60
Interest, net		$	(337	)	$	(557	)	$	(151	)	$	(354	)

(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,
		2025			2024			2025			2024

	Net income	$	9,650		$	6,161		$	5,968		$	3,430
	Acquisition related costs, net of income taxes		104			444			10			352
	Change in fair value of acquisition contingent consideration		515			-			379			-
	Adjusted net income	$	10,269		$	6,605		$	6,357		$	3,782

	Adjusted net income per common share - diluted	$	2.25		$	1.45		$	1.39		$	0.83

(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,
		2025			2024			2025			2024

	Distribution gross billings	$	930,619		$	674,704		$	477,043		$	340,067
	Solutions gross billings		44,531			40,406			23,510			19,774
	Total gross billings	$	975,150		$	715,110		$	500,553		$	359,841

(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.

Climb Global Solutions Reports Second Quarter 2025 Results