Climb Global Solutions Reports Fourth Quarter and Full Year 2025 Results

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 fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Summary vs. Same Year-Ago Quarter Net sales increased 20% to $193.8 million.Net income remained flat at $7.0 million or $1.52 per diluted share.Adjusted net income (a non-GAAP financial measure defined below) was $7.0 million or $1.53 per diluted share compared to $10.3 million or $2.26 per diluted share.Adjusted EBITDA (a non-GAAP financial measure defined below) was $13.0 million compared to $16.1 million.Gross billings (a key operational metric defined below) increased 3% to $625.4 million. Distribution segment gross billings increased 4% to $602.3 million, and Solutions segment gross billings remained flat at $23.1 million. FY 2025 Summary vs. FY 2024 Net sales increased 40% to $652.5 million.Net income increased 15% to $21.3 million or $4.64 per diluted share.Adjusted net income (a non-GAAP financial measure defined below) was $23.3 million or $5.08 per diluted share compared to $24.0 million or $5.26 per diluted share.Adjusted EBITDA (a non-GAAP financial measure defined below) increased 8% to $42.9 million.Gross billings (a key operational metric defined below) increased 18% to $2.1 billion. Distribution segment gross billings increased 19% to $2.0 billion and Solutions segment gross billings increased 1% to $90.3 million. Management Commentary “2025 was another exceptional year for Climb, highlighted by record results across all key financial metrics,” said CEO Dale Foster. “Throughout the year, we remained disciplined in evaluating new vendors while deepening relationships with key customers. In the fourth quarter alone, we evaluated nearly 100 potential vendor relationships and signed only two, including Fortinet, which became a primary onboarding focus as we expect them to ramp quickly and become a meaningful contributor to our business. This disciplined approach to vendor selection, combined with strong execution across our U.S. and European operations, drove double-digit growth and further strengthened our line card with innovative, high-demand technologies. “As announced earlier this week, we strengthened our European operations through the acquisition of Interworks, enhancing our Microsoft relationship and expanding our presence to Greece, Albania, Italy, Bulgaria and Romania. This transaction reflects our targeted and accretive M&A strategy, which focuses on expanding our geographic footprint, strengthening our line card and adding complementary capabilities to our platform. Interworks not only broadens our reach in high-growth European markets, but also enhances our ability to deliver value-added solutions to customers across the region. “Looking ahead, we remain focused on driving sustainable organic growth while maintaining the financial flexibility to support our long-term priorities. As part of this disciplined capital allocation approach, Climb’s Board of Directors determined to suspend the quarterly dividend to preserve financial flexibility and prioritize capital allocation objectives. We will also continue to evaluate M&A opportunities that can strengthen our vendor portfolio and expand our geographic footprint. We believe these initiatives, coupled with our disciplined execution and strong balance sheet, will enable us to deliver on our organic and inorganic growth objectives in 2026.” Dividend Climb’s Board of Directors has determined to suspend quarterly cash dividends on its common stock beginning with the first quarter of 2026 to preserve financial flexibility and prioritize the Company’s capital allocation objectives, including funding organic growth initiatives and evaluating strategic opportunities. Based on the Company’s strong return on equity, the Company plans to reinvest the capital for higher growth initiatives. The Company last declared a quarterly cash dividend on October 28, 2025, which was paid on November 17, 2025. Fourth Quarter 2025 Financial Results Net sales in the fourth quarter of 2025 increased 20% to $193.8 million compared to $161.8 million for the same period in 2024. This reflects organic growth from new and existing vendors. In addition, gross billings in the fourth quarter of 2025 increased 3% to $625.4 million compared to $605.0 million in the year-ago period. Gross profit in the fourth quarter of 2025 was $29.8 million compared to $31.2 million for the same period in 2024. The decrease was primarily driven by a large vendor transaction in the year-ago period that carried a higher-than-average margin profile. Selling, general, and administrative (“SG&A”) expenses in the fourth quarter of 2025 were $18.2 million compared to $17.1 million in the year-ago period. SG&A as a percentage of gross billings was 2.9% for the fourth quarter of 2025 compared to 2.8% in the year-ago period. Net income in the fourth quarter of 2025 remained flat at $7.0 million or $1.52 per diluted share compared to the prior year period. Adjusted net income was $7.0 million or $1.53 per diluted share, compared to $10.3 million or $2.26 per diluted share for the year-ago period. Adjusted EBITDA in the fourth quarter of 2025 was $13.0 million compared to $16.1 million for the same period in 2024. The 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 43.6% compared to 51.5% for the same period in 2024. On December 31, 2025, cash and cash equivalents were $36.6 million compared to $29.8 million on December 31, 2024, while working capital increased by $27.7 million during this period. The increase in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.2 million of outstanding debt on December 31, 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, February 26, 2026, at 8:30 a.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2025. Climb management will host the conference call, followed by a question-and-answer period. Date: Thursday, February 26, 2026Time: 8:30 a.m. Eastern timeToll-free dial-in number: (800) 274-8461International dial-in number: (203) 518-9814Conference ID: CLIMBWebcast: Climb’s Q4 & FY 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.... Read more

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