Climb Global Solutions (CLMB) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose 73% year-over-year to $159.3 million, driven by double-digit organic growth and the DSS acquisition, with strong contributions from the Distribution segment and expanded vendor relationships.

• Net income increased 74% to $6.0 million ($1.30 per diluted share), with adjusted net income up 68% to $6.4 million ($1.39 per share), reflecting strong operational leverage.

• Adjusted EBITDA climbed 64% to $11.4 million, with effective margin improving to 43.3% from 37.3% year-over-year.

• Management highlighted successful ERP implementation, new vendor partnerships, and leadership appointments to support future scalability and growth.

• DSS acquisition expanded reach in the education sector and contributed incremental and seasonal strength.

Financial highlights

• Gross billings rose 39% year-over-year to $500.6 million; distribution segment up 40% to $477 million, solutions segment up 19% to $23.5 million.

• Gross profit increased 42% to $26.3 million; gross profit as a percentage of gross billings rose to 5.3% from 5.2%.

• SG&A expenses were $16.4 million, with DSS accounting for $0.9 million of the increase; SG&A as a percentage of gross billings decreased to 3.3%.

• Adjusted EBITDA for Q2 2025 was $11.4 million; effective margin reached 43.3%.

• Cash and cash equivalents at June 30, 2025, were $28.6 million, with working capital up $12.2 million since year-end.

Outlook and guidance

• Management expects continued growth from organic initiatives and recent acquisitions, leveraging a fully implemented ERP system for operational efficiency and scalability.

• Sufficient liquidity and unused credit facility expected to fund working capital and growth for at least 12 months.

• Focus remains on expanding market share in the U.S. and Europe and evaluating strategic M&A opportunities.

• SG&A as a percentage of gross billings expected to remain around 3.3% going forward.

• Gross margin as a percentage of gross billings projected to stay in the 5%-5.1% range, with potential for expansion through services.