Climb Global Solutions (CLMB) Q4 2025 earnings summary

Executive summary

• Achieved record results across all key financial metrics for Q4 and full year 2025, with FY 2025 net sales of $652.5 million (up 40%) and Q4 net sales of $193.8 million (up 20%), driven by organic growth, new vendor relationships, and operational efficiencies.

• FY 2025 net income rose 15% to $21.3 million ($4.64 per share); Q4 net income was flat at $7.0 million ($1.52 per share).

• Onboarded Fortinet as a major new vendor, expected to become a top contributor within 18 months.

• Acquired interworks.cloud (Interworks), expanding presence in Southeastern Europe and enhancing Microsoft relationship, adding over 600 cloud resellers.

• Focused on leveraging AI and automation for internal efficiencies and pursuing further accretive M&A.

Financial highlights

• Q4 gross billings increased 3% year-over-year to $625.4 million; distribution segment up 4%, solution segment flat.

• Q4 net sales rose 20% to $193.8 million, reflecting organic growth from new and existing vendors.

• Q4 gross profit was $29.8 million, down from $31.2 million due to a prior-year high-margin transaction.

• Q4 net income remained flat at $7 million ($1.52 per diluted share); adjusted net income also $7 million ($1.53 per share), down from $10.3 million ($2.26 per share) year-over-year.

• Cash and cash equivalents at year-end were $36.6 million, up from $29.8 million; working capital increased by $27.7 million.

Outlook and guidance

• Expects Fortinet to become a top three vendor, targeting $250 million in gross billings within 18 months.

• Anticipates continued organic and inorganic growth in 2026, supported by a strong balance sheet and disciplined execution.

• Plans to remain active in M&A, targeting one to two acquisitions in 2026.

• Dividend suspended starting Q1 2026 to retain capital for growth initiatives and acquisitions.