Climb Global Solutions (CLMB) Q4 2025 earnings summary

Executive summary

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

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

• Expanded partnership with Darktrace, generating $13 million in Q4 sales and a strong pipeline.

• Acquired interworks.cloud, 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

• FY 2025 net sales rose 40% to $652.5 million; Q4 net sales increased 20% to $193.8 million, reflecting organic growth from new and existing vendors.

• FY 2025 gross billings grew 18% to $2.1 billion; Q4 gross billings rose 3% to $625.4 million.

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

• FY 2025 net income rose 15% to $21.3 million ($4.64 per share); Q4 net income remained flat at $7 million ($1.52 per share).

• Adjusted EBITDA for FY 2025 increased 8% to $42.9 million; Q4 Adjusted EBITDA was $13 million, down from $16.1 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 pursue one or two acquisitions in 2026, with a focus on accretive, strategic targets.

• Board suspended quarterly dividend starting Q1 2026 to preserve flexibility for growth initiatives and M&A.