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1. Company Snapshot

1.a. Company Description

Climb Global Solutions Inc.operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally.It operates in two segments, Distribution and Solutions.


The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators under the names Climb Channel Solutions and Sigma Software Distribution; and software, hardware, and services under the names TechXtend and Grey Matter.It also resells computer software and hardware developed by others, as well as provides technical services to end user customers.In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware.


Climb Global Solutions Inc.markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials.It provides IT distribution and solutions for companies in the security, data management, cloud, connectivity, storage and HCI, virtualization, and software and ALM industries.


The company was formerly known as Wayside Technology Group, Inc.and changed its name to Climb Global Solutions Inc.in October 2022.


Climb Global Solutions Inc.was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

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1.b. Last Insights on CLMB

The recent 3-month performance of Climb Global Solutions, Inc. was negatively impacted by a lack of significant developments in its business operations. Despite the company's efforts to strengthen its partnerships, as evident from the recognition of Freshworks as Strategic Partner of the Year at the 2025 Climb Partner Conference, the absence of substantial growth initiatives and new product launches hindered its progress. Furthermore, the company's recent earnings release did not provide any significant updates on its financial performance, which may have contributed to the negative sentiment.

1.c. Company Highlights

2. Climb Global Solutions' Q3 2025 Earnings: A Strong Performance

Climb Global Solutions reported a robust third-quarter 2025 financial performance, with net sales increasing 35% to $161.3 million, driven by double-digit organic growth from new and existing vendors, as well as the contribution from the DSS acquisition. Gross profit rose 6% to $25.7 million, while gross profit as a percentage of gross billings was 5.1%, compared to 5.2% in the year-ago period. Adjusted net income was $6 million or $1.31 per diluted share, beating analyst estimates of $1.15 per share.

Publication Date: Nov -24

📋 Highlights
  • Organic Growth and Acquisition Impact:: Double-digit organic growth and DSS acquisition contributed to 35% net sales increase to $161.3M.
  • Gross Billings Performance:: Total gross billings rose 8% to $504.6M, with distribution up 9% to $481.9M vs. solutions down 5% to $22.7M.
  • Profitability Metrics:: Gross profit grew 6% to $25.7M (5.1% margin) despite SG&A rising to $16.2M and net income dropping to $4.7M ($1.02 EPS).
  • Balance Sheet Strength:: $49.8M cash and $50M credit facility ($100M liquidity) support M&A, with $600K spent on acquisition evaluation costs.

Segment Performance

The company's distribution segment gross billings rose 9% to $481.9 million, while the solutions segment gross billings decreased 5% to $22.7 million, attributed to fluctuations from large customers in the US. The CEO, Dale Foster, noted that the team delivered solid results, maintained operational discipline, and drove growth despite challenging comparables from the previous year.

Acquisition and Growth Strategy

Climb Global Solutions continues to focus on strategic initiatives, including evaluating acquisition opportunities that align with its growth strategy and enhance its capabilities. The company has a deep pipeline of strategic acquisitions and is actively evaluating opportunities, with a focus on deals ranging from $10 million to $40 million. The company launched the Climb AI Academy in the DACH region to equip infrastructure partners with the tools and expertise to effectively position themselves in the AI space.

Financial Position and Outlook

The company's balance sheet showed cash and cash equivalents of $49.8 million as of September 30, 2025, and no borrowings under its $50 million revolving credit facility. The Board of Directors declared a quarterly dividend of $0.17 per share of common stock payable on November 17, 2025. With $100 million available for M&A, the company is well-positioned to drive growth through strategic acquisitions.

Valuation and Growth Prospects

With a P/E Ratio of 22.32 and an EV/EBITDA of 11.12, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 4.7%, indicating a steady growth trajectory. The company's ROIC of 20.34% and ROE of 21.31% demonstrate its ability to generate strong returns on capital. The dividend yield of 0.65% provides a relatively stable income stream. Overall, Climb Global Solutions' strong financial performance, strategic initiatives, and reasonable valuation make it an attractive investment opportunity.

3. NewsRoom

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New Strong Sell Stocks for Nov. 26

Nov -26

Source: zacks.com

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SKIL or CLMB: Which Is the Better Value Stock Right Now?

Nov -19

Source: zacks.com

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New Strong Sell Stocks for Nov. 19th

Nov -19

Source: zacks.com

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New Strong Sell Stocks for Nov. 17th

Nov -17

Source: zacks.com

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Climb Channel Solutions Announces North American Partnership with Seclore

Nov -05

Source: globenewswire.com

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New Strong Sell Stocks for Nov. 5

Nov -05

Source: zacks.com

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Climb Global Solutions (NASDAQ:CLMB) vs. MarketWise (NASDAQ:MKTW) Head-To-Head Survey

Nov -05

Source: defenseworld.net

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Climb Global Solutions, Inc. (CLMB) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.03%)

6. Segments

Distribution

Expected Growth: 8.5%

Growing e-commerce demand, increasing need for efficient logistics, and advancements in digital technologies are driving the distribution market growth, with Climb Global Solutions, Inc. poised to benefit from its expertise in supply chain operations.

Solutions

Expected Growth: 15.4%

Growing demand for data analytics, increasing cyber threats, and digital transformation drive the growth of Climb Global Solutions, Inc. The company's innovative solutions empower businesses to make informed decisions, driving growth and profitability.

7. Detailed Products

Cybersecurity Services

Comprehensive cybersecurity solutions to protect businesses from cyber threats

Cloud Migration

Seamless migration of applications and data to cloud-based infrastructure

Data Analytics

Actionable insights and data-driven decision-making solutions

IT Consulting

Expert IT consulting services for strategic technology planning and implementation

Digital Transformation

End-to-end digital transformation solutions for business growth and innovation

Managed IT Services

Proactive IT management and support services for businesses

8. Climb Global Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Climb Global Solutions, Inc. is medium due to the availability of alternative solutions in the market.

Bargaining Power Of Customers

The bargaining power of customers for Climb Global Solutions, Inc. is high due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Climb Global Solutions, Inc. is low due to the availability of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Climb Global Solutions, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Climb Global Solutions, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.28%
Debt Cost 8.81%
Equity Weight 97.72%
Equity Cost 8.81%
WACC 8.81%
Leverage 2.33%

11. Quality Control: Climb Global Solutions, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
LSI Industries

A-Score: 5.7/10

Value: 3.9

Growth: 6.3

Quality: 6.0

Yield: 3.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Avnet

A-Score: 5.6/10

Value: 6.9

Growth: 5.2

Quality: 3.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Climb Global Solutions

A-Score: 5.4/10

Value: 3.9

Growth: 8.2

Quality: 6.1

Yield: 2.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
PC Connection

A-Score: 5.1/10

Value: 5.5

Growth: 5.8

Quality: 5.9

Yield: 2.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
ScanSource

A-Score: 4.6/10

Value: 7.3

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Snap One

A-Score: 3.9/10

Value: 6.9

Growth: 6.7

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

109.67$

Current Price

109.67$

Potential

-0.00%

Expected Cash-Flows