Climb Global Solutions (CLMB 5.28%), a technology distribution and solutions company with a major focus on serving value-added resellers and software vendors, released its second quarter 2025 results on July 30, 2025. Climb posted a substantial revenue jump—$159.3 million (GAAP) in Q2 2025, an increase of 73.0% from $92.1 million in the prior year period, beating expectations of $113.3 million. Non-GAAP earnings per share landed at $1.39, far ahead of the $0.90 analyst consensus. These results mark a decisive beat across every key metric, driven by a blend of organic growth and the successful integration of its Douglas Stewart Software & Services (DSS) acquisition. Management reaffirmed its dividend and noted further investments to drive efficiency and scale, resulting in a robust and well-above-forecast quarter.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.39 | $0.90 | $0.83 | 67.5% |
| Revenue | $159.3 million | $113.3 million | $92.1 million | 72.9% |
| Adjusted EBITDA | $11.4 million | $6.9 million | 65.0% | |
| Gross Profit | $26.3 million | $18.6 million | 41.5% | |
| Gross Billings | $500.6 million | $359.8 million | 39.1% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Climb Global Solutions: Business Model and Recent Focus
Climb Global Solutions operates as a technology distributor, connecting software vendors and technology providers with resellers across the globe. About 95% of its revenue comes from its Distribution segment in FY2024, which emphasizes efficient delivery of hardware, software, and increasingly cloud-based technologies to business customers.
The company’s recent focus has been on strengthening vendor and customer relationships, expanding its product lineup—especially cloud and cybersecurity solutions—and growing its reach through acquisitions. Key success factors for Climb include the ability to efficiently distribute technology products, maintain strong partnerships, diversify through new and established vendors, and integrate new acquisitions quickly.
Quarter Highlights: Sales Growth, Strategic Moves, and Segment Performance
The standout result for the period is the company’s revenue growth, which hit $159.3 million (GAAP)—marking a sharp jump over both the prior-year figure and the $113.3 million analyst estimate. This increase stems from both strong demand within existing channels and the incremental sales provided by its DSS acquisition, especially in the education sector. Gross billings—reflecting the total value of goods and services billed—rose to $500.6 million, up 39.0%, with the Distribution segment delivering $477.0 million and the Solutions segment at $23.5 million in gross billings. The Distribution segment continued as the backbone of the company, responsible for about 95% of consolidated net sales and 86% of gross profit for the year ended December 31, 2024.
Climb expanded its vendor lineup to include more cloud and emerging security solutions. Notably, the company onboarded Darktrace, an artificial intelligence-powered cybersecurity vendor, with management citing rapid pipeline growth for this new partnership. Cloud and hybrid cloud products remain a core push, reflecting industry changes in how technology is adopted by business customers.
The company’s operating leverage also improved. Adjusted EBITDA (non-GAAP) grew to $11.4 million, a 64% increase from the prior year. The effective margin—measuring adjusted EBITDA as a share of gross profit—expanded by 6 percentage points to 43.3%. The SG&A expense ratio, a metric which tracks selling, general, and administrative costs as a share of gross billings, fell from 3.6% to 3.3% versus Q2 2024. These efficiency gains are linked to the recent rollout of a new enterprise resource planning (ERP) system, now live across all divisions.
In terms of geography, North America saw growth, as did European operations. The company continued to recover from a prior-year loss of a major vendor in Europe by signing new partnerships and reorganizing its regional team. The DSS acquisition, completed in July 2024, provided momentum in the education segment, which has shown seasonal sales strength heading into the school year, with higher demand from education customers as they prepare for the next school year.
Climb paid out a quarterly dividend of $0.17 per share, matching its prior-year level and extending a pattern of regular returns to shareholders. The business closed the quarter with $28.6 million in cash and only $0.5 million in debt, preserving liquidity to fund potential acquisitions or further scale its current operations. Inventory (GAAP) increased to $3.35 million as of quarter end. These actions gave the company room to maintain both growth investments and capital returns.
Looking Ahead: Guidance and Investor Watchpoints
Management did not provide formal earnings or revenue guidance for the next quarter or the remainder of fiscal 2025. However, leaders expressed confidence in building on first-half momentum and underlined an intent to seek strategic acquisition opportunities and further enhance operational efficiency through its ERP system rollout.
Investors will want to monitor ongoing diversification of vendor and customer relationships, as the company remains exposed to concentration risk with its largest partners.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
