Climb Global Solutions (CLMB) Q1 2026 earnings summary

Executive summary

• Net sales rose 32% year-over-year to $182.4 million, driven by organic growth and the Interworks.cloud acquisition.

• Gross billings increased 14% to $542.8 million, reflecting strong transaction volume and broad-based vendor growth.

• Net income was $3.3 million ($0.18 per diluted share), down from $3.7 million ($0.20 per share) year-over-year, due to higher SG&A and acquisition costs.

• Strategic investments in automation, AI tools, and selective vendor onboarding support scalable growth.

• Integration of Interworks.cloud is progressing, expanding presence and cloud reseller relationships in Southeastern Europe.

Financial highlights

• Gross profit increased 13% to $26.5 million; gross margin declined to 14.5% from 16.9% year-over-year.

• SG&A expenses rose to $20.3 million, mainly due to one-time investments and higher compensation.

• Adjusted EBITDA was $7.9 million, with an effective margin of 29.9%, down from 32.7% prior year.

• Cash and cash equivalents reached $41.8 million as of March 31, 2026, up from $36.6 million at year-end 2025.

• No outstanding debt; $50 million revolving credit facility remains undrawn.

Outlook and guidance

• Focus remains on organic growth, disciplined capital allocation, and accretive M&A.

• SG&A as a percentage of gross billings targeted to decrease as efficiency improves.

• Management expects working capital needs to rise with business growth but current liquidity is sufficient for at least the next 12 months.

• Dividend payments suspended in Q1 2026 to prioritize capital allocation flexibility and growth investments.

• Integration of Interworks expected to deepen presence in Southeastern Europe and expand cross-selling.