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Climb Global Solutions Q1 2025 Earnings Report
Climb Global Solutions reported strong first quarter 2025 results with significant increases in net sales, net income, and adjusted EBITDA.
Key Takeaways
Climb Global Solutions, Inc. announced exceptional growth in the first quarter of 2025, with net sales increasing by 49% to $138.0 million, net income rising by 35% to $3.7 million, and adjusted EBITDA growing by 38% to $7.6 million. This performance was driven by core initiatives, the integration of Douglas Stewart Software & Services, LLC (DSS), and organic growth in both the U.S. and Europe.
Net sales increased 49% to $138.0 million.
Net income increased 35% to $3.7 million, or $0.81 per diluted share.
Adjusted EBITDA (non-GAAP) increased 38% to $7.6 million.
Gross billings increased 34% to $474.6 million, with Distribution segment gross billings up 36% and Solutions segment gross billings up 2%.
Climb Global Solutions
Climb Global Solutions
Climb Global Solutions Revenue by Segment
Revenue by Segment
Distribution Gross Billings Revenue
CapyFin.comSolutions Gross Billings Revenue
CapyFin.com Forward Guidance
Climb Global Solutions expects to continue driving organic growth and improving operating leverage, supported by the implementation of a new ERP system and active M&A strategy.
Positive Outlook
- Well-positioned to continue driving organic growth.
- Expects new ERP system implementation to drive meaningful efficiencies across global operations.
- Plans to remain active with M&A to evaluate accretive targets.
- M&A strategy aims to enhance comprehensive offerings and expand presence in North America and overseas.
- Robust balance sheet will enable continued execution on goals and objectives.
Challenges Ahead
- While still early for ERP system implementation, potential challenges could arise.
- M&A activities are subject to market conditions and successful integration.
- Competitive pressures in the IT channel industry could impact growth.
- Economic factors such as inflation and interest rate risks could affect financial performance.
- Continued acceptance of the Company's distribution channel by vendors and customers is crucial.
Revenue & Expenses
Visualization of income flow from segment revenue to net income