Key Highlights

● Second-quarter net sales rose 9% to $174.2 million; gross billings rose 17%.

● Net income fell to $5.5 million from $6.0 million a year earlier.

● Effective margin fell to 37.5% from 43.3% as SG&A rose to $20.7 million.

● Cash reached $56.6 million, with no debt and the $50 million revolver undrawn.

Latest verified development

Climb Global Solutions, Inc. (NASDAQ:CLMB) last reported results on 29 July 2026 for the second quarter ended 30 June. Net sales rose 9% to $174.2 million and gross billings rose 17% to $587.3 million, while gross profit increased 15% to $30.2 million. Profit, however, moved the other way: net income fell to $5.5 million from $6.0 million, and diluted earnings per share were $0.30 against $0.33.

Net sales, at $174.2 million, represent only about 30% of the $587.3 million billed, and billings grew faster than net sales. The gap reflects how different sales are recognised, and gross billings give a fuller sense of the volume passing through its distribution operations.

Growth without margin

The figures show a business growing its billings faster than its earnings. Selling, general and administrative expenses rose to $20.7 million from $16.4 million, and adjusted EBITDA was $11.3 million, essentially flat on $11.4 million a year earlier. The company's effective margin, adjusted EBITDA as a percentage of gross profit, fell to 37.5% from 43.3%.

The effective margin is a company-defined indicator. The decline from 43.3% to 37.5% means roughly six percentage points less of each dollar of gross profit reached adjusted EBITDA, which is the arithmetic behind flat EBITDA despite 15% gross profit growth.

Segments and balance sheet

Distribution gross billings were $562.9 million, up 18%, and dominate the mix. The Solutions segment contributed $24.4 million, up 4%. Cash was $56.6 million at 30 June 2026, up from $36.6 million at 31 December 2025, and the company had no debt, with nothing drawn on its $50 million revolving credit facility.

The release does not announce a dividend and gives no quarterly or annual revenue or earnings guidance. It does restate a long-term goal to more than double fiscal 2025 adjusted EBITDA by 2030, citing organic growth, selective line card expansion and Europe. That is an aspiration, not a forecast the company has quantified year by year.

Balance-sheet strength gives the company room to pursue acquisitions or line card additions without borrowing, since the revolving facility is untouched, though no specific use is specified.

Operating costs against gross profit growth

The central question for the coming quarters is whether gross profit growth of 15% can translate into earnings growth once higher operating costs are absorbed. SG&A was the largest swing factor in the quarter, at 3.5% of gross billings against 3.3% a year earlier, and the effective margin fell from 43.3% to 37.5%.

New vendor line cards and European expansion are named in the 2030 goal, but the second quarter shows the cost side moving first: adjusted EBITDA of $11.3 million was essentially level with $11.4 million a year earlier even as gross profit rose 15%.