Key Highlights

  • Net sales for the quarter ended 30 June 2026 rose 9 per cent to $174.2 million, and gross billings rose 17 per cent to $587.3 million.
  • Operating income fell to $7.4 million from $8.0 million, and Net Income fell to $5.5 million, which the company attributed to a higher effective tax rate.
  • Cash was $56.6 million at 30 June 2026 with no Debt and no borrowings under the $50 million revolving facility.

Second-quarter results

Climb Global Solutions (NASDAQ:CLMB), a specialist technology distributor and solutions provider, last reported on 29 July 2026. Net sales for the quarter ended 30 June 2026 were $174.2 million, up 9 per cent from $159.3 million. Gross billings, a measure the company reports alongside net sales, rose 17 per cent to $587.3 million.

Gross profit increased 15 per cent to $30.2 million from $26.3 million. Operating Income was $7.4 million, down from $8.0 million, so profit growth lagged sales growth. The improvement in Gross Profit therefore did not carry through to operating income. Net income was $5.5 million, or $0.30 per diluted share, compared with $6.0 million, or $0.33, a year earlier. The company attributed the decline in net income to a higher effective tax rate.

Where growth came from

The Distribution segment drove the increase, with gross billings up 18 per cent to $562.9 million. Solutions billings rose 4 per cent to $24.4 million. Chief executive Dale Foster said the company generated double-digit organic growth with its top 20 vendors, and that Darktrace grew into a top 20 vendor within about 12 months.

The company also completed the Acquisition of interworks.cloud on 24 February 2026, which contributed to both net sales and selling, general and administrative expenses. Because the acquisition is included in the reported figures, the headline growth rates are not purely organic.

Margins and adjusted measures

Adjusted EBITDA, a non-GAAP measure, was $11.3 million, compared with $11.4 million a year earlier. Adjusted net income was $5.5 million, or $0.30 per diluted share, against $6.4 million, or $0.35. The company's effective margin, defined as adjusted EBITDA as a percentage of gross profit, fell to 37.5 per cent from 43.3 per cent.

That decline of 5.8 percentage points indicates that costs rose faster than gross profit. The release links part of the increase in expenses to the interworks.cloud acquisition. Whether the Margin recovers as the acquired Business is integrated is a question that later reports will answer.

Balance sheet

Cash was $56.6 million at 30 June 2026, up from $36.6 million at 31 December 2025, and the company had no debt and no borrowings under its $50 million revolving facility. No dividends were paid in the first half of 2026, whereas the second quarter of 2025 included a Dividend of $0.04 per share.

What to watch

Several points can be tracked in future disclosures. The first is whether net sales growth of 9 per cent and billings growth of 17 per cent persist once the interworks.cloud acquisition has been in the figures for a full year. The second is whether the effective margin moves back towards the 43.3 per cent recorded a year earlier. The third is how the tax rate evolves over time, since it explained the net income decline. The fourth is how the larger cash balance is used, given the absence of debt.