This article first appeared on GuruFocus .
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Gross Billings:$587.3 million, a 17% increase from $500.6 million in the prior year quarter.
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Net Sales:$174.2 million, a 9% increase from $159.3 million in the prior year period.
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Gross Profit:$30.2 million, a 15% increase from $26.3 million in the same period in 2025.
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SG&A Expenses:$20.7 million, compared to $16.4 million in the prior year period.
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Net Income:$5.5 million, or $0.30 per diluted share, compared to $6.0 million, or $0.33 per diluted share, in the prior year period.
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Adjusted Net Income:$5.5 million, or $0.30 per diluted share, compared to $6.4 million, or $0.35 per diluted share, in the year-ago period.
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Adjusted EBITDA:$11.3 million, compared to $11.4 million in the same period in 2025.
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Effective Margin:37.5%, compared to 43.3% for the same period in 2025.
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Cash and Cash Equivalents:$56.6 million as of June 30, 2026, compared to $36.6 million on December 31, 2025.
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Distribution Segment Gross Billings:Increased 8% to $562.9 million.
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Solutions Segment Gross Billings:Increased 4% to $24.4 million.
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Climb Global Solutions Inc ( NASDAQ:CLMB ) generated double-digit organic growth with 19 of its TOP20 vendors in Q2 2026.
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The company signed strategic new vendor agreements with Ivanti and CheckMK, and expanded relationships with Logic Monitor and Quantum.
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Darktrace became a TOP20 vendor within 12 months of joining the platform, and Fortinet gross billings increased materially from Q1.
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Climb Global Solutions Inc ( NASDAQ:CLMB ) is making progress on its cloud platform development, hiring an experienced architect and expecting to complete the initial blueprint soon.
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The company has a strong balance sheet with $56.6 million in cash and no debt, providing flexibility for M&A and investments.
Negative Points
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Adjusted EBITDA in Q2 2026 was $11.3 million, slightly down from $11.4 million in the prior year period.
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Effective margin (adjusted EBITDA as a percentage of gross profit) decreased to 37.5% from 43.3% year-over-year.
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SG&A expenses increased 26% year-over-year due to investments in IT infrastructure, legal fees, and variable compensation.
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Net income declined to $5.5 million from $6.0 million in the prior year quarter, impacted by a higher effective tax rate.
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The company faced a tough year-over-year comparison due to large one-time VAST data deals in Q2 2025.
Q & A Highlights
Q: How tough of a comparable was the Q2 2025 quarter due to large one-time deals with VAST Data? A: CEO Dale Foster acknowledged it was a tough comp due to a $30 million deal with VAST Data and another deal pulled into Q2 2025. However, strong performance from 19 of the top 20 vendors, including a rebound from Sophos and growth from Darktrace, offset the difficult comparison.
Q: Can you provide an update on the Fortinet relationship, specifically regarding the restriction from certain opportunities and the growth trajectory? A: CEO Dale Foster noted that the restriction on the top 50 customers ended on May 4, 2026. Fortinet gross billings grew 10x from Q1 to Q2. The company is focusing on net new business and cross-selling with common technology partners. Foster expects Fortinet to become a top-five vendor within the next year.
Q: What additional details can you provide on the development of the cloud marketplace platform? A: CEO Dale Foster stated that the company hired an experienced platform architect who has set the initial structure and technical blueprint. The goal is to create a hybrid experience, combining an efficient online platform with the company's strong in-person relationship model. Adobe will be one of the first vendors prioritized for integration, with some capabilities expected to be ready in Q4 2026.
Q: How much of the SG&A increase was non-recurring, and how should we think about the effective margin for the rest of the year? A: CFO Matthew Sullivan stated that about $500,000 of SG&A in Q2 was non-recurring, related to legal, professional, and IT infrastructure investments. He noted that the effective margin trajectory from Q1 to Q2 was consistent with historical patterns. CEO Dale Foster added that the company is making opportunistic investments for long-term efficiency, which may cause quarterly fluctuations.
Q: Are geopolitical factors impacting sentiment in Europe, and are you hitting your cross-selling objectives there? A: CEO Dale Foster said that geopolitical factors have not had a significant impact on the business, as Climb is not in the hardware business and remains a small player in a large market. Regarding cross-selling, the teams are getting to know each other, and the company is working on loading vendors onto the platform for the European region, leveraging the Microsoft agreement across Europe.
Q: Does the pipeline for VAST Data remain substantial despite the lumpy nature of the business? A: CEO Dale Foster confirmed that the pipeline remains strong, but the business will continue to be lumpy due to the large size of the deals and the fact that VAST Data has fewer than 100 customers worldwide. The company is playing a waiting game as data centers are built.
Q: Can you provide more detail on the new Ivanti relationship and its potential size for Climb? A: CEO Dale Foster described Ivanti as a $950+ million vendor that fits the strategy of signing larger vendors to move the needle. The company is just launching the relationship and expects it to become a top-20 vendor. Foster highlighted that Climb's field sales approach is a key differentiator that attracted Ivanti.
Q: What is the target for SG&A as a percentage of gross billings, and can you get it back down to 3%? A: CEO Dale Foster stated that 3% is the goal, but the company is making investments in technology for long-term efficiency. He noted that Q3 and Q4 are typically stronger, which should help improve the ratio. CFO Matthew Sullivan added that when adjusting for the large VAST Data deal in Q2 2025 and the Interworks acquisition, the company still grew adjusted EBITDA at a strong double-digit rate.
Q: Is there a way to increase gross margin on billings from the 5% to 6% range to offset the higher SG&A? A: CEO Dale Foster explained that the North American market is competitive and does not easily allow for margin expansion. However, the company's M&A strategy in Europe, where margins are 10% to 15% due to less competition, is a key part of the plan to improve overall margins. The Solutions segment also contributes higher margins of 11% to 12%.
Q: Can you comment on the M&A environment and your ability to do larger deals? A: CEO Dale Foster confirmed that the company is accelerating its M&A efforts and has been working on targets for the last two to three years. He noted that the board is aligned with the strategy and is open to taking on debt to finance larger acquisitions. The company has two very large targets that it could pursue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
