Key Highlights

  • Net sales rose 37% to USD 220.3 million, up from USD 161.3 million in the prior-year quarter.
  • Gross billings grew 40% to USD 706.4 million, with the Distribution segment alone up 41% to USD 680.5 million.
  • Net income increased 69% to USD 7.9 million, equal to diluted earnings of USD 0.43 per share.
  • Adjusted EBITDA climbed 35% to USD 14.7 million, and effective margin widened to 44.6% from 42.3%.

Climb Global Solutions, Inc. (NASDAQ:CLMB) reported third-quarter 2026 net sales of USD 220.3 million, up 37% from USD 161.3 million a year earlier and above a consensus estimate of USD 181.0 million. Diluted EPS was USD 0.43, matching adjusted diluted EPS of USD 0.43, and above a consensus estimate of USD 0.38. The prior-year figure was USD 0.25 on a GAAP basis and USD 0.33 as adjusted.

Net income rose 69% to USD 7.9 million. Gross profit increased 28% to USD 33.0 million, which the company tied to organic growth from new and existing vendors in North America and Europe, plus a contribution from the interworks.cloud acquisition completed earlier in the year. Share counts in the release reflect the four-for-one stock split completed on March 20, 2026.

Billings, Expenses and Profitability

Gross billings reached USD 706.4 million, compared with USD 504.6 million a year ago. Distribution gross billings of USD 680.5 million rose 41%, while Solutions gross billings of USD 25.9 million rose 14%. CEO Dale Foster said 19 of the company's top 20 vendors produced sequential growth, with newer relationships such as Fortinet and Darktrace also gaining traction.

Selling, general and administrative expenses came to USD 20.9 million versus USD 16.2 million, reflecting interworks.cloud costs, variable sales compensation tied to organic gross profit, and spending on IT infrastructure and automation. As a share of gross billings, these expenses eased to 3.0% from 3.2%. Operating income rose to USD 10.0 million from USD 6.9 million, and adjusted EBITDA of USD 14.7 million compared with USD 10.9 million.

Acquisition Activity and Management Priorities

After quarter end, the company acquired NeoVAD, which expands its presence in France through an added team, reseller network and vendor portfolio. Management described Europe as a key focus for further acquisitions that fit the company's high-touch model, alongside efforts to add emerging technologies to its vendor line card.

The company did not issue numeric guidance. Management said its balance sheet supports closing 2026 with another year of record performance, and noted continued investment in technology and automation intended to build scale and operating leverage across its global platform.

Signposts Ahead

Four data points merit attention in the next report. Gross billings of USD 706.4 million set the baseline for the Distribution segment, which accounts for most of the total. SG&A at 3.0% of gross billings is the second, given the stated automation spending. The third is the effective margin of 44.6%, up 230 basis points from a year ago. The fourth is the first reported contribution from NeoVAD, set against cash of USD 66.9 million, up from USD 36.6 million at year end, and an undrawn USD 50 million revolving credit facility.