Climb Global Solutions Reports 32% Increase in Net Sales for Q1 2026

Climb Global Solutions, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net sales rising 32% to $182.4 million, compared to $138.0 million in the same period last year. Gross profit also saw a 13% increase, reaching $26.5 million, up from $23.4 million. However, net income decreased by 10% to $3.3 million, down from $3.7 million, resulting in diluted earnings per share of $0.18, a decline from $0.20 in the prior year. The increase in sales was attributed to organic growth from existing vendor partnerships, although the company faced higher selling, general, and administrative expenses, which rose 21% to $20.3 million.

The company made strategic moves during the quarter, including the acquisition of Interworks, a Greek cloud distributor, for approximately $13 million. This acquisition is expected to enhance Climb's reach in Southeastern Europe, and Interworks contributed approximately $0.6 million in revenue and $0.1 million in net income during the quarter. The acquisition was funded using cash from the company's balance sheet, and the financial results of Interworks have been included in Climb's consolidated financial statements from the acquisition date.

Operationally, Climb Global Solutions reported a gross billings increase of 14% to $542.8 million, driven by a higher percentage of hardware and software products sold, which are recorded on a gross basis. The Distribution segment experienced a 34% increase in net sales to $177.1 million, while the Solutions segment saw a 10% decrease in net sales to $5.3 million. The company also noted that customer rebates and discounts increased to $6.8 million, reflecting the competitive pricing environment.

Looking ahead, Climb Global Solutions anticipates continued growth driven by its strategic initiatives and market demand. The company has emphasized its commitment to investing in its infrastructure and vendor partnerships to support long-term growth. Despite the challenges posed by rising expenses and market competition, management remains optimistic about the company's ability to navigate these factors and achieve its financial objectives. The company expects that its cash reserves and available credit will be sufficient to meet its working capital needs for at least the next 12 months.