CLMB Stock Forecast & Price Target

Climb Global Solutions Inc. demonstrated a robust financial performance, with net sales increasing by approximately 30% year-over-year on an organic basis, reflecting significant growth from new and existing vendors across North America and Europe. The company also reported a 35% increase in total net sales year-over-year and an 8% rise in adjusted gross billings (AGB), indicating sustained momentum and operational efficiency. Despite a slight decline in Solutions segment net sales, the Distribution segment, which comprises 96% of Q3/25 net sales, saw a notable increase of 38% year-over-year, positioning Climb Global Solutions favorably for continued expansion and potential strategic acquisitions.

Climb Global Solutions is experiencing a significant decline in profitability, evidenced by a decreasing adjusted EBITDA margin, which fell from 8.3% year-over-year to 6.7% in Q3/25. Additionally, the company's gross margin has also suffered, dropping from 20.3% year-over-year to 15.9% in the same quarter, indicating challenges in maintaining cost efficiency. The organic revenue growth was adversely affected by the postponement of a substantial contract, leading to downward revisions of the company’s 2025 and 2026 adjusted EBITDA margin and non-GAAP EPS forecasts.