Core Insights - Climb Global Solutions, Inc. reported a significant increase in net sales and net income for the second quarter of 2025, with net sales rising 73% to $159.3 million and net income increasing 74% to $6.0 million or $1.30 per share [1][9][6]. Financial Performance - Net sales for Q2 2025 reached $159.3 million, up from $92.1 million in Q2 2024, reflecting double-digit organic growth and contributions from the acquisition of Douglas Stewart Software & Services, LLC (DSS) [6][9]. - Gross billings increased 39% to $500.6 million compared to $359.8 million in the same period last year, with distribution segment gross billings up 40% to $477.0 million and solutions segment gross billings up 19% to $23.5 million [9][31]. - Gross profit rose 42% to $26.3 million from $18.6 million in Q2 2024, driven by organic growth and DSS contributions [7][9]. - Selling, general, and administrative (SG&A) expenses were $16.4 million, up from $13.0 million in the prior year, with SG&A as a percentage of gross billings decreasing to 3.3% from 3.6% [8][9]. - Adjusted EBITDA increased 64% to $11.4 million compared to $6.9 million in Q2 2024, with an effective margin rising 600 basis points to 43.3% [11][9]. Management Commentary - The CEO highlighted the company's focus on core initiatives, resulting in exceptional performance and organic growth through strengthened customer relationships and an expanded vendor lineup [3][4]. - The company plans to leverage its fully implemented ERP system for operational efficiencies and is focused on strategic acquisitions to enhance capabilities [4]. Dividend Declaration - Climb's Board of Directors declared a quarterly dividend of $0.17 per share, payable on August 15, 2025, to shareholders of record on August 11, 2025 [5]. Cash Position and Working Capital - As of June 30, 2025, cash and cash equivalents were $28.6 million, a slight decrease from $29.8 million at the end of 2024, while working capital increased by $12.2 million [12]. - The company had $0.5 million of outstanding debt with no borrowings under its $50 million revolving credit facility [12]. Company Overview - Climb Global Solutions specializes in IT distribution and solutions, operating across the U.S., Canada, and Europe, focusing on emerging technologies in various sectors including security, data management, and cloud services [16].
Climb Global Solutions Reports Second Quarter 2025 Results