Climb Global Solutions Inc. Common Stock (CLMB)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, have durable competitive advantages, and sell at a discount to intrinsic value. Climb Global Solutions is an IT distributor and solutions provider. In fiscal 2025, the year ended 2025-12-31, revenue was $652.5 million, net income $21.3 million, and diluted EPS $4.64, up from fiscal 2024 revenue of $465.6 million, net income of $18.6 million, and EPS of $4.06. That is real growth. However, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $174.2 million, net income $5.5 million, and diluted EPS $0.30, versus fiscal Q2 2025 net income of $6.0 million and EPS of $0.33. Profit slipped, and the 3.17% quarterly net margin is thin. The balance sheet is conservative: debt-to-equity is 0.02 and free cash flow was $41.0 million, a 6.5% FCF yield. But return on capital employed is only 4.06%, and the Altman Z-score of 1.95 is in the grey zone. At the 2026-10-13 close of $33.75, FairStock calculates a P/E of 30.41, P/B of 4.96, and a Graham Number of $12.94, so the price is far above a Graham-style value. The Lynch category is FAST GROWER, based on 36.7% annual profit growth and 21.0% revenue growth over five years, but the supplied profit growth is now -7.51%. I see a decent operator with little debt, but no obvious moat and a demanding price. I would need a wider margin of safety or clearer margin expansion to get interested.

In plain English: Climb Global Solutions sells and supports technical software, cloud services, and hardware to resellers and companies. Sales and profits have grown over recent years and the company carries very little debt, but profit margins are thin and the latest quarterly profit was lower than a year earlier. At the recent price near $34, the stock looks expensive compared with the company's earnings and assets, so it appears priced for continued growth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer