CLMB Stock Forecast & Price Target

Climb Global Solutions Inc demonstrated robust financial performance with an estimated 30% year-over-year growth in net sales on an organic basis, underscoring its strong market position in IT distribution. The company also recorded a 6% increase in gross profit in Q3/25, fueled by contributions from both new and existing vendors across North America and Europe, along with the addition of DSS. Furthermore, the company is poised for future growth through potential accretive acquisitions, enhancing its service offerings and geographic footprint in emerging technologies.

Climb Global Solutions Inc. is experiencing a concerning decline in its adjusted EBITDA margin, which decreased year-over-year from 8.3% and sequentially from 7.1% to 6.7% in Q3/25. The company's gross margin also contracted, falling from 20.3% year-over-year and sequentially from 16.5% to 15.9% during the same period, indicative of deteriorating profitability. Furthermore, the reduction of 2025 and 2026 adjusted EBITDA margin forecasts to 6.6% and 7.2%, along with lowered non-GAAP EPS projections, raises significant concerns about the company’s financial health and future performance.