Climb Global Solutions reported double-digit growth in gross billings and gross profit during the second quarter of 2026, even as net income declined and adjusted EBITDA remained flat.
The value-added distributor said strong organic vendor performance, cybersecurity portfolio expansion and continued investment in Europe are positioning it for further growth and additional acquisitions.
Climb reports double-digit growth in Q2
The distributor reported gross billings of $587.3 million for the quarter ended June 30, up 17% year over year. Net sales increased 9% to $174.2 million, while gross profit rose 15% to $30.2 million.
Net income declined modestly to $5.5 million, or $0.30 per diluted share, from $6 million, or $0.33 per diluted share, a year earlier, as higher taxes and investments in acquisitions, compensation and IT infrastructure weighed on earnings.
Adjusted EBITDA was essentially flat at $11.3 million. According to the company, cash and cash equivalents finished the quarter at $56.6 million with no outstanding debt, providing additional flexibility for future investments and acquisitions.
Despite the mixed earnings picture, CEO Dale Foster said the underlying business remains stronger than headline results suggest.
“The market and the investors think it was an okay quarter. We think it was a great quarter,” Foster told Channel Insider, noting that Climb delivered more than 20% organic growth despite difficult year-over-year comparisons.
Cybersecurity vendors drive organic gains
Foster said 19 of Climb’s 20 largest vendors grew during the quarter, with nearly all posting double-digit gains.
He also pointed to continued momentum among cybersecurity vendors. Darktrace, which joined Climb’s portfolio roughly a year ago, has become one of the distributor’s fastest-growing vendors. Foster said Climb expects the vendor to reach a $100 million annualized run rate during the second half of 2026 after growth ramped slightly later than originally projected.
The performance reflects a broader evolution in Climb’s vendor strategy. While the distributor has traditionally focused on emerging software companies, it has increasingly pursued larger, more established vendors where it sees opportunities to accelerate partner adoption.
Larger vendors expand Climb’s addressable market
Earlier this year, Climb expanded its security portfolio through a distribution agreement with Fortinet, giving the networking and cybersecurity vendor access to thousands of Climb partners while broadening the distributor’s enterprise security offerings.
The company has also continued adding specialized security vendors such as Halcyon to strengthen its cybersecurity lineup.
That strategy is continuing into the second half of the year.
“We’re having a lot larger conversations, a lot more conversations with larger vendors,” Foster said, adding that Climb expects to announce another major security vendor in the coming weeks and is evaluating another opportunity that could eventually become one of the company’s top 10 revenue-producing vendors.
Climb prepares further European acquisitions
Climb also continues to invest heavily in Europe following its acquisition of cloud distributor interworks.cloud earlier this year.
The acquisition added more than 600 reseller and MSP partners across Southeastern Europe while strengthening Climb’s Microsoft cloud distribution capabilities and expanding its presence in the region. Foster said the integration remains on schedule, with interworks expected to migrate fully onto Climb’s internal systems before the end of the year.
The company is already preparing for its next phase of European growth.
“We are full steam ahead on our plan this year,” Foster said. “We’re not done with acquisitions this year in Europe. We’ll have at least one more in Europe, probably two.”
Alongside acquisitions, Climb plans to hire additional sales representatives across key European markets including France and Germany while shifting toward a more territory-focused sales organization.
Distribution gains importance as routes to market shift
Those investments come as distributors play an increasingly strategic role in helping vendors scale globally.
As enterprise software purchasing continues shifting toward hyperscaler cloud marketplaces and two-tier distribution models, distributors with strong cloud capabilities and regional partner networks are becoming more valuable go-to-market partners for software vendors.
Foster believes Climb still has substantial room to capitalize on those trends.
“We think we can double. We can triple in size,” he said. “The market’s so vast.”