Climb Global Solutions reported gross billings jumped 17% year over year during the second quarter of 2026, reaching $587.3 million for the three months ending June 30. The value-added distributor's results showed double-digit expansion in its top-line metrics even as net income slipped, driven by strong vendor performance and cybersecurity portfolio growth that the company says positions it for further European expansion.
The distributor's net sales climbed 9% to $174.2 million during the quarter, while gross profit increased 15% to $30.2 million, according to the company. Net income dropped modestly to $5.5 million, or $0.30 per diluted share, compared to $6 million, or $0.33 per diluted share, in the same period a year earlier. Higher taxes and spending on acquisitions, compensation and IT infrastructure pressured earnings, causing adjusted EBITDA to remain essentially unchanged at $11.3 million. The company finished the quarter with $56.6 million in cash and cash equivalents and no outstanding debt.
CEO Dale Foster told Channel Insider that 19 of Climb's 20 largest vendors expanded during the quarter, with nearly all achieving double-digit gains. Foster characterized the quarter as "great" despite the mixed earnings picture, noting the company delivered more than 20% organic growth against difficult year-over-year comparisons. Darktrace, which joined Climb's portfolio roughly a year ago, has become one of the distributor's fastest-growing vendors and is expected to reach a $100 million annualized run rate during the second half of 2026. The company expanded its security offerings earlier this year through a distribution agreement with Fortinet, providing the networking and cybersecurity vendor access to thousands of Climb partners while broadening the distributor's enterprise security lineup.
The strong vendor performance reflects Climb's strategic shift toward larger, more established vendors alongside its traditional focus on emerging software companies, particularly in cybersecurity. Foster said Climb is having "a lot larger conversations" with major vendors and expects to announce another significant security vendor in the coming weeks, along with evaluating an opportunity that could eventually rank among the company's top 10 revenue producers. This evolution comes as distributors play an increasingly strategic role helping vendors scale globally, particularly as enterprise software purchasing shifts toward hyperscaler cloud marketplaces and two-tier distribution models that make distributors with strong cloud capabilities and regional partner networks more valuable go-to-market partners.
Climb continues investing heavily in Europe following its acquisition of cloud distributor interworks.cloud earlier this year, which added more than 600 reseller and MSP partners across Southeastern Europe. Foster said the integration remains on schedule, with interworks expected to fully migrate onto Climb's internal systems before year-end. The company is "full steam ahead" on its acquisition strategy and plans at least one more European acquisition this year, probably two, alongside hiring additional sales representatives across key markets including France and Germany. Foster believes the company still has substantial room to grow, saying "we can double, we can triple in size" given the vast market opportunity.