Should You Invest in Climb Global Solutions (CLMB)?

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. The Conestoga Micro-Cap Composite returned 11.7% net-of-fees in the third quarter, compared to the Russell Microcap Growth Index’s return of 19.9%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Climb Global Solutions, Inc. (NASDAQ:CLMB). Headquartered in Eatontown, New Jersey, Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added information technology distribution and solutions company. The one-month return of Climb Global Solutions, Inc. (NASDAQ:CLMB) was -6.59%, and its shares gained 24.54% of their value over the last 52 weeks. On October 21, 2025, Climb Global Solutions, Inc. (NASDAQ:CLMB) stock closed at $129.96 per share, with a market capitalization of $600.052 million.

Conestoga Capital Advisors stated the following regarding Climb Global Solutions, Inc. (NASDAQ:CLMB) in its third quarter 2025 investor letter:

"Climb Global Solutions, Inc. (NASDAQ:CLMB) is a specialty IT distributor focused on emerging & cloud-based technologies, with resources throughout North America and Western Europe. CLMB operates with a focused lineup of under 100 brands that they educate and sell to 7,000 customers. CLMB is growing revenue organically 13-15% with 80% of revenue being recurring. More than half of CLMB’s revenue is derived from security software, an area we believe should continue to see healthy growth as artificial intelligence introduces even more threat surfaces to protect."

Climb Global Solutions, Inc. (NASDAQ:CLMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 13 hedge fund portfolios held Climb Global Solutions, Inc. (NASDAQ:CLMB) at the end of the second quarter, up from 9 in the previous quarter.  In the second quarter of 2025, Climb Global Solutions, Inc. (NASDAQ:CLMB) reported net sales of $159.3 compared to $92.1 million in Q2 2024. While we acknowledge the potential of Climb Global Solutions, Inc. (NASDAQ:CLMB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Climb Global Solutions, Inc. (NASDAQ:CLMB) and shared the list of fastest growing small cap stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.