PART I FINANCIAL INFORMATION [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents the unaudited condensed consolidated financial statements for Q1 2025, including key balance sheet and income statement data [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $370.1 million while stockholders' equity rose to $95.6 million at the end of Q1 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $32,461 | $29,778 | | Accounts receivable, net | $240,230 | $341,597 | | Total current assets | $281,163 | $380,696 | | Goodwill | $35,675 | $34,924 | | Total assets | $370,053 | $469,179 | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $266,452 | $370,397 | | Total liabilities | $274,499 | $378,591 | | Total stockholders' equity | $95,554 | $90,588 | [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net sales for Q1 2025 grew 49.4% to $138.0 million, with net income increasing 34.9% to $3.7 million year-over-year Statement of Earnings Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $138,044 | $92,422 | 49.4% | | Gross profit | $23,396 | $17,020 | 37.5% | | Income from operations | $4,778 | $3,503 | 36.4% | | Net income | $3,684 | $2,731 | 34.9% | | Diluted EPS | $0.81 | $0.60 | 35.0% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 was $5.2 million, driven by net income and positive foreign currency translation adjustments Comprehensive Income (in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $3,684 | $2,731 | | Foreign currency translation adjustments | $1,553 | $(718) | | **Comprehensive income** | **$5,237** | **$2,013** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to $95.6 million in Q1 2025, driven by net income and positive translation adjustments - Key changes in stockholders' equity for Q1 2025 include: **net income of $3.7M**, dividends of $0.8M, share-based compensation of $1.4M, and treasury stock repurchases of $0.9M[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $8.5 million, and the company's cash balance increased by $2.7 million to $32.5 million in Q1 2025 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $8,457 | $14,047 | | Net cash used in investing activities | $(729) | $(1,180) | | Net cash used in financing activities | $(5,346) | $(5,550) | | **Net increase in cash** | **$2,683** | **$7,277** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides details on accounting policies, segment performance, and customer concentrations, noting two customers make up 39% of sales - The company's revenue is primarily from the sale of third-party technology products and services, recognized when control is transferred[36](index=36&type=chunk)[37](index=37&type=chunk) - In Q1 2025, **two major customers accounted for 26% and 13% of net sales**, respectively, and one major vendor accounted for 13% of total purchases[67](index=67&type=chunk)[66](index=66&type=chunk) Segment Net Sales (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Distribution | $132,162 | $86,822 | | Solutions | $5,882 | $5,600 | | **Total** | **$138,044** | **$92,422** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting significant sales and profit growth driven by organic expansion and acquisitions - **Net sales increased 49% to $138.0 million** and **net income increased 35% to $3.7 million** for Q1 2025 compared to Q1 2024[107](index=107&type=chunk) - **Adjusted EBITDA**, a non-GAAP measure, **increased to $7.6 million** in Q1 2025 from $5.5 million in Q1 2024, with a stable effective margin of 32.7%[133](index=133&type=chunk)[136](index=136&type=chunk) - The acquisition of Douglas Stewart Software & Services, LLC ("DSS") on July 31, 2024, contributed to growth in the Distribution segment[138](index=138&type=chunk) [Overview](index=24&type=section&id=MD%26A_Overview) The company operates as a value-added IT distributor through its 'Distribution' and 'Solutions' segments - The company has two reportable operating segments: 'Distribution' (selling to resellers like VARs) and 'Solutions' (selling directly to end-users)[97](index=97&type=chunk) - Product offerings include virtualization/cloud computing, security, networking, storage, infrastructure management, and application lifecycle management tools[97](index=97&type=chunk) [Results of Operations](index=28&type=section&id=MD%26A_Results_of_Operations) Q1 2025 saw a 49% rise in net sales and a 37% increase in gross profit, driven by organic growth and the DSS acquisition - **Net sales increased 49%** and **gross billings increased 34%** in Q1 2025, driven by organic growth and the DSS acquisition[139](index=139&type=chunk) - **Distribution segment net sales grew 52%** to $132.2 million, while **Solutions segment sales grew 5%** to $5.9 million[141](index=141&type=chunk)[142](index=142&type=chunk) - **SG&A expenses increased 34%** to $16.8 million, primarily due to the DSS acquisition and higher personnel costs to support growth[149](index=149&type=chunk) - The **effective tax rate for Q1 2025 was 13.3%**, down from 24.6% in Q1 2024, mainly due to a discrete tax benefit related to share-based compensation[152](index=152&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company holds $32.5 million in cash and has an undrawn $50.0 million credit facility, ensuring sufficient liquidity - **Cash and cash equivalents increased by $2.7 million** during Q1 2025 to a total of $32.5 million[153](index=153&type=chunk) - Financing activities used $5.3 million, including **$3.6 million for contingent consideration payments**, $0.9 million for treasury stock purchases, and $0.8 million for dividends[155](index=155&type=chunk) - The company has access to a **$50.0 million revolving credit facility**, with no amounts outstanding as of March 31, 2025[156](index=156&type=chunk) [Critical Accounting Policies and Estimates](index=25&type=section&id=MD%26A_Critical_Accounting_Policies) Key accounting policies involve significant management judgment, particularly in revenue recognition and business combinations - Key critical accounting policies involve significant management judgment and include: **Revenue Recognition, Allowances for Expected Credit Losses, Business Combinations, Goodwill, Intangible Assets, and Income Taxes**[111](index=111&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - For business combinations, the company uses estimates for valuing acquired assets and liabilities, particularly intangible assets and contingent consideration[116](index=116&type=chunk) - Goodwill is tested for impairment annually or when trigger events occur, using either a qualitative assessment or a quantitative test[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure relates to foreign currency exchange rate fluctuations from its international operations - The principal market risk is from changes in foreign currency exchange rates, specifically the **Canadian Dollar, Euro, and British Pound** against the U.S. Dollar[163](index=163&type=chunk)[160](index=160&type=chunk) - The company is exposed to both **foreign currency transaction risk and currency translation risk** due to its international operations[164](index=164&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, excluding the recently acquired and integrating DSS - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the quarter[166](index=166&type=chunk) - The assessment of internal controls **excluded the recently acquired DSS**, which is currently being integrated into the company's control structure[167](index=167&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material litigation outside of the ordinary course of business - Other than routine litigation arising out of the ordinary course of business, the Company is not presently subject to any material litigation[169](index=169&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been made to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have occurred to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares under its public plan in Q1 2025, though some shares were surrendered for tax purposes Issuer Purchase of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Number of Shares That May Yet Be Purchased Under the Plans | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $ — | 545,786 | | Feb 2025 | — | $ — | 545,786 | | Mar 2025 | — | $ — | 545,786 | | **Total** | **—** | **$ —** | **545,786** | - The share repurchase program does not have an expiration date[175](index=175&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - During Q1 2025, none of the company's directors or officers adopted or terminated a Rule 10b5-1 trading plan[174](index=174&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-Q, including officer certifications and financial statements in Inline XBRL - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and a Separation Agreement with a former executive (10.1)[176](index=176&type=chunk)

Climb Global Solutions (CLMB) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Sean Mansouri - Founder & CEODale Foster - CEOMatthew Sullivan - CFOVincent Colicchio - Managing Director Operator Good morning, everyone, and thank you for participating in today's conference call to discuss Klim Global Solutions' financial results for the first quarter ended 03/31/2025. Joining us today are Climb's CEO, Mr. Dale Foster the company's CFO, Mr. Matthew Sullivan and the company's Investor Relati ...

Financial Data and Key Metrics Changes - Gross billings in Q1 2025 increased by 34% to $474.6 million compared to $355.3 million in the prior year quarter [12] - Net sales rose by 49% to $138 million from $92.4 million, driven by organic growth and the acquisition of DSS [12] - Net income increased by 35% to $3.7 million or $0.81 per diluted share, compared to $2.7 million or $0.60 per diluted share in Q1 2024 [14] - Adjusted EBITDA grew by 38% to $7.6 million, with an effective margin increase of 20 basis points to 32.7% [15] Business Line Data and Key Metrics Changes - Distribution segment gross billings increased by 36% to $453.6 million, while Solutions segment gross billings rose by 2% to $21 million [12] - SG&A expenses increased to $16.8 million from $12.5 million, with SG&A as a percentage of gross billings remaining flat at 3.5% [13] Market Data and Key Metrics Changes - The company reported solid organic growth in both the U.S. and Europe, indicating a strong market presence [5] - The initial interaction with Darktrace has resulted in a growing pipeline exceeding $30 million in potential gross billings [7] Company Strategy and Development Direction - The company is focused on sustaining momentum and driving organic growth while remaining active in M&A to enhance service offerings [11] - The implementation of a new ERP system is expected to improve efficiency and data insights across global operations [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment has not significantly impacted business, with over 80% of operations in the U.S. [23] - The company is optimistic about future growth, particularly with new vendor relationships and ongoing enhancements to operational systems [30] Other Important Information - The Board of Directors declared a quarterly dividend of $0.17 per share, payable on May 16, 2025 [17] - The company recognized Freshworks as its strategic partner of the year during its annual client partner conference [9] Q&A Session Summary Question: Were there any large deals in the quarter or was it broad-based demand? - Management indicated that the growth was broad-based with no standout deals in Q1, although they expect stronger performance in the education sector as the fiscal year progresses [21][22] Question: Has there been any change in sentiment given the uncertain economic environment? - Management reported no significant impact from economic uncertainties, as the majority of their business is U.S.-based [23] Question: Are synergies in Europe starting to materialize? - Management confirmed that synergies are beginning to show, particularly with the integration of DSS into their ERP system [26][27] Question: Did organic growth trends continue into April? - Management refrained from discussing specific April results but expressed optimism about ongoing relationships and growth potential [28][30]

Core Insights - Climb Channel Solutions has announced a new partnership with Accelsius to enhance its offerings in high-performance computing environments [1][2] - The partnership aims to provide innovative liquid cooling solutions to meet the increasing demands of AI, cloud, and data-intensive workloads [2][3] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud technologies [5] - Accelsius specializes in next-generation liquid cooling solutions, particularly its proprietary NeuCool™ system, which is designed for high-performance computing [2][6] Partnership Details - The collaboration will leverage Accelsius' two-phase, direct-to-chip cooling technology, which is noted for its energy efficiency and hardware protection [3][4] - Climb's expertise in emerging technologies and strong channel relationships positions it well to scale the deployment of Accelsius' solutions [3][4] Market Positioning - The partnership is expected to empower resellers, integrators, and service providers to deliver advanced cooling solutions more effectively, addressing the growing demand for sustainable infrastructure [3][4] - Climb's commitment to expanding its portfolio with cutting-edge technologies is reinforced through this partnership, enhancing its position in the high-performance infrastructure market [4]

Core Viewpoint - Climb Global Solutions (CLMB) reported quarterly earnings of $0.86 per share, missing the Zacks Consensus Estimate of $0.89 per share, but showing an increase from $0.60 per share a year ago, indicating a mixed performance in earnings despite revenue growth [1][2] Financial Performance - The company posted revenues of $138.04 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 42.52% and up from $92.42 million year-over-year [2] - Climb Global has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Stock Performance - Climb Global shares have declined approximately 15.3% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $97.05 million, and for the current fiscal year, it is $5.40 on revenues of $488.88 million [7] - The estimate revisions trend for Climb Global is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which Climb Global belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Performance - Net sales increased 49% to $138.0 million compared to $92.4 million for the same period in 2024[6] - Net income rose 35% to $3.7 million or $0.81 per diluted share, up from $2.7 million or $0.60 per diluted share in the prior year[9] - Adjusted EBITDA increased 38% to $7.6 million, driven by organic growth and the acquisition of Douglas Stewart Software & Services (DSS)[10] - Gross profit increased 37% to $23.4 million, reflecting growth from new and existing vendors[7] - Adjusted net income for Q1 2025 was $3,915,000, a 38.7% increase compared to $2,823,000 in Q1 2024[27] - Adjusted net income per common share (diluted) for Q1 2025 was $0.86, up from $0.62 in Q1 2024, reflecting a 38.7% increase[27] Revenue and Billings - Gross billings increased 34% to $474.6 million, with distribution segment gross billings up 36% to $453.6 million[4] - Total gross billings for Q1 2025 were $474,596,000, representing a 33.5% increase from $355,269,000 in Q1 2024[27] - Distribution gross billings for Q1 2025 were $453,575,000, an increase of 35.5% from $334,637,000 in Q1 2024[27] - Solutions gross billings for Q1 2025 were $21,021,000, slightly up from $20,632,000 in Q1 2024[27] Expenses and Costs - SG&A expenses increased to $16.8 million, with DSS contributing $1.1 million to the increase[8] - Interest expense decreased to $69,000 in Q1 2025 from $101,000 in Q1 2024, indicating improved cost management[25] - The company reported a provision for income taxes of $564,000 in Q1 2025, down from $890,000 in Q1 2024[25] Cash and Dividends - Cash and cash equivalents were $32.5 million as of March 31, 2025, compared to $29.8 million at the end of 2024[11] - The company declared a quarterly dividend of $0.17 per share, payable on May 16, 2025[5] Strategic Initiatives - The company plans to implement a new ERP system to drive efficiencies and remains active in evaluating M&A opportunities[3] Other Financial Metrics - Effective margin for adjusted EBITDA increased by 20 basis points to 32.7% compared to 32.5% for the same period in 2024[10] - The change in fair value of acquisition contingent consideration was $136,000 in Q1 2025, compared to no such costs in Q1 2024[27]

Core Insights - Climb Global Solutions, Inc. reported a significant increase in net sales and net income for the first quarter of 2025, with net sales rising 49% to $138.0 million and net income increasing 35% to $3.7 million or $0.81 per share [1][5][8] Financial Performance - Net sales increased 49% to $138.0 million compared to $92.4 million for the same period in 2024, driven by organic growth and the acquisition of Douglas Stewart Software & Services, LLC [5][9] - Gross billings rose 34% to $474.6 million, with distribution segment gross billings increasing 36% to $453.6 million and solutions segment gross billings increasing 2% to $21.0 million [9][10] - Gross profit increased 37% to $23.4 million, reflecting strong performance from both new and existing vendors [6][9] - Selling, general, and administrative expenses were $16.8 million, up from $12.5 million in the previous year, with DSS contributing $1.1 million to the increase [7][9] - Adjusted EBITDA increased 38% to $7.6 million, with an effective margin of 32.7% [10][9] Management Commentary - CEO Dale Foster highlighted the continuation of momentum from a record 2024, emphasizing organic growth in the U.S. and Europe and the successful integration of DSS [3] - The company plans to leverage a new ERP system for operational efficiencies and remains open to M&A opportunities to enhance offerings [3] Dividend Declaration - Climb's Board of Directors declared a quarterly dividend of $0.17 per share, payable on May 16, 2025, to shareholders of record on May 12, 2025 [4] Cash Position - As of March 31, 2025, cash and cash equivalents were $32.5 million, an increase from $29.8 million at the end of 2024, with working capital rising by $4.4 million [11]

Core Viewpoint - Climb Global Solutions, Inc. has elected Paul Giovacchini to its Board of Directors, expanding the Board to seven members, with six being independent under Nasdaq standards [1][2]. Group 1: Board Composition and Leadership - The election of Paul Giovacchini adds significant experience to the Board, with over 30 years in private equity, corporate governance, and board leadership [2]. - Giovacchini's previous roles include Lead Independent Director at TPI Composites, where he played a key role in transforming the company into a global public enterprise [2]. - The Chairman of the Board, John McCarthy, emphasized that Giovacchini's executive leadership and financial background will be crucial for Climb's operational foundation and growth initiatives [3]. Group 2: Company Overview - Climb Global Solutions, Inc. specializes in value-added global IT distribution and solutions, focusing on emerging and innovative technologies [4]. - The company operates across the US, Canada, and Europe through various business units, including Climb Channel Solutions, Grey Matter, and Climb Global Services [4]. - Climb provides IT distribution and solutions in sectors such as Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM [4].

EATONTOWN, N.J., April 17, 2025 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) ("Climb" or the "Company"), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, will host a conference call on Thursday, May 1, 2025 at 8:30 a.m. Eastern time to discuss its financial results for the first quarter ended March 31, 2025. The Company's results will be reported in a press release prior to the call. Climb's management will host th ...

-Fresh from a $50M round of investment, Unframe is now eyeing North America and EMEA growth- -Partnership with Climb will enable resellers and enterprises to access Unframe's platform and deliver cutting-edge AI solutions at scale- EATONTOWN, N.J., April 15, 2025 (GLOBE NEWSWIRE) -- Climb Channel Solutions NA, an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ:CLMB), today announced the signing of a new global distribution agreement with Unf ...