Connecting People with Technology Climb Global Solutions, Inc. Investor Presentation May 2025 1 Disclaimer This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Climb Global Solutions, Inc. ("Climb") securities will only be made in accordance with the Securities Act of 1933, as amended, and applicable Securities ...

Core Insights - Climb Channel Solutions has entered into a North American distribution agreement with Bugcrowd, enhancing its cybersecurity offerings and expanding its reach to a broader base of resellers [1][3][5]. Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud solutions. The company aims to transform distribution by providing both emerging and established IT technologies [7]. Bugcrowd Overview - Bugcrowd is a crowdsourced cybersecurity platform that identifies and addresses vulnerabilities in digital systems through a global network of security researchers and advanced tools [2][8]. Strategic Collaboration - The partnership allows Climb to offer Bugcrowd's platform-driven security solutions to over 7,000 resellers, addressing the urgent demand for proactive vulnerability detection and management [5][6]. - Bugcrowd's offerings include vulnerability detection, penetration testing, and Red Team as a Service (RTaaS), which are critical for businesses to enhance their security resilience [5][6]. Market Demand - The collaboration reflects the growing complexity of cyber threats and the increasing need for modern, scalable security solutions among businesses [4][6].

Industry Overview - The technology services industry is mature with strong demand for services, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, supporting stable dividends for most players [1] - The industry thrived in 2024 and continued its momentum into the first quarter of 2025 [1] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with companies rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [4] Investment Outlook - The Zacks-defined Technology Services industry ranks within the top 26% of Zacks Ranked Industries, indicating an expectation to outperform the market over the next three to six months [2] - Five mid and small-sized technology services stocks with strong short-term upside potential are recommended: Byrna Technologies Inc. (BYRN), Climb Global Solutions Inc. (CLMB), Adeia Inc. (ADEA), Priority Technology Holdings Inc. (PRTH), and Ivanhoe Electric Inc. (IE) [2][3] Company Highlights Byrna Technologies Inc. (BYRN) - Engaged in developing and selling less-lethal personal security solutions across multiple regions [6] - Average short-term price target indicates a potential increase of 48.6% from the last closing price of $25.53, with a target range of $33-$38 [8] - Expected revenue and earnings growth rates for the current year are 30.2% and 12.9%, respectively [9] Climb Global Solutions Inc. (CLMB) - Operates as a value-added IT distribution and solutions company [10] - Average short-term price target suggests a potential increase of 26.2% from the last closing price of $110.28, with a target range of $136 [13] - Expected revenue and earnings growth rates for the current year are 5% and 2.7%, respectively [14] Adeia Inc. (ADEA) - Operates as a media and semiconductor intellectual property licensing company [16] - Average short-term price target indicates a potential increase of 25.2% from the last closing price of $13.75, with a target range of $17-$18 [18] - Expected revenue and earnings growth rates for the current year are 9.2% and 7.1%, respectively [18] Priority Technology Holdings Inc. (PRTH) - Functions as a payment technology company with multiple segments [20] - Average short-term price target suggests a potential increase of 71.6% from the last closing price of $7.46, with a target range of $10-$16 [24] - Expected revenue and earnings growth rates for the current year are 11.4% and over 100%, respectively [25] Ivanhoe Electric Inc. (IE) - Focuses on minerals exploration and development, particularly for electrification [27] - Average short-term price target indicates a potential increase of 105.9% from the last closing price of $6.85, with a target range of $10-$20 [28] - Expected revenue and earnings growth rates for the current year are 2.6% and 51.4%, respectively [28]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - Companies like Greenland Technologies Holding Corporation (GTEC), Great Lakes Dredge & Dock Corporation (GLDD), Orion Group Holdings, Inc. (ORN), and Climb Global Solutions, Inc. (CLMB) demonstrate strong net profit margins, making them attractive to investors [1] Summary by Category Net Profit Margin - Net profit margin is calculated as net profit divided by sales, multiplied by 100, serving as a key indicator of a company's operational strength and cost control [2] - A higher net profit margin not only attracts investors but also skilled employees, enhancing overall business value and providing a competitive edge [3] Advantages and Disadvantages - A strong net profit margin clarifies a company's business model regarding pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [4] - However, net profit margin varies significantly across industries, and its relevance diminishes for technology companies compared to traditional industries [4][5] Screening Parameters - Effective investment strategies prioritize a net profit margin of at least 0%, indicating solid profitability, and positive earnings per share (EPS) growth [7] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform peers, especially when combined with a favorable VGM Score [8] Company Profiles - **Greenland Technologies Holding Corporation (GTEC)**: Develops drivetrain systems, currently holds a Zacks Rank of 1, with a VGM Score of A. The 2025 earnings estimate was revised upward to $0.48 per share, with an average surprise of 540.6% over the last four quarters [9] - **Great Lakes Dredge & Dock Corporation (GLDD)**: Largest U.S. dredging service provider, also holds a Zacks Rank of 1 and a VGM Score of A. The 2025 earnings estimate increased by $0.24 to $0.93 per share, with an average surprise of 93.3% [10][11] - **Orion Group Holdings, Inc. (ORN)**: A construction company with a Zacks Rank of 1 and a VGM Score of B. The 2025 earnings estimate rose by $0.09 to $0.16 per share, with an average surprise of -104.4% [12] - **Climb Global Solutions, Inc. (CLMB)**: An IT distribution company with a Zacks Rank of 1 and a VGM Score of B. The 2025 earnings estimate remains at $5.40 per share, with an average surprise of 63.4% [13][14]

Core Insights - Climb Channel Solutions has been recognized for its leadership in the IT channel, with nine women named to the 2025 Women of the Channel list and Kim Stevens, the Chief Marketing Officer, included in the Power 100 subset [1][2][5] Company Recognition - The CRN Women of the Channel list honors women from various organizations who positively impact the IT ecosystem, showcasing their commitment to channel excellence [2][3] - Climb Channel Solutions celebrates the achievements of its nine honorees, including six repeat awardees, highlighting their influence on the company's growth and culture of excellence [5][6] Leadership Statements - Jennifer Follett, VP at CRN, emphasized the exceptional dedication of the honorees in driving transformation and success within the IT channel [3] - Kim Stevens expressed gratitude for being part of the Power 100 and acknowledged the supportive culture at Climb that empowers women to excel [7] Honorees List - The following women from Climb Channel Solutions were recognized: - Kim Stevens, CMO - Danielle Franco, VP of Operations - Erin King, Director, Premier Accounts - Katie Kunker, Regional Sales Director, Southeast - Jessica Lindof, Regional Sales Director, Northeast - Jennifer Mish, Director of Corporate Marketing - Michelle Boers, Director of National Accounts - Sarah Peters, Director of National Alliances - Nicole Shanley, Sr. Director of Order Services - Sandy DeVico, Director of National Accounts [8]

EATONTOWN, N.J., May 13, 2025 (GLOBE NEWSWIRE) -- Climb Channel Solutions (Climb), an international specialty technology distributor and wholly owned subsidiary of Climb Global Solutions, Inc. (NASDAQ: CLMB) is pleased to announce the promotion of Carlos Rodrigues to President of North America. Carlos has been a key leader within Climb since 2020, demonstrating exceptional leadership and strategic vision across North America. Throughout his tenure, he has played a critical role in driving company-wide growt ...

Core Insights - Climb Channel Solutions has partnered with Smartsheet to distribute its AI-enhanced enterprise work management platform in North America, expanding access for resellers [1][2] - This collaboration aims to empower resellers to offer Smartsheet's solutions, which focus on driving efficiency, collaboration, and growth for businesses [2][4] - Smartsheet has been recognized as a Leader in the 2024 Gartner Magic Quadrant for Collaborative Work Management, highlighting its strong market position and execution capabilities [3] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Software & Application Lifecycle [6] - The company emphasizes transforming distribution by providing innovative IT technologies, flexible financing, and exceptional service to partners [6] Partnership Details - The partnership allows Climb's resellers to access the full Smartsheet portfolio, enhancing their ability to meet diverse business needs such as project management and product development [5] - Climb's expertise in delivering innovative software is expected to strengthen the partnership and support resellers in scaling their businesses [4][5]

Group 1 - Climb Global Solutions (CLMB) has a Zacks Rank of 1 (Strong Buy), while Amadeus IT Group SA Unsponsored ADR (AMADY) has a Zacks Rank of 2 (Buy) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, indicating that CLMB's earnings outlook is improving more significantly than AMADY's [3] - Value investors utilize various traditional metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - CLMB has a forward P/E ratio of 18.75, while AMADY has a forward P/E of 23.38, suggesting that CLMB may be undervalued compared to AMADY [5] - The PEG ratio for CLMB is 1.56, indicating a more favorable expected earnings growth rate compared to AMADY's PEG ratio of 3.45 [5] - CLMB's P/B ratio is 4.86, compared to AMADY's P/B of 6.57, further supporting CLMB's superior valuation metrics [6] Group 3 - CLMB has a Value grade of B, while AMADY has a Value grade of C, indicating that CLMB is viewed as the better value option based on its solid earnings outlook and valuation figures [6]

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 ...