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 ...

Core Insights - Climb Channel Solutions has partnered with Thales to enhance its cybersecurity offerings, now including the complete Thales Cyber Security Product suite [1][2][4] - The partnership aims to empower resellers by providing a comprehensive security solution that includes Application Security, Data Protection, and Identity and Access Management [2][4][5] - The launch of the Thales and Imperva Accelerate Partner Program is expected to facilitate growth for partners in the cybersecurity business by simplifying interactions and providing synchronized benefits [3][4] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, and Cloud solutions [6] - The company emphasizes a people-first approach to empower Value-Added Resellers (VARs) and Managed Service Providers (MSPs) to grow and scale their businesses [6]

Core Insights - Climb Channel Solutions awarded Freshworks the Strategic Partner of the Year award, highlighting the success of their partnership and commitment to growth and value creation through the channel [1][5] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various sectors including Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & Application Lifecycle [6] - Freshworks has established itself as a significant player in the customer experience and employee experience software markets, showcasing its ability to innovate and empower partners [3] Partnership Highlights - The award was presented by Carlos Rodriguez from Climb to Chase Bertrand from Freshworks, emphasizing the collaborative efforts between the two companies [2] - Freshworks has expanded its IT service management product portfolio through the acquisition of Device42, indicating its growth strategy [3] Leadership Statements - Laura Padilla from Freshworks expressed gratitude for the partnership, emphasizing the shared commitment to improving IT department efficiency with user-friendly software solutions [4] - Dale Foster, CEO of Climb Channel Solutions, praised Freshworks as an agile and committed partner, reinforcing the mutual trust and growth achieved through their collaboration [5]