Core Insights - Climb Channel Solutions has formed a strategic partnership with Scality to enhance the distribution of scalable and secure storage solutions across North America, particularly for AI data needs [1][4] - The collaboration will enable Climb to distribute Scality's enterprise-grade storage and backup solutions, including ARTESCA and RING, which are designed to support efficient AI data pipelines and provide cyber-resilient data protection [2][3] Company Overview - Climb Channel Solutions is a global specialty technology distributor focusing on various IT sectors, including Security, Data Management, and Cloud solutions, and aims to transform distribution through innovative technologies and exceptional service [6] - Scality specializes in addressing major data storage challenges such as security, performance, and cost, offering solutions that provide strong immutability and end-to-end cyber resilience to protect against ransomware [7] Partnership Benefits - The partnership is expected to enhance Climb's data storage offerings by integrating Scality's industry-leading solutions, which are tailored for data-intensive AI workloads and modern infrastructures [3] - Scality's products are now available to Climb's extensive network of resellers, VARs, and managed service providers, facilitating broader access to advanced storage solutions [4]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to successful investments if supported by strong fundamentals and positive earnings revisions [1][2]. Group 1: Stock Performance - Climb Global Solutions (CLMB) has shown a significant price increase of 53.3% over the past 12 weeks, indicating strong investor interest [4]. - In the last four weeks, CLMB's price has increased by 34.4%, suggesting that the upward trend is still intact [5]. - CLMB is currently trading at 91.7% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - CLMB holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with strong fundamentals that can maintain their upward momentum [3]. - The article suggests that investors should consider other stocks that pass through this screening process for potential investment opportunities [8].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to inherent risks and volatility [1]. Group 1: Company Overview - Climb Global Solutions (CLMB) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2]. - The company has achieved a historical EPS growth rate of 23.3%, with projected EPS growth of 52.2% for the current year, significantly surpassing the industry average of 27.2% [5]. Group 2: Financial Performance - Climb Global's year-over-year cash flow growth stands at 10.6%, which is notably higher than the industry average of -21.9%, indicating strong cash flow management [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 27.3%, compared to the industry average of 10.9%, showcasing its robust financial health [7]. Group 3: Earnings Estimates - The Zacks Consensus Estimate for Climb Global's current-year earnings has increased by 26.2% over the past month, reflecting positive earnings estimate revisions [9]. - Climb Global has earned a Growth Score of A and holds a Zacks Rank 1 (Strong Buy) due to favorable earnings estimate trends, positioning it as a potential outperformer for growth investors [10][11].

Core Viewpoint - Investors should prioritize companies with strong cash flow generation over mere profit figures, as cash flow is crucial for a company's survival and growth [1][2][3] Group 1: Importance of Cash Flow - Cash is essential for a company's existence, providing flexibility for decision-making, investments, and overall financial health [2] - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders [4] - A negative cash flow reflects declining liquidity, reducing a company's operational flexibility [4] Group 2: Cash Flow Analysis in Current Environment - In the context of global economic uncertainties and market disruptions, assessing a company's cash-generating efficiency is increasingly relevant [3] - Net cash flow is a key metric to understand how much money a company is actually generating [3] Group 3: Criteria for Stock Selection - Stocks with increasing cash flow over time were screened, focusing on those whose latest cash flow is at least equal to the 5-year average [6] - Additional criteria include a Zacks Rank of 1 (Strong Buy), a current price of at least $5, and a VGM Score of B or better [6][7] Group 4: Selected Stocks - The Marcus Corporation (MCS) operates in lodging and entertainment, with a long-term EPS growth rate of 15% and a VGM Score of B [7][8] - Climb Global Solutions, Inc. (CLMB) specializes in IT distribution and solutions, with a Zacks Consensus Estimate improvement of 26.2% over the past week and a VGM Score of A [8][9] - Graham Corporation (GHM) designs vacuum and heat transfer equipment, with an 8.4% upward revision in fiscal 2025 earnings estimates and a VGM Score of B [9][10] - Euroseas Ltd. (ESEA) operates in the shipping market, with a 13.7% increase in current-year earnings estimates and a VGM Score of B [10][11]

Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying strong growth stocks is challenging due to inherent volatility and risks [1] Group 1: Company Overview - Climb Global Solutions (CLMB) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 23.3%, with projected EPS growth of 52.2% this year, significantly surpassing the industry average of 27.1% [4] Group 2: Financial Metrics - Climb Global's year-over-year cash flow growth is 10.6%, outperforming the industry average of -21.7% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 27.3%, compared to the industry average of 11.9% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Climb Global have increased by 26.2% over the past month, indicating a positive trend in earnings estimate revisions [8] - The combination of strong earnings estimate revisions and a Growth Score of A positions Climb Global for potential outperformance [9][10]

Investors looking for stocks in the Technology Services sector might want to consider either Climb Global Solutions (CLMB) or QXO, Inc. (QXO) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with posit ...

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Climb Global Solutions (CLMB) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.Climb Global Solutions is one of 307 individual stocks in the Business Ser ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-26408 Climb Global Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3136104 (State or ...

Financial Data and Key Metrics Changes - Adjusted gross billings (AGB) increased 65% to $465.2 million compared to $281.9 million in the year-ago quarter [15] - Net sales increased 52% to $119.3 million compared to $78.5 million [15] - Gross profit increased 70% to $24.3 million compared to $14.3 million [17] - Net income more than doubled to $5.5 million or $1.19 per diluted share compared to $2.4 million or $0.52 per diluted share for the comparable period in 2023 [20] - Adjusted EBITDA increased 96% to $9.9 million compared to $5.1 million in the prior year quarter [22] Business Line Data and Key Metrics Changes - Growth in AGB was attributed to organic growth from new and existing vendors and contributions from acquisitions, with DSS and DataSolutions combined accounting for $81.3 million or 44% of the growth in AGB [16] - Core business grew by $102 million, representing 56% of the increase and year-over-year growth of 36% [16] - SG&A expenses increased to $13.9 million from $10.1 million, but as a percentage of AGB, it decreased to 3% from 3.6% [19] Market Data and Key Metrics Changes - The company generated double-digit organic growth in both the U.S. and Europe [7] - The company is building its presence in Germany, a key market in Western Europe, with a dedicated team on the ground [10][11] Company Strategy and Development Direction - The company remains focused on leveraging its global infrastructure to drive organic growth while exploring M&A targets that enhance geographic footprint and service offerings [13] - The company plans to continue its M&A strategy, particularly in Western Europe, while maintaining a strong balance sheet [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the pipeline for onboarding new vendors and noted that the macro environment remains strong [41][43] - The company anticipates a strong fourth quarter, driven by budget renewals and a robust operational momentum [40] Other Important Information - The company went live with a new ERP system, which is expected to enhance operations over time [12] - Cash and cash equivalents were $22.1 million as of September 30, 2024, down from $36.3 million at the end of 2023, primarily due to acquisition-related cash payments [23] Q&A Session Summary Question: Did the top 20 vendors grow in line with the overall business? - Management indicated that while not all top 20 vendors grew, the core vendors were driving organic growth [26][27] Question: Is security driving lead growth among technology segments? - Management confirmed that security remains a significant driver, with many vendors focusing on security solutions [29][30] Question: Are adjusted SG&A levels sustainable? - Management aims to keep SG&A as a percentage of AGB in the 3% range, benefiting from scale and leverage [31] Question: Will the DACH region become a priority for acquisition? - Management confirmed that the DACH region is a priority for future acquisitions, supported by local market analysis [32] Question: Will there be a pause before another acquisition? - Management indicated that they plan for 1 to 2 acquisitions per year, depending on the size and opportunity [33] Question: What are the acquisition-related costs for this quarter? - Management clarified that acquisition-related costs were primarily for professional services associated with transactions [36] Question: How does the acquisition mindset impact deal closures? - Management believes that a focus on culture and integration helps in closing more deals [38] Question: Will the fourth quarter be stronger than previous quarters? - Management expects the fourth quarter to be strong, driven by budget renewals and historical trends [40] Question: How is the macro environment perceived? - Management characterized the macro environment as strong, with a solid pipeline for new vendor onboarding [41][43]

Company Performance - Climb Global Solutions (CLMB) reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and up from $0.52 per share a year ago, representing an earnings surprise of 82.35% [1] - The company posted revenues of $119.35 million for the quarter ended September 2024, which was 2.33% below the Zacks Consensus Estimate, compared to $78.46 million in the same quarter last year [2] - Over the last four quarters, Climb Global has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Climb Global shares have increased approximately 93.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 22.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $126.95 million, and for the current fiscal year, it is $3.28 on revenues of $433.63 million [7] Industry Outlook - The Technology Services industry, to which Climb Global belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]