This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
7/31/2025
Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions financial results for the second quarter ended June 30th, 2025. Joining us today are Climb's CEO, Mr. Dale Foster, the company's CFO, Mr. Matthew Sullivan, and the company's investor relations advisor, Mr. Sean Mansuri with Elevate IR. By now, everyone should have access to the second quarter 2025 earnings press release, which was issued yesterday afternoon at approximately 4.05 p.m. Eastern Time. The release is available in the Investor Relations section of Climb Global Solutions website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company's website. Following management remarks, we will open the call for your questions. I would now like to turn the call over to Mr. Mansuri for introductory comments.
Thank you. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements. which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. Our presentation also includes certain key operational metrics and non-GAAP financial measures, including gross billings, adjusted EBITDA, adjusted net income and EPS, and effective margin. as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and Form 8K we furnished to the SEC yesterday. I'll now turn the call over to CLIMB's CEO, Dale Foster.
Thank you, Sean, and good morning, everyone. As you can see, we had another strong quarter with material increases across all of our key financial metrics. During the quarter, we generated double-digit organic growth by strengthening relationships with customers, growing our line card with new innovative vendors, and expanding market share in both the U.S. and Europe. We also benefited this quarter from the incremental contribution and seasonal strength of our acquisition of Douglas Stewart Software, DSS, which typically sees higher demand for education customers as they ramp up ahead the next school year. Our CLIMB team continues to identify and align with the most innovative technologies in the market that not only strengthen our vendor ecosystem, but also address increasingly complex challenges our customers face. In Q2 alone, we evaluated 50 potential vendor partnerships and moved forward with just four of them. This disciplined approach reflects our commitment to quality over quantity, and our focus on delivering differentiated high-impact solutions that drive long-term value across our platform. Let me take a moment to highlight a few of these wins. First, we announced a partnership with Ignite, a leader in secure content, collaboration, intelligence, and governance. This partnership enables us to offer Ignite's cloud-native platform to our partners, their customers across the U.S., reinforcing our commitment to the expanding access of transformative technologies. By adding Ignite to our line card, we are equipping resellers with a trusted, scalable platform that fits seamlessly into both SMB and enterprise environments. This partnership underscores our mission to deliver partner-first technologies that move with speed of the modern business. In Q2, we also, our QAM UK and Ireland team secured an exclusive distribution agreement with IGEL, a global leader in secure endpoint OS solutions for UK and Ireland. This milestone builds on the partnership that we began in 2016 with Data Solutions out of Ireland, which we acquired in 2023. Our ability to drive lead generation and expanded IGEL addressable market in the region led to this sole distribution agreement further validating our strength of our channel, reach, execution, and commitment to Europe. We look forward to continuing our partnership with IGEL as we scale together in these key markets. In June, we brought on Vishal Pushpa, CLIMB's Chief Information Officer. Vishal is a dynamic IT executive with more than two decades of strategic leadership across high-tech manufacturing, logistics, distribution, services, and services. Vishal has led large-scale ERP, CRM, and HCM transformations and has overseen complex M&A integrations and driven a deployment of cutting-edge cloud solutions. AI, and automation, and enhanced security infrastructure. He brings a visionary approach to innovation and has a strong track record of fostering global calibration and anticipating future technology trends. We are pleased to have him join the Klein family and look forward to his invaluable contributions. In addition to Vishal's appointment, in May, we announced the promotion of Carlos Rodriguez to our President of North America. Carlos has been a key leader at Klein since 2020, bringing more then 20 years of experience in value-added distribution and a proven track record of driving growth across North America. Since joining Climb, he has played a pivotal role in expanding market share, building high-performance sales teams, and strengthening strategic vendor relationships. In his prior role as Vice President of Sales, Carlos led the development of Climb's dedicated vendor management team and has also consistently delivered impactful results through alignment and partner engagement. In this new role, As President, Carlos will oversee the North American sales with a focus on accelerating growth, deepening vendor and partner success, and further expanding CLIMB's market presence. We're excited to see Carlos bring his leadership and vision to his new role as we continue executing on our growth strategy. Looking ahead, we're focused on building on the momentum from the first half of the year by continuing to execute against our strategic priorities, with our ERP system Now fully in place, we're beginning to realize the benefits of improved operational efficiency and scalability, positioning us to drive stronger operating leverage as we grow. Additionally, we're actively evaluating strategic M&A opportunities in North America and overseas that align with our long-term vision and can expand both our capabilities and geographic reach. These initiatives, coupled with our robust balance sheet and demonstrated track record of success, will enable us to deliver on both organic and inorganic objectives in 2025 and beyond. With that, I will turn the call over to our CFO, Matt Sullivan, to take you through our financial results. Matt?
You're reading a preview of the CLMB Q2 2025 earnings call.
Free account.
