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• Grainger (GWW) for IT solutions
• TD Synnex (SNX) for specialized and emerging IT solutions
• Expedia (EXPE) for B2B IT solutions

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• Software Distribution: Distributes a curated portfolio of software solutions from emerging and established vendors, covering cybersecurity, data management, cloud, and business applications.
• Hardware Distribution: Provides specialized hardware products including networking, server, storage, and peripheral equipment, often for data center, edge, and and security applications.
• Cloud Solutions Distribution: Offers a marketplace and distribution of cloud-native and cloud-enabled software and infrastructure solutions, facilitating consumption-based models for partners.
• Value-Added Services: Delivers comprehensive services to support channel partners, including pre-sales engineering, technical support, marketing assistance, training, and flexible financing options.

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Climb Global Solutions (CLMB) sells primarily to other companies, specifically to a diverse network of technology resellers and service providers.

According to their public filings, including their most recent 10-K report, no single customer accounted for more than 10% of their consolidated gross billings for the years ended December 31, 2023, 2022, or 2021. Therefore, the company does not have individually named "major customers" in the traditional sense that are publicly disclosed.

Climb Global Solutions' customer base consists of a broad array of technology partners, including:

• Value-Added Resellers (VARs): These are companies that enhance or add services to existing products, then resell them as comprehensive solutions to end-users.
• System Integrators (SIs): Businesses that specialize in combining discrete hardware and software components into a unified system, ensuring all parts function cohesively for a client.
• Managed Service Providers (MSPs): Companies that proactively manage a customer's IT infrastructure and/or end-user systems, typically on a remote basis and under a subscription or service agreement.

These business customers then sell the software, hardware, and services distributed by Climb to their own end-user clients, who can be individuals, small and medium-sized businesses, or large enterprises.

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• NVIDIA Corporation (NVDA)
• Splunk Inc.

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Dale Foster, Chief Executive Officer

Mr. Foster joined Climb Global Solutions with over 20 years of industry and channel experience. Prior to joining the Company, he was with Promark Technology since 1988, serving as President from 1997. He was responsible for the strategic direction of Promark Technology and oversaw its national sales force. With the acquisition of Promark by Ingram Micro in 2012, Mr. Foster became Executive Director and General Manager, overseeing the growth strategies of the Promark emerging vendor division. His prior roles also include President at Climb Channel Solutions and Executive Vice President at Lifeboat Distribution. He holds a Bachelor's Degree in Electrical Engineering from the Rochester Institute of Technology.

Matthew Sullivan, Chief Financial Officer

Mr. Sullivan has 13 years of accounting and financial leadership experience. He joined Climb Global Solutions in January 2019, rising internally from Vice President, Corporate Controller, to Chief Accounting Officer, and was appointed Chief Financial Officer effective January 10, 2025. In these roles, he has overseen global financial functions, including external and internal reporting, compliance, and financial planning. Mr. Sullivan played a pivotal role in advancing Climb's growth strategy and contributed to the financial diligence process for five acquisitions since 2020. Before joining Climb, he held finance positions at Jackson Hewitt Tax Service and began his professional career in public accounting, including five years with BDO USA, LLP. He is a Certified Public Accountant and holds a Bachelor of Science in Accounting from Kutztown University.

Tim Popovich, President and Chief Operating Officer

Mr. Popovich has accumulated over 20 years of experience in product management, sales, and operations since joining Climb Global Solutions in October 2003. He has risen internally to his current role of President and Chief Operating Officer, to which he was appointed in August 2023. Prior to joining the Company, Mr. Popovich served as an Account Manager for Depot America, a master distributor for HP and Lexmark printer equipment. He received a Bachelor of Arts degree in Communications from Wilkes University in 2000 and obtained a Professional Certificate in Sales Management from Rutgers School of Business in 2017.

Charles Bass, Chief Alliances Officer

Mr. Bass currently serves as Chief Alliances Officer at Climb Global Solutions. In his previous role as Chief Marketing Officer for Climb for four years, he was instrumental in identifying and onboarding emerging brands and connecting them with resellers to accelerate business growth. Prior to his roles at Climb, Mr. Bass was the Vice President of Channel Sales at Blue Medora and served as Vice President of Vendor Alliances and Marketing for Promark Technology, an Ingram Micro Company. At Promark Technology, he had overall responsibility for all marketing and vendor relationships.

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The key risks to Climb Global Solutions' business include its significant dependency on a limited number of vendors and customers, the impact of general economic and political conditions on IT spending, and the inherent challenges and uncertainties associated with acquisitions.

1. Customer and Vendor Concentration: Climb Global Solutions faces a substantial risk due to its reliance on a concentrated base of key vendors and customers. In 2024, the top five customers were responsible for 54% of the company's consolidated net sales, and the largest vendor contributed 10% of consolidated purchases. The loss of a major vendor or customer, or a significant reduction in their business, could materially and adversely affect Climb Global Solutions' financial condition and results of operations.
2. Economic and Political Conditions: The company's business is susceptible to general economic weakness and political instability, which can lead to reduced technology spending by customers and increased pricing pressures. As an international technology distribution and solutions company with operations in the United States, Canada, Europe, and the United Kingdom, Climb Global Solutions is also exposed to various risks specific to international operations, including import and export regulations, compliance costs with international laws, and potential restrictions on the transfer of funds. The company's revenue is largely a function of software purchasing by its vendors' customers, a market over which it has limited control.
3. Acquisition Risks: Climb Global Solutions actively pursues growth through acquisitions, which inherently carry numerous risks. These include challenges in effectively combining acquired operations, technologies, or products, as well as unanticipated costs or liabilities associated with the integration process or regulatory actions.

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The increasing sophistication and expanded reach of major cloud provider marketplaces (e.g., AWS Marketplace, Azure Marketplace, Google Cloud Marketplace) and their associated partner programs. These platforms are evolving beyond simple listing services to offer more robust distribution channels, co-selling opportunities, and integrated procurement solutions, potentially diminishing the need for traditional value-added distributors for a growing segment of technology vendors and solutions.

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Climb Global Solutions (CLMB) operates in several key addressable markets for its main products and services, which primarily include software and hardware distribution, with a strong focus on cloud solutions, cybersecurity, and data management, as well as value-added services and an exploration into AI technologies.

• Cloud Computing/Cloud Services Market: The global cloud computing market size was estimated at approximately USD 618.04 billion to USD 1,125.9 billion in 2024. This market is projected to grow significantly, reaching between USD 2,390.18 billion and USD 5.15 trillion by 2030-2034. North America accounts for a significant share of this market, with some estimates placing its market size at over USD 259.58 billion in 2024 for cloud services.
• Cybersecurity Market: The global cybersecurity market was valued between USD 193.73 billion and USD 299.6 billion in 2024. It is projected to reach between USD 396.8 billion and USD 644.4 billion by 2029-2033, growing at a CAGR ranging from 8.9% to 12.9% during the forecast period. North America is the largest revenue-generating market, accounting for over 35.0% of the global market in 2024.
• Enterprise Data Management Market: The global enterprise data management market size was estimated between USD 85.5 billion and USD 111.44 billion in 2024. This market is anticipated to grow to a valuation between USD 200.6 billion and USD 349.52 billion by 2030-2034, with a CAGR ranging from 9.45% to 12.11%. North America held the largest market share in 2024, at over 34% to 37%.
• Master Data Management Market: The global master data management market size was estimated at USD 5.55 billion in 2021 and is expected to reach approximately USD 23.8 billion by 2030. North America is expected to remain one of the most attractive markets, holding the majority revenue share.
• Artificial Intelligence (AI) Software Market: The global AI software market size was valued between USD 116.42 billion and USD 294.16 billion in 2024. It is forecast to reach between USD 467 billion and USD 2.4 trillion by 2030-2032, with CAGRs ranging from 25% to 30.6%. North America is projected to lead the AI market in 2025 and has the largest regional market size for AI-powered software, with 54% of total AI software investment expected from North American companies in 2025.
• IT Hardware Market: The global IT hardware market size is estimated at USD 141.15 billion in 2025 and is expected to reach USD 206.05 billion by 2030, growing at a CAGR of 7.86%. The Asia Pacific region is expected to be the fastest-growing market, while North America holds a significant share.

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Here are the key expected drivers of future revenue growth for Climb Global Solutions (CLMB) over the next 2-3 years:

1. Organic Growth from Expanding Vendor and Customer Relationships: Climb Global Solutions consistently emphasizes double-digit organic growth by strengthening relationships with existing customers and adding new, innovative vendors to its portfolio. The company actively seeks to align with cutting-edge technologies and has a high demand from vendors wanting to join its offerings. This strategy focuses on increasing sales through both its established network and by bringing in new technologies across North America and Europe.
2. Strategic Acquisitions: A core part of Climb's growth strategy is the pursuit of accretive mergers and acquisitions (M&A) to enhance capabilities and expand its market footprint. Recent acquisitions, such as Douglas Stewart Software (DSS) and DataSolutions, have significantly contributed to gross billings and net sales, particularly with DSS adding seasonal strength from educational customers. The company aims to remain active in M&A, evaluating targets that can expand its offerings and presence both domestically and internationally.
3. Geographic Expansion, Especially in European Markets: Climb Global Solutions is actively expanding its operations geographically, with a particular focus on Western Europe and the DACH region (Germany, Austria, Switzerland). Initiatives like the "Climb AI Academy" have been launched in the DACH region to help IT partners gain a foothold in the booming artificial intelligence market, with plans to expand this concept to the UK and Ireland. This expansion is supported by dedicated local teams and partnerships.
4. Focus on High-Growth Emerging Technologies: The company specializes in emerging and innovative technologies, particularly in high-demand sectors such as security, data center, and cloud-based software. There is an estimated global IT software spending growth, with even higher growth rates expected for emerging vendors (10-16% annually) and specific areas like AI-powered cybersecurity (e.g., Darktrace), data centers (21% CAGR through 2029), and cloud computing (20.4% CAGR through 2030). Climb's strategy is to serve this underserved market of new, differentiated, and emerging brands.
5. Operational Efficiencies from New ERP System Implementation: While not a direct revenue driver, the full implementation of a new ERP system is expected to drive meaningful efficiencies across Climb's global operations. These efficiencies are anticipated to enhance scalability and increase operating leverage, which can indirectly support future revenue growth by allowing for more streamlined operations, better resource allocation, and potentially enabling faster integration of acquisitions and more aggressive pursuit of growth initiatives.

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Share Repurchases

• Climb Global Solutions authorized a share repurchase program of up to $5.0 million on June 10, 2024, followed by an additional $2.5 million authorization on September 26, 2024.
• During the three months ended September 30, 2024, the company repurchased approximately $4.8 million of its common stock.
• The company repurchased $1.6 million of its shares in 2024, $0.7 million in 2022, and $0.5 million in 2021. The share repurchase program remained active with 545,786 shares authorized for repurchase as of March 11, 2025.

Share Issuance

• The number of outstanding shares of common stock was 4,606,790 as of October 31, 2024, increasing from 4,516,652 shares outstanding as of February 28, 2023.
• As of December 31, 2024, 5,284,500 shares were issued.
• Additional paid-in capital increased from $34.647 million at December 31, 2023, to $37.977 million at December 31, 2024.

Outbound Investments

• In 2024, Climb Global Solutions completed the acquisition of DSS for approximately $20.3 million, with $20.4 million cash paid at closing. This acquisition was intended to enhance market presence and operational capabilities.
• In 2022, the company acquired Spinnakar Limited to expand its sales presence in the United Kingdom distribution operations and gain key vendor partner relationships.
• The company completed two acquisitions in 2020 to add scale, broaden its geographic footprint, expand partner relationships, and add cloud support capabilities.

Capital Expenditures

• In 2023, re-investment in the business amounted to $1.35 million.
• The company anticipates increased working capital needs to support business growth and plans to leverage its cash reserves and credit facilities to meet these requirements.