# EDGAR Filing Document

**Accession Number:** 0000945983
**File Stem:** 0001437749-25-023967
**Filing Date:** 2025-7
**Character Count:** 26363
**Document Hash:** aeb573567db04371f15c212bfde14dcb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-023967.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001437749-25-023967

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250730

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Climb Global Solutions, Inc.
- **CENTRAL INDEX KEY:** 0000945983
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 133136104
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-26408
- **FILM NUMBER:** 251167063

**BUSINESS ADDRESS:**
- **STREET 1:** 4 INDUSTRIAL WAY WEST
- **STREET 2:** SUITE 300
- **CITY:** EATONTOWN
- **STATE:** NJ
- **ZIP:** 07724
- **BUSINESS PHONE:** 732-389-0932

**MAIL ADDRESS:**
- **STREET 1:** 4 INDUSTRIAL WAY WEST
- **STREET 2:** SUITE 300
- **CITY:** EATONTOWN
- **STATE:** NJ
- **ZIP:** 07724

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Wayside Technology Group, Inc.
- **DATE OF NAME CHANGE:** 20061027

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROGRAMMERS PARADISE INC
- **DATE OF NAME CHANGE:** 19950531

?xml version='1.0' encoding='ASCII'? clmb20250505_8k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 8-K**

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **July 30, 2025**

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**CLIMB GLOBAL SOLUTIONS, INC.**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **000-26408** | **13-3136104** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

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| | |
|:---|:---|
| **4 Industrial Way West, Suite 300**,**<br> **Eatontown**, **New Jersey** | **07724** |
| (Address of principal executive offices) | (Zip Code) |

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**732**-**389-0932**

(Registrant's telephone number, including area code)

**Not applicable**

(Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| Title of each class | Name of each exchange on which registered |
| Common stock, $.01 par value<br> CLMB | The Nasdaq Global Market |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp; ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Results of Operations and Financial Condition.**

On July 30, 2025, the Company issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of this press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference (the "Press Release").

The information in this Item 2.02 of the Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;99.1 | [<u>Press Release dated July 30, 2025.</u>](ex_812365.htm) |
| &nbsp;&nbsp;&nbsp;104 | Cover Page Interactive Data File (formatted as inline XBRL). |

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | CLIMB GLOBAL SOLUTIONS, INC. | CLIMB GLOBAL SOLUTIONS, INC. |
| Date: July 30, 2025 | By: | /s/ Matthew Sullivan |
|  | Name: | Matthew Sullivan |
|  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![clmb-20240228xex99d1001.jpg](clmb-20240228xex99d1001.jpg)

**Climb Global Solutions Reports Second Quarter 2025 Results**

*Net Sales up 73% to $159.3 Million; Net Income up 74% to $6.0 Million or $1.30 per Share; Adjusted EBITDA (non-GAAP) up 64% to $11.4 Million*

**EATONTOWN, N.J., July 30, 2025** – 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, is reporting results for the second quarter ended June 30, 2025.

**Second Quarter 2025 Summary vs. Same Year-Ago Quarter**

● Net sales increased 73% to $159.3 million.

● Net income increased 74% to $6.0 million or $1.30 per diluted share.

● Adjusted net income (a non-GAAP financial measure defined below) increased 68% to $6.4 million or $1.39 per diluted share.

● Adjusted EBITDA (a non-GAAP financial measure defined below) increased 64% to $11.4 million.

● Gross billings (a key operational metric defined below) increased 39% to $500.6 million. Distribution segment gross billings increased 40% to $477.0 million, and Solutions segment gross billings increased 19% to $23.5 million.

**Management Commentary**

"We continued to execute on our core initiatives in Q2, resulting in another period of exceptional performance with material increases across all key financial metrics," said CEO Dale Foster. "During the quarter, we generated double-digit organic growth by strengthening relationships with key customers, bolstering our line card with new, innovative vendors, and growing our market share in both the U.S. and Europe. We also benefited from the incremental contribution and seasonal strength of Douglas Stewart Software & Services, LLC ("DSS"), which typically sees higher demand from education customers as they ramp ahead of the next school year.

"Looking ahead, we will continue to build on the momentum established in the first half of the year, with a clear focus on driving sustainable growth and operational execution. With our ERP system now fully implemented, we expect to capture operational efficiencies that will enhance scalability and drive operating leverage across our global platform. We also remain focused on identifying strategic acquisition opportunities that can enhance our capabilities and complement our existing footprint. These initiatives, coupled with our robust balance sheet and demonstrated track record of success, will enable us to deliver on both our organic and inorganic growth objectives in 2025 and beyond."

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**Dividend**

Subsequent to quarter end, on July 29, 2025, Climb's Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on August 15, 2025, to shareholders of record on August 11, 2025.

**Second Quarter 2025 Financial Results**

Net sales in the second quarter of 2025 increased 73% to $159.3 million compared to $92.1 million for the same period in 2024. This reflects double digit organic growth from new and existing vendors, as well as contribution from the Company's acquisition of DSS on July 31, 2024. In addition, gross billings in the second quarter of 2025 increased 39% to $500.6 million compared to $359.8 million in the year-ago period.

Gross profit in the second quarter of 2025 increased 42% to $26.3 million compared to $18.6 million for the same period in 2024. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSS.

Selling, general, and administrative ("SG&A") expenses in the second quarter of 2025 were $16.4 million compared to $13.0 million in the year-ago period. DSS represented $0.9 million of the increase. SG&A as a percentage of gross billings decreased to 3.3% for the second quarter of 2025 compared to 3.6% in the year-ago period.

Net income in the second quarter of 2025 increased 74% to $6.0 million or $1.30 per diluted share, compared to $3.4 million or $0.75 per diluted share for the same period in 2024. Adjusted net income increased 68% to $6.4 million or $1.39 per diluted share, compared to $3.8 million or $0.83 per diluted share for the year-ago period.

Adjusted EBITDA in the second quarter of 2025 increased 64% to $11.4 million compared to $6.9 million for the same period in 2024. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company's acquisition of DSS. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 600 basis points to 43.3% compared to 37.3% for the same period in 2024.

On June 30, 2025, cash and cash equivalents were $28.6 million compared to $29.8 million on December 31, 2024, while working capital increased by $12.2 million during this period. The decrease in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.5 million of outstanding debt on June 30, 2025, with no borrowings outstanding under its $50 million revolving credit facility.

For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, "Non-GAAP Financial Measures," and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

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**Conference Call**

The Company will conduct a conference call tomorrow, July 31, 2025, at 8:30 a.m. Eastern time to discuss its results for the second quarter ended June 30, 2025.

Climb management will host the conference call, followed by a question-and-answer period.

Date: Thursday, July 31, 2025<br> Time: 8:30 a.m. Eastern time<br> Toll-free dial-in number: (800) 225-9448

International dial-in number: (203) 518-9708

Conference ID: CLIMB

Webcast: <u>Climb's Q2 2025 Conference Call</u>

If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

The conference call will also be available for replay on the investor relations section of the Company's website at <u>www.climbglobalsolutions.com</u>.

**About Climb Global Solutions**

Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the U.S., Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

Additional information can be found by visiting <u>www.climbglobalsolutions.com</u>.

**Non-GAAP Financial Measures**

Climb Global Solutions uses non-GAAP financial measures, including adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company's business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb's financial results under generally accepted accounting principles in the United States of America ("U.S. GAAP"). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

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**Key Operational Metric**

*Gross Billings*

Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, includes amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

**Forward-Looking Statements**

The statements in this release, other than statements of historical fact, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as "look forward," "believes," "expects," "intends," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "opportunity," "target," "outlook," "maintain," "continue," "goal," "aim," "commit," or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisition of Douglas Stewart Software & Services, LLC, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, import and export tariffs, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled "Risk Factors" contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time in the Company's filings with the Securities and Exchange Commission.

**Company Contact**

Matthew Sullivan<br> Chief Financial Officer<br> (732) 847-2451<br> MatthewS@ClimbCS.com

**Investor Relations Contact**

Sean Mansouri, CFA or Aaron D'Souza

Elevate IR

(720) 330-2829

CLMB@elevate-ir.com

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**CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES<br> CONDENSED CONSOLIDATED BALANCE SHEETS<br> (Unaudited)<br> (Amounts in thousands, except share and per share amounts)**

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| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $28587 | $29778 |
| Accounts receivable, net of allowance for doubtful accounts of $693 and $588, respectively | 289083 | 341597 |
| Inventory, net | 3349 | 2447 |
| Prepaid expenses and other current assets | 9164 | 6874 |
| Total current assets | 330183 | 380696 |
| Equipment and leasehold improvements, net | 13626 | 12853 |
| Goodwill | 37270 | 34924 |
| Other intangibles, net | 35718 | 36550 |
| Right-of-use assets, net | 1509 | 1965 |
| Accounts receivable, net of current portion | 1209 | 1174 |
| Other assets | 649 | 824 |
| Deferred income tax assets | 527 | 193 |
| Total assets | $420691 | $469179 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable and accrued expenses | $307715 | $370397 |
| Lease liability, current portion | 727 | 654 |
| Term loan, current portion | 474 | 560 |
| Total current liabilities | 308916 | 371611 |
| Lease liability, net of current portion | 1116 | 1685 |
| Deferred income tax liabilities | 5101 | 4723 |
| Term loan, net of current portion |  | 191 |
| Other non-current liabilities | 381 | 381 |
| Total liabilities | 315514 | 378591 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| Common stock, $.01 par value; 10,000,000 shares authorized; 5,284,500 shares issued: 4,617,206 and 4,601,302 shares outstanding, respectively | 53 | 53 |
| Additional paid-in capital | 40043 | 37977 |
| Treasury stock, at cost, 667,294 and 683,198 shares, respectively | (14266) | (13337) |
| Retained earnings | 76904 | 68787 |
| Accumulated other comprehensive income (loss) | 2443 | (2892) |
| Total stockholders' equity | 105177 | 90588 |
| Total liabilities and stockholders' equity | $420691 | $469179 |

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**CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

**(Amounts in thousands, except per share data)**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net sales | $297328 | $184498 | $159284 | $92076 |
| Cost of sales | 247624 | 148921 | 132976 | 73518 |
| Gross profit | 49704 | 35577 | 26308 | 18558 |
| Selling, general, and administrative expenses | 33112 | 25496 | 16357 | 12974 |
| Depreciation and amortization expense | 3720 | 1736 | 1982 | 865 |
| Acquisition related costs | 139 | 592 | 13 | 469 |
| Total selling, general and administrative expenses | 36971 | 27824 | 18352 | 14308 |
| Income from operations | 12733 | 7753 | 7956 | 4250 |
| Interest, net | 337 | 557 | 151 | 354 |
| Foreign currency transaction (loss) gain | (567) | (246) | 14 | (162) |
| Change in fair value of acquisition contingent consideration | (515) |  | (379) |  |
| Income before provision for income taxes | 11988 | 8064 | 7742 | 4442 |
| Provision for income taxes | 2338 | 1903 | 1774 | 1012 |
| Net income | $9650 | $6161 | $5968 | $3430 |
| Income per common share-Basic | $2.11 | $1.35 | $1.30 | $0.75 |
| Income per common share-Diluted | $2.11 | $1.35 | $1.30 | $0.75 |
| Weighted average common shares outstanding — Basic | 4509 | 4449 | 4521 | 4461 |
| Weighted average common shares outstanding — Diluted | 4509 | 4449 | 4521 | 4461 |
| Dividends paid per common share | $0.34 | $0.34 | $0.17 | $0.17 |

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**Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)**

**(Amounts in thousands, except per share data)**

The table below presents net sales reconciled to adjusted gross billings (Non-GAAP) (1):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| **Net income reconciled to adjusted EBITDA (Non-GAAP):** | **2025** | **2024** | **2025** | **2024** |
| Net income | $9650 | $6161 | $5968 | $3430 |
| Provision for income taxes | 2338 | 1903 | 1774 | 1012 |
| Depreciation and amortization | 3720 | 1736 | 1982 | 865 |
| Interest expense | 159 | 161 | 90 | 60 |
| EBITDA | 15867 | 9961 | 9814 | 5367 |
| Share-based compensation | 2496 | 1906 | 1173 | 1084 |
| Acquisition related costs | 139 | 592 | 13 | 469 |
| Change in fair value of acquisition contingent consideration | 515 |  | 379 |  |
| Adjusted EBITDA | $19017 | $12459 | $11379 | $6920 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, acquisition related costs and change in fair value of acquisition contingent consideration. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

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The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (2):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Components of interest, net** |  |  |  |  |
| Amortization of discount on accounts receivable with extended payment terms | $(23) | $(17) | $(11) | $(11) |
| Interest income | (473) | (701) | (230) | (403) |
| Interest expense | 159 | 161 | 90 | 60 |
| Interest, net | $(337) | $(557) | $(151) | $(354) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) We define adjusted net income as net income excluding acquisition related costs, net of income taxes and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income and adjusted net income per common share as supplemental measures of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that adjusted net income and adjust net income per common share provide useful information to investors and others in understanding and evaluating our operating results. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

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The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (3):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income | $9650 | $6161 | $5968 | $3430 |
| Acquisition related costs, net of income taxes | 104 | 444 | 10 | 352 |
| Change in fair value of acquisition contingent consideration | 515 |  | 379 |  |
| Adjusted net income | $10269 | $6605 | $6357 | $3782 |
| Adjusted net income per common share - diluted | $2.25 | $1.45 | $1.39 | $0.83 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  | **Three months ended**  | **Three months ended**  |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Distribution gross billings | $930619 | $674704 | $477043 | $340067 |
| Solutions gross billings | 44531 | 40406 | 23510 | 19774 |
| Total gross billings | $975150 | $715110 | $500553 | $359841 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, include amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.