Strategic Performance and Operational Context

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• Achieved double-digit organic growth with 19 of the top 20 vendors, demonstrating strong momentum across the core business despite a difficult year-over-year comparison involving a large prior-year deal.

• Maintained a highly selective vendor onboarding process, evaluating 34 new brands but signing only two (Ivanti and Check MK) to ensure a high-value proposition for the reseller network.

• Successfully transitioned Fortinet from a new relationship to a material growth driver, with gross billings increasing 10x from Q1 to Q2 as internal capabilities expanded.

• Prioritized 'show up' sales engagement in local territories as a key differentiator against larger competitors, fostering deeper trust with regional resellers.

• Integrated the Interworks acquisition to preserve local expertise while leveraging Climb's broader global infrastructure for scale.

• Diversified the vendor portfolio significantly, increasing the number of vendors generating over $10 million in sales from 22 in 2022 to 45 currently.

• Invested in a new cloud platform architect to develop a technical blueprint for more efficient cloud-based software management, with Adobe as the initial integration priority.

Strategic Outlook and Growth Framework

• Management aims to more than double FY 2025 adjusted EBITDA by 2030 through a combination of organic growth, operating leverage, and strategic M&A.

• The second half of the year is expected to be seasonally stronger than the first, driven by the Adobe buying season and continued ramp-up of the Fortinet relationship.

• Strategic M&A focus is shifting toward larger targets in Europe, where higher margin profiles and less competition offer significant accretion potential.

• Ongoing IT infrastructure investments are expected to yield long-term efficiency gains and drive down SG&A as a percentage of gross billings over the next several years.

• The company is prepared to utilize debt to fund larger, high-quality acquisition targets that align with its global platform strategy.

Financial Dynamics and Risk Factors

• Q2 results faced a 'tough comp' due to a $30 million deal with Vast Data in the prior year period that did not recur at the same scale.

• SG&A expenses included approximately $500,000 in nonrecurring costs related to legal fees, professional fees, and IT infrastructure investments.

• The effective tax rate was higher year-over-year due to a diminishing discrete tax benefit from older restricted stock awards that have now fully vested.

• Gross billings from the Vast Data relationship are expected to remain 'lumpy' due to the large-scale nature of data center and AI engine projects.