Climb Global Solutions, Inc. Goodwill & Intangibles Disclosure
4. Goodwill and Other Intangible Assets
Goodwill represents the premium paid over the fair value of the net tangible and intangible assets that are individually identified and separately recognized in business combinations. The following table summarizes the changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2025 and 2024.
| Distribution | Solutions | Consolidated | ||||||||||
| Balance December 31, 2023 | $ | 18,658 | $ | 8,524 | $ | 27,182 | ||||||
| Goodwill acquired | 8,401 | — | 8,401 | |||||||||
| Translation adjustments | (529 | ) | (130 | ) | (659 | ) | ||||||
| Balance December 31, 2024 | $ | 26,530 | $ | 8,394 | $ | 34,924 | ||||||
| Goodwill acquired | — | — | — | |||||||||
| Translation adjustments | 1,299 | 615 | 1,914 | |||||||||
| Balance December 31, 2025 | $ | 27,829 | $ | 9,009 | $ | 36,838 | ||||||
Information related to the Company’s other intangibles, net is as follows:
| As of December 31, 2025 | ||||||||||||
| Gross | Accumulated | Net | ||||||||||
| Carrying Amount | Amortization | Carrying Amount | ||||||||||
| Customer and vendor relationships | $ | 46,084 | $ | 14,195 | $ | 31,889 | ||||||
| Trade name | 517 | 178 | 339 | |||||||||
| Total | $ | 46,601 | $ | 14,373 | $ | 32,228 | ||||||
| As of December 31, 2024 | ||||||||||||
| Gross | Accumulated | Net | ||||||||||
| Carrying Amount | Amortization | Carrying Amount | ||||||||||
| Customer and vendor relationships | $ | 43,805 | $ | 7,603 | $ | 36,202 | ||||||
| Trade name | 481 | 133 | 348 | |||||||||
| Total | $ | 44,286 | $ | 7,736 | $ | 36,550 | ||||||
Customer relationships are amortized over years. Vendor relationships are amortized between and years. Trade name is amortized over years.
The Company recognized total amortization expense for other intangibles, net of $6.0 million, $3.4 million and $2.2 million during the years ended December 31, 2025, 2024 and 2023, respectively.
Estimated future amortization expense of the Company’s other intangibles, net as of December 31, 2025 is as follows:
| 2026 | $ | 5,826 | ||
| 2027 | 4,232 | |||
| 2028 | 3,966 | |||
| 2029 | 3,700 | |||
| 2030 | 3,700 | |||
| Thereafter | 10,804 | |||
| Total | $ | 32,228 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 16, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.