Climb Global Solutions, Inc. Segments Disclosure
12. Industry, Segment and Geographic Financial Information
The Company distributes software developed by others through resellers indirectly to customers worldwide. We also resell computer software and hardware developed by others and provide technical services directly to customers worldwide.
FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s Chief Executive Officer, who has been identified as the Company’s CODM, evaluates the performance of both reportable segments based on operating income. Net sales, gross profit, and operating expenses are also monitored closely. This information is used to measure segment profitability, allocate resources, and make budgeting and forecasting decisions about the reportable segments. The CODM also uses these measures to monitor trends in year over year performance comparisons, sequential quarter performance comparisons, and to compare actual results to forecasts. More disaggregated information about operating expense is generally only reviewed by the CODM on a consolidated basis. Operating income represents net sales less costs of sales, excluding depreciation and amortization expense and operating expenses. Net sales and cost of sales, excluding depreciation and amortization expense are directly attributed to each segment. The majority of operating expenses are also directly attributed to each segment, while certain other operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated.
The Company is organized into two reportable operating segments. The “Distribution” segment distributes technical software to corporate resellers, VARs, consultants and systems integrators worldwide. The “Solutions” segment is a provider of cloud solutions and value-added reseller of software, hardware and services to customers worldwide. The Company's reportable segments are based on products and services delivered, and the Company's CODM decides how to assess performance and allocate resources based on segment.
Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments, inventory, goodwill and intangible assets by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided:
| Year ended | ||||||||||||
| December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net Sales: | ||||||||||||
| Distribution | $ | 627,443 | $ | 441,940 | $ | 325,262 | ||||||
| Solutions | 25,074 | 23,667 | 26,751 | |||||||||
| 652,517 | 465,607 | 352,013 | ||||||||||
| Cost of Sales: | ||||||||||||
| Distribution | $ | 535,552 | $ | 363,648 | $ | 271,899 | ||||||
| Solutions | 11,696 | 10,879 | 15,867 | |||||||||
| 547,247 | 374,527 | 287,766 | ||||||||||
| Direct Costs: | ||||||||||||
| Distribution | $ | 40,803 | $ | 31,888 | $ | 22,467 | ||||||
| Solutions | 6,241 | 5,455 | 5,238 | |||||||||
| 47,044 | 37,343 | 27,705 | ||||||||||
| Segment Income: (1) | ||||||||||||
| Distribution | $ | 51,088 | $ | 46,404 | $ | 30,896 | ||||||
| Solutions | 7,137 | 7,333 | 5,646 | |||||||||
| Segment Income | 58,226 | 53,737 | 36,542 | |||||||||
| General and administrative | $ | 20,506 | $ | 19,165 | $ | 16,625 | ||||||
| Acquisition related costs | 807 | 2,311 | 629 | |||||||||
| Depreciation and amortization expense | 7,728 | 4,269 | 2,798 | |||||||||
| Interest, net | 844 | 917 | 927 | |||||||||
| Foreign currency transaction loss | (737 | ) | (273 | ) | (636 | ) | ||||||
| Change in fair value of acquisition contingent consideration | 1,374 | 3,618 | — | |||||||||
| Income before taxes | $ | 27,918 | $ | 25,018 | $ | 16,781 | ||||||
| (1) | Excludes general corporate expenses including acquisition related costs, amortization and depreciation expense, interest, foreign currency transaction loss, and change in fair value of acquisition contingent consideration. |
| As of | As of | |||||||
| December 31, | December 31, | |||||||
| Selected Assets by Segment: | 2025 | 2024 | ||||||
| Distribution | $ | 375,024 | $ | 394,809 | ||||
| Solutions | 22,124 | 21,882 | ||||||
| Segment Select Assets | 397,148 | 416,691 | ||||||
| Corporate Assets | 63,085 | 52,488 | ||||||
| Total Assets | $ | 460,233 | $ | 469,179 | ||||
Geographic areas and net sales mix related to operations for the year ended December 31, 2025 and 2024 were as follows. Net sales is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile.
| Year ended | ||||||||||||
| December 31, 2025 | ||||||||||||
| Distribution | Solutions | Total | ||||||||||
| Geography | ||||||||||||
| USA | $ | 494,348 | $ | 8,263 | $ | 502,611 | ||||||
| United Kingdom | 67,852 | 15,253 | 83,105 | |||||||||
| Europe | 31,275 | 855 | 32,130 | |||||||||
| Canada | 33,968 | 703 | 34,671 | |||||||||
| Total net sales | $ | 627,443 | $ | 25,074 | $ | 652,517 | ||||||
| Timing of Revenue Recognition | ||||||||||||
| Transferred at a point in time where the Company is principal (1) | $ | 577,347 | $ | 18,150 | $ | 595,497 | ||||||
| Transferred at a point in time where the Company is agent (2) | 50,096 | 6,924 | 57,020 | |||||||||
| Total net sales | $ | 627,443 | $ | 25,074 | $ | 652,517 | ||||||
| Year ended | ||||||||||||
| December 31, 2024 | ||||||||||||
| Distribution | Solutions | Total | ||||||||||
| Geography | ||||||||||||
| USA | $ | 333,197 | $ | 8,652 | $ | 341,849 | ||||||
| United Kingdom | 45,808 | 13,775 | 59,583 | |||||||||
| Europe | 36,231 | 114 | 36,345 | |||||||||
| Canada | 26,704 | 1,126 | 27,830 | |||||||||
| Total net sales | $ | 441,940 | $ | 23,667 | $ | 465,607 | ||||||
| Timing of Revenue Recognition | ||||||||||||
| Transferred at a point in time where the Company is principal (1) | $ | 399,360 | $ | 15,847 | $ | 415,207 | ||||||
| Transferred at a point in time where the Company is agent (2) | 42,580 | 7,820 | 50,400 | |||||||||
| Total net sales | $ | 441,940 | $ | 23,667 | $ | 465,607 | ||||||
| Year ended | ||||||||||||
| December 31, 2023 | ||||||||||||
| Distribution | Solutions | Total | ||||||||||
| Geography | ||||||||||||
| USA | $ | 244,261 | $ | 15,425 | $ | 259,686 | ||||||
| United Kingdom | 41,641 | 10,167 | 51,808 | |||||||||
| Europe | 15,612 | — | 15,612 | |||||||||
| Canada | 23,748 | 1,159 | 24,907 | |||||||||
| Total net sales | $ | 325,262 | $ | 26,751 | $ | 352,013 | ||||||
| Timing of Revenue Recognition | ||||||||||||
| Transferred at a point in time where the Company is principal (1) | $ | 286,051 | $ | 19,853 | $ | 305,904 | ||||||
| Transferred at a point in time where the Company is agent (2) | 39,211 | 6,898 | 46,109 | |||||||||
| Total net sales | $ | 325,262 | $ | 26,751 | $ | 352,013 | ||||||
| (1) | Includes net sales from third-party hardware and software products. |
| (2) | Includes net sales from third-party maintenance, software support and services. |
Geographic identifiable assets related to operations as of December 31, 2025 and 2024 were as follows.
| December 31, | December 31, | |||||||
| Identifiable Assets by Geographic Areas | 2025 | 2024 | ||||||
| USA | $ | 266,238 | $ | 278,957 | ||||
| United Kingdom | 125,191 | 112,720 | ||||||
| Europe | 37,031 | 43,150 | ||||||
| Canada | 31,773 | 34,352 | ||||||
| Total | $ | 460,233 | $ | 469,179 | ||||
For the year ended December 31, 2025, the Company had customers that accounted for 24% and 13%, respectively, of consolidated net sales and as of December 31, 2025, 15% and 8%, respectively, of total net accounts receivable. For the year ended December 31, 2025, the Company had major vendors. These customers and vendors are all in the Company's Distribution segment.
For the year ended December 31, 2024, the Company had customers that accounted for 18%, 14%, and 11%, respectively, of consolidated net sales and as of December 31, 2024, 12%, 6% and 19%, respectively, of total net accounts receivable. For the year ended December 31, 2024, the Company had one vendor that accounted for 10% of our consolidated purchases. These customers and vendors are all in the Company's Distribution segment.
For the year ended December 31, 2023, the Company had customers that accounted for 20%, and 15%, respectively, of consolidated net sales and as of December 31, 2023, 15% and 6%, respectively, of total net accounts receivable. For the year ended December 31, 2023, the Company had vendor that accounted for 14% of our consolidated purchases. These customers and vendors are all in the Company's Distribution segment.
Our top five customers accounted for 55%, 54% and 51% of consolidated net sales for the years ended December 31, 2025, 2024 and 2023, respectively.
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 | |
| 2019 | Mar 4, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 22, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.