Operator: Good morning, everyone, and thank you for participating in today's conference call to discuss Climb Global Solutions financial results for the second quarter ended June 30, 2026. Joining us today are Climb's CEO, Mr. Dale Foster; the company's CFO, Mr. Matthew Sullivan; and the company's Investor Relations adviser, Mr. Sean Mansouri with Elevate IR. By now, everyone should have access to the second quarter 2026 earnings press release, which was issued yesterday afternoon at approximately 4:05 Eastern Time. The release is available in the Investor Relations section of Climb Global Solutions website at www.climbglobalsolutions.com. This call will also be available for webcast replay on the company's website. Following management's remarks, we'll open the call for your questions. I would now like to turn the call over to Mr. Mansouri for introductory comments.
Sean Mansouri: Thank you. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. Our presentation also includes certain key operational metrics and non-GAAP financial measures, including gross billings, adjusted EBITDA, adjusted net income and EPS and effective margin as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. I'll now turn the call over to Climb's CEO, Dale Foster.
Dale Foster: Thank you, Sean, and good morning, everyone. We executed on several strategic initiatives in Q2 that are central Climb's long-term success. We generated double-digit organic growth with 19 of our top 20 vendors, benefited from our acquisition of Interworks and bolstered line card to make further investments and our systems need to support the larger and more efficient global platform. . Our strong vendor performance is evidence of the momentum we are generating across the business. Rather than pursuing scale for its own sake, we focus on strengthening existing partnerships and identifying emerging technologies that offer a better value proposition for our reseller network and their customers. During the second quarter, we evaluated 34 new brands and signed agreements with only 2 of them. Our first agreement was with Ivanti, a Utah-based global enterprise IT and security software company with more than 1,000 employees and approximately $1 billion in annual revenue. Ivanti provides an AI-powered platform designed to help organizations manage, automate and secure complex digital workplaces with a primary focus on cases spanning endpoint management, IT service management, patch and exposure management and Zero Trust security. Through this relationship, Climb will expand channel access to Ivanti's autonomous endpoint management offering and enabling partners to help customers improve operational efficiency and strengthen security and reduce risk. We also signed a company called Check MK, a German-based provider of comprehensive IT infrastructure monitoring and observability solutions. Its platform helps organizations track and the health and performance and availability of their entire technology stack, including network servers, applications and cloud resources. Check MK combines automated discovery, customizable dashboards and enterprise-grade scalability to support a broad range of IT environments and give customers greater visibility into increasingly complex infrastructures. In addition to those new agreements, we expanded 2 existing relationships. First, we broadened our relationship with Logic monitor from a few select customers to all of North America, giving our partners more access to its AI-powered hybrid observability platform. We also launched Quantum on our primary line card. In Q2, Quantum's portfolio includes high-performance storage, AI-enabled workflow management and long-term data preservation solutions designed to help public and private sector end users manage data growth and storage constraints. These expanded relationships illustrate how we work with our vendors to build momentum over time. We begin with a focused go-to-market strategy, invest in the relationship as demand develops and expand our support as the opportunity grows. Darktrace is an example of this strategy in action. Within 12 months of joining the Climb platform, Darktrace became 1 of our top 20 vendors and with the largest growth driver among our new vendor relationships during the quarter. Fortinet also continues to ramp meaningfully with gross billings increasing materially from Q1 as we expand our internal capabilities and work closely with Fortinet's leadership team to expand the channel. While the relationship is still developed, we are encouraged by the progress to date and believe Fortinet be 1 of Climb's largest vendor relationships over time. We also are making progress on the development of our cloud platform, which is intended to create a more efficient way for customers and partners to purchase, manage and renew cloud-based software through the client platform. During the quarter, we hired an experienced platform architect who is developing the initial structure and technical blueprint, which we expect to complete soon. Adobe will be 1 of the first vendor prioritization priorities for the integration. And over time, we expect the same platform capabilities to support additional vendor lines. Alongside these organic initiatives, we continue to integrate Interworks into our broader global platform. We will preserve the local expertise and relationships that have supported Interworks' success while identifying opportunities to leverage Climb's broader infrastructure across the region. These initiatives, aligned with the strategy we outlined earlier this month at our first Investor Day at the NASDAQ market site, where we provided a deeper look at Climb's unique model and long-term priorities. We also presented our goals to more than double our FY 2025 adjusted EBITDA by 2030 to organic growth, deeper vendor relationships, partner relationships and operating leverage and strategic M&A. Thank you again to the investors that joined us in person and as well as those that joined us by webcast. As we position Climb for the next phase of growth, we strengthened our Board with the appointment of Peter Bell. Peter brings more than 35 years of experience across venture capital technology, operations and strategic advisory roles. His experience identifying disruptive technology, scaling technology business and navigating the M&A landscape is directly relevant to our long-term strategy and will be -- and will add operating investment, strategic perspective to our team as well as scale of our global platform. Looking ahead, we are focused on driving organic growth, selectively expanding our line card and evaluating accretive M&A opportunities with Europe as our key focus area. Our strong balance sheet provides the flexibility to invest in these priorities while maintaining a disciplined approach to capital allocation. We believe these initiatives, coupled with our robust balance sheet will enable us to continue driving value to our shareholders. With that, I will turn the call over to Matt Sullivan, our CFO, for the financial results. Matt?
Matthew Sullivan: Thank you, Dale, and good morning, everyone. A quick reminder as we review the financial results for our second quarter, all comparisons and variants commentary refer to the prior year quarter unless otherwise specified. . As reported in our earnings press release, gross billings in the second quarter of 2026 increased 17% to $587.3 million compared to $500.6 million in the year ago quarter. Distribution segment gross billings increased 8% to $562.9 million while Solutions segment gross billings increased 4% to $24.4 million. Net sales in the second quarter of 2026 increased 9% to $174.2 million compared to $159.3 million in the prior year period. This increase reflects double-digit organic growth from new and existing vendors as well as the contribution from our acquisition of Interworks on February 24, 2026. Gross profit in the second quarter of 2026 increased 15% to $30.2 million compared to $26.3 million for the same period in 2025. The increase was driven by organic growth from new and existing vendors in both North America and Europe as well as the contribution from Interworks. Selling, general and administrative expenses in the second quarter of 2026 were $20.7 million compared to $16.4 million in the prior year period. The year-over-year increase primarily reflects SG&A associated with Interworks and variable sales compensation attributed to the growth in gross profit. SG&A in Q2 2026 was also impacted by higher legal and professional fees as well as increased investments in IT infrastructure designed to improve workflows, strengthen our operating infrastructure and drive efficiencies across our global sales organization to support future growth. SG&A as a percentage of gross billings was 3.5% for the second quarter of 2026 compared to 3.3% for the prior year period. Net income in the second quarter of 2026 was $5.5 million or $0.30 per diluted share compared to $6 million or $0.33 per diluted share for the prior year period. Adjusted net income was $5.5 million or $0.30 per diluted share compared to $6.4 million or $0.35 per diluted share for the year ago period. Both net income and adjusted net income in the second quarter of 2026 were impacted by a higher effective tax rate to the prior -- compared to the prior year period. Adjusted EBITDA in the second quarter of 2026 was $11.3 million compared to $11.4 million in the same period in 2025. The decrease was primarily driven by the aforementioned investments focusing on efficiencies to support long-term growth initiatives. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit was 37.5% compared to 43.3% for the same period in 2025. Turning to our balance sheet. Cash and cash equivalents were $56.6 million as of June 30, 2026 compared to $36.6 million on December 31, 2025. The increase in cash was primarily attributed to the timing of receivable collections and payables. As of June 30, 2026, we have no debt or outstanding borrowings under our $50 million revolving credit facility. Our strong financial position gives us flexibility to support working capital needs, invest in the business and actively pursue M&A opportunities. We will continue to deploy capital strategically and evaluate opportunities based on their fit and ability to strengthen the client platform while maintaining the discipline needed to advance our long-term objectives. This concludes our prepared remarks. Operator, please open the line for questions.
Operator: [Operator Instructions] And we'll take our first question from Keith Housum with North Coast Research.
Keith Housum: Appreciate the opportunity. As we kind of think about the results for this quarter, if I compare to last year, if I remember right, last year had some more onetime items related to vast data, how tough of comparable was that for you this quarter?
Dale Foster: Yes, Keith -- go ahead, Matt.
Matthew Sullivan: No, you go head.
Dale Foster: So Keith, number one, thanks for joining us investor in New York, it was good to see you. The -- we knew it was going to be a tough comp going into Q2 because we had a $30 million deal with Vast data and then another 1 that was going to be in Q3 got pulled into Q2. So we had a really tough comp to do that. But going into the quarter, 1 of our bigger vendors had a down Q1 and really came back in Q2. So that helped it out, but we really were thrilled by the teams. And like I mentioned in the opening remarks with Darktrace, really going to the next level, some of the other performers. And when -- if you remember when I first said, we had 19 of our 20 vendors outperformed and grew in Q2. So that tough comp, but good to see our top vendors taking off. .
Keith Housum: No, absolutely. And you guys mentioned Fortinet having significant growth this quarter versus the first quarter. Is there a good opportunity for them to eclipse the speed or pace that Darktrace has achieved over the past year? How are you thinking about Fortinet's ability to climb, I guess, over the next 12 months?
Dale Foster: For sure. I mean, it was a 10x factor from Q1 of this year to Q2 of this year. Of course, the bigger you get, it doesn't grow as fast. But we're hosting QBRs in our locations. Our teams are so much more integrated than they were even in Q1. We started this relationship in November. So it will continue. And I think I said it be 1 of our top 5 vendors probably this time next year. It continues to grow. And if you looked at their financial results this week, for a company that's $6 billion, $7 billion in size, they grew 14% in Q1. Q2, they were up double digits as well. So just a great relationship. And as your teams get closer and closer, everything gets faster, right, as far as getting more of our customers on board. And Fortinet's portfolio goes so wide, right? They go from firewalls all the way to access and security cameras. So just a good technology company that we're going to expand on.
Keith Housum: Great. Good to hear it. And as I look at your SG&A expenses, I know you guys are held a lot of different fires going on right now in terms of some of the IT efficiencies, and so we're restructuring legal fees. As you look at that, how much would you say was onetime or nonrecurring? And how should we think about for the rest of the year? .
Dale Foster: Go ahead, Matt.
Matthew Sullivan: Yes. So in the quarter, we had about $500,000 of what I would call nonrecurring type expenses. It relates to some of the legal and professional costs and then some of the investments in our IT infrastructure. So looking -- thinking about it from an effective margin perspective, we declined from -- our SG&A as a percentage of gross billings was declined by 20 basis points from Q1 to Q2, which was consistent with our trajectory from Q1 to Q2 of last year. So that's kind of how we're thinking about it that the consistent effective margin flow that we've historically experienced is what we expect to see in the future.
Dale Foster: Great. And if you take up -- and Keith real quick, I mean, I hate talking about onetimers because it seems like every quarter, you have a 1 timer, right? Like it is 1 time, but it's something different. But if you look at -- we know we have our internal budget and stuff, and we are right on track for the investments that we put in. And then, of course, we're very opportunistic as a company. So when we say, "Hey, you know what, we should invest more in this piece of it, and it's going to be an expense that we didn't budget for it". We're still going to do it because the efficiency that we get for the rest of our next 10 years is what's doing now. So we're -- that's what we've done in both Q1 and Q2 and some of it will be in Q3. .
Keith Housum: So in your head, Dale, in terms of like the investment in the cloud marketplace and the IT, how fast is your payback? Is that a payback you can get back in a year?
Dale Foster: From the IT side, for sure. Yes. And we're doing -- so we've talked about our ERP went live 2 years ago, July. And now we're tweaking it, and we're trying to use the best tools for the job. So with Vishal coming on, he's been on board a year now. We have expected a lot from him. He's delivered getting the right team members in. So you're going to continue to see that piece of it. And we know -- I'm going to get the comments, I mean, on our SG&A side, we need to keep a very close watch on and continue to get the efficiency we can drive it down. .
Keith Housum: Right. Okay. Guys, I appreciate the opportunity to look forward to seeing the growth going forward.
Operator: Our next question will come from Vincent Colicchio with Barrington Research.
Vincent Colicchio: Yes, Dale. I'm curious, are geopolitical factors have any impact on sentiment in Europe? And also, are you hitting your cross-selling objectives in Europe setting Interworks side given how recent that is?
Dale Foster: Yes. On the cross-selling side, I'll take that first, not that big of an impact other than the teams are getting to know each other, and we're going to start seeing vendors getting loaded on to the platform that they're using over there. So we'll see that piece of it. But we're also getting the teams integrated together on just territory vendors because we both have the Microsoft agreement for all of Europe. So we now think about it we're in Southern Europe with Greece or in U.K., Ireland and we're going to just keep going to the middle of Europe on that side. On the macro side, we had a Board meeting this week. It came up. We talked about macro environment. With -- I know it sounds -- we're $2 billion, we're still so extremely small in our market. And the companies that we carry in the pockets of -- that we go after resellers, we just haven't seen it. I mean, of course, it's going to be on the fringes, but nothing really impact. We're not in the hardware business. So logistics isn't an issue, just like it wasn't during COVID. So we just haven't seen it. And I think I say that a lot, we're still that small.
Vincent Colicchio: VAS data was good to you, I believe, in the year ago period. Does that pipeline there remains substantial?
Dale Foster: It does. And as the people that have been on this call before, I mean, it's just going to remain lumpy because the deals are so large in size. A lot of it is a waiting game with data centers being built. That data is known for delivering data to AI engines and LLMs very quickly. That's their claim. And they have less than 100 customers worldwide. So it's going to be lumpy, and we have a pretty strong pipeline with them already.
Vincent Colicchio: And has the gross billings momentum you experienced in the quarter carry through in the early Q3?
Dale Foster: We're just finishing up July. We'll have a strong July, some of it falling over from the quarter, which happens. But yes, we look at the percentage that is pretty traceable between first half and second half of the year. In our second half of the year is always stronger than our first half, and we have the same expectations for that. Fortinet is going to be a driver in Q3 and Q4. We'll talk about that again. But yes, we have good momentum going into it. .
Vincent Colicchio: And 1 for Matt. Could you remind us what the tax rate was so high in this quarter? .
Matthew Sullivan: Yes. So compared to Q2 of last year, our effective rate was higher this quarter than the Q2 of last year because there was a discrete item related to -- or there was a greater adjustment for a discrete item in Q2 of last year, for when restricted stock vests. So as we've had the run-up in the stock over the -- or stock value over the years, as awards vest from many years prior when the fair value was much lower the company receives a tax benefit. Now, as those much prior year rewards become fully vested and the awards are more closer -- the award fair value or more closer than to our value of the stock today, we have less of a discrete favorable impact on our taxes, which is, therefore, driving our tax rate to be more consistent with where we would expect it going forward.
Operator: Our next question comes from Bill Dezellem with Tieton Capital.
William Dezellem: I have a group of questions. First of all, Fortinet initially had restricted you from certain opportunities, and you referenced that at the analyst meeting. Would you update on where we sit today and what success you are seeing with Fortinet specific to that issue now?
Dale Foster: Yes. So we were restricted until May 4 of this year. I think it was the top 50 customers. They didn't want disruption. The goal with Fortinet has always been for net new business. And if you look at -- like I mentioned, our technology stack goes extremely wide. And if you look at a lot of our vendors, our vendors are extremely narrow as far as where they go into security stack. So for us, it's just a great fit. . So yes, it ended May, some share shift will happen. But it's -- and it's some of the customers, and what we like to say is let the customers choose where they want to acquire product from, some of it helped there. We have some really cool initiatives inside teams for generating net new business. And then, we're looking at where -- if you look at -- if you go to Fortinet's website and you look at their technology partnerships, there are so many that we have in common, the vendors we already had on our line card. So we're just doubling down on those. We're doing more events together and do truly cross-sellable stuff. So -- yes, you figure we had April and May, we still go touch the top 50. We're seeing some of the stuff come from those groups, and they'll continue the momentum.
William Dezellem: And Dale, that's, I guess, part of where I was going is relative to those top 50, are you seeing -- to what degree are you seeing them making choices to move to Climb?
Dale Foster: Yes. In region, in territory, and this goes back to what we are known for the company, right? We are a show up type of sales force with all of our -- and you got to meet a lot of them in New York, these sellers are in region in territory visiting their customers. They do not get that experience from any of our competitors, right? We don't do overlays in the company. So when you go and you talk to our field rep, that's the person that's going to deal with everything to do with Climb and what you're acquiring. So we're going to see more of it. As we get more in line with their field sellers as well, that's when good things happen. There's -- the bigger resellers out there, those are bid opportunities that will come up over the next couple of years. But really, it's hand-to-hand combat in all the regions.
William Dezellem: Great. So essentially, we should not think about this as a light switch turning on with these top 50 and more so that as the relationship with the Climb team builds, they're simply going to be -- it's just going to be a natural progression where they're going to get more business to the people that they see and like that are showing up every day.
Dale Foster: For sure. And it's the buying experience, right? I mean, if we can make it more streamlined, we're going to get more customers. If we are giving them products that they can take to their end users that show a differentiator or they can build more of the technology, and we're mostly security in that stack, that's another positive. But if you look at just the North American sales for Fortinet, and they put it out there, it's about $2.5 billion, and that all goes through 4 or 5 distributor partners. So it's a big, big pond. We're trying to focus on our resellers what they want in that stack and then try to grow it to buy more Fortinet products. .
William Dezellem: And speaking of a big pond, Dale, the Ivanti relationship -- we didn't talk a lot about that at the Analyst Meeting. Would you dive into that and go into some more detail how fast that it will ramp? And -- I mean to just ultimately, the size that you think this could be for line.
Dale Foster: Yes. And the reason we didn't get into it too much because we're just getting launched. We just had our launch plan with them in all the territories. But let me just back up to -- when I talk about onboarding vendors and how Charles and his team go through picking vendors, and we are just continuing to look upstream at larger vendors because if we're going to move the needle, we can't sign a vendor that we're going to get to $5 million to $10 million to $15 million in a couple of years, right? It's not going to matter. If it's cross-sellable and it's easy, part of adding to a purchase order, hey, that's great. And we'll look at that. But Ivanti, $950 plus million, great team. We get to meet the sea level guys a couple of weeks ago in New York with the Refresh program. So I only see good things, and we're getting more and more at bats with bigger vendors. We have another 1 we'll announce in a couple of weeks that is a $650 million vendor in the security stack space. So that we're going to continue to look at the bigger vendors that make sense for us that don't have the same go-to-market or technology that is -- it might be an overlap at 20%, but not more than 50%. But you'll see that relationship grow and grow, and Ivanti came to us and said, okay, you guys are out in the field. We're not getting that from our other channel players. And we're going to see more of that move over as well. As they've moved to, I don't know, how to put it nicely, cancel contracts with some of our competitors because they're just not getting out of what they want.
William Dezellem: And ultimately, with Ivanti, do you see this as a top 20, top 10, top 5, where do you see them ultimately falling?
Dale Foster: Top 20, definitely a top 20 vendor. And we -- like I said in the opening remarks, the Board meeting this week, went through some of the stuff, and we pulled some of the data, and I'll give the shareholders some of it. So in 2022, we had 48 vendors that made up about 90% of our of our adjusted gross billings. And today, 84 vendors make up 98%. So you can see we're much more diversified. Of course, I would like that number to be a little less because we're trying to continue to trim off vendors that are burning too much time of my core team and put them into our Climb Elevate group. But we're very diversified and then what makes up our -- we have 45 vendors that make -- that do more than $10 million in sales. And in 2022, we had only 22 vendors in 2022 that did $10 million or more. So better vendor portfolio that we're delivering and working on more focused vendors.
William Dezellem: Great. And then 1 additional question, please. What additional details do you have on the marketplace? I think you mentioned that Adobe will be first and additional details beyond what you had earlier this month in New York.
Dale Foster: So we've had a platform all along. And we've -- the issue with having a platform that you don't control is you don't control the road map of when you want a vendor added. So if I look at just back to the efficiency play, and I want a vendor added because it's going to save us so much time and money internally just transacting that vendor. I have to go into a road map of whoever I use as a platform and wait for that to come up. And even if we do some of the devs on ourselves, it still takes longer. So we're going to have kind of a hybrid. We're developing with the architecture that has already been pretty much set, and then, we'll have a committee as far as what we really need to that because we want the experience to be what the customer wants, right, how much of an online experience they can determine how much an individual in-person relationship they can determine we want to have both of those. And right now, they have the personal experience but we need 1 that's more online that they can get answers a lot faster than waiting for their teams. So it will be a continued investment that we have. This is the first step bringing somebody that Vishal has had a history with. I've known the companies the work for. So we'll announce this and continue as we go. But we'll have some of our stuff done in Q4 of this year.
Operator: We'll take our next question from Howard Group with Far Hope Capital.
Unknown Analyst: First, congratulations once again on a great growth in billings. I mean, you guys continue to do excellent work there. I just -- I have 2 questions. One, just a little follow-up on the SG&A line. Going up 26% year-over-year, looks kind of troubling, but obviously, we talked about that in Q1 because that was where the jump was and Q1 to Q2, you just -- you actually took it down from 3.7% to 3.5% of your gross billing. But kind of the target was always that 3% level, and it's kind of sticky here and going up a little bit Q1 to Q2. What do you see kind of as a percentage of gross billings, the SG&A? And what's your target over the rest of this year and into 2027? Can you get that down to 3%? Is that a reasonable target near term?
Dale Foster: So I want to say yes, but a couple of things will happen, and we'll call them out, right? If we have some bigger bad deals. And if I look -- and that went through the last 8 quarters, and we had a couple of times we dipped below 3%. And some of the times, a couple of quarters are just above 3%. So of course, that is the goal. But it's the catch 22 part of it is if I invest in some of the technology that will make me efficient for years to come, I want to do that now and not wait. So that is some of what's being turned up in my SG&A. So I'm trying to be a good steward of it now because I know that we focus quarterly, but I don't want to sacrifice something that if I could do and put in place now for an efficiency that's going to give me 2027 at a much better rate, and I don't have to pay those dollars then, I'll do that. So yes, that's our goal. And we know that our Q3 and Q4 are very strong. Our Adobe relationship really kicks off because it's the buying season. So we'll see if those numbers go up without putting extra resources on. We're making some cost-cutting measures inside. We'll talk about that in Q3 as well.
Matthew Sullivan: Just to reiterate what Dale was saying there. Historically, our effective margin grows from Q1 to Q4 of every year, ramps up from Q1 to Q4 of every year. There are fluctuations in it from given quarter-to-quarter. But if you -- and we've talked quite a bit about the large non-reoccurring at this point, vast transactions from Q2 of last year. And if you take the impact of that out, and take the impact of Interworks' contribution from Q2 of this year, who obviously wasn't in Q2 of last year, we still grew adjusted EBITDA at the strong double-digit organic growth or strong double-digit growth levels of gross billings and gross profit. So yes, there's a couple of things to peel back there and a couple of things to continue to tweak, but still a strong quarter when you take those pieces out of it.
William Dezellem: Right. So I guess the other -- the flip side of that, though, is from where you were like 3, 4 years ago, when I first started covering you guys, it you're adding so much more service to your offering. It's not just here's a product buy, your personal hands on. And if it does take 3.5% SG&A, is there a way of getting your gross margin on billings up from that 5% to 6% and capture it that way? Is that something you're looking at or something you think is possible? Or is this market just doesn't allow that?
Dale Foster: Yes, Howard. And I would say North America, the market doesn't allow it, right? And that's the big piece of it, and I talked about it in New York. And that is some of the acquisition plans that we have overseas, they have double digits to triple what we are, right? So if we're doing 5%, they're doing 10% to 15% because the competition is less. And if you look at the territory of selling in the U.S., we're looking at that as in Europe as territory selling, but it's typically in country. So the margins are higher, less competition. And like I said, in New York, if we can mimic our size in the U.S., in Europe and beyond, we can move that because if we look at the margins, it's the contribution of my solutions team is 11%, 12%. It makes a big impact. It makes them look double the size. But the issue has always been, can we do it as efficiently in Europe and beyond as we do in the U.S., and that is what we're working on with our systems and platform, where we're cutting some of the costs out because we have been becoming more efficient. So -- can we -- if you asked me this a couple of years ago without the acquisitions and where we're targeting, I would have said, it's really tough to do. And now I'm going to change that and say, we can do that. And you'll see us on some of our acquisitions, look at the Greek side of things, the margin profile is much better. They're small, so that's why we need to grow that. But we'll -- I think we can move that number.
Unknown Analyst: Great. And my second question is on the M&A environment. And at the Investor Day, what I heard was you guys kind of are picking up the pace maybe on at least the evaluations and the targets and obviously increasing the size that you could do in an M&A. Can you comment on -- is that a correct interpretation? Or what do you see looking forward the rest of this year on your M&A target list and your ability to do bigger deals than you've done before?
Dale Foster: You were spot on, Howard. And then -- and this was -- this meeting that we had with the Board this week was really just for me to lay out the strategy for the next 3 to 5 years and making sure that the Board and I are aligned on where we're going. And we're not afraid if we want to take on some debt. But yes, those 2 things you said, we're accelerating the targets. We've had them all along, and like I've said in the past, I've got to get comfortable with that target because our business is a relationship business. And what's the relationship with their vendors, what's the relationship with their customers, how well are they like in the market, do they have a lot of the same philosophy as go-to-market and culture that we do. So it takes some time, but I've been working on them for the last 2 to 3 years. And now, we are at the point where we've got some really good targets, ones that we want to get accomplished. And we've got 2 that are very large that we can do. We're not going to be able to do them with cash, but we'll use the best form of capital to do that, and that's probably in the form of debt. .
Operator: At this time, there are no further questions in queue. I will now turn the meeting back to Dale Foster.
Dale Foster: Thank you, operator. Appreciate it, and thanks again for joining the call. I want to thank the Greater Climb team. And when we talk about relationships, we have to talk about it in the form of going to customers and going to our vendors. We're -- they're both our customers. Our teams are just doing a great job on both sides of that. We're halfway through 2026, a lot of momentum going into the second half, and we look to have a great year for 2026. So I appreciate it. Thank you, operator.
Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.
