Gross Billings Growth
Q4 gross billings increased 3% to $625.4M from $605.0M a year ago; Distribution segment gross billings rose 4% to $602.3M while Solutions remained flat at $23.1M.
Net Sales Acceleration
Q4 net sales grew 20% year-over-year to $193.8M (from $161.8M), driven by product mix shifts and organic growth from new and existing vendors.
Cash Position and Low Leverage
Cash and cash equivalents increased ~23% to $36.6M (from $29.8M); only $200k outstanding debt and $0 drawn on a $50M revolver, supporting liquidity and strategic optionality.
Strategic Vendor Wins — Fortinet and Darktrace
Launched partnership with Fortinet (Dec) with management targeting a rapid ramp (management cited a potential 18-month path to material contribution; referenced a 10% capture of a $2.5B addressable U.S. market as a $250M gross-billings example). Darktrace: in its second full quarter, 70 partners transacted over $13M in Q4 with meaningful quoted pipeline.
Accretive Acquisition — interworks.cloud
Acquired interworks.cloud (Greece) — adds ~600 cloud resellers/MSPs, Microsoft CSP capabilities and a Southeastern Europe footprint; management expects the deal to be immediately accretive to earnings and adjusted EBITDA and to enable cross-sell/synergy opportunities.
Organic Growth Momentum (ex-large prior-year transaction)
CFO noted that excluding a large Q4 2024 transaction, recurring and organic growth remained in the high-teens year-over-year for Q4; management said the sales team replaced a $50–$60M Citrix gap over the last three quarters.
Active M&A and Reinvestment Strategy
Board suspended the quarterly dividend to retain capital for organic initiatives and accelerated M&A; management expects continued M&A activity (management indicated plans for 1–2 acquisitions in 2026) and emphasized a disciplined, accretive approach.