A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) has reported second-quarter 2026 revenue of $5.9 million, a significant increase from $1.2 million in the same period last year. The growth was driven by a near doubling of Smart Cart deliveries sequentially, from 500 units in the first quarter to 950 units in the second quarter. Smart Cart revenue rose 80% quarter-over-quarter to $4.41 million, contributing to a gross profit of $2.5 million, up from $0.3 million in the prior year. The company's gross margin improved markedly to 42.6% from 23.3%, while its net loss narrowed to $7.3 million from $12.6 million.
As of June 30, A2Z had delivered a cumulative total of 3,350 Smart Carts. The company's year-to-date performance, along with its backlog and visibility, supports its target of 10,000 deliveries by the end of 2026. Management projects $25 million in Smart Cart revenue for the second half of 2026, with a significant portion expected in the fourth quarter, as the dedicated manufacturing facility in China increases delivery capacity. To support this growth, A2Z has secured a $30 million credit line with Bank Leumi, which will be used to finance inventory and other growth initiatives. Additionally, the company is implementing cost-management measures expected to reduce annual operating expenses by approximately $7 million.
A2Z anticipates that its Smart Carts will be deployed with at least two retailers outside Israel within the next six months. The company also reports 19,000 deliveries scheduled by the end of 2027, based on existing purchase orders and contracted backlog. This expansion reflects the growing demand for AI-powered smart cart solutions that enhance the in-store shopping experience and provide retailers with valuable real-time data.
The Cust2Mate Smart Cart platform transforms everyday shopping carts into connected commerce devices, enabling retailers to engage shoppers at the moment of purchase decisions, increase revenue through targeted retail media, and optimize store operations. The platform's modular technology also helps mitigate loss across retail chains. As A2Z scales its operations and expands geographically, the company is poised to capitalize on the increasing adoption of smart retail technologies.
For more information, visit the company's newsroom at https://ibn.fm/AZ or view the full press release at https://ibn.fm/7DUs5.
