A2Z Cust2Mate Solutions Corp. reported second quarter revenue of $5.9 million, up from $1.2 million in the prior-year period, as smart cart deliveries nearly doubled from first quarter levels.
The Nasdaq-listed company (ticker: AZ) develops smart shopping carts that combine self-checkout, personalized promotions, retail media and in-store analytics on a single platform. Its carts are currently deployed primarily with retailers in Israel, and the company said it expects its carts to reach at least two retailers outside of Israel within the next six months, with sales and marketing initiatives underway in Europe and the Americas.
Second quarter results
A2Z delivered 950 units in the second quarter, up from 500 in the first quarter, bringing total units delivered to 3,350 as of June 30. The company reaffirmed its target of 10,000 cart deliveries by year-end 2026, increasing to 19,000 scheduled deliveries by the end of 2027, based on existing purchase orders and contracted backlog.
Smart Cart revenue of $4.41 million rose 80 percent sequentially from $2.45 million in the first quarter. Gross profit increased to $2.5 million from $0.3 million a year ago, with gross margin improving to 42.6 percent from 23.3 percent, which the company attributed to economies of scale as it ramps up manufacturing.
Net loss narrowed to $7.3 million from $12.6 million in the prior-year quarter. Operating loss widened to $7.6 million from $6.8 million, primarily due to increased payroll costs. A corporate realignment expected to be completed in the third quarter is projected to reduce operating expenses by approximately $7 million annually.
“Second quarter results demonstrated strong execution from both an operational and financial perspective,” said Gadi Graus, CEO of A2Z Cust2Mate. “We nearly doubled unit deliveries from first quarter levels, including to an important new customer. We also introduced our next-generation Connected In-Store Commerce Platform, representing a significant evolution of our technology architecture and positioning the company to support enterprise-scale deployments, retail media and in-store intelligence.”
New customers and manufacturing capacity
During the quarter, A2Z began deliveries to HaStock, a home goods retail chain in Israel with more than 50 stores, which took delivery of roughly half of the 2,000 units it contracted. The company also announced an increased order from Super Sapir, a food retailer in Israel with more than 70 stores, for 4,000 additional units.
A dedicated mass manufacturing facility in China came online during the second quarter, which the company said significantly increases its delivery capacity heading into the second half of the year. A2Z also closed a $30 million credit line with Bank Leumi to fund inventory as it scales, and named Gadi Levin as CFO.
The company projects second half 2026 Smart Cart revenue of $25 million, weighted to the fourth quarter, and expects retail media revenue to grow as cart deliveries accelerate.
“During the second half of the year, we expect to deliver new carts to a number of customers and anticipate a meaningful sequential increase in deliveries in the third quarter, taking into consideration the September holiday calendar in Israel, followed by a major uptick in the fourth quarter,” Graus said.
A2Z Cust2Mate Solutions Corp. makes in-store retail smarter by connecting retailers, brands and shoppers at the smart cart. Its platform helps retailers grow revenue through targeted retail media and real-time shopper engagement while providing visibility into in-store shopper behavior.
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