A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) reported second-quarter 2026 revenue of $5.9 million, up from $1.2 million in the same period last year, as Smart Cart deliveries increased to 950 units from 500 in the first quarter. The company's Smart Cart revenue rose 80% sequentially to $4.41 million, while gross profit improved to $2.5 million from $0.3 million, and gross margin expanded to 42.6% from 23.3%. Net loss narrowed to $7.3 million from $12.6 million, reflecting improved operational efficiency.
The significant uptick in deliveries and revenue underscores the growing adoption of A2Z's AI-powered Smart Cart technology, which transforms traditional shopping carts into interactive platforms that enhance the in-store experience. As of June 30, the company had delivered 3,350 total units, and its year-to-date performance, backlog, and visibility support its target of 10,000 deliveries by year-end 2026. This growth trajectory is critical as it demonstrates the company's ability to scale operations and meet increasing demand from retailers seeking to modernize their stores.
A2Z projects $25 million in Smart Cart revenue for the second half of 2026, weighted toward the fourth quarter, driven by the expansion of its dedicated manufacturing facility in China, which will increase delivery capacity. The company also secured a $30 million credit line with Bank Leumi to support inventory and growth initiatives. Additionally, A2Z is implementing cost-management measures expected to reduce annual operating expenses by approximately $7 million, positioning the company for improved profitability.
The company expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months, marking a significant step in its global expansion strategy. With 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog, A2Z is poised for sustained growth. The implications of these developments are substantial: the company is not only expanding its market presence but also solidifying its position as a leader in the retail technology space, offering solutions that increase revenue for retailers through targeted retail media and real-time shopper engagement.
For more details, see the full press release at https://ibn.fm/7DUs5. A2Z Cust2Mate Solutions Corp. is dedicated to making in-store retail smarter by connecting retailers, brands, and shoppers at the Smart Cart. The Cust2Mate platform helps retailers grow revenue and optimize store operations, providing actionable, real-time data on shopper behavior. For the latest news and updates on A2Z, visit the company's newsroom at https://ibn.fm/AZ.
