A2Z Cust2Mate Reports Strong Q2 Results as Smart Cart Deliveries Nearly Double Sequentially

A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) reported second-quarter 2026 revenue of $5.9 million, a significant increase from $1.2 million in the same period last year, driven by a near doubling of Smart Cart deliveries sequentially. The company delivered 950 units in the second quarter, up from 500 in the first quarter, reflecting accelerating demand for its AI-powered shopping carts.

Smart Cart revenue rose 80% sequentially to $4.41 million, contributing to a gross profit of $2.5 million compared to $0.3 million in the prior-year quarter. Gross margin improved to 42.6% from 23.3%, indicating better cost management and economies of scale. The net loss narrowed to $7.3 million from $12.6 million, a positive trend as the company scales operations.

As of June 30, A2Z had delivered a total of 3,350 units. Management reiterated its target of 10,000 deliveries by year-end 2026, supported by year-to-date performance, backlog, and visibility. The company projects $25 million in Smart Cart revenue for the second half of 2026, weighted toward the fourth quarter, as its dedicated manufacturing facility in China increases delivery capacity.

To support this growth, A2Z secured a $30 million credit line with Bank Leumi, which will be used for inventory and general growth initiatives. Additionally, the company is implementing cost-management measures expected to reduce annual operating expenses by approximately $7 million.

Internationally, A2Z expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months. The company also reported 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog.

These results underscore the growing traction of smart cart technology in retail, as retailers seek to enhance the in-store shopping experience and gather real-time data. A2Z's Cust2Mate platform transforms standard shopping carts into connected commerce devices, enabling personalized engagement and targeted retail media at the point of purchase.

The company's ability to nearly double deliveries sequentially and improve margins suggests strong market acceptance. The increased revenue and narrowed losses indicate a path toward profitability as scale increases. The strategic investments in manufacturing capacity and cost controls position A2Z to capitalize on the expanding market for smart retail solutions.

Investors and industry observers will be watching whether the company can sustain this momentum and meet its ambitious delivery targets. With the retail sector increasingly focusing on digital transformation, A2Z's smart carts offer a tangible solution that bridges the gap between physical and digital shopping.

For more information, visit the full press release at https://ibn.fm/7DUs5.