A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) announced second-quarter 2026 revenue of $5.9 million, a significant increase from $1.2 million in the same period last year, as deliveries of its AI-powered Smart Carts nearly doubled sequentially to 950 units from 500 in the first quarter. The company, which provides in-store retail technology, said 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 a year earlier. Gross margin improved to 42.6% from 23.3%, while the net loss narrowed to $7.3 million from $12.6 million.
The results underscore the company’s accelerating momentum in the retail technology sector. As of June 30, A2Z had delivered a total of 3,350 units, and management reaffirmed its target of 10,000 deliveries by year-end 2026, citing year-to-date performance, backlog, and visibility. The company projects $25 million in Smart Cart revenue for the second half of 2026, with a weighting toward the fourth quarter, as its dedicated manufacturing facility in China increases delivery capacity.
To support this growth, A2Z has secured a $30 million credit line with Bank Leumi to finance inventory and expansion. Additionally, the company is implementing cost-management initiatives expected to reduce annual operating expenses by approximately $7 million. These steps are aimed at scaling operations while improving profitability.
A2Z also expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months, signaling international expansion. The company has 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog, indicating a robust pipeline.
The significance of these results lies in the rapid adoption of A2Z’s Smart Cart platform, which transforms traditional shopping carts into connected, AI-driven devices that enable personalized shopping experiences, targeted advertising, and real-time data analytics for retailers. As the retail industry increasingly focuses on enhancing in-store engagement and operational efficiency, A2Z is positioning itself as a key player in the growing smart retail market.
The company’s technology allows retailers to increase revenue through retail media and real-time shopper engagement at the point of purchase, while providing actionable insights into shopper behavior. With its modular design, the Smart Cart platform can be scaled across retail chains, helping to optimize store operations and mitigate loss.
Investors and industry observers will be watching to see if A2Z can sustain its growth trajectory and meet its ambitious delivery targets. The company’s ability to expand beyond its home market and manage costs will be critical in the coming quarters. For more information on A2Z Cust2Mate Solutions Corp., visit the company’s newsroom at https://ibn.fm/AZ.
