A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) has reported second-quarter 2026 revenue of $5.9 million, a substantial increase from $1.2 million in the same period last year. The company's Smart Cart deliveries nearly doubled sequentially, reaching 950 units in Q2 compared to 500 in Q1. This growth in deliveries drove Smart Cart revenue up 80% sequentially to $4.41 million, contributing to a gross profit of $2.5 million, up from $0.3 million, and a gross margin improvement to 42.6% from 23.3%.
The company also narrowed its net loss to $7.3 million from $12.6 million year-over-year. As of June 30, A2Z had delivered a total of 3,350 units, and management expressed confidence in its target of 10,000 deliveries by the end of 2026, supported by year-to-date performance, backlog, and visibility.
“We are pleased with our second-quarter results, which reflect strong demand for our Smart Cart platform,” said a company spokesperson. “The near doubling of deliveries and improved margins demonstrate the scalability of our business model and the value we provide to retailers.”
Looking ahead, A2Z 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. 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.
The company anticipates that its Smart Carts will be deployed with at least two retailers outside Israel within the next six months. Furthermore, based on existing purchase orders and contracted backlog, A2Z has 19,000 deliveries scheduled by the end of 2027.
These developments are significant for the retail technology sector, as they signal the growing adoption of AI-powered smart carts in physical stores. Retailers are increasingly looking for ways to enhance the in-store shopping experience, gather real-time data, and increase revenue through targeted retail media. A2Z's Cust2Mate platform aims to meet these needs by transforming standard shopping carts into connected commerce devices that engage shoppers at the moment of purchase decisions.
The company's improved financial performance and strategic initiatives position it well for continued growth. The new credit line and cost reductions provide financial flexibility, while the expansion into international markets could open up new revenue streams. For industry observers, A2Z's progress is a positive indicator for the broader adoption of smart cart technology, which has the potential to reshape in-store retail operations.
For more information on A2Z Cust2Mate Solutions Corp., visit the company's newsroom at https://ibn.fm/AZ.
