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, as Smart Cart deliveries nearly doubled sequentially to 950 units from 500 in the first quarter. The company's 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, and an improved gross margin of 42.6% compared to 23.3% in the prior quarter. Net loss narrowed to $7.3 million from $12.6 million year-over-year.
As of June 30, A2Z had delivered a total of 3,350 units. The company's year-to-date performance, backlog, and visibility support its target of 10,000 deliveries by the end of 2026. A2Z projects $25 million in Smart Cart revenue for the second half of 2026, with a heavier weighting 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 to fund inventory and expansion initiatives. The company is also implementing cost-management measures expected to reduce annual operating expenses by approximately $7 million. These steps are designed to strengthen its financial position as it scales operations.
A2Z 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 results highlight the growing adoption of A2Z's Smart Cart technology, which transforms everyday shopping carts into AI-powered, connected commerce platforms. The platform enables retailers to engage shoppers in real-time, offer targeted retail media, and gather actionable data on in-store behavior, helping to increase revenue, optimize operations, and mitigate loss.
“Our second-quarter performance reflects strong momentum and operational execution,” said a company spokesperson. “The doubling of Smart Cart deliveries and improved margins underscore the value our technology brings to retailers. With increased manufacturing capacity and strategic financing, we are well-positioned to meet our year-end targets and expand our global footprint.”
The announcement comes as the retail technology sector sees increasing demand for solutions that bridge online and offline shopping experiences. A2Z's Smart Cart platform addresses this by providing a seamless, personalized shopping journey and delivering real-time data to retailers at the point of decision-making.
Investors and industry observers will be watching how A2Z capitalizes on its growing backlog and whether it can sustain its delivery pace. The company's focus on international markets and cost efficiency will be key factors in achieving its long-term goals.
For more information, visit the company's newsroom at https://ibn.fm/AZ.
