A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) reported second-quarter 2026 revenue of $5.9 million, up from $1.2 million a year earlier, 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 increased to $2.5 million from $0.3 million and gross margin improved to 42.6% from 23.3%. Net loss narrowed to $7.3 million from $12.6 million.
The significant jump in deliveries and revenue underscores the growing demand for A2Z's AI-powered shopping carts, which are designed to enhance the in-store retail experience by providing personalized engagement and real-time data to retailers. The company had delivered 3,350 total units as of June 30 and said its year-to-date performance, backlog and visibility support its target of 10,000 deliveries by year-end 2026.
A2Z 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. The company also secured a $30 million credit line with Bank Leumi to support inventory and growth and is implementing cost-management initiatives expected to reduce annual operating expenses by approximately $7 million.
These developments are crucial for A2Z as it scales its operations to meet the increasing demand for smart cart technology. The company expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months and has 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog. This international expansion is a key milestone, as it diversifies revenue streams and validates the global appeal of the product.
The improved gross margin and narrowed net loss indicate that A2Z is moving toward profitability as it achieves economies of scale. The cost-management initiatives, which are expected to reduce operating expenses by $7 million annually, will further enhance the company's financial health. The $30 million credit line provides additional financial flexibility to support inventory and growth initiatives.
Industry analysts view the smart cart market as a growing segment within retail technology, with potential for widespread adoption as retailers seek to improve customer experience and gather actionable data. A2Z's focus on retail media and real-time shopper engagement positions it well to capitalize on this trend. The company's ability to deliver 10,000 units by the end of 2026 would represent a significant increase from its current run rate and could solidify its position as a leader in the space.
Investors and stakeholders are watching A2Z's progress closely, as the company's performance could have broader implications for the retail technology sector. The successful execution of its growth plans could lead to increased market share and potentially attract partnerships with major retail chains. The company's commitment to innovation and its strategic initiatives are likely to be key drivers of its future success.
For more information, visit the company's newsroom at https://ibn.fm/AZ.
