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. The company's Smart Cart deliveries nearly doubled sequentially, reaching 950 units in Q2 compared to 500 in Q1. Smart Cart revenue rose 80% quarter-over-quarter to $4.41 million, while gross profit improved to $2.5 million from $0.3 million, and gross margin expanded to 42.6% from 23.3%. Net loss narrowed to $7.3 million from $12.6 million year-over-year.
The substantial revenue growth underscores the company's progress in commercializing its AI-powered smart cart technology, which transforms traditional shopping carts into connected commerce platforms. As of June 30, A2Z had delivered 3,350 total units, and management reiterated its target of 10,000 deliveries by the end of 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, with a heavier weighting in the fourth quarter, as its dedicated manufacturing facility in China ramps up delivery capacity.
To support this growth, A2Z secured a $30 million credit line with Bank Leumi, providing additional liquidity for inventory and expansion. The company is also implementing cost-management initiatives expected to reduce annual operating expenses by approximately $7 million, which should help improve profitability as revenue scales.
Looking ahead, A2Z expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months, marking a key milestone in its international expansion. The company has 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog, indicating strong future demand.
These results highlight the growing traction of smart cart technology in the retail sector, as retailers seek to enhance the in-store shopping experience, increase revenue through targeted retail media, and gain real-time data on shopper behavior. A2Z's ability to nearly double deliveries and improve margins sequentially demonstrates operational progress and market acceptance.
For more details, visit the full press release at https://ibn.fm/7DUs5.
