A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) announced its second-quarter 2026 financial results, revealing a substantial year-over-year revenue increase to $5.9 million from $1.2 million, driven by a near-doubling of Smart Cart deliveries sequentially. The company delivered 950 Smart Carts in the second quarter, up from 500 in the first quarter, contributing to a Smart Cart revenue of $4.41 million, an 80% sequential increase. Gross profit surged to $2.5 million from $0.3 million, and gross margin improved to 42.6% from 23.3%, reflecting operational efficiencies and scale benefits.
The net loss narrowed to $7.3 million from $12.6 million, indicating improved cost management. As of June 30, A2Z had delivered 3,350 total units, and the company reiterated its target of 10,000 deliveries by year-end 2026, supported by year-to-date performance, a strong backlog, and visibility into demand.
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 ramps up delivery capacity. The company has 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 expects its Smart Carts to be deployed with at least two retailers outside Israel within the next six months, marking a significant expansion beyond its home market. With 19,000 deliveries scheduled by the end of 2027 based on existing purchase orders and contracted backlog, A2Z is positioning itself for sustained growth in the retail technology sector.
For more details, visit the full press release at https://ibn.fm/7DUs5.
