A2Z Cust2Mate Expands into Toy Retail with Large-Scale Smart Cart Deployments

Rhea-AI Summary

A2Z Cust2Mate (NASDAQ: AZ) announced purchase orders from Toys "R" Us Israel and The Red Pirate for a total of 2,000 smart carts with monthly fees paid over a 60-month term and a minimum contract value of $15 million, excluding additional retail media revenues. Deployment is scheduled to commence in Q3 2026. The agreement includes a revenue-share model: retailers retain part of in-cart media inventory while A2Z may sell the remainder to advertisers, enabling recurring hardware plus platform and retail-media monetization and shopper-insight capabilities.

Positive

• $15 million minimum contract value
• 2,000 smart carts ordered for scale deployment
• 60-month monthly-fee structure supports recurring revenue

Negative

• Deployment not scheduled until Q3 2026, delaying revenue recognition
• Both customers are Israeli retailers, concentrating initial deployments geographically
• Retailers retain part of in-cart media inventory under a revenue-share model, reducing direct ad inventory for A2Z

News Market Reaction

+1.95%

1 alert

+1.95% News Effect

On the day this news was published, AZ gained 1.95%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Minimum contract value: $15 million Smart carts ordered: 2,000 carts Contract duration: 60 months +5 more

8 metrics

Minimum contract value $15 million Toy retail smart cart orders over 60 months

Smart carts ordered 2,000 carts Toys "R" Us Israel and The Red Pirate orders

Contract duration 60 months Monthly fee term for toy retail deployments

Deployment start Q3 2026 Scheduled start for toy retail smart cart rollout

Share repurchase size $20 million Board-approved buyback program starting Jan 7, 2026

Public offering price $0.56 Debt securities prospectus supplement dated Sep 18, 2025

Underwriting discount $2,597,000.00 Debt securities prospectus supplement Sep 18, 2025

Aggregate proceeds $42,403,000.00 Proceeds before expenses from Sep 18, 2025 offering

Market Reality Check

Price: $7.06 Vol: Volume 1,186,129 is well ...

high vol

$7.06 Last Close

Volume Volume 1,186,129 is well above the 20-day average of 550,368, indicating elevated activity ahead of this expansion news. high

Technical Shares at $7.70 are trading below the 200-day MA of $8.12 and about 37.7% under the 52-week high of $12.36.

Peers on Argus

AZ shows a modest 0.26% gain, while key software peers are mixed: EGHT up 1.05% ...

AZ shows a modest 0.26% gain, while key software peers are mixed: EGHT up 1.05% but TRAK, BZAI, MTLS and LAW down between roughly 0.47% and 2.53%, suggesting a stock-specific reaction to the smart cart deployment news.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Share repurchase	Positive	+3.1%	Board-approved <b>$20M</b> buyback funded with existing cash.
Jan 05	Commercial rollout	Positive	+13.5%	Smart cart deployment with Migros targeting Q3 2026 and chain scaling.
Jan 02	Leadership change	Neutral	+4.9%	Chairman stepped down; CEO appointed Interim Chairman during search.
Dec 31	Conference participation	Positive	+1.2%	ICR and NRF 2026 participation to showcase Smart Cart platform.
Dec 11	Leadership hires	Positive	-4.5%	New heads of Sales Americas and Europe to drive global growth.

Pattern Detected

Recent operational and capital-markets announcements have generally seen positive price reactions, with one notable divergence on leadership expansion news.

Recent Company History

Over the past month, AZ has issued several developments including a $20 million share repurchase program effective Jan 7, 2026 and multiple smart cart commercialization updates, such as the Migros rollout targeted for Q3 2026. Governance changes included a chairman transition effective Dec 31, 2025. Leadership expansion in December 2025 preceded a negative reaction. Today’s toy-retail deployment news extends the same smart cart and retail media growth narrative.

Market Pulse Summary

This announcement adds a new vertical for AZ by deploying 2,000 smart carts in toy retail under a 60...

Analysis

This announcement adds a new vertical for AZ by deploying 2,000 smart carts in toy retail under a 60-month agreement with a minimum value of $15 million. It builds on earlier smart cart rollouts and a recent $20 million buyback, reinforcing a commercialization and capital-return narrative. Investors may watch execution of the Q3 2026 rollout and traction from in-cart retail media revenue sharing.

Key Terms

retail media, revenue share model, prospectus supplement, underwriting discount, +4 more

8 terms

retail media technical

"Through its Retail Media and digital engagement capabilities, the platform enables"

Retail media is the practice of retailers selling advertising space and promotional placements on their websites, apps, in-store screens and checkout areas, using their customer shopping data to target ads. It matters to investors because it creates a high-margin, recurring revenue stream for retailers—like a grocery store renting its endcap for featured products—and can boost profit and valuation by turning customer traffic into advertising sales.

revenue share model financial

"The parties will operate under a revenue share model for the income generated"

A revenue share model is a business arrangement where two or more parties split the money generated from sales or services according to a pre-agreed percentage rather than fixed fees. Investors care because it affects how quickly a company earns cash, how profits are divided, and how risks and incentives are aligned—like splitting a pizza so each partner’s slice grows only if the whole pizza sells more, which influences future returns and stability.

prospectus supplement regulatory

"Prospectus supplement summary: The filing discloses an offering with a public"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

underwriting discount financial

"public offering price shown as $0.56 and an underwriting discount/commissions figure"

The underwriting discount is the fee that investment banks or broker-dealers keep when they buy securities from an issuer and resell them to the public; it’s the difference between the price paid to the company and the public offering price, shown per share or as a percentage. It matters to investors because it reduces the cash the company actually raises and is a cost built into the deal—like a sales commission—so a larger discount can mean higher issuance costs, tighter returns for new investors, and a signal about how much effort underwriters must expend to sell the offering.

net tangible book value financial

"net tangible book value per share as of June 30, 2025 ($0.88 and $0.87 entries)"

Net tangible book value is the per-share value of a company if you take all its physical assets and cash, subtract what it owes, and ignore intangible items like patents or brand names. Think of it like the cash you’d split among owners if a business sold its furniture and buildings but not its reputation. Investors use it as a conservative benchmark to judge whether a stock is cheaply priced relative to hard, sellable assets.

warrant financial

"The document lists warrant-related disclosure items and various issuance expenses"

A warrant is a time-limited financial contract that gives its holder the right to buy a company's shares at a set price before a specified date, like a coupon that lets you purchase stock at a fixed discount for a limited time. It matters to investors because warrants offer leveraged exposure to a stock’s upside and can dilute existing shareholders if exercised, so they affect potential gains and the company’s outstanding share count.

form 6-k regulatory

"submitted a Form 6-K as a foreign private issuer to notify investors"

A Form 6-K is a report that companies listed in certain countries file to provide important updates, such as financial results, corporate changes, or other significant information, to regulators and investors. It functions like an official company update or news release, helping investors stay informed about developments that could affect their investment decisions.

424b5 regulatory

"[424B5] A2Z CUST2MATE SOLUTIONS CORP. Prospectus Supplement (Debt Securities)"

Form 424B5 is a final prospectus document filed with the SEC that delivers the definitive terms of a securities offering after a company’s registration statement becomes effective. It gives investors the concrete details they need — price, number of shares, intended use of proceeds, and updated risk information — much like a product label that lists exact specifications before you decide to buy. Investors use it to verify final deal terms and assess potential impact on their holdings.

AI-generated analysis. Not financial advice.

TORONTO, Jan. 12, 2026 /PRNewswire/ - A2Z Cust2Mate Solutions Corp (NASDAQ: AZ), a global leader in smart retail technology, today announced its expansion into the toy retail sector with purchase orders from Toys "R" Us Israel and The Red Pirate, two leading Israeli toy retail chains. The retailers have ordered a total of 2,000 A2Z Cust2Mate smart carts, paying monthly fees over a 60 month period, with a minimum contract value of $15 million, not including additional retail media revenues. Deployment is scheduled to commence Q3, 2026

This expansion into a new retail vertical highlights the power, breadth and versatility of the A2Z Cust2Mate platform as an in-store engagement and media solution. Through its Retail Media and digital engagement capabilities, the platform enables retailers and brands to interact with shoppers in real time, delivering personalized content, targeted offers, promotions, and brand messaging directly at the point of decision.

The A2Z Smart Cart transforms the in-store journey into a dynamic, service-driven experience that increases engagement, drives incremental sales, and strengthens customer satisfaction and loyalty. At the same time, the A2Z Cust2Mate platform provides deep, actionable insights into shopper behavior and campaign performance, allowing retailers and brands to continuously optimize in-store experiences and maximize revenue impact.

Under the agreement, Toys "R" Us Israel and The Red Pirate will retain a portion of the in-cart retail media inventory for their own promotional use, while the remainder will be available for A2Z Cust2Mate to be sold to advertisers and other platform-level monetization initiatives. The parties will operate under a revenue share model for the income generated from these advertisements.

"We are excited to expand into new retail segments, beginning with large-scale deployments in the toy retail sector with Toys 'R' Us Israel and The Red Pirate," said Gadi Graus, Chief Executive Officer of A2Z Cust2Mate. "This milestone proves that smart carts are not limited to a single category, they can fundamentally transform the in-store shopping experience across diverse retail sectors, turning physical stores into dynamic, connected environments where shopper decisions are influenced in meaningful and measurable ways."

About A2Z Cust2Mate Solutions Corp.

A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) creates innovative solutions for complex challenges that bring innovation, ease, excitement and value to retailers and shoppers. The company's flagship innovative smart cart solutions are transforming brick-and-mortar retail, bridging online and in-store shopping through interactive technology that guides and informs customers. Cust2Mate's AI-driven smart carts personalize every in-store journey, turning routine trips into engaging, rewarding experiences. They enable seamless in-cart scanning and payment, allowing shoppers to bypass checkout lines while receiving real-time customized offers and product recommendations. This enhanced customer experience boosts satisfaction and loyalty while helping retailers streamline operations and optimize merchandising through data-driven insights. The carts are equipped with multiple layers of security for accurate recognition and transaction integrity. Its modular, all-in-one detachable panels transform legacy shopping cart fleets into intelligent platforms that deliver a range of benefits.

For more information on A2Z Cust2Mate Solutions Corp. and its subsidiary, Cust2Mate Ltd., please visit: www.cust2mate.com

Forward Looking Statements

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "will", "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with the market for our products, the impact of geopolitical, economic, competitive and other factors affecting the Company and its operations, and other matters detailed in reports filed by the Company with the Securities and Exchange Commission.

View original content:https://www.prnewswire.com/news-releases/a2z-cust2mate-expands-into-toy-retail-with-large-scale-smart-cart-deployments-302658351.html

SOURCE A2Z Cust2Mate Solutions Corp.

FAQ

How many smart carts did A2Z Cust2Mate (AZ) sell to Toys "R" Us Israel and The Red Pirate?

The retailers ordered a total of 2,000 A2Z smart carts.

What is the contract value and term for A2Z Cust2Mate's (AZ) toy retail deal?

The agreements carry a minimum contract value of $15 million with monthly fees over a 60-month term.

When will A2Z Cust2Mate (AZ) begin deploying the smart carts for the Israeli toy chains?

Deployment is scheduled to commence in Q3 2026.

How will A2Z Cust2Mate (AZ) monetize in-cart advertising with Toys "R" Us Israel and The Red Pirate?

Retailers will retain a portion of in-cart media inventory and the remainder will be sold by A2Z under a revenue-share model.

Does the $15 million figure include retail media revenues for A2Z Cust2Mate (AZ)?

No; the $15 million minimum contract value excludes additional retail media revenues.