A2Z Reports Second Quarter 2026 Revenue of $5.9 Million
Rhea-AI Summary
A2Z Cust2Mate Solutions (NASDAQ: AZ) reported second quarter 2026 revenue of $5.9 million, up from $1.2 million a year earlier, driven by increased smart cart deliveries. Smart Cart revenue reached $4.41 million, up 80% sequentially, as unit deliveries rose to 950 carts from 500 in Q1, totaling 3,350 units delivered as of June 30.
Q2 gross profit was $2.5 million with gross margin of 42.6%, compared with $0.3 million and 23.3% last year. Operating loss was $7.6 million, while net loss narrowed to $7.3 million from $12.6 million. The company secured a $30 million credit line with Bank Leumi, brought a dedicated Chinese manufacturing facility online, and launched cost initiatives expected to cut annual operating expenses by about $7 million. A2Z targets 10,000 smart cart deliveries by year-end 2026 and projects second-half 2026 smart cart revenues of $25 million, weighted to Q4.
Positive
- Revenue $5.9m in Q2 2026, up from $1.2m
- Smart Cart revenue $4.41m, up 80% sequentially from $2.45m
- Gross margin improved to 42.6% from 23.3%
- Net loss narrowed to $7.3m from $12.6m
- Deliveries rose to 950 carts vs 500 in Q1
- New $30m credit line established with Bank Leumi
- Cost actions expected to cut annual opex by ~$7m
Negative
- Q2 operating loss widened to $7.6m from $6.8m
- Quarterly net loss remains high at $7.3m
- Accumulated losses increased to $153.4m
- Total equity attributable to shareholders fell to $64.8m from $78.0m
- Financial assets at fair value declined to $28.6m from $55.6m
News Explained
A2Z reports that its
Market Reaction – AZ
Following this news, AZ has gained 2.01%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $6.60.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 15 | Q1 earnings update | Positive | -12.5% | Revenue growth, backlog expansion, and credit facility approval were followed by a negative reaction. |
| May 15 | Q1 earnings report | Positive | -12.5% | Higher revenue, contracted backlog, deliveries, and credit facility approval preceded a negative reaction. |
| Apr 01 | FY2025 earnings report | Positive | +12.1% | Quarterly and annual revenue increased, with purchase-order and production progress disclosed. |
| Nov 13 | Q3 earnings report | Positive | +0.6% | Strong balance-sheet figures, a formal purchase order, and cart production progress were reported. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions averaged -3.07%, with both Q1 2026 earnings announcements followed by negative reactions despite reported growth.
Key Terms
warrant liabilities financial
non-controlling interests financial
comprehensive loss financial
continuing operations financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Delivery of Carts Nearly Doubled Sequentially
- Commenced Deliveries to New Supermarket Customer During the Second Quarter
- Successful Execution Underscores Confidence in 2026 Year-End Target of 10,000 Carts; 3,350 Total Units Delivered to Customers as of June 30, 2026
- Projected H2 2026 Smart Cart Revenues of
$25 Million - Dedicated Manufacturing Facility Brought Online in Q2 Significantly Increases Delivery Capacity
- Financing Facility Initiated with Bank Leumi for a
$30 Million - Cost Management Initiatives to be Completed in the Third Quarter will Reduce Operating Expenses by Approximately
$7 Million
Management to Host Conference Call at 5 PM ET Today
Second Quarter 2026 Highlights
(All comparisons made are against the prior-year period unless otherwise noted)
- Delivered 950 units in the second quarter, up from 500 in the first quarter.
- Total revenue increased to
$5.9 million $1.2 million $4.41 million 80% sequentially, from$2.45 million - Gross profit increased to
$2.5 million $0.3 million - Gross margin was
42.6% , compared to23.3% . - Net loss was
$7.3 million $12.6 million
Management Commentary
"Second quarter results demonstrated strong execution from both an operational and financial perspective," noted Gadi Graus, Chief Executive Officer of A2Z Cust2Mate. "We nearly doubled unit deliveries from first quarter levels, including to an important new customer. We also introduced our next-generation Connected In-Store Commerce Platform, representing a significant evolution of our technology architecture and positioning the Company to support enterprise-scale deployments, retail media and in-store intelligence. In addition, we closed a
"The new customer, HaStock, a leading home goods retail chain in
"In the second half of the year, we expect to accelerate shipments to several customers as a result of our dedicated Chinese mass manufacturing facility, which went online in the second quarter. In addition, there are several sales and marketing initiatives in process that provide considerable opportunities for expansion to
"During the quarter, we unveiled our next-generation Connected In-Store Commerce Platform, marking a significant evolution from a product-centric offering to a unified enterprise platform for modern retail. The platform connects shopper engagement, store operations, retail media and in-store intelligence through a scalable architecture designed for efficient manufacturing, large-scale deployment and chain-wide operations. The platform is designed to support retailers' digital transformation while creating new recurring revenue opportunities.
"We also are pleased to welcome Gadi Levin, our newly announced CFO, to the executive team. Gadi has decades of financial management experience and will be a huge asset as we scale the business. With his support, we are executing a corporate realignment, which is expected to reduce operating expenses by approximately
"The
"Looking ahead, the Company continues to work overseas with potential new clients, and we expect to see our smart carts in at least two retailers outside of
"During the second half of the year, we expect to deliver new carts to a number of customers and anticipate a meaningful sequential increase in deliveries in the third quarter, taking into consideration the September holiday calendar in
"Our year-to-date performance, backlog, and visibility support our confidence in achieving our target of 10,000 deliveries by year-end 2026, increasing to 19,000 scheduled deliveries by the end of 2027. These metrics are based on existing purchase orders and contracted backlog, with additional order activity representing potential upside."
Second Quarter Fiscal 2026 Results
(All comparisons made are against the prior-year period unless otherwise noted)
Revenue increased to
Gross profit increased to
Operating loss was
Net loss for the period was
Conference Call
Management will host a conference call on August 12, 2026, at 5 PM Eastern Time to discuss the company's second quarter financial results.
The conference call may be accessed by dialing 1-877-317-6789 (
About A2Z Cust2Mate Solutions Corp.
A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) makes in-store retail smarter by connecting retailers, brands, and shoppers at the Smart Cart. Cust2Mate transforms everyday shopping carts into AI-powered, connected commerce platforms that elevate the in-store experience, turning each visit into a seamless, personalized, and rewarding journey. The Smart Cart platform helps retailers and brands grow revenue through targeted retail media and real-time shopper engagement at the moment purchase decisions are made. It delivers actionable, real-time data that provides full visibility into in-store shopper behavior and decision-making. With its modular, state-of-the-art technology, Cust2Mate enables retailers to increase revenue, optimize store operations, and mitigate loss across their chains at scale.
For more information on A2Z Cust2Mate Solutions Corp. and its subsidiary, Cust2Mate Ltd., please visit www.cust2mate.com.
Cautionary Statement Regarding Forward-looking Statements
Matters discussed in this press release may contain forward-looking statements that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the Company's filings on EDGAR and with the SEC. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements contained in this announcement are made as of this date, and the company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein.
A2Z CUST2MATE SOLUTIONS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Unaudited)
(Expressed in Thousands of US Dollars, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||
Revenues | $ | 5,904 | $ | 1,160 | $ | 9,221 | $ | 2,707 | |||||||
Cost of revenues | 3,392 | 890 | 6,570 | 1,857 | |||||||||||
Gross profit | 2,512 | 270 | 2,651 | 850 | |||||||||||
Expenses: | |||||||||||||||
Research and development costs | $ | 3,991 | $ | 3,919 | $ | 6,921 | $ | 5,230 | |||||||
Sales and marketing costs | 2,676 | 828 | 4,870 | 1,256 | |||||||||||
General and administration expenses | 3,435 | 2,320 | 6,477 | 7,736 | |||||||||||
Operating loss | (7,590) | (6,797) | (15,617) | (13,372 | |||||||||||
Loss on revaluation of warrant Liabilities | - | (4,135) | - | (3,735 | |||||||||||
Financial income (expense), net | 254 | (223) | - | 187 | |||||||||||
Net loss for the period from continuing operations | (7,336) | (11,155) | (15,617) | (16,920 | |||||||||||
Net loss for the period from discontinued operations | - | (1,436) | - | (2,425 | |||||||||||
Net loss for the period | $ | (7,336) | $ | (12,591) | $ | (15,617) | $ | (19,345 | |||||||
Less: Net loss attributable to non-controlling interests | (179) | (76) | (388) | (408 | |||||||||||
Net loss attributable to controlling shareholders | (7,157) | (12,515) | (15,229) | (18,937 | |||||||||||
Net loss for the period | $ | (7,336) | $ | (12,591) | $ | (15,617) | $ | (19,345 | |||||||
Other comprehensive income | |||||||||||||||
Item that will not be reclassified to profit or loss: | |||||||||||||||
Adjustments arising from translating financial statements of foreign operations | 2,075 | (274) | 2,651 | 536 | |||||||||||
Other comprehensive income | 2,075 | (274) | 2,651 | 536 | |||||||||||
Total comprehensive loss for the period | (5,261) | (12,865) | (12,966) | (18,809 | |||||||||||
Less: Comprehensive loss attributable to non-controlling interests | (179) | (76) | (388) | (408 | |||||||||||
Comprehensive loss attributable to the Company's shareholders | (5,082) | (12,789) | (12,578) | (18,401 | |||||||||||
Total comprehensive loss for the period | $ | (5,261) | $ | (12,865) | $ | (12,966) | $ | (18,809 | |||||||
Basic and diluted loss per share from continuing operations | $ | (0.16) | $ | (0.31) | $ | (0.34) | $ | (0.48 | |||||||
Basic and diluted loss per share from discontinued operations | $ | - | $ | (0.04) | $ | - | $ | (0.07 | |||||||
Weighted average number of shares outstanding | 44,749,055 | 35,304,220 | 44,155,780 | 34,177,189 | |||||||||||
A2Z CUST2MATE SOLUTIONS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in Thousands of US Dollars, except per share data)
June 30, 2026 | December 31, 2025 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 14,782 | $ | 13,525 | ||||
Restricted cash | 3,875 | 384 | ||||||
Financial assets at fair value | 28,614 | 55,642 | ||||||
Inventories | 8,095 | 3,891 | ||||||
Trade receivables, net | 5,167 | 3,034 | ||||||
Other accounts receivable | 2,972 | 2,937 | ||||||
Total current assets | 63,505 | 79,413 | ||||||
Non-current assets | ||||||||
Intangible asset | 626 | 637 | ||||||
Long term financial assets at fair value | 342 | 333 | ||||||
Long-term trade receivables | 6,250 | 1,221 | ||||||
Property, equipment and right of use assets, net | 3,457 | 3,556 | ||||||
Total non-current assets | 10,675 | 5,747 | ||||||
Total Assets | $ | 74,180 | $ | 85,160 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Current portion of long-term loan | $ | 843 | $ | 9 | ||||
Lease liability | 865 | 819 | ||||||
Trade payables | 5,113 | 3,348 | ||||||
Other accounts payable | 1,627 | 2,200 | ||||||
Warrant Liability) | - | 576 | ||||||
Total current liabilities | 8,448 | 6,952 | ||||||
Non-current liabilities | ||||||||
Lease liability | 1,471 | 1,758 | ||||||
Long term loan | 1,374 | 29 | ||||||
Total non-current liabilities | 2,845 | 1,787 | ||||||
Total liabilities | 11,293 | 8,739 | ||||||
Equity | ||||||||
Share capital and additional paid in capital | 219,298 | 206,953 | ||||||
Warrant Reserve | 3,054 | 10,147 | ||||||
Accumulated other comprehensive income (loss) | 779 | (1,872) | ||||||
Reserve with respect to transactions with non-controlling interests | 927 | 927 | ||||||
Treasury stock | (5,820) | - | ||||||
Accumulated losses | (153,416) | (138,187) | ||||||
Total equity attributable to Company shareholders | 64,822 | 77,968 | ||||||
Non-controlling interests | (1,935) | (1,547) | ||||||
Total equity | 62,887 | 76,421 | ||||||
Total liabilities and equity | $ | 74,180 | $ | 85,160 | ||||
View original content:https://www.prnewswire.com/news-releases/a2z-reports-second-quarter-2026-revenue-of-5-9-million-302850045.html
SOURCE A2Z Cust2Mate Solutions Corp.