A2Z Reports Third Quarter 2026 Revenue of $10.9 Million

Existing backlog supports the reiterated delivery targets, while lower-margin older carts weighed on third-quarter gross margin.

Rhea-AI Summary

A2Z Cust2Mate Solutions (NASDAQ: AZ) reported third-quarter 2026 revenue of $10.9 million, driven by increased smart cart deliveries.

Revenue rose from $5.9 million in the second quarter and $1.5 million a year earlier. Deliveries reached 2,000 carts, versus 950 sequentially, while smart cart revenue rose to $9.6 million from $4.4 million. Gross profit reached $3.7 million, but gross margin fell to 33.4% from 42.6% sequentially. Net loss was $6.6 million, versus $7.3 million sequentially and $1.4 million a year earlier.

A2Z reiterated targets of 10,000 cumulative cart deliveries by year-end 2026 and 19,000 by year-end 2027, based on existing backlog. It still expects at least $25 million in second-half 2026 smart cart revenue, excluding retail media. In early October, it completed the acquisition of Hedia, a profitable retail media business with approximately $20 million in annual revenue.

13 points · 0 major

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0 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue of $10.9 million rose from $5.9 million sequentially and $1.5 million a year earlier.
• Moderate pointThird-quarter gross profit of $3.7 million increased from $2.5 million sequentially and $0.5 million a year earlier.
• Moderate pointHedia acquisition closed in early October, adding a profitable retail media business with approximately $20 million annual revenue.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Delivery targets reiterated: 10,000 cumulative units by year-end 2026 and 19,000 by year-end 2027, based on existing backlog.
• Moderate point. Forward-looking: it has not happened yet and may not happen.At least $25 million in second-half 2026 smart cart revenue remains expected, excluding retail media.
• Moderate pointCash and equivalents increased to $26.563 million at September 30, 2026, from $13.525 million at year-end 2025.

7 minor points

• Minor pointSmart cart deliveries reached 2,000 in the third quarter, up from 950 in the second quarter.
• Minor pointSmart cart revenue of $9.6 million more than doubled from $4.4 million in the second quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter deliveries are expected to exceed total deliveries for the first nine months of 2026.
• Minor pointNew customers increased orders after initial deployment, with rollouts extending to additional locations.
• Minor pointNine-month revenue reached $20.153 million, versus $4.254 million a year earlier.
• Minor pointNine-month gross profit reached $6.307 million, versus $1.376 million a year earlier.
• Minor pointThird-quarter net financial income was $277,000, versus a $116,000 expense a year earlier.

Negative

• Moderate pointGross margin fell to 33.4%, from 42.6% sequentially and 34.0% a year earlier, reflecting lower-margin older carts.
• Moderate pointThird-quarter net loss was $6.6 million, narrowing from $7.3 million sequentially but widening from $1.4 million year-over-year.
• Moderate pointCurrent financial assets at fair value fell to $3.349 million, from $55.642 million at year-end 2025.
• Moderate pointTotal equity declined to $55.863 million at September 30, 2026, from $76.421 million at year-end 2025.
• Minor pointThird-quarter operating loss was $6.8 million, versus $7.6 million sequentially and $4.1 million a year earlier.

8 minor points

• Minor pointThird-quarter continuing-operations loss per share widened to $0.15, from $0.04 a year earlier.
• Minor pointThird-quarter research and development costs rose to $2.936 million, from $1.582 million a year earlier.
• Minor pointThird-quarter sales and marketing costs rose to $2.318 million, from $413,000 a year earlier.
• Minor pointThird-quarter general and administration expenses rose to $5.244 million, from $2.644 million a year earlier.
• Minor pointNine-month net loss widened to $22.182 million, from $20.744 million a year earlier.
• Minor pointNine-month operating loss widened to $22.459 million, from $17.485 million a year earlier.
• Minor pointCurrent loan obligations rose to $1.175 million at September 30, 2026, from $9,000 at year-end 2025.
• Minor pointLong-term loan obligations rose to $4.726 million at September 30, 2026, from $29,000 at year-end 2025.

News Explained

Earlier-generation cart inventory is the stated source of sequential margin pressure, and the company expects to work through it by year-end.

A2Z reported third-quarter results; its balance sheet lists cash and financial assets at fair value at both September 30, 2026, and December 31, 2025.

The company attributes the sequential gross-margin decline to product mix from shipments of earlier-generation carts and expects to work through that inventory by year-end.

Key Figures

Total revenue: $10.9 million Smart Cart revenue: $9.6 million Smart Cart deliveries: 2,000 units +5 more

Total revenue

$10.9 million

Third quarter 2026

Smart Cart revenue

$9.6 million

Third quarter 2026

Smart Cart deliveries

2,000 units

Third quarter 2026

Gross margin

33.4%

Third quarter 2026; compared with 42.6% in the second quarter

Net loss

$6.6 million

Third quarter 2026; narrowed from $7.3 million in the second quarter

Cumulative Smart Cart delivery target

10,000 units

By year-end 2026; reiterated target

Smart Cart revenue target

At least $25 million

Second half of 2026; excludes retail media

Hedia annual revenue

Approximately $20 million

Acquired in-store retail media business

Previous Earnings Reports

1 past event · Latest: Aug 12

Same Type 1 event

1. Aug 12

   Quarterly earnings

   24h Move

   +25.2%

   Q2 revenue and Smart Cart deliveries rose; management set 10,000-cart and $25 million second-half targets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

retail media

1 terms

retail media technical

"Acquisition of Hedia Enhances Ability to Monetize Retail Media"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Add on Google Not now

Delivered 2,000 Smart Carts in the Third Quarter; Doubling Second Quarter Volumes

Smart Cart Revenue of $9.6 Million More Than Doubled Sequentially

Acquisition of Hedia Enhances Ability to Monetize Retail Media

Reiterates Guidance of 10,000 Cumulative Smart Carts Delivered by Year-End 2026 and At Least $25 Million in Second Half Smart Cart Revenue

 Conference Call to be held at 5 PM ET Today

Third Quarter 2026 Highlights
(Year-on-year comparisons reflect the Company's transition from a startup to a scalable commercial business.)

• Delivered 2,000 units in the third quarter, up from 950 in the second quarter.
• Total revenue increased to $10.9 million from $5.9 million in the second quarter of 2026 and $1.5 million in the prior year quarter; Smart Cart revenue was $9.6 million, more than double the $4.4 million reported in the 2026 second quarter.
• Gross profit was $3.7 million, up from $2.5 million in the second quarter of 2026 and $0.5 million in the prior year quarter.
• Gross margin was 33.4%, compared to 42.6% in the second quarter of 2026 and 34.0% in the prior year quarter.
• Net loss was $6.6 million, compared to a loss of $7.3 million in the second quarter of 2026 and a loss of $1.4 million in the prior year quarter.

TORONTO, Nov. 11, 2026 /PRNewswire/ -- A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) (the "Company" or "A2Z"), a global leader in smart retail technology, announced  its financial results for the third quarter ended September 30, 2026.

Management Commentary

"We are pleased with our third quarter results, which reflect the positive momentum we are seeing for our product and our effective execution as we significantly ramped up smart cart deployments. Deliveries reached a record 2,000 units in the third quarter, surpassing our total deliveries for the entire first half of the year, and were spread across multiple customers. Additionally, we advanced the development of our retail media business with the strategic acquisition of Hedia, which closed in early October," noted Gadi Graus, Chief Executive Officer of A2Z Cust2Mate.  

"Importantly, our newest customers have increased their orders after initial deployment, clearly indicating the value of our product once in-store. Following the launch of our next generation Connected In-Store Commerce Platform, we have seen increased demand from existing and potential clients, and as pilot programs evolve into full blown launches, the excitement of shoppers and value to our customers is driving increased order activity and rollouts to additional locations. As we build our installed base, the cadence of our revenue is becoming more predictable, supporting our expectation for continued growth in 2027.

"In early October, we closed the acquisition of Hedia, a profitable in-store retail media business with approximately $20 million of annual revenue. Hedia brings scale, capabilities and key advertiser relationships to our retail media inventory, smart cart technology, retailer relationships and measurement capabilities. The complementary nature of Hedia's business to AZ's growing retail media inventory will accelerate the growth of our platform and enable us to provide the full retail media value chain to our customers. We view this as a source of high margin revenue as our base of deployed units grows, offering additional avenues to profitably build our business.

"We continue to pursue relationships with vendors outside of Israel. Additionally, we see international growth potential for A2Z as a U.S. competitor plans to exit what was a non-core business for them in mid-2027. This will give us the opportunity to showcase our next-generation technology and demonstrate the benefits of what we consider to be the most advanced platform available in the market.        

"Accelerating smart cart deployments, supported by our direct manufacturing capabilities and a sharper go-to-market focus following our organizational realignment, give us confidence in the fourth quarter sales step-up implied by our full year 2026 guidance.

"We expect fourth quarter deliveries to eclipse our total for the first nine months of the year and are reiterating our target of 10,000 cumulative unit deliveries by year end 2026 and 19,000 units by year end 2027. These targets are based on existing backlog, with new orders representing additional potential upside. We also continue to expect at least $25 million of smart cart revenue for the second half of 2026, which excludes any contribution from retail media."

Third Quarter Fiscal 2026 Results
(Year-on-year comparisons reflect the Company's transition from a startup to a scalable commercial business.)

Revenue increased to $10.9 million, up from $5.9 million in the second quarter of 2026 and $1.5 million in the prior year period due to an increase in smart cart deliveries. Gross profit increased to $3.7 million, from $2.5 million in the prior sequential quarter and $0.5 million a year ago. Gross margin was 33.4%, compared with 42.6% in the second quarter of 2026 and 34.0% in the prior year quarter. On a sequential basis, gross profit benefited from an increase in revenue, while gross margin declined due to product mix, reflecting shipments of earlier-generation smart carts, which carry lower margins. We expect to work through this inventory of earlier-generation models by the end of the year.

Operating loss was $6.8 million, compared to a loss of $7.6 million in the prior sequential quarter and a loss of $4.1 million in the prior year quarter. Operating loss narrowed sequentially due to  increased revenues.

Net loss for the period was $6.6 million compared to a loss of $7.3 million in the second quarter of 2026, and a loss of $1.4 million in the prior year quarter. The decrease in net loss compared to the second quarter of 2026 is primarily due to higher revenues.

Conference Call

Management will host a conference call on November 11, 2026, at 5 PM Eastern Time to discuss the company's third quarter financial results.

The conference call may be accessed by dialling 1-877-317-6789 (U.S. toll-free), 972 3-374-1008 (Israel Tel Aviv), or 1-412-317-6789 (International). The live webcast of the call can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=dpTlCFUn

About A2Z Cust2Mate Solutions Corp.

A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) is transforming in-store retail through a connected in-store commerce platform that brings together shopper engagement, retail media, data and in-store intelligence.

At the center of A2Z Cust2Mate's connected in-store commerce platform is its AI-powered Smart Cart, which creates a continuous digital connection with shoppers throughout the in-store journey. The platform enhances and simplifies shopping, enables retailers and brands to engage shoppers, delivers targeted retail media and offers at the point of decision, and captures real-time data and intelligence on in-store shopper behavior.

Retail media is a growing part of A2Z Cust2Mate's business, building on its digital in-store touchpoints, media inventory, shopper journey data and measurement capabilities. A2Z Cust2Mate brings together technology, data and commercial capabilities to create new ways for retailers and brands to engage shoppers, monetize the physical store and measure impact closer to the point of purchase.

A2Z Cust2Mate combines advanced software, AI, computer vision and purpose-built hardware in a modular platform designed for enterprise-scale deployment and chain-wide operations. The company works with retailers, brands and partners across multiple markets to bring connected, data-driven personalized experiences to physical stores and create new opportunities for revenue growth, retail media monetization, operational efficiency and loss mitigation.

For more information on A2Z Cust2Mate Solutions Corp. 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues		$	10,932			$	1,547			$	20,153			$	4,254
Cost of revenues			(7,276)				(1,021)				(13,846)				(2,878)
Gross profit			3,656				526				6,307				1,376
Expenses:
Research and development costs		$	(2,936)			$	(1,582)			$	(9,857)			$	(6,812)
Sales and marketing costs			(2,318)				(413)				(7,188)				(1,669)
General and administration expenses			(5,244)				(2,644)				(11,721)				(10,380)
Operating loss			(6,842)				(4,113)				(22,459)				(17,485)
Gain (loss) on revaluation of warrant liabilities			-				2,830				-				(905)
Financial income (expense), net			277				(116)				277				71
Net loss for the period from continuing operations			(6,565)				(1,399)				(22,182)				(18,319)
Net loss for the period from discontinued operations			-				-				-				(2,425)
Net loss for the period		$	(6,565)			$	(1,399)			$	(22,182)			$	(20,744)
Less: Net loss attributable to non-controlling interests			(102)				(94)				(490)				(503)
Net loss attributable to controlling shareholders			(6,463)				(1,305)				(21,692)				(20,241)
Net loss for the period		$	(6,565)			$	(1,399)			$	(22,182)			$	(20,744)
Other comprehensive income (loss)
Item that will not be reclassified to profit or loss:
Adjustments arising from translating financial statements of foreign operations			(1,775)				(1,296)				876				(760)
Other comprehensive income (loss)			(1,775)				(1,296)				876				(760)
Total comprehensive loss for the period			(8,340)				(2,695)				(21,306)				(21,504)
Less: Comprehensive loss attributable to non-controlling interests			(102)				(94)				(490)				(503)
Comprehensive loss attributable to the Company's shareholders			(8,238)				(2,601)				(20,816)				(21,001)
		$	(8,340)			$	(2,695)			$	(21,306)			$	(21,504)
Basic and diluted loss per share from continuing operations		$	(0.15)			$	(0.04)			$	(0.49)			$	(0.51)
Basic and diluted loss per share from discontinued operations		$	-			$	-			$	-			$	(0.07)
Weighted average number of shares outstanding			44,071,020				36,797,579				44,161,444				35,063,498

A2Z CUST2MATE SOLUTIONS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in Thousands of US Dollars, except per share data)

		September 30, 2026				December 31, 2025
ASSETS
Current assets
Cash and cash equivalents		$	26,563			$	13,525
Restricted cash			3,886				384
Financial assets at fair value (note 3)			3,349				55,642
Inventories			6,924				3,891
Trade receivables, net			7,700				3,034
Other accounts receivable			3,053				2,937
Total current assets			51,475				79,413
Non-current assets
Intangible asset			553				637
Long term restricted deposits			2,751				-
Long term financial assets at fair value			343				333
Long-term trade receivables			12,283				1,221
Property, equipment and right of use assets, net			3,621				3,556
Total non-current assets			19,551				5,747
Total Assets		$	71,026			$	85,160
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term loan		$	1,175			$	9
Lease liability			1,322				819
Trade payables			3,760				3,348
Other accounts payable			2,944				2,200
Warrant Liability			-				576
Total current liabilities			9,201				6,952
Non-current liabilities
Lease liability			1,236				1,758
Long term loan			4,726				29
Total non-current liabilities			5,962				1,787
Total liabilities			15,163				8,739
Equity
Share capital and additional paid in capital			214,794				206,953
Warrant Reserve			3,054				10,147
Accumulated other comprehensive loss			(996)				(1,872)
Reserve with respect to transactions with non-controlling interests			927				927
Accumulated losses			(159,879)				(138,187)
Total equity attributable to Company shareholders			57,900				77,968
Non-controlling interests			(2,037)				(1,547)
Total equity			55,863				76,421
Total liabilities and equity		$	71,026			$	85,160

View original content:https://www.prnewswire.com/news-releases/a2z-reports-third-quarter-2026-revenue-of-10-9-million-302936799.html

SOURCE A2Z Cust2Mate Solutions Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were A2Z Cust2Mate's third-quarter 2026 revenue and smart cart deliveries?

A2Z reported $10.9 million in revenue and delivered 2,000 smart carts in the third quarter of 2026. Revenue increased from $5.9 million in the second quarter and $1.5 million a year earlier. Smart cart deliveries increased from 950 in the second quarter.

What delivery and revenue guidance did A2Z reiterate?

A2Z reiterated targets of 10,000 cumulative smart cart deliveries by year-end 2026 and 19,000 by year-end 2027, based on existing backlog. The company also continues to expect at least $25 million in second-half 2026 smart cart revenue, excluding any retail media contribution.

Why did A2Z's third-quarter 2026 gross margin decline?

Gross margin declined because shipments included earlier-generation smart carts with lower margins. The company expects to work through that inventory by the end of 2026. Third-quarter gross margin was 33.4%, compared with 42.6% in the second quarter and 34.0% a year earlier.