A2Z Reports Third Quarter 2026 Revenue of $10.9 Million
PR Newswire
TORONTO, Nov. 11, 2026
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 | ||||
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SOURCE A2Z Cust2Mate Solutions Corp.
