A2Z Cust2Mate Posts $10.9 Million in Revenue and Delivers 2,000 Carts in Third Quarter
Key Facts
A2Z Cust2Mate reported revenue of $10.9 million in the third quarter of 2026, compared with $5.9 million in the second quarter and $1.5 million in the year-earlier period, attributing the increase to growth in smart-cart deliveries. The company said it delivered 2,000 carts during the quarter, compared with 950 in the previous quarter. Chief Executive Gadi Graus said quarterly deliveries exceeded the total for the first half and were spread across several customers. He added that the latest customers increased their orders after initial deployments. The company also said it had seen greater demand from existing and prospective customers following the launch of its new connected in-store commerce platform. A claim that revenue exceeded analyst estimates could not be verified from a reliable source.
Smart-cart revenue was $9.6 million in the third quarter, more than double the $4.4 million recorded in the second quarter. Total revenue for the nine months ended September 30 rose to $20.153 million from $4.254 million in the corresponding period of 2025. The company recorded gross profit of $3.656 million, compared with $526,000 a year earlier. But gross margin was 33.4%, down from 34.0% in the third quarter of 2025. A2Z attributed the sequential decline in margin to product mix, as shipments included older-generation carts with lower margins. It said it expects to use up the inventory of those models by year-end.
The operating loss narrowed to $6.8 million in the third quarter from $7.6 million in the second quarter, and the company said higher revenue contributed to the improvement. The net loss was $6.6 million, compared with $7.3 million in the previous quarter, but rose from $1.4 million in the third quarter of 2025. The company attributed the quarterly decline in net loss mainly to revenue growth. By contrast, cash used in operating activities totaled $33.393 million in the first nine months of 2026. The figure was $13.694 million in the corresponding period a year earlier, meaning cash use increased year over year. Cash and cash equivalents stood at $26.563 million on September 30, compared with $13.525 million on December 31, 2025.
A2Z completed its acquisition of Hedia in early October, after the third quarter ended on September 30, so the acquired company's revenue was not included in the quarter's results. A2Z described Hedia as a profitable in-store media company with annual revenue of about $20 million. It said the deal adds advertiser relationships and retail media capabilities to its advertising inventory and smart-cart technology. It also cited Hedia's retailer relationships and measurement capabilities. A2Z had a dedicated manufacturing facility that entered service in the second quarter, when the company said it had significantly increased delivery capacity. It also announced the closing of a $30 million credit line with Bank Leumi to support growth and finance inventory as cart deliveries expand.
The company forecast that fourth-quarter deliveries would exceed the total delivered in the first nine months of 2026. It maintained its target of generating at least $25 million in smart-cart revenue in the second half, excluding retail media revenue from that figure. In its statement, A2Z said it expects that "fourth-quarter deliveries will exceed our total deliveries in the first nine months of the year." It also reiterated its target of delivering a cumulative 10,000 carts by the end of 2026 and 19,000 by the end of 2027. It said those targets are based on existing orders, and that new orders could add growth opportunities. The company's shares closed at $6.14 on November 12, 2026, according to EL7 data.