A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ), a provider of smart retail technology, reported third-quarter 2026 revenue of $10.9 million, a significant increase from $5.9 million in the preceding quarter and $1.5 million in the year-ago period. The surge was driven by record smart cart deliveries, with 2,000 units delivered during the quarter—exceeding total deliveries for the entire first half of 2026. This acceleration matters because it demonstrates the company's ability to scale production and meet growing demand for its AI-powered smart carts, which are central to its connected in-store commerce platform.
Gross profit rose to $3.7 million from $2.5 million sequentially, although gross margin declined to 33.4% from 42.6%. The margin compression reflects shipments of lower-margin, earlier-generation models. Operating loss narrowed to $6.8 million from $7.6 million, and net loss decreased to $6.6 million from $7.3 million. These improvements signal progress toward profitability as the company scales. The company reiterated its targets of 10,000 cumulative smart cart deliveries by year-end 2026 and 19,000 by year-end 2027, based on existing backlog, and maintained its expectation of at least $25 million in smart cart revenue for the second half of 2026, excluding retail media contributions.
In early October, A2Z completed its acquisition of Hedia, a profitable in-store retail media business generating approximately $20 million in annual revenue. This acquisition is strategically important because it adds a profitable revenue stream and enhances A2Z's retail media capabilities, complementing its smart cart technology. Management expects fourth-quarter smart cart deliveries to exceed the total delivered during the first nine months of 2026, which would mark a significant acceleration. For a deeper look at the company's Q3 performance, the full press release is available through https://ibn.fm/cM9P9.
The announcement underscores A2Z's momentum in transforming in-store retail through its connected commerce platform, which combines shopper engagement, retail media, data, and in-store intelligence. As retailers increasingly seek to monetize physical stores and capture real-time shopper data, A2Z's smart carts position it at the intersection of retail technology and retail media—two growing markets. The reiteration of delivery targets and the Hedia acquisition suggest the company is executing on its growth strategy. Investors can find the latest news and updates relating to AZ in the company's newsroom at https://ibn.fm/AZ.
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