A2Z Cust2Mate Solutions NASDAQ: AZ said its first-quarter 2026 results reflected a transition from pilot projects to larger commercial deployments of its smart shopping cart and connected retail platform, with management pointing to higher revenue, a larger contracted backlog and the start of retail media revenue as key milestones.
Chief Executive Officer Gadi Graus told investors that the company is “no longer in the pilot phase of smart retail” and is entering the early stages of scaled infrastructure deployment across physical retail. He described Cust2Mate as a platform intended to digitize in-store shopping through smart carts, self-scanning, personalized engagement, real-time retail intelligence and emerging retail media capabilities.
The company reported first-quarter revenue of $3.3 million, up 114% year over year. Graus said the increase was driven primarily by delivery of the company’s Smart Cart solution to retail stores and reflected early conversion of signed contracts into revenue.
Backlog and Deployments Move Into Focus
A2Z said it ended the quarter with more than 2,500 Smart Carts delivered, including approximately 500 units delivered during the first quarter. The company also expanded its multi-year contracted backlog to more than $195 million, representing over 19,000 Smart Carts scheduled for deployment globally.
Graus said the current contracted backlog is expected to be deployed by the end of 2027. He noted that revenue recognition is tied to deployment activity and delivery milestones, and that most contracts are recognized over roughly five years from deployment because payments are generally spread over multi-year contract terms.
“There always is a certain delay between announcing the contract and actually revenue recognition,” Graus said during the question-and-answer session. He added that deployments are expected to increase from quarter to quarter, though not in a perfectly linear fashion because timing depends on factors such as store readiness and retailer implementation schedules.
The CEO said deployments have already begun with Yochananof and are expected to increase over time. He also said deployment with Super Sapir is expected to begin soon.
Retailers Show Early Performance Gains
Management highlighted operating metrics from live retail deployments that it said are helping validate the platform. Graus said retailers using Cust2Mate carts are seeing approximately five additional items per transaction and about a 15% increase in basket value. He also said Smart Cart baskets are reaching 165% of manned checkout baskets and 275% of self-checkout baskets.
Daily utilization rates are above 95%, according to Graus, with Smart Cart usage reaching 100% during peak hours. The company has processed more than 1 million transactions through the platform.
Graus said those metrics are important because retailers are focused on return on investment as they consider broader deployments. In response to a question from Compass Point analyst Giuliano Bologna, he said data showing increased sales, shopper usage and the early contribution from retail media helps the company advance discussions with prospective customers.
Retail Media Begins Contributing Revenue
A2Z said the first quarter marked the start of revenue from retail media, a business line management described as a potentially significant new monetization layer. Graus said the company is seeking to create a real-time engagement and media platform within physical stores, reaching shoppers during the in-store purchasing journey.
StoneX analyst Dan Kurnos asked about retail media and referenced previously announced contracts with Under Armour and other brands. Graus said the company is in the early stages of building the business but is already seeing interest from brands and ecosystem partners seeking to engage shoppers at the point of purchase.
Graus said scale will be important to the opportunity. As the installed base grows, he said, the company expects more impressions, more shopper data and more engagement opportunities. He added that the $195 million contracted backlog does not include potential revenue from retail media or data services.
Manufacturing, Liquidity and Buyback Updates
Management said A2Z is expanding its operational infrastructure to support larger rollouts. Graus said the company’s production facility in China is coming online and is designed to support mass production capabilities. He said the company has been working with manufacturing partners on production processes, quality assurance protocols and operational readiness.
“From a manufacturing standpoint, we believe we are in a very strong position today to support scale as needed,” Graus said.
The company also established customer support centers in Panama and Bulgaria, which Graus said will help support multi-region deployment execution and customer service.
A2Z reported total liquidity and working capital of approximately $63.2 million at quarter end, including cash and cash equivalents. The company also secured a firm proposal for a $30 million contract-backed, non-dilutive bank credit facility. Graus said the facility is tied directly to customer contracts and deployment schedules and is intended to help fund manufacturing, inventory, logistics and other working capital needs as deployments scale.
Including the credit facility, Graus said total available liquidity is more than $90 million, or approximately $2 per share.
The company also provided an update on its share repurchase program. A2Z has authorized repurchases of up to $20 million of common shares. As of March 31, 2026, the company had repurchased 542,845 shares for approximately $3.5 million, and Graus said those shares will be canceled.
International Expansion Remains a Priority
Although Graus said the company’s current backlog is concentrated in Israel, he said A2Z is seeing growing international interest and that its pipeline is becoming increasingly global. He cited interest across categories and geographies, including grocery, toys, home goods and international retail markets.
In response to a pre-submitted investor question, Graus said the United States is a strategic market for the company. He said A2Z is focusing on expanding its presence and commercial activity there, including relationships with integrators that play an important role in large-scale U.S. retail technology deployments.
Graus closed the call by saying A2Z has built out infrastructure, research, deployment teams, international channels and operational hubs to support mass deployment. He said the company also continues to develop its retail media commercialization efforts.
About A2Z Cust2Mate Solutions NASDAQ: AZ
A2Z Smart Technologies Corp., a technology company, focuses on the development and commercialization of retail smart cart solutions for grocery stores and supermarkets in Israel and internationally. The company operates through three segments: Precision Metal Parts, Advanced Engineering, and Smart Carts. It offers Cust2Mate system, which incorporates a smart cart that automatically calculates the value of the customers purchases in their smart cart without having to unload and reload their purchases at a customer checkout point.
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