Key Highlights

  • Total third-quarter Revenue was USD 10.9 million, up from USD 5.9 million in the second quarter, with smart cart revenue of USD 9.6 million against USD 4.4 million, management said on the call.
  • Deliveries reached 2,000 smart carts, up from 950 in the second quarter, taking cumulative deliveries to 5,350, and management still expects 10,000 by year end.
  • Net loss was USD 6.6 million, or USD 0.15 per share, versus USD 7.3 million, or USD 0.16, in the second quarter, while the operating loss narrowed to USD 6.8 million from USD 7.6 million.
  • Gross Margin fell to 33.4% from 42.6% in the prior quarter because lower-margin earlier-generation carts were delivered to one customer, with treasury of USD 30 million at quarter end.

Deliveries Double as Revenue Climbs Sequentially

A2Z Cust2Mate Solutions (NASDAQ:AZ) discussed third-quarter 2026 results on a call dated November 11, 2026. The company makes smart shopping carts for grocery and retail chains and sells retail media space on them. Management chose sequential comparisons, saying year-on-year figures are not meaningful because the Business has moved from start-up to commercial stage. Gross Profit was USD 3.7 million, up from USD 2.5 million, and management expects to work through remaining legacy cart inventory by year end, after which mix should shift to the new generation. Management said part of the benefit of its organizational realignment is already in these results, and it expects the full quarterly savings run rate of about USD 1.75 million in the fourth quarter.

Customers Expand Orders and a Retail Media Deal Closes

Management said deliveries were spread across more customers, with one pharmacy chain starting deliveries under an expanded commitment of 7,000 carts and a home goods chain adding 500 carts for a total of 3,050. It also described a new in-store retail media agreement. The company closed the purchase of an Israeli retail media business in early October, paying about USD 8.4 million in cash and issuing 833,000 restricted shares, and management expects about USD 5 million of fourth-quarter revenue from it. About USD 7.1 million of the cash price was funded by a bank term loan.

Guidance Needs 4,650 Carts in the Fourth Quarter

Reaching 10,000 by year end implies 4,650 deliveries in the fourth quarter, calculated from 5,350 delivered so far, more than double the third-quarter pace. Management also expects second-half smart cart revenue of about USD 25 million, excluding the acquired business, and 19,000 cumulative deliveries by the end of 2027 from current backlog. Hardware is recognized on delivery at USD 4,000 to USD 4,500 a cart while customers pay over time, so reported revenue can run ahead of cash. Borrowing under a bank Credit Facility reached USD 4.7 million by early November, and the realignment is expected to save about USD 7 million annualized.

Where Things Stand

It depends on execution. A2Z Cust2Mate Solutions (NASDAQ:AZ) showed momentum with doubled deliveries and revenue of USD 10.9 million, but it must deliver 4,650 carts in one quarter to hit 10,000, and gross margin slipped to 33.4%. Management said on the call that it is confident in the fourth-quarter step up, that two international retailers should deploy in the first quarter of 2027, and that a competitor exit could open opportunities. Watch fourth-quarter deliveries, cash conversion, margin as legacy carts clear and the integration of the acquired business.