Key Highlights

  • A2Z Cust2Mate shares are trading down 4.48% at $5.97 versus a prior close of $6.25.
  • Third quarter Revenue was $10.9 million, up from $5.9 million in the second quarter.
  • The net loss narrowed to $6.6 million, or $0.15 per share.
  • Management expects 10,000 cumulative smart cart deliveries by year-end.
  • The Hedya Acquisition adds about $20 million of annual revenue.

A2Z Cust2Mate Solutions (NASDAQ:AZ) is trading down 4.48% at $5.97 after third quarter results that showed sharply higher revenue and a narrower loss. Revenue was $10.9 million, up from $5.9 million in the second quarter. Peer Daktronics (NASDAQ:DAKT) is trading down 1.86%.

Narrower Loss

The operating loss narrowed to $6.8 million from $7.6 million, and the net loss was $6.6 million, or $0.15 per share, versus $7.3 million, or $0.16 per share. An organizational realignment is on track to reach a full run rate of about $1.75 million in quarterly savings in the fourth quarter, or about $7 million annualized.

Smart Cart Deliveries

Cumulative smart cart deliveries reached 5,350. Management expects 10,000 cumulative deliveries by year-end 2026, which implies 4,650 in the fourth quarter, and about $25 million of second-half smart cart revenue excluding Hedya. The current Backlog alone supports at least 19,000 cumulative carts by the end of 2027, with no new orders assumed.

Hedya Acquisition

The Hedya acquisition closed in early October. Hedya generates about $20 million in annual revenue, is expected to add about $5 million in fourth quarter revenue and to be immediately accretive, with synergies beginning next year. The company paid about $8.4 million in cash, about $7.1 million of it funded by a bank term loan, and issued 833,333 restricted shares. Retail media should become a larger share of revenue.

Balance Sheet

The company ended the quarter with $30 million in treasury and $42.3 million in working capital, excluding Hedya. The stock trades in a 52-week range of $4.97 to $8.73.

Fourth Quarter Deliveries Decide the Next Move

The delivery target is steep. Investors will watch whether fourth quarter deliveries reach about 4,650 carts, whether second-half smart cart revenue lands near $25 million and how quickly Hedya contributes the expected $5 million.

Quarterly savings of about $1.75 million are another marker for the path to narrower losses.