Revenue of $3.3 Million, Up 114%
Contracted Backlog Surpasses $195 Million, Underscoring Accelerating Global Deployment Momentum and Providing Strong Visibility into Near-term, Recurring Revenue
Management to Host Conference Call at 8:30 a.m. ET Today
TORONTO, May 15, 2026 /PRNewswire/ - A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) (the "Company" or "A2Z"), a global leader in smart retail technology, today announced its financial results for the first quarter ended March 31, 2026.
Mr. Gadi Graus, Chief Executive Officer of A2Z and Cust2Mate, commented, "Q1 2026 marked an important inflection point for the Company as we accelerated our transition from pilot validation to commercial deployment. During the quarter, we expanded our delivered base to more than 2,500 smart carts and grew our contracted backlog[1] to more than $195 million, representing over 19,000 carts scheduled for deployment globally by the end of 2027. We also began generating retail media revenues during the quarter, further advancing our evolution from a smart cart provider into a broader connected retail platform.
"We also continued to strengthen our manufacturing readiness and global operational infrastructure to support this contracted pipeline at scale, including expanded production capacity, enhanced supply chain execution and the addition of customer support centers in two new locations to improve deployment support and ongoing retailer service. As deployments scale, stronger shopper engagement and richer behavioral data are expanding monetization opportunities across our platform, creating a growth flywheel that we believe will further strengthen recurring revenue over time. Overall, our progress this quarter reinforces our confidence that our strategy is working.
"To support accelerating rollout activity and the increasing scale of customer deployments, we recently received approval for a $30 million contract-backed non-dilutive bank credit facility. This facility which will enhance our financial flexibility, aligns capital directly with contracted deployment schedules and reflects strong lender confidence in our business model and execution strategy. Importantly, it will enable us to efficiently support manufacturing, operations, inventory and working capital needs while maintaining a strong balance sheet as we enter the next phase of large-scale growth."
(1) Contracted backlog is a financial measure that has not been prepared in accordance with generally accepted accounting principles ("GAAP") and constitutes "non-GAAP financial measures" as defined by the SEC. Contracted
backlog is defined as the total estimate of the revenue the Company expects to realize in the future as a result of performing work on awarded contracts, less the amount of revenue the Company has previously recognized. The
Company monitors its backlog because we believe it is a forward-looking indicator of potential sales which can be helpful to investors in evaluating the performance of its business and identifying trends over time.
Recent Business Highlights
- Expanded contracted backlog to ~$195 million, representing more than 19,000 smart carts to be deployed by the end of 2027, underscoring strong global demand and long-term rollout visibility.
- Transitioned from pilot to scaled deployment phase, delivering ~500 smart carts in Q1 2026 and reaching approximately 2,500 units delivered globally across leading retail partners
- Advanced retail media monetization, beginning revenue generation in Q1 2026 and establishing in-store advertising as a new recurring revenue stream. Current Retail Media Brands include Lego, ToysRUs, and Under Armour
- Demonstrated strong retailer ROI and shopper adoption, including ~15% basket uplift, higher items per transaction and utilization rates above 95%
- Strengthened global operational and deployment infrastructure by expanding manufacturing capacity and establishing international hubs in Panama and Bulgaria to support scaled rollout execution
"Physical retail remains one of the largest under-digitized sectors of the global economy and is in the early stages of a significant structural transformation towards more intelligent, data-driven retail," concluded Graus. "To address a massive market opportunity, we have developed and are now deploying a retail technology layer that is fundamentally changing how stores operate, engage shoppers and unlock new monetization opportunities from the in-store experience. We have moved from proof-of-concept to deploying our platform at scale, and retailers are capturing measurable improvements in sales throughput, shopper engagement and operational efficiency that are driving improved store economics. Looking ahead, A2Z is exceptionally well-positioned with a strong balance sheet and ample access to capital to deliver on our large contracted backlog and pursue additional large-scale deployments globally to drive increasing long-term value for our shareholders."
Conference Call
Management will host a conference call on Friday, May 15, 2026 at 8:30 a.m. Eastern Time to discuss the company's 2026 first quarter financial results.
Anyone interested in participating should call 1-877-407-0784 if calling within the United States or 1-201-689-8560 if calling internationally. When asked, please reference confirmation code 13760502.
A replay will be available until Friday, May 29, 2026, which can be accessed by dialing 1-844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use passcode 13760502 to access the replay.
The call will also be available by webcast over the internet at: https://viavid.webcasts.com/starthere.jsp?ei=1762627&tp_key=3b4649d7cd.
About A2Z Smart Technologies Corp.
A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) makes in-store retail smarter by connecting retailers, brands, and shoppers at the Smart Cart. Cust2Mate transforms everyday shopping carts into AI-powered, connected commerce platforms that elevate the in-store experience, turning each visit into a seamless, personalized, and rewarding journey. The Smart Cart platform helps retailers and brands grow revenue through targeted retail media and real-time shopper engagement at the moment purchase decisions are made. It delivers actionable, real-time data that provides full visibility into in-store shopper behavior and decision-making. With its modular, state-of-the-art technology, Cust2Mate enables retailers to increase revenue, optimize store operations, and mitigate loss across their chains at scale.
For more information on A2Z Cust2Mate Solutions Corp. and its subsidiary, Cust2Mate Ltd., please visit www.cust2mate.com.
Cautionary Statement Regarding Forward-looking Statements
Matters discussed in this press release may contain forward-looking statements that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the Company's filings on EDGAR and with the SEC. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements contained in this announcement are made as of this date, and the company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein.
-- Tables Follow -
A2Z CUST2MATE SOLUTIONS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in Thousands of US Dollars, except per share data)
March 31,
2026 December 31,
2025
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $
16,208 $
13,525
Short-term deposits 473 384
Financial assets at fair value 40,664 55,642
Inventories 5,214 3,891
Trade receivables, net 3,776 3,034
Other accounts receivable 3,481 2,937
Total current assets 69,816 79,413
Non-current assets
Long term financial asset at fair value 340 333
Long term trade receivables 2,345 1,221
Property, equipment and right of use assets, net 3,599 3,556
Total non-current assets 6,284 5,110
Total Assets $
76,100 $
84,523
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short term loan and current portion of long-term loans $
8 $
9
Lease liability 846 819
Trade payables 4,096 3,348
Other accounts payable 1,625 2,200
Warrant Liability 576
Total current liabilities 6,575 6,952
Non-current liabilities
Lease liability 1,536 1,758
Long term loans 28 29
Deferred revenues 239
Total non-current liabilities 1,803 1,787
Total liabilities 8,378 8,739
Equity
Share capital of no par value - Authorized: unlimited at March 31, 2026 and December 31, 2025; Issued and outstanding: 44,545,009 shares at March
31, 2026 and 43,888,042 as of December 31, 2025, respectively 206,883 206,953
Warrant Reserve 10,147 10,147
Accumulated other comprehensive income (1,260) (1,872)
Reserve with respect to transactions with non-controlling interests 927 927
Accumulated losses (147,182) (138,788)
Total equity attributable to Company shareholders 69,515 77,367
Non-controlling interests (1,793) (1,583)
Total equity 67,722 75,784
Total liabilities and equity $
76,100 $
84,523
A2Z CUST2MATE SOLUTIONS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(Expressed in Thousands of US Dollars, except per share data)
For the period of three Months
Ended
March 31,
2026 2025
Revenues $
3,317 $
1,547
Cost of revenues 3,804 967
Gross profit (487) 580
Expenses:
Research and development costs $
2,619 $
1,311
Sales and marketing costs 2,194 428
General and administration expenses 3,042 5,416
Operating loss (8,342) (6,575)
(Loss) gain on revaluation of warrant liabilities 400
Financial income 160 449
Financial expenses (422) 39)
Net loss for the period from continuing operations (8,604) (5,765)
Net loss for the period from discontinuing operations (989)
Net loss for the period $
(8,604) $
(6,754)
Less: Net loss attributable to non-controlling interests (210) (332)
Net profit (loss) attributable to controlling shareholders (8,394) (6,422)
Net loss for the period $
(8,604) $
(6,754)
Other comprehensive income
Item that will not be reclassified to profit or loss:
Adjustments arising from translating financial statements of foreign operations 612 810
Other comprehensive income 612 810
Total comprehensive loss for the period $
(7,992) $
(5,944)
Less: Comprehensive loss attributable to non-controlling interests (210) (332)
Comprehensive loss attributable to the Company's shareholders (8,394) (6,422)
$
(8,604) $
(6,754)
Basic and diluted loss per share from continuing operations $
(0.19) $
(0.16)
Basic and diluted loss per share from discontinued operations
$ $
(0.03)
Weighted average number of shares outstanding 44,519,493 33,029,519
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SOURCE A2Z Cust2Mate Solutions Corp.
Company Contact Information: Gadi Graus, CEO and President, Gadi.g@a2zas.com, +972-73-3700544; Investor Contacts: Brett Maas, Managing Principal, Hayden IR, LLC, brett@haydenir.com, (646) 536-7331