AZ · A2Z Cust2Mate Solutions Corp.

A2Z Cust2Mate Solutions Corp. delivered Q1 2026 results showing revenue growth to $3.3 million from $1.5 million in the prior year, primarily fueled by the Smart Carts segment which surged to $2.5 million from $194 thousand, reflecting expanding adoption of its mobile self-checkout technology. However, Precision Metal Parts revenues declined to $867 thousand from $1.4 million. Gross profit margins compressed sharply to 4% from 37%, driven by elevated production and payroll costs in the Cust2Mate division amid scaling efforts. Operating expenses ballooned with R&D up 124% to $2.9 million, sales and marketing up over 400% to $2.2 million, and G&A down but still high at $3.0 million, resulting in an operating loss of $8.0 million versus $6.6 million last year. Net loss from continuing operations hit $8.3 million or $0.18 per share, compared to $5.8 million or $0.16. Balance sheet remains solid with cash at $16.2 million, supporting growth without immediate dilution. Management highlights multiple new contracts post-period including $50 million Carrefour Israel deal for 4,000 carts and $21 million HaStock agreement, signaling strong commercial momentum in retail media and subscriptions. Share repurchase of $3.5 million in shares underscores board confidence. No forward guidance provided, but financing proposal for $30 million line of credit positions company for scaled manufacturing.