Delivery of Carts Nearly Doubled Sequentially
Commenced Deliveries to New Supermarket Customer During the Second Quarter
Successful Execution Underscores Confidence in 2026 Year-End Target of 10,000 Carts; 3,350 Total Units Delivered to Customers as of June 30, 2026
Projected H2 2026 Smart Cart Revenues of $25 Million, Weighted to the Fourth Quarter
Dedicated Manufacturing Facility Brought Online in Q2 Significantly Increases Delivery Capacity
Financing Facility Initiated with Bank Leumi for a $30 Million Credit Line
Cost Management Initiatives to be Completed in the Third Quarter will Reduce Operating Expenses by Approximately $7 Million Annually

Management to Host Conference Call at 5 PM ET Today

Second Quarter 2026 Highlights

(All comparisons made are against the prior-year period unless otherwise noted)

Delivered 950 units in the second quarter, up from 500 in the first quarter.
Total revenue increased to $5.9 million from $1.2 million; Smart Cart revenue of $4.41 million increased 80% sequentially, from $2.45 million.
Gross profit increased to $2.5 million, up from $0.3 million.
Gross margin was 42.6%, compared to 23.3%.
Net loss was $7.3 million, compared to a loss of $12.6 million.

TORONTO, Aug. 12, 2026 /PRNewswire/ -- A2Z Cust2Mate Solutions Corp. (NASDAQ:AZ) (the "Company" or "A2Z"), a global leader in smart retail technology, announced earlier today its financial results for the second quarter ended June 30, 2026.

Management Commentary

"Second quarter results demonstrated strong execution from both an operational and financial perspective," noted Gadi Graus, Chief Executive Officer of A2Z Cust2Mate. "We nearly doubled unit deliveries from first quarter levels, including to an important new customer. We also introduced our next-generation Connected In-Store Commerce Platform, representing a significant evolution of our technology architecture and positioning the Company to support enterprise-scale deployments, retail media and in-store intelligence. In addition, we closed a $30 million line of credit with Bank Leumi, which provides funding to support the company's growth.

"The new customer, HaStock, a leading home goods retail chain in Israel with over 50 stores nationwide, took delivery of roughly half of the 2,000 units they contracted, and we are pleased to add this well-known retailer to our client roster. In addition, we recently announced an increased order from Super Sapir, a large food retailer in Israel with over 70 stores, for 4,000 additional units.

"In the second half of the year, we expect to accelerate shipments to several customers as a result of our dedicated Chinese mass manufacturing facility, which went online in the second quarter. In addition, there are several sales and marketing initiatives in process that provide considerable opportunities for expansion to Europe and the Americas. As we increase deliveries, we are gaining the capability to capitalize on retail media, which we expect to be a long-term growth and profit driver for the Company.

"During the quarter, we unveiled our next-generation Connected In-Store Commerce Platform, marking a significant evolution from a product-centric offering to a unified enterprise platform for modern retail. The platform connects shopper engagement, store operations, retail media and in-store intelligence through a scalable architecture designed for efficient manufacturing, large-scale deployment and chain-wide operations. The platform is designed to support retailers' digital transformation while creating new recurring revenue opportunities.

"We also are pleased to welcome Gadi Levin, our newly announced CFO, to the executive team. Gadi has decades of financial management experience and will be a huge asset as we scale the business. With his support, we are executing a corporate realignment, which is expected to reduce operating expenses by approximately $7 million on an annual basis when completed. The initiative is designed to enhance our commercial expansion opportunities and sales efforts, while preserving our delivery capabilities.

"The $30 million credit line we closed with Bank Leumi will help fund inventory as we continue to scale our business and will support our future growth. It is also recognition of the substantial progress we are making in cart deliveries.

"Looking ahead, the Company continues to work overseas with potential new clients, and we expect to see our smart carts in at least two retailers outside of Israel in the next six months.

"During the second half of the year, we expect to deliver new carts to a number of customers and anticipate a meaningful sequential increase in deliveries in the third quarter, taking into consideration the September holiday calendar in Israel, followed by a major uptick in the fourth quarter. We also expect to grow our retail media revenues as we accelerate cart deliveries.

"Our year-to-date performance, backlog, and visibility support our confidence in achieving our target of 10,000 deliveries by year-end 2026, increasing to 19,000 scheduled deliveries by the end of 2027. These metrics are based on existing purchase orders and contracted backlog, with additional order activity representing potential upside."

Second Quarter Fiscal 2026 Results

(All comparisons made are against the prior-year period unless otherwise noted)

Revenue increased to $5.9 million, from $1.2 million in the prior year due to increased delivery of our new smart carts.

Gross profit increased to $2.5 million, from $0.3 million a year ago representing a gross margin of 42.6%, compared with 23.3% in the prior year quarter. The absolute increase is due to increased revenues and the improved margin is due to the achievement of economies of scale as we ramp up our manufacturing capabilities.

Operating loss was $7.6 million, compared to $6.8 million in the prior year quarter. The increased loss is primarily a result of increased payroll costs, which will now be reduced as part of our cost management initiatives.

Net loss for the period was $7.3 million compared to $12.6 million in the prior year quarter. The decreased net loss is primarily as a result of improved revenues and gross margin, offset by an increase in operating expenses. In the prior period, the Company incurred a net loss from discontinued operations of $1.4 million, which contributed to an increase in net loss in that period.

Conference Call

Management will host a conference call on August 12, 2026, at 5 PM Eastern Time to discuss the company's second quarter financial results.

The conference call may be accessed by dialing 1-877-317-6789 (U.S. toll-free), +972 3-374-1008 (Israel Tel Aviv), or 1-412-317-6789 (International). The live webcast of the call can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=s59Aphpy

About A2Z Cust2Mate Solutions 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.

A2Z CUST2MATE SOLUTIONS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited)

(Expressed in Thousands of US Dollars, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Revenues	$	5,904	$	1,160	$	9,221	$	2,707
Cost of revenues		3,392		890		6,570		1,857
Gross profit		2,512		270		2,651		850

Expenses:
Research and development costs	$	3,991	$	3,919	$	6,921	$	5,230
Sales and marketing costs		2,676		828		4,870		1,256
General and administration expenses		3,435		2,320		6,477		7,736
Operating loss		(7,590)		(6,797)		(15,617)		(13,372

Loss on revaluation of warrant Liabilities		-		(4,135)		-		(3,735
Financial income (expense), net		254		(223)		-		187
Net loss for the period from continuing operations		(7,336)		(11,155)		(15,617)		(16,920
Net loss for the period from discontinued operations		-		(1,436)		-		(2,425
Net loss for the period	$	(7,336)	$	(12,591)	$	(15,617)	$	(19,345

Less: Net loss attributable to non-controlling interests		(179)		(76)		(388)		(408
Net loss attributable to controlling shareholders		(7,157)		(12,515)		(15,229)		(18,937
Net loss for the period	$	(7,336)	$	(12,591)	$	(15,617)	$	(19,345
Other comprehensive income
Item that will not be reclassified to profit or loss:
Adjustments arising from translating financial statements of foreign operations		2,075		(274)		2,651		536
Other comprehensive income		2,075		(274)		2,651		536

Total comprehensive loss for the period		(5,261)		(12,865)		(12,966)		(18,809

Less: Comprehensive loss attributable to non-controlling interests		(179)		(76)		(388)		(408
Comprehensive loss attributable to the Company's shareholders		(5,082)		(12,789)		(12,578)		(18,401
Total comprehensive loss for the period	$	(5,261)	$	(12,865)	$	(12,966)	$	(18,809
Basic and diluted loss per share from continuing operations	$	(0.16)	$	(0.31)	$	(0.34)	$	(0.48
Basic and diluted loss per share from discontinued operations	$	-	$	(0.04)	$	-	$	(0.07

Weighted average number of shares outstanding		44,749,055		35,304,220		44,155,780		34,177,189

A2Z CUST2MATE SOLUTIONS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(Expressed in Thousands of US Dollars, except per share data)

	June 30, 2026		December 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	14,782	$	13,525
Restricted cash		3,875		384
Financial assets at fair value		28,614		55,642
Inventories		8,095		3,891
Trade receivables, net		5,167		3,034
Other accounts receivable		2,972		2,937
Total current assets		63,505		79,413
Non-current assets
Intangible asset		626		637
Long term financial assets at fair value		342		333
Long-term trade receivables		6,250		1,221
Property, equipment and right of use assets, net		3,457		3,556
Total non-current assets		10,675		5,747

Total Assets	$	74,180	$	85,160

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term loan	$	843	$	9
Lease liability		865		819
Trade payables		5,113		3,348
Other accounts payable		1,627		2,200
Warrant Liability)		-		576
Total current liabilities		8,448		6,952
Non-current liabilities
Lease liability		1,471		1,758
Long term loan		1,374		29
Total non-current liabilities		2,845		1,787
Total liabilities		11,293		8,739
Equity
Share capital and additional paid in capital		219,298		206,953
Warrant Reserve		3,054		10,147
Accumulated other comprehensive income (loss)		779		(1,872)
Reserve with respect to transactions with non-controlling interests		927		927
Treasury stock		(5,820)		-
Accumulated losses		(153,416)		(138,187)
Total equity attributable to Company shareholders		64,822		77,968
Non-controlling interests		(1,935)		(1,547)
Total equity		62,887		76,421
Total liabilities and equity	$	74,180	$	85,160

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SOURCE A2Z Cust2Mate Solutions Corp.