Cust2Mate (AZ) Q1 2026 earnings summary

Executive summary

• Transitioned from pilot programs to large-scale commercial deployments of Smart Cart and connected retail platform, positioning as a core technology layer in physical retail environments.

• Achieved breakout quarter with significant revenue growth and validation of platform in live retail settings, driving measurable economic impact for retailers.

• Revenue for Q1 2026 increased to $3.3M from $1.5M year-over-year, driven by smart cart segment growth.

• Major new contracts signed with Carrefour Israel, HaStock, Toys “R” Us Israel, and The Red Pirate, supporting future recurring revenue.

• Share repurchase program initiated, with $3.5M spent to repurchase 542,845 shares by March 31, 2026.

Financial highlights

• Q1 2026 revenue reached $3.3 million, up 114% year-over-year, driven by Smart Cart deployments.

• Gross profit for Q1 2026 was $139K, down from $580K in Q1 2025, as cost of revenues rose sharply.

• Multi-year contracted backlog exceeded $195 million, representing over 19,000 Smart Carts scheduled for deployment globally.

• Working capital stood at $63.3M as of March 31, 2026, with total available liquidity over $90 million including a new credit facility.

• Cash and cash equivalents at March 31, 2026 were $16.2M, up from $13.5M at year-end 2025.

Outlook and guidance

• Expect deployment activity and revenue to accelerate as manufacturing and operational infrastructure expands.

• Management expects continued revenue growth from new multi-year smart cart and retail media contracts.

• Backlog provides high visibility into future deployments, with all current contracted backlog expected to be deployed by end of 2027.

• Sufficient working capital for at least the next 12 months, with additional financing options available.

• Retail media revenues anticipated to scale geometrically as installed base grows, with significant incremental revenue potential.