Cust2Mate (AZ) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, increased to $2.7M from $2.4M year-over-year, driven by growth in both smart carts and precision metal parts segments.

• Net loss widened to $19.3M for the six months ended June 30, 2025, compared to $3.6M in the prior year, mainly due to higher R&D and G&A expenses, and a significant loss on warrant revaluation.

• Major business developments included a $30M equity raise, a $25M+ smart cart order from Trixo, and the sale of a subsidiary.

Financial highlights

• Gross profit for the six months ended June 30, 2025, was $850K, up from $409K year-over-year.

• Operating loss increased to $13.4M from $6.4M year-over-year.

• Loss on revaluation of warrant liability was $3.7M, compared to a $3.8M gain in the prior year.

• Cash and cash equivalents rose to $28.5M as of June 30, 2025, from $13.5M at year-end 2024.

• Working capital improved to $29.6M from $5.6M at December 31, 2024.

Outlook and guidance

• Management expects continued revenue growth from new and existing smart cart contracts, including a major rollout in Mexico and Central America starting Q1 2026.

• The company plans to shift toward a recurring revenue subscription model for smart carts, aiming for sustained revenue increases as the installed base grows.

• Sufficient liquidity is expected for at least the next 12 months following recent financings.