8/12/2026

speaker
Operator
Conference Operator

Welcome to the A2Z Cust2Mate Solutions Corp. Second Quarter 2026 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone phone. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Simon Saravetsky, Investor Relations. Please go ahead.

speaker
Simon Saravetsky
Investor Relations

Thank you, operator. Before we begin, Please note that today's call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and strategies that could cause actual to differ materially from those projected. Please refer to our earnings release as well as our filings with the SEC for discussion of these risks. A replay of this call will be available shortly after its conclusion. With that, I'd like to turn the call over to our CEO, Mr. Gadi Graus, Chief Executive Officer of A2Z.

speaker
Gadi Graus
Chief Executive Officer

Thank you, Simon. Good afternoon and thank you for participating in today's call to discuss our second quarter progress and our business outlook. Our team executed well in the second quarter, resulting in sequential revenue growth of 78% and we continue to drive commercial adoption of our platform and smart card solutions. Key takeaways from the quarter included the strong positive momentum in our deliveries, which reached 950 smart cards, nearly doubling from first quarter levels and bringing to 3,350 the number of units that have been delivered to date. We brought an important new customer on board, Hastok, a 50-store home goods retail chain in Israel, and have already made a partial delivery to them. We also expanded our partnership with Super Sapir, a large and growing supermarket chain based in Israel with over 70 stores. Our dedicated manufacturing facility in China came online in the second quarter, significantly increasing our delivery capacity and shortening our lead times. We introduced our next generation connected in-store commerce platform. And we secured a $30 million line of credit with Bank Little Me to provide funding to support our future growth. These accomplishments demonstrate significant progress across our organization and underpin our confidence in delivering 10,000 smart cards by the end of this year and at least 19,000 by the end of 2027. Keeping in mind that the 19,000 is based only on our current orders and does not take into account additional new orders or increases from existing customers between now and the end of 2027. I'd like to spend a few moments reviewing our business proposition and the opportunity set. Our platform builds on our smart card technology to help retailers digitize the in-store shopping journey through connected shopper engagement, retail media, and operational intelligence. Shoppers benefit from a more convenient shopping experience, while retailers gain new tools to improve store operations, reduce checkout friction, strengthen loss prevention, and generate new retail media revenues. In the first half of this year, we divided smart cards to two retail customers. Yohananov, a major supermarket chain in Israel with over 45 stores nationwide, and Hastok, which, as I mentioned before, is a 50-store home goods retailer, the largest in Israel. Earlier this week we expanded our partnership with Super Sapir, a large and growing supermarket chain in Israel with over 70 stores. In light of their expansion and recent purchase of stores from Carrefour Israel, Super Sapir placed a follow-on order for 4,000 additional cards, bringing their total commitment to 7,000 units, with deliveries starting in the third quarter. Later in the second half, we will also be delivering to Toys R Us in Israel and the Red Pirate, two prominent toy retail chains. These wins have put us at an inflection point on the cusp of larger-scale rollouts. During the second half of 2026, we expect to grow our retail media revenues as we accelerate cart deliveries. As we scale the business, we have taken several actions to support future growth. First, and as I mentioned, our dedicated Chinese manufacturing facility came online in the second quarter and expands our capacity while reducing lead times and production costs. Next, we are in the process of rolling out our newly completed connected in-store commerce platform Marking a major evolution from a product-centric offering to a unified enterprise platform for modern retail. With this launch, we have restarted delivery of new cards to our largest customer, Yohananov, under their agreement to take 5,000 cards. We believe the new features will attract further interest from other potential customers. We expect to see our smart cards in at least two retailers outside of Israel within the next six months. Third, We are shifting our spending towards deployment, sales and marketing. Gadi Levine will speak more about this in a moment. And speaking of Gadi Levine, we are pleased to have Gadi take over the role of CFO. Gadi has significant experience with more than 25 years of executive financial leadership across publicly traded companies. I look forward to working closely with him. Gadi will also speak more about our new $30 million credit line with Bank Luomi. I would just like to say that we believe this represents an important vote of confidence in our business prospects, which we appreciate. To sum up, this was a strong quarter for us with deliveries up in line with our expectations and a path forward to continued growth. Now we'll turn the call to our CFO, Gadi Levine, to provide a fuller financial review. Gadi.

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Q2AZ 2026

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