Cust2Mate (AZ) investor relations material

Executive summary

• Achieved sequential revenue growth of 78% in Q2 2026, with six-month revenue rising to $9.2M from $2.7M year-over-year, driven by Smart Cart deliveries and new customer wins.

• Delivered 950 Smart Carts in Q2, nearly doubling from Q1, with cumulative deliveries reaching 3,350 units by June 30, 2026.

• Major new contracts signed, including a $50M agreement with Carrefour Israel and a $21M agreement with HaStock, and expanded partnerships with Israeli retailers.

• Launched a dedicated manufacturing facility in China and a Retail Media Division, boosting capacity and expanding into new sectors.

• Organizational realignment underway, expected to reduce annual operating expenses by $7M and decrease headcount by 10%.

Financial highlights

• Q2 2026 revenue was $5.9M, up from $3.3M in Q1; six-month revenue reached $9.2M.

• Gross profit for the six months was $2.7M, with Q2 gross profit at $2.5M (42.6% margin), up from $100,000 (4.2% margin) in Q1.

• Operating loss for the six months was $15.6M; Q2 operating loss was $7.6M, improved from $8M in Q1.

• Net loss for the six months was $15.6M, with Q2 net loss at $7.3M ($0.16/share) vs. $8.3M ($0.18/share) in Q1.

• Cash and cash equivalents at June 30, 2026, were $14.8M; accumulated losses reached $153.4M.

Outlook and guidance

• Expect to deliver 10,000 Smart Carts by year-end 2026 and at least 19,000 by end of 2027, based on current contracts.

• Project at least $25M in revenue in the second half of 2026, primarily from Smart Carts, with retail media revenues expected to ramp up.

• Expansion into international markets planned, with deployments outside Israel expected by end of 2026.

• Anticipate sequential growth in cart deliveries over the next two quarters, with Q4 weighted due to seasonality.

• Company intends to grow rapidly and expand operations over the next 12 to 24 months, reducing working capital.