A2Z Cust2Mate Solutions Corp. (NASDAQ: AZ) announced a new contract with Toys "R" Us Israel and The Red Pirate for 2,000 smart carts, with a minimum contract value of $15 million. The agreement includes a revenue‑share model for in‑cart retail media, allowing the retailers to retain a portion of the advertising inventory while Cust2Mate captures the remainder, creating a recurring income stream beyond the hardware sale.
The deal marks the company’s first major expansion outside grocery and supermarket deployments, positioning its platform in the toy‑retail sector. By adding a new vertical, Cust2Mate broadens its addressable market and demonstrates the versatility of its technology. The $15 million contract, spread over 60 months, represents a significant multi‑year revenue source that could double the company’s current annual revenue of $7.46 million.
Cust2Mate’s historical financials show a pattern of net losses, with a comprehensive loss of $18.5 million for the year ended December 31 2024 and an accumulated deficit of $100 million. The new deal, therefore, is a critical step toward improving top‑line growth, but the company remains in a loss‑making phase. The contract’s revenue will be recognized beginning in the third quarter of 2026, so the impact on earnings will be gradual.
CEO Gadi Graus emphasized the technology’s adaptability, stating that “smart carts are not limited to a single category; they can transform the in‑store experience across diverse retail sectors.” He also noted that the current agreement builds on a prior retail‑media deal announced in September 2025, which secured $1.2 million in revenue for the first year of a similar partnership.
The deal faces headwinds such as geographic concentration—initial deployments are confined to Israel—and the fact that retailers retain a share of the media inventory, which limits Cust2Mate’s direct ad revenue. However, the recurring media component and the expansion into a new vertical provide tailwinds that could accelerate the company’s path to profitability as the platform scales and additional markets are entered.
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