A2Z Smart Technologies Corp. (AZ): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of A2Z Smart Technologies Corp.'s (AZ) strategy, and honestly, what you're seeing is a classic, cash-intensive pivot from selling hardware to locking in recurring SaaS revenue with their smart carts. It's a fascinating setup: they're still burning cash, posting a net loss around $17.00 million as of December 2024, yet they're sitting on a war chest of about $70.4 million in cash as of Q3 2025, while their trailing twelve-month revenue is only about $7.06 Million USD late in 2025. This canvas lays out exactly how they plan to turn those high R&D costs and deployment expenses into long-term value through retailer contracts and retail media. Dive in below to see the full nine-block map of their current game plan.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Key Partnerships

You're looking at the backbone of A2Z Smart Technologies Corp. (AZ)'s scaling strategy-the partnerships that turn a great product into a deployed, revenue-generating asset. Honestly, for a company in a ramp-up phase, these alliances are everything, especially when you consider the cash burn rate mentioned in their Q1 2025 results.

Regional Channel Partners for International Expansion

The push into new territories is heavily reliant on local experts. Trixo is central to the Latin American strategy, which is clearly a priority given the recent order activity. This is where you see the recurring revenue model starting to lock in future income.

• Trixo: Regional channel partner for Latin America and Mexico expansion.
• Agreement signed in June 2025 for an initial order valued at over $25 million for 3,000 Cust2Mate 3.0 Smart Carts.
• Deployment is scheduled to begin in the first quarter of 2026.
• The recurring revenue model involves monthly charges per unit for at least 36 months.
• Trixo is also involved in a Central America deployment agreement with a retailer operating over 50 stores, targeting an early 2026 start in two flagship locations.

Retail IT Service Providers for US Deployment and Support

Scaling hardware deployment in the US requires boots on the ground for installation and ongoing service. Level 10, LLC, with over 20 years of experience in retail IT, is the designated partner for this heavy lifting.

• Level 10, LLC: Framework agreement signed in September 2024 for in-field installation, deployment, in-store and laboratory support, maintenance, help desk services, and warranty fulfillment across the United States.
• This partnership prepares A2Z Smart Technologies Corp. (AZ) to service significant rollouts anticipated in the coming months following advanced discussions with large US retailers.

Strategic Payment Processors for Integrated Transactions

The payment integration is key to the 'pick & go' value proposition and the recurring revenue stream. Nayax is the anchor here, providing the necessary on-cart payment infrastructure.

• Nayax: Strategic partnership formed in September 2024, integrating Nayax on-cart payment devices.
• A joint venture was announced with Nayax Ltd. in September 2024 to mutually promote the smart cart solution integrated with Nayax's payment technology.
• Nayax Capital will enable financing for the sale or lease of Cust2Mate smart carts globally, subject to individual terms and non-recourse to A2Z Smart Technologies Corp. (AZ).

Major Grocery Chain Deployments

These are the anchor customers that validate the technology at scale and drive the bulk of the near-term revenue recognition. The progress with Yochananof and the new order from Super Sapir are critical milestones for the 2025 fiscal year results.

Here's a quick look at the major customer order status as of late 2025:

Technology Suppliers for Smart Cart Component Manufacturing

While specific supplier names aren't detailed in the latest filings, the operational success relies on a steady supply chain for the hardware, particularly the modular components that allow legacy carts to be upgraded.

• The Cust2Mate 3.0 carts feature modular, all-in-one detachable panels that transform existing shopping cart fleets.
• The company's strong balance sheet, ending Q3 2025 with approximately $70.4 million in cash, cash equivalents, deposits and short-term investments, is intended to support the execution of growth plans and supply chain needs.

The market is pricing in this execution, evidenced by the EV/Sales multiple of 39.7x as of mid-2025. Finance: draft 13-week cash view by Friday.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Key Activities

You're looking at the core engine driving A2Z Smart Technologies Corp. (AZ) right now-the things they absolutely must do well to make this business model work, especially with the recent capital influx and order book growth you've seen.

Developing and enhancing Cust2Mate smart cart hardware and software

The fundamental activity is the continuous engineering of the Cust2Mate platform. This involves iterating on the hardware, such as the next-generation Cust2Mate 3.0 carts, and refining the embedded software that handles in-cart scanning and payment.

• The platform incorporates computer vision and an integrated scanner/payment system.
• The modular, all-in-one detachable panels transform legacy shopping cart fleets.

AI and Business Insights Division operations for data monetization

A2Z Smart Technologies Corp. established a dedicated AI and Business Insights Division in late 2025 to monetize the data generated by the deployed fleet. This activity is crucial for future high-margin revenue streams beyond the initial hardware sale and recurring cart fee.

The division is immediately focused on retail media advertising, evidenced by a landmark multi-year agreement with Toys 'R' Us Israel and The Red Pirate, which will leverage up to 5,000 smart carts at the Yochananof supermarket chain. This deal is structured to run through December 2028, with an option for a two-year extension. The guaranteed minimum revenue from this advertising component starts in January 2026 at $1.2 million.

Global deployment, installation, and maintenance of smart cart fleets

Execution on deployment is where the current revenue recognition and recurring revenue pipeline are built. A2Z Smart Technologies Corp. is moving from pilot to mass deployment across multiple regions.

The company reported securing total global orders of $80 million, comprising $55 million from Yochananof and $25 million from Central America/Latin America partners. As of the third quarter of 2025, A2Z Smart Technologies Corp. had received a formal purchase order from Yochananof and commenced deliveries of their next-generation smart carts, with meaningful revenue expected in the full-year 2025 financial statements.

Key deployment milestones and pipeline figures include:

The company's operational burn rate, based on the H1 2025 operating loss of $13.37 million, is approximately $2.23 million per month, which, against the Q3 2025 cash position of $70.4 million, suggests a runway of approximately 16 months.

Securing large, multi-year recurring revenue contracts with retailers

The recurring revenue stream is tied to a 3-year contract structure per cart deployed. The Latin American agreement with Trixo mandates recurring monthly charges for a minimum of 36 months. The Yochananof retail media deal is a multi-year commitment extending through December 2028. The company's Q1 2025 revenue was $1.97 million, showing 16% growth year-over-year, though the Q1 operating loss was $7.53 million.

Manufacturing precision metal parts for non-retail segments

A2Z Smart Technologies Corp. maintains operations across three segments: Smart Carts, Advanced Engineering, and Precision Metal Parts. The non-retail activities include manufacturing precision metal parts and developing the Fuel Tank Inertia Capsule System technology (FTICS) for the military and civilian automotive industry. The company also provides maintenance services for complex electronic systems for military and security markets.

The Trailing Twelve Months (TTM) revenue as of late 2025 was reported at $7.06 Million USD.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Key Resources

You're looking at the core assets A2Z Smart Technologies Corp. has on its books as of late 2025. These are the things that make their business model function, the stuff they own or control that creates value.

The balance sheet strength is notable. A2Z Cust2Mate Solutions ended the third quarter of 2025 with about $70.4 million in cash, cash equivalents, deposits and short-term investments. This strong liquidity position is supported by total assets that grew to $81.9 million by September 2025, with total shareholders' equity reported at $81.6 million at that same time.

The proprietary Cust2Mate smart cart technology and intellectual property form the foundation of their offering. This includes the AI-driven smart carts that bridge online and in-store shopping. The technology enables features like seamless in-cart scanning and payment, bypassing traditional checkout lines. The value of the data generated is a key resource, as seen in the agreement with Yochananof, where A2Z Cust2mate received the rights to monetize all retail media, data, and other digital assets generated by its smart carts deployed there.

Here are some specific operational metrics tied to that core technology:

• The average transaction time using the smart cart historically lasts approximately ~50 minutes.
• Each deployed smart cart is estimated to generate over 25,000 impressions per month.
• The retail media segment, which leverages this data, is expected to reach $170 billion globally by 2025.

The company also maintains advanced engineering and manufacturing capabilities, partly through the acquisition of Isramat Ltd. in February 2022 to vertically integrate production, and existing partnerships with manufacturers like Flex and AVCO Systems Integrations Ltd.

Revenue visibility is bolstered by long-term contracts structuring hardware and software fees. You can see this in recent deals:

The Trixo agreement, signed in June 2025, specifically uses a recurring 36-month structure for predictable income starting in 2026. The Super Sapir deal, announced in November 2025, involves a 60-month per-cart monthly fee covering hardware, software, and support.

The AI and computer vision algorithms are integral to the fraud mitigation and personalization value proposition. This technology allows for real-time customized offers and product recommendations to shoppers. The carts are equipped with multiple layers of security for accurate recognition and transaction integrity.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Value Propositions

Eliminating checkout lines for shoppers via in-cart scanning and payment is a core value proposition, evidenced by securing purchase orders for significant cart volumes, such as 3,000 smart carts from Super Sapir and 5,000 from Yochananof.

Providing retailers with real-time, in-store data and business insights is supported by the late 2025 launch of the dedicated AI and Business Insight Division. This division focuses on machine learning and analytics to deliver deeper store- and shopper-level insights.

New retail media revenue opportunities are a major driver, with Benchmark estimating potential annual retail media revenue ranging between $60 million and $300 million. The long-term EBITDA margins from this retail media component are projected to potentially exceed 50%. The company secured a milestone with Lego to add a commission-based revenue stream.

Reducing inventory shrinkage through multi-sensor AI and security features is positioned against a backdrop where U.S. retail shrinkage losses hit $112.1 billion in 2022, with an average shrink rate of 1.62%. The technology incorporates security scales and anti-fraud capabilities.

Transforming legacy carts with modular, detachable smart panels is being executed as the company has 11,000 total carts on order as of late 2025. The company reported total assets growing to $81.9 million by September 2025, up from $18.9 million at the end of 2024.

The financial scale of the current order book and revenue potential is detailed below:

The technology enables seamless in-cart scanning and payment, allowing shoppers to bypass checkout lines. The company's TTM revenue as of late 2025 was reported at €6.45 Million.

• The Cust2Mate system incorporates a smart cart that automatically calculates purchases.
• The platform includes built-in payment functionality.
• The company raised approximately $41.2 million in a public offering in September 2025 to fund mass manufacturing.
• The market capitalization as of November 2025 was $0.29 Billion USD.
• The company has a low debt-to-equity ratio of 0.03.

The modular panels transform legacy cart fleets into intelligent platforms. The AI division is also focused on fraud prevention.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Customer Relationships

You're looking at how A2Z Smart Technologies Corp. (AZ) locks in its retail partners, which is clearly centered on deep, multi-year relationships rather than one-off sales. This approach is designed to secure the recurring software revenue stream that underpins their valuation.

Dedicated account management for large-scale, enterprise retail clients

The relationship structure is heavily weighted toward major chains, evidenced by the significant commitments from key accounts. For instance, the strategic agreement with Yochananof, one of Israel's leading supermarket chains, involved receiving a formal purchase order and commencing deliveries of next-generation Cust2Mate smart carts, with meaningful revenue expected to be recognized in the annual financial statements for the year ending December 31, 2025. The company's treasury position as of September 30, 2025, stood at approximately $70.4 million in cash, cash equivalents, deposits, and short-term investments, providing the capital base to support these large-scale client engagements.

Long-term contractual commitments for software and maintenance services

A2Z Smart Technologies Corp. (AZ) structures deals to ensure multi-year revenue visibility, often tying hardware deployment to recurring software fees. This is key to the business model, as recurring 3-year contracts per cart deployed trigger the multi-year software revenues.

Key contractual terms illustrate this commitment:

• The Trixo order in June 2025 involves 3,000 Cust2Mate carts on a recurring 36-month structure fee, with predictable incomes starting in 2026.
• A retail media advertising agreement with Toys 'R' Us Israel and The Red Pirate extends through December 2028, with a possible two-year extension.
• Maintenance services for the Yochananof order, announced in 2023, covered 1300 Smart Carts over the following three years.

The financial structure supporting these commitments shows a total shareholders' equity of $81.6 million as of September 30, 2025.

High-touch support and in-field maintenance via service partners

The company established a dedicated maintenance and support division, A2Z MS, to handle in-field service, which also serves to gather customer usage insights. While the search results primarily highlight direct maintenance agreements, such as the one with Yochananof, the strategy involves internalizing support to better inform future product development. The company's 2025 Q3 results confirm operational momentum, which is directly tied to servicing these deployed units.

Collaborative pilot programs leading to chain-wide rollouts

Pilot programs are clearly a precursor to larger, chain-wide commitments. The success of these trials directly impacts the scale of subsequent orders. The company saw real-world traction from a pilot launch at the Franprix chain, which comprises over 600+ stores, in August 2024. This precedes the full rollout strategy seen in other deals, such as the agreement with a Central American retailer where an initial deployment in two flagship stores is set for early 2026, with plans for a full chain rollout.

Here's a look at the scale of major customer commitments and deployment timelines:

The company's trailing 12-month gross margin was 32.17%. It's defintely clear that conversion from pilot to contract is the main driver here.

Finance: draft 13-week cash view by Friday.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Channels

You're looking at how A2Z Smart Technologies Corp. gets its smart cart technology and recurring services into the hands of retailers. It's a mix of direct engagement for big wins and leveraging established local players for rollout efficiency.

Direct sales force targeting major international grocery chains

The direct sales effort has secured several large, multi-year contracts that form the backbone of the recurring revenue model. These deals represent the primary channel for large-scale hardware deployment and software integration with major international grocery chains.

• Secured a $30 million contract with Super Sapir (Israel) for 3,000 smart carts over a 60-month term.
• Secured a $55 million agreement with Yochananof for 5,000 carts.
• Yochananof deliveries commenced following a formal purchase order, with meaningful revenue expected in full-year 2025 results.
• A prior order with Casino Group in France involved 30,000 carts between the announcement date and 2026.
• A prior order with HEX 1011 for the Asia Pacific region involved 20,000 carts between the announcement date and 2025.

Regional distribution and channel partners (e.g., Trixo) for market access

Channel partners like Trixo are critical for accelerating market access, especially in new geographic areas, by providing local expertise for deployment and support.

A2Z Smart Technologies Corp. has established key partnerships to facilitate international expansion, particularly in Latin America and Central America.

The framework agreement with Trixo covers in-field installation, deployment, in-store and laboratory support, maintenance, help desk services, and warranty fulfillment in Mexico and Central America.

In-store deployment teams for hardware installation and integration

The physical installation and integration rely on a combination of A2Z's internal capabilities and the support structure provided by channel partners.

• For the Latin American expansion with Trixo, both companies agreed to immediately begin building a dedicated local team to facilitate rollout and support adoption.
• The recurring fee structure includes services like software and maintenance, which necessitates on-site support infrastructure.

Online and in-cart digital platform for retail media delivery

The digital platform is the key driver for the high-margin, recurring revenue stream, leveraging the installed hardware base.

The retail media platform monetizes the smart cart data through targeted advertising, which is a core component of the hybrid revenue approach.

The company reported an operating margin of -282.23% and a net margin of -400.75% as of Q3 2025, reflecting high costs associated with market expansion.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Customer Segments

You're looking at the core groups A2Z Smart Technologies Corp. (AZ) serves as of late 2025, based on their current contract pipeline and financial positioning.

Large international and regional supermarket/grocery store chains represent the primary volume driver for the Smart Carts segment.

The company's balance sheet as of September 30, 2025, shows approximately $70.4 million in cash, cash equivalents, deposits and short-term investments, with total shareholders' equity at $81.6 million. Trailing twelve-month revenue was reported at $7.46 million.

Retailers seeking to digitize the in-store shopping experience are motivated by consumer demand for better technology.

• A recent Cust2Mate survey indicated 61% of shoppers are ready to embrace smart shopping carts.
• A separate study suggested 77% of the 1,500 people surveyed are more willing to shop at a store offering smart cart technology.

Military and security sectors utilizing advanced engineering services form a distinct, historically established customer base for A2Z Smart Technologies Corp. (AZ).

• The company's business line includes providing maintenance services using advanced engineering capabilities to the Israeli military/security markets and governmental agencies in Israel.
• A2Z Smart Technologies Corp. previously announced a multi-year service and maintenance contract from the Israel Ministry of Internal Security on March 13, 2021.
• The company develops the Fuel Tank Inertia Capsule System technology for the military and civilian automotive industry.

Brands and advertisers seeking in-store retail media placement are a growing revenue focus, supported by new AI capabilities.

A2Z Cust2Mate secured a retail media advertising agreement with Toys 'R' Us Israel and The Red Pirate, covering up to 5,000 smart carts at the Yochananof supermarket chain. This deal guarantees minimum revenue of $1.2 million starting January 2026. Separately, a partnership with Lego involved 5,000 smart carts at Yochananof, adding a commission-based revenue stream. The launch of the AI and Business Insight Division on October 9, 2025, is intended to accelerate capabilities in tailored retail media for time-and-place promotions. The Super Sapir agreement also grants A2Z Cust2Mate the exclusive right to commercialize digital services, including advertising and media services.

Finance: draft 13-week cash view by Friday.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Cost Structure

You're looking at the cost side of the A2Z Smart Technologies Corp. (AZ) business, and honestly, it's dominated by investment in future capability and the heavy lifting of scaling physical deployments. The cost structure reflects a company still heavily in the growth and build-out phase, which naturally leads to significant operating expenses.

High R&D costs for AI, computer vision, and platform development are a core drain. This spending is necessary to keep the Cust2Mate system technologically ahead, especially as competitors emerge. For the estimated fiscal year ending December 31, 2024, Research and Development expenses were reported at $10,365 thousand (or $10.365 million). This R&D spend represented 6.7% of the estimated 2024 Revenue. The company continues to incur increased expenses in research and development as of the nine months ended September 30, 2025.

Significant deployment and build-out expenses for new contracts are another major cost driver. Installing the hardware and integrating the software platform into large retail chains requires upfront capital and labor. For instance, the operating loss for the first half of 2025 (H1 2025) reached $13.37 million, which implies a monthly cash burn of approximately $2.23 million based on those operating losses. The operating loss for the three months ended September 30, 2025, was $4.1 million, up from $2.6 million in the same period the prior year, reflecting these increased expenses. Also, build-out expenses were specifically cited as a factor in the Q1 2025 operating loss of $7.53 million.

Cost of Goods Sold (COGS) for smart cart hardware manufacturing is a variable cost that scales with deployment volume. A key cost management effort involved the Gen 3.0 cart, where the cost per cart was expected to be halved by 3Q 2024 due to better sourcing and internal parts development. To give you some context on the unit economics, an older estimate suggested the cost per cart might not reach $2,000 until 2024. The recurring revenue component, the subscription fee, is estimated at ~$150 dollars per cart monthly.

The cumulative effect of these costs is reflected in the bottom line. Operating expenses resulted in a net loss of around $17.00 million for the year ended December 31, 2024. The company also had an accumulated deficit of $100 million as of December 31, 2024. This persistent loss profile means the company must manage its cash runway carefully; based on the 2024 full-year net loss, the implied cash runway was approximately 25 months as of mid-2025, assuming the same spending rate.

Sales, General, and Administrative (SG&A) expenses are tied to the global expansion efforts. Increased general and administrative costs were noted as a reason for the company's losses in late 2024. The company operates in multiple segments, including Precision Metal Parts and Advanced Engineering, which also contribute to the overall overhead structure beyond the core Smart Carts division.

Here's a quick look at the key cost components based on the latest available annual and quarterly data:

The cost structure is heavily weighted toward future revenue generation, which you see in these figures:

• High R&D spend to maintain technology advantage in AI and computer vision.
• Significant build-out expenses driving quarterly operating losses in 2025.
• Hardware COGS being actively managed down through Gen 3.0 sourcing.
• SG&A supporting global expansion into regions like France and Asia Pacific.
• Historical G&A costs contributing to the $17.00 million net loss in 2024.

Finance: draft 13-week cash view by Friday.

A2Z Smart Technologies Corp. (AZ) - Canvas Business Model: Revenue Streams

You're looking at how A2Z Smart Technologies Corp. (AZ) actually brings in money, which is key to understanding their valuation, especially given the recent stock movement. Honestly, their revenue model is a blend of hardware sales and the stickier, recurring software side of things.

The overall picture for the Trailing Twelve Month (TTM) period ending in late 2025 shows revenue at approximately $7.06 Million USD. This is a slight increase from the 2024 TTM revenue of $6.77 Million USD, but still down from the $11.37 Million USD seen in 2023. Still, the focus is clearly shifting toward the recurring component.

Here's a breakdown of the four main ways A2Z Smart Technologies Corp. generates income:

• Recurring monthly subscription fees per deployed smart cart unit (SaaS model)
• Upfront revenue from the sale of Cust2Mate smart cart hardware
• Retail media and advertising revenue generated via the cart's screen
• Revenue from the Precision Metal Parts and Advanced Engineering segments

The Smart Carts segment is where the growth story is centered, combining immediate sales with long-term service contracts. For instance, the company secured a formal purchase order in Q3 2025 for next-generation Cust2Mate smart carts, with meaningful revenue expected to be recognized in the full-year 2025 results. This hardware sale is a big chunk of upfront cash.

The recurring revenue stream is tied to multi-year software agreements, often 3-year contracts per cart deployed. This is the Software as a Service (SaaS) element that analysts really focus on because it provides revenue visibility. To be fair, the company has also seen significant hardware orders, like an oversized June 2025 order valued at $25 million for 3,000 Cust2Mate 3.0 carts, which will definitely trigger those recurring software revenues.

The retail media piece is an emerging, high-margin opportunity. A2Z Smart Technologies Corp. leverages the unique data collected by the system-like shopping history and in-store location-to offer tailored, targeted advertising. This is reinforced by recent commercial wins.

Here's a look at the key revenue drivers and some associated figures we've seen recently:

The other two segments, Precision Metal Parts and Advanced Engineering, contribute to the total revenue but the growth narrative is clearly in the Smart Carts. The Advanced Engineering side also provides maintenance services for complex electronic systems and develops products for military and civilian markets. The company also has a revenue share component, expecting income from payments and third-party apps installed on the platform.

You should keep an eye on how much of that $7.06 Million USD TTM revenue is shifting from the upfront hardware sales to the recurring subscription and retail media streams; that transition is what justifies the premium valuation multiples the market is currently assigning. Finance: draft 13-week cash view by Friday.