Revenue growth remains highly inconsistent, swinging from a 96.4% increase in 2025Q4 to a 25.4% contraction in 2025Q3, while gross margins frequently fluctuate, hitting a negative 7.7% in 2025Q4.
| Sales/Revenue | 9.67M | 7.9M | 7.17M | 11.38M | 9.35M | 2.69M | 1.07M | 1.38M | 1.33M | 1.32M |
| Revenue Growth % | 29.93% | 10.26% | -37% | 21.64% | 248.27% | 151.4% | -22.83% | 4.3% | 0.3% | - |
| Cost of Goods Sold | 9.02M | 6.81M | 5.18M | 9.38M | 7.52M | 2.03M | 853K | 783K | 870K | 924K |
| COGS % of Revenue | - | 86.15% | 72.29% | 82.48% | 80.39% | 75.57% | 79.87% | 56.58% | 65.56% | 69.84% |
| Gross Profit | 653K | 1.09M | 1.99M | 1.99M | 1.83M | 656K | 215K | 601K | 457K | 399K |
| Gross Margin % | 6.75% | 13.85% | 27.71% | 17.52% | 19.61% | 24.43% | 20.13% | 43.42% | 34.44% | 30.16% |
| Gross Profit Growth % | - | -44.91% | -0.35% | 8.67% | 179.57% | 205.12% | -64.23% | 31.51% | 14.54% | - |
| Operating Expenses | 38.56M | 37.55M | 16.62M | 21.09M | 18.54M | 9.82M | 2.89M | 1.25M | 103.9K | 644K |
| OpEx % of Revenue | - | 475.26% | 231.96% | 185.39% | 198.22% | 365.66% | 270.69% | 90.68% | 7.83% | 48.68% |
| Selling, General & Admin | 24.55M | 26.16M | 9.89M | 14.35M | 12.84M | 6M | 2.22M | 623K | 103.9K | 593K |
| SG&A % of Revenue | - | 331.11% | 137.96% | 126.15% | 137.26% | 223.46% | 207.77% | 45.01% | 7.83% | 44.82% |
| Research & Development | 11.56M | 9.94M | 4.02M | 4.75M | 4.46M | 3.22M | 418K | 414K | 0 | 0 |
| R&D % of Revenue | - | 125.86% | 56.06% | 41.77% | 47.72% | 120% | 39.14% | 29.91% | - | - |
| Other Operating Expenses | 1000K | 1.45M | 2.72M | 1.99M | 1.24M | 596K | 254K | 218K | 0 | 0 |
| Operating Income | -37.91M | -36.46M | -14.64M | -19.09M | -16.7M | -9.16M | -2.68M | -654K | -103.9K | -245K |
| Operating Margin % | -391.98% | -461.41% | -204.24% | -167.87% | -178.61% | -341.23% | -250.56% | -47.25% | -7.83% | -18.52% |
| Operating Income Growth % | - | -149.08% | 23.35% | -14.33% | -82.3% | -242.38% | -309.17% | -529.42% | 57.59% | - |
| EBITDA | -36.95M | -35.64M | -13.77M | -18.07M | -15.92M | -8.84M | -2.45M | -449K | -20.9K | -169K |
| EBITDA Margin % | -382.03% | -451.09% | -192.21% | -158.84% | -170.21% | -329.27% | -229.56% | -32.44% | -1.58% | -12.77% |
| EBITDA Growth % | -108.47% | -158.76% | 23.77% | -13.52% | -80.02% | -260.6% | -446.05% | -2047.87% | 87.63% | - |
| D&A (Non-Cash Add-back) | 962K | 815K | 862K | 1.03M | 786K | 321K | 224.25K | 205K | 83K | 76K |
| EBIT | -38.63M | -35.87M | -19.22M | -18M | -18.25M | -40.13M | -5.92M | -2.45M | -109.19K | -245K |
| Net Interest Income | -593K | -185K | -47K | 23K | -97K | -14K | -32K | -109K | 0 | 0 |
| Interest Income | 160K | 0 | 0 | 85K | 0 | 0 | 75K | 0 | 0 | 130K |
| Interest Expense | 753K | 185K | 47K | 62K | 97K | 14K | 107K | 109K | 29 | 0 |
| Other Income/Expense | -667K | 397K | -4.63M | 1.04M | -1.65M | -30.99M | -3.26M | -1.9M | 5.25K | -130K |
| Pretax Income | -38.58M | -36.06M | -19.26M | -18.06M | -18.35M | -40.15M | -5.94M | -2.56M | -103.93K | -375K |
| Pretax Margin % | -398.87% | -456.39% | -268.81% | -158.74% | -196.2% | -1495.27% | -555.81% | -184.61% | -7.83% | -28.34% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 142K | 17K | 380K | 0 | -54K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | -0.35% | -0.29% | -14.87% | 0% | 14.4% |
| Net Income | -39.39M | -37.73M | -17M | -16.06M | -16.56M | -39.16M | -5.95M | -2.94M | -103.93K | -321K |
| Net Margin % | -407.26% | -477.6% | -237.18% | -141.2% | -177.06% | -1458.58% | -557.4% | -212.07% | -7.83% | -24.26% |
| Net Income Growth % | -67% | -122.02% | -5.82% | 3% | 57.72% | -557.87% | -102.83% | -2723.93% | 67.62% | - |
| Net Income (Continuing) | -38.58M | -36.06M | -19.26M | -18.06M | -18.35M | -40.29M | -5.95M | -2.94M | -109.22K | -321K |
| Discontinued Operations | -1000K | -2.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -829K | -1.55M | -7.07M | -4.8M | -2.4M | -607K | 520K | 577K | 0 | 0 |
| EPS (Diluted) | -0.88 | -1.03 | -0.80 | -0.43 | -0.69 | -1.73 | -0.36 | -0.21 | -0.14 | -0.24 |
| EPS Growth % | -26.33% | -28.75% | -86.05% | 37.68% | 60.12% | -380.56% | -71.43% | -50% | 41.67% | - |
| EPS (Basic) | - | -1.03 | -0.80 | -0.43 | -0.69 | -1.73 | -0.36 | -0.21 | -0.14 | -0.24 |
| Diluted Shares Outstanding | 44.52M | 36.96M | 21.37M | 37.63M | 27.68M | 23.34M | 16.76M | 13.49M | 739.15K | 1.35M |
| Basic Shares Outstanding | 44.52M | 36.96M | 21.37M | 37.63M | 27.68M | 23.34M | 16.76M | 13.49M | 739.15K | 1.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Unsustainable cash burn rate
According to the provided quarterly income statements, A2Z's revenue growth has exhibited extreme volatility, swinging from a 96.4% increase in 2025Q4 to a 25.4% contraction in 2025Q3, suggesting that the company's current business model remains highly sensitive to lumpy, non-recurring hardware project cycles rather than predictable recurring revenue.
The erratic top-line performance indicates that the company has yet to establish a stable commercial footprint in the retail automation space. Investors should monitor whether the recent growth spikes represent genuine market adoption or merely the timing of one-off hardware deliveries that fail to build long-term enterprise value.
As reported in financial statements, A2Z's gross margin profile is highly inconsistent, fluctuating between a peak of 36.0% in 2024Q3 and a negative 7.7% in 2025Q4, which highlights the significant difficulty in achieving manufacturing efficiencies while scaling its ruggedized smart cart hardware for global retail environments.
The inability to maintain a consistent, positive gross margin suggests that the company lacks the pricing power or supply chain maturity to offset the high variable costs of its physical products. This structural weakness implies that the firm is currently operating more as a low-margin hardware assembler than a high-margin software provider.
Based on A2Z's reported figures, the company's operating expenses, particularly R&D and SG&A, have consistently outpaced gross profit, resulting in an operating margin that reached a staggering -5.2% in 2025Q4, demonstrating a lack of operational leverage as the business attempts to scale its retail automation technology.
The massive disparity between revenue generation and operating costs suggests that the company is currently in a high-burn investment phase with no clear path to operational break-even. The persistent reliance on heavy R&D spending without corresponding margin improvement warrants further investigation into the scalability of the current cost structure.
As evidenced by the $11.7 million in stock-based compensation recorded in 2025Q4, A2Z's net income figures are significantly impacted by non-cash expenses, which complicates the assessment of true operational performance and suggests that equity dilution is being used to subsidize the company's ongoing, heavy cash burn.
The reliance on stock-based compensation to manage cash outflows may obscure the underlying economic reality of the business's profitability. Analysts should be cautious, as these non-cash charges do not alleviate the fundamental pressure on the company's limited cash reserves and its ongoing need for external financing.
Based on the provided financial data, the company's heavy reliance on hardware sales, coupled with a gross margin that frequently dips into negative territory, suggests that short-sellers may focus on the risk of inventory obsolescence and the potential for a liquidity crisis if retail adoption fails to accelerate.
The market's potential misclassification of A2Z as a software company ignores the significant capital intensity and supply chain risks inherent in its current model. If competitors successfully deploy software-only solutions that utilize existing retail infrastructure, A2Z's hardware-heavy approach may face significant headwinds, regardless of its engineering quality.
Quick answers to the most common questions about buying AZ stock.
For fiscal year 2025, A2Z Cust2Mate Solutions Corp. (AZ) reported total revenue of $7.9M. This represents a 497.2% increase compared to $1.3M in 2017.
A2Z Cust2Mate Solutions Corp. (AZ) reported a net loss of $37.7M for the fiscal year ending 2025.
A2Z Cust2Mate Solutions Corp. (AZ) reported an operating income of $-36.5M, resulting in an operating profit margin of -461.4%. This margin reflects the operational efficiency of the business before interest and taxes.
A2Z Cust2Mate Solutions Corp. (AZ) generated $1.1M in gross profit for the year, representing a gross profit margin of 13.8%. This demonstrates the company's core pricing power and production efficiency.