Pollard Banknote Reports Q2 Revenue Recovery Following California Lottery Contract
Clara Williams 
Pollard Banknote reported an 8 percent year-over-year revenue increase to US$154.8 million for the second quarter of 2026, driven by strong instant ticket sales and expanded iLottery operations across North American jurisdictions. The Winnipeg-based technology supplier recorded an 8.2 percent increase in combined sales, reaching $189.1 million compared to $174.8 million in the previous period. Adjusted EBITDA for the quarter also rose 6.5 percent, moving from $29.2 million to $31.1 million, while the company's gross margin increased from 16.7 percent to 18.1 percent.
Key Takeaways:
- Q2 2026 revenue increased 8 percent to US$154.8 million.
- California Lottery instant ticket volumes exceeded initial expectations.
- Colorado Lottery issued a notice of intent for a digital contract.
California Lottery Instant Ticket Volumes Drive Growth
The company's financial recovery following a difficult first quarter was heavily supported by its retail instant ticket operations. John Pollard, Co-Chief Executive Officer of Pollard Banknote, stated that the company's performance returned to expected levels due to a strong level of earnings and revenue across multiple product lines. A primary driver of this growth was the company's long-running contract as a scratchcard supplier to the California Lottery, complementing its broader industry presence alongside traditional draw options like New York Lotto tickets.
According to the supplier, the mix of instant ticket sales during the second quarter resulted in an increased average selling price compared to the first quarter. This was attributed to an improved customer mix and the production of higher-value tickets. Instant ticket production volume returned to historic levels, bolstered by additional volumes generated under the new California Lottery primary instant ticket contract. Management noted that new business from this California contract continues to exceed initial expectations with higher volumes than originally projected.
Michigan and Colorado iLottery Expansion
Beyond retail scratchcards, Pollard Banknote highlighted continuing expansion within the iLottery sector, which enhances how players engage with online lottery games. The company's digital contract with the Michigan Lottery was cited as a primary example of this digital growth. The Michigan operation is managed by the NPi joint venture, which operates as a cross-collaboration between Pollard Banknote, NepPollard Interactive, and Aristocrat Interactive. During the second quarter, the Michigan contract contributed approximately $17.3 million before profit share and income tax margin.
The supplier's digital footprint is set to expand further, as the company received a notice of intent to be awarded the Colorado Lottery digital solution contract. John Pollard noted that this development serves as an important confirmation of the success of the company's overall digital strategy, marking its third iLottery contract secured in the last two years.
TSX Approves Normal Course Issuer Bid
In addition to operational contracts, the Toronto Stock Exchange (TSX) approved Pollard Banknote to launch a Normal Course Issuer Bid (NCIB). This approval authorized the technology firm to purchase approximately 10 percent of its outstanding common shares as of May 13, 2026.
Looking ahead, leadership expressed confidence that the scheduled instant ticket volumes will remain busy over the upcoming quarters. "The combination of strong momentum in all three of our business lines, retail, digital and charitable, will continue to generate positive results going forward," added John Pollard, emphasizing that the remainder of 2026 is expected to see continuing improved results across the company's operations.
