Lottery technology firm Pollard Banknote had a better experience of Q2 2026 than it did during the opening three months of the year.
John Pollard, Co-Chief Executive Officer of the Winnipeg company, remarked that its performance had “returned to expected levels” after a tricky Q1.
Pollard noted that a “strong level of earnings and revenue across a number of product lines” had driven an overall positive performance for the company.
Q2 revenue rose 8.% year-over-year to US$154.8m (£117m), driven by an 8.2% increase in combined sales to $189.1m ($174.8m).
Adjusted EBITDA also rose 6.5% from $29.2m to $31.1m, while the gross margin increased from 16.7% to 18.1%.
“Our mix of instant ticket sales sold during the quarter resulted in an increase in average selling price compared to the first quarter due to improved customer mix and higher value tickets,” said Pollard.
The firm’s long-running contract as scratchcard supplier to the California Lottery continues to give leadership confidence, having been cited as a key growth driver as far back as Q3 2025.
In addition, our second quarter instant ticket production volume returned to historic levels plus an increase due to additional volumes under our new California Lottery contract,” Pollard added.
“The new business generated from our new California primary instant ticket contract continues to exceed our expectations with higher volumes than initially expected.”
Further highlights during Q2 included continuing expansion in iLottery, with Pollard’s contract with the Michigan Lottery cited as a particular example.
This contract is run by the NPi joint venture, a cross-collaboration between Pollard, NepPollard Interactive and Aristocrat Interactive.
Management stated that the Michigan contract contributed some $17.3m before profit share and income tax margin.
A final highlight was the Toronto Stock Exchange’s (TSX) approval for Pollard to launch an Normal Course Issuer Bid (NCIB), which authorised the firm to purchase around 10% of its outstanding common shares as of 13 May 2026.
“We are very pleased with our second quarter results and are confident the remainder of 2026 will see continuing improved results from our instant ticket, digital and charitable gaming operations,” added John Pollard.
“Our scheduled instant ticket volumes remain busy over the next two quarters. The notice of intent to be awarded the Colorado Lottery digital solution contract is an important confirmation of the success of our overall digital strategy and our third iLottery contract in the last two years.
“The combination of strong momentum in all three of our business lines, retail, digital and charitable, will continue to generate positive results going forward.”