Pollard Banknote Reports Lower Q1 2026 Results Due to Order Timing

Pollard Banknote released its first-quarter 2026 financial results and held an earnings conference call on Thursday. The company reported that the quarter was affected by temporary timing issues related to customer orders for its instant ticket product line.

Doug Pollard, Co Chief Executive Officer, said nothing has changed with the client portfolio, pricing or the underlying instant ticket business. He noted that a temporary mix change led to a lower average selling price, while orders from some larger customers shifted from late in the first quarter into the second quarter.

These delays, combined with related production inefficiencies, reduced sales and negatively affected instant ticket margins. Instant tickets represent roughly half of the company's overall sales. The timing of orders and revenue recognition can vary significantly from quarter to quarter.

The company said confirmed order volumes for the second and third quarters of 2026 have increased compared with both the first quarter of 2026 and the comparable periods last year. The increase reflects additional volumes from the new California Primary Supply contract as well as a return to the historical customer and game mix seen in 2025, which produces higher average selling prices.

Based on the recovery in the instant ticket business, Pollard Banknote expects consolidated adjusted EBITDA for the second quarter of 2026 to exceed that of the comparable quarter in 2025.

The onboarding of the California contract is proceeding well. Work ramped up during the first quarter on the 12-year, $289 million Canadian contract awarded last fall to provide Belgium's National Lottery with an Omni Channel Gaming Platform, including a central gaming system, player account management and an integrated marketing platform.