Pollard Banknote (PBL) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue in 2025, driven by major contract wins such as the California and Belgian National Lottery, and successful digital platform launches including the Kansas iLottery using the Catalyst platform.

• Adjusted EBITDA reached approximately $119.9 million, up 4.7% from 2024, with net income for 2025 at $34.7 million, a slight decrease of 1.4% year-over-year.

• The company absorbed startup losses in Kansas iLottery and faced regulatory headwinds in Minnesota eTabs, but expects improvement in 2026.

Financial highlights

• Q4 2025 revenue reached $150.8 million, up 7.5% from Q4 2024; full-year combined sales (including NPi JV) rose 8.9% to $725.0 million.

• Adjusted EBITDA for Q4 2025 was $27.7 million, up 9.9% from Q4 2024; full-year EBITDA increased to approximately $119.9 million.

• Net income for Q4 2025 was $4.6 million, reversing a net loss in Q4 2024; EPS for 2025 was $1.28.

• Gross profit margin declined to 14.9% in Q4 2025 from 16.0% in Q4 2024, mainly due to Kansas iLottery startup costs and Minnesota eTab regulatory impacts.

• NPi joint venture contributed $66.2 million in equity investment income, up $13.6 million year-over-year.

Outlook and guidance

• Gross margins are expected to improve through 2026, returning toward historical low 20% levels as Kansas iLottery and Minnesota eTabs recover.

• Kansas iLottery and Belgium Lottery contracts are projected to deliver increasing financial impact in 2026.

• Charitable eTab revenue is expected to surpass 2024 levels in 2026, barring unforeseen negative events.

• ERP system implementation continues into 2026, aiming to improve efficiencies and margins.

• CapEx, including intangibles, will be lower in 2026 as major investments in technology and equipment are largely complete.