Pollard Banknote 1st Quarter Financial Results and Intention to Launch Normal Course Issuer Bid

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Pollard Banknote is a leading lottery partner to more than 60 lotteries worldwide, providing high-quality instant ticket products, licensed games, in-lane ticket options, and sales-driving merchandising solutions from its Schafer Retail Solutions + portfolio. It also offers a full suite of digital offerings, ranging from world-class game apps to comprehensive player engagement and iLottery solutions, including strategic marketing and management services. The Company is a proven innovator and has decades of experience helping lotteries to maximize player engagement, sales, and proceeds for good causes. Pollard Banknote also provides pull-tab tickets, bingo paper, ticket vending machines, and its Diamond Game and Compliant Gaming electronic games and devices to charitable and other gaming markets in North America.  Established in 1907, Pollard Banknote is owned approximately 64% by the Pollard family and 36% by public shareholders, and is publicly traded on the Toronto Stock Exchange (TSX: PBL).

For more information, please visit our website at www.pollardbanknote.com.

1ST QUARTER FINANCIAL RESULTS AND

Intention to Launch Normal Course Issuer Bid

WINNIPEG, Manitoba, May 13, 2026 /CNW/ - Pollard Banknote Limited (TSX: PBL) (“Pollard”) today released its financial results for the three months ended March 31, 2026.

First Quarter Results and Highlights

·       Revenue reached $141.7 million, down 3.1% from the first quarter of last year.

·       Combined sales(1) in the quarter, including our share of our NPi’s joint venture sales, were $175.4 million, down 1.4% from $177.9 million earned in the same quarter last year.

·       Income from operations decreased to $7.6 million, down 58.5% from the first quarter of last year.

·       Adjusted EBITDA(1) achieved $21.5 million, down 29.7% from $30.6 million in the first quarter of 2025.

·       The instant ticket volume sold in the first quarter of 2026 resulted in a significantly lower average selling price than first quarter of 2025, due to customer mix and fewer higher-value options including games featuring our Scratch FX®. The timing of these orders can vary from quarter to quarter, and we expect the rest of 2026 will reflect increased levels of these higher value sales.

·       The initiation of our omnichannel gaming solution implementation for the Belgium Lottery contract occurred during the first quarter and is proceeding well. The focus during this start-up phase was on planning and initial scoping, and as a result, the amount of revenue recognition in the quarter was lower than we expect to earn in subsequent quarters.

·       Charitable gaming operations generated stronger results compared to the first quarter of 2025 due to higher sales of printed pull-tab tickets and significantly improved eTab related revenue.

·       The Board of Directors has authorized the launch of a Normal Course Issuer Bid

(“NCIB”) subject to the approval of the Toronto Stock Exchange (“TSX”).

(1) See Non-GAAP measures for explanation

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https://www.pollardbanknote.com/