Core Insights - Pollard Banknote experienced a "transformational" year in 2025, marked by significant digital lottery launches and major contract wins, including a 12-year contract with Belgium's Nationale Loterij valued at approximately CAD 289 million [2][4][6] Financial Performance - Fourth-quarter revenue increased to CAD 150.8 million from CAD 140.3 million year-over-year, driven by higher average instant ticket selling prices and increased sales from Kansas iLottery and charitable gaming [5][7] - Adjusted EBITDA rose to CAD 27.7 million from CAD 25.2 million, with net income turning positive at CAD 4.6 million compared to a net loss of CAD 1.8 million in the previous year [13] - Combined sales, including Pollard's share of NeoPollard Interactive, reached CAD 185 million, up 10% from CAD 168.2 million a year earlier [8] Margins and Costs - Gross margin fell to 14.9% from 16.0%, primarily due to startup losses from the Kansas iLottery and higher amortization costs [10][9] - Cost of sales increased to CAD 128.4 million, attributed to higher charitable gaming volumes and increased iLottery operating costs [9] Future Outlook - Management anticipates margin improvement in 2026, targeting a return to the "very low 20% range" as Kansas startup losses and Minnesota eTab pressures are expected to ease [14][15] - First-quarter 2026 is projected to be significantly better than Q4 2025, with faster ramp-up in Minnesota eTabs [15] Strategic Developments - The company launched its first iLottery solution with the Kansas Lottery in February 2025, noted for being the fastest rollout of a greenfield iLottery operation [3][6] - Pollard secured a primary supply role for instant tickets with the California Lottery, the largest seller of instant tickets in the U.S., under a 12-year contract [6]