SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227199
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526227199/d12401ds1.htm

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Margin is useful because it provides insight on profitability. Net loss is the GAAP measure most directly comparable to Adjusted EBITDA, and net loss margin is the GAAP measure most directly comparable to Adjusted EBITDA Margin. We define Adjusted EBITDA as net loss before net interest expense; depreciation and amortization expense; income tax expense; stock-based compensation; and other items management deems non-operational or not reflective of ongoing core operations (e.g. changes in fair value of unit liabilities, professional fees associated with debt and equity transactions, legal settlements). We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues. The table below presents a reconciliation of net loss and net loss margin to Adjusted EBITDA and Adjusted EBITDA Margin: Three Months Ended March 31, Years Ended December 31, (in thousands, except percentages) 2026 2025 2025 2024 Net loss $ (17,212 ) $ (15,937 ) $ (59,030 ) $ (56,926 )

Interest expense 1,451 1,978 755 14,331

Depreciation and amortization expense 1,301 1,056 3,993 1,859

Loss on debt extinguishment — — 24,182 —

Income tax expense 561 17 420 158

Stock-based compensation 1,225 1,487 4,610 2,662

Change in fair value of warrants (1) — — (1,752	) 1,398

Non-recurring professional fees (2) 257 482 4,176 1,606

Adjusted EBITDA $	(12,417	) $	(10,917	) $	(22,646	) $	(34,912	)

Net loss margin (54.2	)% (66.1	)% (32.2	)% (44.3	)%

Adjusted EBITDA Margin (39.1	)% (45.3	)% (12.4	)% (27.2	)%

(1)	Non-cash change in fair value of our warrant liability at
December 31, 2024. See Note 13—Equity—Warrant Units, to our consolidated financial statements included in this prospectus for more details.

(2)	Professional fees represent (i) consulting, legal, accounting, and other expenses in connection with the
evaluation of potential non-recurring capital markets transactions in 2025 and 2024, (ii) certain consulting, legal, and corporate expenses in connection with debt modifications that occurred in April 2025, and (iii) certain non-recurring placement
fees associated with key hires in 2025.

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit and Adjusted Gross Margin are non-GAAP financial measures. We define Adjusted Gross Profit as GAAP gross
profit, adjusted to exclude reimbursable variable revenues and costs. We define Adjusted Gross Margin as Adjusted Gross Profit divided by total revenues less reimbursable variable revenues. Reimbursable variable revenues and costs represent certain
revenues and expenses where we serve as the principal in transactions and control the use and timing of the products and services that are being utilized. These costs represent our primary obligation and are recovered from customers at cost without
mark-up pursuant to the terms of our contracts.

We present Adjusted Gross Profit and Adjusted Gross Margin because we
believe these measures provide management and investors with a more meaningful view of the underlying economics and profitability of our core operations. Because reimbursable variable revenues and costs are recorded on a gross basis under U.S. GAAP
and, by design, offset one another with no material contribution to profit, their inclusion in GAAP

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revenues and cost of revenues can cause reported gross margin percentages to fluctuate significantly depending on the frequency of underlying activities which can be driven by unpredictable
changes in market conditions. By excluding these revenues, Adjusted Gross Margin reflects the margin we earn on the goods and services where we bear economic risk, exercise pricing judgment, and generate value for our customers.

We use Adjusted Gross Profit and Adjusted Gross Margin internally to evaluate segment-level performance, assess pricing and
cost trends, and benchmark our profitability against peers whose revenue recognition practices may differ with respect to reimbursable items. We believe this perspective enhances investors’ understanding of the operating leverage and margin
trajectory of our business.

Adjusted Gross Profit and Adjusted Gross Margin have limitations as analytical tools. They
are not substitutes for GAAP gross profit or GAAP gross margin, and our calculations may not be comparable to similarly titled measures reported by other companies because other entities may not define or calculate these measures in the same manner.
In addition, while reimbursable variable costs are excluded because they have immaterial net margin impact, they do represent real cash flows and contractual obligations that affect our working capital and liquidity. Accordingly, these non-GAAP
measures should be considered alongside, and not as alternatives to, the GAAP financial measures included in our consolidated financial statements.

Three Months Ended March 31, Years Ended December 31,

(in thousands, except percentages) 2026 2025 2025 2024

Total Revenues $	31,736 $	24,109 $	183,145 $	128,490

Total Cost of Revenues 25,243 20,413 145,151 111,280

Less: Depreciation and amortization expense 1,301 1,056 3,993 1,859

Total Gross Profit $	5,192 $	2,640 $	34,001 $	15,351

Less: Reimbursable variable revenue (6,607	) (3,816	) (16,336	) (13,903	)

Add: Reimbursable variable cost 6,607 3,781 16,156 14,042

Adjusted Gross Profit $	5,192 $	2,605 $	33,821 $	15,490

Gross margin 16.4	% 11.0	% 18.6	% 11.9	%

Adjusted Gross Margin 20.7	% 12.8	% 20.3	% 13.5	%

Operational Measures

Contracted Power System Sales Backlog

Contracted Power System Sales Backlog represents the actual contracted value for purchases of power systems and ESI services,
whether invoiced or not, to be invoiced and recognized as revenue as a result of performing our obligations over the term of the contract, assuming no exceptions or contingencies are exercised.

We believe contracted power system sales backlog is an important operating metric because it provides visibility into future
revenue from power system sales, reflects underlying demand for our power systems, and helps us plan production, procurement, and workforce requirements.

As of March 31, As of December 31,

(in thousands) 2026 2025 2025 2024

Contracted Power System Sales Backlog $	1,276,065 $	145,232 $	1,183,072 $	227,656

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Annualized Recurring Service Revenue

Annualized Recurring Service Revenue represents the annualized value of recurring revenue under contracted operations and
maintenance service and asset management agreements as of the measurement date, including both fixed contractual payments and variable payments based on typical utilization of such services.

We believe annualized recurring service revenue is an important operating metric because it reflects a stable base of
recurring revenue which is less dependent on new power system sales and more indicative of ongoing services.

Three Months Ended March 31, Years Ended December 31,

(in thousands) 2026 2025 2025 2024

Annualized recurring service revenue $	22,879 $	19,831 $	22,370 $	19,636

Installed Base

Installed Base represents the total installed megawatt capacity of our power systems that have been deployed and are currently
operational.

We believe installed base is an important operating metric because it reflects the scale of our equipment
footprint in the field and is broadly representative of our assets under ongoing services contracts. Most of our deployments include the comprehensive design, delivery, installation and long-term services provided by the ERock Platform.

A larger installed base expands our potential to generate ongoing service revenue through maintenance agreements, parts sales,
monitoring services, and equipment upgrades or replacements. It also provides insight into customer adoption of our products and the long-term demand for our service offerings.

As of March 31, As of December 31,

Installed base in megawatts 1,059 934 1,020 931

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RISK FACTORS

Investing in our Class A common stock involves risks. The risks described below are not the only ones that we face.
Additional risks not presently known to us or that we currently deem immaterial individually or in the aggregate may also impair our business operations. We urge you to carefully consider the information in this prospectus, including the matters
addressed under “Cautionary Statement Regarding Forward-Looking Statements” and the following risks before making an investment decision. If any of these risks were to materialize, our business, financial condition, results of operations
and future prospects could be materially adversely affected. The trading price of our Class A common stock could consequently decline due to any of these risks, and you may lose all or part of your investment. For a summary of these risks, see
“Prospectus Summary—Summary of Our Risk Factors.”

Risks Related to Our Business, Industry and Sales

Our business depends on demand for distributed energy generation in the United States, which is an emerging and rapidly evolving market.
The development of this market, and demand for our power system solutions from data center, utility, C&I, healthcare and retail end markets, is uncertain and may not proceed as we expect. If distributed energy generation or our power system
solutions do not achieve widespread acceptance or demand is lower than anticipated, our business, prospects, financial condition and results of operations could be materially and adversely affected.