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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positioned to deliver on the significant market demand for dispatchable, resilient and cost-effective power solutions that can be quickly deployed and commissioned. Through delivering 99.999% reliability and the capability to deliver in less than six months, with full project commissioning typically achieved within 12 to 18 months from contract signing, we provide one of the few scalable solutions capable of addressing near-term capacity needs, Table of Contents particularly in high-growth regions like Texas and California. As natural gas remains a critical firm resource supporting renewable integration, our modular, low-emission solutions enable hyperscale data centers, industrial facilities and utilities to procure reliable, firm power at substantial scale, often reaching several hundred megawatts or over a gigawatt, without the prolonged lead times inherent in traditional transmission expansion. This combination of speed, reliability and flexibility positions us to capture significant share in an increasingly capacity-constrained U.S. power market. How We Evaluate Our Operations

Our management uses a variety of financial and operating metrics to evaluate and analyze the performance of our business.
These metrics help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. The key metrics we use to evaluate our business are provided below.

Non-GAAP Financial Measures

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin are financial measures that are not
prepared in accordance with GAAP. These non-GAAP financial measures should be read in conjunction with the most directly comparable financial measure calculated and presented in accordance with GAAP.

We believe presenting these non-GAAP financial measures provides useful information to
investors because they highlight trends in our underlying operating performance, facilitate comparisons of our core results over time and across peers, and reflect how our management evaluates our business. We also use these non-GAAP financial measures internally for strategic planning, budgeting, forecasting, performance measurement, and resource allocation. We believe that providing investors with access to these measures allows for
greater transparency and facilitates comparisons to our historical operating results.

These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for the most directly comparable financial measure prepared in accordance with GAAP. In addition, other companies,
including companies in our industry, may define these non-GAAP financial measures differently, which may limit their usefulness as comparative measures.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA and Adjusted EBITDA Margin are utilized by our management and other users of our condensed consolidated
financial statements such as investors, commercial banks, research analysts and others, to assess our operating performance. Management believes these measures are useful because they each allow us to compare our operating performance on a
consistent basis across periods. Management also believes Adjusted EBITDA is a useful indicator of our operating performance and Adjusted EBITDA 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 warrant unit liabilities, professional fees associated with debt and equity transactions, legal settlements). We define
Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenues.

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The tables below present a reconciliation of net loss and net loss margin to
Adjusted EBITDA and Adjusted EBITDA Margin:

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

Net loss $	(17,212	) $	(15,937	) $	(1,275	) 8.0	%

Interest expense 1,451 1,978 (527	) (26.6	%)

Depreciation and amortization expense 1,301 1,056 245 23.2	%

Income tax expense 561 17 544 3200.0	%

Stock-based compensation 1,225 1,487 (262	) (17.6	%)

Non-recurring professional fees (2) 257 482 (225	) (46.7	%)

Adjusted EBITDA $	(12,417	) $	(10,917	) $	(1,500	) 13.7	%

Net loss margin (54.2	)% (66.1	)% 11.9	%

Adjusted EBITDA Margin (39.1	)% (45.3	)% 6.2	%

Years Ended December 31, Change

(in thousands, except percentages) 2025 2024 Amount %

Net loss $	(59,030	) $	(56,926	) $	(2,104	) 3.7	%

Interest expense 755 14,331 (13,576	) (94.7	%)

Depreciation and amortization expense 3,993 1,859 2,134 114.8	%

Loss on debt extinguishment 24,182 — 24,182 N/A

Income tax expense 420 158 262 165.8	%

Stock-based compensation 4,610 2,662 1,948 73.2	%

Change in fair value of warrants (1) (1,752	) 1,398 (3,150	) (225.3	%)

Non-recurring professional fees (2) 4,176 1,606 2,570 160.0	%

Adjusted EBITDA $	(22,646	) $	(34,912	) $	12,266 (35.1	%)

Net loss margin (32.2	)% (44.3	)% 12.1	%

Adjusted EBITDA Margin (12.4	)% (27.2	)% 14.8	%

(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 2026, 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 markup 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 GAAP

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and, by design, offset one another with no material contribution to profit, their inclusion in GAAP 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 condensed consolidated financial statements and consolidated financial statements.

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

Total Revenues $	31,736 $	24,109 $	7,627 31.6	%

Total Cost of Revenues 25,243 20,413 4,830 23.7	%

Less: Depreciation and amortization expense 1,301 1,056 245 23.2	%

Total Gross Profit $	5,192 $	2,640 $	2,552 96.7	%

Less: Reimbursable variable revenue (6,607	) (3,816	) (2,791	) 73.1	%

Add: Reimbursable variable cost 6,607 3,781 2,826 74.7	%

Adjusted Gross Profit $	5,192 $	2,605 $	2,587 99.3	%

Gross margin 16.4	% 11.0	% 5.4	%

Adjusted Gross Margin 20.7	% 12.8	% 7.9	%

Years Ended December 31, Change

(in thousands, except percentages) 2025 2024 Amount %

Total Revenues $	183,145 $	128,490 $	54,655 42.5	%

Total Cost of Revenues 145,151 111,280 33,871 30.4	%

Less: Depreciation and amortization expense 3,993 1,859 2,134 114.8	%

Total Gross Profit $	34,001 $	15,351 $	18,650 121.5	%

Less: Reimbursable variable revenue (16,336	) (13,903	) (2,433	) 17.5	%

Add: Reimbursable variable cost 16,156 14,042 2,114 15.1	%

Adjusted Gross Profit $	33,821 $	15,490 $	18,331 118.3	%

Gross margin 18.6	% 11.9	% 6.6	%

Adjusted Gross Margin 20.3	% 13.5	% 6.8	%