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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2025. The improvement was primarily attributable to strong revenue growth and improved operating margins. Total revenues increased by $7.6 million, or 31.6%, from $24.1 million in the three months ended March 31, 2025 to $31.7 million in the three months ended March 31, 2026, allowing us to better absorb fixed operating costs and improve overall efficiency. For more information regarding our non-GAAP measures Adjusted EBITDA and Adjusted EBITDA Margin, and a reconciliation to their most comparable GAAP measures, see “—Non-GAAP Financial Measures.” Total Revenues Three Months Ended March 31, Change (in thousands, except percentages) 2026 2025 Amount % Power system sales product revenues $ 5,157 $ 6,072 $ (915 ) (15.1 %) Power system sales installation services revenues 10,765 7,960 2,805 35.2 % Power system sales revenues 15,922 14,032 1,890 13.5 % Ongoing services revenues 15,814 10,077 5,737 56.9 % Total revenues $ 31,736 $ 24,109 $ 7,627 31.6 %

Total revenues for the three months ended March 31, 2026, were $31.7 million, an
increase of $7.6 million, or 31.6%, compared to $24.1 million for the three months ended March 31, 2025. This increase was driven by a $1.9 million increase in power system sales revenues and a $5.7 million increase in
ongoing services revenues. At March 31, 2026, we have $1.3 billion in Contracted Power System Sales Backlog. Based on our current delivery capacity and production capacity at our Titan facility and the anticipated commencement of
operations at our Hyperion facility in the second half of 2026, we expect to execute on this backlog over approximately three years. As a result, we expect to increase our total revenues in these years, primarily relating to power system sales
product revenues and power system sales installation services revenues, with ongoing services revenues expected to grow as additional systems are commissioned. Our ability to execute on this backlog as anticipated is subject to a number of risks and
uncertainties including: (1) the risk that customers fail to meet or seek to modify their contractual commitments, (2) disruptions to our assembly operations or supply chain, and (3) broader macroeconomic conditions that could affect
our customers’ ability to finance their purchases.

Power system sales product revenues decreased by
$0.9 million, or 15.1%, for the three months ended March 31, 2026, compared to the prior year. This decrease was driven by the timing of customer projects as more move into the installation phase in the first three months of 2026 versus
the prior year.

Power system sales installation services revenues increased by $2.8 million, or 35.2%,
for the three months ended March 31, 2026, compared to the prior year. This increase was driven by higher installation activity

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associated with customer projects requiring on-site deployment and integration of power generation equipment. As projects advanced toward critical
deployment stages, a greater portion of installation-related work was completed and recognized as revenue during the period.

Ongoing services revenues increased by $5.7 million, or 56.9%, for the three months ended March 31,
2026, compared to the prior year. The increase was primarily driven by a $2.3 million increase in service activity related to our expanding installed base of power systems and increased demand for maintenance and support services. Also
contributing to the increase was approximately $1.4 million of billable and contract service work performed during the year, as well as approximately $1.0 million of major projects service activity.

Total Cost of Revenues

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

Cost of power system sales product revenues, excluding depreciation and amortization $	3,779 $	5,428 $	(1,649	) (30.4	%)

Cost of power system sales installation services revenues, excluding depreciation and amortization 8,230 5,848 2,382 40.7	%

Cost of power system sales revenues, excluding depreciation and amortization 12,009 11,276 733 6.5	%

Cost of ongoing services revenues, excluding depreciation and amortization 13,234 9,137 4,097 44.8	%

Total cost of revenues, excluding depreciation and amortization $	25,243 $	20,413 $	4,830 23.7	%

Total cost of revenues increased by $4.8 million for the three months ended
March 31, 2026, compared to 2025. This increase was primarily driven by higher cost of power system sales of $0.7 million corresponding to higher power system sales and an $4.1 million increase in ongoing service costs related to
servicing our growing installed base of power systems. At March 31, 2026, we have $1.3 billion in Contracted Power System Sales Backlog. As we execute on our Contracted Power System Sales Backlog over the expected three-year period, we
anticipate total cost of revenues to increase commensurate with higher revenue. However, we expect the overall relationship between costs and revenues to improve compared to 2025 levels, driven by operational efficiencies from our Titan and Hyperion
facilities, installation cost improvements from the standardization and pre-configuration of our RockBlock systems, and the largely fixed-cost nature of our O&M infrastructure relative to our growing
installed base. This expected improvement is subject to risks including: (1) unforeseen increases in component or raw material costs, (2) supply chain disruptions, (3) labor cost increases, and (4) higher than anticipated startup
costs at our Hyperion facility, any of which could adversely affect the cost-to-revenue relationship we currently anticipate.

Cost of power system sales product revenues decreased $1.6 million, or 30.4%, for the three months ended
March 31, 2026, compared to the prior year. This decrease was driven by lower generator sales volumes, reflecting a reduction in activity of power system products due to lifecycles of projects.

Cost of power system sales installation revenues increased $2.4 million, or 40.7%, for the three months
ended March 31, 2026, compared to the prior year. The increase was driven by higher installation activity associated with the progression of customer projects and the achievement of key project milestones requiring installation and
commissioning services.

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Cost of ongoing services revenues increased $4.1 million,
or 44.8%, for the three months ended March 31, 2026, compared to the prior year. This increase was driven by higher service activity associated with the growth of our installed base of power systems, including increased maintenance services,
and additional billable service work performed during the period.

Operating Expenses

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

General and administrative expenses $	20,943 $	16,866 $	4,077 24.2	%

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

Total Operating Expenses

Total operating expenses for the three months ended March 31, 2026 were $22.2 million, an increase of
$4.3 million, or 24.1%, compared to $17.9 million for the three months ended March 31, 2025. The increase was driven by a $4.1 million increase in general and administrative expenses and a $0.2 million increase in
depreciation and amortization expenses.

General and Administrative

General and administrative expenses increased by $4.1 million, or 24.2%, for three months ended March 31, 2026,
compared to the three months ended March 31, 2025. The increase was primarily driven a $1.3 million increase in salaries and employee benefits, a $0.7 million increase in higher office expenses mainly attributable to increased
facility-related costs, and a $0.5 million increase in property tax expenses primarily due to increased assessed value, updated tax rates across key operating locations, inventory value and higher franchise taxes related to higher
projected revenues for the year. In addition, there was a $1.7 million increase due to miscellaneous corporate expenses, consulting expenses, IT expenses, and marketing expenses offset by a $0.1 decrease in research and development expenses.

Depreciation and Amortization

Depreciation and amortization expense increased by $0.2 million, or 23.2%, for the three months ended March 31,
2026, compared to the three months ended March 31, 2025. The increase was primarily driven by the increase in amortization expenses related to capitalized software and other intangible assets used to support operational and corporate systems,
along with investments in equipment, infrastructure, and other fixed assets primarily related to our Titan facility, which was placed into service to support our expanding operations and growing installed base of power systems.

Other Income and Expenses

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

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

Other income, net 551 284 267 94.0	%

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Interest expense decreased $0.5 million to $1.5 million for the
three months ended March 31, 2026 compared to $2.0 million for the three months ended March 31, 2025. The decrease was primarily attributable to a decrease in interest expense due to higher outstanding debt balances during 2025.

Other income, net increased to $0.6 million for the three months ended March 31, 2026, compared to $0.3 million
for the three months ended March 31, 2025. This increase is primarily due to an increase in interest income associated with our higher cash balances in 2026 as well as an increase in warranty income from claims and miscellaneous rental income.

Provision for Income Taxes

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %