SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS
Document Type: DRS
Date Filed: 2026-02-17
Accession Number: 0001193125-26-054926
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526054926/filename1.htm

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support our strong customer relationships, which is evidenced by our proven track record of delivering reliable, integrated power solutions. Once connected to the grid, we also assist customers to maximize the return on their investment in our power systems by leveraging its multi-purpose dispatchable power capabilities through our market operations and dispatch management platform, acting as advisor or agent for owners of our deployed power systems of 724 MW. These services allow customers to utilize our power systems for backup power as and when needed or to strategically dispatch capacity from our power systems during peak demand or scarcity events—ultimately enabling our power systems to become a grid asset. Our asset optimization capabilities and market expertise enable us to monetize our power systems capacity, reduce costs to customers in almost any market and reduce times to grid interconnection. Our distributed power systems have consistently operated in support of the grid.

Over the past eight years, we have supported over 236,000 Grid Support
Events. Each event represents a documented start and stop of our distributed generation systems undertaken to provide power to the grid during periods of actual or anticipated grid constraints, either in response to a direct request from the grid
operator or pursuant to incentive based programs, such as scarcity pricing or peak demand load shed programs, that compensate generators for providing such support. Under our O&M and asset management services agreements, customers authorize us
to dispatch and operate the power systems during Grid Support Events when their operations do not require dedicated output from our power systems. When the grid is down, our power systems can displace grid supply (i.e., island the customer’s
load from the grid) and provide utility-grade power directly to the customer; when the grid is operating normally, our power systems remain interconnected and operate in parallel with the grid, enabling us to deliver grid-supporting services. During
Grid Support Events, when customer operations allow, we can provide the available capacity of our power systems through both offsetting the customer’s load consumption and exporting any additional available capacity to the grid in exchange for
program based compensation or other incentives that benefit our customers. We believe this operational experience is increasingly valuable as grid operators seek alternative tools to address resource adequacy and congestion management for large
loads. Power outage responses and power quality operations are separate from, and in addition to, these Grid Support Events.

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We assemble our proprietary engines and generators at our Titan facility and
are targeting increasing our annual assembly capacity to approximately 1.2 GW by the end of 2026 with the development of our Hyperion facility, both located in Houston, Texas. Our assembly model is designed to scale efficiently and rapidly to meet
growing customer demand and service our backlog, leveraging a high-volume, largely multi-sourced supply chain and standardized assembly processes. This approach allows us to expand output without the need for extensive new capital investment or
specialized equipment, enabling low-cost, high-velocity capacity expansion while maintaining assembly flexibility and supply-chain security. As we increase capacity to meet accelerating demand, we are able to
produce and deploy additional power systems while maintaining strong control over our supply chain, costs, efficiency and product quality, which supports higher margins. In addition, growing our generator deployment also accelerates our innovation
cycle as the real-world operating data of our power systems in the field informs improvements to our design, development and installation processes. We believe this feedback loop, enabled by our vertically integrated business model and scalable
assembly capabilities, helps drive a faster innovation cycle, supports reliable execution at scale and differentiates us from our competitors with more capital-intensive or less flexible assembly models. For example, insights from field
installations have allowed us to pre-configure and kit key generator components in our production process, reducing installation costs by 20% and creating a continuous improvement cycle between engineering, production and field operations.

Over the past decade, we have built a foundation of deep trust and relationships with leading data center and AI ecosystem
companies, such as Microsoft, Wistron and Foxconn, electric and gas utilities, such as Entergy and ComEd, and C&I customers, such as H-E-B and Walmart, with
approximately 50 customers in those end markets, establishing ourselves as a critical link where speed-to-power, reliability, flexibility and scale converge in our
customers’ power ecosystem. Leveraging our position as a trusted provider, we are seeking to grow our business and strengthen our financial and operating performance.

• Our revenue was $     million for the year ended December 31, 2025, representing
% year-over-year growth as compared to the year ended December 31, 2024.

• Our net loss and Adjusted EBITDA were $     million and $
million for the year ended December 31, 2025, representing   % and   % year-over-year growth as compared to the year ended December 31, 2024, respectively.

• Our Contracted Power System Sales Backlog was $1.22 billion for the year ended December 31, 2025,
representing 436.0% year-over-year growth as compared to the year ended December 31, 2024.

• Our Annualized Recurring Service Revenue was $22.4 million for the year ended December 31, 2025,
representing 13.9% year-over-year growth as compared to the year ended December 31, 2024.

• Our net loss margin and Adjusted EBITDA Margin were   % and   % for the year ended
December 31, 2025, representing   % and   % year-over-year growth as compared to the year ended December 31, 2024, respectively.

• Our installed base was approximately 1,000 MW for the year ended December 31, 2025, representing 7.1%
year-over-year growth as compared to the year ended December 31, 2024.

For more information
regarding our non-GAAP measures Adjusted EBITDA and Adjusted EBITDA Margin and a reconciliation to net loss and net loss margin, the most comparable GAAP (as defined herein) measures, see “Prospectus
Summary—Summary Historical Consolidated Financial Data and Operational Measures—Non-GAAP Financial Measures.”

Key Macro Trends

Generational Surge in Demand Primarily Driven by AI and Electrification

The United States is entering a historic
upswing in power demand driven by the rapid expansion of AI, digital infrastructure and broader electrification. According to the IEA, data centers are the single largest new

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source of U.S. load growth: in 2024, the U.S. accounted for 45% of global data center electricity demand, and from 2024 to 2030 data centers alone are projected to represent half of all U.S.
electricity demand growth, a larger impact than in any other region in the world.

The IEA reports that hyperscale AI
facilities with power needs of 200 MW to over 1 GW are proliferating, with a typical hyperscale data center now consuming as much electricity as 100,000 households and the largest exceeding 2 million household equivalents. This surge coincides
with rising load from EV adoption and electrified manufacturing, driving total U.S. electricity demand up significantly. These converging trends are creating an unprecedented call for reliable, dispatchable generation resources that can scale
rapidly.

Traditional Energy Solutions Are Unable to Meet Growing Demand

Existing U.S. electricity infrastructure is insufficient for the speed and magnitude of today’s demand expansion, and
traditional solutions, such as incremental grid expansions and reliance on variable renewables alone, are falling short. The IEA warns that grid congestion and long interconnection queues already pose critical barriers, with transformer and turbine
supply chains facing multi-year backlogs. U.S. interconnection queues are becoming increasingly congested, with reported grid connection timelines for new data center capacity extending to approximately seven years in major load-growth markets such
as Northern Virginia.

Even with strong renewable energy growth, the IEA notes that renewable energy sources cannot fully
resolve short term or seasonal reliability needs, nor can they alone meet the highly concentrated, 24/7 load profiles of data centers. As a result, current reliance on intermittent resources and conventional grid expansion processes cannot meet the
scale, speed or firmness requirements of future demand, reinforcing the need for firm, fast response, dispatchable generation solutions.

Increasing Adoption of Co-Locating Loads with Distributed Power Solutions

To manage grid constraints and ensure reliability, companies are increasingly
co-locating large loads, especially data centers, with onsite or near-site distributed generation. Data centers continue to take on a larger role in electricity systems,
ensuring their smart integration becomes critical, both to enhance grid stability and support ongoing investment. The IEA suggests that data centers be strategically sited in areas with available power and grid headroom and emphasizes that onsite
generation and flexible backup systems, such as those provided by us, are vital for maintaining reliability and easing pressure on constrained grids.

Given AI data center loads are highly concentrated, the IEA reports that firm onsite generation improves both project
feasibility and system-wide resilience. In the U.S., where grid congestion and interconnection delays are among the most severe globally, distributed natural gas generation provides a practical, scalable path for powering mission critical loads
while relieving stress on regional networks.

Reliability and Resilience Are Under Strain