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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install our power systems. Costs related to power system sales installation services revenues are recognized over time in a manner consistent with the recognition of the associated revenues, as project milestones are achieved or services are performed and accepted by the customer. Costs of warranties for power system sales are recognized as incurred and include labor, parts and allocated overhead necessary to perform repair services. We do not accrue these costs and recognize the expense in the period the services are performed. Cost of Ongoing Services Revenues Cost of ongoing services revenues primarily consists of the expenses associated with operating, maintaining and managing our power systems pursuant to Ongoing Services agreements. These costs span the term of each Ongoing Services agreement, beginning with the final commissioning and integration phase of installation and continuing with the operation, maintenance and asset management of the applicable power system. These costs Table of Contents

include the cost of labor to operate and maintain our power systems, the cost of components and materials to maintain our power systems and the cost of labor to manage electricity and natural gas
market participation of our power systems. We expect that the cost of service revenues to increase as we grow our installed base. Costs of warranties for ongoing services are recognized as incurred and include labor, parts and allocated overhead
necessary to perform repair services. We do not accrue these costs and recognize the expense in the period the services are performed.

Operating
Expenses

General and Administrative Expenses

General and administrative (“G&A”) expenses consist primarily of payroll and employee benefits, including
health insurance, 401(k) contributions, and annual incentive compensation, for corporate staff, as well as external professional fees, sales and marketing expenses and other miscellaneous expenses including utilities, rent and insurance costs. We
expect our G&A expenses to increase in future periods due to additional costs associated with operating as a public company, including increased legal and accounting expenses, as well as incremental headcount necessary to support our continued
growth.

Depreciation and Amortization Expenses

We depreciate our assets on a straight-line basis over their estimated useful lives, which generally range from five to 15
years. We expect depreciation and amortization expenses to increase in future periods as we continue to build out our new facility and expand our overall production capacity.

Interest Expense

Interest expense for the period primarily reflects charges incurred under our long-term debt facilities and financing
obligations. We expect these costs to decrease in future periods as a result of ongoing debt repayment initiatives. By reducing principal balances on our secured line of credit and lease obligations over time, we aim to lower our overall cost of
capital and improve net interest margins.

Other Income, Net

Other income primarily reflects financial results from activities secondary to our core power systems operations. This
primarily includes interest income earned on cash and cash equivalents held in interest-bearing money market accounts, which are maintained to support liquidity for future project deployments.

Income Tax Expense

Determining income tax expense, deferred tax assets and liabilities, and unrecognized tax benefits requires significant
management judgment and involves estimates. Because we operate in multiple tax jurisdictions, uncertain tax positions are evaluated and recognized based on a “more likely than not” threshold and may be subject to examination by tax
authorities. Changes in tax laws, interpretations, or the outcomes of tax audits could materially affect our financial position, results of operations, and cash flows in future periods. We expect that the provision for income taxes will increase in
future periods due to the forecasted growth in revenues and net income associated with our contract backlog.

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Results of Operations

Comparison of the three months ended March 31, 2026 and March 31, 2025

The following table presents selected condensed consolidated statements of operations data for the periods indicated. This
information is derived from, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying notes included elsewhere in this prospectus.

Three Months Ended March 31, Change

(in thousands, except percentages) 2026 2025 Amount %

Condensed Consolidated Statements of Operations

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	%

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	%

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

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

Loss from operations (15,751	) (14,226	) (1,525	) 10.7	%

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

Other income, net 551 284 267 94.0	%

Loss before income taxes (16,651	) (15,920	) (731	) 4.6	%

Income tax expense (561	) (17	) (544	) 3200.0	%

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

Deemed dividends related to Series A preferred units (816	) (755	) (61	) 8.1	%

Net loss attributable to common units $	(18,028	) $	(16,692	) $	(1,336	) 8.0	%

Other Financial Data:

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

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

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

Net Loss and Net Loss Margin

Net loss increased by $1.3 million, or 8.0%, for the three months ended March 31, 2026, compared to the three months
ended March 31, 2025. This increase was primarily attributable to a $4.8 million increase in cost of revenues and an $4.3 million increase in operating expenses. These impacts were partially offset by a $7.6 million increase in
revenues. In addition, interest expense decreased $0.5 million in the three months ended March 31, 2026.

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Net loss margin improved by 11.9%, for the three months ended March 31,
2026, compared to the three months ended March 31, 2025. The improvement was primarily driven by strong revenue growth and improved operating efficiency, which reduced net loss as a percentage of total revenues.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA declined by $1.5 million to a loss of $12.4 million for the three months ended March 31, 2026,
from a loss of $10.9 million for the three months ended March 31, 2025. This decline was primarily attributable to an increase in general and administrative expenses related to increased headcount in assembly operations and increased legal
expenses related to significant contracting activity. This decline was partially offset by increased installation revenues related to recently commissioned sites and increased ongoing services activity.

Adjusted EBITDA Margin improved by 6.2% for the three months ended March 31, 2026, compared to 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	%