SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-01
Accession Number: 0001193125-26-138217
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526138217/filename1.htm

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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

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

Years Ended December 31, Change

2025 2024 Amount %

Consolidated Statements of Operations

Power system sales product revenues $	90,138 $	53,976 $	36,162 67.0	%

Power system sales installation services revenues 47,810 38,363 9,447 24.6	%

Power system sales revenues 137,948 92,339 45,609 49.4	%

Ongoing services revenues 45,197 36,151 9,046 25.0	%

Total revenues 183,145 128,490 54,655 42.5	%

Cost of power system sales product revenues, excluding depreciation and amortization 75,754 50,748 25,006 49.3	%

Cost of power system sales installation services revenues, excluding depreciation and amortization 32,083 29,742 2,341 7.9	%

Cost of power system sales revenues, excluding depreciation and amortization 107,837 80,490 27,347 34.0	%

Cost of ongoing services revenues, excluding depreciation and amortization 37,314 30,790 6,524 21.2	%

Total cost of revenues, excluding depreciation and amortization 145,151 111,280 33,871 30.4	%

General and administrative expenses 68,741 57,887 10,854 18.8	%

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

Loss from operations (34,740	) (42,536	) 7,796 (18.3	%)

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

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

Other income, net 1,067 99 968 977.8	%

Loss before income taxes (58,610	) (56,768	) (1,842	) 3.2	%

Income tax expense (420	) (158	) (262	) 165.8	%

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

Deemed dividends related to Series A preferred units (3,110	) (2,880	) (230	) 8.0	%

Net loss attributable to common units $	(62,140	) $	(59,806	) $	(2,334	) 3.9	%

Other Financial Data:

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

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

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

Comparison of the years ended December 31, 2025 and 2024

Net Loss and Net Loss Margin

Net loss increased by $2.1 million, or 3.7%, for the year ended December 31, 2025, compared to the year ended
December 31, 2024. This increase was primarily attributable to a $24.2 million loss on debt extinguishment for the year ended December 31, 2025 and a $13.0 million increase in operating expenses. These impacts were partially
offset by a $54.7 million increase in revenues. Cost of revenues increased by $33.9 million. In addition, interest expense decreased $13.6 million in 2025.

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Net loss margin improved by 12.1%, for the year ended December 31,
2025, compared to the year ended December 31, 2024. The improvement was primarily driven by strong revenue growth and improved operating efficiency, which reduced net loss as a percentage of total revenues. Although net loss increased primarily
due to our loss on debt extinguishment, higher revenues and improved operating margins helped offset this impact.

Adjusted EBITDA and Adjusted EBITDA
Margin

Adjusted EBITDA improved $12.3 million to a loss of $22.6 million for the year ended
December 31, 2025, from a loss of $34.9 million for the year ended December 31, 2024. This improvement was primarily attributable to the increase in our operating margin of 7.3%.

Adjusted EBITDA Margin improved by 14.8% for the year ended December 31, 2025, compared to 2024. The improvement was
primarily attributable to strong revenue growth and improved operating margins. Total revenues increased by $54.7 million, or 42.5%, from $128.5 million in 2024 to $183.1 million in 2025, 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 Revenue

Years Ended December 31, Change

2025 2024 Amount %

Power system sales product revenues $	90,138 $	53,976 $	36,162 67.0	%

Power system sales installation services revenues 47,810 38,363 9,447 24.6	%

Power system sales revenues 137,948 92,339 45,609 49.4	%

Ongoing services revenues 45,197 36,151 9,046 25.0	%

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

Total revenue for the year ended December 31, 2025, were $183.1 million, an
increase of $54.7 million, or 42.5%, compared to $128.5 million for the year ended December 31, 2024. This increase was driven by a $45.6 million increase in power system sales revenues and a $9.0 million increase in ongoing
services revenues. At December 31, 2025, we have $1.2 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, increasing 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, the risk that customers
fail to meet or seek to modify their contractual commitments, disruptions to our assembly operations or supply chain, and broader macroeconomic conditions that could affect our customers’ ability to finance their purchases.

Power system sales product revenues increased by $36.2 million, or 67.0%, for the year ended
December 31, 2025, compared to the prior year. This increase was driven by significantly stronger demand for power system sales.

Power system sales installation services revenues increased by $9.4 million, or 24.6%, for the year ended
December 31, 2025, compared to the prior year. This increase was driven by higher installation activity associated with customer projects requiring on-site deployment and integration of power generation
equipment, as more power system projects progressed from equipment delivery to implementation phases during the year. As projects advanced toward critical deployment stages, a greater portion of installation-related work was completed and recognized
as revenue during the period.

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Ongoing services revenues increased by $9.0 million,
or 25.0%, for the year ended December 31, 2025, 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 $2.2 million of unplanned billable service work performed during the year, as well as approximately $0.6 million of warranty-related service activity.

Total Cost of Revenue

Years Ended December 31, Change

2025 2024 Amount %

Cost of power system sales product revenues, excluding depreciation and amortization $	75,754 $	50,748 $	25,006 49.3	%

Cost of power system sales installation services revenues, excluding depreciation and amortization 32,083 29,742 2,341 7.9	%

Cost of power system sales revenues, excluding depreciation and amortization 107,837 80,490 27,347 34.0	%

Cost of ongoing services revenues, excluding depreciation and amortization 37,314 30,790 6,524 21.2	%

Total cost of revenues, excluding depreciation and amortization $	145,151 $	111,280 $	33,871 30.4	%