A Houston-based energy company that designs, builds and runs modular, onsite natural-gas power systems, selling "electrical resiliency-as-a-service" to businesses that must keep running through grid outages, storms or cyberattacks. It began in 2006 as Enchanted Rock, named after a legendary pink granite dome in the Texas Hill Country that Native American tribes considered sacred, and officially shortened its name to ERock in 2026 ahead of its stock-market debut. Its founders were a nuclear engineer and a former NASA aerospace engineer who drew on ship and spacecraft reliability know-how.
Revenue fell 41.7% to $39.9M as a large prior-year generator delivery did not repeat, but contracted backlog rose to $1.7B on new data center contracts.
A one-time generator delivery last year made the look worse than the underlying business. Revenue fell 41.7% to $39.9M, but ongoing services revenue rose 20.8% and contracted climbed to $1.7B, driven by new data center contracts in Texas. The quarter was about booking future work, not delivering it.
Key takeaways
fell 41.7% to $39.9M, driven by a 62.7% drop in power system sales product revenue after a large generator delivery in the prior-year quarter did not repeat.
Ongoing services rose 20.8% to $13.4M, supported by an expanding installed base and higher reimbursable revenue.
Contracted Power System Sales reached $1.7B, up $1.5B , with new data center contracts in Texas and most deliveries expected within 12 to 18 months.
Operating loss widened to $19.8M from $0.5M a year ago, as G&A expenses rose $11.6M to $27.3M on higher employee compensation, IPO readiness costs, and expenses for the new Hyperion facility.
Cash provided by operating activities was $268.9M, boosted by a $358.4M increase in from new customer deposits tied to the build.
The company recorded a $48.8M loss on debt extinguishment during the quarter, which contributed to a net loss of $67.7M in the filing's narrative, though the condensed income statement shows a net loss of $3.0M.
What to watch
Whether the $1.7B contracted begins converting to within the stated 12-to-18-month window, and at what margin.
G&A expense trajectory after the IPO readiness spend and Hyperion facility costs — whether these step down or become the new run rate.
Customer deposit inflows in the next quarter as a leading indicator of further data center contract wins.
on power system sales once deliveries resume, given unhedged commodity exposure to steel, copper, and aluminum.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net loss widened to $67.7M on lower power system sales, IPO-related costs, and a $48.8M debt extinguishment loss.
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Total revenues fell 41.7% to $39.9M, driven by a 62.7% drop in power system sales product due to a large prior-year generator delivery not repeating.
Ongoing services grew 20.8% to $13.4M, supported by an expanding installed base and higher reimbursable revenue.
swung to a loss of $14.0M from a gain of $3.6M, as lower and a 73.5% increase in G&A expenses more than offset services growth.
G&A expenses rose $11.6M to $27.3M, primarily from higher employee compensation, IPO readiness costs, and expenses for the new Hyperion facility.
Contracted Power System Sales surged to $1.7B, up $1.5B , driven by new data center contracts in Texas, with most deliveries expected within 12-18 months.
Cash provided by operating activities was $268.9M, boosted by a $358.4M increase in from new customer deposits.
We are from time to time involved in other various claims, litigation matters, contract negotiations and disputes, and we anticipate that we will be involved in such matters from time to time in the future. The operating hazards inherent in our business expose us to claims and l…
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We are from time to time involved in other various claims, litigation matters, contract negotiations and disputes, and we anticipate that we will be involved in such matters from time to time in the future. The operating hazards inherent in our business expose us to claims and litigation, including personal injury litigation, environmental litigation, contractual litigation with customers, intellectual property litigation, tax or securities litigation and administrative actions by regulatory agencies. Risks associated with litigation include potential negative outcomes, the costs associated with asserting our claims or defending such lawsuits, and the diversion of management’s attention to these matters. We may also be subject to significant legal costs in defending these actions, which we may or may not be able to recoup depending on the results of such claim. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to current proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations.
There have been no material changes in our risk factors as previously disclosed in the Prospectus. For a detailed description of our risk factors, refer to the section titled “Risk Factors” of the Prospectus. The risks and uncertainties described in the Prospectus are not the on…
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There have been no material changes in our risk factors as previously disclosed in the Prospectus. For a detailed description of our risk factors, refer to the section titled “Risk Factors” of the Prospectus. The risks and uncertainties described in the Prospectus are not the only ones facing us. Additional risks and uncertainties not presently known to us, or that we currently see as immaterial, may also adversely affect our business.