ERock, Inc.

Total revenue in Q2 2026 was $39.9 million, up 26% sequentially from $31.7 million in Q1. Power System sales revenue was $26.5 million, up 67% sequentially, while Ongoing services revenue was $13.3 million, down 15% sequentially. Gross profit was $7.4 million, with gross margin of 18.6% and adjusted gross margin of 22.2%. Net loss was $67.7 million versus a $17.2 million net loss in Q1, including a $48.8 million loss on debt extinguishment tied to convertible note conversion and repayment of a $30 million term loan. Adjusted EBITDA was negative $14 million versus negative $12.4 million in Q1. For full-year 2026, management guided to revenue of $435 million to $465 million and adjusted EBITDA of $3 million to $9 million, with about $360 million to $390 million of backlog expected to convert in 2026.

John Carrington said ERock is seeing strong AI-driven demand and is well positioned as customers need speed-to-power solutions amid long turbine lead times and multi-year interconnection queues. He emphasized the company’s vertically integrated model, 99.999% reliability across more than 400 sites, and the differentiation of RockBlock and Granite software, including fast start, low emissions, low noise, and modular deployment. His tone was confident and expansionary, focusing on backlog growth, pipeline growth, and scaling the business without turning away opportunities.

Ian Blakely highlighted the quarter’s revenue mix and the timing shift from earlier-than-expected generator deliveries. He cited $39.9 million of revenue, $7.4 million of gross profit, 18.6% gross margin, 22.2% adjusted gross margin, and adjusted EBITDA of negative $14 million; the net loss included a $48.8 million nonrecurring debt extinguishment charge. On liquidity and capital allocation, he said ERock ended June 30 with $627 million of unrestricted cash, no outstanding debt, an undrawn $250 million credit facility, around $34 million of restricted cash, and only $9 million of year-to-date CapEx, including about $7 million for Hyperion. He also said Hyperion needs less than $10 million of additional CapEx and that the business should turn EBITDA positive in the second half of 2026.

Analysts focused on how firm backlog compares with the broader pipeline, pricing power, capacity additions, and whether the Anthropic deal signaled larger deal sizes going forward. Management said backlog is intentionally firm and that the broader pipeline continues to grow, with pipeline up 3x from Q1 to Q2, while also noting that pricing and gross margin trends are improving, though the benefit will mostly show up in 2028 and beyond because capacity is sold out through 2027 and into early 2028. On capacity, John said expansion decisions are triggered when roughly 65% contracted or more and that ERock can add a 1.2 GW facility in about 12 months for $15 million to $20 million. On deposits and cash conversion, Ian said customer cash is front-end weighted and typically converts to revenue over 1 to 3 quarters, depending on the project.