Rezolve Ai Investor Day: Financial Overview - REZOLVE AI PLC

Financial Performance:

• H1 2026 revenue reached $130.8 million, representing nearly 2,000% year-over-year growth compared to $6.3 million in H1 2025; total 2025 revenue was $46.8 million.
• Q1 2026 (90 days) generated $60 million, exceeding the entirety of 2025 revenue.
• H1 2026 Gross Profit (GP) was $63.9 million, a significant increase from $6 million in the same period of 2025.
• Reported operating loss was $128.1 million, but Adjusted EBITDA was only -$32.6 million (vs. -$17.7 million in H1 2025).
• The reported loss includes $41.5 million in non-cash share-based compensation and $20.4 million in depreciation/amortization.
• Adjusted EBITDA margin improved by 256 percentage points year-over-year to -24.9% in H1 2026.
• Company held $100.5 million in cash (including restricted cash) as of June 2026.
• Core software gross margin is 90%+, while the blended gross margin currently sits at 48.9% due to lower-margin professional services and acquired loyalty business (Reward).

Guidance and Future Outlook:

• Targeting break-even Adjusted EBITDA by the end of H1 2027, implying a $24.9 million margin improvement from current levels.
• Projecting recurring operating cash outflows of approximately $20 million in H2 2027.
• Expecting ~$60 million in annualized cost reductions to be realized through efficiency initiatives.
• Long-term trajectory involves shifting revenue mix toward higher-margin SaaS, platform licensing, and recurring fees, reducing reliance on professional services.
• Commitment to continue investing in key product lines (Resolve Pay, Resolve Reward, Brainpower, Underlying Infrastructure, Resolve Insight, Resolve Commerce) without jeopardizing profitability goals.

Business Segments and Product Lines:

• Installed base of enterprise customers grew from ~100 in early 2025 to over 1,000 currently.
• Distribution network expanded to include partners Microsoft, Google, TCS, Tech Mahindra, and newly announced MasterCard.
• Strategy focuses on "land, expand, and deepen" relationships with the 1,000+ enterprise customer base to drive expansion revenue.
• Professional services organization (700 staff) transitioning lower-margin work to implementation partners (e.g., TCS) to allow internal focus on core SaaS technology.
• "Agentic infrastructure layer" recently introduced, enabling potential new licensing opportunities for the technology stack.
• Acquired Reward business (loyalty) integrated in February 2025, contributing to revenue scale but structurally lowering blended margins temporarily.

Market and Competitive Landscape:

• Six analysts covering the company with "Buy" or "Strong Buy" ratings; average price target is $10 per share, indicating strong market confidence.
• Positioned as a hyper-growth enterprise platform leveraging hyperscaler partnerships for distribution.
• Market trend involves shifting from pure software sales to ecosystem-driven models via major technology partners.

Risks and Challenges:

• Current blended gross margins (48.9%) are depressed by lower-margin professional services and acquired loyalty operations; improvement is contingent on mix shift.
• Capital markets constraints: As a UK-listed entity (Englishman in New York), share buyback programs require UK regulatory and court approval, unlike standard US listings.
• One-time costs include fundraising fees, litigation settlements, M&A integration, and restructuring charges, which have impacted recent reported losses.
• Heavy reliance on strategic partnerships (hyperscalers, TCS) for implementation and distribution requires continued strong partner performance.

Management Commentary and Tone:

• Tone is highly confident and focused on the transition from "hyper-growth" to "profitable growth."
• Management emphasized that the "expensive part" of building the company (capital-intensive growth phase) is behind them, with the most valuable growth phase ahead.
• CFO highlighted the distinction between reported GAAP losses (including non-cash items and one-off restructuring costs) and underlying economic performance (Adjusted EBITDA).
• COO framed the last 18 months as a successful foundation-building period for an operating platform, shifting focus now to monetizing the installed base.

Analyst Questions and Answers:

• Note: The provided transcript text concludes immediately after the closing remarks and does not contain the Q&A session details.

Other Key Points:

• Announced approval for a share buyback program by the UK court, enabling potential future buybacks if market conditions are favorable.
• Five primary areas identified for cost reduction: cloud/tech capacity optimization, elimination of duplicate assets from acquisitions, office consolidation, reduction of legal/acquisition fees, and ROI-based marketing focus.
• Revenue model is transitioning from one-time orders to recurring platform and licensing fees to improve unit economics and operating leverage.