Shares of Rezolve AI (RZLV 1.61%) soared sky-high on Wednesday morning, boosted by a strong earnings report. The big gains didn't last long, though. After peaking at a 25.1% overnight jump just after the opening bell, Rezolve AI's stock fell back to a milder 2.8% gain by 1:15 p.m. ET.
Rezolve AI's morning surge by the numbers
Rezolve AI's sales skyrocketed to $6.3 million in the first half of fiscal year 2025, far above the $1.2 million reported in the same period of 2024. On the bottom line, unadjusted net losses increased from $0.09 to $0.25 per share.
Investors shrugged off the deeply unprofitable net income line to focus on Rezolve AI's surging sales instead. The company added more support for that approach when it unveiled a $90 million total of annual recurring revenue (ARR) year-to-date. Guidance targets set the year-end ARR expectation to "at least $150 million," with room for upside surprises.
Image source: Getty Images.
The AI ambitions are maybe too huge
As might be expected of a company with "AI" in the name, Rezolve AI focuses on artificial intelligence. Its flagship product is the brainpowa platform, a large language model (LLM) tailored to boost clients' e-commerce businesses. The $150 million ARR target sure looks ambitious, but the optimism doesn't end there. Management also expects to hit ARR of $500 million in 2026.
The stock may be worth a cautious nibble if Rezolve AI can deliver on these lofty promises, but those targets look like a stretch. Today, Rezolve AI shares are trading at 8.1 times the $150 million annual revenue target. That would be reasonable for a proven tech giant with a history of large-scale operations. I'm not so sure about Rezolve AI's loose forecast for high-octane growth.
I'll watch this promising agentic AI stock from the sidelines for a few more half-year reports.
