Rezolve AI PLC (RZLV) has outlined a cost reduction program targeting approximately $60 million in annualized savings — a figure measured as a run-rate over a full year once the reductions are in place — with management expecting the measures to sharply reduce cash burn in the second half of 2026 and underpin a push toward positive Adjusted EBITDA by mid-2027. The program comes as the company continues integrating operations from multiple previous acquisitions, a backdrop in which overlapping spending accumulated across acquired businesses has become a primary savings lever.

RZLV shares closed at $2.28, down 2.56% on the session, before gaining 0.42% in after-hours trading.

Rezolve AI Targets Lower Costs and Positive Adjusted EBITDA

Rezolve expects the cost program to support positive Adjusted EBITDA as it exits the first half of 2027. The company specifically targets profitability for the month ending June 30, 2027 — a milestone that does not represent positive Adjusted EBITDA across the full first half. Adjusted EBITDA is a non-GAAP measure that excludes items such as interest, taxes, depreciation and amortization, so the target marks a shift in underlying operating economics rather than full statutory profitability.

Management has already reduced acquisition-related spending, marketing costs and external legal expenses. The company also plans to eliminate overlapping expenses inherited through previous acquisitions, and expects recurring operating costs to decline as integration work continues.

Rezolve is additionally shifting more professional services work to external partners. TCS and Tech Mahindra will support the transition as the company restructures its delivery model, an approach management expects to improve gross margins while supporting future revenue growth. Partner-led delivery of this type is a common structure in enterprise software, typically tying service-delivery costs to project volumes rather than to fixed internal headcount.

Restructuring Program Spans Cost Areas

The restructuring program targets five areas: cloud infrastructure, staffing, professional services, property and discretionary spending. Rezolve plans to optimize technology capacity, renegotiate selected supplier arrangements and consolidate overlapping services across its operating businesses.

Staffing changes will remove duplicated roles created through previous acquisitions, with remaining resources aligned to customer demand and expected revenue opportunities. The company has already completed some office closures and workforce reductions during integration.

Property consolidation will address surplus office space inherited through acquisitions. Marketing spending will be redirected toward activities with measurable commercial returns, and management plans to apply tighter controls when weighing additional acquisitions and other discretionary outlays.

Lower Cash Burn Underpins Profitability Plan

Rezolve recorded several exceptional cash expenses during the first half of 2026, including fundraising fees, litigation settlements, office closures and acquisition integration costs. As these expenses recede, management expects second-half cash usage to fall substantially from first-half levels. Because those first-half outflows were tied to discrete events, the company's expectation centers on the second-half comparison rather than on the absolute first-half figure.

The company reported an Adjusted EBITDA margin of negative 24.9% in the first half. Reaching a positive margin by June 2027 would improve that measure by at least 24.9 percentage points. Operating cash-flow breakeven remains a separate financial milestone under the company's plan.

Even as it curbs broader expenses, Rezolve will continue funding its product portfolio — Rezolve Commerce, Rezolve Pay, Rezolve Reward and Rezolve Insight — along with its brainpowa platform and supporting infrastructure.

The company plans to provide additional business updates at its Investor Day on October 6, 2026, the next scheduled update point named by management.

Source: Blockonomi