Rezolve AI (RZLV) plunges 19.20% in pre-market as mixed financial outlook sparks selloff

Rezolve AI (RZLV) plunged nearly 19.2% in pre-market trading on December 18, 2025, marking one of the steepest declines in its recent history. The sharp selloff followed mixed signals from the company’s latest financial outlook, despite record recurring revenue projections and a rare positive EBITDA forecast.

Earlier in December, the company projected December revenue exceeding $17 million and annual recurring revenue surpassing $200 million, alongside its first period of positive adjusted EBITDA. However, these upbeat forecasts were accompanied by ongoing restructuring efforts and balance sheet challenges, including high debt levels and a reliance on equity financing. Analysts noted that while the revenue growth highlights progress in scaling high-margin AI commerce, the financial risks—such as negative equity and maturing debt—remain unresolved.

Investor sentiment appears divided, with recent volatility underscoring the tension between optimism over recurring revenue and concerns about capital structure sustainability. The stock had already seen a 9.77% seven-day decline before the latest drop, reflecting cautious market reactions to the company’s aggressive growth strategy and debt management hurdles. Despite the bearish move, some analysts argue the decline may present an entry point, though valuation uncertainty persists given the wide range of fair value estimates from the investing community.