Research Frontiers (REFR) AI Stock Analysis

• Market Cap: $58.88M
• Dividend Yield: N/A
• Average Volume (3M): 54.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -16.49%
• EPS Growth: -59.21%
• Country: US
• Employees: 6
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 33,648,220
• 10 Day Avg. Volume: 80,091
• 30 Day Avg. Volume: 54,565
• PEG Ratio: 1.39
• Price to Book (P/B): 22.01
• Price to Sales (P/S): 42.92
• P/FCF Ratio: -72.52
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 44.93
• Enterprise Value/Gross Profit: 44.93
• Enterprise Value/Ebitda: -32.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $2.00 ▲(4.71% Upside)

Research Frontiers' stock score is primarily influenced by its financial challenges, including persistent net losses and negative cash flow. Despite these issues, the stock shows positive technical momentum, which is a significant factor in its overall score. The earnings call provided a mixed outlook, with both positive developments and notable challenges. Valuation remains a concern due to the negative P/E ratio and lack of dividends.

Positive Factors

Debt-Free Status

Maintaining a debt-free status enhances financial flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.

Product Launch Success

Successful product launches, especially in architectural applications, can drive future revenue growth and strengthen market position in the smart glass industry.

Revenue Growth in Royalties

Growth in royalties indicates increasing adoption of SPD technology, which can lead to sustained revenue growth as more manufacturers integrate these solutions.

Negative Factors

Licensee Bankruptcy Impact

Licensee bankruptcy disrupts revenue streams and highlights dependency risks, potentially affecting financial stability until new agreements are secured.

Automotive Sector Challenges

Slow growth in the automotive sector may hinder overall revenue expansion, as this market is crucial for the adoption of SPD technology.

Negative Cash Flow

Persistent negative cash flow indicates operational challenges, limiting the company's ability to invest in growth and potentially affecting long-term viability.

Research Frontiers Business Overview & Revenue Model

Company Description

Research Frontiers Incorporated develops and markets technology and devices to control the flow of light worldwide. The company develops and licenses suspended particle device (SPD-Smart) light-control technology to companies that manufacture and market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs. Its SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products. The company serves architectural, automotive, marine, and aerospace and appliance applications. Research Frontiers Incorporated was incorporated in 1965 and is headquartered in Woodbury, New York.

How the Company Makes Money

Research Frontiers generates revenue primarily through licensing its SPD technology to manufacturers and developers who integrate it into their products. The company earns royalties based on sales of SPD products that utilize its technology. Key revenue streams include partnerships with leading automotive and architectural firms, which leverage SPD technology for high-end vehicles and smart building applications. Additionally, Research Frontiers may receive upfront licensing fees and ongoing royalties, contributing to its financial stability and growth.

Research Frontiers Financial Statement Overview

Summary

Research Frontiers shows some positive trends, such as improved EBIT and revenue growth. However, persistent net losses, negative free cash flow, and declining equity are significant challenges. Balancing revenue growth with cost management is crucial for future financial stability.

Income Statement

Research Frontiers has shown a decrease in losses over the last year, with a notable improvement in EBIT and EBITDA. However, the company still faces challenges with negative net income and low revenue levels compared to historical performance. The recent revenue growth is a positive sign but needs to be sustained to improve the financial health of the company.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, the decrease in stockholders’ equity over the years is a concern. The equity ratio remains stable, suggesting that the company retains a reasonable level of equity relative to its assets, which provides a cushion against liabilities.

Cash Flow

The company has shown some improvement in free cash flow, but it remains negative, indicating ongoing operational challenges. The operating cash flow to net income ratio is not favorable, and free cash flow growth is still needed. Cash management remains a critical area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23M	1.34M	909.60K	539.69K	1.26M	828.45K
Gross Profit	1.23M	1.07M	-1.45M	539.69K	1.26M	-1.95M
EBITDA	-1.70M	-1.18M	-1.86M	-2.45M	-1.66M	-2.51M
Net Income	-1.89M	-1.31M	-1.91M	-2.67M	-1.85M	-2.34M
Balance Sheet
Total Assets	2.77M	4.04M	3.85M	5.37M	4.55M	6.20M
Cash, Cash Equivalents and Short-Term Investments	1.13M	1.99M	2.48M	4.23M	3.03M	4.77M
Total Debt	1.20M	1.30M	267.72K	464.13K	646.22K	812.60K
Total Liabilities	1.27M	1.44M	332.79K	569.59K	762.06K	872.28K
Stockholders Equity	1.50M	2.60M	3.52M	4.80M	3.78M	5.33M
Cash Flow
Free Cash Flow	-817.60K	-790.44K	-2.30M	-2.18M	-1.81M	-2.31M
Operating Cash Flow	-816.13K	-788.82K	-2.30M	-2.18M	-1.80M	-2.25M
Investing Cash Flow	-1.46K	-1.62K	55.59K	2.69M	-2.78M	-52.82K
Financing Cash Flow	300.00K	308.67K	484.50K	3.45M	86.26K	486.26K

Research Frontiers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFR, the sentiment is Positive. The current price of 1.91 is above the 20-day moving average (MA) of 1.80, above the 50-day MA of 1.72, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 87.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REFR.

Research Frontiers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIND	66 Neutral	$70.77M	16.31	16.05%	―	27.70%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CPSH	58 Neutral	$63.29M	-86.70	-3.84%	―	38.22%	70.68%
REFR	55 Neutral	$58.88M	-33.46	-87.36%	―	-16.49%	-59.21%
NEON	48 Neutral	$47.33M	-7.46	38.72%	―	-48.54%	―
ODYS	45 Neutral	$46.22M	-2.67	-65.21%	―	-15.76%	-25.27%

Research Frontiers Corporate Events

Research Frontiers’ Earnings Call: Growth Amid Challenges

The recent earnings call for Research Frontiers presented a balanced mix of optimism and caution. On the positive side, the company reported growth in royalties, successful product launches, and a robust financial standing. However, challenges such as the impact of a licensee’s bankruptcy, slow growth in the automotive sector, and communication issues with partners were also highlighted.

Research Frontiers Reports Q3 2025 Earnings

Research Frontiers Incorporated, a company specializing in the development and marketing of light-control technology, particularly suspended particle devices (SPDs), operates in the architectural, automotive, marine, aerospace, and appliance sectors. In its latest earnings report for the quarter ended September 30, 2025, the company highlighted a decrease in fee income compared to the previous year, primarily due to lower royalties from the automotive and aircraft markets and a bankruptcy filing by a significant European licensee. Despite this, the company anticipates increased revenue as new car models and other products using its SPD-SmartGlass technology are introduced to the market. Key financial metrics showed an operating loss of $1.36 million for the nine months ended September 30, 2025, with total expenses rising due to higher marketing, professional fees, and non-cash compensation costs. The company also recorded a net loss of $1.28 million for the same period, reflecting challenges in the current market environment. Looking ahead, Research Frontiers remains focused on expanding its market opportunities and adoption rates for its technology, with expectations of increased royalty income from new automotive and architectural projects.

Research Frontiers VP of Aerospace Retires

On September 15, 2025, Research Frontiers announced the retirement of Michael R. LaPointe, Vice President of Aerospace Products, who significantly contributed to the expansion of SPD-Smart technology in aerospace applications. Under his leadership, SPD-Smart Electronically Dimmable Windows (EDWs) became a standard in various aircraft, enhancing passenger comfort and operational efficiency. His efforts have led to widespread adoption by major OEMs and airlines, solidifying Research Frontiers’ position in the aerospace industry.

The most recent analyst rating on (REFR) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Research Frontiers stock, see the REFR Stock Forecast page.

Research Frontiers’ Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for Research Frontiers reflected a mixed sentiment among stakeholders. While the company celebrated notable achievements such as increased sales and successful supplier transitions, these were counterbalanced by financial challenges stemming from onetime charges and a decline in royalty income. Despite promising strategic moves, the financial impact from a bankruptcy overshadowed these developments, leaving investors with a cautious outlook.