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Research Frontiers Inc. (REFR)
NASDAQ:REFR
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Research Frontiers
(NASDAQ:REFR)
Rating:44Neutral
Price Target:
$1.50
▲(11.94% Upside)
Research Frontiers (REFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.43M
Dividend YieldN/A
Average Volume (3M)33.37K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-4.46%
EPS Growth-17.79%
CountryUS
Employees6
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding33,648,220
10 Day Avg. Volume29,786
30 Day Avg. Volume33,372
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue45.11
Enterprise Value/Gross Profit55.34
Enterprise Value/Ebitda-34.23
Forecast
1Y Price Target
$1.50Price Target Upside11.94% Upside
Rating ConsensusHold
Number of Analyst Covering1
Research Frontiers Business Overview & Revenue Model
Company DescriptionResearch Frontiers Inc. (REFR) is a technology company that specializes in the development and commercialization of suspended particle devices (SPDs) used for light control in various applications. The company primarily operates in the sectors of smart glass technology and energy-efficient building solutions. Its core products include SPD-SmartGlass, which is used in architectural, automotive, and aircraft applications to provide dynamic shading, privacy, and energy savings.
How the Company Makes MoneyResearch Frontiers generates revenue primarily through licensing its patented SPD technology to manufacturers of smart glass products. The company charges licensing fees and royalties based on the sales of products that incorporate its technology. Key revenue streams include partnerships with major glass manufacturers and automotive companies that integrate SPD technology into their products. Additionally, Research Frontiers may earn revenue through joint ventures or collaborations that focus on research and development of new applications for its technology.
Research Frontiers Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in the automotive sector and potential growth in the architectural market, despite challenges from a licensee bankruptcy and accounting charges. The company's successful transition to a new supplier for Ferrari and strong Q1 revenue growth were positive indicators. However, concerns remain regarding the impact of accounting charges and the underperformance of small caps.Q2-2025 Updates
Positive Updates
Strong Automotive Sector Performance
Sales of SPD SmartGlass sunroofs to Cadillac in Q2 2025 were substantial multiples higher than Q4 2024 and Q1 2025 combined. Continued sales of SPD SmartGlass roofs for Mercedes and McLaren also occurred in the first half of 2025.
High Revenue Growth in Q1
Revenue growth of 79% from Q1 2025 over the prior year and 214% from the prior quarter, driven by increased demand for SPD SmartGlass in the automotive sector.
New Supplier for Ferrari
Transition to a new supplier for Ferrari was successful, with additional production for Ferrari already started by this licensee.
Expansion into Architectural Market
Progress in the architectural window project with LTI Smart Glass and AIT, with samples submitted for energy efficiency testing.
Negative Updates
Bankruptcy of European Licensee
Royalty income was down this quarter due to the bankruptcy filing of the European licensee supplying Ferrari. The company was unable to book any royalty income from them in Q2 2025.
Impact of Accounting Charges
Onetime and noncash charges related to the bankruptcy and replacement of a licensee, as well as options issued last year, negatively impacted the accounting results for Q2 2025.
Concerns Over Small Cap Performance
The Russell 2000 continues to lag behind the NASDAQ 100, indicating that small caps, including the company, are still underperforming in the market.
Company Guidance
During the second quarter of 2025, Research Frontiers experienced a challenging accounting period, largely due to onetime and noncash charges from the bankruptcy of a European licensee supplying Ferrari and the transition to a new supplier. Despite these setbacks, operational performance improved with increased economic activity and higher sales of SPD SmartGlass, particularly in the automotive sector. Sales to Cadillac multiplied significantly compared to previous quarters, although royalty income was affected by the temporary supplier disruption. The company anticipates additional royalty income in the third and fourth quarters of 2025 as new automotive projects commence and the replacement supplier for Ferrari begins contributing financially. Overall, the company reported a 79% revenue growth in Q1 2025 compared to the previous year and a 214% increase from Q4 2024, driven by demand in automotive and aircraft markets. Research Frontiers remains debt-free with approximately $1.3 million in cash and cash equivalents as of June 30, 2025.Research Frontiers Financial Statement Overview
Summary
Research Frontiers is experiencing some positive trends, such as improved EBIT and revenue growth. However, persistent net losses, negative free cash flow, and declining equity are challenges that need addressing. Balancing revenue growth with cost management will be key 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.35
Negative
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.40
Negative
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.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22M | 1.34M | 909.60K | 539.69K | 1.26M | 828.45K |
| Gross Profit | 996.35K | 1.07M | -1.45M | 364.53K | -1.26M | -1.95M |
| EBITDA | -1.61M | -1.18M | -1.86M | -2.45M | -1.82M | -2.51M |
| Net Income | -1.76M | -1.31M | -1.91M | -2.67M | -1.85M | -2.34M |
Balance Sheet | ||||||
| Total Assets | 3.17M | 4.04M | 3.85M | 5.37M | 4.55M | 6.20M |
| Cash, Cash Equivalents and Short-Term Investments | 1.27M | 1.99M | 2.48M | 4.23M | 3.03M | 4.77M |
| Total Debt | 1.23M | 1.30M | 267.72K | 464.13K | 646.22K | 812.60K |
| Total Liabilities | 1.37M | 1.44M | 332.79K | 569.59K | 762.06K | 872.28K |
| Stockholders Equity | 1.80M | 2.60M | 3.52M | 4.80M | 3.78M | 5.33M |
Cash Flow | ||||||
| Free Cash Flow | -932.23K | -790.44K | -2.30M | -2.18M | -1.81M | -2.31M |
| Operating Cash Flow | -930.55K | -788.82K | -2.30M | -2.18M | -1.80M | -2.25M |
| Investing Cash Flow | -1.68K | -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
Negative
1.34
Price Trends
1.59
Negative
1.53
Negative
1.54
Negative
Market Momentum
-0.07
Positive
35.44
Neutral
32.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REFR, the sentiment is Negative. The current price of 1.34 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.59, and below the 200-day MA of 1.54, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REFR.
Research Frontiers Risk Analysis
Research Frontiers disclosed 14 risk factors in its most recent earnings report. Research Frontiers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Research Frontiers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $50.11M | ― | -11.74% | ― | 7.47% | -133.39% | |
65 Neutral | $80.65M | 52.21 | 12.53% | ― | 22.59% | ― | |
64 Neutral | $35.01M | 162.25 | 0.56% | ― | 26.84% | -45.92% | |
61 Neutral | $35.45B | 8.20 | -10.60% | 1.91% | 8.56% | -9.51% | |
52 Neutral | $29.10M | ― | -14.45% | ― | -7.58% | -69.20% | |
51 Neutral | $26.19M | 6.41 | -9.26% | ― | -14.49% | -149.37% | |
44 Neutral | $45.43M | ― | -73.36% | ― | -4.46% | -17.79% |
* Technology Sector Average
Performance Comparison
REFR
Research Frontiers
1.34
-0.82
-37.96%
DAIO
Data I/O
3.05
0.68
28.69%
LGL
LGL Group
6.67
0.73
12.29%
MIND
MIND Technology
10.26
6.73
190.65%
NSYS
Nortech Systems
9.06
-2.77
-23.42%
CPSH
CPS Technologies
3.52
2.16
158.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.