Research Frontiers (REFR) AI Stock Analysis

• Market Cap: $34.99M
• Dividend Yield: N/A
• Average Volume (3M): 54.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -16.49%
• EPS Growth: -59.21%
• Country: US
• Employees: 6
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 34,648,220
• 10 Day Avg. Volume: 80,091
• 30 Day Avg. Volume: 54,565
• PEG Ratio: -0.39
• Price to Book (P/B): 47.21
• Price to Sales (P/S): 39.31
• P/FCF Ratio: -33.15
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 30.76
• Enterprise Value/Gross Profit: 32.10
• Enterprise Value/Ebitda: -17.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.97 ▼(-24.02% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

Overall score reflects weak financial performance (ongoing cash burn, fragile profitability, and higher leverage) and bearish technicals (below major moving averages with negative MACD). These are partially offset by a more constructive earnings-call outlook highlighting a debt-free position, fresh capital, and a broader commercialization pipeline—though near-term collections and revenue timing remain uncertain.

Positive Factors

Debt-free balance sheet

Management reported the company entered 2026 debt-free and raised $1.1M, which materially reduces near-term refinancing risk and gives working capital to support commercialization and R&D. This stronger liquidity footing improves the firm’s ability to fund product ramps and licensee support over coming quarters.

Broader OEM pipeline

Validated production with multiple OEMs and a record pipeline creates diversified royalty prospects. Multiple high-volume quotations and specialty programs raise the probability of multi-year royalty streams as select projects move into production, reducing single-customer concentration risk over time.

IP-driven licensing model

Research Frontiers’ licensing model leverages patented SPD technology and decades of investment, creating an asset-light, scalable revenue model. Strong IP and long-term R&D support enable margin expansion via royalties as manufacturing partners scale, while limiting capital intensity for the company itself.

Negative Factors

Negative cash generation

Consistently negative operating and free cash flows indicate persistent cash burn and reliance on external financing. Continued negative cash generation raises the probability of future dilutive raises or constrained investment in commercialization if royalty inflows do not materialize as programs ramp.

Balance-sheet fragility

Material rise in leverage and prior equity erosion reduce financial flexibility and raise refinancing and dilution risk if operating losses persist. Even with recent debt elimination, the history of rising leverage signals vulnerability to funding shocks during multi-quarter royalty lags.

Revenue timing and concentration risk

Revenue depends on OEM program transitions from quotation to production, a multi-quarter to multi-year process. Coupled with prior licensee bankruptcies and Gauzy-related collection delays, this creates structural timing risk for royalties and makes revenue realization lumpy and contingent on partners’ manufacturing continuity.

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

Financials are weak overall: revenue is volatile and recently declined, profitability lacks durability (minimal gross profit/limited EBITDA margin), cash flow is consistently negative with worsening operating cash burn in 2025, and leverage rose materially as equity fell—raising funding and dilution risk despite assets exceeding debt.

Income Statement

Revenue has been volatile and recently declined (2025 down ~9% vs. 2024), following uneven growth in prior years. Profitability remains weak: 2024 showed a steep net loss with deeply negative margins, while 2025 shows near-breakeven reported profitability but with essentially no gross profit and minimal EBITDA margin (~1%), suggesting limited operating leverage and fragile earnings quality. Overall, the income profile reflects inconsistent top-line momentum and an inability to produce sustainable profits.

Balance Sheet

Leverage has increased materially: debt-to-equity rose from ~0.50 (2024) to ~1.25 (2025) as equity fell sharply, reducing balance-sheet flexibility. Total debt is now larger than equity, elevating refinancing and dilution risk if losses or cash burn persist. A positive offset is that total assets still exceed total debt, but returns on equity have been poor historically (negative in prior years and not meaningfully positive in 2025).

Cash Flow

Cash generation is a clear weakness, with operating cash flow and free cash flow consistently negative across the period. 2025 operating cash flow worsened to about -$1.33M versus -$0.79M in 2024, indicating rising cash burn despite the appearance of improved earnings. Free cash flow improved versus 2024 on a growth basis, but it remains meaningfully negative, implying continued dependence on external funding.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.12M	1.34M	909.60K	539.69K	1.26M
Gross Profit	934.57K	1.07M	-1.45M	539.69K	1.26M
EBITDA	-1.95M	-1.18M	-1.86M	-2.45M	-1.66M
Net Income	-2.05M	-1.31M	-1.91M	-2.67M	-1.85M
Balance Sheet
Total Assets	2.25M	4.04M	3.85M	5.37M	4.55M
Cash, Cash Equivalents and Short-Term Investments	664.30K	1.99M	2.48M	4.23M	3.03M
Total Debt	1.17M	1.30M	267.72K	464.13K	646.22K
Total Liabilities	1.32M	1.44M	332.79K	569.59K	762.06K
Stockholders Equity	933.63K	2.60M	3.52M	4.80M	3.78M
Cash Flow
Free Cash Flow	-1.33M	-790.44K	-2.30M	-2.18M	-1.81M
Operating Cash Flow	-1.33M	-788.82K	-2.30M	-2.18M	-1.80M
Investing Cash Flow	-726.00	-1.62K	55.59K	2.69M	-2.78M
Financing Cash Flow	0.00	308.67K	484.50K	3.45M	86.26K

Research Frontiers Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.27 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.14, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$77.64M	354.27	9.95%	―	2.21%	-15.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEON	56 Neutral	$27.86M	1.03	50.99%	―	-48.54%	―
CPSH	52 Neutral	$67.65M	110.94	2.42%	―	38.22%	70.68%
ODYS	52 Neutral	$98.31M	-4.16	-56.38%	―	-15.76%	-25.27%
REFR	45 Neutral	$34.99M	-14.39	-122.90%	―	-16.49%	-59.21%

Research Frontiers Corporate Events

Research Frontiers Announces $1.1 Million Private Placement

On February 18, 2026, Research Frontiers entered into subscription agreements with private accredited investors, including family members of a company director and the owner of a licensee producing SPD-SmartGlass products, for a private placement of 1.1 million common shares at $1.00 per share, matching the February 13, 2026 closing price. The transaction provides the company with $1.1 million in proceeds and includes one warrant per share, exercisable at step-up prices between $1.10 and $1.50 through February 28, 2031, with all shares issued in the placement and upon future warrant exercise remaining unregistered and subject to at least a six-month holding period, which may affect liquidity considerations for participating investors.

The most recent analyst rating on (REFR) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Research Frontiers stock, see the REFR Stock Forecast page.