Research Frontiers Inc. (REFR)
NASDAQ:REFR
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Research Frontiers
(NASDAQ:REFR)
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Rating:45Neutral
Price Target:
$0.74
▼(-42.13% Downside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by poor financial performance (sharp TTM revenue decline, deeply negative margins, and persistent negative operating/free cash flow). Technicals also point to a weak downtrend (price below major moving averages with negative MACD), while the earnings call adds only modest support via improved cash and ongoing program progress but with meaningful licensee-related uncertainty. Valuation provides limited offset given the negative P/E and lack of dividend yield.
Positive Factors
Licensing-based recurring royalties
A licensing model that earns royalties from third-party manufacturers and OEMs is capital-light and scalable. Recurring royalty streams align revenue with end-market adoption, reduce manufacturing capex burden, and provide long-term leverage to product volume growth if SPD adoption expands across automotive and architectural markets.
Negative Factors
Sharp revenue decline and persistent losses
A ~50% TTM revenue drop combined with deeply negative margins indicates structural profitability weakness. High operating costs continue to overwhelm gross profit, limiting reinvestment capacity and increasing the likelihood of recurring financing or dilution if sustained, which undermines long-term financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Licensing-based recurring royalties
A licensing model that earns royalties from third-party manufacturers and OEMs is capital-light and scalable. Recurring royalty streams align revenue with end-market adoption, reduce manufacturing capex burden, and provide long-term leverage to product volume growth if SPD adoption expands across automotive and architectural markets.
Read all positive factors
Research Frontiers (REFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.37M
Dividend YieldN/A
Average Volume (3M)54.56K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-55.89%
EPS Growth-127.24%
CountryUS
Employees6
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.07
Shares Outstanding34,867,786
10 Day Avg. Volume80,091
30 Day Avg. Volume54,565
Financial Highlights & Ratios
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 Cap0.95
Enterprise Value/Revenue37.26
Enterprise Value/Gross Profit39.77
Enterprise Value/Ebitda-11.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
How the Company Makes Money
Research Frontiers makes money primarily by licensing its SPD-SmartGlass intellectual property to third parties and earning royalties tied to commercial sales of SPD-enabled products. Under its model, the company licenses the right to use its pate...
Research Frontiers Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call conveyed cautious optimism: the company strengthened its balance sheet (cash up ~92.8%, debt-free), production and customer programs continued, and next‑generation black SPD development is progressing — all positive indicators. However, near-term revenue and liquidity were materially impacted by GAAP timing effects and ongoing French rehabilitation proceedings involving a key licensee, and recent licensee liquidations highlight partner volatility. Positives and negatives are both significant and roughly balanced, yielding a cautiously neutral outlook.Positive Updates
Balance Sheet Strengthened — Cash Increased
Cash and cash equivalents rose to approximately $1.28 million as of March 31, 2026 from approximately $664,000 at year-end 2025, an increase of ~92.8%. The company also remains debt-free.
Negative Updates
Reported Revenues Pressured by Accounting Timing and Nonrecurring Items
First quarter reported revenues were negatively affected by the timing of revenue recognition under license agreements and the nonrecurrence of upfront revenue recognized in Q1 2025 (ASC 606 front-loading), making the quarter look weaker from an accounting perspective even though underlying activity was better.
Read all updates
Q1-2026 Updates
Positive
Negative
Balance Sheet Strengthened — Cash Increased
Cash and cash equivalents rose to approximately $1.28 million as of March 31, 2026 from approximately $664,000 at year-end 2025, an increase of ~92.8%. The company also remains debt-free.
Read all positive updates
Company Guidance
The call's guidance emphasized cautious optimism for long-term SPD growth while noting near-term accounting and licensee-driven timing effects: Q1 2026 revenues were depressed by the nonrecurrence of an ASC 606 upfront license payment from Q1 2025 and by GAAP rules that spread minimum annual royalties roughly evenly over four quarters (making Q1 typically lower), although royalties from automotive and aircraft rose sequentially from Q4 2025 to Q1 2026; the company strengthened its balance sheet via a focused financing with long-term accredited investors and ended March 31, 2026 with approximately $1.28 million in cash and cash equivalents (up from ~$664,000 at year‑end 2025, an ≈93% increase) while remaining debt‑free and reporting lower operating and R&D expenses year‑over‑year; operationally, SPD production and R&D (including black SPD and specialized film) continue, the business has products in series production with four OEMs, and a key French court hearing regarding Gauzy Vision Systems is set for May 12, 2026 with potential outcomes ranging from liquidation to approval of a continuation plan that management expects as most likely.Research Frontiers Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 697.79K | 1.12M | 1.34M | 909.60K | 539.69K | 1.26M |
| Gross Profit | 653.80K | 934.57K | 1.07M | -1.45M | 539.69K | 1.26M |
| EBITDA | -2.23M | -1.95M | -1.18M | -1.86M | -2.45M | -1.66M |
| Net Income | -2.39M | -2.05M | -1.31M | -1.91M | -2.67M | -1.85M |
Balance Sheet | ||||||
| Total Assets | 3.08M | 2.25M | 4.04M | 3.85M | 5.37M | 4.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.28M | 664.30K | 1.99M | 2.48M | 4.23M | 3.03M |
| Total Debt | 1.13M | 1.17M | 1.30M | 267.72K | 464.13K | 646.22K |
| Total Liabilities | 1.30M | 1.32M | 1.44M | 332.79K | 569.59K | 762.06K |
| Stockholders Equity | 1.78M | 933.63K | 2.60M | 3.52M | 4.80M | 3.78M |
Cash Flow | ||||||
| Free Cash Flow | -1.45M | -1.33M | -790.44K | -2.30M | -2.18M | -1.81M |
| Operating Cash Flow | -1.45M | -1.33M | -788.82K | -2.30M | -2.18M | -1.80M |
| Investing Cash Flow | -683.00 | -726.00 | -1.62K | 55.59K | 2.69M | -2.78M |
| Financing Cash Flow | 1.38M | 0.00 | 308.67K | 484.50K | 3.45M | 86.26K |
Research Frontiers Technical Analysis
Negative
1.27
Price Trends
0.91
Negative
1.04
Negative
1.32
Negative
Market Momentum
-0.05
Positive
35.26
Neutral
13.61
Positive
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 0.86, above the 50-day MA of 0.91, and below the 200-day MA of 1.32, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.61 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $60.99M | 105.47 | 2.19% | ― | -12.62% | -69.66% | |
54 Neutral | $96.34M | -72.19 | 0.15% | ― | 41.39% | ― | |
48 Neutral | $27.19M | -3.15 | 50.99% | ― | -36.94% | ― | |
45 Neutral | $27.37M | -14.95 | -122.90% | ― | -55.89% | -127.24% | |
43 Neutral | $80.20M | 181.35 | -46.58% | ― | -82.33% | -7.92% |
* Technology Sector Average
REFR
Research Frontiers
0.75
-0.91
-54.82%
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ODYS
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HOLO
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1.61
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Research Frontiers Corporate Events
Private Placements and Financing
Research Frontiers Announces $1.1 Million Private Placement
Positive
Feb 18, 2026
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 ...
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.