Research Frontiers (REFR) AI Stock Analysis

• Market Cap: $48.45M
• Dividend Yield: N/A
• Average Volume (3M): 54.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• 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: 1.14
• 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: 49 Neutral
• Price Target: $2.00 ▲(35.14% Upside)

Research Frontiers' stock score is primarily impacted by its financial performance challenges, including persistent net losses and negative cash flow. The earnings call provided some optimism with positive developments in royalties and product launches, but these are offset by valuation concerns due to a negative P/E ratio. Technical analysis shows moderate strength, but not enough to significantly boost the overall score.

Positive Factors

Strong Industry Interest

The growing interest in SPD-SmartGlass at industry summits indicates a solid market demand, which could drive future revenue growth and enhance market position.

Debt-Free Financial Position

A debt-free status provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Successful Product Launches

The successful launch of new products, like the architectural retrofit system, expands the company's product offerings and opens new revenue streams in diverse markets.

Negative Factors

Persistent Net Losses

Ongoing net losses and negative cash flow indicate financial instability, which could hinder the company's ability to sustain operations and invest in growth.

Impact of Licensee Bankruptcy

The bankruptcy of a key licensee disrupts revenue streams and highlights dependency risks, potentially affecting the company's financial performance and market reputation.

Challenges in Automotive Sector

Slow growth in the automotive sector, a key market for SPD technology, could limit revenue potential and delay the company's expansion plans.

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: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.48 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.75, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 17.33 is Positive, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MIND	60 Neutral	$67.51M	20.12	9.37%	―	2.21%	-15.60%
CPSH	60 Neutral	$54.66M	-78.08	-3.84%	―	38.22%	70.68%
REFR	49 Neutral	$48.45M	-26.33	-87.36%	―	-16.49%	-59.21%
NEON	49 Neutral	$34.40M	3.77	38.72%	―	-48.54%	―
ODYS	46 Neutral	$52.66M	-3.01	-65.21%	―	-15.76%	-25.27%

Research Frontiers Corporate Events

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.