Research Frontiers (REFR) AI Stock Analysis

• Market Cap: $30.04M
• Dividend Yield: N/A
• Average Volume (3M): 54.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• 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: 34,748,222
• 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: 26.39
• Enterprise Value/Gross Profit: 27.54
• Enterprise Value/Ebitda: -15.25
• 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: 44 Neutral
• Price Target: $0.78 ▼(-38.90% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is held down primarily by weak financial performance (negative and worsening operating cash flow, fragile profitability quality, and higher leverage) and a bearish technical setup (below key moving averages with negative MACD). The earnings call provides a modest offset due to improved balance-sheet position and a broader commercial pipeline, but near-term revenue and collections remain uncertain and valuation support is limited due to losses.

Positive Factors

Diversified OEM Pipeline

A broader, multi-OEM pipeline reduces single-customer concentration and raises the probability of multi-program royalty streams as projects move into production. Over a 2–6 month horizon, validated OEM launches and high-volume quotations materially increase the chance of sustained royalty revenue once integration timelines complete.

Product and Technical Advances

Technical progress (neutral/black aesthetics, IR/UV variants, yield gains) addresses OEM selection criteria and reduces per-unit costs. These enduring R&D advances strengthen competitive differentiation and lower barriers to adoption, improving long-term margins and making SPD more attractive across automotive and architectural markets.

Improved Balance Sheet Flexibility

Transitioning to a debt-free position and adding dedicated capital increases financial optionality for commercialization and supports working-capital needs during OEM ramp cycles. Over the medium term this reduces refinancing risk and gives management flexibility to support licensee transitions and commercialization investments.

Negative Factors

Persistent Negative Cash Flow

Sustained negative operating cash flow indicates the business cannot self-fund commercialization and remains dependent on external funding or equity dilution. If OEM royalties do not materialize on schedule, continued cash burn could force recurring financing, diluting shareholders and constraining long-term execution.

Elevated Historical Leverage and Balance-Sheet Risk

A prior sharp increase in leverage reduced balance-sheet flexibility and raised refinancing and dilution risk. Even with recent corrective steps, the historical erosion of equity and reliance on external capital highlight vulnerability to funding shocks or delayed royalty receipts as programs transition into production.

Volatile Revenue and Weak Profitability

Inconsistent top-line trends and negligible gross profit point to fragile earnings quality and limited operating leverage. Because Research Frontiers earns royalties tied to partner commercialization, sustained revenue growth depends on partner execution; prolonged volatility impairs cash generation and long-term profitability.

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 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 patents, know-how, and trademarks to a network of partners that may include film manufacturers (who produce the SPD light-control film), glass and glazing companies (who laminate the film into finished glass/plastic panels), and OEMs or integrators (who incorporate finished panels into vehicles, buildings, or other products). Revenue is therefore largely driven by royalty income based on the volume and value of SPD products sold into end markets (notably automotive and architectural). In addition to recurring royalties, the company may also receive other licensing-related payments (e.g., license fees or similar contractual payments) when entering into or maintaining licensing arrangements; if specific terms or amounts are not publicly available for a given agreement, null. The company’s earnings are significantly influenced by the pace of adoption of SPD smart glass by OEM programs (especially automotive model launches), the production volumes achieved by its manufacturing partners, and the commercialization success of products that incorporate SPD technology.

Research Frontiers Financial Statement Overview

Summary

Fundamentals remain weak: volatile/declining revenue, minimal gross profit and only near-breakeven reported profitability, while operating cash flow and free cash flow are consistently negative and cash burn worsened in 2025. Balance-sheet risk is elevated due to the sharp increase in debt-to-equity as equity fell.

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: Positive
• 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 0.99, above the 50-day MA of 1.10, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.91 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	$76.55M	354.27	9.95%	―	2.21%	-15.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ODYS	58 Neutral	$108.30M	47.70	-53.09%	―	-15.76%	-25.27%
NEON	52 Neutral	$24.34M	3.44	50.99%	―	-48.54%	―
CPSH	52 Neutral	$68.01M	110.94	2.42%	―	38.22%	70.68%
REFR	44 Neutral	$30.04M	-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.