Research Frontiers Inc. (REFR)
NASDAQ:REFR
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Research Frontiers
(NASDAQ:REFR)
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Rating:43Neutral
Price Target:
$0.72
▼(-42.99% Downside)
Action:Reiterated
Date:06/06/26
The score is primarily held down by weak financial performance—deep losses, a sharp TTM revenue decline, and persistent negative operating/free cash flow. Technicals also point to a sustained downtrend. These are only partly offset by a somewhat improved liquidity picture and cautiously neutral earnings-call tone, while Nasdaq deficiency notices add incremental risk.
Positive Factors
Licensing-based IP business model
Research Frontiers’ core licensing model is capital-light and scalable: owning SPD IP allows the company to earn royalties from multiple manufacturers and integrators without heavy manufacturing capex. Over 2–6 months this supports durable revenue leverage as partner volumes scale.
Negative Factors
Structural unprofitability and revenue decline
Deep, persistent losses and a steep TTM revenue decline undermine the company’s ability to self-fund growth or absorb program delays. Over a multi-month horizon this reduces flexibility to invest in commercialization or R&D and elevates reliance on external financing or partner milestone timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Licensing-based IP business model
Research Frontiers’ core licensing model is capital-light and scalable: owning SPD IP allows the company to earn royalties from multiple manufacturers and integrators without heavy manufacturing capex. Over 2–6 months this supports durable revenue leverage as partner volumes scale.
Read all positive factors
Research Frontiers (REFR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.15M
Dividend YieldN/A
Average Volume (3M)54.56K
Price to Earnings (P/E)―
Beta (1Y)0.37
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 Cap1.02
Enterprise Value/Revenue38.26
Enterprise Value/Gross Profit40.84
Enterprise Value/Ebitda-11.96
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 primarily makes money by licensing its SPD technology and collecting royalties tied to the sale of products that incorporate SPD-based films or laminates (e.g., electronically dimmable glazing used in automotive roofs/windows, a...
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
0.86
Negative
0.97
Negative
1.27
Negative
Market Momentum
-0.03
Negative
34.78
Neutral
25.19
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 0.76, above the 50-day MA of 0.86, and below the 200-day MA of 1.27, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.19 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
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% | |
57 Neutral | $149.91M | 4,002.93 | 0.15% | ― | 41.39% | ― | |
56 Neutral | $62.26M | 74.73 | 2.19% | ― | -12.62% | -69.66% | |
51 Neutral | $31.05M | 3.37 | 38.45% | ― | -36.94% | ― | |
45 Neutral | $72.65M | -3.64 | -66.30% | ― | -82.33% | -7.92% | |
43 Neutral | $26.15M | -10.53 | -122.90% | ― | -55.89% | -127.24% |
* Technology Sector Average
REFR
Research Frontiers
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Research Frontiers Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Research Frontiers Receives Nasdaq Deficiency Notices on Listing
Negative
Jun 5, 2026
On June 2, 2026, Research Frontiers received two deficiency notices from Nasdaq after its shares traded below the $1.00 minimum bid price between April 15 and June 1, 2026, and its market value of listed securities fell under the $35 million thres...
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.