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Research Frontiers (REFR) AI Stock Analysis
Research Frontiers
(NASDAQ:REFR)
REFR scores near the low end of the range, driven primarily by severe financial fragility: losses far exceed revenue, equity has eroded to roughly $1.1M, leverage has risen sharply, and annual cash burn of over $2M relative to $568K of revenue creates real financing risk. Technicals reinforce the caution, with the stock trading below all major moving averages in a persistent downtrend, though a deeply oversold Stochastic reading leaves room for a short-term bounce. Valuation provides no support given negative earnings and no dividend. High gross margins hint at attractive product economics, but without revenue scale, REFR remains a highly speculative, high-risk micro-cap.
Research Frontiers (REFR) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $12.21M
- Dividend Yield
- ―
- Average Volume (3M)
- 1.67M
- Price to Earnings (P/E)
- -5.3
- Beta (1Y)
- 0.74
- Revenue Growth
- -46.47%
- EPS Growth
- -26.00%
- Country
- US
- Employees
- 5
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
Research Frontiers Business Overview & Revenue Model
Company Description
Research Frontiers Incorporated (REFR) stands as a global innovator, focusing on the development and commercialization of advanced light-regulating technologies and associated devices. The company's core business revolves around its proprietary Suspe...
How the Company Makes Money
Research Frontiers primarily makes money by licensing its patented SPD technology and collecting royalties tied to the sale of SPD-enabled products made by its licensees and their supply-chain partners. Its revenue model is predominantly IP-based rat...
Research Frontiers Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Financials are extremely weak across all three statements. The income statement (score 12) shows TTM net losses of roughly -$2.25M on just $568K of revenue, a net margin near -396%, with revenue declining ~19% in the TTM period after prior-year growth. The balance sheet (score 18) has deteriorated sharply, with total assets down from $5.4M in 2022 to $2.5M and equity eroding from $4.8M to $1.1M, pushing debt-to-equity from 0.10 to 0.97 and ROE to -169%. Cash flow (score 15) remains deeply negative, with TTM operating and free cash flow around -$2.3M and an operating cash flow-to-revenue ratio of -380%, implying meaningful funding risk. The only bright spot is high gross margin (92% TTM), suggesting attractive unit economics if scale were ever achieved.
Income Statement
12Very NegativeBalance Sheet
18Very NegativeCash Flow
15Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 654.23K | 1.12M | 1.34M | 909.60K | 539.69K | 1.26M |
| Gross Profit | 566.24K | 934.57K | 1.07M | -1.45M | 539.69K | 1.26M |
| EBITDA | -2.08M | -1.86M | -1.05M | -1.74M | -2.49M | -1.67M |
| Net Income | -2.25M | -2.05M | -1.31M | -1.91M | -2.67M | -1.85M |
Balance Sheet | ||||||
| Total Assets | 2.48M | 2.25M | 4.04M | 3.85M | 5.37M | 4.55M |
| Cash, Cash Equivalents and Short-Term Investments | 1.09M | 664.30K | 1.99M | 2.48M | 4.23M | 3.03M |
| Total Debt | 1.09M | 1.17M | 1.30M | 267.72K | 464.13K | 646.22K |
| Total Liabilities | 1.35M | 1.32M | 1.44M | 332.79K | 569.59K | 762.06K |
| Stockholders Equity | 1.12M | 933.63K | 2.60M | 3.52M | 4.80M | 3.78M |
Cash Flow | ||||||
| Free Cash Flow | -1.56M | -1.33M | -790.44K | -2.30M | -2.18M | -1.81M |
| Operating Cash Flow | -1.56M | -1.33M | -788.82K | -2.30M | -2.18M | -1.80M |
| Investing Cash Flow | -622 | -726 | -1,623 | 55.59K | 2.69M | -2.78M |
| Financing Cash Flow | 1.38M | 0 | 308.67K | 484.50K | 3.45M | 86.26K |
Research Frontiers Technical Analysis
Price Trends
Market Momentum
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 0.39 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.54, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 29.59 is Positive, neither overbought nor oversold. The STOCH value of 5.18 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.
Latest Risks Added
0 New RisksResearch Frontiers Peers Comparison
Overall Rating
CPSH49Neutral
MIND46Neutral
NEON46Neutral
ODYS45Neutral- REFR40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| CPSH | 49Neutral | $69.60M | 780.43 | 0.15% | ― | 25.56% | ― |
| MIND | 46Neutral | $36.81M | -15.44 | -5.77% | ― | -28.46% | -147.43% |
| NEON | 46Neutral | $11.09M | 1.35 | 34.15% | ― | -21.65% | ― |
| ODYS | 45Neutral | $39.73M | -1.77 | -78.20% | ― | -78.30% | -4.48% |
| REFR | 40Underperform | $12.21M | -5.30 | -168.53% | ― | -46.47% | -26.00% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| REFR | Research Frontiers | 0.35 | -1.53 | -81.38% | |
| MIND | Mind Technology Inc | 4.05 | -7.95 | -66.25% | |
| NEON | Neonode | 0.66 | -2.22 | -77.08% | |
| CPSH | CPS Technologies Corp. | 3.59 | 0.10 | 2.87% | |
| ODYS | Odysight.Ai Inc. | 1.96 | -0.85 | -30.18% | |
| HOLO | Microcloud Hologram Inc. | 1.12 | -2.98 | -72.68% |
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.
Date of analysis: Oct 20, 2026