📊 REFR Key Takeaways
Is Research Frontiers Inc. (REFR) a Good Investment?
Research Frontiers operates a severely distressed business with only $1.1M in annual revenue that is declining 16% YoY, while burning through $2.1M in operating losses and $1.3M in negative free cash flow. Despite maintaining a strong liquidity position ($664.3K cash, 3.84x current ratio) and zero debt, the company is losing money at an unsustainable rate with no clear path to profitability or revenue stabilization.
Revenue is small and declining while operating and net margins are deeply negative, indicating a structurally unprofitable model at current scale. With only ~$0.66M in cash against a -$1.33M operating cash outflow, liquidity is tight and a capital raise appears likely. Until royalty growth reaccelerates and expenses are reduced to approach breakeven, fundamentals remain weak.
Why Buy Research Frontiers Inc. Stock? REFR Key Strengths
- Zero long-term debt eliminates financial distress from leverage
- Strong current ratio of 3.84x provides short-term liquidity runway
- Patent/IP licensing business model has potential for scalability if revenue stabilizes
- Asset-light IP licensing model with minimal capex requirements
- No financial debt and no interest burden
- High incremental margin potential if royalties scale
REFR Stock Risks: Research Frontiers Inc. Investment Risks
- Revenue base of $1.1M is critically small and declining 16% YoY, indicating severe market contraction
- Operating losses of $2.1M against revenue of $1.1M demonstrate unprofitable unit economics
- Negative free cash flow of $1.3M with only $664.3K cash on hand creates imminent liquidity crisis without operational turnaround
- Zero insider buying activity in past 90 days suggests management lacks confidence in recovery
- Short cash runway and likely need for external financing/dilution
- Declining revenue and lumpy, concentrated royalty streams
- Technology adoption and patent/IP durability risk
Key Metrics to Watch
- Revenue stabilization and path to positive operating cash flow
- Operating margin improvement trajectory
- Cash burn rate and remaining runway before depletion
- Quarterly licensing revenue
- Operating cash flow
Research Frontiers Inc. (REFR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.84x current ratio provides a solid financial cushion.
REFR Profit Margin, ROE & Profitability Analysis
REFR vs Market Sector: How Research Frontiers Inc. Compares
How Research Frontiers Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Research Frontiers Inc. Stock Overvalued? REFR Valuation Analysis 2026
Based on fundamental analysis, Research Frontiers Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Research Frontiers Inc. Balance Sheet: REFR Debt, Cash & Liquidity
REFR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Research Frontiers Inc.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $-0.04 indicates the company is currently unprofitable.
REFR Revenue Growth, EPS Growth & YoY Performance
REFR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $354.4K | -$166.8K | $0.00 |
| Q2 2025 | $129.9K | -$94.0K | $0.00 |
| Q1 2025 | $313.4K | -$177.7K | $-0.01 |
| Q3 2024 | $164.1K | -$166.8K | $0.00 |
| Q2 2024 | $185.0K | -$94.0K | $0.00 |
| Q1 2024 | $248.2K | -$442.6K | $-0.01 |
| Q3 2023 | $150.4K | -$472.2K | $-0.01 |
| Q2 2023 | $85.5K | -$493.7K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Research Frontiers Inc. Dividends, Buybacks & Capital Allocation
REFR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Research Frontiers Inc. (CIK: 0000793524)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REFR
What is the AI rating for REFR?
Research Frontiers Inc. (REFR) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REFR's key strengths?
Claude: Zero long-term debt eliminates financial distress from leverage. Strong current ratio of 3.84x provides short-term liquidity runway. ChatGPT: Asset-light IP licensing model with minimal capex requirements. No financial debt and no interest burden.
What are the risks of investing in REFR?
Claude: Revenue base of $1.1M is critically small and declining 16% YoY, indicating severe market contraction. Operating losses of $2.1M against revenue of $1.1M demonstrate unprofitable unit economics. ChatGPT: Short cash runway and likely need for external financing/dilution. Declining revenue and lumpy, concentrated royalty streams.
What is REFR's revenue and growth?
Research Frontiers Inc. reported revenue of $1.1M.
Does REFR pay dividends?
Research Frontiers Inc. does not currently pay dividends.
Where can I find REFR SEC filings?
Official SEC filings for Research Frontiers Inc. (CIK: 0000793524) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REFR's EPS?
Research Frontiers Inc. has a diluted EPS of $-0.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REFR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Research Frontiers Inc. has a STRONG SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REFR stock overvalued or undervalued?
Valuation metrics for REFR: ROE of -219.1% (sector avg: 15%), net margin of -182.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy REFR stock in 2026?
Our dual AI analysis gives Research Frontiers Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REFR's free cash flow?
Research Frontiers Inc.'s operating cash flow is $-1.3M, with capital expenditures of $726.0. FCF margin is -118.6%.
How does REFR compare to other Market stocks?
Vs Default sector averages: Net margin -182.4% (avg: 12%), ROE -219.1% (avg: 15%), current ratio 3.84 (avg: 1.8).