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REFR Stock Analysis 2026 - RESEARCH FRONTIERS INC AI Rating

REFR Nasdaq Patent Owners & Lessors DE CIK: 0000793524
Recently Updated • Analysis: Apr 8, 2026 • SEC Data: 2025-12-31
STRONG SELL
88% Conf
Pending
Analysis scheduled

📊 REFR Key Takeaways

Revenue: $1.1M
Net Margin: -182.4%
Free Cash Flow: $-1.3M
Current Ratio: 3.84x
Debt/Equity: 0.00x
EPS: $-0.06
AI Rating: STRONG SELL with 88% confidence

Is REFR a Good Investment? Thesis Analysis

Claude

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.

Why Buy REFR? Key Strengths

Claude
  • + 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

REFR Investment Risks to Consider

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
  • ! 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

Key Metrics to Watch

Claude
  • * Revenue stabilization and path to positive operating cash flow
  • * Operating margin improvement trajectory
  • * Cash burn rate and remaining runway before depletion

REFR Financial Metrics

Revenue
$1.1M
Net Income
$-2.0M
EPS (Diluted)
$-0.06
Free Cash Flow
$-1.3M
Total Assets
$2.3M
Cash Position
$664.3K

💡 AI Analyst Insight

Strong liquidity with a 3.84x current ratio provides a solid financial cushion.

REFR Profitability Ratios

Gross Margin N/A
Operating Margin -190.2%
Net Margin -182.4%
ROE -219.1%
ROA -90.8%
FCF Margin -118.6%

REFR vs Default Sector

How RESEARCH FRONTIERS INC compares to Default sector averages

Net Margin
REFR -182.4%
vs
Sector Avg 12.0%
REFR Sector
ROE
REFR -219.1%
vs
Sector Avg 15.0%
REFR Sector
Current Ratio
REFR 3.8x
vs
Sector Avg 1.8x
REFR Sector
Debt/Equity
REFR 0.0x
vs
Sector Avg 0.7x
REFR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is REFR Overvalued or Undervalued?

Based on fundamental analysis, RESEARCH FRONTIERS INC has mixed fundamental signals relative to the Default sector in 2026.

Return on Equity
-219.1%
Sector avg: 15%
Net Profit Margin
-182.4%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.7x

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.

REFR Balance Sheet & Liquidity

Current Ratio
3.84x
Quick Ratio
3.84x
Debt/Equity
0.00x
Debt/Assets
58.5%
Interest Coverage
N/A
Long-term Debt
N/A

REFR 5-Year Financial Trend & Growth Analysis

REFR 5-year financial data: Year 2021: Revenue $1.3M, Net Income -$2.3M, EPS N/A. Year 2022: Revenue $1.3M, Net Income -$1.8M, EPS N/A. Year 2023: Revenue $909.6K, Net Income -$2.7M, EPS $-0.08. Year 2024: Revenue $1.3M, Net Income -$1.9M, EPS $-0.06. Year 2025: Revenue $1.3M, Net Income -$1.3M, EPS $-0.04.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-118.6%
Free cash flow / Revenue

REFR Quarterly Performance

Quarterly financial performance data for RESEARCH FRONTIERS INC including revenue, net income, and earnings per share.
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.

REFR Capital Allocation

Operating Cash Flow
-$1.3M
Cash generated from operations
Capital Expenditures
$726
Investment in assets
Dividends
None
No dividend program

REFR SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for RESEARCH FRONTIERS INC (CIK: 0000793524)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 10-K/A form10-ka.htm View →
Mar 5, 2026 10-K form10-k.htm View →
Feb 18, 2026 8-K form8-k.htm View →
Jan 5, 2026 4 xslF345X05/ownership.xml View →
Jan 5, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about REFR

What is the AI rating for REFR?

RESEARCH FRONTIERS INC (REFR) has an AI rating of STRONG SELL with 88% 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.

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.

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 88% 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 Default stocks?

Vs Default sector averages: Net margin -182.4% (avg: 12%), ROE -219.1% (avg: 15%), current ratio 3.84 (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 8, 2026 | Data as of: 2025-12-31 | Powered by Claude AI