Research Frontiers Incorporated Common Stock (REFR)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I have seen many promising technology licensors, and Research Frontiers is a classic micro-cap story: a tiny licensing operation with five employees, revenue measured in hundreds of thousands, and losses that persist. In fiscal Q2 2026 (the quarter ended 2026-06-30), revenue was $86,346 and net loss was $660,168; fiscal Q1 2026 (quarter ended 2026-03-31) had revenue of $136,319 and a net loss of $525,365. Full-year fiscal 2025 (ended 2025-12-31) produced $1.1 million of revenue and a $2.0 million net loss, worse than fiscal 2024's $1.3 million revenue and $1.3 million net loss. That trajectory—shrinking top line and rising losses—is not what I want. The SPD-Smart light-control technology may have licensing value, but the reported numbers show no durable moat or pricing power. FairStock calculations at the 2026-10-13 close of $0.59 show a $20.6 million market cap, P/E of -9.83, P/B of 19.67, ROE of -154.02%, ROCE of -50.41%, Piotroski F-Score of 2/9, Altman Z-Score of -64.07, and trailing free cash flow of -$1.6 million. Debt-to-equity is 0.97, and the FairStock Score is 15/100. Growth is barely visible: revenue growth of 1.42% and profit growth of -78.94%, with losses in each of the last four years. Lynch category is none for that reason. A $20.6 million price for a business with $1.1 million of fiscal 2025 revenue and $86,346 in the latest quarter is speculative, not cheap on fundamentals. I prefer a margin of safety; here it is not evident.

In plain English: Research Frontiers licenses technology that controls light through special films and panels. The business is very small and has lost money for years, with tiny revenue and negative cash flow. At the 2026-10-13 close of $0.59, the price looks expensive compared with those weak financial results, though the stock has traded much higher in the past year.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer