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1. Company Snapshot

1.a. 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 market the SPD-Smart chemical emulsion, light-control film made from the chemical emulsion, the light-control panels made by laminating the film, and electronics to power end-products incorporating the film, as well as lamination services for and the end-products, such as windows, skylights, and sunroofs.Its SPD-Smart light-control technology is used in various product applications, including windows, sunshades, skylights, and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels, and navigation systems; aircraft windows; museum display panels, and eyewear products; and flat panel displays for electronic products.


The company serves architectural, automotive, marine, and aerospace and appliance applications.Research Frontiers Incorporated was incorporated in 1965 and is headquartered in Woodbury, New York.

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1.b. Last Insights on REFR

Research Frontiers Incorporated's recent performance was hindered by a lack of significant updates on its core business. The company's Q4 2024 earnings release was met with limited investor enthusiasm, as management's discussion focused on recent developments rather than providing a comprehensive outlook. Furthermore, the absence of a clear growth strategy and the company's reliance on licensing its SPD-SmartGlass technology to third-party manufacturers have raised concerns among investors. Additionally, the recent partnership with Gauzy and Mercedes-Benz, while a positive development, may not be enough to offset the company's current challenges.

1.c. Company Highlights

2. Research Frontiers' Q3 2025 Earnings: A Strong Performance Amidst Growth Initiatives

Research Frontiers reported a robust financial performance in its third-quarter 2025 results, with automotive and total royalties increasing year-over-year and sequentially, excluding one-time events from 2024. The company's EPS came in at -$0.02, relative to estimates of -$0.00667. The company remains debt-free with $1.1 million in cash and a solid working capital position, providing a stable foundation for future growth. The current valuation metrics indicate a 'P/S Ratio' of 52.03 and a 'P/B Ratio' of 35.37, suggesting that the market has high expectations for the company's future performance.

Publication Date: Nov -30

📋 Highlights
  • Year-over-Year Royalty Growth:: Automotive and total royalties increased sequentially and year-over-year in Q3 2025, excluding 2024 one-time events.
  • Strong Financial Position:: The company remains debt-free with $1.1 million in cash and solid working capital.
  • Architectural Retrofit Expansion:: The innovative retrofit system, showcased at GlassBuild 2025, is set to target government and commercial buildings via AIT Group's GSA vendor status.
  • Global Market Presence:: SPD-SmartGlass is licensed in five sectors (aerospace, architectural, automotive, marine, display) with a full project pipeline and significant growth opportunities.
  • Automotive Market Progress:: SPD-SmartGlass technology is now in tens of thousands of vehicles, with ongoing projects with Ferrari and Hyundai despite supply chain challenges.
  • Year-over-Year Royalty Growth:: Automotive and total royalties increased sequentially and year-over-year in Q3 2025, excluding 2024 one-time events.
  • Strong Financial Position:: Debt-free with $1.1 million in cash and robust working capital, avoiding additional capital raises.
  • Architectural Retrofit Expansion:: Retrofit system, showcased at GlassBuild 2025, targets government and commercial buildings via AIT Group’s GSA vendor status.
  • Global Market Presence:: SPD-SmartGlass licensed in five sectors (aerospace, architectural, automotive, marine, display) with a full project pipeline.
  • Automotive Market Progress:: SPD-SmartGlass in tens of thousands of vehicles; Hyundai and Ferrari projects advancing despite supply chain hurdles.

Financial Highlights and Outlook

The company's financial performance was marked by a significant increase in royalties, driven by the automotive sector. The shift to another licensee following a bankruptcy caused royalty income to be mostly absorbed by high minimum annual royalties. However, royalties in Q3 and for the 9 months are higher than last year, excluding one-time events. Analysts estimate next year's revenue growth at 27.0%, indicating a positive outlook for the company's future performance.

Business Developments and Growth Initiatives

Research Frontiers is making significant progress in its business, with its SPD-SmartGlass technology being used by major companies across five areas: aerospace, architectural, automotive, marine, and display products. The company's architectural retrofit system, which debuted at GlassBuild 2025, received an outstanding response, with plans to market it to government buildings, embassies, and commercial buildings. The GSA schedule allows government agencies to buy directly from approved vendors, making it easier to upgrade existing glass. As the CEO mentioned, the retrofit product is "revolutionary and production-ready," with plans for marketing and deployment.

Operational Progress and Future Plans

The company has made significant progress in the automotive industry, with SPD-SmartGlass technology already in tens of thousands of vehicles. The company is also working on new products, such as Black SPD, which is "very, very far along" in development. New car models in Asia, Europe, and the United States are still moving forward, and the company expects significant developments to announce between now and its next investor call. With a strong pipeline of projects and opportunities, Research Frontiers is confident in its ability to meet aggressive price targets and is focused on cost and color.

3. NewsRoom

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Research Frontiers Highlights Rising Industry Momentum for SPD-SmartGlass Following Chairman's Keynote Address at Detroit Automotive Glazing Summit

Nov -24

Source: globenewswire.com

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SmallCorp Partners with VariGuard to Protect Abraham Lincoln's Handwritten Gettysburg Address

Nov -19

Source: globenewswire.com

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Research Frontiers CEO Joe Harary to Deliver Keynote Address: “Real World Uses of SPD-SmartGlass and Other Variable Tint Technologies” at the 2025 North American Vehicle Glazing Innovation Summit in Detroit

Nov -13

Source: globenewswire.com

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Research Frontiers Incorporated (REFR) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Research Frontiers Reports Third Quarter 2025 Financial Results and Will Host a Conference Call at 4:30p.m. Today

Nov -06

Source: globenewswire.com

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Research Frontiers CEO Joe Harary to Lead North American Vehicle Glazing Innovation Summit 2025 in Detroit as Chairman and Keynote Presenter

Nov -05

Source: globenewswire.com

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RESEARCH FRONTIERS TO HOST THIRD QUARTER 2025 CONFERENCE CALL

Nov -03

Source: globenewswire.com

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Research Frontiers and AIT Group Debut at GlassBuild Retrofittable SPD-SmartGlass System Bringing Instant Light Control, Comfort, and Energy Efficiency to Existing Buildings

Oct -27

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Light Valves

Expected Growth: 15.4%

Growing demand for energy-efficient solutions, increasing adoption of smart buildings, and rising awareness about health benefits of natural light control are driving the growth of the Light Valves market.

7. Detailed Products

SPD-SmartGlass

A type of smart glass that can change from transparent to opaque with the application of an electric current.

SPD-SmartPlastic

A type of smart plastic that can change from transparent to opaque with the application of an electric current.

SPD-SmartFilm

A type of smart film that can change from transparent to opaque with the application of an electric current.

SPD-Licenses

Licenses for the use of SPD technology in various applications.

SPD-R&D

Research and development services for the development of new SPD-based products.

8. Research Frontiers Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Research Frontiers Incorporated has a moderate threat of substitutes due to the availability of alternative technologies and materials in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Research Frontiers Incorporated's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Research Frontiers Incorporated's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market and the high stakes involved in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.07%
Debt Cost 3.95%
Equity Weight 92.93%
Equity Cost 5.03%
WACC 4.95%
Leverage 7.61%

11. Quality Control: Research Frontiers Incorporated passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 2.9/10

Value: 6.0

Growth: 4.6

Quality: 3.8

Yield: 0.0

Momentum: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.62$

Current Price

1.62$

Potential

-0.00%

Expected Cash-Flows