The company's revenue trajectory remains highly volatile, with a 75.6% decline in 2026Q1 that highlights the failure of its licensing model to achieve sustainable growth.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 697.79K | 1.12M | 1.34M | 909.6K | 539.69K | 1.26M | 828.45K | 1.56M | 1.49M | 1.51M | 1.24M | 2.01M | 1.6M | 2.16M | 1.96M | 845.98K | 767.52K | 709.81K | 1.68M | 402.36K | 162.64K | 138.74K | 201.32K | 258.19K | 217.52K | 142K | 333.65K | 200K | 100K | 100K | 100K |
| Revenue Growth % | -55.89% | -16.04% | 46.83% | 68.54% | -57.27% | 52.46% | -47.03% | 5.06% | -1.35% | 22.08% | -38.43% | 25.56% | -26.03% | 10.42% | 131.37% | 10.22% | 8.13% | -57.75% | 317.52% | 147.39% | 17.22% | -31.08% | -22.03% | 18.7% | 53.18% | -57.44% | 66.83% | 100% | 0% | 0% | 0% |
| Cost of Goods Sold | 43.99K | 186.67K | 263.56K | 2.36M | 0 | 0 | 2.78M | 3.68M | 2.42M | 3.13M | 4.09M | 4.74M | 4.43M | 5.84M | 4M | 3.62M | 3.25M | 3.18M | 2.96M | 5.77M | 2.38M | 2.62M | 2.63M | 2.54M | 2.63M | 2.74M | 2.92M | 1.8M | 1.5M | 1.8M | 1.2M |
| COGS % of Revenue | - | 16.65% | 19.73% | 259.42% | - | - | 335.27% | 235.15% | 162.44% | 207.28% | 330.59% | 236.22% | 276.82% | 270.26% | 204.14% | 427.74% | 423.86% | 448.5% | 176.17% | 1435.04% | 1465.73% | 1891.55% | 1308.13% | 982.74% | 1209.61% | 1932.41% | 874.72% | 900% | 1500% | 1800% | 1200% |
| Gross Profit | 653.8K | 934.57K | 1.07M | -1.45M | 539.69K | 1.26M | -1.95M | -2.11M | -929.58K | -1.62M | -2.85M | -2.73M | -2.83M | -3.68M | -2.04M | -2.77M | -2.49M | -2.47M | -1.28M | -5.37M | -2.22M | -2.49M | -2.43M | -2.28M | -2.41M | -2.6M | -2.58M | -1.6M | -1.4M | -1.7M | -1.1M |
| Gross Margin % | 93.7% | 83.35% | 80.27% | -159.41% | 100% | 100% | -235.27% | -135.15% | -62.44% | -107.28% | -230.59% | -136.22% | -176.82% | -170.26% | -104.14% | -327.74% | -323.86% | -348.5% | -76.17% | -1335.04% | -1365.73% | -1791.55% | -1208.13% | -882.74% | -1109.61% | -1832.41% | -774.72% | -800% | -1400% | -1700% | -1100% |
| Gross Profit Growth % | - | -12.82% | 173.93% | -368.68% | -57.27% | 164.8% | 7.79% | -127.38% | 42.58% | 43.2% | -4.23% | 3.26% | 23.18% | -80.54% | 26.49% | -11.54% | -0.49% | -93.31% | 76.18% | -141.83% | 10.64% | -2.2% | -6.72% | 5.57% | 7.24% | -0.67% | -61.55% | -14.29% | 17.65% | -54.55% | 0% |
| Operating Expenses | 3.08M | 3.07M | 2.51M | 583.27K | 3.16M | 3.1M | 628.3K | 1.04M | 3.91M | 3.93M | 5.5M | 6.33M | 6.05M | 8.04M | 5.67M | 1.39M | 1.4M | 1.55M | 1.47M | 2.53M | 1.17M | 1.39M | 1.85M | 2.52M | 1.86M | 2.63M | 2.73M | 2.1M | 1.7M | 1.9M | 1.7M |
| OpEx % of Revenue | - | 273.51% | 188.23% | 64.12% | 586.42% | 245.59% | 75.84% | 66.22% | 262.44% | 260.27% | 445.28% | 315.35% | 378.26% | 372.2% | 289.55% | 164.39% | 183.01% | 218.33% | 87.49% | 628.69% | 719.69% | 1003.05% | 918% | 977.57% | 854.65% | 1855.38% | 817.53% | 1050% | 1700% | 1900% | 1700% |
| Selling, General & Admin | 0 | 504.98K | 400.08K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.7M |
| SG&A % of Revenue | - | 45.04% | 29.96% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1700% |
| Research & Development | 591.21K | 30.36K | 570.01K | 583.27K | 609.13K | 580K | 628.3K | 1.04M | 863.4K | 799.7K | 1.42M | 1.59M | 1.62M | 2.2M | 1.67M | 1.39M | 1.4M | 1.55M | 1.47M | 2.53M | 1.17M | 1.39M | 1.68M | 1.91M | 1.86M | 2.63M | 2.62M | 2M | 1.6M | 1.8M | 0 |
| R&D % of Revenue | - | 2.71% | 42.68% | 64.12% | 112.87% | 45.92% | 75.84% | 66.22% | 58% | 52.99% | 114.69% | 79.13% | 101.45% | 101.94% | 85.42% | 164.39% | 183.01% | 218.33% | 87.49% | 628.69% | 719.69% | 1003.05% | 835.79% | 739.29% | 854.65% | 1855.38% | 784.82% | 1000% | 1600% | 1800% | - |
| Other Operating Expenses | 2.49M | 2.53M | 1.54M | 0 | 2.56M | 2.52M | 0 | 0 | 3.04M | 3.13M | 4.09M | 4.74M | 4.43M | 5.84M | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 165.5K | 615.2K | 0 | 0 | 109.14K | 100K | 100K | 100K | 0 |
| Operating Income | -2.42M | -2.13M | -1.44M | -2.03M | -2.63M | -1.84M | -2.58M | -3.15M | -2.42M | -2.42M | -4.27M | -4.32M | -4.45M | -5.88M | -3.71M | -4.16M | -3.89M | -4.02M | -2.75M | -7.9M | -3.39M | -3.88M | -4.28M | -4.8M | -4.27M | -5.24M | -5.31M | -3.7M | -3.1M | -3.6M | -2.8M |
| Operating Margin % | -347.24% | -190.16% | -107.96% | -223.54% | -486.42% | -145.59% | -311.11% | -201.36% | -162.44% | -160.27% | -345.28% | -215.35% | -278.26% | -272.2% | -189.55% | -492.13% | -506.88% | -566.83% | -163.66% | -1963.73% | -2085.43% | -2794.61% | -2126.13% | -1860.31% | -1964.27% | -3687.78% | -1592.25% | -1850% | -3100% | -3600% | -2800% |
| Operating Income Growth % | - | -47.87% | 29.09% | 22.54% | -42.76% | 28.66% | 18.16% | -30.23% | 0.02% | 43.33% | 1.28% | 2.83% | 24.38% | -58.57% | 10.88% | -7.02% | 3.31% | -46.34% | 65.2% | -132.96% | 12.52% | 9.42% | 10.88% | -12.41% | 18.41% | 1.43% | -43.58% | -19.35% | 13.89% | -28.57% | -7.69% |
| EBITDA | -2.24M | -1.95M | -1.18M | -1.86M | -2.45M | -1.66M | -2.51M | -2.95M | -2.24M | -2.24M | -4.08M | -4.18M | -4.42M | -5.84M | -3.68M | -4.12M | -3.85M | -3.98M | -2.71M | -7.86M | -3.35M | -3.83M | -4.2M | -4.69M | -4.16M | -5.12M | -5.2M | -3.6M | -3M | -3.5M | -3.2M |
| EBITDA Margin % | -320.82% | -173.51% | -88.23% | -204.61% | -453.96% | -131.61% | -303.01% | -188.87% | -150.28% | -148.63% | -330.03% | -208.37% | -276.27% | -270.11% | -187.77% | -487.42% | -501.1% | -561.18% | -161.06% | -1954.43% | -2062.27% | -2761.35% | -2085.03% | -1816.9% | -1911.78% | -3604.22% | -1559.54% | -1800% | -3000% | -3500% | -3200% |
| EBITDA Growth % | -137.15% | -65.11% | 36.69% | 24.03% | -47.38% | 33.78% | 15.02% | -32.04% | 0.26% | 45.02% | 2.48% | 5.3% | 24.34% | -58.85% | 10.87% | -7.21% | 3.45% | -47.22% | 65.59% | -134.46% | 12.45% | 8.73% | 10.52% | -12.81% | 18.75% | 1.64% | -44.54% | -20% | 14.29% | -9.38% | -28% |
| D&A (Non-Cash Add-back) | 184.34K | 186.67K | 263.56K | 172.14K | 175.15K | 176.51K | 67.08K | 195.38K | 181.05K | 175.64K | 188.5K | 140.17K | 31.82K | 45.21K | 34.96K | 39.86K | 44.31K | 40.08K | 43.74K | 37.43K | 37.66K | 46.14K | 82.74K | 112.09K | 114.17K | 118.66K | 109.14K | 100K | 100K | 100K | -400K |
| EBIT | -2.42M | -2.13M | -1.44M | -2.03M | -2.63M | -1.84M | -2.58M | -3.81M | -2.42M | -2.42M | -4.27M | -4.32M | -4.45M | -6.08M | -3.82M | -4.16M | -3.89M | -4.02M | -2.75M | -7.9M | -3.39M | -3.88M | -4.28M | -4.8M | -4.27M | -5.24M | -8.45M | -3.8M | -3.1M | -3.6M | -2.8M |
| Net Interest Income | 21.76K | 39.23K | 95.34K | 124.94K | 0 | 0 | 34.47K | 43.05K | 0 | 0 | 0 | 0 | 0 | 0 | 33.17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64.61K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 21.76K | 39.23K | 95.34K | 124.94K | 0 | 0 | 34.47K | 43.05K | 0 | 0 | 0 | 0 | 0 | 0 | 33.17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64.61K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 29.74K | 86.58K | 130.49K | 124.94K | -44.22K | -7.54K | 236.53K | -659.64K | -267.91K | 4.75K | 29.54K | 43.32K | 35.16K | 233.67K | 139.13K | 29.27K | 15.52K | 20.63K | 154.57K | 336.03K | 88.09K | 129.76K | 17.6K | -584.42K | 256.93K | 696.06K | 878.52K | -200K | 600K | 400K | 400K |
| Pretax Income | -2.39M | -2.05M | -1.31M | -1.91M | -2.67M | -1.85M | -2.34M | -3.81M | -2.69M | -2.41M | -4.24M | -4.28M | -4.41M | -5.85M | -3.68M | -3.87M | -4M | -4M | -2.59M | -7.57M | -3.3M | -3.75M | -4.43M | -5.39M | -4.02M | -4.54M | -7.57M | -4M | -2.5M | -3.2M | -2.4M |
| Pretax Margin % | -342.98% | -182.44% | -98.19% | -209.8% | -494.61% | -146.18% | -282.56% | -243.54% | -180.44% | -159.96% | -342.89% | -213.2% | -276.06% | -270.44% | -187.86% | -458.03% | -521.52% | -563.92% | -154.46% | -1880.22% | -2031.27% | -2701.08% | -2199.59% | -2086.67% | -1846.15% | -3197.61% | -2268.17% | -2000% | -2500% | -3200% | -2400% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.75K | -29.54K | 0 | -35.16K | -38.15K | -613.4K | -29.27K | -15.52K | -20.63K | 0 | 0 | 0 | 0 | -17.6K | -30.77K | -321.53K | 0 | 2.26M | 0 | -500K | 0 | 100K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.2% | 0.7% | 0% | 0.8% | 0.65% | 16.68% | 0.76% | 0.39% | 0.52% | 0% | 0% | 0% | 0% | 0.4% | 0.57% | 8.01% | 0% | -29.8% | 0% | 20% | 0% | -4.17% |
| Net Income | -2.39M | -2.05M | -1.31M | -1.91M | -2.67M | -1.85M | -2.34M | -3.81M | -2.69M | -2.41M | -4.24M | -4.28M | -4.41M | -5.85M | -3.06M | -4.13M | -3.87M | -4M | -2.59M | -7.57M | -3.3M | -3.75M | -4.26M | -4.77M | -3.95M | -4.54M | -7.57M | -3.7M | -2.6M | -3.2M | -2.5M |
| Net Margin % | -342.98% | -182.44% | -98.19% | -209.8% | -494.61% | -146.18% | -282.56% | -243.54% | -180.44% | -159.96% | -342.89% | -213.2% | -276.06% | -270.44% | -156.52% | -488.67% | -504.85% | -563.92% | -154.46% | -1880.22% | -2031.27% | -2701.08% | -2117.39% | -1848.39% | -1816.45% | -3197.61% | -2268.17% | -1850% | -2600% | -3200% | -2500% |
| Net Income Growth % | -128.7% | -55.99% | 31.28% | 28.51% | -44.57% | 21.13% | 38.54% | -41.8% | -11.28% | 43.05% | 0.97% | 3.03% | 24.49% | -90.79% | 25.89% | -6.69% | 3.2% | -54.26% | 65.7% | -129% | 11.85% | 12.09% | 10.68% | -20.78% | 12.98% | 40% | -104.54% | -42.31% | 18.75% | -28% | 13.79% |
| Net Income (Continuing) | -2.39M | -2.05M | -1.31M | -1.91M | -2.67M | -1.85M | -2.34M | -3.81M | -2.69M | -2.41M | -4.24M | -4.28M | -4.41M | -5.85M | -3.06M | -4.13M | -3.87M | -4M | -2.59M | -7.57M | -3.3M | -3.75M | -4.26M | -4.77M | -3.95M | -4.54M | -7.57M | -3.7M | -2.6M | -3.2M | -2.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.07 | -0.06 | -0.04 | -0.06 | -0.08 | -0.06 | -0.07 | -0.15 | -0.10 | -0.10 | -0.18 | -0.18 | -0.19 | -0.25 | -0.15 | -0.22 | -0.22 | -0.25 | -0.17 | -0.50 | -0.24 | -0.27 | -0.33 | -0.38 | -0.33 | -0.38 | -0.63 | -0.33 | -0.23 | -0.31 | -0.25 |
| EPS Growth % | -127.56% | -55.5% | 31.4% | 31.49% | -42.71% | 21.53% | 50.47% | -50% | 0% | 44.44% | 0% | 5.26% | 24% | -66.67% | 31.82% | 0% | 12% | -47.06% | 66% | -108.33% | 11.11% | 18.18% | 13.16% | -15.15% | 13.16% | 39.68% | -90.91% | -43.48% | 25.81% | -24% | 19.35% |
| EPS (Basic) | - | -0.06 | -0.04 | -0.06 | -0.08 | -0.06 | -0.07 | -0.15 | -0.10 | -0.10 | -0.18 | -0.18 | -0.19 | -0.25 | -0.15 | -0.22 | -0.22 | -0.25 | -0.17 | -0.50 | -0.24 | -0.27 | -0.33 | -0.38 | -0.33 | -0.38 | -0.63 | -0.33 | -0.24 | -0.31 | -0.25 |
| Diluted Shares Outstanding | 34.16M | 33.65M | 33.52M | 33.45M | 32.07M | 31.65M | 31.49M | 30.01M | 25.96M | 24.04M | 24.04M | 24.01M | 23.66M | 22.95M | 20.13M | 18.54M | 17.32M | 16.07M | 15.44M | 15.28M | 14.03M | 13.69M | 12.79M | 12.44M | 12.15M | 12.09M | 12.1M | 11.1M | 11.11M | 10.2M | 10M |
| Basic Shares Outstanding | 34.16M | 33.65M | 33.52M | 33.45M | 32.07M | 31.65M | 31.49M | 30.01M | 25.96M | 24.04M | 24.04M | 24.01M | 23.66M | 22.95M | 20.13M | 18.54M | 17.32M | 16.07M | 15.44M | 15.28M | 14.03M | 13.69M | 12.79M | 12.44M | 12.15M | 12.09M | 12.1M | 11.1M | 10.88M | 10.2M | 9.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and dilution risk
As reported in recent quarterly filings, Research Frontiers experienced a sharp 75.6% revenue decline in 2026Q1, highlighting the extreme volatility inherent in its royalty-based model and suggesting that the company has failed to establish a consistent, scalable growth trajectory across its primary automotive and aerospace licensing programs.
The erratic quarterly revenue figures indicate a business model highly sensitive to the timing of licensee production cycles rather than steady market adoption. This lack of predictable growth suggests that the company remains trapped in a niche phase, unable to achieve the critical mass required for long-term viability.
Based on financial statements, the company maintains a near-100% gross margin in most periods, yet this structural advantage is entirely negated by an operating margin that reached -190.16%, indicating that the current licensing revenue is fundamentally insufficient to support the firm's fixed corporate and patent maintenance costs.
While the absence of COGS is a theoretical benefit of the licensing model, the persistent operating losses demonstrate a failure to achieve the necessary scale to cover overhead. Investors should monitor whether the company can ever reach a break-even point without a massive, unlikely expansion in royalty-bearing unit volumes.
According to recent SEC filings, the company's reliance on R&D and administrative spending, which remains largely fixed despite revenue fluctuations, has created a persistent cash burn that threatens the firm's solvency given the current cash balance of only $664,299 as of the most recent reporting period.
The company's expense discipline appears insufficient to offset the decline in top-line performance, forcing a reliance on external capital. This rigid cost structure suggests that management may be forced into dilutive equity raises to maintain operations, further pressuring shareholder value in the absence of a revenue inflection.
As indicated by the company's historical financial performance, the market's valuation appears to be driven by speculative optionality regarding patent adoption rather than current fundamentals, as the firm's negative net margins and declining revenue suggest a high probability of continued capital erosion for long-term equity holders.
Short-term observers might focus on the potential for a breakthrough licensing deal, but the data suggests that the company is struggling to defend its IP relevance against cheaper, alternative technologies. The reliance on a few key OEM contracts makes the business model appear binary, with significant downside risk if major partners pivot away from SPD technology.
Quick answers to the most common questions about buying REFR stock.
For fiscal year 2025, Research Frontiers Incorporated (REFR) reported total revenue of $1.1M. This represents a 1021.2% increase compared to $0.1M in 1996.
Research Frontiers Incorporated (REFR) reported a net loss of $2.0M for the fiscal year ending 2025.
Research Frontiers Incorporated (REFR) reported an operating income of $-2.1M, resulting in an operating profit margin of -190.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Research Frontiers Incorporated (REFR) generated $0.9M in gross profit for the year, representing a gross profit margin of 83.4%. This demonstrates the company's core pricing power and production efficiency.