Daqo New Energy Announces Unaudited Fourth Quarter and Fiscal Year 2025 Results
Rhea-AI Summary
Daqo New Energy (NYSE: DQ) reported unaudited Q4 and full-year 2025 results on Feb 26, 2026. Q4 revenue was $221.7M with gross profit of $15.4M and net loss attributable to shareholders of $7.3M. Full-year 2025 revenue was $665.4M; net loss was $170.5M and EBITDA (non-GAAP) was $1.7M. Cash and liquid assets totaled $2.27B at year-end. Company provided 2026 production guidance of 140,000–170,000 MT and Q1 2026 guidance of 35,000–40,000 MT.
Positive
- Cash and liquid assets of $2.27B
- EBITDA turned positive to $1.7M for 2025
- Q4 EBITDA margin improved to 23.7%
- Production guidance 140,000–170,000 MT for 2026
Negative
- Full-year revenue declined 35% to $665.4M
- Net loss of $170.5M in 2025
- Polysilicon production fell 39.7% YoY to 123,652 MT
- Polysilicon ASP declined 7.2% to $5.25/kg in 2025
Key Figures
Market Reality Check
Peers on Argus
DQ was down 1.88% pre‑results while peers were mixed: PLAB up 10.87%, COHU up 0.74%, ACMR up 0.29%, but VECO and UCTT down 4.88% and 5.93%. Moves appear stock‑specific rather than a unified sector trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 27 | Q3 2025 earnings | Positive | +14.1% | Stronger Q3 revenue, positive EBITDA and adjusted net income amid price recovery. |
| Aug 26 | Q2 2025 earnings | Negative | -0.8% | Weak Q2 revenue and sizable net loss during industry overcapacity phase. |
| Apr 29 | 2024 20-F filing | Neutral | -13.8% | Annual report filing with audited 2024 results and disclosures for investors. |
| Apr 29 | Q1 2025 earnings | Negative | -13.8% | Q1 loss with lower revenue and polysilicon prices below production cost. |
| Feb 27 | Q4/FY 2024 earnings | Negative | -1.8% | Large Q4 and full‑year 2024 losses amid severe polysilicon market headwinds. |
Earnings and related filings often saw modestly negative average moves of about -3.2%, with sharp selloffs around weak quarters and filings but one strong positive reaction to Q3 2025 results.
Over the last year, Daqo’s earnings cycle showed deep 2024 losses, followed by challenging but gradually improving 2025 quarters. Q1 and Q2 2025 reported significant net losses amid overcapacity, while Q3 2025 showed better margins, positive EBITDA and adjusted profitability. The 2024 Form 20‑F filing also coincided with a notable negative reaction. Today’s Q4/FY 2025 update extends that narrative of narrowing losses, improved EBITDA and disciplined production within a recovering polysilicon market.
Historical Comparison
Past earnings and related filings produced an average move of -3.2%, framing expectations around how DQ’s results reporting typically affected the stock.
Same‑tag events trace a path from heavy 2024 losses through difficult Q1–Q2 2025, to Q3 2025 margin and EBITDA improvement, setting context for Q4/FY 2025’s narrowed losses.
Market Pulse Summary
This announcement details Q4 and full-year 2025 results showing revenue of $221.7M for the quarter and $665.4M for the year, with FY net loss narrowing to $170.5M. Operationally, polysilicon production reached 123,652 MT in 2025 and EBITDA turned slightly positive at $1.7M. Investors may track progress on cost reductions, utilization rates, cash and liquid assets of $2.27B, and whether 2026 production targets are met.
Key Terms
ebitda financial
non-gaap financial
ads financial
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Financial and Operating Highlights
- Total cash, short-term investments, bank notes receivable and fixed term bank deposit balance was
$2.27 billion $2.21 billion - Polysilicon production volume was 42,181 MT in Q4 2025, compared to 30,650 MT in Q3 2025
- Polysilicon sales volume was 38,167 MT in Q4 2025, compared to 42,406 MT in Q3 2025
- Polysilicon average total production cost(1) was
$5.83 $6.38 - Polysilicon average cash cost(1) was
$4.46 $4.54 - Polysilicon average selling price (ASP) was
$5.83 $5.80 - Revenue was
$221.7 million $244.6 million - Gross profit was
$15.4 million $9.7 million 7.0% in Q4 2025, compared to3.9% in Q3 2025 - Net loss attributable to Daqo New Energy Corp. shareholders was
$7.3 million $14.9 million $0.11 in Q4 2025, compared to$0.22 - Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was
$7.3 million $3.7 million - Adjusted loss per basic ADS(3) (non-GAAP)(2) was
$0.11 $0.05 $52.5 million $45.8 million 23.7% in Q4 2025, compared to18.7% in Q3 2025
Three months ended | |||
US$ millions except as indicated otherwise | Dec. 31, | Sep. 30, | Dec. 31, |
Revenues | 221.7 | 244.6 | 195.4 |
Gross profit/(loss) | 15.4 | 9.7 | (65.3) |
Gross margin | 7.0 % | 3.9 % | (33.4) % |
Loss from operations | (20.9) | (20.3) | (300.9) |
Net loss attributable to Daqo New Energy Corp. | (7.3) | (14.9) | (180.2) |
Loss per basic ADS(3) ($ per ADS) | (0.11) | (0.22) | (2.71) |
Adjusted net (loss)/income (non-GAAP)(2) | (7.3) | 3.7 | (170.6) |
Adjusted (loss)/earnings per basic ADS(3) (non- | (0.11) | 0.05 | (2.56) |
EBITDA (non-GAAP)(2) | 52.5 | 45.8 | (235.1) |
EBITDA margin (non-GAAP)(2) | 23.7 % | 18.7 % | (120.3) % |
Polysilicon sales volume (MT) | 38,167 | 42,406 | 42,191 |
Polysilicon average total production cost ($/kg)(1) | 5.83 | 6.38 | 6.81 |
Polysilicon average cash cost (excl. dep'n) ($/kg)(1) | 4.46 | 4.54 | 5.04 |
Full Year 2025 Financial and Operating Highlights
- Polysilicon production volume was 123,652 MT in 2025, compared to 205,068 MT in 2024
- Polysilicon sales volume was 126,707 MT in 2025, compared to 181,362 MT in 2024
- Revenue was
$665.4 million $1,029.1 million - Gross loss was
$137.9 million $212.9 million 20.7% in 2025, compared to -20.7% in 2024 - Net loss attributable to Daqo New Energy Corp. shareholders was
$170.5 million $345.2 million $2.53 $5.22 - EBITDA (non-GAAP)(2) was
$1.7 million - in 2024; EBITDA margin (non-GAAP)(2) was$337.4 million 0.3% in 2025, compared to -32.8% in 2024 - Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was
$114.7 million $272.8 million - Adjusted loss per basic ADS(3) (non-GAAP)(2) was
$1.70 $4.12
Notes: |
(1) Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable costs relating to production of polysilicon divided by the production volume in the period indicated. Cash cost is calculated by the inventoriable costs relating to production of polysilicon excluding depreciation cost and non-cash share-based compensation cost, divided by the production volume in the period indicated. |
(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic ADS on a non-GAAP basis to provide supplemental information regarding its financial performance. For more information on these non-GAAP financial measures, please see the section captioned "Use of Non-GAAP Financial Measures" and the tables captioned "Reconciliation of non-GAAP financial measures to comparable US GAAP measures" set forth at the end of this press release. |
(3) ADS means American Depositary Share. One (1) ADS represents five (5) ordinary shares. |
Management Remarks
Mr. Xiang Xu, CEO of Daqo New Energy, commented, "In 2025,
"In the second half of 2025, we strategically ramped up sales efforts to capitalize on favorable pricing dynamics. The strong market response highlighted growing customer confidence in our product quality and their continued preference for our brand in this new pricing environment. However, polysilicon ASPs decreased
"We continued to maintain a strong balance sheet and ample cash reserves. At the end of 2025, we had a cash balance of
"Operationally, we continued to implement proactive measures in Q4 to mitigate market oversupply, including operating at a nameplate capacity utilization rate of
"In light of current market conditions, we expect our total polysilicon production volume in the first quarter of 2026 to be approximately 35,000 MT to 40,000 MT, and our full year 2026 production volume to be in the range of 140,000 MT to 170,000 MT."
"Chinese authorities demonstrated strong resolve in tackling irrational competition and industry overcapacity, formally designating anti-involution as a national priority within
"Led by the China Photovoltaic Industry Association, major polysilicon manufacturers have proactively responded to these initiatives, enforcing self-discipline and exploring innovative, market-oriented approaches to combat excess capacity and pricing violations. These coordinated efforts have yielded measurable results in curbing overcapacity. The overall production volumes fell by
"More broadly, the solar PV industry continues to exhibit compelling long-term growth prospects. In 2025,
Outlook and guidance
The Company expects to produce approximately 35,000 MT to 40,000 MT of polysilicon during the first quarter of 2026. The Company expects to produce approximately 140,000 MT to 170,000 MT of polysilicon for the full year of 2026, inclusive of the impact of the Company's annual facility maintenance.
This outlook reflects Daqo New Energy's current and preliminary view as of the date of this press release and may be subject to changes. The Company's ability to achieve these projections is subject to risks and uncertainties. See "Safe Harbor Statement" at the end of this press release.
Fourth Quarter 2025 Results
Revenues
Revenues were
Gross profit/(loss) and margin
Gross profit was
Selling, general and administrative expenses
Selling, general and administrative (SG&A) expenses were
Allowance for credit loss
The Company recognized
Research and development expenses
Research and development (R&D) expenses were
Loss from operations and operating margin
As a result of the foregoing, loss from operations was
Operating margin was negative
Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS
As a result of the foregoing, net loss attributable to Daqo New Energy Corp. shareholders was
Loss per basic ADS was
Adjusted net income/(loss) (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted earnings/(loss) per ADS (non-GAAP)
Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders, excluding non-cash share-based compensation costs, was
Adjusted loss per basic ADS was
EBITDA
EBITDA (non-GAAP) was
Full Year 2025 Results
Revenues
Revenues were
Gross loss and margin
Gross loss was
Selling, general and administrative expenses
Selling, general and administrative (SG&A) expenses were
Research and development expenses
Research and development (R&D) expenses were
Loss from operations and operating margin
As a result of the foregoing, loss from operations was
Interest income, net
Interest income, net was
Net loss attributable to Daqo New Energy Corp. shareholders and loss per ADS
Net loss attributable to Daqo New Energy Corp. shareholders was
Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders and adjusted loss per ADS (non-GAAP)
Adjusted net loss (non-GAAP) attributable to Daqo New Energy Corp. shareholders was
EBITDA (non-GAAP)
EBITDA (non-GAAP) was
Financial Condition
As of December 31, 2025, the Company had
Cash Flows
For the twelve months ended December 31, 2025, net cash provided by operating activities was
For the twelve months ended December 31, 2025, net cash used in investing activities was
For the twelve months ended December 31, 2025, net cash used in financing activities was
Use of Non-GAAP Financial Measures
To supplement Daqo New Energy's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("US GAAP"), the Company uses certain non-GAAP financial measures that are adjusted for certain items from the most directly comparable GAAP measures including earnings before interest, taxes, depreciation and amortization ("EBITDA") and EBITDA margin; adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS. Our management believes that each of these non-GAAP measures is useful to investors, enabling them to better assess changes in key element of the Company's results of operations across different reporting periods on a consistent basis, independent of certain items as described below. Thus, our management believes that, used in conjunction with US GAAP financial measures, these non-GAAP financial measures provide investors with meaningful supplemental information to assess the Company's operating results in a manner that is focused on its ongoing, core operating performance. Our management uses these non-GAAP measures internally to assess the business, its financial performance, current and historical results, as well as for strategic decision-making and forecasting future results. Given our management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's operating results as seen through the eyes of our management. These non-GAAP measures are not prepared in accordance with US GAAP or intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with US GAAP; the non-GAAP measures should be reviewed together with the US GAAP measures, and may be different from non-GAAP measures used by other companies.
The Company uses EBITDA, which represents earnings before interest, taxes, depreciation and amortization, and EBITDA margin, which represents the proportion of EBITDA in revenues. Adjusted net income attributable to Daqo New Energy Corp. shareholders and adjusted earnings per basic and diluted ADS exclude costs related to share-based compensation. Share-based compensation is a non-cash expense that varies from period to period. As a result, our management excludes this item from our internal operating forecasts and models. Our management believes that this adjustment for share-based compensation provides investors with a basis to measure the Company's core performance, including compared with the performance of other companies, without the period-to-period variability created by share-based compensation.
A reconciliation of non-GAAP financial measures to comparable US GAAP measures is presented later in this document.
Conference Call
The Company has scheduled a conference call to discuss the results at 8:00 AM
The dial-in details for the earnings conference call are as follows:
Participant dial in (
Participant international dial in: +1-412-902-4272
Please dial in 10 minutes before the call is scheduled to begin and ask to join the Daqo New Energy Corp. call.
Webcast link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ba7I5r8H
A replay of the call will be available 1 hour after the conclusion of the conference call through March 5, 2026. The dial-in details for the conference call replay are as follows:
International toll: +1-412-317-0088
Replay access code: 6386934
To access the replay through an international dial-in number, please select the link below.
https://services.choruscall.com/ccforms/replay.html
Participants will be asked to provide their name and company name upon entering the call.
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo" or the "Company") is a leading manufacturer of high-purity polysilicon for the global solar PV industry. Founded in 2007, the Company manufactures and sells high-purity polysilicon to photovoltaic product manufacturers, who further process the polysilicon into ingots, wafers, cells and modules for solar power solutions. The Company has a total polysilicon nameplate capacity of 305,000 metric tons and is one of the world's lowest cost producers of high-purity polysilicon.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Daqo New Energy Corp. | ||||||||||
Unaudited Condensed Consolidated Statement of Operations | ||||||||||
(US dollars in thousands, except ADS and per ADS data) | ||||||||||
Three months ended | Year ended | |||||||||
Dec 31, | Sep 30, | Dec 31, | Dec 31, | Dec 31, | ||||||
Revenues | 221,711 | 244,601 | 195,359 | 665,415 | 1,029,080 | |||||
Cost of revenues | (206,272) | (234,949) | (260,622) | (803,266) | (1,242,012) | |||||
Gross profit/(loss) | 15,439 | 9,652 | (65,263) | (137,851) | (212,932) | |||||
Operating expenses | ||||||||||
Selling, general and administrative | (18,730) | (32,287) | (29,403) | (118,224) | (143,089) | |||||
Long-lived asset impairment | - | - | (175,627) | - | (175,627) | |||||
Allowance for credit loss | (19,294) | - | (18,072) | (19,294) | (18,072) | |||||
Research and development expenses | (722) | (559) | (372) | (2,584) | (4,559) | |||||
Other operating income/(expense) | 2,418 | 2,890 | (12,202) | 7,718 | (9,813) | |||||
Total operating expenses | (36,328) | (29,956) | (235,676) | (132,384) | (351,160) | |||||
Loss from operations | (20,889) | (20,304) | (300,939) | (270,235) | (564,092) | |||||
Interest income, net | 1,821 | 2,944 | 7,620 | 9,029 | 30,223 | |||||
Foreign exchange gain/(loss) | 3 | 3 | 49 | 31 | (2,378) | |||||
Gain on short-term investments | 5,658 | 5,471 | 2,784 | 24,058 | 18,186 | |||||
Loss before income taxes | (13,407) | (11,886) | (290,486) | (237,117) | (518,061) | |||||
Income tax benefit/(expense) | 3,546 | (2,958) | 48,973 | 21,034 | 69,907 | |||||
Net loss | (9,861) | (14,844) | (241,513) | (216,083) | (448,154) | |||||
Net (loss)/income attributable to non- | (2,581) | 74 | (61,331) | (45,569) | (102,939) | |||||
Net loss attributable to Daqo New Energy | (7,280) | (14,918) | (180,182) | (170,514) | (345,215) | |||||
Loss per ADS | ||||||||||
Basic | (0.11) | (0.22) | (2.71) | (2.53) | (5.22) | |||||
Diluted | (0.11) | (0.22) | (2.71) | (2.53) | (5.22) | |||||
Weighted average ADS outstanding | ||||||||||
Basic | 67,666,301 | 67,547,032 | 66,615,174 | 67,351,208 | 66,160,008 | |||||
Diluted | 67,666,301 | 67,547,032 | 66,615,174 | 67,351,208 | 66,160,008 | |||||
Daqo New Energy Corp. | ||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(US dollars in thousands) | ||||||
Dec. 31, 2025 | Sep. 30, 2025 | Dec. 31, 2024 | ||||
ASSETS: | ||||||
Current Assets: | ||||||
Cash, cash equivalents and restricted cash | 980,292 | 551,564 | 1,038,349 | |||
Short-term investments | 113,979 | 431,341 | 9,619 | |||
Accounts and notes receivable | 135,518 | 156,994 | 55,171 | |||
Inventories | 169,103 | 121,437 | 149,939 | |||
Fixed term deposit within one year | 972,358 | 1,034,472 | 1,087,210 | |||
Other current assets | 321,138 | 317,988 | 291,259 | |||
Total current assets | 2,692,388 | 2,613,796 | 2,631,547 | |||
Property, plant and equipment, net | 3,399,055 | 3,409,878 | 3,499,210 | |||
Prepaid land use right | 155,576 | 154,163 | 152,869 | |||
Fixed term deposit over one year | 63,212 | 33,944 | 27,636 | |||
Other non-current assets | 135,305 | 130,443 | 106,981 | |||
TOTAL ASSETS | 6,445,536 | 6,342,224 | 6,418,243 | |||
Current liabilities: | ||||||
Accounts payable and notes payable | 129,663 | 83,259 | 33,270 | |||
Advances from customers - short term portion | 45,433 | 24,221 | 37,192 | |||
Payables for purchases of property, plant and equipment | 278,957 | 312,170 | 406,743 | |||
Other current liabilities | 43,780 | 42,695 | 44,030 | |||
Total current liabilities | 497,833 | 462,345 | 521,235 | |||
Advance from customers - long term portion | 13,208 | 16,916 | 21,484 | |||
Other non-current liabilities | 18,180 | 18,084 | 17,658 | |||
TOTAL LIABILITIES | 529,221 | 497,345 | 560,377 | |||
EQUITY: | ||||||
Total Daqo New Energy Corp.'s shareholders' | 4,406,727 | 4,353,992 | 4,361,192 | |||
Non-controlling interest | 1,509,588 | 1,490,887 | 1,496,674 | |||
Total equity | 5,916,315 | 5,844,879 | 5,857,866 | |||
TOTAL LIABILITIES & EQUITY | 6,445,536 | 6,342,224 | 6,418,243 | |||
Daqo New Energy Corp. | ||||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||
(US dollars in thousands) | ||||
For the year ended December 31, | ||||
2025 | 2024 | |||
Operating Activities: | ||||
Net loss | (216,083) | (448,154) | ||
Adjustments to reconcile net income to net cash provided by | 345,666 | 568,101 | ||
Changes in operating assets and liabilities | (73,459) | (555,370) | ||
Net cash provided by/(used in) operating activities | 56,124 | (435,423) | ||
Investing activities: | ||||
Purchases of property, plant and equipment | (179,469) | (358,828) | ||
Purchases of land use right | - | (10,091) | ||
Purchase of short-term investments and fixed term deposits | (4,614,457) | (4,203,694) | ||
Redemption of short-term investments and fixed term deposits | 4,653,240 | 3,091,833 | ||
Net cash used in investing activities | (140,686) | (1,480,780) | ||
Financing activities: | ||||
Net cash used in financing activities | (850) | (47,356) | ||
Effect of exchange rate changes | 27,355 | (46,048) | ||
Net decrease in cash, cash equivalents and restricted cash | (58,057) | (2,009,607) | ||
Cash, cash equivalents and restricted cash at the beginning of the | 1,038,349 | 3,047,956 | ||
Cash, cash equivalents and restricted cash at the end of the year | 980,292 | 1,038,349 | ||
Daqo New Energy Corp. | |||||||||||
Reconciliation of non-GAAP financial measures to comparable US GAAP measures | |||||||||||
(US dollars in thousands) | |||||||||||
Three months ended | Year ended | ||||||||||
Dec 31, | Sep 30, | Dec 31, | Dec 31, | Dec 31, | |||||||
Net loss | (9,861) | (14,844) | (241,513) | (216,083) | (448,154) | ||||||
Income tax (benefit)/expense | (3,546) | 2,958 | (48,973) | (21,034) | (69,907) | ||||||
Interest income, net | (1,821) | (2,944) | (7,620) | (9,029) | (30,223) | ||||||
Depreciation & Amortization | 67,776 | 60,595 | 63,036 | 247,869 | 210,881 | ||||||
EBITDA (non-GAAP) | 52,548 | 45,765 | (235,070) | 1,723 | (337,403) | ||||||
EBITDA margin (non-GAAP) | 23.7 % | 18.7 % | (120.3) % | 0.3 % | (32.8) % | ||||||
Three months ended | Year ended | ||||||||||
Dec 31, | Sep 30, | Dec 31, | Dec 31, | Dec 31, | |||||||
Net loss attributable to Daqo New | (7,280) | (14,918) | (180,182) | (170,514) | (345,215) | ||||||
Share-based compensation | - | 18,605 | 9,532 | 55,817 | 72,382 | ||||||
Adjusted net (loss)/profit (non- | (7,280) | 3,687 | (170,650) | (114,697) | (272,833) | ||||||
Adjusted (loss)/profit per basic ADS | (0.11) | 0.05 | (2.56) | (1.70) | (4.12) | ||||||
Adjusted (loss)/profit per diluted | (0.11) | 0.05 | (2.56) | (1.70) | (4.12) | ||||||
View original content:https://www.prnewswire.com/news-releases/daqo-new-energy-announces-unaudited-fourth-quarter-and-fiscal-year-2025-results-302698093.html
SOURCE Daqo New Energy Corp.
FAQ
What were DQ's Q4 2025 revenues and net loss per ADS?
How much cash and liquid assets did DQ hold at year-end 2025?
What production guidance did DQ give for 2026 and Q1 2026?
How did DQ's full-year 2025 performance compare to 2024?
What were DQ's Q4 2025 polysilicon volumes and costs?
