Daqo New Energy Announces Unaudited Second Quarter 2026 Financial Results
Rhea-AI Summary
Daqo New Energy (NYSE:DQ) reported Q2 2026 revenues of $62.7 million, up from $26.7 million in Q1 2026 but below $75.2 million a year earlier. Polysilicon sales volume rose sharply to 15,190 MT from 4,482 MT, while production was 43,675 MT and nameplate utilization about 57%.
Average polysilicon ASP fell to $4.04/kg, below the total production cost of $5.95/kg, resulting in a gross loss of $82.7 million and gross margin of negative 132.0%. Net loss attributable to shareholders was $81.2 million, or $1.20 per basic ADS. EBITDA (non-GAAP) improved sequentially to negative $29.3 million, with margin at negative 46.8%.
Daqo New Energy reported cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed term bank deposits totaling about $1.92 billion and no debt. The company guides Q3 2026 polysilicon production to 40,000–45,000 MT and full-year 2026 to 160,000–180,000 MT, and is investing in next-generation energy solutions for AI data center power infrastructure.
Positive
- Revenue $62.7m in Q2 2026, up from $26.7m in Q1
- Polysilicon sales volume 15,190 MT, more than triple Q1 2026
- EBITDA (non-GAAP) -$29.3m vs -$83.1m in Q1, margin -46.8%
- Gross loss $82.7m, improved from $139.4m in Q1 on lower impairments
- Liquidity about $1.92bn in cash, investments and deposits; zero debt
- Guided production 160,000–180,000 MT for full-year 2026
Negative
- ASP $4.04/kg, below total production cost of $5.95/kg
- Gross margin -132.0% in Q2 2026, indicating continued loss-making operations
- Net loss $81.2m and loss per ADS $1.20 in Q2 2026
- Adjusted net loss $81.2m vs $57.9m in Q2 2025
- Revenues $62.7m, down from $75.2m in Q2 2025
- Nameplate utilization ~57%, highlighting underused capacity amid weak demand
News Explained
Six-month operating cash use was $276.2 million, adding a disclosed cash outflow alongside the $1.92 billion liquid-asset aggregate at June 30.
Daqo New Energy reported unaudited second-quarter results for the quarter ended
It also states that subsidiary Xinjiang Daqo's
Market reaction after 2Q26 earnings report: DQ -7.83%
Following this news, DQ has declined 7.83%, reflecting a notable negative market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $12.95. Trading volume is exceptionally heavy at 22.4x the average, suggesting significant selling pressure.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 29 | Q1 earnings report | Negative | -11.8% | Severe losses and sharply reduced polysilicon sales accompanied weak quarterly results. |
| Feb 26 | Q4 earnings report | Negative | -4.6% | Annual losses and cautious 2026 production guidance accompanied the quarterly financial release. |
| Oct 27 | Q3 earnings report | Positive | +14.1% | Higher revenue, gross profit, EBITDA, and polysilicon sales supported the quarterly results. |
| Aug 26 | Q2 earnings report | Negative | -0.8% | Industry overcapacity drove lower revenue, losses, reduced utilization, and declining polysilicon sales. |
| Apr 29 | Annual report filing | Neutral | -13.8% | The filing presented audited fiscal-year information without a newly reported operating result. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events produced a negative average move of -3.38%, with negative or challenging releases generally followed by declines.
Key Terms
EBITDA financial
non-GAAP financial
ADS financial
nameplate capacity utilization rate technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Financial and Operating Highlights
- Aggregate of cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed term bank deposit balance was
$1.92 billion $2.00 billion - Polysilicon production volume was 43,675 MT in Q2 2026, compared to 43,402 MT in Q1 2026
- Polysilicon sales volume was 15,190 MT in Q2 2026, compared to 4,482 MT in Q1 2026
- Polysilicon average total production cost(1) was
$5.95 $5.95 - Polysilicon average cash cost(1) was
$4.57 $4.59 - Polysilicon average selling price (ASP) was
$4.04 $5.96 - Revenue was
$62.7 million $26.7 million - Gross loss was
$82.7 million $139.4 million 132.0% in Q2 2026, compared to negative521.5% in Q1 2026 - Net loss attributable to Daqo New Energy Corp. shareholders was
$81.2 million $88.4 million $1.20 $1.31 - Adjusted net loss (non-GAAP)(2) attributable to Daqo New Energy Corp. shareholders was
$81.2 million $88.4 million - Adjusted loss per basic ADS(3) (non-GAAP)(2) was
$1.20 $1.31 $29.3 million $83.1 million 46.8% in Q2 2026, compared to negative311.1% in Q1 2026
Three months ended | |||
US$ millions except as indicated otherwise | Jun. 30, | Mar. 31, | Jun. 30, |
Revenues | 62.7 | 26.7 | 75.2 |
Gross loss | (82.7) | (139.4) | (81.4) |
Gross margin | (132.0) % | (521.5) % | (108.3) % |
Loss from operations | (98.1) | (150.8) | (115.0) |
Net loss attributable to Daqo New Energy Corp. | (81.2) | (88.4) | (76.5) |
Loss per basic ADS(3) ($ per ADS) | (1.20) | (1.31) | (1.14) |
Adjusted net loss (non-GAAP)(2) attributable to Daqo | (81.2) | (88.4) | (57.9) |
Adjusted loss per basic ADS(3) (non-GAAP)(2) ($ per | (1.20) | (1.31) | (0.86) |
EBITDA (non-GAAP)(2) | (29.3) | (83.1) | (48.2) |
EBITDA margin (non-GAAP)(2) | (46.8) % | (311.1) % | (64.0) % |
Polysilicon sales volume (MT) | 15,190 | 4,482 | 18,126 |
Polysilicon average total production cost ($/kg)(1) | 5.95 | 5.95 | 7.26 |
Polysilicon average cash cost (excl. dep'n) ($/kg)(1) | 4.57 | 4.59 | 5.12 |
Notes: |
(1) Production cost and cash cost only refer to production in our polysilicon facilities. Production cost is calculated by the inventoriable |
(2) Daqo New Energy provides EBITDA, EBITDA margins, adjusted net income attributable to Daqo New Energy Corp. shareholders and |
(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 the second quarter of 2026, market sentiment across the solar PV industry remained cautious amid weak domestic demand and elevated inventory levels, which drove prices lower across the solar value chain. Despite these headwinds, we resumed sales in June, delivering a sequential increase in revenue and a narrowing of our quarterly operating and net losses. Throughout this period, we continued to maintain a robust and healthy balance sheet with zero debt. As of June 30, 2026, we held a cash balance of
"On the operational front, we continued to take proactive measures to navigate challenging market conditions, with our nameplate capacity utilization rate operating at approximately
"In light of the current market dynamics, we expect total polysilicon production volume in the third quarter of 2026 to be approximately 40,000 MT to 45,000 MT. For the full year of 2026, we expect production volume to be in the range of 160,000 MT to 180,000 MT."
"Polysilicon market prices came under further downward pressure during the second quarter, with N-type polysilicon prices falling from
"We are also diversifying beyond our core polysilicon business to hedge against solar PV cyclicality, targeting the fast-growing AI data center (AIDC) power infrastructure market. On June 3, 2026, we announced the signing of an investment agreement to establish a manufacturing base focused on the R&D, manufacturing and sale of next-generation energy solutions and related equipment for AIDCs. This includes energy storage systems, solid-state transformers, and solid-state circuit breakers. These technologies support the industry's transition to high-voltage direct current architecture, such as the 800V DC standard advanced by Nvidia and other leading AI infrastructure providers. The platform is anchored by Daqo Group, our affiliated entity under common beneficial ownership with Daqo New Energy Corp., which brings over 40 years of power equipment manufacturing expertise, established technology, and deep talent and customer relationships to accelerate our entry into this segment. We view AIDC power infrastructure as a structural growth opportunity that complements our core business and broadens our earnings base. Consistent with our strong track record having navigated several polysilicon cycles, we intend to pursue this expansion in a disciplined manner that preserves our balance sheet strength."
"Despite a challenging environment, the solar PV industry continues to exhibit compelling long-term growth prospects. Growing vulnerabilities in global energy markets have sparked widespread concerns about national energy security, in which the solar PV and renewable energy sectors can play a crucial role. As one of the world's lowest-cost producers of the highest-quality N-type polysilicon, backed by a robust balance sheet and zero debt, we remain optimistic about the sector and are well positioned to capitalize on the anticipated market recovery and long-term growth opportunities. We will continue to strengthen our competitive edge through advancements in high-efficiency N-type technology and cost optimization via digital transformation and AI adoption. As the world accelerates its transition to clean energy, we are confident in our ability to play a leading role in shaping that future."
Outlook and guidance
The Company expects to produce approximately 40,000 MT to 45,000 MT of polysilicon during the third quarter of 2026. The Company expects to produce approximately 160,000 MT to 180,000 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.
Second Quarter 2026 Results
Revenues
Revenues were
Gross loss
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
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 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, excluding non-cash share-based compensation costs, was
Adjusted loss per basic ADS was
EBITDA
EBITDA (non-GAAP) was negative
Financial Condition
As of June 30, 2026, the Company had
Cash Flows
For the six months ended June 30, 2026, net cash used in operating activities was
For the six months ended June 30, 2026, net cash used in investing activities was
For the six months ended June 30, 2026, 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 elements 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 will hold a conference call to discuss the financial results at 8:00 AM
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 call.
Webcast link:
https://app.webinar.net/2NXKalz98Rz
A replay of the call will be available 1 hour after the conclusion of the conference call through August 27, 2026. Dial in details for the replay are as follows:
International toll: +1-412-317-0088
Replay access code: 6672616
To access the replay through an international dial-in number, please visit the link below.
https://services.choruscall.com/ccforms/replay.html
Participants will be asked to provide their name and company name upon joining 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 Statements of Operations | ||||||||||
(US dollars in thousands, except ADS and per ADS data) | ||||||||||
Three months ended | Six months ended | |||||||||
Jun. 30, | Mar. 31, 2026 | Jun. 30, | Jun. 30, | Jun. 30, | ||||||
Revenues | 62,657 | 26,722 | 75,189 | 89,378 | 199,104 | |||||
Cost of revenues | (145,366) | (166,088) | (156,595) | (311,453) | (362,045) | |||||
Gross loss | (82,709) | (139,366) | (81,406) | (222,075) | (162,941) | |||||
Operating expenses | ||||||||||
Selling, general and administrative | (15,834) | (12,163) | (32,121) | (27,995) | (67,206) | |||||
Research and development expenses | (1,550) | (783) | (796) | (2,333) | (1,304) | |||||
Other operating income (expense) | 2,017 | 1,500 | (664) | 3,517 | 2,410 | |||||
Total operating expenses | (15,367) | (11,446) | (33,581) | (26,811) | (66,100) | |||||
Loss from operations | (98,076) | (150,812) | (114,987) | (248,886) | (229,041) | |||||
Interest income, net | 2,405 | 2,516 | 1,593 | 4,921 | 4,263 | |||||
Foreign exchange (loss) gain | (6) | (2) | 3 | (8) | 25 | |||||
Investments income | 4,844 | 4,987 | 6,574 | 9,832 | 12,928 | |||||
Loss before income taxes | (90,833) | (143,311) | (106,817) | (234,141) | (211,825) | |||||
Income tax (expense) benefit | (21,540) | 21,644 | 8,172 | 104 | 20,446 | |||||
Net loss | (112,373) | (121,667) | (98,645) | (234,037) | (191,379) | |||||
Net loss attributable to non-controlling | (31,220) | (33,292) | (22,167) | (64,512) | (43,063) | |||||
Net loss attributable to Daqo New Energy | (81,153) | (88,375) | (76,478) | (169,525) | (148,316) | |||||
Loss per ADS | ||||||||||
Basic | (1.20) | (1.31) | (1.14) | (2.51) | (2.21) | |||||
Diluted | (1.20) | (1.31) | (1.14) | (2.51) | (2.21) | |||||
Weighted average ADS outstanding | ||||||||||
Basic | 67,666,301 | 67,666,301 | 67,243,161 | 67,666,301 | 67,091,514 | |||||
Diluted | 67,666,301 | 67,666,301 | 67,243,161 | 67,666,301 | 67,091,514 | |||||
Daqo New Energy Corp. | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(US dollars in thousands) | |||||||
Jun. 30, 2026 | Mar. 31, 2026 | Jun. 30, 2025 | |||||
ASSETS: | |||||||
Current Assets: | |||||||
Cash, cash equivalents and restricted cash | 555,322 | 559,421 | 598,576 | ||||
Short-term investments | 249,984 | 288,279 | 418,822 | ||||
Accounts and notes receivable | 72,015 | 20,779 | 49,063 | ||||
Inventories | 363,458 | 258,284 | 167,601 | ||||
Fixed term deposit within one year | 928,855 | 1,018,832 | 960,695 | ||||
Other current assets | 364,788 | 365,917 | 327,788 | ||||
Held-to-Maturity Investments | 50,965 | 50,333 | - | ||||
Total current assets | 2,585,387 | 2,561,845 | 2,522,545 | ||||
Property, plant and equipment, net | 3,391,283 | 3,396,463 | 3,446,352 | ||||
Prepaid land use right | 159,117 | 157,388 | 154,077 | ||||
Fixed term deposit over one year | 65,952 | 64,587 | 33,584 | ||||
Other non-current assets | 139,331 | 158,994 | 133,473 | ||||
TOTAL ASSETS | 6,341,070 | 6,339,277 | 6,290,031 | ||||
Current liabilities: | |||||||
Accounts payable and notes payable | 130,576 | 118,895 | 49,629 | ||||
Advances from customers - short term portion | 43,168 | 23,543 | 20,980 | ||||
Payables for purchases of property, plant and equipment | 233,025 | 251,216 | 336,716 | ||||
Other current liabilities | 38,257 | 32,084 | 39,484 | ||||
Total current liabilities | 445,026 | 425,738 | 446,809 | ||||
Advance from customers - long term portion | 14,127 | 5,511 | 18,197 | ||||
Other non-current liabilities | 18,843 | 18,329 | 18,120 | ||||
TOTAL LIABILITIES | 477,996 | 449,578 | 483,126 | ||||
EQUITY: | |||||||
Total Daqo New Energy Corp.'s shareholders' | 4,373,947 | 4,392,608 | 4,325,251 | ||||
Non-controlling interest | 1,489,127 | 1,497,091 | 1,481,654 | ||||
Total equity | 5,863,074 | 5,889,699 | 5,806,905 | ||||
TOTAL LIABILITIES & EQUITY | 6,341,070 | 6,339,277 | 6,290,031 | ||||
Daqo New Energy Corp. | |||||
Unaudited Condensed Consolidated Statements of Cash Flows | |||||
(US dollars in thousands) | |||||
For the six months ended June 30, | |||||
2026 | 2025 | ||||
Operating Activities: | |||||
Net loss | (234,037) | (191,379) | |||
Adjustments to reconcile net income to net cash provided by | 267,706 | 247,112 | |||
Changes in operating assets and liabilities | (309,900) | (161,174) | |||
Net cash used in operating activities | (276,231) | (105,441) | |||
Investing activities: | |||||
Purchases of property, plant and equipment | (55,156) | (87,801) | |||
Purchase of short-term investments and fixed term deposits | (1,064,493) | (2,591,777) | |||
Redemption of short-term investments and fixed term deposits | 960,085 | 2,336,900 | |||
Investment in an affiliate | (43) | - | |||
Net cash used in investing activities | (159,607) | (342,678) | |||
Financing activities: | |||||
Net cash used in financing activities | (7,790) | (32) | |||
Effect of exchange rate changes | 18,658 | 8,378 | |||
Net decrease in cash, cash equivalents and restricted cash | (424,970) | (439,773) | |||
Cash, cash equivalents and restricted cash at the beginning of the year | 980,292 | 1,038,349 | |||
Cash, cash equivalents and restricted cash at the end of the year | 555,322 | 598,576 | |||
Daqo New Energy Corp. | ||||||||||
Reconciliation of non-GAAP financial measures to comparable US GAAP measures | ||||||||||
(US dollars in thousands) | ||||||||||
Three months ended | Six months ended | |||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||
Net loss | (112,373) | (121,667) | (98,645) | (234,037) | (191,379) | |||||
Income tax expense (benefit) | 21,540 | (21,644) | (8,172) | (104) | (20,446) | |||||
Interest income, net | (2,405) | (2,516) | (1,593) | (4,921) | (4,263) | |||||
Depreciation & Amortization | 63,899 | 62,705 | 60,253 | 126,604 | 119,498 | |||||
EBITDA (non-GAAP) | (29,339) | (83,122) | (48,157) | (112,458) | (96,590) | |||||
EBITDA margin (non-GAAP) | (46.8) % | (311.1) % | (64.0) % | (125.8) % | (48.5) % | |||||
Three months ended | Six months ended | |||||||||
Jun. 30, | Mar. 31, | Jun. 30, | Jun. 30, | Jun. 30, | ||||||
Net loss attributable to Daqo New | (81,153) | (88,375) | (76,478) | (169,525) | (148,316) | |||||
Share-based compensation | - | - | 18,606 | - | 37,211 | |||||
Adjusted net loss (non-GAAP) | (81,153) | (88,375) | (57,872) | (169,525) | (111,105) | |||||
Adjusted loss per basic ADS | (1.20) | (1.31) | (0.86) | (2.51) | (1.66) | |||||
Adjusted loss per diluted ADS | (1.20) | (1.31) | (0.86) | (2.51) | (1.66) | |||||
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SOURCE Daqo New Energy Corp.