Daqo New Energy Corp. (NYSE: DQ) shares dropped 14.6% after the polysilicon manufacturer reported a second-quarter loss that exceeded analyst forecasts and revenue that fell short of expectations.
The company posted a loss of $1.20 per American Depositary Share (ADS) for Q2 2026, compared with the consensus estimate of a $0.53 loss. Revenue totaled $62.7 million, missing the $114.7 million estimate by 45%. Revenue rose sequentially from $26.7 million in Q1 but declined 17% year-over-year from $75.2 million in Q2 2025.
Gross loss improved to $82.7 million from $139.4 million in the prior quarter, though gross margin remained deeply negative at negative 132.0%, an improvement from negative 521.5% in Q1. The company held $1.9 billion in cash and cash equivalents as of June 30, with no debt.
Production volumes reached 43,675 metric tons, while polysilicon sales volume increased to 15,190 metric tons from 4,482 metric tons in Q1. The average selling price fell to $4.04 per kilogram from $5.96 per kilogram, reflecting softer market conditions.
CEO Xiang Xu attributed the results to cautious industry sentiment amid weak domestic demand and elevated inventory levels across the solar photovoltaic supply chain. Despite the headwinds, he noted a sequential rebound in revenue following the resumption of sales in June.
For Q3 2026, Daqo expects polysilicon production of 40,000 to 45,000 metric tons, with a midpoint of 42,500 metric tons. Full-year production is projected at 160,000 to 180,000 metric tons, centered on 170,000 metric tons.
