Daqo Posts $62.7 Million in Second-Quarter Revenue Amid Sharp Gross Losses
Key Facts
Daqo New Energy’s second-quarter 2026 results showed revenue of $62.7 million, up from $26.7 million in the first quarter but below the $75.2 million recorded in the year-earlier period. Nasdaq published the figures, citing the company’s announcement, which described the results as unaudited. The sequential revenue improvement followed the resumption of sales in June, according to the CEO in the announcement. He said the return to sales lifted revenue from the previous quarter and reduced quarterly operating and net losses. The company, however, continued to face weak domestic demand and rising inventories, according to its comments on market conditions.
The revenue improvement was not matched by a similar improvement in gross loss, which was $82.7 million in the second quarter, compared with a loss of $139.4 million in the first quarter and $81.4 million in the second quarter of 2025. Gross margin was negative 132.0%, versus negative 521.5% in the previous quarter and negative 108.3% a year earlier. The comparison shows that gross loss narrowed sharply quarter on quarter but widened slightly year on year, while the negative margin remained deeper than a year earlier. Nasdaq reported the results, citing Daqo’s announcement. In the same announcement, the company linked its operating environment to weak domestic demand and high inventories, without attributing the change in losses solely to those factors.
Polysilicon sales volume rose to 15,190 metric tons in the second quarter from 4,482 tons in the first quarter, but the average selling price fell to $4.04 per kilogram. The company said average total production cost remained stable quarter on quarter at $5.95 per kilogram. The reported selling price was therefore below production cost per kilogram during the period, amid the falling prices, weak demand and rising inventories cited by the company. N-type polysilicon prices were between 35 and 37 yuan per kilogram at the end of the first quarter, then fell to a range of 31–34 yuan at the end of the second quarter. Nasdaq reported these figures, citing the company, which set higher sales volumes against lower prices and production costs that remained at their quarterly level.
Management said the resumption of sales in June enabled a sequential increase in revenue, alongside narrower operating and net losses. This followed a rise in sales volume from 4,482 metric tons in the first quarter to 15,190 tons in the second quarter, while the average selling price fell to $4.04 per kilogram. The company, meanwhile, reported total production cost of $5.95 per kilogram, and gross margin remained negative at 132.0%. The announcement’s figures show sequential improvement in revenue, gross loss and margin, alongside lower prices than at the end of the first quarter. The year-on-year comparison, however, shows lower revenue than in the second quarter of 2025 and a slightly higher gross loss.
On liquidity, Daqo said cash, investments and bank notes convertible into cash totaled $1.9 billion as of June 30, 2026. The CEO added that the company had no debt, describing its liquid assets as providing liquidity and strategic flexibility to weather the market downturn. The figures come as the company recorded a quarterly gross loss of $82.7 million, with its average selling price remaining below reported production cost. The liquidity data offer a picture of the resources management said were available at the end of June. Nasdaq reported the amount and the CEO’s comment, citing the company’s announcement.
The company had forecast production of approximately 40,000 to 45,000 metric tons of polysilicon in the third quarter of 2026, with total production of between 160,000 and 180,000 metric tons during the year. This guidance appeared in the second-quarter results announcement and therefore represents a forecast made before the subsequent period, not the third quarter’s production outcome. Daqo also said a new Chinese standard setting energy consumption limits per unit of output would take effect on January 1, 2027. According to the company, producers whose consumption exceeds 6.3 kilograms of coal equivalent per kilogram of output must complete remediation before the standard takes effect or face the risk of facility closures. The deadline and its requirements add a regulatory consideration for polysilicon producers in the coming months.
DQ closed at $10.11 on October 26, 2026, according to EL7 data. The close came one day before the date referenced in the news brief, but documented facts for the third-quarter figures, revenue and earnings per share in the initial draft were not available here. The documented closing-price data also do not include the day’s trading range. The latest specific financial results in the available evidence are the second-quarter results published by Nasdaq, citing the company’s announcement. The available production guidance covers the third quarter and full-year 2026, as previously announced by the company.