Daqo New Energy Reports $26.7M Q1 Revenue and $139.4M Gross Loss
Daqo New Energy reported Q1 revenue of $26.7 million and a $139.4 million gross loss, yielding a negative 521.5% gross margin and $88.4 million loss. Polysilicon output reached 43,402 MT, sales fell to 4,482 MT as ASP rose 2.3% to $5.96/kg; cash and investments totaled $2.00 billion with zero debt.
1. Q1 Financial Performance
Daqo New Energy reported Q1 2026 revenue of $26.7 million, a gross loss of $139.4 million and a negative 521.5% gross margin, resulting in a net loss of $88.4 million or $1.31 per ADS. EBITDA was negative $83.1 million, with an EBITDA margin of negative 311.1%.
2. Production Volumes and Pricing
Polysilicon production increased to 43,402 MT from 42,181 MT in Q4 2025, while sales plunged to 4,482 MT from 38,167 MT as the company declined below-cost sales. Average selling price rose 2.3% sequentially to $5.96/kg, and average total production and cash costs edged up to $5.95/kg and $4.59/kg, respectively.
3. Liquidity and Balance Sheet
As of March 31, Daqo held $2.00 billion in cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed-term bank deposits, with zero debt. This strong liquidity base provides strategic flexibility to manage through current market challenges.
4. Market Context and Strategic Response
The solar PV industry experienced seasonal softness, elevated inventory and rising module material costs, exacerbated by geopolitical tensions that dampened demand. With capacity utilization at approximately 57%, Daqo maintained disciplined output and pricing, awaiting further policy measures to address industry overcapacity.