Daqo New Energy (DQ) Q2 2026 earnings summary

Executive summary

• Revenue rose to $62.7 million in Q2 2026 from $26.7 million in Q1 2026, driven by resumed sales and higher volumes.

• Net loss attributable to shareholders narrowed to $81.2 million from $88.4 million sequentially, with loss per ADS at $1.20.

• Maintained a robust balance sheet with $1.9B in liquid assets and zero debt as of June 30, 2026.

• Operational discipline included a 57% capacity utilization rate and a shift to market-oriented sales in June, resulting in higher sales volume but lower average selling prices.

• Diversification efforts began with an investment in next-generation energy solutions for AI data center power infrastructure.

Financial highlights

• Gross loss was $82.7 million, improved from $139 million in Q1 2026; gross margin improved to -132.0% from -521.5%.

• EBITDA (non-GAAP) was negative $29.3 million, a significant improvement from negative $83.1 million in Q1 2026.

• Net cash used in operating activities was $276.2 million for H1 2026, up from $105.4 million in H1 2025.

• Inventory increased to $363.5 million from $258.3 million sequentially.

• Cash, short-term investments, and equivalents totaled $1.92 billion at quarter-end.

Outlook and guidance

• Q3 2026 polysilicon production expected at 40,000–45,000 MT; full-year 2026 guidance at 160,000–180,000 MT.

• Management expects continued market volatility but sees signs of price stabilization and recovery.

• Anticipates forced exit of high-cost and inefficient capacity due to new energy consumption standards effective Jan 2027.

• Expects market recovery and improved environment by 2027, with inventory levels targeted to decline.

• Management anticipates continued stabilization and potential recovery in polysilicon prices due to regulatory and industry self-regulation measures.