SHANGHAI – October 28, 2026 -- Daqo New Energy Corp. (NYSE: DQ) cut its third-quarter 2026 net loss attributable to shareholders to $52.9 million from $81.2 million in Q2, as polysilicon sales volume tripled to 46,910 MT from 15,190 MT. Revenue rose to $194.2 million from $62.7 million in the prior quarter, though it remained below the $244.6 million booked in Q3 2025.
Gross loss narrows to $60.6 million as impairment provisions fall
Gross margin improved to negative 31.2% from negative 132.0% in Q2. In Q3 2025 the company posted a gross profit of $9.7 million, a 3.9% margin. The company attributed the sequential improvement to higher selling prices, lower production costs and lower inventory impairment provisions, which fell to $30.9 million from $55.7 million. EBITDA was negative $9.2 million, against negative $29.3 million in Q2. Loss per basic ADS was $0.78, compared with $1.20 in Q2.
SG&A expenses were $16.3 million, up from $15.8 million in Q2 on higher sales volume, and down from $32.3 million a year earlier.
Daqo sets record-low cost of $5.37/kg while ASP edges up 2.0% to $4.12/kg
Average total production cost fell 9.7% sequentially to $5.37/kg, and average cash cost fell 7.4% to $4.23/kg. Both are record lows for the company. The average selling price of $4.12/kg still sits below total production cost, and it lagged the broader market recovery because Q3 shipments fulfilled orders signed before late July.
Production reached 53,469 MT against guidance of 40,000-45,000 MT, at roughly 70% of nameplate capacity. Sales volume jumped after Daqo moved in June from a wait-and-see stance to a more market-oriented sales and pricing strategy.
Anti-involution rules lift N-type prices to RMB 40-43/kg
The State Administration for Market Regulation issued price compliance guidance for solar PV on July 31. In August, an industry initiative against below-cost sales followed, which Daqo co-signed. N-type polysilicon prices rebounded from a Q2 trough of RMB 30.5-33/kg to about RMB 40-43/kg by the end of Q3. On September 3, the National Development and Reform Commission and SAMR jointly issued a notice on cost accounting for low-price disordered competition in key industrial products.
Downstream buyers continue to hold inventories and limit purchases to immediate needs, keeping sector trading volumes low. Daqo is evaluating a lower near-term utilization rate to support destocking. It guides Q4 production to 35,000-45,000 MT and full-year 2026 output to 175,000-185,000 MT, including annual facility maintenance.
Liquid assets rise to $2.06 billion with zero debt
Combined cash, short-term investments, bank notes receivable, held-to-maturity investments and fixed-term deposits totaled $2.06 billion at September 30, up from $1.92 billion at the end of Q2. The total includes $546.5 million in cash, cash equivalents and restricted cash, $267.3 million in short-term investments, $161.5 million in bank notes receivable, $51.6 million in held-to-maturity investments and $1.0 billion in fixed-term bank deposits. The company reported no debt during the period.
Daqo targets AI data center power equipment under June 3 investment agreement
Daqo announced an investment agreement on June 3, 2026, to build a manufacturing base for AI data center (AIDC) energy solutions. Planned products include energy storage systems, solid-state transformers and solid-state circuit breakers for high-voltage direct current architectures such as the 800V DC standard advanced by Nvidia. The platform is anchored by Daqo Group, an affiliate under common beneficial ownership with more than 40 years of power equipment manufacturing experience. Management said it will pursue the expansion while preserving balance sheet strength.