The massive EPS miss and continued below-cost ASP signal severe industry distress. Monitor Q3 for signs of price recovery from anti-involution policies and the AIDC diversification's capital requirements. The strong balance sheet provides a floor, but the core business is burning cash.
Price Chart
Executive Summary
Daqo New Energy reported Q2 2026 EPS of -$1.20, a 110.5% miss vs consensus of -$0.57, and revenue of $62.7M vs $56.1M estimate. While sales volume surged to 15,190 MT from 4,482 MT in Q1, the polysilicon ASP collapsed to $4.04/kg from $5.96/kg, driving a gross margin of -132% and a net loss of $81.2M. The company highlighted nascent regulatory anti-involution measures and a new AIDC power infrastructure diversification, but the core polysilicon business remains deeply unprofitable with ASP below cash cost.
Key Financial Metrics
Key Facts
- EPS of -$1.20 missed consensus of -$0.57 by 110.5%.
- Revenue of $62.7M beat the $56.1M estimate but fell 16.6% YoY from $75.2M.
- Polysilicon ASP dropped to $4.04/kg from $5.96/kg QoQ, below cash cost of $4.57/kg.
- Gross margin was negative 132.0% (improved from -521.5% QoQ due to lower inventory impairment).
- Net loss attributable to shareholders was $81.2M vs $76.5M in Q2 2025.
- Sales volume surged to 15,190 MT from 4,482 MT QoQ after resuming market-oriented sales.
- Operating cash flow was -$276.2M for the first half of 2026 vs -$105.4M in H1 2025.
- Company guided Q3 2026 production of 40,000-45,000 MT and full-year 2026 production of 160,000-180,000 MT.
- Announced diversification into AI data center power infrastructure via a new manufacturing base.
- Cash and liquid assets totaled $1.92B with zero debt.
Financial Impact
EPS miss of 110.5% vs consensus; revenue beat of 11.8% but YoY decline of 16.6%; gross margin remains deeply negative at -132%.
Risk Factors
- Polysilicon prices remain below production costs, with no clear timeline for recovery.
- Operating cash burn of $276M in H1 2026 could pressure liquidity if losses persist.
- Diversification into AIDC power infrastructure is early-stage and unproven.
- Regulatory anti-involution measures may not materialize or may be insufficient to restore pricing.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302856319 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | 6-K | $10.71 $10.65 | ▼ −0.56% | ▼ −0.84% | $10.11 (−5.60%) |
Oct 13, 2026 13d ago | Press Release | $11.09 $10.71 | ▼ −3.43% | ▼ −2.35% | $10.11 (−8.84%) |
Sep 22, 2026 4w ago | Institutional Cluster | $12.31 $11.91 | ▼ −3.25% | ▼ −2.53% | $10.11 (−17.87%) |
Aug 20, 2026 9w ago | Press Release | $14.98 $13.58 | ▲ +9.35% | ▲ +9.75% | $10.11 (+32.51%) |
Aug 6, 2026 11w ago | 6-K | $13.55 $14.72 | ▲ +8.63% | ▲ +8.02% | $10.11 (−25.39%) |
Jun 3, 2026 20w ago | 6-K | $16.06 $16.88 | ▲ +5.11% | ▲ +4.71% | $10.11 (−37.05%) |
Apr 29, 2026 25w ago | 6-K | $19.35 $19.22 | ▲ +0.67% | ▲ +1.70% | $10.11 (+47.75%) |
Apr 15, 2026 27w ago | 6-K | $21.69 $21.47 | ▼ −1.01% | ▼ −1.27% | $10.11 (−53.39%) |
Feb 28, 2026 34w ago | Institutional Cluster | $23.82 $22.60 | ▼ −5.12% | ▼ −4.21% | $10.11 (−57.56%) |
US Market Status
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