China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy Corporation reported revenue of $26.7 million in the first quarter (Q1) of 2026, down 78.5% year-over-year (YoY) from $123.9 million.

Revenue missed analysts’ expectations by $182.65 million.

The decrease in revenues was primarily due to lower sales volume, as the company reduced sales considering relatively low selling prices.

The company reported a loss of $88.4 million, compared with $71.8 million in Q1 2025.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reported a loss of $83.1 million, compared to a loss of $48.4 million the previous year.

Earnings per share (EPS) came to a loss of $1.31, compared to a loss of $1.07 in the same period the previous year.

As of March 31, 2026, the company had $559.4 million in cash, cash equivalents, and restricted cash, compared to $791.9 million as of March 31, 2025.

Polysilicon sales volume decreased by 84% to 4,482 metric tons in Q1 2025, down from 28,008 metric tons in Q1 2025.

The company said that with the solar market affected by seasonality around the Chinese New Year holidays and the lack of concrete updates on capacity-rationalization policies, polysilicon transactions and shipment volumes remained low during the quarter.

N-type polysilicon prices dropped from RMB48 (~$7.02) per kilogram at the end of 2025 to RMB35 (~$5.12) by the end of the first quarter.

The company’s total production volume at its two polysilicon facilities was 43,402 metric tons for the quarter, exceeding the guidance range of 35,000 metric tons to 40,000 metric tons.

With market prices for polysilicon falling below production costs during the quarter, the company adhered to the Chinese authorities’ self-regulation guidelines by refraining from below-cost sales.

Xiang Xu, Chief Executive Officer at Daqo New Energy, commented, “In Q1 2026, market sentiment across the solar industry remained cautious amid seasonal softness and elevated inventory levels. It was further exacerbated by rising module prices, driven by higher costs of silver, aluminum, and glass, which led to a slowdown in China’s market. Geopolitical tensions in the Middle East also weighed on end-market demand in the region. Against this backdrop, persistent industry overcapacity continued to exert downward pressure on polysilicon prices, resulting in quarterly operating and net losses.”

Outlook

Daqo expects total polysilicon production volume in Q2 2026 to be approximately 35,000-40,000 metric tons. For the full year of 2026, it expects production volume to remain in the range of 140,000 MT to 170,000 metric tons.

“Looking ahead, we expect government authorities to strengthen the anti-involution policies necessary to address these industry-wide overcapacity issues. As an encouraging move, on April 17, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the National Energy Administration, and other key national departments jointly held a symposium on regulating market competition within the solar sector, reinforcing the urgent need to address irrational competition and curb destructive involution,” Xu said.

Daqo New Energy reported revenue of $221.71 million in Q4 2025, up 13.5% YoY from $195.36 million, but missed analysts’ expectations by $55.23 million.