China-based photovoltaic-grade polysilicon manufacturer Daqo New Energy reported revenue of $194.15 million in the third quarter (Q3) of 2026, down 20.6% year-over-year (YoY) from $244.601 million.

Quarterly revenue beat analysts’ estimates by $132.25 million.

Elevated industry inventories, falling polysilicon prices, and weak near-term demand drove the revenue decline.

However, revenue rose 210.54% to $194.15 million from $62.7 million the last quarter. The sequential increase was driven primarily by higher sales volume as the company resumed normal sales activities in June after adopting a more market-oriented sales and pricing strategy.

Daqo posted a $73.12 million net loss during the quarter, up 392.5% YoY from $14.84 million.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to a loss of $9.22 million, down 120.1% YoY from $45.765 million.

Diluted loss per share was $0.78 during the quarter, up 254.5% from $0.22 in Q3 2025.

The company produced 53,469 MT of polysilicon in Q3 2026, and polysilicon sales volume increased 10.6% to 46,910 MT from 42,406 MT a year ago.

Xiang Xu, CEO at Daqo New Energy, commented, “Supported by continued anti-involution policies, including price enforcement, the polysilicon sector bottomed out and rebounded in Q3, with polysilicon prices gradually recovering towards cost levels. However, downstream players continued to hold polysilicon inventories and largely limited their purchases to immediate operational needs, keeping overall sector trading volumes low.”

As of September 30, 2026, the company held $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 a fixed-term bank deposit balance of $1.0 billion. Together, these readily convertible assets totaled $2.06 billion, up from $1.92 billion at the end of Q2.

9M 2026

Daqo reported revenue of $283.531 million in the first nine months (9M) of 2026, down 36.1% YoY from $443.704 million.

The company’s loss widened to $307.137 million from $206.223 million the previous year.

EBITDA stood at a loss of $121.677 million, up 139.4% YoY from a loss of $50.825 million.

Diluted loss per share was $3.29, up 35.4% from a loss of $2.43 the previous year.

Business Highlights

The company’s total production volume at its two polysilicon facilities was 53,469 MT, exceeding its guidance range of 50,000-55,000 MT. Sales volume rose sharply from 15,190 MT in Q2 to 46,910 MT in Q3, following the company’s June shift from a wait-and-see stance to a more market-oriented sales and pricing strategy.

Daqo is also diversifying beyond its core polysilicon business to reduce its exposure to solar PV cyclicality by targeting the fast-growing AI data center power infrastructure market. On June 3, 2026, it announced an investment agreement to establish a manufacturing base for R&D, manufacturing, and sales of next-generation energy solutions and related equipment for AI data centers, including energy storage systems, solid-state transformers, and solid-state circuit breakers.

Outlook for 2026

The company forecast production volume to be in the range of 175,000 to 185,000 MT  for the full year 2026, and 35,000-45,000 MT for Q4 2026.

Daqo expects to have substantial growth in orders for AIDC-related electrical equipment in 2027.

The company has $140 million in contracted orders expected to be delivered in Q4, and it expects to continue receiving additional orders.

The company reported $62.66 million in revenue in Q2 2026, down 16.7% YoY from $75.19 million.