Daqo New Energy Corp. (NYSE:DQ) released its unaudited financial results for the third quarter ended September 30, 2026, reporting a sharp sequential revenue increase alongside a narrowed net loss compared to the prior quarter.

Key Highlights

  • Revenue tripled sequentially: Revenue was $194.2 million in Q3 2026, compared to $62.7 million in Q2 2026 and $244.6 million in Q3 2025, according to the filing.
  • Sales volume surged: Polysilicon sales volume rose to 46,910 MT in Q3 2026, up from 15,190 MT in Q2 2026.
  • Production exceeded guidance: Total polysilicon production volume was 53,469 MT in Q3 2026, above the company's guidance range of 40,000 MT to 45,000 MT.
  • Record-low production costs: Average total production cost fell to $5.37/kg and average cash cost fell to $4.23/kg in Q3 2026, each described by management as new record lows.
  • Gross loss narrowed: Gross loss was $60.6 million in Q3 2026, compared to $82.7 million in Q2 2026; gross margin was negative 31.2% versus negative 132.0% in Q2 2026.
  • Net loss attributable to shareholders: Net loss attributable to Daqo New Energy Corp. shareholders was $52.9 million in Q3 2026, with loss per basic ADS of $0.78, compared to $81.2 million and $1.20 per ADS in Q2 2026.
  • Liquidity position: Aggregate cash, short-term investments, bank notes receivable, held-to-maturity investments, and fixed-term bank deposit balance totaled $2.06 billion at the end of Q3 2026, up from $1.92 billion at the end of Q2 2026.

Daqo New Energy Q3 2026 Results: Volumes and Costs Drive Sequential Improvement

According to the filing, Daqo New Energy's Q3 2026 results reflected a significant sequential recovery in shipments following a shift in strategy. The company disclosed that sales volume rose sharply from 15,190 MT in Q2 to 46,910 MT in Q3, which it attributed to a move away from a "wait-and-see stance" toward a "more market-oriented sales and pricing strategy" made in June. The average selling price increased 2.0% sequentially to $4.12/kg, though management noted this increase "lagged the broader market recovery" because Q3 shipments fulfilled orders signed before late July.

On the cost side, the filing reported that average total production cost fell 9.7% sequentially to $5.37/kg, and average cash cost declined 7.4% to $4.23/kg, with management characterizing both as new record lows. Non-GAAP EBITDA was negative $9.2 million in Q3 2026, compared to negative $29.3 million in Q2 2026, with EBITDA margin improving to negative 4.7% from negative 46.8%. The company held cash and cash equivalents and restricted cash of $546.5 million, short-term investments of $267.3 million, bank notes receivable of $161.5 million, held-to-maturity investments of $51.6 million, and a fixed-term bank deposit balance of $1.0 billion as of September 30, 2026.

The filing also disclosed that on June 3, 2026, the company announced an investment agreement to establish a manufacturing base targeting the AI data center power infrastructure market, including energy storage systems, solid-state transformers, and solid-state circuit breakers. The company stated that this platform is anchored by Daqo Group, described as "an affiliated entity under common beneficial ownership with Daqo New Energy Corp." For Q4 2026, the company disclosed an expected polysilicon production volume of approximately 35,000 MT to 45,000 MT, and a full-year 2026 production volume expectation in the range of 175,000 MT to 185,000 MT.

What Was Disclosed

Daqo New Energy filed unaudited Q3 2026 financial results showing revenue of $194.2 million, a net loss of $52.9 million attributable to shareholders, polysilicon production of 53,469 MT, and an aggregate liquidity position of $2.06 billion at quarter end.