US Stock Market Move | Q4 revenue lower than market expectations, Daqo New Energy Corp Sponsored ADR (DQ.US) drops more than 6%.

On Thursday, Daqo New Energy Corp Sponsored ADR (DQ.US) fell more than 6%, closing at $23.5. The company's latest financial report showed that the company's non-GAAP earnings per share for the fourth quarter of 2025 were -$0.11, which was $0.14 higher than market expectations; revenue was $2.217 billion, a 13.5% increase year-on-year, but significantly below market expectations, becoming one of the main factors putting pressure on the stock price. From an operational perspective, Daqo New Energy Corp Sponsored ADR's polysilicon production in the quarter increased to 42,181 tons, a significant increase from the third quarter; however, sales volume decreased to 38,167 tons, lower than the previous quarter's 42,406 tons, showing continued fluctuations in downstream demand and destocking pace. Costs continued to improve, with average total production costs decreasing to $5.83 per kilogram, and cash costs decreasing to $4.46 per kilogram, helping to offset the pressure from price fluctuations. The ASP of polysilicon during the same period was $5.83 per kilogram, a slight increase from the previous quarter. Looking ahead, the company expects production in the first quarter of 2026 to be between 35,000 and 40,000 tons, with annual production between 140,000 and 170,000 tons. Despite the positive signals of cost reduction and production ramp-up, investors remain cautious about short-term profit improvement in the context of unclear industry supply and demand dynamics and price recovery pace, dragging down the stock price.