Daqo New Energy (DQ) stock is facing a steep pre-market plunge of 5.23% on Tuesday following the release of its disappointing second-quarter 2025 financial results. The company, which specializes in high-purity polysilicon for the global solar PV industry, reported significant losses and negative margins, painting a grim picture for investors.

According to the unaudited Q2 results, Daqo New Energy posted a revenue of $75.2 million, while its net income plummeted to a loss of $76.5 million. The adjusted net income wasn't much better, standing at a negative $57.9 million. Perhaps most concerning for investors is the company's adjusted EBITDA, which came in at -$48.2 million with a staggering -64% adjusted EBITDA margin.

The company's financial woes extend beyond the second quarter, with Xinjiang Daqo New Energy Co Ltd reporting a net loss of 1.1 billion yuan ($153.78 million) for the first half of 2025. These results indicate severe challenges in the company's operations and profitability, likely stemming from industry-wide pressures in the solar energy sector. As investors digest these disappointing figures, the pre-market plunge suggests a significant loss of confidence in Daqo New Energy's near-term prospects.