Daqo New Energy Corp. (NYSE: DQ) saw its stock price plummet 7.33% in pre-market trading on Tuesday following the release of its disappointing first-quarter 2025 financial results. The company, a leading manufacturer of high-purity polysilicon for the global solar PV industry, reported significant losses and a substantial decline in revenue, falling short of analyst expectations.

According to the unaudited Q1 2025 results, Daqo New Energy posted an adjusted net loss of $53.2 million and a net loss of $71.8 million. The company's quarterly revenue stood at $123.9 million, marking a stark 70.16% decrease from $415.31 million in the same period last year. Adjusted earnings per share came in at $(0.80), missing the analyst consensus estimate of $(0.69) by 15.94%. Similarly, the quarterly sales of $123.91 million fell short of the expected $182.08 million by 31.94%.

The company's financial struggles were further highlighted by a negative adjusted EBITDA of $48.4 million and an adjusted EBITDA margin of -39.1%. These results reflect the challenging market conditions faced by Daqo New Energy in a competitive and rapidly evolving solar energy market. Despite the setbacks, the company provided guidance for the upcoming periods, expecting to produce between 25,000 MT to 28,000 MT of polysilicon during Q2 2025 and anticipating full-year 2025 polysilicon production to range from 110,000 MT to 140,000 MT. However, these projections did little to alleviate investor concerns, as reflected in the significant pre-market stock plunge.