The company's cash conversion efficiency is severely impaired, evidenced by a negative free cash flow of $176.2 million and a capital expenditure to revenue ratio of 107.4% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | -52.61M | 56.12M | -435.64M | 1.62B | 2.47B | 638.99M | 209.7M | 102.78M | 95.55M | 142.71M | 98.67M | 66.42M | 45.62M | -16.52M | -10.31M | 44.86M | 125.62M | -2.73M | 102.65M | 0 |
| Operating CF Margin % | - | 8.43% | -42.33% | 70.03% | 53.53% | 38.06% | 31.04% | 29.37% | 31.68% | 40.44% | 43.07% | 36.49% | 24.99% | -15.16% | -11.87% | 17.53% | 51.76% | -2.45% | 182.12% | - |
| Operating CF Growth % | 209.69% | 112.88% | -126.96% | -34.49% | 286.07% | 204.71% | 104.03% | 7.57% | -33.04% | 44.63% | 48.55% | 45.61% | 376.07% | -60.32% | -122.98% | -64.29% | 4702.37% | -102.66% | - | - |
| Net Income | -187.34M | -170.96M | -345.39M | 429.55M | 2.52B | 864.85M | 133.95M | 28.31M | 62.07M | 93.86M | 43.92M | 13.05M | 16.65M | -221.09M | -115.64M | 34.91M | 69.15M | 29.94M | 21.85M | -47.54K |
| Depreciation & Amortization | -58.95M | 248.52M | 206.46M | 148.89M | 107.1M | 77.37M | 68.69M | 47.5M | 27.49M | 38.82M | 33.82M | 31.36M | 28.01M | 52.25M | 37.37M | 35.48M | 30.75M | 16.09M | 7.82M | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 149.76M | 307.45M | 10.08M | 17.91M | 0 | 13.79M | 4.2M | 2.7M | 3.69M | 1.79M | 1.88M | 2.25M | 2.21M | 1.61M | 258.58K | 0 | 0 |
| Deferred Taxes | 0 | 0 | -92.01M | 0 | 65.06M | 0 | 0 | 4.7M | -152K | -85K | 445 | -627K | -552 | 1.42M | 11.57M | -219.49M | -219.49K | -578.11K | -44.8K | 0 |
| Other Non-Cash Items | 416.81M | 52.37M | 258.93M | 39.34M | -40.11M | 5.54M | 3.63M | 19.27M | 17.99M | 3.14M | -673.45K | -176K | -3.33M | 193.81M | 56.84M | 273.46M | 150.85K | 137.51K | 68.68K | 0 |
| Working Capital Changes | -189.83M | -73.65M | -463.64M | 848.51M | -492.34M | -318.84M | -14.46M | 3M | -25.64M | 2.77M | 18.9M | 19.13M | 2.5M | -44.79M | -2.7M | -81.71M | 24.18M | -48.57M | 72.96M | 47.54K |
| Change in Receivables | 0 | 0 | 58.95M | 987.39M | -816.24M | -360.14M | 5.47M | 3.56M | -540K | 2.11M | 14.89M | -10.4M | 4.78M | 12.43M | -10.3M | -7.85M | 1.53M | -14.27M | -2.44M | 0 |
| Change in Inventory | 0 | 0 | -59.04M | -26.62M | 138.26M | -280.19M | -5.13M | -19.91M | -641K | -6.25M | -2.26M | -1.62M | 485K | -25.27M | -6.75M | -26.58M | -6.52M | 91.34K | -4.81M | 0 |
| Change in Payables | 0 | 0 | -64.86M | 13.37M | 7M | 61.07M | 4.56M | 3.67M | -9.45M | 2.31M | 2.39M | 1.45M | -476K | 5.35M | 3.25M | 10.27M | 808.01K | 333.32K | 3.13M | 0 |
| Cash from Investing | -206.33M | -140.69M | -1.48B | -1.2B | -1B | -781.89M | -118.49M | -261.76M | -164.72M | -63.11M | -66.12M | -74.13M | -90.59M | -30.7M | -102.92M | -274.14M | -49.82M | -109.67M | -138.3M | 0 |
| Capital Expenditures | -150.77M | -179.47M | -369.1M | -1.11B | -1.25B | -498.5M | -118.29M | -286.13M | -143.06M | -67.84M | -67.48M | -81.36M | -77.03M | -32.51M | -105.66M | -252.7M | -57.66M | -121.29M | -138.89M | 0 |
| CapEx % of Revenue | 26.51% | 26.97% | 35.87% | 48.13% | 27.14% | 29.69% | 17.51% | 81.75% | 47.44% | 19.23% | 29.45% | 44.7% | 42.19% | 29.82% | 121.65% | 98.78% | 23.76% | 109.08% | 246.4% | - |
| Acquisitions | 0 | 0 | 0 | 0 | -776K | 0 | 0 | 515.4K | 444K | 0 | 0 | 5.11M | 0 | -15K | 2.66M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1K | 0 | -1.1B | -72.15M | -4.28M | -9.76M | -195K | 1.46M | 617K | 4.79M | 1.94M | 2.12M | -13.56M | 1.82M | 80.44K | -21.43M | 7.84M | 11.62M | 589.36K | 0 |
| Cash from Financing | -8.64M | -850K | -47.38M | -795.4M | 1.47B | 736.23M | -95.47M | 180.51M | 86.71M | -37.35M | -30.28M | 15.24M | 44.27M | 48.83M | 27.14M | 112.78M | 45.56M | 190.5M | 38.93M | 0 |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -200.87M | -124.14M | 182.37M | -3.82M | -30.85M | 2.38M | 16.42M | -10.44M | 48.69M | 27.64M | 112.78M | -33.56M | 94.07M | 17.42M | 0 |
| Equity Issued (Net) | 0 | 0 | -11.52M | -491.74M | -123.93M | 0 | 0 | 792.86K | 113.54M | 0 | 0 | 28.68M | 58M | 0 | -500.72K | 0 | 81.28M | 54.9M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -12.66M | -522.13M | -124.93M | 0 | 0 | 0 | 0 | 0 | 0 | -1.35M | 0 | 0 | -500.72K | 0 | 0 | -100K | 0 | 0 |
| Other Financing | -8.64M | -850K | -35.86M | -303.66M | 1.6B | 937.1M | 28.67M | -2.66M | -23.01M | -6.5M | -32.66M | -29.86M | -3.29M | 134.49K | 0 | 0 | -2.16M | 41.53M | 21.51M | 0 |
| Net Change in Cash | -232.51M | -58.06M | -2.01B | -472.39M | 2.8B | 605.56M | 3.11M | 20.42M | 22.45M | 44.69M | 1.5M | 7.42M | -763K | 1.15M | -86.02M | -110.94M | 122.22M | 78.11M | 3.3M | 0 |
| Free Cash Flow | -203.37M | -123.34M | -794.65M | 429.2M | 1.22B | 130.73M | 91.41M | -176.74M | -47.51M | 74.87M | 31.2M | -14.94M | -31.41M | -49.03M | -115.97M | -207.85M | 67.96M | -124.02M | -36.24M | 0 |
| FCF Margin % | -35.75% | -18.54% | -77.22% | 18.6% | 26.4% | 7.79% | 13.53% | -50.5% | -15.75% | 21.22% | 13.62% | -8.21% | -17.2% | -44.98% | -133.51% | -81.24% | 28% | -111.53% | -64.29% | - |
| FCF Growth % | 65.8% | 84.48% | -285.15% | -64.72% | 830.48% | 43.01% | 151.72% | -271.99% | -163.46% | 140% | 308.82% | 52.44% | 35.94% | 57.72% | 44.21% | -405.82% | 154.8% | -242.26% | - | - |
| FCF per Share | -3.01 | -1.83 | -12.01 | 5.73 | 15.74 | 1.70 | 1.22 | -2.53 | -0.73 | 1.37 | 0.59 | -0.29 | -0.74 | -1.42 | -3.30 | -29.57 | 12.07 | -29.77 | -6.98 | - |
| FCF Conversion (FCF/Net Income) | 1.09x | -0.33x | 1.26x | 3.76x | 1.36x | 0.85x | 1.62x | 3.48x | 2.51x | 1.54x | 2.27x | 5.13x | 2.74x | 0.23x | 0.09x | 1.35x | 1.83x | -0.09x | 4.77x | - |
| Interest Paid | 0 | 0 | 0 | 4.72M | 7.93M | 21.16M | 24.7M | 0 | 10.79M | 16.31M | 12.35M | 13.28M | 0 | 0 | 15.56M | 10.99M | 5.24M | 3.73M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 289.53M | 350.58M | 108.1M | 12.81M | 0 | 19.45M | 9.53M | 3M | 2.73M | 0 | 0 | 8.05M | 18.86M | 625.13K | 1.82M | 0 | 0 |
Polysilicon price collapse
As reported in recent financial statements, DQ's operating cash flow to net income ratio reached 1.67 in 2026Q1, illustrating a significant divergence where cash outflows are outpacing accounting losses, suggesting that the company's earnings quality is currently compromised by the ongoing industry-wide polysilicon price depression.
The persistent gap between net income and operating cash flow suggests that non-cash charges and working capital volatility are masking the true extent of the cash burn. Investors should monitor whether this disconnect reflects aggressive inventory management or an inability to convert sales into liquid assets during this cyclical trough.
Based on the company's latest quarterly filings, the free cash flow trajectory has remained consistently negative, culminating in a -$176.2 million outflow in 2026Q1, which highlights the difficulty of maintaining positive cash generation while average selling prices for polysilicon remain below the total cost of production.
The inability to generate positive free cash flow despite the company's low-cost production profile indicates that the current market environment is forcing a structural cash drain. This trend may imply that the company is effectively subsidizing its own operations through its existing cash reserves to maintain market share.
According to recent SEC filings, DQ experienced a substantial working capital outflow of $185.9 million in 2026Q1, a development that underscores the operational strain of managing inventory and receivables in a market characterized by rapidly declining commodity prices and weakening demand from downstream wafer manufacturers.
The significant swings in working capital suggest that the company is struggling to optimize its cash conversion cycle as inventory builds up in an oversupplied market. This volatility warrants further investigation into whether the company is forced to offer extended payment terms to maintain its customer base.
As indicated by the provided financial data, DQ's capital expenditure to revenue ratio surged to 107.4% in 2026Q1, reflecting a period where the company continues to invest heavily in its manufacturing infrastructure despite the severe contraction in top-line revenue and the prevailing industry-wide supply glut.
This high level of capital intensity suggests that the company is either completing legacy expansion projects or is committed to maintaining its technological edge in N-type polysilicon production. Such spending appears to be a significant drag on liquidity that may limit the company's flexibility if the downturn persists.
Based on reported figures, DQ has shifted from aggressive capital deployment, such as the $522.1 million in buybacks seen in 2023Q4, to a defensive posture where its $980 million cash pile is now primarily utilized to fund ongoing operational deficits and necessary maintenance capital expenditures.
The cessation of share repurchases suggests that management is prioritizing liquidity preservation over shareholder returns in the face of negative margins. Investors should monitor whether this cash runway is sufficient to bridge the gap until a potential industry consolidation improves the pricing environment.
Quick answers to the most common questions about buying DQ stock.
Daqo New Energy Corp. (DQ) generated $56.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Daqo New Energy Corp. (DQ) reported negative free cash flow of $123.3M in 2025, indicating capital requirements exceeded cash from operations.
Daqo New Energy Corp. (DQ) spent $179.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.