The IPO window that many feared would remain shut indefinitely has not only reopened—it's been blown off its hinges. The 2025 initial public offering market delivered its strongest performance since before the pandemic, and the momentum heading into 2026 suggests even bigger things ahead.

2025: The Year IPOs Came Back

The numbers tell a story of remarkable recovery. As of mid-December, 342 companies had gone public in the United States, representing a 57% increase from 2024. More impressively, aggregate proceeds exceeded $75 billion—an 80% jump from the prior year and the best showing since 2021's frothy peak.

The technology sector led the charge, with at least 23 U.S.-based companies listing above $1 billion in valuation—compared to just nine in 2024. Total valuations at IPO prices for these billion-dollar-plus listings reached $125 billion, more than doubling year-over-year.

Standout Performers

Several high-profile debuts captured investor attention:

  • Medline: The medical supply giant delivered the year's largest IPO, raising $6.26 billion and seeing shares surge 41% on debut to a market cap exceeding $54 billion.
  • CoreWeave: The AI infrastructure company emerged as 2025's best-performing IPO, gaining over 60% from its listing price as investors bet on the insatiable demand for AI computing capacity.
  • Figma: The design software company's public market debut validated its $20 billion valuation after the collapsed Adobe acquisition.
  • Chime: The digital banking pioneer proved that fintech still has public market appeal despite sector skepticism.
  • Klarna: The buy-now-pay-later leader's IPO marked a milestone for the embattled BNPL industry.

Why the Market Turned

The IPO revival didn't happen by accident. Several converging factors created favorable conditions:

Rate cuts provided relief. The Federal Reserve's 175 basis points of rate cuts since September 2024 reduced the cost of capital and made growth stocks more attractive relative to bonds. Lower rates particularly benefit IPO candidates, whose valuations depend heavily on discounting future cash flows.

Investors regained risk appetite. With the S&P 500 up over 17% for the year and repeatedly hitting record highs, portfolio managers had both the gains and the confidence to allocate to new issues.

The backlog demanded release. Private equity and venture capital funds had accumulated years of portfolio companies waiting for exits. The pressure to return capital to limited partners eventually overcame market timing concerns.

"It is a fairly conducive macroeconomic environment. A profitable company—particularly one that either is an AI play or has a good story of how AI will be a tailwind for their business—are good candidates for a 2026 IPO."

— Investment Banking Analyst

The 2026 Pipeline: Potential Blockbusters

If 2025 was the comeback year, 2026 could be the blockbuster year. Several companies long rumored to be IPO candidates may finally take the plunge:

SpaceX

Elon Musk's space exploration company has achieved a private valuation reportedly exceeding $350 billion, making it the most valuable private company in history. A SpaceX IPO would likely be the largest ever for a technology company. While Musk has historically resisted public markets, pressure from employees holding stock options and investors seeking liquidity continues to build.

OpenAI

The ChatGPT creator has transformed from a nonprofit research lab into an AI juggernaut with revenue reportedly approaching $10 billion annually. The company's recent restructuring to a for-profit model removes a key obstacle to public ownership. An OpenAI IPO would be among the most anticipated technology offerings ever.

Anthropic

OpenAI's rival, backed heavily by Amazon and Google, represents another potential AI blockbuster. With the AI race intensifying, Anthropic may need public market capital to compete for talent and computing resources.

Kraken

The cryptocurrency exchange would join Coinbase in the public markets, providing investors another way to gain exposure to digital asset infrastructure.

Risks to Watch

Despite the optimism, several factors could derail the IPO momentum:

  • Tariff uncertainty: President Trump's trade policies created significant volatility in spring 2025, and further escalation could spook investors.
  • Rate trajectory: If the Fed pauses or reverses rate cuts due to persistent inflation, growth stock valuations—and IPO appetite—could suffer.
  • Geopolitical risks: Ongoing tensions with China and the Ukraine conflict add uncertainty that could trigger risk-off sentiment.
  • Valuation concerns: Some 2025 IPOs traded down from their offering prices, suggesting investors may be growing more discriminating.

What This Means for Investors

For individual investors, the revived IPO market presents both opportunities and pitfalls:

Be selective. Not all IPOs are created equal. Focus on companies with clear paths to profitability, sustainable competitive advantages, and reasonable valuations relative to public market comparables.

Consider waiting. The IPO "pop" often reverses in subsequent months as lockup expirations flood the market with insider shares. Patience can be rewarded.

Look beyond the hype. The biggest names generate the most excitement but not necessarily the best returns. Some of 2025's best-performing IPOs were companies you've probably never heard of.

The IPO market's revival is a positive signal for overall market health and economic confidence. Whether 2026 delivers the anticipated blockbusters or not, the pipeline of private companies waiting to go public ensures this asset class will remain a focal point for investors in the year ahead.