The 2025 US IPO Market Recap

The US IPO market roared back to life in 2025, delivering the strongest year for new listings since 2021. With 347 companies going public and over $75 billion in total proceeds, the market demonstrated renewed appetite—particularly businesses building in artificial intelligence, crypto infrastructure, and digital health.

But the year's performance revealed dispersion between winners and losers. Venture capital-backed IPOs surged an average of 450% post-debut, while private equity-backed offerings returned a modest 18%. 

The Big IPO Winners of 2025

Several 2025 IPOs delivered exceptional returns, validating investor enthusiasm for AI infrastructure, crypto, and specialized market sectors. These standouts created meaningful wealth for early shareholders who held through and beyond the IPO.

TOP PERFORMING 2025 IPOs (Return from IPO Price to Jan 2026)

Circle Internet Group (CRCL)

The stablecoin issuer behind USDC delivered the most spectacular debut of 2025. Priced at $31 in June, Circle opened at $69—more than double its IPO price—and rocketed as high as $263 within weeks. Though it has since pulled back to approximately $73-76, investors who bought at the IPO still hold gains of roughly 140%. Circle's success validated the crypto infrastructure thesis, demonstrating that regulated, profitable crypto companies could command premium valuations.

CoreWeave (CRWV)

The Nvidia-backed AI cloud provider debuted in March at $40 and quickly became the poster child for AI infrastructure investing. With a $55.6 billion contract backlog from clients including Meta and OpenAI, CoreWeave addressed the market's insatiable demand for GPU compute capacity. By January 2026, shares traded around $105—a 163% gain. The company's market cap exceeds $52 billion, making it the largest tech IPO since 2021.

Healthcare's Breakout Stars: Hinge Health & Omada

After years of digital health IPO drought, Hinge Health and Omada Health broke through successfully. Hinge priced at $32 in May, opened 23% higher at $39.25, and demonstrated that profitable, scaled digital health companies could attract public market interest. Omada followed in June, pricing at $19 and closing its first day up 21% at $23. Both companies emphasized strong fundamentals—Hinge was already profitable with 80%+ gross margins, while Omada showed rapidly narrowing losses and 57% revenue growth.

Medline

Medline's December IPO—the largest of the year at $6.26 billion—proved that private equity-backed industrial companies could also capture investor imagination. Priced at $29, shares surged 41% on day one to $41, pushing the medical supplies giant's market cap above $50 billion. Blackstone, Carlyle, and Hellman & Friedman, who acquired the company in 2021 for $34 billion, saw their investment validated.

The IPO Losers of 2025

Several high-profile offerings saw their stocks decline significantly from IPO prices, illustrating the risks of going public in challenging sectors or with weaker fundamentals.

UNDERPERFORMING 2025 IPOs (Return from IPO Price to Jan 2026)

Klarna (KLAR)

Perhaps the most closely watched fintech IPO of 2025, Klarna's September debut initially appeared successful: priced at $40, shares opened at $52 and closed up 15% at approximately $46. But the buy-now-pay-later pioneer has since suffered a painful decline, with shares trading around $25-28 in late January 2026—down 30-37% from the IPO price. The company faces class action lawsuits alleging disclosure issues. For shareholders who didn't sell at the IPO, the decline represents a significant loss.

Figma (FIG)

Figma's July IPO generated extraordinary first-day excitement: priced at $33, the design software company opened at $85 and closed at $115.50— 250% gain that pushed its market cap to roughly $67 billion. After its first earnings report, shares plunged nearly 20%, and by late January 2026, Figma traded around $30-37—below its IPO price and approximately 75% off its August peak of $143. 

StubHub (STUB)

The ticket marketplace's September IPO illustrated the challenges facing consumer-facing companies. Priced at $23.50, StubHub dropped 6.4% on day one—closing at $22—and continued sliding to fall 21% from the IPO price within three days. 

SailPoint (SAIL):

When Thoma Bravo brought SailPoint back to public markets in February (having taken it private in 2022 for $6.9 billion), expectations were high for a strong debut. Instead, the identity governance software company closed its first day below the $23 IPO price. Market observers noted the offering did little to signal that tech IPOs were "hot again," and the muted reception contrasted sharply with ServiceTitan's successful December 2024 listing.

Performance by Sector

Sector selection proved to be the single most important factor in 2025 IPO performance. The disparity between winners and losers was driven largely by which industries captured investor imagination and capital.

AVERAGE IPO RETURNS BY SECTOR (H1 2025)

Source: S&P Global Market Intelligence analysis of H1 2025 IPO data

Technology & AI Infrastructure dominated with $13.6 billion in market value and 246% average returns by mid-year. The sector benefited from AI enthusiasm, strong earnings from leading companies, and clear monetization pathways. Circle's 485% first-half surge drove much of the application software subsector's outperformance.

Healthcare delivered solid, 22% returns. Digital health companies like Hinge and Omada succeeded, but the biotech sector remained "challenged" with investors demanding strong clinical data and clear regulatory pathways.

Fintech presented a mixed picture. Circle, Chime, and eToro posted gains, while Klarna struggled. The sector's recovery from 2022-2023 doldrums continued, with analysts noting that "the reemergence of the strong companies" created selective opportunities.

Energy and Materials were the only sectors to post negative average returns, with energy down 33% and materials down 21%. Commodity price volatility and supply chain concerns weighed on these offerings.

Major 2025 IPOs: Complete Performance Summary

Venture Capital Firm Performance in 2025

The 2025 IPO wave created significant liquidity events for venture capital firms, ending a multi-year exit drought. 

KEY VC FIRMS AND THEIR 2025 IPO EXITS

VC-backed IPOs dramatically outperformed PE-backed offerings. Venture-backed companies averaged 450% post-IPO returns versus just 18-22% for PE-backed deals. VC-backed companies like Circle and CoreWeave operated in high-growth AI and crypto sectors, while PE-backed companies like Medline and SailPoint were larger, more mature businesses with different risk/return profiles.

CB Insights data shows that Smart Money VC portfolios backed 77% of new AI unicorns in 2025 YTD, with Sequoia, Andreessen Horowitz, and General Catalyst among the most active syndicators. The concentration of AI investments in top-tier VC portfolios explains much of their outperformance, as AI-related companies commanded premium valuations and strong aftermarket performance.

Conclusion

Median IPO valuations came in just 25% above peak private valuations — a sharp contrast to the 226% premiums observed in 2021.

The data also reveals a clear sector divide. AI, crypto, and cybersecurity listings posted stronger performance both at and after IPO. CoreWeave and Circle, for example, saw sustained investor demand tied to these themes. By contrast, consumer, fintech, and smaller-cap listings told a different story. Klarna, Figma, and StubHub each experienced notable post-IPO declines, even in cases where first-day trading was strong.

Looking ahead to 2026, analysts expect continued momentum, with a robust pipeline that includes potential blockbusters like Databricks, Stripe, and SpaceX. But the through-line from 2025 is clear: sector, size, and sponsor quality were far more predictive of post-IPO outcomes than broad market enthusiasm alone.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Stock prices and market conditions change rapidly; data presented reflects publicly available information as of late January 2026. Past performance is not indicative of future results. Investors should consult qualified financial advisors before making investment decisions.

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✍️ Written by Zachary and Alex