In 2025, the U.S. IPO market has been the strongest with respect to the number of issuances and aggregate proceeds since 2021. The number of IPOs as of December 18th was 342, representing an increase of 57% compared to the prior year,[1] and aggregate proceeds have exceeded $75 billion, representing an increase of 80% from the same period last year.[2]
The strength of the market has been broad based, with technology, media, telecommunications, healthcare, financial services, and energy sectors all fairing particularly well. Of course, this market was strong despite headwinds from tariffs in the first half of the year and the federal government shutdown in the latter half of the year.
Building on 2025, IPO activity in 2026 is expected to strengthen, driven by several significant factors:
- favorable macroeconomic conditions, including easing inflation;
- a substantial IPO backlog created, in part, through the shutdown of the federal government in late 2025;
- private equity and venture capital funds holding older vintage portfolio companies whose exits are overdue;
- the expectation that the Federal Reserve’s continued measured rate cutting will increase both investor appetite and issuer willingness to enter the market;
- foreign issuers continuing to favor the U.S. market’s higher valuations, more robust investor pool, and heightened profile; and
- the SEC Chairman’s commitment to “make IPOs great again.”[3]
With these tailwinds, several potential blockbuster IPOs are expected in 2026, including Elon Musk’s SpaceX, the AI powerhouses OpenAI and Anthropic, and the cryptocurrency exchange Kraken.
As an initial step to exploring an IPO, potential issuers should consult with experienced legal counsel and their financial advisers. Aside from setting expectations in terms of time and costs, these advisers can help an issuer prepare for an IPO by aligning governance practices and financial reporting to public company standards so that the issuer can move quickly and efficiently when it decides to go public.
[1] All 2025 IPOs, StockAnalysis.com, https://stockanalysis.com/ipos/2025/ (last visited December 18, 2025).
[2] Anirban Sen, Nasdaq sees bigger year ahead for listings on billion-dollar-plus IPOs. Reuters, https://www.reuters.com/business/finance/nasdaq-sees-bigger-year-ahead-listings-billion-dollar-plus-ipos-2025-12-18/ (December 18, 2025).
[3] Paul Atkins, Revitalizing America’s Markets at 250, https://www.sec.gov/newsroom/speeches-statements/atkins-120225-revitalizing-americas-markets-250 (December 2, 2025).
