IPO Insights Q4 2025
Perspectives on the quarter’s market trends
Taking a company public can boost its profile and provide much needed capital resources. But ensuring readiness for the capital markets requires a keen understanding of the current IPO landscape—significant exits; sectors on the rise; trends in deal prices, sizes, returns; and more.
IPO Insights provides the latest information and analysis on IPO activity and performance. Prepared by professionals from KPMG Capital Markets Readiness and KPMG Private, this quarterly report is designed to help private business leaders prepare their companies to join the capital markets.
Assessing the long and the short of it
Taken on aggregate, 2025 gave the US IPO markets reason to be optimistic. IPO volumes were up 27 percent year-over-year. Proceeds raised rose 52 percent. Cancellations fell by 24 percent. Compared to 2024, it was a banner year.
Narrow your view slightly, however, and the quarterly numbers suggest a year that ended – not with a bang – but with a whimper. Following hot on the heels of an active Q3 and subdued by the shut-down of the SEC through October and part of November, the final quarter saw metrics sag. IPO volumes fell by 43 percent quarter-over-quarter with just 42 deals closed. Together, they netted a total of $12.6 billion in proceeds raised (a 19 percent drop from the previous quarter).
The biggest IPO of the quarter by value was a healthcare company whose $6.3 billion IPO accounted for roughly half of all US IPO proceeds in Q4’25—nearly matching the combined total raised by all other IPOs that quarter.
The key question for investors and private company owners is whether the coming year will follow the promising bang of earlier gains or continue with the subdued whimper seen at year-end.
Highlights of Q4’25
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No. of IPOs(a)(b) and gross proceeds (US$B)
The below data includes 20 direct listings closed during 2021-2025; 3 direct listings were reported in Q4’25
A mixed bag for everyone
In a quarter punctuated by bangs and whimpers, sector results were broadly mixed. Healthcare and life sciences saw IPO proceeds rise 733 percent quarter-over-quarter. But the sector’s IPO volume fell by 27 percent compared to the prior quarter and the sector’s average return declined by 12 percent.
Three other listings raised more than $500 million in the quarter. An electric aircraft manufacturer raised just over $1 billion. A travel and expense management company raised $923 million. And a commercial laundry equipment manufacturer captured proceeds of $826 million.
The two manufacturers helped push the Industrial Manufacturing sector’s net proceeds up by 27 percent quarter-over-quarter, even as IPO volumes dropped 23 percent (from 17 deals in Q3 to 13 in Q4). And while both blockbusters saw performance sag by the end of the quarter (both by 17 percent), average performance for new IM listings rose by nearly 31 percent.
TMT saw deal volumes cut in half compared to the previous quarter, with proceeds raised falling from $4.86 billion in Q3 to just $341 million in Q4, yet average performance rose 12 percent in the quarter. Financial services’ IPO volumes plummeted 76 percent and proceeds raised fell 70 percent; average investors were left 4 percent poorer by the end of the quarter. Consumer and retail saw IPO volumes remain even, but proceeds fell – as did share prices.
Results from the second half of 2025 really reinforce the importance of being market ready. This isn’t just about judging the timing; it’s about having the right narrative and the right data to confidently justify your listing and offer price when the time comes. Anyone planning an IPO in the next 12-18 months should be seriously focused on getting their organization ready
Shari Mager
Partner and US National Leader, Capital Markets Readiness, KPMG LLP
US traditional IPO performance in Q4’25 by sector
US IPO performance by sector - Average Q4’25 returns(a)
The titans return
Private equity certainly spotted opportunity in the IPO markets, with quarterly PE-backed IPO volume hitting its highest levels in the last five years. Over the year, PE brought 96 deals to market (up from 46 in 2024), reflecting strong deal flow and improved investor confidence.
Venture capital also boasted some big IPO wins with large AI-driven public listings, providing significant contributions to the sector. For the most part, VC’s major stock market listings aligned with administration priorities in 2025, seeking to address liquidity gaps by focusing on high-valuation sectors like AI, space, cryptocurrency, fintech and national security.
US PE exit(a)(b) volume by type (Percentage share)
Percentage share of each type of PE exit in the total number of exits
US VC exit volume by type (Percentage share)
Percentage share of each type of VC exit in the total number of exits
Future trends
Will AI smash the window open?
Rumors continue to swirl about the impending debut of some of the world’s largest AI model makers. When they do list, it is expected to be massive (recent estimates suggest some may fetch proceeds of more than $1 trillion). Pundits are increasingly concerned that their combined listings may overshoot investor’s dry powder.
Whether their listing represents good news or bad is another question entirely. Should their debuts go well, many expect them to smash open the IPO window, ushering in a new wave of listings by other tech and AI firms. If the bubble bursts post-listing, however, the damage could bring markets and investors to their knees. They will certainly be worth watching.
Outlook for 2026
While Q4 IPO activity may have been somewhat slow, we expect to see significant momentum in 2026 driven by improved investor confidence and better alignment between issuer valuations and market expectations.
Notwithstanding the potential for increased geopolitical and economic upheaval as a result of the conflict in the Middle East, economic volatility, regulatory disruption, evolving interest rates and uncertainty around the impact of tariffs on the markets, our data suggests the year should bring an increase in overall IPO volumes to market, potentially raising up to $60 billion (not counting any proceeds raised by the big AI firms).
Expect to see strong growth in key sectors including technology, fintech/crypto, healthcare and defense, particularly towards the second half of the year as investors gain confidence in the shifting macroeconomic outlook and refocus on strategic sectors.
How KPMG can help
Understanding the key trends and investor expectations is critical to preparing for an IPO. Investment narratives matter. They cut through the deluge of data and analysis and help companies sift real windows of opportunity from market noise. And the most compelling deal stories come from insights about a company’s unique mix of valuation drivers. Sector. Markets. Customers. Portfolio mix. Capital structure.
At KPMG, our professionals offer a range of services specifically designed to help privately owned companies—venture-backed or otherwise—navigate each stage of the IPO journey. We help entrepreneurial ventures simplify the complex challenges of going public, while helping ensure they meet their diverse regulatory, compliance, and reporting requirements.
Working with KPMG, you gain access to trusted advisers who share your entrepreneurial mindset. And we can help you understand and improve the factors that drive maximum deal value for your offering.
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