U.S. initial public offerings delivered a 5.2% average return in 2025, lagging behind the S&P 500’s 13.8% gain, as investor caution dampened momentum in high-profile tech and crypto-related listings. The year’s largest IPO, Medline Inc., raised $6.26 billion and opened 6.9% above its offering price.
- U.S. IPOs averaged a 5.2% return in 2025, trailing the S&P 500’s 13.8% gain
- Medline Inc. raised $6.26 billion in the largest 2025 IPO, opening 6.9% above its $75 offering price
- Only 116 U.S. companies completed IPOs in 2025, a 22% decline from 2024
- AI and crypto-related IPOs made up just 14% of total deals in 2025, down from 37% in 2023
- Average IPO size fell to $418 million in 2025, reflecting reduced investor appetite for high-risk ventures
- Investors increasingly favor profitable, cash-generative firms over speculative tech startups
The U.S. IPO market failed to match broader equity gains in 2025, with new listings averaging a 5.2% return post-debut, compared to the S&P 500’s 13.8% rise. This divergence reflects heightened market skepticism toward speculative sectors, particularly cryptocurrency and artificial intelligence ventures, which saw fewer successful listings than in prior years. A shift in investor appetite toward established, cash-generative firms helped explain the underperformance of newer entrants, especially in tech-heavy sectors. Medline Inc. stood out as the year’s most significant listing, raising $6.26 billion in its December 17 public debut. The medical supply company’s shares opened 6.9% above the $75 offering price, signaling strong demand despite a cautious market backdrop. The company’s performance contrasted sharply with earlier AI-focused startups that either delayed or scaled back their IPO plans amid regulatory scrutiny and pricing volatility. Data shows that only 116 U.S. companies went public in 2025, down 22% from the previous year, with average deal size declining to $418 million. High-profile AI and blockchain firms accounted for just 14% of total IPO volume, a sharp drop from the 37% share recorded in 2023. This retreat from speculative sectors has contributed to a wider gap between new listings and the overall market’s performance. Market participants anticipate a rebound in 2026, particularly if macroeconomic conditions stabilize and inflation pressures ease. For now, institutional investors remain selective, favoring firms with clear revenue models and path to profitability—traits more commonly found in healthcare, industrials, and consumer staples than in emerging tech.