Coming into this year, there was a lot of optimism that this would be a strong year for initial public offerings (IPOs), and that optimism has been met — IPOs are back!
And, as we’ll show, both the Nasdaq IPO Pulses suggest this strength will continue into 2026. The caveat being that the U.S. IPO market will be on hold until the government shutdown ends since the U.S. Securities and Exchange Commission needs to review and approve IPO filings. Historically, government shutdowns have lasted eight days on average, with the longest lasting 35 days.
U.S. IPO pop returns 2nd strongest since at least 2014
With less than three months left to go this year, 2025 is already the strongest year for IPOs since (at least) 2021 on a number of metrics:
- Most IPOs (277, including 175 operating companies)
- Most capital raised ($50 billion)
- Most big IPOs, with $500+ million cap raises (22)
- Strong day one performance
On a cap raise-weighted basis, U.S. operating companies have seen an average day one pop of about 34% (chart below). That’s double the average for 2023 and 2024, and the second-best year since at least 2014.
Out of 175 operating company IPOs, 72 gained over 10%, 18 rose at least 50%, and eight popped more than 125%!
Chart 1: Operating company IPOs gaining +34% on average on day one in 2025
Importantly, we see that companies are performing well beyond day one, too. As a group, 2025 IPOs are up 27% this year (chart below, green line) from their IPO – nearly double the S&P 500’s 15% gain year-to-date. And we see that bigger IPOs, measured by IPO capitalization (circle size), have tended to have better returns this year.
Chart 2: Bigger companies have seen some of the best returns this year
In Europe, Nasdaq Stockholm has raised 6x the capital of last year
And it’s not just U.S. markets that are having a good year.
Nasdaq Stockholm has raised nearly 6x the capital this year (€6 billion, so far) than last (€1.1 billion), despite having fewer new listings this year (16, so far) than last year (23). That’s by far the most capital raised in Europe and includes the biggest IPO in all of Europe since 2022.
Stockholm has also seen pops! On average, IPO pops are up more than 19% – like the U.S., that’s second best since at least 2014 – and two IPOs saw more than 30% pops.
Chart 3: Stockholm IPOs gaining +19% on average on day one in 2025
IPO Pulses indicate upturns in IPO activity continue into 2026
After the end of the third quarter, we are also able to update our forward-looking IPO Pulses. They suggest that the strength in IPO activity looks set to continue into early 2026.
Nasdaq U.S. Pulse
The U.S. IPO Pulse rose for the fifth straight month and reached an eight-month high (blue line below).
The revival in the IPO Pulse since April coincides with the rebound in U.S. IPO activity from a modest dip in the second quarter to a 3¾-year high in the third quarter (64). With the IPO Pulse rising further in September, IPO activity is likely to stay in an upturn.
Chart 4: Nasdaq IPO Pulse has entered a new upturn, rising to an eight-month high
Nasdaq Stockholm Pulse
It’s a similar story in Stockholm, with the Nasdaq Stockholm IPO Pulse also rising for five straight months, reaching a seven-month high in September (chart below, blue line).
And, like the U.S., Stockholm IPO activity increased from the second to the third quarter. This is despite the fact that, since 2015, the third quarter averages the fewest IPOs (due to summer holidays), and the second quarter averages the most. So, with the Stockholm IPO Pulse in a clear uptrend, Stockholm IPO activity is likely to stay in an upturn into early next year.
Chart 5: New upturn in Stockholm IPO Pulse signals continued upturn in IPO activity into 2026
Strong end to the year likely for U.S. and Stockholm
This year has already been strong year for IPOs in the U.S. and Stockholm, with investor appetite returning.
With both of our IPO Pulses at new highs, the data suggests IPO activity is likely to finish the year strong.
