Data shows that the performance of U.S. initial public offerings (IPOs) in 2025 was lackluster. Due to increased stock market volatility and stricter scrutiny of themes such as cryptocurrency and artificial intelligence, several high-profile IPOs that year were adversely affected. Data shows that, excluding closed-end funds and blank-check companies, the stock prices of companies that went public in 2025 rose by a weighted average of 13.9%, underperforming the S&P 500’s 16% gain. Mike Bellin, head of U.S. IPOs at PwC, stated: “ '2025 was clearly a mixed bag for the IPO market. While the market has reopened, it has been very selective.' He noted that investors have begun prioritizing quality over momentum, and that the bar for going public—especially for early-stage tech and consumer companies—has risen significantly. Bellin concluded: “The biggest takeaway is that we have firmly returned to a fundamentals-driven market. Investors have become more discerning, and companies must have a clearer rationale and a stronger operational direction when entering the market.”