Navigating the uncertainty—and expected rebound—of the IPO market

The IPO market is facing a significant bottleneck and delayed timelines, creating uncertainty for companies planning to go public. However, an expected surge of IPO activity is making preparation and proactive strategies essential for companies to be ready to act when the market shifts. 

Key takeaways 

• SEC delays have created a backlog of IPO filings, but once resolved, the market will likely experience a rapid influx of IPOs.

• The urgency of market opens will strain internal finance teams, making flawless execution and readiness critical in avoiding costly errors or delays. 

• Companies that leverage this waiting period to streamline operations and prepare for IPO readiness will better position themselves to act swiftly when the market accelerates. 

The IPO market is at a critical turning point. Between a surge of confidential filings and recent operational delays, an unprecedented bottleneck has formed at the SEC. As a result, the standard 30-day review period for companies planning to go public has been extended, leaving many organizations in a state of uncertainty. When these delays eventually ease, the market is expected to experience a surge of activity.

Understanding the conditions of the IPO backlog

The confidential filing process allows companies to submit their S-1 registration statements to the SEC for private review. This gives businesses the flexibility to navigate the complex IPO process without extensive public scrutiny. Typically, the SEC provides initial feedback within 30 days, setting a predictable cadence for companies on their path to going public. 

However, recent disruptions have created uncertainty around IPO timelines, forcing finance leaders to revise their strategic plans. With a backlog of companies ready to move, the market may experience a rapid shift. The number of IPOs grew significantly last year, jumping from 225 in 2024 to 347 in 2025, and this pent-up demand suggests an even more active period ahead once reviews are resumed.

The anticipated post-backlog rush

When the backlog clears, expect a flood of IPOs as companies rush to capitalize on favorable market windows. This will create an environment where aggressive timelines become common, where the pressure to move quickly could severely strain internal finance teams and increase the risk of costly errors and oversights. 

This urgency places immense pressure on CFOs and controllers who are already managing complex financial operations. The flurry of activity, especially if the early IPOs of 2026 are successful, will only intensify the need for flawless execution. Companies that are unprepared will find themselves at a disadvantage, struggling to keep pace while competitors move quickly to gain an edge. 

A proactive approach through uncertainty

Even with unpredictable timelines, the most strategic approach is to maintain momentum. Highspring is currently supporting a client through this period of backlog where, despite external delays, the company is continuing to move forward with its IPO readiness preparations.

This approach helps ensure that when the IPO market resumes activity, they’ll be able to act immediately to leverage this window of opportunity. To adequately capitalize on post-backlog opportunities, preparation cannot be put on hold—even when external timelines are in flux.

What this means for companies looking to go public

With the year-end close now behind us, the focus must shift immediately to Q1 and the year ahead. For companies in the IPO pipeline, the first quarter is not just about routine reporting—it is a crucial period for strategic preparation. Balancing the demands of a quarterly close with the intensive requirements of IPO readiness can quickly overwhelm even the most capable finance teams. 

Given the prompt, immediate timelines on the horizon, companies’ finance teams will be unable to afford distractions with operational priorities. This is where strategic outsourcing becomes a powerful advantage. The IPO backlog will not last forever, and when it breaks, the race to close will be on. The companies that succeed will be the ones that use this time to prepare, streamline operations, and position themselves for a timely and effective launch.

Position your organization for success

Highspring can support your transaction advisory and IPO readiness needs. We handle your close so your team can focus on strategic IPO initiatives. By partnering with Highspring to outsource key financial processes, you free up essential bandwidth, reduce operational risk, and ensure your organization is ready to move with speed and confidence when the market accelerates.