In 2025, over 200 companies had their initial public offerings (IPOs) on U.S. exchanges. However, less than a quarter of these were able to beat the S&P 500’s 18% return (with dividends reinvested).
Below, we’ll break down three 2025 IPOs that really stood out. They attracted significant attention from investors and handily beat the market. Implied upside and downside data are of the Jan. 2 close.
KRMN Delivers More Than Triple-Bagger Performance in 2025
First up is defense name Karman (NYSE: KRMN). The stock had its IPO on Feb. 13, 2025, at a price of $22 per share. Ultimately, shares ended the year at just above $73, notching an over 230% return. During every quarter in 2025, Karman’s revenue growth accelerated. Its 42% growth last quarter was double the 21% growth rate achieved in Q1.
The company is a supplier of mission-critical components to nearly every prime defense contractor in the United States’ space and defense market.
These firms rely on Karman’s technology to support their ambitions in high-growth areas like hypersonic missiles.
Karman’s proprietary products give the firm considerable pricing power, and an impressive gross margin of 41% last quarter—in the top five among mid-cap or larger U.S. aerospace and defense stocks–demonstrates this.
Looking forward, the consensus price target on Karman comes in at $80.43, implying around 5% upside in shares. Although modest, the figure is impressive, as it indicates that analysts continue to forecast upside in a stock that has already risen significantly.
Stablecoin Stock CRCL Rises 150% in Seven Months
Next up is Circle Internet Group (NYSE: CRCL). The company IPO’d on June 5, 2025, at a price of $31. Closing the year just above $79, shares gained by over 150%. Circle is a stablecoin issuer (stablecoin is a type of cryptocurrency that has its value pegged to a stable asset, like the U.S. dollar).
Stablecoins provide blockchain benefits without the volatility typically seen in many cryptocurrencies. This includes making payments faster and at a lower cost compared to traditional payment methods.
Essentially all of Circle’s 2025 return came on its first day of trading, when shares closed over $83, rising 168%.
The market likely believed that the bankers underwriting Circle’s IPO significantly undervalued its stablecoin opportunity. Last quarter, Circle experienced rapid growth, with total revenue rising 66%.
The circulation of the company’s USD Coin increased by 108% to $73.7 billion.
Broadly speaking, analysts continue to be bullish on Circle. The consensus price target of $141.18 suggests that shares could rise 69%. However, targets updated after the company’s Nov. 12 earnings report temper expectations greatly. They average to around $101, implying 21% upside. These updated targets also range very widely from as low as $60 to as high as $190.
Analysts Eye +40% Upside in HNGE After Strong 2025
Finally, Hinge Health (NYSE: HNGE) put up a very impressive performance in 2025. The stock went public on May 22 at a price of $32. Closing 2025 near $46.50, the stock gained by approximately 45%.
Hinge’s goal is to reduce healthcare costs related to physical therapy, which it accomplishes through offerings like its mobile phone app and FDA-cleared wearable device.
These products provide patients with physical therapy exercises they can do at home, customized to their needs.
Thus, patients can spend less time and money working with human physical therapists.
Data from 2024 states that Hinge’s offerings reduced the hours required with human care teams by 95% for its patients, compared to traditional physical therapy.
Last quarter, the firm saw very strong revenue growth of 53%. The company’s free cash flow margin also nearly doubled to 53%, compared to 27% a year ago. Hinge had 2,560 organizational clients, which included both corporations and governments.
The consensus price target of just under $60 implies 32% upside in shares. Targets updated after the company’s Nov. 4 earnings report are even more bullish, averaging to $67, and implying 47% upside.
Watchlist Addition: Hinge Health
Overall, 2025 was kind to KRMN, CRCL, and HNGE, with Hinge Health being particularly interesting. Revenue is growing fast for Hinge, and its free cash flow increased by 200% last quarter.
Hinge’s product directly addresses one of the biggest pain points in the United States for consumers—high healthcare costs. It wouldn’t be surprising to see this stock perform well in 2026. Investors will want to watch the healthcare name to see if it can maintain its excellent growth and margins.
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