More consumer companies are staying private for longer, avoiding the IPO road

• The number of public companies has dropped from nearly 8,000 thirty years ago to under 4,000 today, driven by increased access to private capital and the rise of secondary markets acting as a 'pressure release valve'
• Jersey Mike's and Reformation both went public on Thursday with uneventful IPOs - Reformation closed flat while Jersey Mike's missed its IPO pricing and closed down nearly 6%
• Experts say regulatory changes like ending mandatory quarterly earnings reports and reducing compliance burdens would be needed to make public markets attractive again, as the 'operational burden of being public' currently outweighs benefits for many companies

Summary: Consumer Companies Extending Private Status, Avoiding IPOs

Key Trend: More consumer companies are remaining private longer, reversing the IPO boom of 2021 when 743 companies went public, raising nearly $500 billion and adding over $1 trillion in market capitalization.

Recent Activity: Only a handful of consumer/retail companies have pursued IPOs in 2026. Jersey Mike's and Reformation went public Thursday with lackluster results—Reformation closed flat while Jersey Mike's fell nearly 6% below its IPO price.

Main Drivers:

• Secondary markets provide liquidity without going public, acting as a "pressure release valve"
• Venture capital boom and megafunds offering abundant private capital
• Family office interest from ultra-wealthy seeking private investment opportunities
• Number of public companies declined from 8,000 thirty years ago to under 4,000 today

Regulatory Factors: Public company burdens include quarterly earnings pressure, reporting compliance costs, litigation risks, and management time dilution. President Trump has proposed ending mandatory quarterly reports; the SEC explored allowing semi-annual reporting instead to reduce "rigidity."

Expert Perspectives:

• Mike Dinsdale (Powerlaw CEO): Access to private capital has eliminated the "rush to go public"
• Jason Yeh (Patron VC): Public market volatility and stagnant consumer stock performance discourage IPOs
• Sunaina Sinha Haldea (Raymond James): Regulatory changes needed to make public markets competitive

Market Implications: Experts anticipate companies that delayed IPOs may go public within 12-18 months if macroeconomic conditions improve. However, fundamental regulatory reform addressing the "operational burden" of public status is necessary to restore IPO market attractiveness to 2021 levels.