Equity public markets remained fairly active during Q3 2025 according to a report from PitchBook which also noted that Fintech has, for the most part, encountered a more uneven stride as investors seemingly rotated “toward AI megacaps and sectors with clearer earnings visibility.” Insurtech and proptech led outperformance, posting median gains of “26.9% and 20.7%, respectively, on easing rate pressure and growing confidence in AI-driven efficiency.”
The PitchBook report also mentioned that neobanks as well as neobrokers have reportedly squeezed out a 6.9% median gain, meanwhile, the majority of payments, lending, and legacy fintech companies are now said to be facing the weight of increasing infrastructure and compliance costs.
According to PitchBook report, the broader rally has kept the IPO window open, bringing Klarna and Figure to market. Weak aftermarket performance, however, shows that investors “remain highly selective.” At the same time, 2025 growth “forecasts are cooling.”
High-growth fintech estimates have declined now to the high teens, while value names are trending in the low single digits as “optimism gives way to discipline.”
Separately, a regional bank consolidation wave is “reshaping the financial landscape, with $24.7 billion in disclosed M&A deal value this quarter.”
PitchBook‘s Q3 2025 Fintech & Payments Public Comp Sheet and Valuation Guide tracks metrics for publicly traded firms that include “stock performance, changes in valuation, historical valuations, revenue growth, EBITDA growth, and EBITDA margins.” It is reportedly constructed using the PitchBook Excel plugin.
Some of the key takeaways from the research report are as follows:
- New additions from IPOs: Following their Q3 market debuts, Klarna and Figure have been added to their comp set. IPO momentum appears to be building, with Wealthfront and Lendbuzz expected to list following their filings late in the quarter. However, while the window has reopened, aftermarket performance has remained weak. In Q3, eToro fell by 34.9%, Chime by 32.8%, Circle by 25.5%, Klarna by 15%, and Figure by 8.2%.
- Insurtech and proptech outperform amid market rally: Equity markets continued their climb in Q3, aided by improving rate expectations, solid earnings, and broad AI productivity tailwinds.
- Fintech performance was mixed overall versus S&P 500 (up 7.4%) and Nasdaq (up 11.1%), but insurtech and proptech led the group with median gains of 26.9% and 20.7%, respectively. Both sectors benefited from easing rate pressure, improving unit economics, and investor conviction around AI-driven underwriting and operational efficiencies.
- Performance mixed among value and growth names: Neobanks and neobrokers delivered a median return of 6.9% in Q3, supported by strength in Robinhood, SoFi, and Nubank, but offset by weaker stock performance from Chime, Dave, and Coinbase.
- Broader growth and value fintech cohorts lagged the market as capital rotated toward AI megacaps and pure-play AI leaders, while investors favored sectors exhibiting clearer operating leverage and near-term earnings visibility. Despite stable topline trends, many payments, lending, and legacy fintech operators saw margin pressure intensify amid higher technology and infrastructure investments tied to AI adoption, as well as rising compliance costs and ongoing regulatory shifts.