The “buy now, pay later” company Klarna is once again signaling that it plans to go public. Several other larger companies have filed paperwork to start marketing their initial public offerings as soon as this week, according to Bloomberg.

For context, the last couple of years have not been great for IPOs. Unlike the boom in initial public offerings around 2021, investors have been setting a higher bar for companies that want to go public, according to Emily Zheng, a senior research analyst at PitchBook.

“Companies really need to show either a path to profitability or actually strong business fundamentals,” she said. Meaning, your company should actually make money or have a plan to make money — and not all startups are in that boat.

President Donald Trump’s sudden, across-the-board tariff announcement this spring didn’t do any favors for potential IPOs either. Investors got even more cautious, said Santosh Rao, head of research at Manhattan Venture Partners.

“The fear was that they will hold back and IPOs may not be well received,” he said.

But now, companies are gradually renewing their interest in offering shares on public markets, because investors are feeling pretty good, Rao added.

Stocks rebounded after sinking in April, and they’ve been rising steadily ever since, “which has lended to kind of a broader risk appetite,” said Avery Marquez with Renaissance Capital, “which is very important for the IPO market. We're seeing renewed interest in growth stocks.”

And that could rise even more if the Fed cuts rates later this month.