Q4 2025 delivered a set of market signals that are already shaping 2026 decision-making. Across sectors, we saw valuation sensitivity increase, capital move toward “quality-first” operators, and strategic buyers sharpen their criteria in real time.
If you’re managing portfolio performance, planning an exit, or advising clients through strategic decisions, Q4’s data is not just interesting. It’s actionable.
Houlihan Capital’s Q4 2025 Quarterly Industry Reports are now available across nine sectors, highlighting the trends we’re seeing in-market and what they mean for investors, operators, and advisors.
Q4 2025 Industry Highlights (9 Reports)
Business Services
Business services held up in Q4 2025, but performance stayed uneven as investors continued to reward tech-enabled, scalable service models while traditional providers lagged. M&A slowed to 1,478 deals (a two-year low) as buyers stayed selective, even with financing conditions improving. Access the report here.
Cannabis
Cannabis is shifting from hype to hard fundamentals in 2025, with consumers and investors both gravitating toward value brands and alternative formats like pre-rolls and beverages. A major catalyst hit late in the year as President Trump moved to fast-track federal rescheduling to Schedule III, but dealmaking stayed sluggish—Q4 saw just 7 M&A transactions, the lowest in two years. Access the report here.
Consumer Products
Consumers stayed cautious in Q4 2025, with spending shifting toward essentials, discounts, and private-label offerings as discretionary demand remained under pressure. Consumer M&A slowed sharply—deal volume fell ~22% QoQ to a two-year low—while brands leaned into AI-driven personalization and omnichannel strategies to protect margins and sustain engagement. Access the report here.
Healthcare
Healthcare outperformed in Q4 2025 as investors leaned defensive and momentum built around value-based care and precision medicine. Despite strong interest in biopharma and medtech, M&A slowed to a cycle low as providers continued to grapple with workforce pressures and rising complexity. Access the report here.
Industrials
Industrials softened in Q4 2025 as demand cooled and energy costs rose, but the sector’s long-term narrative is still being driven by reshoring, infrastructure investment, and the energy transition. Companies are accelerating AI, digital twins, and automation to boost productivity and compliance as emissions rules tighten. Meanwhile, M&A fell to a cycle low (251 deals) as buyers stayed selective and focused on strategic, efficiency-driven acquisitions. Access the report here.
Transportation & Logistics
Transportation & logistics stayed tight in Q4 2025, with soft freight demand and excess capacity keeping pressure on rates. Carriers leaned into cost control and tech-driven optimization, while M&A fell to a dataset low (125 deals) as buyers stayed selective. Access the report here.
SPACs
SPAC activity stayed alive in Q4 2025, with 46 IPOs raising $8.5B and $34.9B still sitting in trust across 186 SPACs actively searching for targets. But deal dynamics remain tough: redemptions were still extremely high (94.5% median), reinforcing that getting a de-SPAC across the finish line continues to require strong structures and real investor conviction. Access the report here.
Venture Capital
VC continued its recovery in Q4 2025, with $91.6B deployed and deal value up ~13% QoQ—though the market is still meaningfully below 2021 peak deal volume. AI dominated the landscape, capturing ~65% of annual deal value and driving the biggest rounds, reinforcing that capital is concentrating into fewer, larger “category-winner” bets. Access the report here.
Crypto Market + VC
Even with crypto down ~24% QoQ in Q4 2025, VC interest held up—crypto funding surged ~77% QoQ to ~$8.5B, signaling conviction in the category despite volatility. Across broader VC, dollars rose while deal count stayed tight, showing capital concentrating into fewer, larger, fundamentals-driven rounds. Access the report here.
Access the Full Q4 2025 Reports
Each report includes sector-specific data, market activity, and the trends we believe matter most for strategic planning and transaction execution.
Click the button below to access the reports.
