The latest initial public offering (IPO) in the active lifestyle market is finally making it to the starting gate after Ōura Health Oy (Ōura), the Finnish maker of smart rings that track health, fitness and sleep, is seeking to raise up to $3 billion. The rumors of an IPO effort have been swirling since earlier this year. The rumors became a reality yesterday, September 3 when the company filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of shares of its common stock.

The number of shares to be offered in Oura Inc. and the price range for the proposed offering have not yet been set so the actual raise and valuation have yet to be determined. The company’s latest funding round in fall 2025 was concluded with a valuation of $11 billion and recent reporting had the expected valuation for an IPO at $16 billion.

Goldman Sachs & Co. LLC, Morgan Stanley, J.P. Morgan, Allen & Company LLC, and Jefferies will act as joint lead book-running managers for the proposed offering. BofA Securities, Barclays, and Wells Fargo Securities will act as joint book-running managers. Citizens Capital Markets, KeyBanc Capital Markets, and Guggenheim Securities will act as book-running managers. Canaccord Genuity, Needham & Company, Raymond James, Rothschild & Co, Truist Securities, and William Blair will act as additional book-running managers. Robinhood Securities will act as a co-manager for the proposed offering.

In the S-1 filing, Oura Inc. broke out financials and product details for the nine-month year-to-date (YTD) period ended June 30, 2026 (fiscal 2026 YTD period), compared to the comparative prior-year nine-month period (fiscal 2025 YTD period), as well as full year results for the fiscal years ended October 31, 2025 (fiscal 2025) and October 31, 2024 (fiscal 2024), with triple-digit year-over-year growth indicated for each period. In a review of quarterly results, only one quarter revealed a year-over-year decline.

The company stated that its revenue growth “significantly accelerated” as it launched new generations of rings and features, expanded distribution with an omni-channel strategy, and increased the accessibility of its product offering.

“These developments have increased our scale, growth and profitability,” the company stated in the filed S-1.

In explaining the company’s business model, Oura wrote:
“We operate an integrated hardware-plus-software subscription business model designed to efficiently acquire members, deepen engagement, and expand member lifetime value. Our hardware, Oura Ring, anchors our platform and drives adoption of our membership, which delivers personalized health insights and recommendations through the Oura App. The initial ring purchase establishes the member relationship, and approximately 94 percent of activations convert to a paid membership. As a result, growth in Paid Members has largely scaled with Rings Sold, reinforcing the efficiency of our model. We are driving strong member retention; our Weighted-Average 12-Month Paid Member Retention was approximately 85 percent as of June 30, 2026. Together, our hardware and subscription offering create an integrated business model that combines attractive upfront unit economics with high margin recurring revenue and allows us to invest in product innovation that strengthens our competitive advantage.”

Financial Overview

Revenue Summary
Oura Inc. reported that total revenue grew 74 percent year-over-year (y/y) to $1.21 billion in the fiscal 2026 YTD period (fiscal 2026 YTD period), compared to $697.6 million in the fiscal 2025 YTD period. For the most recent full year results, revenue grew 123 percent y/y to $907.9 million in fiscal 2025 from $406.8 million in fiscal 2024.

Hardware Revenue
Hardware revenue grew 65 percent y/y from $588.7 million (84 percent of total revenue) in the fiscal 2025 YTD period to $974.0 million (80 percent of total revenue) for the fiscal 2026 YTD period. For the last full fiscal year reported, Hardware revenue grew 126 percent to $749.4 million (83 percent of total revenue) for fiscal 2025 from $331.2 million (81 percent of total revenue) in fiscal 2024.

Hardware growth was said to be primarily driven by a 75 percent increase in Rings Sold rising year-over-year, from 1.8 million units in the fiscal 2025 YTD period to 3.1 million units in the fiscal 2026 YTD period. Growth was reportedly driven by product innovation, increased brand awareness and channel expansion.

In the fiscal 2026 YTD period, rings generated an average revenue per unit (RPU) of $311. The company said it recovers customer acquisition costs at the time of ring sale, contributing to attractive upfront unit economics.

The fiscal 2026 YTD period included approximately one month of Oura Ring 5 sales, which launched in June 2026.

Oura Rings are reportedly offered across multiple generations, models, and pricing tiers, with RPU varying by generation and finish.

“To date, we have released five generations of rings and multiple variations across colors and finishes,” Ōura said. “Rings are sold through our direct-to-consumer channel and wholesale channel, which includes retail and enterprise partners. Our channel mix allows us to balance unit-level economics, market reach, and brand visibility across geographies.

Membership Revenue
Membership revenue grew 121 percent y/y to $240.5 million (20 percent of total revenue) for the fiscal 2026 YTD period from $108.8 million (16 percent of total revenue) in the fiscal 2025 YTD period. For the last full fiscal year reported, Membership revenue grew 110 percent to $158.5 million (17 percent of total revenue) in the fiscal 2025, compared to $75.5 million (19 percent of total revenue) for fiscal 2024.

Membership growth was said to be primarily driven by a 100 percent increase in Paid Members y/y, which increased from 2.5 million in the fiscal 2025 period to 5.0 million in the fiscal 2026 period. Total Paid Members largely scales with Rings Sold, reinforcing the efficiency of our integrated model. Further, our improving Weighted-Average 12-Month Paid Member Retention also supports our growing membership revenue.

Oura wrote:
Members may elect monthly or annual billing plans priced at $5.99 per month or $69.99 per year in the United States. in the fiscal 2026 YTD period, approximately 63 percent of new members began their membership with an annual plan, a trend which we have seen increase over time as we have released incremental features and functionality. Membership revenue is characterized by attractive economics, with membership gross margins equaling 89 percent in the fiscal 2026 YTD period, reflecting the scalability of our platform and recurring revenue model. We believe our subscription-based membership model, supported by strong member retention, enhances the lifetime value of each member and increases the predictability of our revenue across a growing base of members.”

Profitability & Expenses
Cost of revenue in the fiscal 2026 YTD period increased by $210.8 million, or 62 percent, compared to the fiscal 2025 YTD period. This increase was said to be primarily driven by a 75 percent increase in Rings Sold, which resulted in higher direct manufacturing and product costs of $78.8 million, increased freight, tariffs, and hardware overhead of $64.1 million, and higher warranty costs of $28.6 million.

Despite the growth in overall cost of revenue, the company reported that gross margin expanded from 51 percent in the fiscal 2025 YTD period to 55 percent during the fiscal 2026 YTD period, primarily due to lower warranty rates relative to earlier hardware cohorts and reductions in per-unit manufacturing costs. For the latest full-year results, Oura saw gross margins of 52 percent in fiscal 2025, down from gross margins of 65 percent in fiscal 2024.

Sales and Marketing expenses in the fiscal 2026 YTD period increased by $117.6 million, or 84 percent, compared to the fiscal 2025 YTD period. The increase was said to be primarily driven by a $72.8 million increase in paid media and other advertising costs to drive increased awareness and support the Oura Ring 5 launch; a $16.3 million increase in payment processing fees and sales commissions, as well as a $9.5 million increase in member experience support costs, driven by increased sales volume; and a $9.0 million increase in personnel-related costs, reflecting increased headcount.

Research and Development (R&D) expenses in the fiscal 2026 YTD period increased by $105.7 million, or 105 percent, compared to in the fiscal 2025 YTD period. This increase was said to be primarily driven by a $52.1 million increase in personnel-related costs due to increased headcount, primarily related to investments in hardware and supply chain talent as the company accelerated its product innovation cycle; a $23.7 million increase in third party professional fees supporting product development, research programs, and international product localization; and an increase of $12.2 million in materials spend related to new product development.

General and Administrative (G&A) expenses in the fiscal 2026 YTD period increased by $71.9 million, or 132 percent, compared to in the fiscal 2025 YTD period. The increase was said to be primarily attributable to a $48.3 million increase in third-party professional fees, predominantly related to intellectual property litigation, other advisory services, public company readiness initiatives, and an increase of $13.6 million in personnel-related expenses driven by increased headcount.

Loss on extinguishment of debt in the fiscal 2026 YTD period was $0.5 million. The loss was reportedly attributable to the write-off of unamortized deferred financing costs in connection with a June 2026 amendment to our Revolving Credit Facility. The loss during in the fiscal 2025 YTD period was attributable to the full repayment of a debt arrangement in May 2025.

Other income (expense), net in the fiscal 2026 YTD period improved by $6.1 million, or 136 percent, year-over-year. The improvement was said to be primarily attributable to $10.9 million of higher interest income on invested cash balances, a $6.3 million favorable change in foreign exchange gains and losses, and a $5.1 million unrealized gain from changes in fair value of our forward equity instrument prior to its physical settlement during the period. These increases were partially offset by a $16.8 million transfer tax accrual recorded in connection with our Reorganization.

Provision for income taxes in the fiscal 2026 YTD period decreased by $25.6 million, or 73 percent, compared to the fiscal 2025 YTD period. This decrease was primarily attributable to a valuation allowance established in the U.S. in fiscal 2025, recorded in a period of lower pre-tax book income, partially offset by the continued benefit of U.S. federal and state research and development tax credits.

Net income was $60.8 million for in the fiscal 2026 YTD period, compared to $1.6 million for the fiscal 2025 YTD period. For full-year results, net income was $0.01 million in fiscal 2025, compared to net income of $3.6 million in fiscal 2024.

Adjusted EBITDA grew from $83.5 million, or 9 percent of sales, in the fiscal 2025 YTD period to $106.7 million, or 12 percent of sales, in the fiscal 2026 YTD period. For the latest full-year results, Adjusted EBITDA grew from $37.0 million, or 9 percent of sales, in fiscal 2024 to $74.9 million, or 8 percent of sales, in fiscal 2025.

Quarterly Summary

Oura said total revenue increased in each of the quarters presented, with the exception of the quarter ended September 30, 2025 and the quarter ended March 31, 2026. The company said Hardware revenue reportedly fluctuated primarily due to the timing of product launches and holiday seasonality, with demand moderating following launch and holiday peaks observed within consumer retail, and increasing in periods benefiting from new product introductions, including the June 2026 launch of Oura Ring 5, the October 2025 launch of Oura Ring 4 Ceramic, and the October 2024 launch of Oura Ring 4.

Membership revenue grew consistently, driven by growth in Rings Sold and the Paid Member base as well as strong retention of Paid Members.

Operating Metrics

 

Rings Sold is influenced by the timing of new product and variant launches, including the launch of Oura Ring 5 in June 2026 during the third quarter of fiscal 2026, the launch of Oura Ring 4 Ceramic in October 2025 during the first quarter of fiscal 2026, and the launch of Oura Ring 4 in October 2024 during the first quarter of fiscal 2025, as well as by seasonal demand concentrated in the three months ended December 31 due to Black Friday/Cyber Monday promotional activity. We expect Rings Sold to continue to be influenced by the timing of future product launches and seasonal demand during the holiday period.

Paid Members, as a cumulative measure of active subscriptions, has grown more consistently than Rings Sold across the periods presented and has not declined in any period, reflecting strong retention of our existing member base. Growth in Paid Members is generally correlated with, but lags, growth in Rings Sold, as hardware purchases convert to membership sign-ups over time, and has also benefited from a growing mix of annual memberships, which have higher retention. The company said it expects Paid Members to continue to grow as the installed base of ring owners expands, influenced by membership pricing, promotional activity, and retention.

Image, data and tables courtesy Ōura Health Oy