Oura sells millions of rings a year. Investors will now get a chance to bet on its next growth
In the twelve months through the end of June, Oura sold 3.6 million rings. In the three quarters through June 30, revenue rose 74% to $1,214.5 million, and net profit jumped from $1.6 million to $60.8 million. The company, whose ring was known mainly to a narrow circle of sleep-data enthusiasts just a few years ago, is heading to Nasdaq under the ticker $OURA.
Key points
Oura sold 3.6 million rings over the last twelve months, yet it covers only 2% of global wearable electronics shipments. A third of new customers buy it as their very first device, and another third wear it alongside another brand's watch.
Subscription has a gross margin of 89%, while the ring itself has roughly 46%. The share of membership in revenue nevertheless declined for two years, and the mechanism triggered by each new ring generation is to blame.
One faulty battery cut gross margin from 65% to 52%, and Oura holds a reserve of $132.3 million for warranty claims. A bug in the app costs one night of work; a hardware fault costs shipping both ways and a free replacement.
The app currently offers a blood analysis with fifty biomarkers, data from a glucose sensor, and paid consultations with a physician in 43 U.S. states. From the beginning of 2027, Oura is expected to participate in the ten-year U.S. Medicare program.
The prospectus has no price or number of shares offered filled in, yet talk mentions a valuation above $16 billion. With revenue of $1.425 billion over the last twelve months, that would be a multiple the market pays to software companies, not electronics makers.
But the ring may not be the most valuable thing Oura gains with each new customer. The Ring 5 starts at $399, yet over 94% of ring activations convert to a paid membership at $5.99 per month. The company has 5 million paying members, double from a year ago, and on their data it builds an AI advisor, metabolic features, lab panels, health records, and, from June, also a transition to a licensed physician directly in the app.
Membership has a gross margin of 89%, yet hardware still accounts for 80% of revenue. Moreover, as of September 18, the prospectus does not include the number of shares offered or the price range, so what investors will pay per share remains unknown. An investor in the IPO is not buying a stake in a maker of popular electronics. They are buying a bet that the ring will be the gateway to a much larger health business.
Even after millions of rings sold, Oura is a marginal player in wearables
In the twelve months through June 30, according to IDC data referenced in the prospectus, roughly 212 million wearable devices were shipped worldwide. Oura, with its 3.6 million rings, covered about 2% of that. In the smart ring category, it is the clear leader, so that number measures not its weakness but how small a slice of the market the entire category still occupies. Sales pace is not slowing: in the first nine months of fiscal 2026 it sold 3.1 million rings versus 1.8 million in the same period a year earlier, and for all of fiscal 2025 it sold 2.3 million.
More interesting than market share is where customers come from. In a survey of new members conducted in April through June with 2,972 respondents, 33% cited Oura as their very first wearable device and 29% replaced another device with it. Another 37% wear the ring alongside a watch or band from another brand. So Oura does not have to beat Apple Watch or Garmin in every battle; a large share of customers pays for both.
There is also geographic room. Outside the United States, less than 20% of hardware revenue was generated in the first nine months of fiscal 2026, so international expansion is just getting started. The sales network is already in place, the ring has reached 56 countries and about 8,400 brick-and-mortar stores, so it is more about how much marketing building demand in each new country will require. The home market is not exhausted either: aided brand awareness in the target group in the U.S. rose from about 15% at the start of fiscal 2024 to roughly 38% this spring. But the company is buying that awareness growth. Sales and marketing expenses rose in nine months from $140.3 million to $257.9 million, up 84%, faster than revenue itself.
The youngest is the repeat-purchase track. The share of rings sold to existing customers rose from 5% in fiscal 2024 to 9% a year later and to 11% in the last nine months. For a product with a one-year warranty and a new generation roughly every year and a half, this is only the beginning of the replacement cycle, not a stable revenue source.
The smart ring category is still small, outside the U.S. market Oura has barely started, and it is only beginning to earn from returning customers. Hardware has room to grow even after millions of units sold per year.