Oura, the smart ring maker, is seeking a $16 billion valuation for its upcoming IPO, a significant increase from its prior $11 billion valuation in September 2025. This target valuation implies a revenue multiple of approximately 11-12x based on its trailing $1.4 billion in revenue, which financial analysts are comparing to software company valuations rather than typical consumer electronics multiples. The company reported $1.21 billion in revenue for the first nine months of fiscal 2026, a 74% increase year-over-year, and its first sustained period of GAAP profitability with $60.8 million in net income.
Despite strong revenue growth, including membership revenue more than doubling to $241 million, concerns persist about Oura's long-term sustainability. The company's valuation case heavily relies on its subscription model and a vast biometric dataset, but an active class-action lawsuit questions the accuracy of its biometric data, particularly sleep-stage estimates. Oura claims research-grade accuracy of around 96% for sleep and ovulation tracking, though these figures are from internal studies. The company sold 3.6 million rings in the trailing 12 months and has 5 million paid members with an 85% retention rate.
The market for smart wearables is becoming increasingly competitive, with new entrants like Samsung's Galaxy Ring and Google's new Fitbit, along with existing rivals such as Apple and Whoop. Oura currently dominates the smart ring market with over 80% share, but a "hit-driven" hardware category poses risks. A single unsuccessful product cycle, similar to those experienced by Fitbit or Peloton, could significantly impact its valuation. Underwriters like Goldman Sachs and Morgan Stanley are testing investor appetite for a hardware company with subscription economics at a software-like multiple, especially as larger AI-focused IPOs are also in the pipeline.
The company is incorporated in the United States and based in San Francisco, with its IPO aiming to raise up to $3 billion. Hardware sales accounted for 80% of Oura's revenue during the first nine months of fiscal 2026, with the remaining 20% from its $6-per-month Oura Membership, which boasts an over 80% renewal rate. Despite its profitability, the company also reported a net loss attributable to common stockholders of $924.3 million for the nine months ended June 30, 2026, up from $182.8 million in the prior year.
