Smart ring manufacturer Oura has filed for an IPO with the U.S. Securities and Exchange Commission. The company disclosed that revenue for the most recent nine months ended June 30 increased to $1.2 billion, up from $697 million during the same period last year. The filing also identifies physiological data and AI model capabilities as key focus areas for future expansion.
Revenue and membership continue to grow.
The company disclosed that Oura sold 3.6 million smart rings over the past year and currently has approximately 5 million paying members. Paying members are users who subscribe to its health services to access more comprehensive health metrics.
The document shows that Oura's 12-month weighted average member retention rate is approximately 85%, meaning that about 85% of subscribers who joined in a given month remain paying customers one year later.
The IPO valuation target has been leaked in advance.
Oura was founded in 2013 and originally headquartered in Finland, with current offices in San Francisco and other locations. Media reports last month indicated that Oura plans to raise approximately $3 billion through this initial public offering.
Bloomberg previously reported that Oura was seeking a valuation of approximately $16 billion. In October last year, the company’s valuation was around $11 billion. Oura secretly filed for an IPO in May this year and is now publicly disclosing additional operational data.
AI and health data are key areas of expansion.
The company stated in its filing that its future goals extend beyond traditional wearable device use cases for fitness and activity tracking, and it aims to expand collaborations with health insurance plans, employers, and healthcare providers.
Oura states that the company has accumulated one of the largest and highest-quality long-term physiological datasets in the consumer health space, covering more than 50 health and wellness metrics and totaling nearly 42 billion hours of physiological data. This data is being used to enhance the accuracy, personalization, and predictive capabilities of its AI and machine learning models.
Sleep monitoring capabilities face legal disputes
However, as it moves toward going public, Oura faces legal risks. The company recently encountered a proposed class-action lawsuit alleging that it misled users regarding the accuracy of its sleep tracking.
The complaint alleges that the Oura ring cannot directly detect the physiological signals required to determine sleep stages, but instead relies on AI-generated estimates that lack sufficient accuracy. Oura has denied the allegations and stated it will respond to the lawsuit through appropriate legal procedures.