Oura Inc. (OURA) plans to offer 50.0 million shares on the Nasdaq Global Select Market at $40 to $44 per share, a $2.1 billion offering at the midpoint. Goldman Sachs, Morgan Stanley, J.P. Morgan, Allen & Company, and Jefferies lead the underwriting group. The company’s growth makes this one of the more closely watched consumer IPOs, but it also invites a familiar question: Is Oura becoming a lasting part of people’s lives, or is the smart ring having its moment?
It is a fair question to ask of any device that arrives with a wave of consumer excitement. Fitbit once helped make wearable fitness tracking mainstream. Its annual revenue climbed from $745 million in 2014 to $2.2 billion in 2016, then declined in each of the next three years. Peloton’s revenue more than doubled to $4.0 billion in fiscal 2021 as its connected fitness business surged. Both companies built real products and large audiences. Their histories also show how difficult it can be to turn a burst of hardware demand into sustained growth.
Oura has a case that its ring is more than a one-time purchase. The company reported 5.0 million paid members as of June 30, 2026, up from 2.5 million a year earlier. Its weighted average 12-month paid member retention was approximately 85%, and it says more than 94% of ring activations have historically converted to paid membership after the initial trial. Those figures suggest many customers continue to find value in the app after the novelty of buying the ring wears off.
Oura also reports frequent use. Its ratio of daily to monthly active users was approximately 65% as of June 30, and paid members opened the app more than 3.5 times a day on average during the first three quarters of fiscal 2026. Sleep, recovery and other health readings can give people a reason to check in regularly. The question for investors is whether that behavior remains as strong across a much larger membership base and as early adopters give way to more casual customers.
For now, the ring itself still drives most of the business. Hardware produced approximately 80% of revenue in the nine months ended June 30, 2026; membership generated the remaining 20%. Oura sold 3.1 million rings during that period, up 75% from 1.8 million a year earlier. If new ring sales eventually slow, can subscription revenue and purchases by existing customers carry more of the growth?
There are early signs of a replacement and upgrade cycle, though it remains a small part of sales. Repeat purchases accounted for 11% of rings sold in the first nine months of fiscal 2026, up from 9% in fiscal 2025 and 5% in fiscal 2024. Oura expects new generations of its ring to bring existing members back. Investors will have to judge whether those upgrades become a dependable source of demand or whether customers decide the ring they already own is good enough.
The Fitbit comparison is useful, but it has limits. Fitbit said software revenue was immaterial in 2019, leaving it heavily dependent on device sales as its revenue fell. Oura already has a sizable paid membership business alongside its hardware. Peloton offers a different lesson: a subscription base can be substantial and still shrink. In its reported third quarter of fiscal 2026, Peloton had 2.66 million paid connected fitness subscriptions, down 7.6% from a year earlier. Neither company tells us Oura’s future; each gives investors a question to keep in view.
Oura enters the public market with considerable momentum. Revenue rose 74% to $1.21 billion in the nine months ended June 30, 2026, and net income reached $60.8 million, compared with $1.6 million in the prior-year period. The prospectus shows a company growing quickly, earning a profit and retaining many of the people who sign up. What it cannot yet show is how the business performs after smart rings become less new—and after the pace of first-time buyers inevitably changes.
That is the question at the heart of this IPO. Over the coming years, will members keep wearing the ring, opening the app, paying for insights and buying the next generation? Or will Oura discover, as other consumer hardware companies have, that winning attention is easier than keeping it? The first few public earnings reports may begin to tell investors which way the story is moving.