Oura, Inc. plans to sell 50.0 million shares at an expected price of $40.00 to $44.00 per share and list on the Nasdaq Global Select Market under the ticker OURA. At the $42.00 midpoint, the offering would raise approximately $2.10 billion and value the company at approximately $13.48 billion. Goldman Sachs, Morgan Stanley and J.P. Morgan are leading the offering.
There is a lot to like about Oura. The company has built one of the most recognizable brands in wearable health technology, revenue is growing quickly, and millions of people are not only buying its rings but paying for an ongoing membership. This is exactly the kind of company that should attract attention from both institutional and retail investors.
But a popular product does not automatically make an attractive IPO. The price still matters, the structure of the offering matters, and investors need to understand what kind of business they are actually buying.
For Oura, we think there are three numbers that help tell that story: $13.48 billion, 20% and 73%.
The first number is $13.48 billion, which is Oura’s approximate market value at the $42.00 midpoint.
Oura generated $1.21 billion in revenue during the nine months ended June 30, 2026, up 74% from $697.6 million during the same period last year. On a trailing 12-month basis, the company produced approximately $1.42 billion in revenue. That means investors are being asked to value Oura at roughly 9.5 times trailing revenue at the midpoint, before accounting for additional potentially dilutive securities.
That is a serious valuation, even for a company growing this quickly.
Oura recently became profitable, generating net income of $60.8 million during the latest nine-month period compared with $1.6 million a year earlier. Its overall gross margin also improved to 55% from 51%.
Those are strong numbers, but investors are not paying $13.48 billion for the earnings Oura produces today. They are paying for what the company might become. To support this valuation, Oura will need to continue growing rapidly, maintain its position in the smart-ring market and turn its membership business into a much larger source of recurring profit.
That brings us to the second number: 20%.
Membership revenue accounted for approximately 20% of Oura’s total revenue during the nine months ended June 30. Hardware generated $974.0 million, while memberships contributed $240.5 million.
The membership business is important because it produced an 89% gross margin during the period. That is a very different business from manufacturing and selling physical rings.
Oura had 5.0 million paid members as of June 30, twice the 2.5 million it had one year earlier. Approximately 94% of ring activations have historically converted into paid memberships, and the company reported weighted-average 12-month member retention of approximately 85%.
People also appear to use the product. Members wore their rings for a median of approximately 23 hours per day and opened the Oura app an average of more than 3.5 times per day during the first three quarters of fiscal 2026.
This is probably the most important part of the Oura story. The company does not want to be viewed as another consumer-hardware manufacturer that needs to introduce a new device every few years to keep customers coming back. It wants to be viewed as a health platform with recurring, high-margin subscription revenue.
The question is whether membership revenue can become a much larger percentage of the overall business.
Right now, approximately 80% of revenue still comes from hardware. Membership growth is also tied closely to the number of rings the company sells. If ring sales slow, new memberships could slow with them.
If Oura can continue growing paid memberships, retain those members and develop additional ways to make money from its health platform, the current valuation becomes easier to understand. If the business remains mostly dependent on selling more rings, investors may eventually question whether it deserves a software-like valuation.
The third number is 73%, and this one may surprise some investors.
Of the 50.0 million shares in the base offering, Oura is selling only 13.5 million. Existing shareholders are selling the other 36.5 million. That means approximately 73% of the shares being offered are coming from existing holders rather than the company.
The underwriters also have an option to purchase another 7.5 million shares, and all of those shares would come from selling stockholders.
At the $42.00 midpoint, Oura’s portion of the offering would generate approximately $567 million in gross proceeds. Existing shareholders would sell approximately $1.53 billion of stock, even before the underwriters exercise their option.
There is another important part of the offering that could easily get lost in the prospectus. Oura expects to receive approximately $532.6 million in net proceeds, but approximately $526.4 million of that amount is expected to be used to cover tax-withholding obligations connected to the settlement of restricted stock units.
That would leave only about $6.2 million of the estimated net proceeds for general corporate purposes such as technology development, working capital, operating expenses and capital expenditures.
This does not necessarily make the IPO a bad deal. Employees and early investors have been involved with Oura for years, and it is reasonable that some of them want liquidity. But investors should understand what the offering is. This is much more of a liquidity event for existing shareholders and employees than a large capital raise designed to fund the company’s future growth.
There are also signs of institutional interest. Eli Lilly has indicated that it may purchase up to $100 million of shares, while funds affiliated with Dragoneer Investment Group have indicated interest in purchasing as much as $300 million. Together, that could represent approximately 19% of the base offering at the midpoint.
Those indications are not binding, so either investor could purchase more shares, fewer shares or no shares at all. Still, their involvement could help support demand and reduce the number of shares available to other investors.
This is what makes Oura an interesting IPO. The company has real growth, a highly recognizable product and a membership business with attractive economics. It also has a valuation that leaves little room for mistakes and an offering structured primarily around existing shareholders selling stock.
That is why we keep coming back to the same three numbers: $13.48 billion, 20% and 73%.
The $13.48 billion valuation tells us how much future growth investors are already being asked to pay for. The 20% membership contribution tells us how far Oura has come—and how far it still has to go—in becoming a recurring-revenue health platform. The 73% secondary component tells us who is really benefiting financially from the IPO.
The next number to watch will be the final IPO price.
Pricing above the $40.00-to-$44.00 range would be a clear sign of strong demand, but it would also push the valuation even higher. Pricing at the midpoint or lower could give investors more room, while a reduction in the range or offering size would suggest that institutions are pushing back on either the valuation or the amount of insider selling.
Oura has already proven that people want its rings. This IPO will help determine how much investors are willing to pay for everything the company believes it can build around them.
