The economics before the IPO

Oura filed its S-1 registration statement on September 3. Revenue rose from $406.8 million to $907.9 million in fiscal 2025. In the first nine months of fiscal 2026, it reached $1.2145 billion, compared with $697.6 million a year earlier, an increase of 74%. [1 · SEC S-1]

Gross margin improved from 51% to 55%, net income was $60.8 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $106.7 million. The initial public offering price range has not yet been disclosed, so the quality of the business model matters more at this stage than the expected market capitalization. [1 · SEC S-1]

Why the subscription works

Oura has focused on recurring daily behavior—sleep, recovery, physical readiness and stress—instead of trying to replace general-purpose smartwatches. Historically, more than 94% of activated rings have converted to paid membership after the 30-day trial. [1 · SEC S-1]

The company has 5 million paying members and weighted 12-month user retention of 85%. Users open the app at least 3.5 times a day on average, and daily active users represent close to 65% of monthly active users. This creates an ongoing cycle of data accumulation that improves personalization and raises the cost of switching to another device. [1 · SEC S-1]

Retailers extend reach while Oura keeps the customer relationship

In the nine months through June 30, 49% of device revenue came through retailers, including Amazon, Best Buy, Costco and Target[1]. Membership is activated directly with Oura, allowing it to retain the subscription economics, data and user relationship regardless of where the device was purchased. [1 · SEC S-1]

Devices generated $974 million and memberships $240.5 million. Oura is not yet a pure subscription software provider: subscriptions account for about 20% of revenue. They are, however, what turns a one-time device sale into a long-term relationship. [1 · SEC S-1]

Risks

The main risks are dependence on discretionary consumer spending; competition from Apple[2], Google[3], Samsung, Garmin and Whoop; personal data protection and healthcare regulation; the accuracy of AI conclusions; patent disputes; and concentration among manufacturers and retail partners. [1 · SEC S-1]

High membership conversion is partly built into the activation process itself. Retention after the first year therefore remains the main quality indicator, rather than the initial subscription. [1 · SEC S-1]

Sources

  1. SEC S-1 — Submitted on 3 September 2026