Oura is reportedly targeting a $16 billion valuation in its IPO

Oura is preparing to take the smart ring business public.

The company is reportedly targeting a valuation of around $16 billion in its initial public offering, following rapid growth in sales of its health-tracking rings.

Oura generated approximately $1.2 billion in revenue during the first nine months of 2026, representing year-over-year growth of about 74%.

The company's business combines hardware sales with a paid membership that provides deeper access to sleep, recovery and health data.

That subscription layer has helped Oura position itself as more than a consumer electronics company, although hardware still accounts for most of its revenue.

According to Reuters Breakingviews, subscriptions represent roughly 20% of Oura's revenue. More than 94% of buyers initially activate a membership, while approximately 85% remain subscribed after one year.

Oura has also had to absorb significant hardware costs. Warranty expenses linked to issues such as battery defects reached $84 million in 2025.

The IPO will therefore test how investors value a company that sits between wearable hardware, subscription software and health data.

Oura helped make smart rings a mainstream wearable category, but competition is increasing as major technology companies expand their own health platforms.

A $16 billion valuation would be a striking milestone for a product category that was still relatively niche only a few years ago.