Existing Oura shareholders collect $1.61bn of the ring maker's $2.2bn listing

Roughly 94% of people who buy an Oura ring take the paid plan, and about 85% are still paying a year later ^[17]. Multiply those and about eight in ten buyers are subscribers twelve months after checkout ^[3]. Membership revenue grew 121% to $240.5m over the nine months to 30 June, against 65% growth in hardware, and the membership gross margin is 89% ^[15][16].

The company keeps about 27% of what the listing raises ^[1]. Of the 50 million shares on offer, Oura is selling 13.5 million and existing stockholders 36.5 million ^[4], and the 7.5 million over-allotment shares are all theirs ^[5]. "Oura will not receive any proceeds from the sale of its common stock by the selling stockholders," the release said ^[8].

The $594m arrives on a balance sheet Oura emptied on purpose. Over the same nine months it repurchased $1.17bn of its own stock, including 13,295,528 preferred shares at $40.18 each in a February tender offer, and drew $375m on a revolving credit facility to help pay for it ^[12]. At 30 June it held $371.8m of cash against a stockholders' deficit of $1.62bn ^[14]. The top of the marketed range is $44, about 9.5% above the price the company paid its own preferred holders in February ^[4].

The buyback is also why the filing shows a $924.3m loss. The operating business made $60.8m of net income over the period, and a $985m deemed dividend to preferred holders turned that into a loss attributable to common stockholders ^[13].

Warranty is a live cost line, not a footnote. Oura booked $84.4m of warranty expense in fiscal 2025, paid $75.5m of claims in nine months, and carried a $132.3m accrual at the end of June ^[22]. Across the 3.1 million rings it sold in those nine months, the claims come to about $24 a ring ^[2], and the accrual by itself is roughly a fifth of what the company nets from the deal ^[5].

The other item in the risk section is the accuracy claim. A proposed class action in the Northern District of California challenges Oura's marketed 95% sleep staging accuracy against a clinical sleep lab, citing research on 45 patients that put overall classification at 53.18% ^[23]. Oura rejects it ^[23].

For anyone pricing this, the split that pays to keep separate is the one-off hardware sale against the annual renewal. Sixty-three per cent of members take the annual option ^[17], so each cohort re-decides once a year, and the sleep staging claim is the product promise they are re-deciding on. The updated S-1 guides to approximately 5.7 million paid members by the end of fiscal 2026, up from 5.0 million at the end of June, and credits the Oura Ring 5 that shipped in May ^[18][19]. Oura sold about 3.6 million rings in the trailing twelve months and holds around 2% of the global wearables market ^[20].