Oura’s IPO filing gives a rare look inside the subscription business behind its smart rings, including 5 million paid members and roughly 85% 12-month retention.

Oura sells a smart ring. The customer relationship doesn’t end when someone buys one.

In its IPO filing this week, Oura disclosed that historically more than 94% of ring activations convert to paid membership after the initial trial. As of June 30, the company had 5 million paid members, with weighted-average 12-month paid-member retention of approximately 85%.

Those numbers give us an unusually detailed look at how Oura has built recurring revenue around a physical product customers buy upfront.

Membership Revenue More Than Doubles

Oura generated $240.5 million in membership revenue during the nine months ended June 30, up 121% from $108.8 million a year earlier.

Membership accounted for about 20% of total company revenue during the period. Hardware generated the other 80%.

Oura reported an 89% gross margin on membership revenue during the first nine months of fiscal 2026. The company says its hardware sales are designed to offset customer acquisition costs when the ring is purchased, while membership gives Oura a recurring source of revenue from that customer.

In the U.S., Oura Membership costs $5.99 per month or $69.99 per year.

Most New Members Choose Annual

Oura said about 63% of new members began with an annual plan during the first nine months of fiscal 2026. New ring buyers receive an initial trial before paid membership begins.

Without an active membership, the ring still provides limited information, including Oura’s three daily scores. The paid membership unlocks much more of the health data and personalized insights available through the Oura app.

Historically, more than 94% of activated rings have converted to paid membership, according to the filing. Paid members also opened the app more than 3.5 times per day on average during the first three quarters of fiscal 2026, and nearly all were monthly active users.

About 85% Are Still Paid Members After 12 Months

Oura reports weighted-average 12-month paid-member retention of approximately 85% as of June 30.

Its calculation groups members based on when their paid membership began and measures how many are still paid members 12 months later. It also includes what Oura calls “winbacks,." members who canceled for at least 28 days and returned within the same 12-month period.

That gives us more useful context than the size of the membership alone. Oura began charging for membership in 2022, and paid membership grew from 1.5 million members at the end of 2024 to 5 million as of June 30, 2026.

Insider Take

Oura has built the membership into the value of the ring itself.

Customers can still use the hardware without paying for membership, but what they get is much more limited. The subscription unlocks the deeper health information and personalized insights that make the product more useful day to day.

That helps explain why more than 94% of activated rings historically move into paid membership after the trial.

But the 85% 12-month retention rate may be the more important number.

A strong conversion rate tells us customers want access to the full product experience. Retention tells us whether they still think it is worth paying for after they have lived with it for a year.

Oura also has attractive economics behind that recurring relationship. Membership gross margin was 89%, and nearly two-thirds of new members began with an annual plan during the first nine months of fiscal 2026.

The model starts with a physical product that helps offset the cost of acquiring the customer. Membership then gives Oura another way to earn revenue as that customer keeps using the ring. The filing shows why the design of the recurring offer matters: customers get substantially more value from a product they already own, and most are still paying for it 12 months later.

Sources

• Oura Inc., Form S-1 Registration Statement, filed September 3, 2026

• Oura, “Oura Membership."