Sacra estimates that Oura generated $500M in revenue in 2024, up 120% YoY from $225M in 2023. This acceleration marked the second consecutive year of growth acceleration for the Finnish wearables company, which had grown 79% YoY in 2023 after nearly flat 10% growth in 2022 at $126M.

The revenue mix breaks down to approximately 80% hardware and 20% subscription revenue. Oura sold 1.3M rings in 2024, generating roughly $390M in hardware revenue, while doubling its paying subscriber base to 2M users contributing approximately $110M in subscription revenue at $6 per month.

The company's expansion into retail channels including Target and Amazon in April 2024, combined with the launch of the Oura Ring 4 in October, drove the strong hardware performance in the second half of the year.

Oura raised $200M in a Series D round in December 2024, valuing the company at $5.2B for a 10.4x revenue multiple. The round was led by Fidelity Management & Research Company with participation from Dexcom, which also made a separate $75M strategic investment to support the companies' glucose monitoring integration.

The company has raised approximately $348M in total funding since 2015. Previous investors include The Chernin Group, Elysian Park Ventures, Temasek, JAZZ Venture Partners, Eisai, and Forerunner Ventures. The strategic partnership with Dexcom represents a significant validation of Oura's expansion into metabolic health monitoring.

Oura is a titanium smart ring that continuously monitors physiological data through 18 light paths, dual temperature sensors, and motion tracking sensors, transmitting data via Bluetooth to a mobile app that provides sleep, readiness, and activity insights. The ring weighs 4 grams, lasts 6-8 days on a single charge, and comes in 6 finishes across sizes 4-15.

Users wear the ring 24/7 and receive three daily scores: Sleep (tracking sleep stages, duration, and quality), Readiness (measuring recovery and resilience), and Activity (monitoring movement and workouts).

The ring automatically detects over 40 types of activities and switches to high-frequency 250 Hz sampling during sleep for detailed sleep stage analysis. Women can enable cycle tracking features that use temperature trends to predict ovulation and menstruation windows.

The Oura app serves as the primary interface, featuring three main sections: Today for daily scores, Vitals for physiological trends including resting heart rate and heart rate variability, and My Health for long-term tracking and guided content.

Recent additions include daytime stress monitoring that detects real-time stress through heart rate variability changes, an AI advisor chatbot that answers health questions using personal data, and beta features for meal photo logging and glucose monitoring integration with Dexcom sensors.

The ring's finger placement provides significantly stronger physiological signals compared to wrist-based devices, enabling more accurate measurements and early detection capabilities like illness prediction through subtle changes in baseline metrics. This positioning advantage, combined with the comfortable titanium design and week-long battery life, has driven high user engagement with most members wearing the device continuously.

Oura operates a B2C hardware-plus-subscription model that combines one-time ring sales with recurring monthly memberships. The company sells rings directly through its website and retail partners like Target, Amazon, and Apple Stores, with hardware priced at $299-399 depending on finish. The core monetization comes from the required $6 monthly Oura Membership, which unlocks all health insights, personalized recommendations, and app features beyond basic daily scores.

This dual revenue stream creates a flywheel where hardware sales drive subscription growth, while subscription revenue funds continued product development and AI improvements that justify the ongoing fee.

The subscription model generates predictable recurring revenue with high gross margins, while hardware sales provide upfront cash flow and customer acquisition. The company has achieved profitability by balancing the lower-margin hardware business with high-margin subscription revenue.

Oura's go-to-market strategy has evolved from direct-to-consumer to omnichannel, leveraging retail partnerships to increase brand visibility and reduce customer acquisition costs.

The company also operates Oura for Business, providing rings and analytics dashboards to over 200 organizations including military units and professional sports teams, creating bulk hardware demand and enterprise subscription revenue.

The business model benefits from strong retention dynamics, as users who invest in the hardware and develop daily habits around their health data tend to maintain subscriptions long-term. The continuous data collection creates switching costs, while regular feature updates and AI improvements provide ongoing value that justifies the monthly fee.

Samsung entered the smart ring market in July 2024 with the Galaxy Ring, priced at $399 with no subscription fee and integration into the Samsung Health ecosystem.

Samsung's approach leverages their smartphone dominance and component manufacturing scale to offer lifetime insights without recurring fees, potentially resetting consumer price expectations. Apple remains a looming threat with rumored ring development and patents showing health sensor integration, though analysts don't expect a launch until 2028-2030.

RingConn, Ultrahuman, and Circular are attacking Oura's subscription model by offering comparable hardware at $199-349 with no monthly fees.

RingConn's Gen 2 provides 10-12 day battery life in a 2mm titanium design, while Ultrahuman Ring Air integrates with continuous glucose monitoring to target metabolic health. These competitors sacrifice some software sophistication and clinical validation for lower total cost of ownership, appealing to price-sensitive consumers.

Apple Watch, Fitbit, Garmin, and WHOOP continue to dominate the broader wearables market with established ecosystems and expanding health features.

WHOOP's subscription-first model at $30 monthly targets serious athletes with detailed recovery analytics, while Apple Watch's integration with iPhone and expanding health sensors creates a comprehensive platform.

These devices offer broader functionality beyond health tracking, though they require daily charging and may be less comfortable for sleep monitoring.

Oura has systematically expanded from sleep tracking into readiness, stress monitoring, and women's health, with recent moves into metabolic health through Dexcom integration and AI meal logging.

The company's roadmap includes deeper women's health features spanning fertility, pregnancy, and menopause, addressing underserved markets with specialized temperature-based insights. Heart health and healthy aging represent additional expansion opportunities, with the ring's continuous monitoring enabling early detection of cardiovascular changes.

The enterprise market through Oura for Business addresses the $60B corporate wellness opportunity, with 200+ organizations including the US military using rings for team health monitoring.

Healthcare providers represent another expansion vector, as Oura pursues FDA diagnostic clearance and clinical partnerships for remote patient monitoring. The company's clinical-grade data privacy and accuracy position it for reimbursable healthcare applications beyond consumer wellness.

Oura is prioritizing Western European markets including the UK, Germany, France, and Italy, leveraging retail partnerships and localized marketing.

The European smart ring market is projected to exceed $250M by 2027, doubling Oura's addressable base. Asia-Pacific represents a longer-term opportunity with 30%+ projected growth through 2030, though local competitors and different healthcare systems present challenges requiring localized approaches.

Platform dependence: Oura's business model relies heavily on smartphone app distribution through Apple and Google's app stores, creating vulnerability to platform policy changes, commission increases, or competitive restrictions. Any limitations on health data collection or subscription billing could significantly impact Oura's core revenue streams.

Hardware commoditization: As smart ring technology matures and manufacturing costs decline, the hardware component of Oura's business faces margin pressure from low-cost competitors offering similar sensor capabilities. The company's ability to maintain premium pricing depends on continued software differentiation and brand strength.

Subscription fatigue: Consumer resistance to subscription services is growing across categories, and Oura's requirement for ongoing payments to access health insights may face pushback as competitors offer similar features without monthly fees. Economic downturns could accelerate churn as consumers prioritize essential subscriptions over wellness tracking.