Yes, Oura is profitable on a net income basis. Its IPO prospectus shows net income of $60.8 million on revenue of $1.21 billion in the nine months to June 30, 2026. The $924.3 million loss in someYes, Oura is profitable on a net income basis. Its IPO prospectus shows net income of $60.8 million on revenue of $1.21 billion in the nine months to June 30, 2026. The $924.3 million loss in some

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Is Oura Profitable? Revenue, Business Model and Valuation

Author: James Mitchell

Beginner

Sep 28, 2026James Mitchell

11 min

Yes, Oura is profitable on a net income basis. Its IPO prospectus shows net income of $60.8 million on revenue of $1.21 billion in the nine months to June 30, 2026. The $924.3 million loss in some headlines is a different line: the result for common stockholders after a $985.0 million accounting charge tied to buying back early investors' preferred stock.

Key Takeaways

Profitable, but only recently: net income was $60.8 million in the nine months to June 30, 2026, after $3.6 million in fiscal 2024 and just $12,000 in fiscal 2025. The net margin is 5%.
The $924.3 million loss is not an operating loss: it comes from paying $985.0 million above book value to repurchase preferred stock, which U.S. accounting rules deduct before arriving at the result for common stockholders. Income from operations was $71.2 million.
Hardware pays the bills, membership lifts the margin: ring sales brought in $974.0 million, or 80% of revenue, and membership $240.5 million, or 20%. Membership grew 121% and carries an 89% gross margin.
Growth is fast but slowing: revenue rose 123% in fiscal 2025 and 74% in the latest nine months. Paid members reached 5.0 million, with 12-month retention of about 85%.
The IPO price is a growth bet: at $40 to $44, Oura is valued at roughly 9x to 10x trailing revenue and more than 200x trailing net income.

Is Oura Profitable?

Oura is profitable, though its profits are thin and recent. The amended S-1 shows income from operations of $71.2 million and net income of $60.8 million in the nine months to June 30, 2026, a 5% net margin. The company earned $3.6 million in fiscal 2024 and effectively broke even in fiscal 2025.

Reading the nine-month income statement from the top shows exactly where the headline loss comes from:

Revenue: $1,214.5 million.
Gross profit: $662.2 million, a 55% gross margin.
Operating expenses: $591.0 million across sales and marketing, research and development, and general and administrative costs.
Income from operations: $71.2 million.
Net income, after interest, other items and $9.3 million of income tax: $60.8 million.
Deemed dividend to preferred stockholders: minus $985.0 million.
Net loss attributable to common stockholders: $924.3 million, or $44.77 per share.

Why Does a Profitable Company Report a $924 Million Loss?

The loss comes from share buybacks, not from running the business. When a company repurchases preferred stock for more than the value carried on its books, U.S. accounting rules treat the excess as a return to the preferred holders and subtract it from net income to reach the result for common stockholders, as Deloitte's accounting guidance explains. In Oura's case, the original S-1 puts the carrying value of the repurchased preferred stock at $108.3 million and the amount paid above it at $985.0 million.

The buybacks were large. Oura spent about $1.17 billion repurchasing its own stock in the nine months to June 30, 2026, and drew $375 million on its revolving credit facility to help pay for it, The Next Web reports from the filing. Strip out the deemed dividend and the prospectus shows pro forma diluted earnings of $0.18 per share for the period.

Will Oura Stay Profitable After the IPO?

Two things will pull on the next set of GAAP results. First, Oura expects to record about $160 million of stock-based compensation when employee RSUs vest at the IPO, more than twice its trailing 12-month net income of $59.2 million. Second, operating expenses are growing faster than revenue: they roughly doubled in the nine months while revenue rose 74%.

Cash generation looks stronger than the profit line. Operating cash flow was $328.0 million in the nine months, about 5.4 times net income, which gives Oura room to keep spending on growth without new equity.

How Does Oura Make Money?

Oura makes money in two ways: it sells the Oura Ring, and it charges a membership fee for full access to the app's health insights. Hardware produced $974.0 million, or 80% of revenue, in the nine months to June 30, 2026. Membership produced $240.5 million, or 20%, but it is growing faster and carries a much higher margin.

The ring: Oura Ring 5, released on June 4, 2026, costs $399 in silver or black and $499 in premium finishes, according to Oura's launch announcement.
The membership: $5.99 per month or $69.99 per year in the U.S., needed for full use of the ring's features.
Channels: Oura sells direct to consumers, through about 8,400 retail doors and through employers, government organizations and healthcare partners. About 40% of members in the nine months arrived organically through word of mouth, the prospectus says.
Geography: less than 20% of hardware revenue came from outside the U.S. in the nine months, which leaves most of the international opportunity untouched.

The model works as a hand-off. Oura says ring sales are designed to cover the cost of acquiring a member at the point of purchase, after which the membership becomes the recurring layer. The engagement numbers support that design: 5.0 million paid members at June 30, 2026, 12-month paid member retention of about 85%, a daily-to-monthly active user ratio of about 65%, and a median wear time of roughly 23 hours a day.

A margin split you can calculate yourself: Oura does not disclose a hardware gross margin, but it can be backed out. Membership revenue of $240.5 million at the 89% gross margin TechCrunch cites from the filing produces about $214 million of gross profit. That leaves about $448 million of the $662.2 million total for hardware, or roughly 46% on $974.0 million of ring revenue. This is a MEXC Learn calculation from disclosed figures, not a number Oura reports.

How Fast Is Oura Growing?

Oura's revenue grew from $406.8 million in fiscal 2024 to $907.9 million in fiscal 2025, a 123% increase, and rose another 74% year on year to $1,214.5 million in the nine months to June 30, 2026. Paid members went from 1.3 million to 2.9 million to 5.0 million over the same stretch.

Rings sold: 1.0 million in fiscal 2024, 2.3 million in fiscal 2025 and 3.1 million in the latest nine months, against 1.8 million a year earlier.
Membership versus hardware: in the nine months, membership revenue grew 121% and hardware 65%, lifting membership from about 16% to 20% of revenue.
Guidance: Oura expects about 5.7 million paid members when fiscal 2026 ends on September 30, 2026, which would be 96% growth in a year.
Awareness: aided brand awareness among Oura's U.S. target audience rose from about 15% in early fiscal 2024 to about 38% in the third quarter of fiscal 2026, according to a YouGov study Oura commissions.

The growth rate is coming down as the base gets bigger, and Oura's risk factors say it expects that to continue. Spending is moving the other way. In the nine months, sales and marketing rose 84%, research and development 105% and general and administrative costs 132%. The operating margin slipped from 8.6% to 5.9% even as revenue climbed.

What Is Driving Oura's Margins?

Oura's gross margin fell from 65% in fiscal 2024 to 52% in fiscal 2025, then recovered to 55% in the nine months to June 30, 2026, up from 51% a year earlier. The filing ties the dip to elevated warranty costs from battery issues in some Oura Ring 4 units, and credits the recovery to lower warranty rates and lower manufacturing costs per ring.

Volume is the other force. Cost of revenue rose 62% in the nine months on a 75% increase in rings sold. That added $78.8 million of direct manufacturing and product costs, $64.1 million of freight, tariffs and hardware overhead, and $28.6 million of warranty costs, according to management's discussion in the S-1. Tariffs sit inside that second number. Trade policy is a live input to Oura's hardware margin.

Further down the income statement, adjusted EBITDA rose to $106.7 million in the nine months, but its margin fell from 12% to 9% because Oura is spending ahead of revenue on marketing and product development.

What Does Oura's IPO Valuation Assume?

At the $40 to $44 Oura IPO price range, the company's roughly 320.9 million post-IPO shares would be worth $12.8 billion to $14.1 billion. Against trailing 12-month revenue of about $1.42 billion and net income of about $59.2 million, that is roughly 9x to 10x sales and more than 200x earnings. The price is a bet on future growth and a rising membership share, not on today's profits.

The worked numbers below use the 320,945,459-share count in the amended prospectus, with trailing figures calculated from its fiscal 2025 and nine-month results:

At $40: about $12.84 billion of market value, 9.0x trailing revenue and about 217x trailing net income.
At $42, the midpoint: about $13.48 billion, 9.5x revenue and about 228x net income.
At $44: about $14.12 billion, 9.9x revenue and about 239x net income. On the fully diluted $15.62 billion Reuters calculated, the revenue multiple is about 11x.

Enterprise value lands close to market value. Oura held about $372 million of cash at June 30, 2026, and $350 million remained drawn on its revolving credit facility after a $25 million repayment in August, The Next Web reports. Cash and debt roughly cancel out.

Two sense checks help. First, the multiple falls only as fast as revenue grows: at a flat $42 share price, trailing revenue would need to double to about $2.85 billion before the valuation dropped below 5x sales. Second, the private market already moved a long way. Oura raised $200 million at a $5.2 billion valuation in December 2024 and about $900 million at roughly $11 billion in October 2025, TechCrunch reports. The top of the IPO range is about 42% above that last round on a fully diluted basis.

Kat Liu, a vice president at IPOX, told Reuters that the valuation already assumes strong growth continues and that more revenue shifts toward higher-margin recurring membership. That makes the membership line the number to track. Over the trailing 12 months it was about $290 million, around a fifth of revenue, and every quarter that share rises makes a software-style multiple easier to defend.

How Does the Market Price Oura Before It Lists?

Before the Nasdaq listing, OURAUSDT Pre-IPO Perpetual Futures on MEXC trade on Oura's expected share price, so the same arithmetic applies. Multiply the contract price by about 320.9 million shares for an implied market value: every $1 on the price is worth about $321 million. The contract is a derivative that carries no ownership, and What Is OURA Pre-IPO Futures? explains how it works and how to go long or short. For the IPO timeline, offering terms and what happens to OURAUSDT at listing, see Oura IPO 2026: Date, Price, Valuation and How to Trade OURA.

What Are the Risks in Oura's Numbers?

The main risks in Oura's financials are concentration and thin margins. Rings still produce about 80% of revenue, so warranty problems, tariffs and hardware price competition hit results directly. Profits are recent and small relative to the valuation, spending is growing faster than revenue, and the company carries debt and a stockholders' deficit after its pre-IPO buybacks.

Product concentration: the prospectus lists reliance on Oura Ring and Oura Membership for substantially all revenue, and on a limited number of contract manufacturers and suppliers, among its key risks.
Pricing pressure: the filing warns that rivals may discount hardware or offer a membership with no subscription fee. Samsung's Galaxy Ring and Ultrahuman's Ring Pro already sell without a required subscription.
Litigation in both directions: Samsung filed an ITC complaint on December 12, 2025 alleging that certain Oura products infringe four of its patents, seeking relief that could restrict imports of some Oura Ring products. Omni MedSci is separately seeking about $120 million in a Texas patent suit. Oura says both claims are without merit.
Balance sheet after the buybacks: total liabilities of $1.18 billion exceeded total assets of $1.06 billion at June 30, 2026. Even after the IPO, the pro forma balance sheet shows a stockholders' deficit of about $63 million.
A secondary-heavy offering: 36.5 million of the 50 million IPO shares come from existing holders. Of Oura's estimated $532.6 million in net proceeds, about $526.4 million goes to tax withholding on vesting employee RSUs, leaving roughly $6 million for general corporate purposes.

Oura Profitability FAQ

Why does Oura show a $924 million loss if it made money?

Because $924.3 million is the net loss attributable to common stockholders, not net income. Oura earned $60.8 million in the nine months to June 30, 2026, then deducted a $985.0 million deemed dividend created when it paid more than book value to repurchase preferred stock from early investors.

Is Oura profitable in 2026?

Yes, based on its latest filing. Oura reported net income of $60.8 million and income from operations of $71.2 million for the nine months ended June 30, 2026. Its fiscal year ends on September 30, so full fiscal 2026 results will arrive after the IPO.

How much revenue does Oura make?

Oura reported $1,214.5 million of revenue in the nine months to June 30, 2026, up 74% year on year, and about $1.42 billion over the trailing 12 months. Fiscal 2025 revenue was $907.9 million.

What percentage of Oura's revenue comes from subscriptions?

About 20%. Membership revenue was $240.5 million of $1,214.5 million in the nine months to June 30, 2026, up from about 16% a year earlier. Ring sales made up the rest.

How much does an Oura membership cost?

In the U.S., Oura Membership costs $5.99 per month or $69.99 per year. The Oura Ring 5 itself costs $399 or $499 depending on the finish.

What is Oura's gross margin?

Oura's gross margin was 55% in the nine months to June 30, 2026, up from 51% a year earlier. Membership runs at about 89%. The hardware margin is not disclosed but works out to roughly 46% from the reported figures.

Does Oura have debt?

Yes. Oura drew $375 million on its revolving credit facility in the nine months to June 30, 2026, largely to fund stock repurchases, and $350 million remained outstanding after a $25 million repayment in August 2026. It held about $372 million of cash at June 30.