Oura is expected to hit $1B ARR in 2025

Oura, the Finnish health-tech company best known for its smart ring, is expected to generate more than $1 billion in revenue this year, doubling the $500 million it made in 2024. As for 2026, the company forecasts sales to exceed $1.5 billion.

While revenue is not always strictly equal to ARR, in Oura’s case the recurring membership/subscription component (for ring users) contributes significantly to its revenue, making the revenue figure a very strong proxy for its ARR. 

Oura’s product blends high-precision hardware (the ring) that tracks sleep, readiness, activity, and other biometric signals with a subscription model for enhanced insights and analysis.

The hardware (which comprises ~80% of revenue) is complemented by a growing base of paying subscribers (about 2 million users in 2024) each paying ~$6/month.  This hybrid model solves the challenge many wearable businesses face: balancing one-time hardware sales with recurring software revenue to improve predictability and margin.

Oura has sold 5.5 million rings to date, a notable increase from the 2.5 million reported in June 2024. The company has also raised significant funding (its Series D round was $200 million, valuing the company at about $5.2 billion as of late 2024, and is raising $875M Series E, bringing valuation to $11B) .