Oura Health is preparing for a potential U.S. stock market debut that could raise up to $3 billion and value the smart ring maker at more than $16 billion. Sources familiar with the plans told Bloomberg the company could launch its initial public offering as early as next month.

The San Francisco and Finland-based company filed confidentially for its IPO in May. It has retained Goldman Sachs, Morgan Stanley, JPMorgan Chase, Allen & Co., and Jefferies Financial Group to work on the public offering. Details surrounding the IPO are still in the works and subject to change.

Secondary Component and Valuation Context

The offering is expected to include a substantial secondary component, allowing some of Oura’s existing investors to cash out part of their stakes in the company. This marks a significant jump from September 2025, when the company’s valuation hit $11 billion after a funding round raised $875 million in Series E.

Oura was founded in 2013 by Petteri Lahtela, Kari Kivela, and Markku Koskela. Unlike earlier wearable companies that relied primarily on device sales, Oura has increasingly leaned into a subscription model layered on top of its hardware. Users pay recurring fees for insights into sleep, recovery, stress, and readiness generated from biometric data collected by the ring.

Sector Benchmarks and Competition

Private investors say recent digital health IPOs, including Hinge Health Inc (NYSE: HNGE), are emerging as important reference points for the sector, helping reset valuation expectations in public markets. Andreessen Horowitz general partner Julie Yoo previously told Axios that investors were closely watching the first wave of digital health listings, describing the Hinge Health debut as a key moment that would help "set the stage" for the broader category.

The competitive landscape remains crowded, with major technology companies such as Apple Inc and Samsung continuing to expand their health ecosystems. Samsung introduced its own Galaxy smart ring in 2024, while Apple continues to expand its health features across its Apple Watch.

What the Numbers Show

The proposed IPO valuation of more than $16 billion represents a significant premium over the company's last disclosed private valuation of $11 billion in September 2025. This increase coincides with the shift toward a subscription-based revenue model, which investors view as providing higher visibility and long-term engagement compared to one-time hardware sales.

Smart ring maker Oura faces a proposed class-action lawsuit alleging it misled consumers regarding the accuracy of its sleep-stage and sleep-quality measurements.

The complaint was filed Thursday in the U.S. District Court for the Northern District of California. Plaintiff Madison Surber claims she purchased an Oura Ring 4 for about $513.68 in May 2025 after seeing marketing claims about the device's capabilities.

The Allegations

Surber argues that Oura promoted its rings as capable of accurately measuring sleep stages despite not containing the same types of sensors used in clinical sleep studies. The complaint alleges the company advertised sleep-stage accuracy figures of 79% and 95%.

The lawsuit contends these representations are misleading because the device lacks sensors used in polysomnography (PSG), widely considered the clinical reference for measuring sleep. Surber argues that consumers are given the impression the ring provides measurements comparable to clinical equipment.

"No consumer would understand Oura’s promises of unparalleled accuracy to equate to the reality: a coin flip’s chance of being correct," the lawsuit reads. The complaint also alleges that Oura's AI models make guesses based on "improper inputs" and present AI-based inferences as reliable science.

Oura’s Defense

Oura disputed the allegations, defending its research and accuracy claims. A spokesperson stated the company stands behind its science, noting that the ring estimates sleep stages using multiple physiological signals including heart rate, heart rate variability, movement, breathing patterns, and temperature.

Oura pointed to peer-reviewed research supporting the use of physiological signals to classify sleep stages. The company said its sleep staging has been validated against polysomnography, which it described as the gold standard for sleep measurement.

While acknowledging the ring is not a medical device or a substitute for a clinical sleep study, Oura stated its sleep staging has been validated and compared favorably in multiple studies against PSG. The company noted that more than 1,200 nights of data were collected to inform the development of its sleep-staging algorithm, known as NSSA.

Legal Claims

Attorneys for Surber say they identified numerous advertisements and product pages containing the challenged representations. They argue the products lack the sensors required to directly measure the neurological activities that clinically define sleep stages.

The case brings seven causes of action, including alleged fraud by misrepresentation, unjust enrichment, violations of California’s Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act, as well as alleged breaches of express and implied warranties.

Surber is seeking damages and other relief, including an injunction that would require Oura to stop making the allegedly misleading representations. Oura stated it will defend against the allegations in the appropriate legal forum.