Oura's $2.2 Billion IPO Mostly Pays Early Shareholders

Oura plans to go public in a share sale worth up to $2.2 billion, but most of the money will go to existing shareholders rather than to the company. TechCrunch

Oura and its current shareholders plan to sell 50 million shares together at $40 to $44 each. Existing holders will sell 36.5 million shares, almost two-thirds of the total. Oura itself will sell the other 13.5 million.

At the $42 midpoint, current shareholders would collect about $1.53 billion before fees. Oura would collect about $567 million.

At the top of the range, Oura would have a market capitalization, or total value of all shares, of about $14.1 billion. That compares with an $11 billion valuation in October 2025, when it raised $900 million in a round led by Fidelity with participation from ICONIQ, Whale Rock and Atreides.

Secondary sales dominate the offering

Forerunner Ventures, Oura's second-largest shareholder, plans to sell its entire 9.3% stake of about 28.7 million shares. At $42 per share, that sale would be worth about $1.20 billion before fees and taxes. TechCrunch

Forerunner first invested in Oura in its $28 million Series B round in 2020, an early venture round to fund growth. Six years later, its holding accounts for nearly 80% of the shares being sold by existing shareholders in the IPO.

Oura has filed an S-1 IPO prospectus with the U.S. SEC, the standard disclosure for going public, posted on SEC EDGAR. The amended filing details the share counts, price range and use of proceeds. SEC filing

Little new cash left after tax obligations

At the $42 midpoint, Oura expects net proceeds of $532.6 million from the shares it sells, after fees. It plans to use about $526.4 million of that to pay tax obligations tied to employee share grants that vest at the IPO.

That leaves about $6.2 million for general corporate purposes. Oura held about $372 million in cash at the end of June 2026, so its cash position changes little once that tax payment is made.

Hardware scale, subscription margin

The business still gets most of its revenue from hardware, at $974 million. Membership revenue more than doubled to $240.5 million, about 20% of sales, with an 89% gross margin, meaning most of each subscription dollar is left after direct costs.

Oura expects about 5.7 million paying members by September 30, the end of its fiscal year, nearly double a year earlier. Unit sales build the installed base of rings in use, and part of that base then converts to recurring membership.

The broader context here is the difference between two kinds of listings. A financing IPO issues mostly new shares to fund operations, hiring or acquisitions. A liquidity IPO registers mostly existing shares to let employees and early investors sell. Oura falls in the second category, with its primary proceeds largely absorbed by settling employee stock.

In my view, that structure is not unusual, but it resets what public investors should expect. With only about $6.2 million retained for general use, growth must come from the current mix of devices and memberships rather than a large cash infusion. If 5.7 million members at 89% gross margin keep compounding, going public without adding much net cash can look efficient, with a clear path to steady software revenue on top of devices people wear every day.