Oura Health Oy, the popular smart ring maker, has no plans to abandon its subscription-based business model even as rivals experiment with cheaper hardware and no recurring fees.
In a recent interview, Chief Executive Officer Tom Hale said the subscription model is necessary to support the company’s focus on accuracy and long-term health insights. The recurring fees result in continued value, he argued, as the service delivers deeper health benefits over time and the brand gradually adds new and more sophisticated features.
“We use those funds to invest in science, new capabilities or being accurate,” Hale said. “That results in better retention, which allows us to invest more.” This business model allows Oura devices to build a long-term picture of an individual’s health, he added.
The company’s membership retention exceeds that of major streaming platforms, with millions of active members worldwide and about 75% opening the app at least five times a week, Hale said.
Hale’s comments follow a blockbuster year for the smart ring category, which had long been considered niche. The segment was on track for a 49% jump in shipments in 2025, according to IDC data shared with Bloomberg, far outpacing an estimated 6% gain by smartwatches. Some consumers have opted for smart rings because they offer many of the same sleep and wellness insights as smartwatches but with longer battery life and more discreet designs.
Oura, which launched its first smart ring in 2015, is the category leader. The company was valued at about $11 billion this fall and was targeting more than $1.5 billion in sales for 2026, Hale said in September. In addition to the price of the ring — which starts at $349 and goes up to $499 — that revenue includes the required membership fees, priced at $5.99 per month or $69.99 a year. Many of Oura’s competitors that don’t require subscriptions also charge less for their hardware.
Oura is less focused on pushing frequent hardware upgrades, Hale said, noting that many of the brand’s customers continue to use older ring models. This dovetails with the company’s relatively conservative approach to introducing new features. Rather than pursuing emerging technology such as non-invasive glucose monitoring — an area Samsung and Whoop Inc. are exploring — Oura is focusing its product and research efforts on cardiovascular health and blood pressure accuracy. That, said Hale, will have an impact on more people.
Hale said Oura’s strategy also remains focused on ensuring users wear the device consistently. Smart rings tend to deliver more reliable readings because fingers have thinner skin than wrists and sensors sit closer to key arteries. They also typically last longer between charges, Bloomberg has found after testing both kinds of products from different brands.
“Our battery life is three to four times the duration of an Apple Watch,” said Hale, adding that continuous tracking is only powerful “to the degree you’re wearing it and it’s charged.”
Kelly writes for Bloomberg.
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