The Finnish company is raising $875 million in a new Series E financing round valuing it around $10.9 billion, according to people familiar with the matter. That would double Oura’s $5 billion valuation from its Series D round last November.

The new round is expected to close by the end of this month and could still exceed $900 million, said the people, who asked not to be identified discussing private matters. Oura plans to use the funds to scale production, invest in development and expand internationally, the people said.

Separately, the company said it has secured a $250 million revolving credit line with a consortium of banks including Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Barclays Plc.

Tom Hale, Oura’s chief executive officer, declined to comment on the company’s fundraising process. But in an interview, he said Oura has been growing “like a rocket ship,” adding that he has “never had a stronger quarter” in his 130 quarters working in business.

The company has now sold 5.5 million rings in total — up from 2.5 million through June 2024, Hale said. Oura is on track to generate more than $1 billion in revenue in 2025, doubling the $500 million it posted in 2024. Looking ahead, it expects sales to exceed $1.5 billion in 2026.

Recent growth has been fueled by female shoppers, retail store sales, purchases made with health savings account funds, and international expansion. Oura launched its latest ring in Japan and Germany earlier this year and is planning further global rollouts. Today, the company sells its devices across 4,000 stores. 

The US military is Oura’s largest business customer, with tens of thousands of service members using the rings for fatigue tracking and research. Still, Hale said revenue from that arrangement is a relatively small contributor to overall sales.

Hale also said that Oura has widened its margins in recent quarters, though he declined to disclose profitability. 

“The combination of hardware and subscription revenue puts us on a different level than most hardware companies,” he said. About 20% of Oura’s revenue now comes from subscriptions, he added.

Asked about a potential IPO, Hale said there are “real advantages to being a private company,” pointing to the success of firms like SpaceX and Stripe. “I don’t want to say we’re never going public, but I am also not saying we plan to go public or have made a decision to go public,” he said.

Oura launched its latest device, the Oura Ring 4, last October, and Hale said the company is “marching toward” annual hardware updates. The company also recently partnered with Dexcom to funnel blood sugar data into the Oura app.

New product form factors are under consideration, though Hale emphasized that a ring will remain central to Oura’s strategy. He called the device ideal for “fit, fashion and accuracy.”

Compared with smartwatches, fitness rings are still in their infancy and make up a small slice of the overall wearables market — though some consumers are choosing to use both. A common setup is wearing a smartwatch during the day and using the smaller ring for sleep or exercise tracking.

Oura remains the dominant player in its category, but competition is increasing. Samsung Electronics Co. launched the Galaxy Ring last year to a tepid reception, while startups like Amazfit, Velia and Ultrahuman have also entered the space. Apple Inc. has explored ring-style devices in the past as well.