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Oura Health Oy is releasing a new smart ring this month, Bloomberg reported.
CEO Tom Hale said that the company expects to double its annual sales this year, to around $500 million.
The company faces increasing competition from products like Samsung's latest Galaxy Ring.
Oura Health Oy is set to launch a new generation of rings this month, Bloomberg reported Tuesday.
The Finnish company's fourth generation of fitness-tracking rings will feature a slimmer design, improved battery life, and more accurate activity tracking. Sources told Bloomberg that this marks the company's most significant product update in three years.
Oura has sold more than 2.5 million rings since its founding 11 years ago, according to a June press release.
The company's rings, priced at $299, track various health metrics, including sleep and heart rate. In addition to the hardware, Oura sells a $6 monthly subscription, which provides users with insights into their sleep and other health data.
Oura's smart rings are a favorite for athletes, from the WNBA to NASCAR; for royalty — even Prince Harry sports one; and for executives, who were spotted wearing the devices at July's Sun Valley Conference, the "summer camp for billionaires."
CEO Tom Hale told Bloomberg that he expects the company's annual sales to double this year, to around $500 million.
While Oura has yet to disclose details about the upcoming release, its latest smart ring could help maintain its edge in an increasingly saturated market.
In July, Samsung entered the smart ring space with the $400 Galaxy Ring, which tracks health metrics and features built-in AI capabilities. Bloomberg reported in February that Apple also toyed with the idea of developing smart rings, although no plans have been publicly announced. Apple's smartwatch tracks some of the same metrics as the Oura ring, including temperature and sleep.
In May, Samsung filed a preemptive lawsuit against Oura, declaring that its Galaxy Ring does not violate Oura's patents.
The complaint said that Oura had a track record of targeting competitors with patent lawsuits over widely used smart ring technologies like sensors and health tracking metrics. Samsung referenced past cases where Oura sued competitors including Ultrahuman, RingConn, and Circular.
Samsung filed the lawsuit, which is ongoing, after Oura's Hale said in an interview with CNBC in January that the company would be watching the Galaxy Ring closely for potential intellectual property violations.
Smart rings are poised for significant growth, with Samsung's Galaxy Ring potentially playing a key role in the industry's expansion, Avi Greengart, president and lead analyst at Techsponential, told Business Insider in March.
Greengart said customers are increasingly conscious of improving their sleep. In 2021, Oura published a study that claimed finger monitoring was optimal for measuring sleep quality.
Last month, analysts from research firm IDC said that the smart ring market could retain its "premium status as a select few brands still lead the category."
According to a report by Global Market Insights published this February, the global market for smart rings was $210 million in 2023 and is expected to reach $1 billion by 2032.
Companies — and their investors — like smart rings because customers buy a monthly subscription, not just the ring itself. That translates to more stable, predictable revenue over time.
Despite stiffening competition, Oura's Hale told Bloomberg that the company doesn't "have to do that much" to continue growing, adding that its profit margins are more similar to those of software manufacturers than those of traditional hardware companies.
Hale said Oura has no immediate plans to go public. He said the company is more focused on growth and profitability, calling an initial public offering a potential "energy suck."
Oura did not respond to a request for comment by Business Insider sent outside business hours.
