Oura announced on Tuesday that it's purchasing AI-native primary care company Counsel Health for $625 million. The acquisition follows Oura's decision a few weeks earlier to delay its up to $2.2 billion initial public offering indefinitely, pointing to "uncertainty in the IPO market." Counsel Health operates an AI-powered healthcare platform that merges a chat-based medical experience with access to licensed doctors, and its service became part of the Oura app back in June.
The deal comes as Oura posted strong financial results, with revenue climbing 153% year-over-year to reach $533 million for the quarter that ended September 30, according to the company. For its fiscal year 2026, Oura brought in roughly $1.75 billion in revenue, representing 92% year-over-year growth. The smart ring maker hit an $11 billion valuation after a $900 million late-stage funding round in October 2025. Counsel Health had raised a $25 million Series A a year ago, led by Andreessen Horowitz and GV, with PitchBook estimating total fundraising of $36 million.
"Oura helps members understand their physiology and, with Counsel, they can take action on their health across a range of needs, from quick questions and prescriptions to lab results, chronic care, and referrals," Oura CEO Tom Hale said in a press release. Counsel CEO Muthu Alagappan, who will become Oura's chief clinical AI officer alongside the company's 70 employees joining Oura, added that "Oura's data gives clinicians objective context, trended biometrics, and member engagement to deliver more informed care." The companies plan to broaden their current partnership to span preventative care, acute care, and specialty and chronic care, according to the announcement.
The acquisition reflects mounting competitive pressure on Oura as rivals like RingConn and Ultrahuman work to challenge its dominance in the smart ring market, pushing the company to keep innovating. By bringing Counsel Health on board, Oura aims to expand its business and give users pathways to medical care beyond just tracking their health metrics. Users can now connect with Counsel's medical AI for personalized medical advice and chat with a physician when necessary, all inside the Oura app. Following the acquisition, Counsel will keep serving current and new enterprise partners, with plans to bring its AI-native care model to more people outside Oura's membership base. The deal is slated to close before the end of 2027. The pivot toward healthcare services may help Oura differentiate in a crowding wearables field, though integrating clinical operations with consumer hardware presents operational challenges that extend well beyond the company's traditional product expertise.