Peloton Interactive (PTON) 10-Q 6 Nov 19 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-39058
Entity Registrant Name	Peloton Interactive, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3533761
Entity Address, Address Line One	125 West 25th Street, 11th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	866
Local Phone Number	679-9129
Title of 12(b) Security	Class A common stock, $0.000025 par value per share
Trading Symbol	PTON
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001639825
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		43,707,400
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		236,819,100

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 1,375.9	$ 162.1
Marketable securities	100.4	216
Accounts receivable, net of allowances	20.9	18.5
Inventories, net	205.6	136.6
Prepaid expenses and other current assets	46.5	48.4
Total current assets	1,749.3	581.7
Property and equipment, net	119.7	249.7
Intangible assets, net	18.3	19.5
Goodwill	4.3	4.3
Restricted cash	0.8	0.8
Right-of-use asset	485.5
Other assets	9.9	8.5
Total assets	2,387.7	864.5
Current liabilities:
Accounts payable	90.7	92.2
Accrued expenses	116.2	104.5
Customer deposits and deferred revenue	99.2	90.8
Other current liabilities	21.4	3.3
Total current liabilities	327.6	290.8
Deferred rent		23.7
Build-to-suit liability		147.1
Long term lease liability	483.8
Other non-current liabilities	0.4	0.4
Total liabilities	811.8	462
Commitments and contingencies (Note 9)
Redeemable convertible preferred stock, $0.000025 par value, zero and 215,443,468 shares authorized; zero and 210,640,629 shares issued and outstanding as of September 30, 2019 and June 30, 2019, respectively.	0	941.1
Stockholders’ equity (deficit)
Common stock, $0.000025 par value; 2,500,000,000 and zero Class A shares authorized, 43,448,475 and zero shares issued and outstanding as of September 30, 2019 and June 30, 2019, respectively; 2,500,000,000 and 400,000,000 Class B shares authorized, 236,819,100 and 25,301,604 shares issued and outstanding as of September 30, 2019 and June 30, 2019, respectively.	0	0
Additional paid-in capital	2,249.1	90.7
Accumulated other comprehensive (loss) income	(1.1)	0.2
Accumulated deficit	(672)	(629.5)
Total stockholders’ equity (deficit)	1,576	(538.6)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)	$ 2,387.7	$ 864.5

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Redeemable convertible preferred stock, shares authorized (in shares)	0	215,443,468
Redeemable convertible preferred stock, shares issued (in shares)	0	210,640,629
Redeemable convertible preferred stock, shares outstanding (in shares)	0	210,640,629
Common stock, par value (in dollars per share)		$ 0.000025
Class A Common Stock
Common stock, shares authorized (in shares)	2,500,000,000	0
Common stock, shares issued (in shares)	43,448,475	0
Common stock, shares outstanding (in shares)	43,448,475	0
Class B Common Stock
Common stock, shares authorized (in shares)	2,500,000,000	400,000,000
Common stock, shares issued (in shares)	236,819,100	25,301,604
Common stock, shares outstanding (in shares)	236,819,100	25,301,604

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenue	$ 228,000,000	$ 112,100,000
Cost of revenue	122,900,000	60,600,000
Gross profit	105,100,000	51,500,000
Operating expenses:
Selling and marketing expense	77,600,000	45,500,000
General and administrative expense	60,900,000	50,000,000
Research and development	17,400,000	11,600,000
Total operating expenses	156,000,000	107,100,000
Loss from operations	(50,900,000)	(55,600,000)
Other income, net:
Interest income, net	1,300,000	1,000,000
Other expense, net	(100,000)	0
Total other income, net	1,200,000	1,000,000
Loss before provision for income taxes	(49,700,000)	(54,500,000)
Provision for income taxes	100,000	0
Net loss	$ (49,800,000)	$ (54,500,000)
Net loss per share attributable Class A and Class B common stockholders (in dollars per share)	$ (1.29)	$ (2.18)
Weighted-average Class A and Class B common shares outstanding, basic and diluted (in shares)	38,453,864	24,999,075
Other comprehensive income (loss):
Change in unrealized gain (loss) on marketable securities	$ 0	$ (100,000)
Change in foreign currency translation adjustment	(1,300,000)	0
Total other comprehensive income (loss)	(1,300,000)	(100,000)
Comprehensive loss	(51,100,000)	(54,600,000)
Connected Fitness Products
Revenue	157,600,000	77,900,000
Cost of revenue	89,800,000	42,200,000
Subscription
Revenue	67,200,000	31,700,000
Cost of revenue	29,500,000	16,300,000
Other
Revenue	3,300,000	2,500,000
Cost of revenue	$ 3,600,000	$ 2,100,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operating Activities:
Net loss	$ (49.8)	$ (54.5)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	7.1	4.2
Stock-based compensation expense	18.7	36.7
Amortization of debt issuance costs	0.1	0.1
Amortization of premium from marketable securities	0.3	0
Non-cash operating lease expense	9.3
Changes in operating assets and liabilities:
Accounts receivable	(2.4)	(0.1)
Inventories	(69.1)	(25.8)
Prepaid expenses and other current assets	1.9	(8.8)
Other assets	(1.4)	(2.4)
Accounts payable and accrued expenses	17.5	21.9
Customer deposits and deferred revenue	8.5	(3)
Operating lease liabilities, net	(16.7)
Other liabilities	(0.1)	1.5
Net cash used in operating activities	(76.2)	(30.2)
Cash Flows from Investing Activities:
Maturities of marketable securities	115.3	0
Purchases of property and equipment	(22.5)	(11.2)
Net cash provided by (used in) investing activities	92.8	(11.2)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock upon initial public offering, net of offering costs	1,195.7	0
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	0	539.1
Proceeds from exercise of stock options	2.7	0.2
Net cash provided by financing activities	1,198.4	539.3
Effect of exchange rate changes	(1.3)	(0.1)
Net change in cash	1,213.7	497.8
Cash, cash equivalents and restricted cash — Beginning of period	163	151.6
Cash, cash equivalents and restricted cash — End of period	1,376.7	649.5
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	0	0.1
Supplemental Disclosures of Non-Cash Investing and Financing Information:
Conversion of convertible preferred stock to common stock	941.1	0
Property and equipment accrued but unpaid	8.9	3.6
Stock-based compensation capitalized for software development costs	$ 0.4	$ 0.1

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Millions	Total	Redeemable Convertible Preferred Stock	Common StockClass A and Class B Common Stock	Additional Paid-In Capital	Other Comprehensive Income	Accumulated Deficit
Beginning balance (in shares) at Jun. 30, 2018		176,300,000
Beginning balance at Jun. 30, 2018		$ 406.3
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series F redeemable convertible preferred stock, net (in shares)		38,100,000
Issuance of Series F redeemable convertible preferred stock, net		$ 539.1
Ending balance (in shares) at Sep. 30, 2018		214,400,000
Ending balance at Sep. 30, 2018		$ 945.4
Beginning balance (in shares) at Jun. 30, 2018			25,900,000
Beginning balance at Jun. 30, 2018	$ (315.6)		$ 0	$ 20.5	$ 0	$ (336.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			200,000
Exercise of stock options	0.8			0.8
Stock-based compensation expense	0.8			0.8
Other comprehensive income	(0.1)				(0.1)
Net loss	(54.5)					(54.5)
Ending balance (in shares) at Sep. 30, 2018			26,100,000
Ending balance at Sep. 30, 2018	$ (368.7)		$ 0	22	(0.1)	(390.6)
Beginning balance (in shares) at Jun. 30, 2019	210,640,629	210,600,000
Beginning balance at Jun. 30, 2019	$ 941.1	$ 941.1
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of redeemable convertible preferred stock to common stock (in shares)		(210,640,629)
Conversion of redeemable convertible preferred stock to common stock		$ (941.1)
Ending balance (in shares) at Sep. 30, 2019	0	0
Ending balance at Sep. 30, 2019	$ 0	$ 0
Beginning balance (in shares) at Jun. 30, 2019			25,300,000
Beginning balance at Jun. 30, 2019	(538.6)			90.7	0.2	(629.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Initial public offering, net of issuance costs (in shares)			43,400,000
Initial public offering, net of issuance costs	1,195.7			1,195.7
Conversion of redeemable convertible preferred stock to common stock (in shares)			210,600,000
Conversion of redeemable convertible preferred stock to common stock	$ 941.1			941.1
Exercise of stock options (in shares)	638,614		600,000
Exercise of stock options	$ 2.5			2.5
Exercise of stock warrants (in shares)			200,000
Stock-based compensation expense	19			19
Other comprehensive income	(1.3)				(1.3)
Net loss	(49.8)					(49.8)
Ending balance (in shares) at Sep. 30, 2019			280,300,000
Ending balance at Sep. 30, 2019	$ 1,576		$ 0	$ 2,249.1	$ (1.1)	$ (672)

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 6.3

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Description and Organization Peloton Interactive, Inc. ("Peloton" or the “Company”) is the largest interactive fitness platform in the world with a loyal community of Members, which we define as any individual who has a Peloton account. The Company pioneered connected, technology-enabled fitness with the creation of its interactive fitness equipment ("Connected Fitness Products") and the streaming of immersive, instructor-led boutique classes to its Members anytime, anywhere. The Company makes fitness entertaining, approachable, effective and convenient while fostering social connections that encourage its Members to be the best versions of themselves. The Company organizes its business into the following three reportable segments: Connected Fitness Products, Subscription and Other. See Note 14 of the notes to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion of the Company's segment reporting structure. Initial Public Offering and Concurrent Private Placement In September 2019, the Company closed its initial public offering ("IPO") and a concurrent private placement, in which it issued and sold 43,448,275 shares of its authorized Class A common stock. The price per share to the public in the IPO and in the concurrent private placement was $29.00 per share. The Company received aggregate proceeds of $1.2 billion from the IPO and the concurrent private placement, net of the underwriting discount and before deducting offering costs of approximately $6.3 million. Prior to the closing of the IPO, all shares of the Company's common stock then outstanding were reclassified into 25,301,604 shares of Class B common stock, and upon the closing of the IPO, all shares of the Company's then outstanding preferred stock automatically converted into 210,640,629 shares of Class B common stock on a one-to-one basis. Basis of Presentation and Consolidation The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the final prospectus dated September 25, 2019 and filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, (the "Securities Act"), on September 26, 2019 (the "Prospectus"). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of June 30, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three months ended September 30, 2019 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending June 30, 2020, or any other period. Certain monetary amounts, percentages, and other figures included elsewhere in these financial statements have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them. Except as described elsewhere in Note 2 of the notes to our condensed consolidated financial statements in the section titled "—Recently Issued Accounting Pronouncements" in Part I, Item 1 of this Quarterly Report on Form 10-Q, there have been no material changes to the Company's significant accounting policies as described elsewhere in the Prospectus.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to income taxes, the realizability of inventory, stock-based compensation, contingencies, revenue related reserves, content costs for past use reserve, fair value measurements, the incremental borrowing rate associated with lease liabilities, useful lives of property and equipment as well as intangible assets, and impairment of goodwill, intangible and long-lived assets. The Company bases its estimates on historical experience, market conditions, and on various other assumptions that are believed to be reasonable. Actual results may differ from these estimates. Stock-Based Compensation In August 2019, the Board of Directors adopted the 2019 Employee Stock Purchase Plan ("ESPP"), which was subsequently approved by the Company’s stockholders in September 2019. The Company recognizes stock-based compensation expenses related to shares issued pursuant to its ESPP on a straight-line basis over the offering period, which is twenty-four Recently Issued Accounting Pronouncements Accounting Pronouncements Recently Adopted ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which introduced and codified new lease accounting guidance under ASC 842. ASU 2016-02 requires a lessee to separate the lease components from the non-lease components in a contract and recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted this ASU and related amendments as of July 1, 2019 under the modified retrospective approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients and, as permitted, the Company did not assess whether existing contracts are or contain leases, the lease classification for any existing leases, and identification of initial direct costs for any existing leases. Adoption of the new standard resulted in the recognition of right-of-use assets and operating lease liabilities on the Company's consolidated balance sheet. In addition, the Company de-recognized a build-to-suit arrangement in accordance with the transition requirements, which resulted in an adjustment to retained earnings. The standard did not materially impact the Company's consolidated statements of operations. See Note 7 for further discussion of the Company's accounting for leases under ASC 842. ASU 2018-07 In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation

Revenue

Revenue	3 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company’s primary source of revenue is from sales of its Connected Fitness Products and associated recurring subscription revenue. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue is recognized when control of the promised goods or services are transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company's revenue is reported net of sales returns and discounts. The Company estimates its liability for product returns based on historical return trends by product category, impact of seasonality, and an evaluation of current economic and market conditions and records the expected customer refund liability as a reduction to revenue, and the expected inventory right of recovery as a reduction of cost of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur. Some of the Company’s contracts with customers contain multiple performance obligations. For customer contracts that include multiple performance obligations, the Company accounts for individual performance obligations if they are distinct. The transaction price is then allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling price based on prices charged to customers. Connected Fitness Products Connected Fitness Products include the Company’s Bike and Tread, related accessories, associated fees for delivery and installation, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts when the product has been delivered to the customer. The Company generally allows customers to return products within thirty days of purchase, as stated in its return policy. The Company records fees paid to third-party financing partners in connection with its consumer financing program as a reduction of revenue, as it considers such costs to be a customer sales incentive. The Company records payment processing fees for its credit card sales for Connected Fitness Products within selling and marketing expenses. Subscription The Company’s subscriptions provide unlimited access to content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month basis. Historically, the Company offered a prepaid subscription option where Subscribers earned one free month or three free months of subscription with the purchase of a 12-month subscription or 24-month subscription, respectively. The Company also offered Subscribers the ability to finance the prepaid subscription with the purchase of a Connected Fitness Product as part of its financing program. The associated financing fees were paid to the Company’s third-party partner at the outset of the arrangement and are recorded as a reduction to subscription revenue. The Company terminated both programs in July 2018. Amounts paid for subscription fees are included within customer deposits and deferred revenue and recognized ratably on a month-to-month basis. The Company records payment processing fees for its monthly subscription charges within cost of revenue. The Company generates a small portion of its revenue from the sale of studio credits to attend and participate in a live, instructor-led class at its New York City studios. Studio revenue is recognized at the time the credits are used. Product Warranty The Company offers a standard product warranty that its Connected Fitness Products will operate under normal, non-commercial use for a period of one-year from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenue. Factors that affect the warranty obligation include historical as well as current product failure rates, service delivery costs incurred in correcting product failures, and warranty policies. The Company’s products are manufactured by contract manufacturers, and in certain cases, the Company may have recourse to such contract manufacturers. The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 12 to 27 months. Revenue and related fees paid to the third-party provider are recognized on a gross basis as the Company has a continuing obligation to perform over the service period. Extended warranty revenue is recognized ratably over the extended warranty coverage period and is included in Connected Fitness Product revenue in the consolidated statement of operations. Disaggregation of Revenue The Company's revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 14 under the heading "Segment Information". The Company's revenue disaggregated by geographic region, based on ship-to address, were as follows: Three Months Ended September 30, 2019 2018 (in millions) North America (1) $ 221.7 $ 112.1 United Kingdom 6.3 0.1 Total revenue $ 228.0 $ 112.1 _________________________ (1) Consists of United States and Canada Customer Deposits and Deferred Revenue Deferred revenue is recorded for nonrefundable cash payments received for the Company’s performance obligation to transfer, or stand ready to transfer, goods or services in the future. Deferred revenue consists of subscription fees billed that have not been recognized. Customer deposits represent payments received in advance before the Company transfers a good or service to the customer and are refundable. As of September 30, 2019 and June 30, 2019, customer deposits of $88.6 million and $81.3 million, respectively, and deferred revenue of $10.6 million and $9.5 million, respectively, were included in customer deposits and deferred revenue on the Company's condensed consolidated balance sheet. In the three months ended September 30, 2019, the Company recognized $9.5 million of revenue that was included in the deferred revenue balance as of June 30, 2019.

Investments in Marketable Secur

Investments in Marketable Securities	3 Months Ended
	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Investments in Marketable Securities	Investments in Marketable Securities The following table summarizes the Company's investments in marketable securities: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Commercial paper $ 55.9 $ — $ — $ 55.9 Corporate bonds 51.1 0.1 — 51.2 U.S. treasury securities 29.7 0.1 — 29.8 Certificates of deposit 4.6 — — 4.6 Total marketable securities (1) $ 141.3 $ 0.2 $ — $ 141.5 _________________________ (1) Includes $41.1 million included within cash and cash equivalents.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table summarizes the Company's assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: As of September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents (1) : (in millions) Commercial paper $ 41.1 $ — $ — $ 41.1 Marketable securities: Corporate bonds 51.2 — — 51.2 U.S. treasury securities 29.8 — — 29.8 Commercial paper 14.9 — — 14.9 Certificates of deposit 4.6 — — 4.6 Other: Cost-method investments — — 0.6 0.6 Total assets $ 141.5 $ — $ 0.6 $ 142.1 _________________________ (1) Included in cash and cash equivalents. Cash equivalents are highly liquid investments with maturities of three months or less when purchased. These investments are carried at cost, which approximates fair value. All investments classified as available-for-sale are recorded at fair value within marketable securities in

Inventory

Inventory	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventory	Inventory Inventories were as follows: September 30, June 30, (in millions) Raw materials $ 2.2 $ — Finished products 216.6 152.0 Total inventories 218.7 152.0 Less: Reserves (13.1) (15.4) Total inventories, net $ 205.6 $ 136.6

Leases

Leases	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Leases	Leases The Company leases facilities under operating leases with various expiration dates through 2039. The Company’s corporate headquarters is located in New York, New York. The Company also leases space for the operation of its production studio facilities, retail showrooms, microstores, warehouses, and office spaces. Right-of-use assets and lease liabilities are established on the unaudited condensed consolidated balance sheets for leases with an expected term greater than one year. As the rate implicit in the lease is not determinable, the Company uses its secured incremental borrowing rate to determine the present value of the lease payments. Leases with an initial term of 12 months or less are not recorded on the unaudited condensed consolidated balance sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has elected to not separate lease and non-lease components. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The operating lease arrangements included in the measurement of lease liabilities do not reflect options to extend or terminate, as management does not consider the exercise of these options to be reasonably certain. Variable lease payments include, but are not limited to, percentage of sales, common area charges, taxes paid by the landlord that are charged to the Company, and changes to the consumer price index. Variable lease payments are expensed as incurred. As of September 30, 2019, the total remaining lease payments included in the measurement of lease liabilities for operating leases were as follows: Fiscal Year Ending June 30, (in millions) The remainder of 2020 $ 1.3 2021 54.3 2022 62.0 2023 62.4 2024 60.0 Thereafter 563.0 Total $ 802.9 Supplemental balance sheet information related to leases was as follows: Three Months Ended September 30, 2019 Reconciliation of Lease Liabilities (dollars in millions) Weighted-average remaining lease term (years) 13.4 Weighted-average discount rate 5.84 % Total Undiscounted Lease Liability $ 802.9 Less: Imputed interest (289.4) Total Discounted Lease Liability $ 513.5 Current portion of lease liability $ 29.7 Non-current portion of lease liability $ 483.8 Supplemental cash flow and other information related to leases was as follows: Three Months Ended September 30, 2019 Cash Paid For Amounts Included In Measurement of Liabilities (in millions) Operating cash flows from operating leases $ 8.3 Right-of-use assets obtained in exchange for new operating lease liabilities (non-cash) $ 307.0 As of September 30, 2019, the Company had additional operating lease obligations that had not yet commenced of approximately $4.6 million for equipment and real estate leases to be delivered in fiscal 2020 with lease terms up to fiscal 2030. Total operating lease expense was $16.8 million for the three months ended September 30, 2019, of which $1.7 million was attributable to variable lease expense. During the three months ended September 30, 2018, rent expense was $5.7 million.

Debt and Financing Arrangements

Debt and Financing Arrangements	3 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt and Financing Arrangements	Debt and Financing Arrangements Amended and Restated Credit Agreement In June 2019, the Company entered into an amended and restated loan and security agreement (“Amended Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, lead arranger and bookrunner and Bank of America, N.A., Barclays Bank PLC, Goldman Sachs Lending Partners LLC and Silicon Valley Bank, as joint syndication agents, which amended and restated the Company's 2018 secured revolving credit facility. The Amended Credit Agreement provides for a $250.0 million secured revolving credit facility, including up to the lesser of $150.0 million and the aggregate unused amount of the facility for the issuance of letters of credit. Interest on the Amended Credit Agreement is paid based on LIBOR plus 2.75% or an Alternative Base Rate plus 1.75%. The Company is required to pay an annual commitment fee of 0.375% on a quarterly basis based on the unused portion of the revolving credit facility. The Company incurred total commitment fees of $0.2 million and $0.1 million during the three months ended September 30, 2019 and 2018, respectively, which are included in interest expense in the statements of operations. The principal amount, if any, is payable in full in June 2024. As of September 30, 2019, the Company had not drawn on the credit facility and did not have outstanding borrowings under the Amended Credit Agreement. In connection with the execution of the Amended Credit Agreement, the Company incurred debt issuance costs of $0.9 million, which are capitalized and are being amortized to interest expense using the effective interest method over the term of the Amended Credit Agreement.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesContent Costs for Past Use Reserve To secure the rights to stream music on the Peloton platform, the Company must obtain licenses from, and pay royalties to, copyright owners of both sound recordings and musical compositions. The Company has entered into negotiations with various music rights holders, to pay for any and all uses of musical compositions and sound recordings to-date and, at the same time, enter into go-forward license agreements for the use of music in the future. Prior to the execution of go-forward music license agreements, the Company es timates and records expenses inclusive of estimated content costs for past use as well as normal and recurring music royalty expenses. The Company recorded content costs for past use of $0.9 million and $2.9 million during the three months ended September 30, 2019 and 2018, respectively. In addition, the Company recorded estimates for normal and recurring royalty expense of $1.6 million and $0.8 million, respectively. The Company includes both of these components in its reserve. As of September 30, 2019, the Company recorded reserves of $20.8 million , included in accrued expenses in the accompanying condensed consolidated balance sheets. Legal Proceedings On March 19, 2019, Downtown Music Publishing LLC, ole Media Management, L.P., Big Deal Music, LLC, CYPMP, LLC, Peer International Corporation, PSO Limited, Peermusic Ltd., Peermusic III, Ltd., Peertunes, Ltd., Songs of Peer Ltd., Reservoir Media Management, Inc., The Richmond Organization, Inc., Round Hill Music LLC, The Royalty Network, Inc., and Ultra International Music Publishing, LLC filed a lawsuit against the Company in the U.S. District Court for the Southern District of New York, captioned Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc., alleging that the Company engaged in copyright infringement by using certain accused songs in streaming and recorded fitness classes without necessary licenses. The plaintiffs allege that they are music publishers that own or control the copyrights in numerous musical works that were synchronized by the Company without the plaintiffs’ authorization. The complaint asserts a single claim for copyright infringement. On April 30, 2019, the Company answered the complaint and filed counterclaims against the original named plaintiffs and National Music Publishers’ Association, Inc., a trade association, alleging that they coordinated to collectively negotiate licenses in violation of the antitrust laws. The counterclaims also assert that the trade association tortuously interfered with the Company's attempts to engage in direct negotiations with music publishers in violation of state law. The counterclaims seek injunctive relief, monetary damages (to be trebled under applicable statute), and attorneys’ fees and costs. An initial pretrial conference was held on May 9, 2019 and discovery has commenced. An amended complaint filed on May 31, 2019 named additional plaintiffs Greensleeves Publishing Ltd., Me Gusta Music, LLC, Raleigh Music Publishing LLC, STB Music, Inc., and TuneCore, Inc. and identified additional musical works. The Company answered the amended complaint on June 14, 2019. On June 24, 2019, counter-defendants filed a motion to dismiss the counterclaims, to which the Company filed an opposition on August 8, 2019. Discovery on the claims and counterclaims is ongoing in this case. On September 27, 2019, the district court granted plaintiffs leave to file a second amended complaint identifying additional musical works and affiliated entities, and requesting injunctive relief, more than $300 million in damages, and attorneys’ fees and costs. The Company is opposing the motion and it is currently pending before the U.S. District Court for the Southern District of New York. The Company intends to vigorously defend the claim and answered the second amended complaint and also filed counterclaims on October 11, 2019. Discovery on the claims and counterclaims is ongoing in this case. While the Company cannot predict the ultimate result of any judgment against, or settlement by, the Company, will be in this matter, based on application of ASC 450, "Contingencies", at September 30, 2019, the Company accrued its best estimate within a range of possible outcomes ranging from $4.0 million to $11.0 million, which is included in accrued expenses in the accompanying condensed consolidated balance sheets. Amounts accrued for this matter at September 30, 2019 are not considered material to the Company's financial position and the Company continues to vigorously defend its position in the aforementioned outstanding matter and assess its legal position. In addition to the above, from time to time, the Company is subject to litigation matters and claims which arise in the ordinary course of its business. The Company believes that the outcome of any existing litigation, either individually or in the aggregate, will not have a material impact on the results of operations, financial condition or cash flows of the Company.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity (Deficit)	Stockholders' Equity (Deficit) Convertible Preferred Stock In September 2019, upon the closing of the Company's IPO, all outstanding shares of convertible preferred stock were automatically converted into an aggregate of 210,640,629 shares of Class B common stock. Preferred Stock Effective September 2019, the Company's Board of Directors ("Board of Directors") authorized the issuance of undesignated preferred stock, with a par value of $0.000025 per share. As of September 30, 2019, there were 50,000,000 shares of preferred stock authorized and zero shares of preferred stock outstanding. Common Stock In August 2019, the Company implemented a dual class common stock structure where all existing shares of common stock were reclassified into Class B common stock and the Company also authorized a new class of common stock, the Class A common stock. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to twenty votes per share. The Class A and Class B common stock have the same dividend and liquidation rights, and the Class B common stock converts to Class A at any time at the option of the holder, or automatically upon the date that is the earliest of (i) the date specified by a vote of the holders of 66 2/3% of the then outstanding shares of Class B common stock, (ii) 10 years from the closing date of the IPO, and (iii) the date that the total number of shares of Class B common stock outstanding cease to represent at least 1% of all outstanding shares of the Company's common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, except for certain transfers described in the Company's restated certificate of incorporation. Upon the creation of the dual class common stock structure, all outstanding options and the warrant to purchase common stock became options and a warrant, respectively, to purchase an equivalent number of shares of Class B common stock. The Board of Directors authorized the issuance of Class A common stock and Class B common stock, each with a par value of $0.000025 per share. As of September 30, 2019, there were 2,500,000,000 shares of Class A common stock and 2,500,000,000 shares of Class B common stock authorized and 43,448,475 shares of Class A common stock and 236,819,100 shares of Class B common stock outstanding.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation 2015 Stock Plan In April 2015, the Board of Directors approved the establishment of the 2015 Stock Plan (the “2015 Plan”) to provide stock award grants to employees, directors, and consultants of the Company. The Board of Directors, or at its sole discretion, a committee of the Board of Directors, is responsible for the administration of the 2015 Plan. The 2015 Plan requires that the per share exercise price of each stock option shall not be less than 100% of the fair market value of the common stock subject to the stock option on the grant date. Stock option grants shall not be exercisable after the expiration of ten four The 2015 Plan was terminated in connection with the adoption of the Company's 2019 Equity Incentive Plan (the "2019 Plan") in September 2019, and the Company will not grant any additional awards under the 2015 Plan. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. Any reserved shares not issued or subject to outstanding grants under the 2015 Plan on the effective date of the 2019 Plan became available for grant under the 2019 Plan and will be issued as Class A common stock. 2019 Equity Incentive Plan In August 2019, the Board of Directors adopted the 2019 Plan, which was subsequently approved by the Company’s stockholders in September 2019. The Company initially reserved 49,809,576 shares of the Company’s Class A common stock to be issued under the 2019 Plan, which figure includes all shares reserved under the 2015 Plan not issued or subject to outstanding grants under the 2015 Plan as of the effective date of the 2019 Plan. The number of shares reserved for issuance under the 2019 Plan will increase automatically on July 1 of each of 2020 through 2029 by the number of shares of the Company’s Class A common stock equal to 5% of the total outstanding shares of all of the Company’s classes of common stock as of each June 30 immediately preceding the date of increase, or a lesser amount as determined by the Board of Directors. The following summary sets forth the stock option activity under the 2019 Plan: Options Outstanding Number of Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding — June 30, 2019 64,602,124 $ 6.71 8.6 $ 972.0 Granted 1,114,900 $ 24.56 Exercised (638,614) $ 3.41 Cancelled (802,448) $ 9.45 Outstanding — September 30, 2019 64,275,962 $ 7.02 8.4 $ 1,164.2 Vested and Exercisable— September 30, 2019 19,525,770 $ 3.00 7.4 $ 431.5 The aggregate intrinsic value of options outstanding, vested and exercisable, were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of September 30, 2019. Prior to the IPO, the fair value of the Company's common stock was determined by the Board of Directors. After the IPO, the fair value of the common stock is the closing stock price of the Company's Class A common stock as reported on the Nasdaq Global Select Market. As part of the 2015 Plan, the Company issued options to certain key management that vest upon the achievement of certain performance milestones. During the three months ended September 30, 2019 and 2018, the Company recorded stock-based compensation expense related to the performance based options of $3.7 million and $0.1 million, respectively. For the three months ended September 30, 2019 and 2018, the weighted-average grant date fair value per option was $12.80 and $4.22, respectively. The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions: Three Months Ended September 30, 2019 2018 Weighted average risk-free interest rate (1) 1.6% 2.9% Weighted average expected term (in years) 6.3 6.3 Weighted average expected volatility (2) 45.0% 45.0% Expected dividend yield — — ____________________________ (1) Based on U.S. Treasury seven-year constant maturity interest rate whose term is consistent with the expected term of the option. (2) Expected volatility is based on an analysis of comparable public company volatilities and adjusted for the Company’s stage of development. With respect to the grants made under the 2015 Plan, the Company recognized stock-based compensation expense of $19.0 million and $3.4 million for the three months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, the Company had $213.1 million of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 3.7 years. During the three months ended September 30, 2019, the holder of a warrant to purchase 240,000 shares of the Company's Class B common stock net exercised the warrant into 238,253 shares of Class B common stock at an exercise price of $0.19 per share. As of September 30, 2019, there were zero warrants issued and outstanding. Employee Stock Purchase Plan In August 2019, the Board of Directors adopted, and in September 2019, the Company's stockholders approved, the ESPP, through which eligible employees may purchase shares of the Company's Class A common stock at a discount through accumulated payroll deductions. The ESPP became effective on the date the registration statement, in connection with the Company’s IPO, was declared effective by the SEC (the "Effective Date"). A total of 5,600,000 shares of the Company's Class A common stock are available for issuance and sale to eligible employees under the ESPP. The number of shares of the Company's Class A common stock that will be available for issuance and sale to eligible employees under the ESPP will increase automatically on the first day of each fiscal year of the Company beginning on July 1, 2020 through 2029, equal to 1% of the total number of outstanding shares of all classes of the Company's common stock on the immediately preceding June 30, or such lesser number as may be determined by the Board of Directors or applicable committee in its sole discretion. Unless otherwise determined by the Board of Directors, each offering period will consist of four six two six

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a provision for income taxes of $0.1 million and zero for the three months ended September 30, 2019 and 2018, respectively. The tax income provision consists of the Texas state franchise tax and international income taxes. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carryback and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years, as a significant piece of negative evidence to overcome.

Loss Per Share

Loss Per Share	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Loss Per Share	The computation of loss per share is as follows: Three Months Ended September 30, 2019 2018 (in millions, except share and per share amounts) Basic loss per share: Net loss attributable to common stockholders $ (49.8) $ (54.5) Shares used in computation: Weighted-average common shares outstanding 38,453,864 24,999,075 Basic and diluted loss per share $ (1.29) $ (2.18) Basic and diluted loss per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three Months Ended September 30, 2019 2018 Employee stock options 38,113,154 9,389,725 Warrants — 231,358 Redeemable convertible preferred stock — 189,147,535

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information The Company applies ASC 280, Segment Reporting , in determining reportable segments for its financial statement disclosure. The Company has three reportable segments: Connected Fitness Products, Subscription and Other. Segment information is presented in the same manner that the Company’s Chief Operating Decision Maker (the “CODM”) reviews the operating results in assessing performance and allocating resources. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of September 30, 2019, the Company did not have material assets located outside of the United States. The Connected Fitness Product segment derives revenue from sale of the Bike, Tread and related accessories, and associated fees for delivery and installation and extended warranty agreements. The Subscription segment derives revenue from monthly Subscription fees as well as credits from live studio classes. The Other segment primarily consists of boutique and apparel sales. There are no internal revenue transactions between the Company’s segments. Key financial performance measures of the segments including revenue, cost of revenue, and gross profit are as follows: Three Months Ended September 30, 2019 2018 (in millions) Connected Fitness Products: Revenue $ 157.6 $ 77.9 Cost of revenue 89.8 42.2 Gross profit $ 67.8 $ 35.7 Subscription: Revenue $ 67.2 $ 31.7 Cost of revenue 29.5 16.3 Gross profit $ 37.7 $ 15.4 Other: Revenue $ 3.3 $ 2.5 Cost of revenue 3.6 2.1 Gross profit $ (0.4) $ 0.4 Consolidated: Revenue $ 228.0 $ 112.1 Cost of revenue 122.9 60.6 Gross profit $ 105.1 $ 51.5 Reconciliation of Gross Profit Operating expenditures, interest (income) and other expense, and taxes are not allocated to individual segments as these are managed on an entity wide group basis. The reconciliation between reportable segment gross profit to consolidated loss before tax is as follows: Three Months Ended September 30, 2019 2018 (in millions) Segment Gross Profit $ 105.1 $ 51.5 Sales and marketing (77.6) (45.5) General and administrative (60.9) (50.0) Research and development (17.4) (11.6) Total other income (expense), net 1.2 1.0 Loss before provision for income taxes $ (49.7) $ (54.5)

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Tonic Fitness Technology Acquisition On October 16, 2019, the Company acquired Tonic Fitness Technology, Inc. (“Tonic”), a manufacturing company located in Taiwan, for a purchase price of approximately $47.4 million, net of cash acquired, which was paid in cash. Upon completion of the transaction, Tonic became a wholly-owned subsidiary of the Company. The Company acquired Tonic in order to have more control over its supply chain and to help the Company scale its production. The acquisition will be accounted for under the acquisition method. The Company is still in the process of identifying and allocating fair values to the tangible and intangible assets and liabilities acquired.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the final prospectus dated September 25, 2019 and filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, (the "Securities Act"), on September 26, 2019 (the "Prospectus"). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.
Consolidation	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of June 30, 2019, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.
Use of Estimates	The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to income taxes, the realizability of inventory, stock-based compensation, contingencies, revenue related reserves, content costs for past use reserve, fair value measurements, the incremental borrowing rate associated with lease liabilities, useful lives of property and equipment as well as intangible assets, and impairment of goodwill, intangible and long-lived assets. The Company bases its estimates on historical experience, market conditions, and on various other assumptions that are believed to be reasonable. Actual results may differ from these estimates.
Stock-Based Compensation	In August 2019, the Board of Directors adopted the 2019 Employee Stock Purchase Plan ("ESPP"), which was subsequently approved by the Company’s stockholders in September 2019. The Company recognizes stock-based compensation expenses related to shares issued pursuant to its ESPP on a straight-line basis over the offering period, which is twenty-four
Recently Issued Accounting Pronouncements	Accounting Pronouncements Recently Adopted ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases, which introduced and codified new lease accounting guidance under ASC 842. ASU 2016-02 requires a lessee to separate the lease components from the non-lease components in a contract and recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted this ASU and related amendments as of July 1, 2019 under the modified retrospective approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients and, as permitted, the Company did not assess whether existing contracts are or contain leases, the lease classification for any existing leases, and identification of initial direct costs for any existing leases. Adoption of the new standard resulted in the recognition of right-of-use assets and operating lease liabilities on the Company's consolidated balance sheet. In addition, the Company de-recognized a build-to-suit arrangement in accordance with the transition requirements, which resulted in an adjustment to retained earnings. The standard did not materially impact the Company's consolidated statements of operations. See Note 7 for further discussion of the Company's accounting for leases under ASC 842. ASU 2018-07 In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation
Revenue	The Company’s primary source of revenue is from sales of its Connected Fitness Products and associated recurring subscription revenue. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue is recognized when control of the promised goods or services are transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company's revenue is reported net of sales returns and discounts. The Company estimates its liability for product returns based on historical return trends by product category, impact of seasonality, and an evaluation of current economic and market conditions and records the expected customer refund liability as a reduction to revenue, and the expected inventory right of recovery as a reduction of cost of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur. Some of the Company’s contracts with customers contain multiple performance obligations. For customer contracts that include multiple performance obligations, the Company accounts for individual performance obligations if they are distinct. The transaction price is then allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling price based on prices charged to customers. Connected Fitness Products Connected Fitness Products include the Company’s Bike and Tread, related accessories, associated fees for delivery and installation, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts when the product has been delivered to the customer. The Company generally allows customers to return products within thirty days of purchase, as stated in its return policy. The Company records fees paid to third-party financing partners in connection with its consumer financing program as a reduction of revenue, as it considers such costs to be a customer sales incentive. The Company records payment processing fees for its credit card sales for Connected Fitness Products within selling and marketing expenses. Subscription The Company’s subscriptions provide unlimited access to content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month basis. Historically, the Company offered a prepaid subscription option where Subscribers earned one free month or three free months of subscription with the purchase of a 12-month subscription or 24-month subscription, respectively. The Company also offered Subscribers the ability to finance the prepaid subscription with the purchase of a Connected Fitness Product as part of its financing program. The associated financing fees were paid to the Company’s third-party partner at the outset of the arrangement and are recorded as a reduction to subscription revenue. The Company terminated both programs in July 2018. Amounts paid for subscription fees are included within customer deposits and deferred revenue and recognized ratably on a month-to-month basis. The Company records payment processing fees for its monthly subscription charges within cost of revenue. The Company generates a small portion of its revenue from the sale of studio credits to attend and participate in a live, instructor-led class at its New York City studios. Studio revenue is recognized at the time the credits are used. Product Warranty The Company offers a standard product warranty that its Connected Fitness Products will operate under normal, non-commercial use for a period of one-year from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs is recorded as a component of cost of revenue. Factors that affect the warranty obligation include historical as well as current product failure rates, service delivery costs incurred in correcting product failures, and warranty policies. The Company’s products are manufactured by contract manufacturers, and in certain cases, the Company may have recourse to such contract manufacturers. The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 12 to 27 months. Revenue and related fees paid to the third-party provider are recognized on a gross basis as the Company has a continuing obligation to perform over the service period. Extended warranty revenue is recognized ratably over the extended warranty coverage period and is included in Connected Fitness Product revenue in the consolidated statement of operations.
Customer Deposits and Deferred Revenue	Deferred revenue is recorded for nonrefundable cash payments received for the Company’s performance obligation to transfer, or stand ready to transfer, goods or services in the future. Deferred revenue consists of subscription fees billed that have not been recognized. Customer deposits represent payments received in advance before the Company transfers a good or service to the customer and are refundable.
Leases	Right-of-use assets and lease liabilities are established on the unaudited condensed consolidated balance sheets for leases with an expected term greater than one year. As the rate implicit in the lease is not determinable, the Company uses its secured incremental borrowing rate to determine the present value of the lease payments. Leases with an initial term of 12 months or less are not recorded on the unaudited condensed consolidated balance sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has elected to not separate lease and non-lease components. The Company's lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The operating lease arrangements included in the measurement of lease liabilities do not reflect options to extend or terminate, as management does not consider the exercise of these options to be reasonably certain. Variable lease payments include, but are not limited to, percentage of sales, common area charges, taxes paid by the landlord that are charged to the Company, and changes to the consumer price index. Variable lease payments are expensed as incurred.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The Company's revenue disaggregated by geographic region, based on ship-to address, were as follows: Three Months Ended September 30, 2019 2018 (in millions) North America (1) $ 221.7 $ 112.1 United Kingdom 6.3 0.1 Total revenue $ 228.0 $ 112.1 _________________________ (1) Consists of United States and Canada

Investments in Marketable Sec_2

Investments in Marketable Securities (Tables)	3 Months Ended
	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of Investments in Marketable Securities	The following table summarizes the Company's investments in marketable securities: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Commercial paper $ 55.9 $ — $ — $ 55.9 Corporate bonds 51.1 0.1 — 51.2 U.S. treasury securities 29.7 0.1 — 29.8 Certificates of deposit 4.6 — — 4.6 Total marketable securities (1) $ 141.3 $ 0.2 $ — $ 141.5 _________________________ (1) Includes $41.1 million included within cash and cash equivalents.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Summary of Assets Measured at Fair Value on a Recurring Basis	The following table summarizes the Company's assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy: As of September 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents (1) : (in millions) Commercial paper $ 41.1 $ — $ — $ 41.1 Marketable securities: Corporate bonds 51.2 — — 51.2 U.S. treasury securities 29.8 — — 29.8 Commercial paper 14.9 — — 14.9 Certificates of deposit 4.6 — — 4.6 Other: Cost-method investments — — 0.6 0.6 Total assets $ 141.5 $ — $ 0.6 $ 142.1 _________________________

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories were as follows: September 30, June 30, (in millions) Raw materials $ 2.2 $ — Finished products 216.6 152.0 Total inventories 218.7 152.0 Less: Reserves (13.1) (15.4) Total inventories, net $ 205.6 $ 136.6

Leases (Tables)

Leases (Tables)	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Schedule of Maturities of Lease Liabilities for Operating Leases	As of September 30, 2019, the total remaining lease payments included in the measurement of lease liabilities for operating leases were as follows: Fiscal Year Ending June 30, (in millions) The remainder of 2020 $ 1.3 2021 54.3 2022 62.0 2023 62.4 2024 60.0 Thereafter 563.0 Total $ 802.9
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: Three Months Ended September 30, 2019 Reconciliation of Lease Liabilities (dollars in millions) Weighted-average remaining lease term (years) 13.4 Weighted-average discount rate 5.84 % Total Undiscounted Lease Liability $ 802.9 Less: Imputed interest (289.4) Total Discounted Lease Liability $ 513.5 Current portion of lease liability $ 29.7 Non-current portion of lease liability $ 483.8
Schedule of Supplemental Cash Flow and Other Information Related to Leases	Supplemental cash flow and other information related to leases was as follows: Three Months Ended September 30, 2019 Cash Paid For Amounts Included In Measurement of Liabilities (in millions) Operating cash flows from operating leases $ 8.3 Right-of-use assets obtained in exchange for new operating lease liabilities (non-cash) $ 307.0

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	The following summary sets forth the stock option activity under the 2019 Plan: Options Outstanding Number of Stock Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in millions) Outstanding — June 30, 2019 64,602,124 $ 6.71 8.6 $ 972.0 Granted 1,114,900 $ 24.56 Exercised (638,614) $ 3.41 Cancelled (802,448) $ 9.45 Outstanding — September 30, 2019 64,275,962 $ 7.02 8.4 $ 1,164.2 Vested and Exercisable— September 30, 2019 19,525,770 $ 3.00 7.4 $ 431.5
Schedule of Fair Value Assumptions	The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions: Three Months Ended September 30, 2019 2018 Weighted average risk-free interest rate (1) 1.6% 2.9% Weighted average expected term (in years) 6.3 6.3 Weighted average expected volatility (2) 45.0% 45.0% Expected dividend yield — — ____________________________ (1) Based on U.S. Treasury seven-year constant maturity interest rate whose term is consistent with the expected term of the option. (2) Expected volatility is based on an analysis of comparable public company volatilities and adjusted for the Company’s stage of development.

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of Computation of Loss Per Share	The computation of loss per share is as follows: Three Months Ended September 30, 2019 2018 (in millions, except share and per share amounts) Basic loss per share: Net loss attributable to common stockholders $ (49.8) $ (54.5) Shares used in computation: Weighted-average common shares outstanding 38,453,864 24,999,075 Basic and diluted loss per share $ (1.29) $ (2.18)
Schedule of Potentially Diluted Securities Not Included in Calculation of Diluted Shares Outstanding	The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three Months Ended September 30, 2019 2018 Employee stock options 38,113,154 9,389,725 Warrants — 231,358 Redeemable convertible preferred stock — 189,147,535

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of Key Performance Measures by Segment	Key financial performance measures of the segments including revenue, cost of revenue, and gross profit are as follows: Three Months Ended September 30, 2019 2018 (in millions) Connected Fitness Products: Revenue $ 157.6 $ 77.9 Cost of revenue 89.8 42.2 Gross profit $ 67.8 $ 35.7 Subscription: Revenue $ 67.2 $ 31.7 Cost of revenue 29.5 16.3 Gross profit $ 37.7 $ 15.4 Other: Revenue $ 3.3 $ 2.5 Cost of revenue 3.6 2.1 Gross profit $ (0.4) $ 0.4 Consolidated: Revenue $ 228.0 $ 112.1 Cost of revenue 122.9 60.6 Gross profit $ 105.1 $ 51.5
Reconciliation of Segment Gross Profit to Consolidated Loss Before Tax	The reconciliation between reportable segment gross profit to consolidated loss before tax is as follows: Three Months Ended September 30, 2019 2018 (in millions) Segment Gross Profit $ 105.1 $ 51.5 Sales and marketing (77.6) (45.5) General and administrative (60.9) (50.0) Research and development (17.4) (11.6) Total other income (expense), net 1.2 1.0 Loss before provision for income taxes $ (49.7) $ (54.5)

Description of Business and B_2

Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2019USD ($)segment$ / sharesshares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments | segment		3
Class of Stock [Line Items]
Offering costs | $		$ 6.3
Common Stock
Class of Stock [Line Items]
Stock converted (in shares)	25,301,604
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)		210,640,629
Class B Common Stock | Common Stock
Class of Stock [Line Items]
Shares issued after conversion (in shares)	25,301,604
Conversion of redeemable convertible preferred stock to common stock (in shares)		210,640,629
Initial Public Offering
Class of Stock [Line Items]
Aggregate proceeds received from initial public offering, net of underwriters' discounts and commissions | $	$ 1,200
Offering costs | $	$ 6.3
Initial Public Offering | Class A Common Stock
Class of Stock [Line Items]
Shares issued in initial public offering (in shares)	43,448,275
Price per share in initial public offering (in dollars per share) | $ / shares	$ 29	$ 29

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - Employee Stock - 2019 Employee Stock Purchase Plan	3 Months Ended
	Sep. 30, 2019
Class of Stock [Line Items]
Employee stock purchase plan, offering period	24 months
Purchase of common stock, employee discount percentage	15.00%

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Customer deposits	$ 88.6	$ 81.3
Deferred revenue	10.6	$ 9.5
Revenue recognized that was previously included in deferred revenue	$ 9.5
Minimum
Disaggregation of Revenue [Line Items]
Extended product warranty period	12 months
Maximum
Disaggregation of Revenue [Line Items]
Extended product warranty period	27 months

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 228	$ 112.1
North America
Disaggregation of Revenue [Line Items]
Total revenue	221.7	112.1
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenue	$ 6.3	$ 0.1

Investments in Marketable Sec_3

Investments in Marketable Securities - Schedule of Investments in Marketable Securities (Details) $ in Millions	Sep. 30, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 141.3
Gross Unrealized Gains	0.2
Gross Unrealized Losses	0
Fair Value	141.5
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	55.9
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	55.9
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	51.1
Gross Unrealized Gains	0.1
Gross Unrealized Losses	0
Fair Value	51.2
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	29.7
Gross Unrealized Gains	0.1
Gross Unrealized Losses	0
Fair Value	29.8
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4.6
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	4.6
Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 41.1

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Millions	Sep. 30, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	$ 141.5
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	51.2
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	29.8
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	4.6
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost-method investments	0.6
Total assets	142.1
Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	51.2
Recurring | U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	29.8
Recurring | Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	14.9
Recurring | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	4.6
Recurring | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	41.1
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost-method investments	0
Total assets	141.5
Recurring | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	51.2
Recurring | Level 1 | U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	29.8
Recurring | Level 1 | Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	14.9
Recurring | Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	4.6
Recurring | Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	41.1
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost-method investments	0
Total assets	0
Recurring | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 2 | U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 2 | Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost-method investments	0.6
Total assets	0.6
Recurring | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 3 | U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 3 | Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	0
Recurring | Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 2.2	$ 0
Finished products	216.6	152
Total inventories	218.7	152
Less: Reserves	(13.1)	(15.4)
Total inventories, net	$ 205.6	$ 136.6

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities for Operating Leases (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
The remainder of 2020	$ 1.3
2021	54.3
2022	62
2023	62.4
2024	60
Thereafter	563
Total	$ 802.9

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Balance Sheet Information (Details) $ in Millions	Sep. 30, 2019USD ($)
Leases [Abstract]
Weighted-average remaining lease term	13 years 4 months 24 days
Weighted-average discount rate	5.84%
Total	$ 802.9
Less: Imputed interest	(289.4)
Total Discounted Lease Liability	513.5
Current portion of lease liability	29.7
Non-current portion of lease liability	$ 483.8

Leases - Schedule of Suppleme_2

Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Leases [Abstract]
Operating cash flows from operating leases	$ 8.3
Right-of-use assets obtained in exchange for new operating lease liabilities (non-cash)	307
Operating lease obligations related to leases that have not yet commenced	4.6
Operating lease expense	16.8
Variable lease expense	$ 1.7
Rent expense		$ 5.7

Debt and Financing Arrangemen_2

Debt and Financing Arrangements (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Line of Credit Facility [Line Items]
Standby letters of credit outstanding		$ 43,000,000
Revolving Credit Facility | Line of Credit | Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 250,000,000
Commitment fee percentage	0.375%
Commitment fees incurred		200,000	$ 100,000
Debt issuance costs	$ 900,000
Covenant, minimum level of liquidity required		125,000,000
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | Minimum
Line of Credit Facility [Line Items]
Covenant, minimum level of revenue required		725,000,000
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Covenant, minimum level of revenue required		$ 1,985,000,000
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Letter of Credit | Line of Credit | Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity (or less)	$ 150,000,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 27, 2019	Sep. 30, 2019	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Content costs for past use		$ 0.9	$ 2.9
Normal and recurring royalty expense		1.6	$ 0.8
Content and royalty reserve		20.8
Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc. | Pending Litigation | Copyright Infringement
Loss Contingencies [Line Items]
Estimate of potential damages and attorney fees	$ 300
Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc. | Pending Litigation | Copyright Infringement | Minimum
Loss Contingencies [Line Items]
Accrual for potential loss		4
Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc. | Pending Litigation | Copyright Infringement | Maximum
Loss Contingencies [Line Items]
Accrual for potential loss		$ 11

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Details)	3 Months Ended
	Sep. 30, 2019vote$ / sharesshares	Jun. 30, 2019$ / sharesshares
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.000025
Preferred stock, shares authorized (in shares)	50,000,000
Preferred stock, shares outstanding (in shares)	0
Conversion of stock period	10 years
Percentage of common stock held	66.67%
Percentage of common class B shares outstanding to total common shares outstanding (at least)	1.00%
Common stock, par value (in dollars per share) | $ / shares		$ 0.000025
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629
Class B Common Stock
Class of Stock [Line Items]
Common stock, number of votes per share | vote	20
Common stock, shares authorized (in shares)	2,500,000,000	400,000,000
Common stock, shares outstanding (in shares)	236,819,100	25,301,604
Class B Common Stock | Common Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629
Class A Common Stock
Class of Stock [Line Items]
Common stock, number of votes per share | vote	1
Common stock, shares authorized (in shares)	2,500,000,000	0
Common stock, shares outstanding (in shares)	43,448,475	0

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Sep. 30, 2019USD ($)period$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)$ / shares
Class of Stock [Line Items]
Weighted-average grant date fair value per option (in dollars per share) | $ / shares		$ 12.80	$ 4.22
Number of vested warrants (in shares)	240,000	240,000
Number of warrants issued (in shares)	0	0
Number of warrants issued (in shares)	0	0
2015 Stock Plan
Class of Stock [Line Items]
Stock-based compensation expense | $		$ 19	$ 3.4
Unrecognized stock-based compensation expense | $	$ 213.1	$ 213.1
Unrecognized stock-based compensation expense, period for recognition		3 years 8 months 12 days
Employee Stock Options | 2015 Stock Plan
Class of Stock [Line Items]
Expiration period		10 years
Vesting period		4 years
Employee Stock Options | 2015 Stock Plan | Vesting Upon the 12-Month Anniversary
Class of Stock [Line Items]
Vesting percentage		25.00%
Employee Stock Options | 2015 Stock Plan | Vesting Monthly Over The Following 36 Months
Class of Stock [Line Items]
Vesting percentage		75.00%
Performance Based Options | 2015 Stock Plan
Class of Stock [Line Items]
Stock-based compensation expense | $		$ 3.7	$ 0.1
Employee Stock | 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of purchase periods | period	4
Purchase period	6 months
Commencement of offering period		2 years
Commencement of purchase period		6 months
Common Stock | Employee Stock Options | 2015 Stock Plan
Class of Stock [Line Items]
Exercise price of common stock, percentage of fair market value		100.00%
Class A Common Stock | 2019 Equity Incentive Plan
Class of Stock [Line Items]
Number of shares available for future issuance (in shares)	49,809,576	49,809,576
Increase in number of shares authorized, as a percentage of total common stock outstanding	5.00%
Class A Common Stock | Employee Stock | 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of shares available for future issuance (in shares)	5,600,000	5,600,000
Increase in number of shares authorized, as a percentage of total common stock outstanding	1.00%
Purchase price of common stock, percentage of fair market value	85.00%
Class B Common Stock
Class of Stock [Line Items]
Number of shares exercised from warrants (in shares)		238,253
Exercise price of warrants (in dollars per share) | $ / shares	$ 0.19	$ 0.19

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Number of Stock Options
Stock options outstanding, beginning balance (in shares)	64,602,124
Granted (in shares)	1,114,900
Exercised (in shares)	(638,614)
Cancelled (in shares)	(802,448)
Stock options outstanding, ending balance (in shares)	(64,275,962)	(64,602,124)
Stock options vested and exercisable (in shares)	19,525,770
Weighted-Average Exercise Price
Stock options outstanding, weighted average exercise price, beginning balance (in shares)	$ 6.71
Granted, weighted-average exercise price (in dollars per share)	24.56
Exercised, weighted-average exercise price (in dollars per share)	3.41
Cancelled, weighted-average exercise price (in dollars per share)	9.45
Stock options outstanding, weighted average exercise price, ending balance (in shares)	7.02	$ 6.71
Stock options vested and exercisable, weighted-average exercise price (in dollars per share)	$ 3
Stock options outstanding, weighted-average remaining contractual term	8 years 4 months 24 days	8 years 7 months 6 days
Stock options vested and exercisable, weighted-average remaining contractual term	7 years 4 months 24 days
Stock options outstanding, aggregate intrinsic value	$ 1,164.2	$ 972
Stock options vested and exercisable, aggregate intrinsic value	$ 431.5

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Fair Value Assumptions (Details) - Employee stock options	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average risk-free interest rate	1.60%	2.90%
Weighted average expected term	6 years 3 months 18 days	6 years 3 months 18 days
Weighted average expected volatility	45.00%	45.00%
Expected dividend yield	0.00%	0.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 100,000	$ 0

Loss Per Share - Schedule of Co

Loss Per Share - Schedule of Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Basic loss per share:
Net loss attributable to common stockholders	$ (49.8)	$ (54.5)
Shares used in computation:
Weighted-average common shares outstanding (in shares)	38,453,864	24,999,075
Basic and diluted loss per share (in dollars per share)	$ (1.29)	$ (2.18)

Loss Per Share - Schedule of Po

Loss Per Share - Schedule of Potentially Diluted Securities Not Included In Calculation of Diluted Shares Outstanding (Details) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	38,113,154	9,389,725
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	0	231,358
Redeemable Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	0	189,147,535

Segment Information - Schedule

Segment Information - Schedule of Key Performance Measures by Segment (Details) $ in Millions	3 Months Ended
	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Segment Reporting Information [Line Items]
Revenue	$ 228	$ 112.1
Cost of revenue	122.9	60.6
Gross profit	105.1	51.5
Connected Fitness Products
Segment Reporting Information [Line Items]
Revenue	157.6	77.9
Cost of revenue	89.8	42.2
Gross profit	67.8	35.7
Subscription
Segment Reporting Information [Line Items]
Revenue	67.2	31.7
Cost of revenue	29.5	16.3
Gross profit	37.7	15.4
Other
Segment Reporting Information [Line Items]
Revenue	3.3	2.5
Cost of revenue	3.6	2.1
Gross profit	$ (0.4)	$ 0.4

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Gross Profit	$ 105.1	$ 51.5
Sales and marketing expense	(77.6)	(45.5)
General and administrative expense	(60.9)	(50)
Research and development	(17.4)	(11.6)
Total other income (expense), net	1.2	1
Loss before provision for income taxes	$ (49.7)	$ (54.5)

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Oct. 16, 2019USD ($)
Tonic Fitness Technology, Inc. | Subsequent Event
Business Acquisition [Line Items]
Purchase price, net of cash acquired	$ 47.4

Uncategorized Items - pton-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 7,200,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 7,200,000