Peloton Interactive (PTON) 10-Q 2 Nov 23 2024 Q1 Quarterly report Financial data

COVER

COVER - shares	3 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	441 Ninth Avenue, Sixth Floor
Entity Address, Postal Zip Code	10001
Entity Address, City or Town	New York
Entity Address, State or Province	NY
City Area Code	929
Local Phone Number	567-0006
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	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)	Q1
Amendment Flag	false
CIK	0001639825
Fiscal Year End Date	--06-30
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		342,433,897
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		18,016,072

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 748.5	$ 813.9
Accounts receivable, net	99.8	97.2
Inventories, net	514.6	522.6
Prepaid expenses and other current assets	224.5	205.4
Total current assets	1,587.5	1,639.1
Property and equipment, net	420.3	444.8
Intangible assets, net	22.8	25.6
Goodwill	41.2	41.2
Restricted cash	61.4	71.6
Operating lease right-of-use assets, net	515	524.1
Other assets	24.5	22.7
Total assets	2,672.8	2,769.1
Current liabilities:
Accounts payable and accrued expenses	485.5	478.4
Deferred revenue and customer deposits	173.7	187.3
Current portion of long-term debt and other bank borrowings	7.5	7.5
Operating lease liabilities, current	79.7	83.5
Other current liabilities	3.6	4.6
Total current liabilities	750	761.4
0% Convertible Senior Notes, net	989.1	988
Term loan, net	691.2	690.9
Operating lease liabilities, non-current	585.7	593.8
Other non-current liabilities	27.7	30.1
Total liabilities	3,043.8	3,064.2
Commitments and contingencies (Note 8)
Stockholders’ deficit
Common stock, $0.000025 par value; 2,500,000,000 and 2,500,000,000 Class A shares authorized, 342,407,114 and 338,750,774 shares issued and outstanding as of September 30, 2023 and June 30, 2023, respectively; 2,500,000,000 and 2,500,000,000 Class B shares authorized, 18,016,072 and 18,016,853 shares issued and outstanding as of September 30, 2023 and June 30, 2023, respectively.	0	0
Additional paid-in capital	4,701.4	4,619.8
Accumulated other comprehensive income	18.7	16.8
Accumulated deficit	(5,091)	(4,931.8)
Total stockholders’ deficit	(370.9)	(295.1)
Total liabilities and stockholders' deficit	$ 2,672.8	$ 2,769.1

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Jun. 30, 2023
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)	2,500,000,000	2,500,000,000
Common stock, shares issued (in shares)	342,407,114	338,750,774
Common stock, shares outstanding (in shares)	342,407,114	338,750,774
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)	2,500,000,000	2,500,000,000
Common stock, shares issued (in shares)	18,016,072	18,016,853
Common stock, shares outstanding (in shares)	18,016,072	18,016,853
0% Convertible Senior Notes Due February 15, 2026 | Convertible Debt
Convertible debt, stated interest rate	0%	0%

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Total revenue	$ 595.5	$ 616.5
Total cost of revenue	310.1	399.3
Gross profit	285.4	217.2
Operating expenses:
Sales and marketing	146	138.7
General and administrative	151.1	193.5
Research and development	78.7	88.1
Impairment expense	24	62.9
Restructuring expense	17.8	106.9
Supplier settlements	0	1.1
Total operating expenses	417.6	591.1
Loss from operations	(132.3)	(374)
Other expense, net:
Interest expense	(27.2)	(20.9)
Interest income	8.4	4
Foreign exchange loss	(7.8)	(17)
Other income, net	0.3	0.2
Total other expense, net	(26.2)	(33.7)
Loss before provision for income taxes	(158.5)	(407.7)
Income tax expense	0.8	0.8
Net loss	(159.3)	(408.5)
Net loss attributable to Class A and Class B common stockholders	(159.3)	(408.5)
Net loss attributable to Class A and Class B common stockholders	$ (159.3)	$ (408.5)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.44)	$ (1.20)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.44)	$ (1.20)
Weighted-average Class A and Class B common shares outstanding, basic (in shares)	358,547,563	339,011,157
Weighted-average Class A and Class B common shares outstanding, diluted (in shares)	358,547,563	339,011,157
Other comprehensive income:
Change in foreign currency translation adjustment	$ 1.9	$ 5.3
Derivative adjustments:
Reclassification for derivative adjustments included in Net loss	0	(0.5)
Total other comprehensive income	1.9	4.8
Comprehensive loss	(157.4)	(403.6)
Connected Fitness Products
Total revenue	180.6	204.2
Total cost of revenue	174.9	259.8
Subscription
Total revenue	415	412.3
Total cost of revenue	$ 135.2	$ 139.5

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net loss	$ (159.3)	$ (408.5)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	30.8	29
Stock-based compensation expense	74.2	182.1
Non-cash operating lease expense	16.8	22.1
Amortization of debt discount and issuance costs	3.5	3.2
Impairment expense	24	62.9
Net foreign currency adjustments	7.8	17.2
Changes in operating assets and liabilities:
Accounts receivable	(3)	1.3
Inventories	(1.4)	106
Prepaid expenses and other current assets	(31.7)	(11.8)
Other assets	(2)	2.7
Accounts payable and accrued expenses	0.7	(178.7)
Deferred revenue and customer deposits	(13.4)	(3.6)
Operating lease liabilities, net	(23.9)	(16.8)
Other liabilities	(2.3)	(9.9)
Net cash used in operating activities	(79.2)	(202.8)
Cash Flows from Investing Activities:
Capital expenditures and capitalized internal-use software development costs	(4.1)	(43.6)
Net cash used in investing activities	(4.1)	(43.6)
Cash Flows from Financing Activities:
Principal repayment of Term Loan	(1.9)	(1.9)
Proceeds, net from employee stock purchase plan withholdings	(0.2)
Proceeds, net from employee stock purchase plan withholdings		0.3
Proceeds from employee stock plans	10.7	4.1
Principal repayments of finance leases	(0.4)	(0.5)
Net cash provided by financing activities	8.2	2.1
Effect of exchange rate changes	(0.5)	3.2
Net change in cash, cash equivalents, and restricted cash	(75.5)	(241)
Cash, cash equivalents, and restricted cash — Beginning of period	885.5	1,257.6
Cash, cash equivalents, and restricted cash — End of period	809.9	1,016.6
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	23.5	16.8
Cash paid for income taxes	1.2	2.6
Supplemental Disclosures of Non-Cash Investing and Financing Information:
Accrued and unpaid capital expenditures, including software	1.1	5.4
Stock-based compensation capitalized for software development costs	$ 0	$ 2.9

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock Class A and Class B Common Stock	Additional Paid-In Capital	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Jun. 30, 2022			338.3
Beginning balance at Jun. 30, 2022	$ 592.9	$ (119.6)	$ 0	$ 4,291.3	$ (160.1)	$ 12.2	$ (3,710.6)	$ 40.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activity related to stock-based compensation (in shares)			1.3
Activity related to stock-based compensation	185.4			185.4
Issuance of common stock under employee stock purchase plan (in shares)			0.4
Issuance of common stock under employee stock purchase plan	3.3			3.3
Other comprehensive loss	4.8					4.8
Net loss	(408.5)						(408.5)
Ending balance (in shares) at Sep. 30, 2022			339.8
Ending balance at Sep. 30, 2022	258.5		$ 0	4,320		17.1	(4,078.6)
Beginning balance (in shares) at Jun. 30, 2023			356.8
Beginning balance at Jun. 30, 2023	(295.1)		$ 0	4,619.8		16.8	(4,931.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activity related to stock-based compensation (in shares)			3.3
Activity related to stock-based compensation	79.5			79.5
Issuance of common stock under employee stock purchase plan (in shares)			0.4
Issuance of common stock under employee stock purchase plan	2			2
Other comprehensive loss	1.9					1.9
Net loss	(159.3)						(159.3)
Ending balance (in shares) at Sep. 30, 2023			360.4
Ending balance at Sep. 30, 2023	$ (370.9)		$ 0	$ 4,701.4		$ 18.7	$ (5,091)

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Sep. 30, 2023
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 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 through a paid Connected Fitness Subscription or a paid Peloton App Membership. 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 Members to be the best versions of themselves. Our Connected Fitness Products portfolio includes the Peloton Bike, Bike+, Tread, Tread+, Guide, and Row. Access to the Peloton App is available with an All Access or Guide Membership for Members who have Connected Fitness Products or through a standalone App Membership with multiple Membership tiers. Our revenue is generated primarily from recurring Subscription revenue and the sale of our Connected Fitness Products. We are additionally focused on growing our Paid App subscribers, including through efforts such as our recent branding and App relaunch in May 2023. We define a “Connected Fitness Subscription” as a person, household, or commercial property, such as a hotel or residential building, who has paid for a subscription to a Connected Fitness Product (a Connected Fitness Subscription with a successful credit card billing or with prepaid subscription credits or waivers). 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. The condensed consolidated balance sheet as of June 30, 2023, 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. 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 of the SEC. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the "Form 10-K"). 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. 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, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending June 30, 2024, 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. Certain immaterial amounts from the prior year have been reclassified to conform with current-year presentation. Except as described elsewhere in Note 2 - Summary of Significant Accounting Policies in the section titled “Recently Issued Accounting Pronouncements,” there have been no material changes to the Company’s significant accounting policies as described in the Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2023
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, expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to revenue related reserves, product recall and corrective action cost, the realizability of inventory, content costs for past use reserve, fair value measurements, the incremental borrowing rate associated with lease liabilities, impairment of long-lived and intangible assets, useful lives of long-lived assets, including property and equipment and finite-lived intangible assets, product warranty, goodwill, accounting for income taxes, stock-based compensation expense, transaction price estimates, the fair values of assets acquired and liabilities assumed in business combinations and asset acquisitions, future restructuring charges, contingent consideration, and commitments and contingencies. Actual results may differ from these estimates. Internal-Use Software The Company incurs development costs related to internal-use software. These software development costs meet the criteria for capitalization once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. The Company evaluates the costs incurred during the application development stage of internal use software and website development to determine whether the costs meet the criteria for capitalization. Costs related to preliminary project activities and post-implementation activities including maintenance are expensed as incurred. Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years. Capitalized costs less accumulated amortization are included within Property and equipment, net on the Consolidated Balance Sheets. Software development costs that do not meet the criteria for capitalization and are expensed as incurred within Research and development in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Recently Adopted Accounting Pronouncements ASU 2021-08 In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers . The Company adopted ASU 2021-08 on July 1, 2023. The standard will be applied to acquisitions occurring on or after the effective date. The impact will depend on the contract assets and liabilities acquired in future business combinations.

Revenue

Revenue	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company’s primary sources of revenue are its recurring content Subscription revenue, and revenue from sales of its Connected Fitness Products, accessories, and branded apparel, as well as Precor branded fitness products, delivery, and installation services. 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 is 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, discounts, incentives, and rebates to commercial distributors as a reduction of the transaction price. Certain contracts include consideration payable that is accounted for as a payment for distinct goods or services. The Company estimates its liability for product returns and concessions based on historical 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 the standalone selling price based on the prices charged to customers. The Company applies the practical expedient as per ASC 606-10-50-14 and does not disclose information related to remaining performance obligations due to their original expected terms being one year or less. The Company expenses sales commissions on its Connected Fitness Products when incurred because the amortization period would have been less than one year. These costs are recorded in Sales and marketing in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Some of the Company’s revenues relate to rental lease arrangements. The Company’s rental program allows Members to lease a Bike or Bike+ with a Peloton Rental Membership for a single monthly cost and a one-time delivery fee, and gives the Member the option to purchase the equipment outright or cancel at any time with no penalty. These lease arrangements include both lease and non-lease components. Consideration is allocated between the lease and non-lease components based on management’s best estimate of the relative standalone selling price of each component. The lease component relates to the customer’s right to use the equipment over the lease term and is accounted for as an operating lease in accordance with ASC 842, Leases . Lease revenue is recognized on a straight-line basis over the life of the lease within Connected Fitness Products revenue, while the underlying equipment subject to the lease remains within Property and equipment, net on the Company’s Consolidated Balance Sheets and depreciates over the equipment’s useful life. Depreciation expense associated with the underlying equipment is reflected in Connected Fitness Products cost of revenue in the Company’s Consolidated Statements of Operations and Comprehensive Loss. Non-lease components are primarily comprised of (1) an All-Access Membership, which is recognized within Subscription revenue, and (2) cycling shoes, which are recognized within Connected Fitness Products revenue, and are accounted for in accordance with ASC 606. Connected Fitness Products Connected Fitness Products include the Company’s portfolio of Connected Fitness Products and related accessories, Precor branded fitness products, delivery and installation services, Peloton branded apparel, extended warranty agreements, and commercial service contracts. The Company recognizes Connected Fitness Products revenue net of sales returns and discounts when the product has been delivered to the customer, except for extended warranty revenue that is recognized over the warranty period and service revenue that is recognized over the term of the service contract. The Company allows customers to return Peloton branded Connected Fitness 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 Sales and marketing in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Subscription The Company’s subscriptions provide access to Peloton content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month or prepaid basis. Amounts paid for subscription fees, net of refunds are included within Deferred revenue and customer deposits on the Company’s Condensed Consolidated Balance Sheets and recognized ratably over the subscription term. The Company records payment processing fees for its monthly subscription charges within cost of Subscription revenue in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Sales tax collected from customers and remitted to governmental authorities is not included in revenue and is reflected as a liability on the Company’s Condensed Consolidated Balance Sheets. 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, covering the touchscreen and most original Bike, Bike+, Tread, Tread+, Row, and Guide components. 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 and business practices. The Company’s products are manufactured by contract manufacturers, and in certain cases, the Company may have recourse to such contract manufacturers. Activity related to the Company’s accrual for our estimated future product warranty obligation was as follows: Three Months Ended September 30, 2023 2022 (in millions) Balance at beginning of period $ 26.4 $ 51.1 Provision for warranty accrual 1.8 (2.9) Warranty claims (7.5) (11.5) Balance at end of period $ 20.7 $ 36.7 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 Products for additional periods ranging from 12 to 36 months. Extended warranty revenue is 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 Condensed Consolidated Statements of Operations and Comprehensive Loss. Disaggregation of Revenue The Company’s revenue disaggregated by segment, excluding sales-based taxes, are included in Note 12 - Segment Information . The Company’s revenue disaggregated by geographic region was as follows: Three Months Ended September 30, 2023 2022 (in millions) North America $ 548.8 $ 566.7 International 46.7 49.9 Total revenue $ 595.5 $ 616.5 During the three months ended September 30, 2023 and 2022, the Company’s revenue attributable to the United States was $528.0 million and $545.1 million, or 89% and 88% of total revenue, respectively. Deferred Revenue and Customer Deposits 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. 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, 2023 and June 30, 2023, deferred revenue of $93.8 million and $98.3 million, respectively, and customer deposits of $80.0 million and $89.0 million, respectively, were included in Deferred revenue and customer deposits on the Company’s Condensed Consolidated Balance Sheets. In the three months ended September 30, 2023 and 2022, the Company recognized revenue of $88.6 million and $88.1 million, respectively, that was included in the deferred revenue balance as of June 30, 2023 and 2022, respectively.

Restructuring

Restructuring	3 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In February 2022, the Company announced and began implementing a restructuring plan to realign the Company’s operational focus to support its multi-year growth, scale the business, and improve costs (the “Restructuring Plan”). The Restructuring Plan originally included: (i) reducing the Company’s headcount; (ii) closing several assembly and manufacturing plants, including the completion and subsequent sale of the shell facility for the Company’s previously planned Peloton Output Park; (iii) closing and consolidating several distribution facilities; and (iv) shifting to third-party logistics providers in certain locations. The Company expects the Restructuring Plan to be substantially implemented by the end of fiscal year 2024. In fiscal year 2023, the Company continued to take actions to implement the Restructuring Plan. In July 2022, the Company announced it was exiting all owned-manufacturing operations and expanding its current relationship with Taiwanese manufacturer, Rexon Industrial Corporation. Additionally, in August 2022, the Company announced the decision to (i) fully transition its North American Field Operations to third-party providers, including the significant reduction of its delivery workforce teams; (ii) eliminate a significant number of roles on the North America Member Support team and exit its real-estate footprints in its Plano and Tempe locations; and (iii) reduce its retail showroom presence. As a result of the Restructuring Plan, the Company incurred the charges shown in the following table, of which Asset write-downs and write-offs are included within Impairment expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The remaining charges incurred due to the Restructuring Plan are included within Restructuring expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Three Months Ended September 30, 2023 2022 Cash restructuring charges: (in millions) Severance and other personnel costs $ 6.1 $ 27.0 Exit and disposal costs and professional fees 4.5 3.1 Total cash charges 10.6 30.1 Non-cash charges: Asset write-downs and write-offs 22.8 62.9 Stock-based compensation expense 7.2 76.8 Write-offs of inventory related to restructuring activities (1) 0.5 — Total non-cash charges 30.5 139.7 Total $ 41.2 $ 169.8 _________________________ (1) Write-offs of inventory are included within Cost of revenue: Connected Fitness Products in the Condensed Consolidated Statement of Operations and Comprehensive Loss. In connection with the Restructuring Plan, the Company committed to the closures of certain warehouse and retail locations, the discontinuation of manufacturing in North America, and the wind down of certain software implementation and development projects. Due to the actions taken pursuant to the Restructuring Plan, the Company tested certain long-lived assets (asset groups) for recoverability by comparing the carrying values of the asset group to estimates of their future undiscounted cash flows, which were generally the liquidation value, or for operating lease right-of-use assets, income from a sublease arrangement. Based on the results of the recoverability tests, the Company determined that during the three months ended September 30, 2023 and 2022, the undiscounted cash flows of certain assets (asset groups) were below their carrying values, indicating impairment. The assets were written down to their estimated fair values, which were determined based on their estimated liquidation or sales value, or for operating lease right-of-use assets, discounted cash flows of a sublease arrangement. The following tables present a roll-forward of cash restructuring-related liabilities, which is included within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets, as follows: Severance and other personnel costs Exit and disposal costs and professional fees Total (in millions) Balance as of June 30, 2022 $ 10.9 $ — $ 10.9 Charges 27.0 3.1 30.1 Cash payments (22.4) (1.5) (23.9) Balance as of September 30, 2022 $ 15.5 $ 1.5 $ 17.1 Balance as of June 30, 2023 $ 13.6 $ 0.3 $ 13.9 Charges 6.1 4.5 10.6 Cash payments (13.8) (4.2) (18.0) Balance as of September 30, 2023 $ 5.9 $ 0.6 $ 6.5 In connection with the Restructuring Plan, the Company estimates that it will incur additional cash charges of approximately $30.0 million, primarily composed of lease termination and other exit costs, by the end of fiscal year 2024. Additionally, the Company expects to recognize additional non-cash charges of approximately $15.0 million during fiscal year 2024, primarily composed of non-inventory asset impairment charges in connection with the Restructuring Plan.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair Value Measurements of Other Financial Instruments The following tables present the estimated fair values of the Company’s financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets: As of September 30, 2023 Level 1 Level 2 Level 3 Total (in millions) 0% Convertible Senior Notes $ — $ 753.1 $ — $ 753.1 As of June 30, 2023 Level 1 Level 2 Level 3 Total (in millions) 0% Convertible Senior Notes $ — $ 759.5 $ — $ 759.5 The fair value of the 0% Convertible Senior Notes due February 15, 2026 (the “Notes”) is determined based on the closing price on the last trading day of the reporting period.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories were as follows: September 30, 2023 June 30, 2023 (in millions) Raw materials $ 48.6 $ 53.2 Finished products (1) 689.8 703.0 Total inventories 738.4 756.2 Less: Reserves (223.8) (233.6) Total inventories, net $ 514.6 $ 522.6 _________________________ (1) Includes $40.8 million and $26.4 million of finished goods inventory in transit, products owned by the Company that have not yet been received at a Company distribution center, as of September 30, 2023 and June 30, 2023, respectively.

Debt

Debt	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt Convertible Notes and the Indenture In February 2021, the Company issued $1.0 billion aggregate principal amount of the Notes in a private offering, including the exercise in full of the over-allotment option granted to the initial purchasers of $125.0 million. The Notes were issued pursuant to an Indenture (the “Indenture”) between the Company and U.S. Bank National Association, as trustee. The Notes are senior unsecured obligations of the Company and do not bear regular interest, and the principal amount of the Notes does not accrete. The net proceeds from this offering were approximately $977.2 million, after deducting the initial purchasers' discounts and commissions and the Company’s offering expenses. Each $1,000 principal amount of the Notes is initially convertible into 4.1800 shares of the Company’s Class A common stock, which is equivalent to an initial conversion price of approximately $239.23 per share. The conversion rate is subject to customary adjustments under certain circumstances in accordance with the terms of the Indenture. In addition, if certain corporate events that constitute a make-whole fundamental change occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. The Notes will mature on February 15, 2026, unless earlier converted, redeemed, or repurchased. The Notes will be convertible at the option of the holders at certain times and upon the occurrence of certain events. On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of the Class A common stock or a combination of cash and shares of the Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. It is the Company’s current intent to settle the principal amount of the Notes with cash. The Company may redeem for cash all or any portion of the Notes, at its option, on or after February 20, 2024 and on or before the 20th scheduled trading day immediately before the maturity date, if the last reported sale price per share of the Class A common stock exceeds 130% of the conversion price then in effect on (1) each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption and (2) the trading day immediately before the date the Company sends such notice at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid special interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that the Company is not required to redeem or retire the Notes periodically. Upon the occurrence of a fundamental change (as defined in the Indenture), subject to certain conditions, holders may require the Company to repurchase all or a portion of the Notes for cash at a price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. The Notes are senior unsecured obligations of the Company and rank senior in right of payment to any of the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively subordinated in right of payment to any of the Company’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness; and structurally subordinated to all existing and future indebtedness and other liabilities of current or future subsidiaries of the Company (including trade payables and to the extent the Company is not a holder thereof, preferred equity, if any, of the Company’s subsidiaries). The net carrying amount of the liability component of the Notes was as follows: September 30, 2023 June 30, 2023 (in millions) Principal $ 1,000.0 $ 1,000.0 Unamortized debt issuance costs (10.9) (12.0) Net carrying amount $ 989.1 $ 988.0 The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, 2023 2022 (in millions) Amortization of debt issuance costs $ 1.1 $ 1.1 Total interest expense related to the Notes $ 1.1 $ 1.1 Capped Call Transactions In connection with the offering of the Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Call Transactions”). The Capped Call Transactions have an initial strike price of approximately $239.23 per share, subject to adjustments, which corresponds to the approximate initial conversion price of the Notes. The cap price of the Capped Call Transactions will initially be approximately $362.48 per share. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, 6.9 million shares of Class A common stock. The Capped Call Transactions are expected generally to reduce potential dilution to the Class A common stock upon any conversion of Notes and/or offset any potential cash payments the Company would be required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. If, however, the market price per share of Class A common stock, as measured under the terms of the Capped Call Transactions, exceeds the cap price of the Capped Call Transactions, there would be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that the then-market price per share of the Class A common stock exceeds the cap price of the Capped Call Transactions. For accounting purposes, the Capped Call Transactions are separate transactions, and are not part of the terms of the Notes. The net cost of $81.3 million incurred to purchase the Capped Call Transactions was recorded as a reduction to Additional paid-in capital on the Company’s Condensed Consolidated Balance Sheets. Second Amended and Restated Credit Agreement In 2019, the Company entered into an amended and restated revolving credit agreement (the “Amended and Restated Credit Agreement”) for a $500.0 million secured revolving credit facility, including up to the lesser of $250.0 million and the aggregate unused amount of the facility for the issuance of letters of credit. The Amended and Restated Credit Agreement also permitted the incurrence of indebtedness, including the Capped Call Transactions and issuance of the Notes. On May 25, 2022, the Company entered into an Amendment and Restatement Agreement providing for a Second Amended and Restated Credit Agreement (as amended, restated, or otherwise modified from time to time, the “Second Amended and Restated Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, and certain banks and financial institutions party thereto as lenders and issuing banks. The Second Amended and Restated Credit Agreement provides for a $750.0 million term loan facility (the “Term Loan”), which will be due and payable on May 25, 2027 or, if greater than $200.0 million of the Notes are outstanding on November 16, 2025 (the “Springing Maturity Condition”), November 16, 2025 (the “Springing Maturity Date”). The Term Loan amortizes in quarterly installments of 0.25%, payable at the end of each fiscal quarter and on the maturity date. The Second Amended and Restated Credit Agreement also provided for a $500.0 million revolving credit facility (the “Revolving Facility”), $35.0 million of which would mature on June 20, 2024 (the “Non-Consenting Commitments”), with the rest ($465.0 million) maturing on December 10, 2026 (the “Consenting Commitments”) or if the Springing Maturity Condition is met and the Term Loan is outstanding on such date, the Springing Maturity Date. On August 24, 2022, the Company amended the Second Amended and Restated Credit Agreement (the “First Amendment”) such that the Company is only required to meet the total liquidity covenant, set at $250.0 million (the “Liquidity Covenant”), and the total revenues covenant, set at $3.0 billion for the four-quarter trailing period, to the extent any revolving loans are borrowed and outstanding. On May 2, 202 3, the Company further amended the Second Amended and Restated Credit Agreement (the “Second Amendment”) to, among other things, (i) reduce the aggregate revolving credit commitments from $500.0 million to $400.0 million, with the Non-Consenting Commitments reduced to $28.0 million and the Consenting Commitments reduced to $372.0 million, and (ii) remove the covenant requiring the Company to maintain a minimum total four-quarter revenue level of $3.0 billion at any time when revolving loans are outstanding. Following the Second Amendment, borrowings under the Revolving Facility are limited to the lesser of (a) $400.0 million and (b) an amount equal to the “Subscription” revenue of the Company and its subsidiaries for the most recently completed fiscal quarter of the Company. The Liquidity Covenant will still be replaced with a covenant to maintain a minimum secured debt to adjusted EBITDA ratio upon our meeting a specified adjusted EBITDA threshold. The Revolving Facility bears interest at a rate equal to, at our option, either at the Adjusted Term SOFR Rate (as defined in the Second Amended and Restated Credit Agreement) plus 2.25% per annum or the Alternate Base Rate (as defined in the Second Amended and Restated Credit Agreement) plus 1.25% per annum for the Consenting Commitments, and bears interest at a rate equal to, at our option, either at the Adjusted Term SOFR Rate plus 2.75% per annum or the Alternate Base Rate plus 1.75% per annum for the Non-Consenting Commitments. The Company is required to pay an annual commitment fee of 0.325% per annum and 0.375% per annum on a quarterly basis based on the unused portion of the Revolving Facility for the Consenting Commitments and the Non-Consenting Commitments, respectively. The Term Loan bears interest at a rate equal to, at our option, either at the Alternate Base Rate (as defined in the Second Amended and Restated Credit Agreement) plus 5.50% per annum or the Adjusted Term SOFR Rate (as defined in the Second Amended and Restated Credit Agreement) plus 6.50% per annum. As stipulated in the Second Amended and Restated Credit Agreement, the applicable rates applicable to the Term Loan increased one time by 0.50% per annum as the Company chose not to obtain a public rating for the Term Loan from S&P Global Ratings or Moody’s Investors Services, Inc. on or prior to November 25, 2022. Any borrowing at the Alternate Base Rate is subject to a 1.00% floor and a term loan borrowed at the Adjusted Term SOFR Rate is subject to a 0.50% floor and any revolving loan borrowed at the Adjusted Term SOFR Rate is subject to a 0.00% floor. The Second Amended and Restated Credit Agreement contains customary affirmative covenants as well as customary covenants that restrict our ability to, among other things, incur additional indebtedness, sell certain assets, guarantee obligations of third parties, declare dividends or make certain distributions, and undergo a merger or consolidation or certain other transactions. The Second Amended and Restated Credit Agreement also contains certain customary events of default. Certain baskets and covenant levels have been decreased and will apply equally to both the Term Loan and Revolving Facility for so long as the Term Loan is outstanding. After the repayment in full of the Term Loan, such baskets and levels will revert to those previously disclosed in connection with the Amended and Restated Credit Agreement. The obligations under the Second Amended and Restated Credit Agreement with respect to the Term Loan and the Revolving Facility are secured by substantially all of our assets, with certain exceptions set forth in the Second Amended and Restated Credit Agreement, and are required to be guaranteed by certain material subsidiaries of the Company if, at the end of future financial quarters, certain conditions are not met. In connection with the execution of the Second Amended and Restated Credit Agreement, the Company incurred debt issuance costs of $1.1 million, which are capitalized and presented as Other assets on the Company’s Condensed Consolidated Balance Sheets. These costs are being amortized to interest expense using the effective interest method over the term of the Second Amended and Restated Credit Agreement. During the three months ended September 30, 2023 and 2022, the Company incurred total commitment fees of $0.3 million and $0.4 million, respectively, which are included in Interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. As of September 30, 2023, the Company had drawn the full amount of the Term Loan and had $740.6 million of total outstanding borrowings under the Second Amended and Restated Credit Agreement. As of September 30, 2023, the Company had not drawn any amount under the Revolving Facility and as such did not have to test the financial covenants under the Second Amended and Restated Credit Agreement. The Company is required to pledge or otherwise restrict a portion of cash and cash equivalents as collateral for standby letters of credit. As of September 30, 2023, the Company had outstanding letters of credit totaling $60.0 million, which are classified as Restricted cash on the Condensed Consolidated Balance Sheet. Our proceeds in connection with the Term Loan were $696.4 million, net of discount of $33.8 million and issuance costs of $19.8 million. Both the discount and issuance costs are being amortized to interest expense over the term of the Term Loan using the effective interest rate method. Upon entering into the Term Loan, the effective interest rate was 10.2%. On each of November 25, 2022 and May 25, 2023 the rate was updated to 13.7% and 14.3%, respectively. The current effective interest rate on the Term Loan is 14.3% as of September 30, 2023. The net carrying amount of the Term Loan was as follows: September 30, 2023 June 30, 2023 (in millions) Principal $ 750.0 $ 750.0 Principal payments (9.4) (7.5) Unamortized debt discount (26.4) (27.8) Unamortized debt issuance costs (15.5) (16.3) Net carrying amount $ 698.7 $ 698.4 The following table sets forth the interest expense recognized related to the Term Loan: Three Months Ended September 30, 2023 2022 (in millions) Amortization of debt discount $ 1.4 $ 1.4 Amortization of debt issuance costs 0.8 0.8 Total interest expense related to the Term Loan $ 2.2 $ 2.2

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is subject to minimum guarantee royalty payments associated under certain music license agreements. The following represents the Company's minimum annual guarantee payments under music license agreements for the next three years as of September 30, 2023 : Future Minimum Payments Fiscal Year (in millions) 2024 (remaining) $ 84.1 2025 48.8 2026 5.0 Total $ 138.0 Tread+ Product Recall Return Reserves and Cost Estimates On May 5, 2021, the Company announced a voluntary recall of its Tread+ in collaboration with the U.S. Consumer Product Safety Commission (" CPSC") and halted sales of this product to work on product enhancements . On May 18, 2023, the Company and the CPSC jointly announced the approval of a rear guard repair for the recalled Tread+. The following table details the (benefit)/reduction to Connected Fitness Products revenue for actual and future returns and costs associated with the Tread+ product recall that were recorded in Connected Fitness Products cost of revenue. Three Months Ended September 30, 2023 2022 (in millions) Returns accrual for (benefit)/reduction to Connected Fitness Products revenue $ (1.6) $ 26.5 Costs of product recalls (0.1) 2.5 Return reserves related to the impacts of the Tread+ recall of $17.6 million and $57.9 million were included within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets as of September 30, 2023 and 2022, respectively. Accruals for costs associated with the Tread+ repair of $10.0 million were included within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheet as of September 30, 2023. The estimated return reserves are based on historical and expected product returns. The estimated costs associated with the Tread+ repair are primarily based on the estimated number of requests for the Tread+ repair and the estimated costs of the production, delivery, and installation of the remedy. Bike Seat Post Recall On May 11, 2023, in collaboration with the CPSC, the Company announced a voluntary recall of the original Peloton Bike (not Bike+) sold in the U.S. from January 2018 to May 2023 related to its seat post, and the Company is offering Members a free replacement seat post as the approved repair. As of September 30, 2023, accrual s of $8.7 million were included within Accounts payable and accrued expenses in the accompanying Condensed Consolidated Balance Sheet related to the recall. The estimated cost to replace the bike seat posts is primarily based on the estimated number of requests for seat posts and the estimated costs of the production and shipment of the replacement parts. For more detail on the potential impacts of the recall to our business, see “Risk Factors—Risks Related to Our Connected Fitness Products and Members—Our products and services may be affected from time to time by design and manufacturing defects or product safety issues, real or perceived, that could adversely affect our business and result in harm to our reputation” in our Form 10-K. Commitments to Suppliers The Company utilizes contract manufacturers to build its products and accessories. These contract manufacturers acquire components and build products based on demand forecast information the Company supplies, which typically covers a rolling 12-month period. Consistent with industry practice, the Company acquires inventories from such manufacturers through blanket purchase orders against which orders are applied based on projected demand information and availability of goods. Such purchase commitments typically cover the Company’s forecasted product and manufacturing requirements for periods that range a number of months. In certain instances, these agreements allow the Company the option to cancel, reschedule, and/or adjust our requirements based on its business needs for a period of time before the order is due to be fulfilled. While the Company’s purchase orders are legally cancellable in many situations, there are some which are not cancellable in the event of a demand plan change or other circumstances, such as where the supplier has procured unique, Peloton-specific designs, and/or specific non-cancellable, non-returnable components based on our provided forecasts. As of September 30, 2023, the Company’s commitments to contract with third-party manufacturers for their inventory on-hand and component purchase commitments related to the manufacture of Peloton products were estimated to be approximately $169.3 million, of which $162.9 million is expected to be paid over the next twelve months. Legal and Regulatory Proceedings The Company is, or may become, a party to legal and regulatory proceedings with respect to a variety of matters in the ordinary course of its business, including the matters set forth below. We deny the allegations in the active matters described below and intend to vigorously defend against such matters. Some of our legal and regulatory proceedings, including matters and litigation that center around intellectual property claims, may be based on complex claims involving substantial uncertainties and unascertainable damages. Accordingly, except for proceedings that have settled or been terminated, or except where otherwise indicated below, it is not possible to determine the probability of loss or estimate damages for such matters, and therefore, the Company has not established reserves for any of these proceedings. When the Company determines that a loss is both probable and reasonably estimable, the Company records a liability, and, if the liability is material, discloses the amount of the liability reserved. Given that such proceedings are subject to uncertainty, there can be no assurance that such legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our business, results of operations, financial condition or cash flows. In May 2021 we initiated a voluntary recall of our Tread+ product in collaboration with the CPSC. In December 2022, we entered into a settlement agreement with the CPSC regarding matters related to the Tread+ recall. In the settlement, we agreed to pay a $19.1 million civil penalty, resolving the CPSC’s charges that we violated the Consumer Product Safety Act (“CPSA”). On May 18, 2023, the Company and the CPSC jointly announced the approval of a rear guard repair for the recalled Tread+. The SEC is also investigating our public disclosures concerning the Tread+ recall, as well as other matters. In addition, in 2021, the U.S. Department of Justice (the “DOJ”) and the Department of Homeland Security subpoenaed us for documents and other information related to our statutory obligations under the CPSA. The SEC and DOJ investigations are ongoing. In addition to the regulatory investigations, we are presently subject to class action litigation and private personal injury claims related to the safety of the Tread+. On May 11, 2023, in collaboration with the CPSC, the Company announced a voluntary recall of the original Peloton Bike (not Bike+) sold in the U.S. from January 2018 to May 2023 related to its seat post, and the Company is offering Members a free replacement seat post as the approved repair. On May 17, 2023, Brandy Miller filed suit against Peloton on behalf of a putative nationwide class of Bike purchasers in the U.S. District Court for the District of South Carolina, Case No. 3:23-cv-02101-MGL. Plaintiff Miller alleges that, as demonstrated by the seat post recall, the Bike was defective when sold, and she brings claims of unjust enrichment, breaches of express and implied warranties, breach of contract, negligence, and design and manufacturing defects. On October 19, 2023, the court granted the Company’s motion to compel arbitration and stayed further proceedings pending an arbitrator’s determination of the arbitrability of the plaintiff’s claims. On November 16, 2021, the United States District Court for the Eastern District of New York consolidated two putative securities class action lawsuits against the Company and certain of its officers under the caption In re Peloton Interactive, Inc. Securities Litigation , Master File No. 21-cv-02369-CBA-PK, and appointed Richard Neswick as lead plaintiff. On January 21, 2022, lead plaintiff filed an amended consolidated complaint in the action purportedly on behalf of a class consisting of those individuals who purchased or otherwise acquired our common stock between September 11, 2020 and May 5, 2021. Lead plaintiff alleges that the Company and certain of its officers made false or misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) regarding the Peloton Tread+ and the safety of the product. On April 17, 2023, the parties entered into a settlement agreement to resolve the action for $14.0 million, for which the Company had previously taken a reserve. Under the terms of this agreement, defendants continue to deny any liability or wrongdoing. The settlement remains subject to court approval. On June 9, 2023, Sam Solomon filed suit against Peloton and certain of its current and former officers on behalf of a putative class of individuals who purchased or otherwise acquired Peloton securities between May 10, 2022 and May 10, 2023, in the U.S. District Court for the Eastern District of New York, Case No. 1:23-cv-04279-MKB-JRC (the “Solomon Securities Litigation”). Plaintiff Solomon alleges that the defendants made false and/or misleading statements or omissions relating to the seat post recall in violation of Sections 10(b) and 20(a) of the Exchange Act. On October 26, 2021 and January 24, 2022, the United States District Court for the Eastern District of New York consolidated four stockholder derivative actions purportedly on behalf of the Company against certain of the Company’s current and former officers and directors under the caption In re Peloton Interactive, Inc. Derivative Litigation , Master File No. 21-cv-02862-CBA-PK (the “EDNY Derivative Action”), which alleged, among other claims, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste, and violations of Section 14(a) of the Exchange Act. Alan Chu, Moshe Genack, Xingqi Liu and Anthony Franchi were appointed as co-lead plaintiffs. The EDNY Derivative Action was stayed on February 11, 2022. On December 14, 2022, two putative verified stockholder derivative actions in the Court of Chancery of the State of Delaware, purportedly on behalf of the Company against certain of the Company’s officers and directors asserting similar allegations to those made in the EDNY Derivative Action, were consolidated as In re Peloton Interactive, Inc. Stockholder Derivative Litigation , Consol. Case No. 2022-1051-KSJM (“Chancery Derivative Action”), and stayed. On December 22, 2022, a stockholder filed a putative stockholder derivative action in the United States District Court for the District of Delaware, asserting similar allegations to those in the EDNY Derivative Action and the Chancery Derivative Action against certain current and former Company officers and directors, captioned Blackburn v. Foley, et al. , Case No. 22-cv-01618-GBW, which was stayed on January 12, 2023. On May 5, 2022, the United States District Court for the Southern District of New York consolidated two putative securities class action lawsuits against the Company and certain of its current and former officers under the caption City of Hialeah Employees Retirement System et al. v. Peloton Interactive, Inc., et al ., Case No. 21-CV-09582-ALC-OTW and appointed Robeco Capital Growth Funds SICAV – Robeco Global Consumer Trends as lead plaintiff in the class action (the “SDNY Class Action”). Lead plaintiff filed its amended complaint on June 25, 2022, alleging that the defendants made false and/or misleading statements about demand for the Company’s products and the reasons for the Company’s inventory growth, and engaged in improper trading in violation of Sections 10(b) and 20A of the Exchange Act. On March 30, 2023, the court granted defendants’ motion to dismiss, with leave to amend. Plaintiffs filed an amended complaint on May 6, 2023, purportedly on behalf of a class of individuals who purchased or otherwise acquired the Company’s common stock between February 5, 2021 and January 19, 2022, and defendants moved to dismiss the complaint on June 16, 2023. Briefing on defendants’ motion to dismiss the amended complaint in the SDNY Class Action was completed on August 18, 2023. On July 26, 2023, the Court of Chancery in the State of Delaware consolidated three stockholder derivative actions purportedly on behalf of the Company against certain of the Company’s current and former officers and directors under the caption In re Peloton Interactive, Inc. 2023 Derivative Litigation , Consol. Case No. 2023-0224-KSJM, which alleges that defendants breached their fiduciary duties by purportedly making false statements about demand for the Company’s products and engaging in improper trading. Plaintiffs Allison Manzella, Clark Ovruchesky, Daniel Banks, and Karen Florentino are co-lead plaintiffs. The Court stayed the action on September 26, 2023. On September 27, 2023, Courtney Cooper and Abdo P. Faissal filed a verified stockholder derivative complaint, purportedly on behalf of the Company against certain of the Company’s current and former officers and directors, captioned Cooper v. Boone, et. al ., Case No. 23-cv-07193-MKB-MMH, in the U.S. District Court for the Eastern District of New York, which alleges breaches of fiduciary duties and violations of Section 14(a) of the Exchange Act, as well as a claim for contribution under Sections 10(b) and 21D of the Exchange Act for any liability the Company may incur as a result of the Solomon Securities Litigation. On August 4, 2022, Mayville Engineering Company, Inc. (“MEC”) filed suit against the Company in the Supreme Court of the State of New York, Index No. 652735/2022, alleging claims for breach of contract, or, in the alternative, breach of the implied duty of good faith and fair dealing. MEC alleges that the Company breached a supply agreement under which MEC agreed to supply certain parts for Peloton products, and that it is entitled to damages in an amount exceeding $107.0 million, plus pre-judgment interest, fees, and costs. On September 23, 2022, Peloton moved to dismiss MEC's complaint. On January 6, 2023, the Court partially granted and partially denied Peloton's motion to dismiss, dismissing MEC’s alternative claim for breach of the implied duty of good faith and fair dealing with prejudice, but allowing MEC's claim for breach of contract to move forward. Peloton has appealed that ruling and its appeal is pending. In September 2023, Peloton asserted a counterclaim and affirmative defense against MEC for fraudulent inducement of the supply agreement. The matter is ongoing.

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation 2019 Equity Incentive Plan In August 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (the “2019 Plan”), which was subsequently approved by the Company’s stockholders in September 2019. The 2019 Plan serves as the successor to the 2015 Stock Plan (the "2015 Plan"). The 2015 Plan continues 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. 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. On July 1, 2023, the number of shares of Class A common stock available for issuance under the 2019 Plan was automatically increased according to its terms by 17,838,381 shares. As of September 30, 2023, 45,426,988 shares of Class A common stock are available for future award under the 2019 Plan. Stock Options 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, 2023 42,999,273 $ 19.71 5.2 $ 33.2 Exercised (1,403,292) $ 3.56 $ 5.0 Forfeited or expired (4,499,768) $ 26.26 Outstanding — September 30, 2023 37,096,213 $ 19.53 5.6 $ 13.4 Vested and Exercisable— September 30, 2023 26,550,020 $ 17.07 4.6 $ 13.4 Unvested option activity is as follows: Options Weighted-Average Grant Date Fair Value Unvested - June 30, 2023 12,407,094 $ 18.84 Vested (1,365,473) $ 18.90 Forfeited or expired (495,428) $ 18.11 Unvested - September 30, 2023 10,546,193 $ 18.86 The aggregate intrinsic value of options outstanding and 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, 2023. 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. The aggregate intrinsic value of exercised options was $5.0 million and $3.1 million for the three months ended September 30, 2023 and 2022, respectively. On July 1, 2022, the Compensation Committee of the Board of Directors of the Company approved a one-time repricing of certain stock option awards that had been granted to date under the 2019 Plan. The repricing impacted stock options held by all employees who remained employed through July 25, 2022. The repricing did not apply to our U.S.-based hourly employees (or employees with equivalent roles in non-U.S. locations) or our C-level executives. The original exercise prices of the repriced stock options ranged from $12.94 to $146.79 per share for the 2,138 total grantees. Each stock option was repriced to have a per share exercise price of $9.13, which was the closing price of the Company’s Class A common stock on July 1, 2022. There were no changes to the number of shares, the vesting schedule, or the expiration date of the repriced stock options. Incremental stock-based compensation expense resulting from the repricing was $21.9 million in the aggregate. Approximately $4.7 million was recognized immediately during the three months ended September 30, 2022. For the three months ended September 30, 2023 no options were granted and for the three months ended September 30, 2022, the weighted-average grant date fair value per option was $6.74. 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, 2022 Weighted average risk-free interest rate (1) 2.9 % Weighted average expected term (in years) 6.2 Weighted average expected volatility (2) 79.9 % Expected dividend yield — ____________________________ (1) Based on U.S. Treasury yield curve in effect at the time of grant. (2) Expected volatility is based on a blended average of average historical stock volatilities of several peer companies over the expected term of the stock options, historical volatility of the Company's stock price, and implied stock price volatility derived from the price of exchange traded options on the Company's stock. Restricted Stock and Restricted Stock Units The following table summarizes the activity related to the Company's restricted stock and restricted stock units: Restricted Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding — June 30, 2023 27,236,428 $ 13.96 Granted 21,883,719 $ 6.73 Vested and converted to shares (1,879,153) $ 20.34 Cancelled (1,896,767) $ 13.31 Outstanding — September 30, 2023 45,344,227 $ 10.23 Employee Stock Purchase Plan In August 2019, the Board of Directors adopted, and in September 2019, the Company's stockholders approved, the Employee Stock Purchase Plan (“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 September 25, 2019, the date the registration statement, in connection with the Company’s initial public offering, was declared effective by the SEC. 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. On July 1, 2023, the number of shares of Class A common stock available for issuance under the ESPP was automatically increased according to its terms by 3,567,676 shares. As of September 30, 2023, a total of 15,821,314 shares of Class A common stock was available for sale to employees under the ESPP. Unless otherwise determined by the Board of Directors, each offering period will consist of four six-month purchase periods, provided that the initial offering period commenced on September 25, 2019 and ended on August 31, 2021, and the initial purchase period ended February 28, 2020. Thereafter, each offering period and each purchase period will commence on September 1 and March 1 and end on August 31 and February 28 of each two-year period or each six-month period, respectively, subject to a reset provision. If the closing stock price on the first day of an offering period is higher than the closing stock price on the last day of any applicable purchase period, participants will be withdrawn from the ongoing offering period immediately following the purchase of ESPP shares on the purchase date and would automatically be enrolled in the subsequent offering period (“ESPP reset”), resulting in a modification under ASC 718. Unless otherwise determined by the Board of Directors, the purchase price for each share of Class A common stock purchased under the ESPP will be 85% of the lower of the fair market value per share on the first trading day of the applicable offering period or the fair market value per share on the last trading day of the applicable purchase period. The Black-Scholes option pricing model assumptions used to calculate the fair value of shares estimated to be purchased at the commencement of the ESPP offering periods were as follows: Three Months Ended September 30, 2023 Weighted average risk-free interest rate 1.6 % Weighted average expected term (in years) 1.3 Weighted average expected volatility 92.4 % Expected dividend yield — The expected term assumptions were based on each offering period's respective purchase date. The expected volatility was derived from the blended average of historical stock volatilities of several unrelated public companies that the Company considers to be comparable to its business over a period equivalent to the expected terms of the stock options and the historical volatility of the Company's stock price. Beginning in the fiscal quarter ended March 31, 2022, the expected volatility is based on the historical volatility of the Company’s stock price. The risk-free rate assumptions were based on the U.S. treasury yield curve in effect at the time of the grants. The dividend yield assumption was zero as the Company has not historically paid any dividends and does not expect to declare or pay dividends in the foreseeable future. During the three months ended September 30, 2023 and 2022, the Company recorded stock-based compensation expense associated with the ESPP of $1.1 million and $7.6 million, respectively. In connection with the offering period that ended on August 31, 2023, employees purchased 373,114 shares of Class A common stock at a weighted-average price of $5.42 under the ESPP. As of September 30, 2023, total unrecognized compensation cost related to the ESPP was $13.3 million, which will be amortized over a weighted-average remaining period of 1.9 years. Stock-Based Compensation Expense The Company's total stock-based compensation expense was as follows: Three Months Ended September 30, 2023 2022 (in millions) Cost of revenue Connected Fitness Products $ 2.3 $ 7.3 Subscription 9.7 12.7 Total cost of revenue 12.0 20.1 Sales and marketing 4.7 10.7 General and administrative 35.4 52.3 Research and development 14.9 22.2 Restructuring expense 7.2 76.8 Total stock-based compensation expense $ 74.2 $ 182.1 As of September 30, 2023, the Company had $617.6 million of unrecognized stock-based compensation expense related to unvested stock-based awards that is expected to be recognized over a weighted-average period of 2.8 years. In the three months ended September 30, 2022, six employees of the Company who were eligible to participate in the Company’s Severance and Change in Control Plan (the “Severance Plan”) terminated employment. Certain modifications were made to equity awards, including, in certain instances, the post-termination period during which an employee may exercise outstanding stock options was extended from 90 days to one year (or the option expiration date, if earlier), and extended vesting was tied to certain consulting services that were deemed to be non-substantive. In one instance, the post-termination period during which an employee may exercise outstanding stock options was extended from 90 days to approximately 2.8 years. As a result of these modifications, the Company recognized incremental stock-based compensation expense of $43.4 million within Restructuring expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. In the three months ended September 30, 2023, one employee who was eligible to participate in the Severance Plan terminated employment. Certain modifications were made to equity awards, including the extension of the post-termination period during which an employee may exercise outstanding stock options from 90 days to the earlier of the original expiration date or 3 years. The employee will transition to a non-executive advisory role and as a result of this modification, the Company recognized incremental stock-based compensation expense of $5.4 million for the three months ended September 30, 2023 within Restructuring expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a provision from income taxes of $0.8 million and $0.8 million for the three months ended September 30, 2023 and 2022, respectively. Furthermore, the Company's effective tax rates were (0.50)% and (0.20)% for the three months ended September 30, 2023 and 2022, respectively. The income tax provision and the effective tax rate are primarily driven by state and international taxes. The Company maintains a valuation allowance on the majority of its deferred tax assets as it has concluded that it is more likely than not that the deferred assets will not be utilized.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The computation of loss per share is as follows: Three Months Ended September 30, 2023 2022 ($ in millions except per share amounts) Basic and diluted loss per share: Net loss attributable to common stockholders $ (159.3) $ (408.5) Shares used in computation: Weighted-average common shares outstanding 358,547,563 339,011,157 Basic and diluted loss per share $ (0.44) $ (1.20) 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, 2023 2022 Employee stock options 8,703,141 15,944,915 Restricted stock units and awards 993,473 133,396 Impact of the Notes The conversion option will have a dilutive impact on net income per share of common stock when the average market price per share of the Company's Class A common stock for a given period exceeds the conversion price of the Notes of $239.23 per share. During the three months ended September 30, 2023, the weighted average price per share of the Company's Class A common stock was below the conversion price of the Notes. The denominator for basic and diluted loss per share does not include any effect from the Capped Call Transactions the Company entered into concurrently with the issuance of the Notes as this effect would be anti-dilutive. In the event of conversion of the Notes, if shares are delivered to the Company under the Capped Call Transactions, they will offset the dilutive effect of the shares that the Company would issue under the Notes.

Segment Information

Segment Information	3 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information The Company applies ASC 280, Segment Reporting , in determining reportable segments. The Company has two reportable segments: Connected Fitness Products and Subscription. Segment information is presented in the same manner that the chief operating decision maker ("CODM") reviews the operating results in assessing performance and allocating resources. The CODM reviews revenue and gross profit for both 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 and, accordingly, the Company does not report asset information by segment. The Connected Fitness Products segment derives revenue from sale of the Company's portfolio of Connected Fitness Products and related accessories, delivery and installation services, branded apparel, and extended warranty agreements. The Subscription segment derives revenue from monthly Subscription fees. 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, 2023 2022 (in millions) Connected Fitness Products: Revenue $ 180.6 $ 204.2 Cost of revenue 174.9 259.8 Gross profit $ 5.7 $ (55.6) Subscription: Revenue $ 415.0 $ 412.3 Cost of revenue 135.2 139.5 Gross profit $ 279.7 $ 272.8 Consolidated: Revenue $ 595.5 $ 616.5 Cost of revenue 310.1 399.3 Gross profit $ 285.4 $ 217.2 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 provision for income tax is as follows: Three Months Ended September 30, 2023 2022 (in millions) Segment Gross Profit $ 285.4 $ 217.2 Sales and marketing (146.0) (138.7) General and administrative (151.1) (193.5) Research and development (78.7) (88.1) Impairment expense (24.0) (62.9) Restructuring expense (17.8) (106.9) Supplier settlements — (1.1) Total other expense, net (26.2) (33.7) Loss before provision for income taxes $ (158.5) $ (407.7)

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
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") 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. Certain immaterial amounts from the prior year have been reclassified to conform with current-year presentation.
Use of Estimates	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, expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to revenue related reserves, product recall and corrective action cost, the realizability of inventory, content costs for past use reserve, fair value measurements, the incremental borrowing rate associated with lease liabilities, impairment of long-lived and intangible assets, useful lives of long-lived assets, including property and equipment and finite-lived intangible assets, product warranty, goodwill, accounting for income taxes, stock-based compensation expense, transaction price estimates, the fair values of assets acquired and liabilities assumed in business combinations and asset acquisitions, future restructuring charges, contingent consideration, and commitments and contingencies. Actual results may differ from these estimates.
Internal-Use Software	Internal-Use Software The Company incurs development costs related to internal-use software. These software development costs meet the criteria for capitalization once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. The Company evaluates the costs incurred during the application development stage of internal use software and website development to determine whether the costs meet the criteria for capitalization. Costs related to preliminary project activities and post-implementation activities including maintenance are expensed as incurred. Capitalized costs related to internal-use software are amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years. Capitalized costs less accumulated amortization are included within Property and equipment, net on the Consolidated Balance Sheets. Software development costs that do not meet the criteria for capitalization and are expensed as incurred within Research and development in the Condensed Consolidated Statements of Operations and Comprehensive Loss.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements ASU 2021-08 In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers . The Company adopted ASU 2021-08 on July 1, 2023. The standard will be applied to acquisitions occurring on or after the effective date. The impact will depend on the contract assets and liabilities acquired in future business combinations.
Revenue Recognition	The Company’s primary sources of revenue are its recurring content Subscription revenue, and revenue from sales of its Connected Fitness Products, accessories, and branded apparel, as well as Precor branded fitness products, delivery, and installation services. 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 is 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, discounts, incentives, and rebates to commercial distributors as a reduction of the transaction price. Certain contracts include consideration payable that is accounted for as a payment for distinct goods or services. The Company estimates its liability for product returns and concessions based on historical 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 the standalone selling price based on the prices charged to customers. The Company applies the practical expedient as per ASC 606-10-50-14 and does not disclose information related to remaining performance obligations due to their original expected terms being one year or less. The Company expenses sales commissions on its Connected Fitness Products when incurred because the amortization period would have been less than one year. These costs are recorded in Sales and marketing in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Some of the Company’s revenues relate to rental lease arrangements. The Company’s rental program allows Members to lease a Bike or Bike+ with a Peloton Rental Membership for a single monthly cost and a one-time delivery fee, and gives the Member the option to purchase the equipment outright or cancel at any time with no penalty. These lease arrangements include both lease and non-lease components. Consideration is allocated between the lease and non-lease components based on management’s best estimate of the relative standalone selling price of each component. The lease component relates to the customer’s right to use the equipment over the lease term and is accounted for as an operating lease in accordance with ASC 842, Leases . Lease revenue is recognized on a straight-line basis over the life of the lease within Connected Fitness Products revenue, while the underlying equipment subject to the lease remains within Property and equipment, net on the Company’s Consolidated Balance Sheets and depreciates over the equipment’s useful life. Depreciation expense associated with the underlying equipment is reflected in Connected Fitness Products cost of revenue in the Company’s Consolidated Statements of Operations and Comprehensive Loss. Non-lease components are primarily comprised of (1) an All-Access Membership, which is recognized within Subscription revenue, and (2) cycling shoes, which are recognized within Connected Fitness Products revenue, and are accounted for in accordance with ASC 606. Connected Fitness Products Connected Fitness Products include the Company’s portfolio of Connected Fitness Products and related accessories, Precor branded fitness products, delivery and installation services, Peloton branded apparel, extended warranty agreements, and commercial service contracts. The Company recognizes Connected Fitness Products revenue net of sales returns and discounts when the product has been delivered to the customer, except for extended warranty revenue that is recognized over the warranty period and service revenue that is recognized over the term of the service contract. The Company allows customers to return Peloton branded Connected Fitness 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 Sales and marketing in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Subscription The Company’s subscriptions provide access to Peloton content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month or prepaid basis. Amounts paid for subscription fees, net of refunds are included within Deferred revenue and customer deposits on the Company’s Condensed Consolidated Balance Sheets and recognized ratably over the subscription term. The Company records payment processing fees for its monthly subscription charges within cost of Subscription revenue in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Sales tax collected from customers and remitted to governmental authorities is not included in revenue and is reflected as a liability on the Company’s Condensed Consolidated Balance Sheets.
Deferred Revenue and Customer Deposits	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. Customer deposits represent payments received in advance before the Company transfers a good or service to the customer and are refundable.
Fair Value Measurements	The fair value of the 0% Convertible Senior Notes due February 15, 2026 (the “Notes”) is determined based on the closing price on the last trading day of the reporting period.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Product Warranty Liability	Activity related to the Company’s accrual for our estimated future product warranty obligation was as follows: Three Months Ended September 30, 2023 2022 (in millions) Balance at beginning of period $ 26.4 $ 51.1 Provision for warranty accrual 1.8 (2.9) Warranty claims (7.5) (11.5) Balance at end of period $ 20.7 $ 36.7
Schedule of Disaggregation of Revenue	The Company’s revenue disaggregated by geographic region was as follows: Three Months Ended September 30, 2023 2022 (in millions) North America $ 548.8 $ 566.7 International 46.7 49.9 Total revenue $ 595.5 $ 616.5

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges	As a result of the Restructuring Plan, the Company incurred the charges shown in the following table, of which Asset write-downs and write-offs are included within Impairment expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The remaining charges incurred due to the Restructuring Plan are included within Restructuring expense in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Three Months Ended September 30, 2023 2022 Cash restructuring charges: (in millions) Severance and other personnel costs $ 6.1 $ 27.0 Exit and disposal costs and professional fees 4.5 3.1 Total cash charges 10.6 30.1 Non-cash charges: Asset write-downs and write-offs 22.8 62.9 Stock-based compensation expense 7.2 76.8 Write-offs of inventory related to restructuring activities (1) 0.5 — Total non-cash charges 30.5 139.7 Total $ 41.2 $ 169.8 _________________________ (1) Write-offs of inventory are included within Cost of revenue: Connected Fitness Products in the Condensed Consolidated Statement of Operations and Comprehensive Loss.
Schedule of Restructuring Related Liabilities	The following tables present a roll-forward of cash restructuring-related liabilities, which is included within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets, as follows: Severance and other personnel costs Exit and disposal costs and professional fees Total (in millions) Balance as of June 30, 2022 $ 10.9 $ — $ 10.9 Charges 27.0 3.1 30.1 Cash payments (22.4) (1.5) (23.9) Balance as of September 30, 2022 $ 15.5 $ 1.5 $ 17.1 Balance as of June 30, 2023 $ 13.6 $ 0.3 $ 13.9 Charges 6.1 4.5 10.6 Cash payments (13.8) (4.2) (18.0) Balance as of September 30, 2023 $ 5.9 $ 0.6 $ 6.5

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	The following tables present the estimated fair values of the Company’s financial instruments that are not recorded at fair value on the Condensed Consolidated Balance Sheets: As of September 30, 2023 Level 1 Level 2 Level 3 Total (in millions) 0% Convertible Senior Notes $ — $ 753.1 $ — $ 753.1 As of June 30, 2023 Level 1 Level 2 Level 3 Total (in millions) 0% Convertible Senior Notes $ — $ 759.5 $ — $ 759.5

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were as follows: September 30, 2023 June 30, 2023 (in millions) Raw materials $ 48.6 $ 53.2 Finished products (1) 689.8 703.0 Total inventories 738.4 756.2 Less: Reserves (223.8) (233.6) Total inventories, net $ 514.6 $ 522.6 _________________________ (1) Includes $40.8 million and $26.4 million of finished goods inventory in transit, products owned by the Company that have not yet been received at a Company distribution center, as of September 30, 2023 and June 30, 2023, respectively.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Convertible Debt	The net carrying amount of the liability component of the Notes was as follows: September 30, 2023 June 30, 2023 (in millions) Principal $ 1,000.0 $ 1,000.0 Unamortized debt issuance costs (10.9) (12.0) Net carrying amount $ 989.1 $ 988.0 The following table sets forth the interest expense recognized related to the Notes: Three Months Ended September 30, 2023 2022 (in millions) Amortization of debt issuance costs $ 1.1 $ 1.1 Total interest expense related to the Notes $ 1.1 $ 1.1 The net carrying amount of the Term Loan was as follows: September 30, 2023 June 30, 2023 (in millions) Principal $ 750.0 $ 750.0 Principal payments (9.4) (7.5) Unamortized debt discount (26.4) (27.8) Unamortized debt issuance costs (15.5) (16.3) Net carrying amount $ 698.7 $ 698.4 The following table sets forth the interest expense recognized related to the Term Loan: Three Months Ended September 30, 2023 2022 (in millions) Amortization of debt discount $ 1.4 $ 1.4 Amortization of debt issuance costs 0.8 0.8 Total interest expense related to the Term Loan $ 2.2 $ 2.2

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum Guarantee Royalty Payments Due Under Music License Agreements	The following represents the Company's minimum annual guarantee payments under music license agreements for the next three years as of September 30, 2023 : Future Minimum Payments Fiscal Year (in millions) 2024 (remaining) $ 84.1 2025 48.8 2026 5.0 Total $ 138.0
Schedule of Actual and Future Returns and Written Down and Logistics Costs	The following table details the (benefit)/reduction to Connected Fitness Products revenue for actual and future returns and costs associated with the Tread+ product recall that were recorded in Connected Fitness Products cost of revenue. Three Months Ended September 30, 2023 2022 (in millions) Returns accrual for (benefit)/reduction to Connected Fitness Products revenue $ (1.6) $ 26.5 Costs of product recalls (0.1) 2.5

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Sep. 30, 2023
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, 2023 42,999,273 $ 19.71 5.2 $ 33.2 Exercised (1,403,292) $ 3.56 $ 5.0 Forfeited or expired (4,499,768) $ 26.26 Outstanding — September 30, 2023 37,096,213 $ 19.53 5.6 $ 13.4 Vested and Exercisable— September 30, 2023 26,550,020 $ 17.07 4.6 $ 13.4 Unvested option activity is as follows: Options Weighted-Average Grant Date Fair Value Unvested - June 30, 2023 12,407,094 $ 18.84 Vested (1,365,473) $ 18.90 Forfeited or expired (495,428) $ 18.11 Unvested - September 30, 2023 10,546,193 $ 18.86
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, 2022 Weighted average risk-free interest rate (1) 2.9 % Weighted average expected term (in years) 6.2 Weighted average expected volatility (2) 79.9 % Expected dividend yield — ____________________________ (1) Based on U.S. Treasury yield curve in effect at the time of grant. (2) Expected volatility is based on a blended average of average historical stock volatilities of several peer companies over the expected term of the stock options, historical volatility of the Company's stock price, and implied stock price volatility derived from the price of exchange traded options on the Company's stock.
Schedule of Restricted Stock and Restricted Stock Units	The following table summarizes the activity related to the Company's restricted stock and restricted stock units: Restricted Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding — June 30, 2023 27,236,428 $ 13.96 Granted 21,883,719 $ 6.73 Vested and converted to shares (1,879,153) $ 20.34 Cancelled (1,896,767) $ 13.31 Outstanding — September 30, 2023 45,344,227 $ 10.23
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The Black-Scholes option pricing model assumptions used to calculate the fair value of shares estimated to be purchased at the commencement of the ESPP offering periods were as follows: Three Months Ended September 30, 2023 Weighted average risk-free interest rate 1.6 % Weighted average expected term (in years) 1.3 Weighted average expected volatility 92.4 % Expected dividend yield —
Schedule of Stock-based Compensation Expense	The Company's total stock-based compensation expense was as follows: Three Months Ended September 30, 2023 2022 (in millions) Cost of revenue Connected Fitness Products $ 2.3 $ 7.3 Subscription 9.7 12.7 Total cost of revenue 12.0 20.1 Sales and marketing 4.7 10.7 General and administrative 35.4 52.3 Research and development 14.9 22.2 Restructuring expense 7.2 76.8 Total stock-based compensation expense $ 74.2 $ 182.1

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net (Loss) Income Per Share	The computation of loss per share is as follows: Three Months Ended September 30, 2023 2022 ($ in millions except per share amounts) Basic and diluted loss per share: Net loss attributable to common stockholders $ (159.3) $ (408.5) Shares used in computation: Weighted-average common shares outstanding 358,547,563 339,011,157 Basic and diluted loss per share $ (0.44) $ (1.20)
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, 2023 2022 Employee stock options 8,703,141 15,944,915 Restricted stock units and awards 993,473 133,396

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Sep. 30, 2023
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, 2023 2022 (in millions) Connected Fitness Products: Revenue $ 180.6 $ 204.2 Cost of revenue 174.9 259.8 Gross profit $ 5.7 $ (55.6) Subscription: Revenue $ 415.0 $ 412.3 Cost of revenue 135.2 139.5 Gross profit $ 279.7 $ 272.8 Consolidated: Revenue $ 595.5 $ 616.5 Cost of revenue 310.1 399.3 Gross profit $ 285.4 $ 217.2
Schedule of Reconciliation of Segment Gross Profit to Consolidated Loss Before Tax	The reconciliation between reportable Segment Gross Profit to consolidated Loss before provision for income tax is as follows: Three Months Ended September 30, 2023 2022 (in millions) Segment Gross Profit $ 285.4 $ 217.2 Sales and marketing (146.0) (138.7) General and administrative (151.1) (193.5) Research and development (78.7) (88.1) Impairment expense (24.0) (62.9) Restructuring expense (17.8) (106.9) Supplier settlements — (1.1) Total other expense, net (26.2) (33.7) Loss before provision for income taxes $ (158.5) $ (407.7)

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	Sep. 30, 2023
Maximum | Internal-Use Software
Property and Equipment [Line Items]
Useful life	3 years

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Allowable product return period (in days)	30 days
Standard product warranty period (in years)	1 year
Total revenue	$ 595.5	$ 616.5
Deferred revenue	93.8		$ 98.3
Customer deposits	80		$ 89
Revenue recognized that was previously included in deferred revenue	88.6	88.1
United States
Disaggregation of Revenue [Line Items]
Total revenue	$ 528	$ 545.1
United States | Revenue Benchmark | Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of total revenue	89%	88%
Minimum
Disaggregation of Revenue [Line Items]
Extended product warranty period (in months)	12 months
Maximum
Disaggregation of Revenue [Line Items]
Extended product warranty period (in months)	36 months

Revenue - Standard Product Warr

Revenue - Standard Product Warranty (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 26.4	$ 51.1
Provision for warranty accrual	1.8	(2.9)
Warranty claims	(7.5)	(11.5)
Balance at end of period	$ 20.7	$ 36.7

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 595.5	$ 616.5
North America
Disaggregation of Revenue [Line Items]
Total revenue	548.8	566.7
International
Disaggregation of Revenue [Line Items]
Total revenue	$ 46.7	$ 49.9

Restructuring - Schedule of Res

Restructuring - Schedule of Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash restructuring charges:
Severance and other personnel costs	$ 6.1	$ 27
Exit and disposal costs and professional fees	4.5	3.1
Total cash charges	10.6	30.1
Non-cash charges:
Asset write-downs and write-offs	22.8	62.9
Stock-based compensation expense	7.2	76.8
Write-offs of inventory related to restructuring activities	0.5	0
Total non-cash charges	30.5	139.7
Total	$ 41.2	$ 169.8

Restructuring - Schedule of R_2

Restructuring - Schedule of Restructuring Related Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 13.9	$ 10.9
Charges	10.6	30.1
Cash payments	(18)	(23.9)
Ending Balance	6.5	17.1
Severance and other personnel costs
Restructuring Reserve [Roll Forward]
Beginning Balance	13.6	10.9
Charges	6.1	27
Cash payments	(13.8)	(22.4)
Ending Balance	5.9	15.5
Exit and disposal costs and professional fees
Restructuring Reserve [Roll Forward]
Beginning Balance	0.3	0
Charges	4.5	3.1
Cash payments	(4.2)	(1.5)
Ending Balance	$ 0.6	$ 1.5

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2024
Restructuring Cost and Reserve [Line Items]
Non cash charges	$ 30.5	$ 139.7
Employee Reduction, Facility Closings | Forecast
Restructuring Cost and Reserve [Line Items]
Expected cost			$ 30
Asset Impairment and Stock Based Compensation Charges | Forecast
Restructuring Cost and Reserve [Line Items]
Non cash charges			$ 15

Fair Value Measurements - Other

Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	$ 753.1	$ 759.5
0% Convertible Senior Notes Due February 15, 2026 | Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible debt, stated interest rate	0%	0%
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	$ 0	$ 0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	753.1	759.5
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible senior notes	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	Sep. 30, 2023	Jun. 30, 2023
0% Convertible Senior Notes Due February 15, 2026 | Convertible Debt
Debt Instrument [Line Items]
Convertible debt, stated interest rate	0%	0%

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 48.6	$ 53.2
Finished products	689.8	703
Total inventories	738.4	756.2
Less: Reserves	(223.8)	(233.6)
Total inventories, net	514.6	522.6
Other inventory, in transit	$ 40.8	$ 26.4

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Inventory [Line Items]
Inventory related to returned products	$ 102.9
Inventory reserves	223.8	$ 233.6
Excess Accessories and Apparel
Inventory [Line Items]
Inventory reserves	$ 95.2

Debt - Convertible Notes and In

Debt - Convertible Notes and Indenture (Details) - Convertible Debt - Convertible Notes Maturing February 15, 2026 $ / shares in Units, shares in Millions	1 Months Ended
	Feb. 28, 2021 USD ($) period $ / shares shares
Line of Credit Facility [Line Items]
Principal amount	$ 1,000,000,000
Value of shares available for exercise	125,000,000
Proceeds from convertible debt	$ 977,200,000
Debt instrument, conversion ratio	0.00418
Debt instrument, conversion price (in dollars per share) | $ / shares	$ 239.23
Redemption price percentage	100%
Call Option
Line of Credit Facility [Line Items]
Capped calls, option strike price (in dollars per share) | $ / shares	$ 239.23
Capped calls, cap price (in dollars per share) | $ / shares	$ 362.48
Shares covered under call feature (in shares) | shares	6.9
Capped call purchase price	$ 81,300,000
Debt Conversion Terms One
Line of Credit Facility [Line Items]
Threshold percentage of stock price trigger	130%
Threshold of trading days | period	20
Threshold of consecutive trading days | period	30

Debt - Components of Convertibl

Debt - Components of Convertible Debt (Details) - Convertible Debt - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Convertible Notes Maturing February 15, 2026
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net [Abstract]
Principal	$ 1,000	$ 1,000
Unamortized debt issuance costs	(10.9)	(12)
Net carrying amount	989.1	988
Convertible Senior Notes Outstanding On November 16, 2025 | Term Loan Facility
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net [Abstract]
Principal	750	750
Unamortized debt issuance costs	(15.5)	(16.3)
Principal payments	(9.4)	(7.5)
Unamortized debt discount	(26.4)	(27.8)
Net carrying amount	$ 698.7	$ 698.4

Debt - Components of Interest E

Debt - Components of Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Interest Expense, Debt [Abstract]
Amortization of debt issuance costs	$ 1.1	$ 1.1
Total interest expense related to the Notes	1.1	1.1
Term Loan Facility
Interest Expense, Debt [Abstract]
Amortization of debt issuance costs	0.8	0.8
Amortization of debt discount	1.4	1.4
Total interest expense related to the Notes	$ 2.2	$ 2.2

Debt - Second Amended and Resta

Debt - Second Amended and Restated Credit Agreement (Details) - USD ($)				3 Months Ended
	May 02, 2023	Aug. 24, 2022	May 25, 2022	Sep. 30, 2023	Sep. 30, 2022	May 25, 2023	Nov. 25, 2022	Nov. 24, 2022	Dec. 10, 2021	Jun. 30, 2019
Letter of Credit
Line of Credit Facility [Line Items]
Standby letters of credit outstanding				$ 60,000,000
Term Loan Facility | Line of Credit
Line of Credit Facility [Line Items]
Proceeds from lines of credit				696,400,000
Debt discount				33,800,000
Debt issuance costs				$ 19,800,000
Effective interest rate				14.30%		14.30%	13.70%	10.20%
Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity										$ 500,000,000
Amended and Restated Credit Agreement | Letter of Credit | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity (greater than)										$ 250,000,000
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 400,000,000								$ 500,000,000
Line of credit facility, liquidity covenant		$ 250,000,000
Line of credit facility, maximum amount outstanding during period	3,000,000,000	$ 3,000,000,000
Line of credit facility, non-consenting commitments reduced	28,000,000
Line of credit facility, consenting commitments reduced	$ 372,000,000
Commitment fees incurred				$ 300,000	$ 400,000
Debt issuance costs of revolving credit facility			$ 1,100,000
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | SOFR | Floor Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			0%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.75%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | June 20, 2024 Maturity
Line of Credit Facility [Line Items]
Commitment fee percentage			0.375%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | June 20, 2024 Maturity | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.75%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | December 10, 2026 Maturity
Line of Credit Facility [Line Items]
Commitment fee percentage			0.325%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | December 10, 2026 Maturity | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.25%
Second Amended and Restated Credit Agreement | Revolving Credit Facility | Line of Credit | December 10, 2026 Maturity | Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.25%
Second Amended and Restated Credit Agreement | Term Loan Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 750,000,000
Maximum borrowing capacity (greater than)				$ 740,600,000
Quarterly installments payable			0.25%
Basis spread on variable rate			0.50%
Second Amended and Restated Credit Agreement | Term Loan Facility | Line of Credit | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate			6.50%
Second Amended and Restated Credit Agreement | Term Loan Facility | Line of Credit | SOFR | Floor Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.50%
Second Amended and Restated Credit Agreement | Term Loan Facility | Line of Credit | Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			5.50%
Second Amended and Restated Credit Agreement | Term Loan Facility | Line of Credit | Alternative Base Rate | Floor Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate			1%
Second Amended and Restated Credit Agreement | Term Loan Facility | Convertible Senior Notes Outstanding On November 16, 2025
Line of Credit Facility [Line Items]
Maximum borrowing capacity (greater than)			$ 200,000,000
Second Amended Credit Agreement | Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity									500,000,000
Second Amended Credit Agreement | Revolving Credit Facility | Line of Credit | June 20, 2024 Maturity
Line of Credit Facility [Line Items]
Maximum borrowing capacity									35,000,000
Second Amended Credit Agreement | Revolving Credit Facility | Line of Credit | December 10, 2026 Maturity
Line of Credit Facility [Line Items]
Maximum borrowing capacity									$ 465,000,000

Commitments and Contingencies -

Commitments and Contingencies - Minimum Guarantee Royalty Payments Due (Details) - Royalty Guarantees, Commitments $ in Millions	Sep. 30, 2023 USD ($)
Future Minimum Payments
2024 (remaining)	$ 84.1
2025	48.8
2026	5
Total	$ 138

Commitment and Contingencies -

Commitment and Contingencies - Actual and Future Returns and Written Down and Logistics Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Other Commitments [Line Items]
Returns accrual for (benefit)/reduction to Connected Fitness Products revenue	$ 595.5	$ 616.5
Costs of product recalls	310.1	399.3
Connected Fitness Products
Other Commitments [Line Items]
Returns accrual for (benefit)/reduction to Connected Fitness Products revenue	180.6	204.2
Costs of product recalls	174.9	259.8
Connected Fitness Products
Other Commitments [Line Items]
Returns accrual for (benefit)/reduction to Connected Fitness Products revenue	180.6	204.2
Costs of product recalls	174.9	259.8
Connected Fitness Products | Connected Fitness Products
Other Commitments [Line Items]
Costs of product recalls	(0.1)	2.5
Connected Fitness Products | Sales Returns and Allowances
Other Commitments [Line Items]
Returns accrual for (benefit)/reduction to Connected Fitness Products revenue	$ (1.6)	$ 26.5

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions			1 Months Ended
	Apr. 17, 2023	Aug. 04, 2022	Dec. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Commitments [Line Items]
Amount awarded to other party			$ 19.1
Litigation settlement, amount awarded from other party	$ 14
Estimate of potential damages and attorney fees		$ 107
Manufactured Product
Other Commitments [Line Items]
Commitments to contract with third-party manufacturers				$ 169.3
Commitments to contract with third-party manufacturers next twelve months				162.9
Sales Returns and Allowances | Product Recalls
Other Commitments [Line Items]
Accrued of estimated contingent loss expense				8.7
Sales Returns and Allowances | Connected Fitness Products
Other Commitments [Line Items]
Return reserve liability				17.6	$ 57.9
Accounts payable and accrued expenses				$ 10

Equity-Based Compensation - Nar

Equity-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended		30 Months Ended
	Jul. 01, 2022 USD ($) $ / shares shares	Sep. 30, 2019 period	Sep. 30, 2023 USD ($) employee $ / shares shares	Sep. 30, 2022 USD ($) employee $ / shares	Aug. 31, 2023 $ / shares shares	Jul. 01, 2023 shares
Class of Stock [Line Items]
Aggregate intrinsic value			$ 5	$ 3.1
Exercised, weighted-average exercise price (in dollars per share) | $ / shares			$ 3.56
Stock-based compensation expense	$ 21.9		$ 5.4	43.4
Options vested				$ 4.7
Weighted-average grant date fair value per option (in dollars per share) | $ / shares			$ 0	$ 6.74
Stock-based compensation expense			$ 74.2	$ 182.1
Minimum
Class of Stock [Line Items]
Post-termination period during which an employee may exercise outstanding stock options extended term			90 days
Maximum
Class of Stock [Line Items]
Post-termination period during which an employee may exercise outstanding stock options extended term			2 years 9 months 18 days
2019 Equity Incentive Plan
Class of Stock [Line Items]
Original exercise price lower range (in dollars per share) | $ / shares	$ 12.94
Original exercise price upper range (in dollars per share) | $ / shares	$ 146.79
Granted (in shares) | shares	2,138
Exercised, weighted-average exercise price (in dollars per share) | $ / shares	$ 9.13
Severance Plan
Class of Stock [Line Items]
Number of employees eligible, terminated their employment | employee			1	6
Severance Plan | Minimum
Class of Stock [Line Items]
Post-termination period during which an employee may exercise outstanding stock options extended term			90 days
Severance Plan | Maximum
Class of Stock [Line Items]
Post-termination period during which an employee may exercise outstanding stock options extended term			1 year
ESPP
Class of Stock [Line Items]
Expected dividend yield			0%
Stock-based compensation expense			$ 1.1	$ 7.6
Unrecognized stock-based compensation expense			$ 13.3
Unrecognized stock-based compensation expense, period for recognition (in years)			1 year 10 months 24 days
ESPP | 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of purchase periods | period		4
Purchase period (in months)		6 months
Commencement of offering period (in years)		2 years
Commencement of purchase period (in months)		6 months
Employee Stock Options
Class of Stock [Line Items]
Expected dividend yield				0%
Unrecognized stock-based compensation expense			$ 617.6
Unrecognized stock-based compensation expense, period for recognition (in years)			2 years 9 months 18 days
Class A Common Stock | 2019 Equity Incentive Plan
Class of Stock [Line Items]
Increase in number of shares authorized, as a percentage of total common stock outstanding		5%
Increase in number of shares available for future issuance (in shares) | shares						17,838,381
Number of shares available for future issuance (in shares) | shares			45,426,988
Class A Common Stock | ESPP
Class of Stock [Line Items]
Number of shares purchased under ESPP (in shares) | shares					373,114
Weighted-average price of shares purchased under ESPP (in dollars per share) | $ / shares					$ 5.42
Class A Common Stock | ESPP | 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Increase in number of shares authorized, as a percentage of total common stock outstanding		1%
Increase in number of shares available for future issuance (in shares) | shares						3,567,676
Number of shares available for future issuance (in shares) | shares			15,821,314
Purchase price of common stock, percentage of fair market value		85%

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2023
Stock Options Outstanding, Number of Stock Options
Stock options outstanding, beginning balance (in shares)	42,999,273
Exercised (in shares)	(1,403,292)
Forfeited or expired (in shares)	(4,499,768)
Stock options outstanding, ending balance (in shares)	37,096,213		42,999,273
Stock options vested and exercisable (in shares)	26,550,020
Stock Options Outstanding, Weighted-Average Exercise Price
Stock options outstanding, weighted average exercise price, beginning balance (in dollars per share)	$ 19.71
Exercised, weighted-average exercise price (in dollars per share)	3.56
Forfeited or expired, weighted-average exercise price (in dollars per share)	26.26
Stock options outstanding, weighted average exercise price, ending balance (in dollars per share)	19.53		$ 19.71
Stock options vested and exercisable, weighted-average exercise price (in dollars per share)	$ 17.07
Stock options outstanding, weighted-average remaining contractual term (in years)	5 years 7 months 6 days		5 years 2 months 12 days
Stock options vested and exercisable, weighted-average remaining contractual term (in years)	4 years 7 months 6 days
Stock options outstanding, aggregate intrinsic value	$ 33.2
Stock options exercised, aggregate intrinsic value	5	$ 3.1
Stock options outstanding, aggregate intrinsic value	13.4		$ 33.2
Stock options vested and exercisable, aggregate intrinsic value	$ 13.4

Equity-Based Compensation - S_2

Equity-Based Compensation - Summary of Unvested Stock Option Activity (Details)	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Options
Unvested options, beginning balance (in shares) | shares	12,407,094
Vested (in shares) | shares	(1,365,473)
Forfeited or expired (in shares) | shares	(495,428)
Unvested options, ending balance (in shares) | shares	10,546,193
Weighted-Average Grant Date Fair Value
Unvested options, weighted-average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 18.84
Unvested options, weighted-average grant date fair value, vested (in dollars per share) | $ / shares	18.90
Unvested options, weighted-average grant date fair value, forfeited or expired (in dollars per share) | $ / shares	18.11
Unvested options, weighted-average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 18.86

Equity-Based Compensation - S_3

Equity-Based Compensation - Summary of Fair Value Assumptions (Details)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average risk-free interest rate		2.90%
Weighted average expected term (in years)		6 years 2 months 12 days
Weighted average expected volatility		79.90%
Expected dividend yield		0%
Shares estimated to be purchased under ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average risk-free interest rate	1.60%
Weighted average expected term (in years)	1 year 3 months 18 days
Weighted average expected volatility	92.40%
Expected dividend yield	0%

Equity-Based Compensation - S_4

Equity-Based Compensation - Summary of Restricted Stock and Restricted Stock Units (Details) - Restricted Stock	3 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Awards
Outstanding, beginning balance (in shares) | shares	27,236,428
Granted (in shares) | shares	21,883,719
Vested and converted to shares (in shares) | shares	(1,879,153)
Cancelled (in shares) | shares	(1,896,767)
Outstanding, ending balance (in shares) | shares	45,344,227
Weighted-Average Grant Date Fair Value
Outstanding, weighted-average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 13.96
Granted, weighted-average grant date fair value (in dollars per share) | $ / shares	6.73
Vested and converted to shares, weighted-average grant date fair value (in dollars per share) | $ / shares	20.34
Cancelled, weighted-average grant date fair value (in dollars per share) | $ / shares	13.31
Outstanding, weighted-average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 10.23

Equity-Based Compensation - S_5

Equity-Based Compensation - Summary of Sock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 74.2	$ 182.1
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	12	20.1
Cost of revenue | Connected Fitness Products
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2.3	7.3
Cost of revenue | Subscription
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	9.7	12.7
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4.7	10.7
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	35.4	52.3
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	14.9	22.2
Restructuring expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 7.2	$ 76.8

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 0.8	$ 0.8
Effective tax rate	(0.50%)	(0.20%)

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Computation of Basic and Diluted net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Basic and diluted loss per share:
Net loss attributable to common stockholders, basic	$ (159.3)	$ (408.5)
Net loss attributable to common stockholders, diluted	$ (159.3)	$ (408.5)
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	358,547,563	339,011,157
Weighted-average common shares outstanding, diluted (in shares)	358,547,563	339,011,157
Basic loss per share (in dollars per share)	$ (0.44)	$ (1.20)
Diluted loss per share (in dollars per share)	$ (0.44)	$ (1.20)

Net Loss Per Share - Schedule_2

Net Loss Per Share - Schedule of Potentially Diluted Securities Not Included In Calculation of Diluted Shares Outstanding (Details) - shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	8,703,141	15,944,915
Restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	993,473	133,396

Net Loss Per Share - Narrative

Net Loss Per Share - Narrative (Details)	Feb. 28, 2021 $ / shares
Convertible Notes Maturing February 15, 2026 | Convertible Debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Debt instrument, conversion price (in dollars per share)	$ 239.23

Segment Information - Schedule

Segment Information - Schedule of Key Performance Measures by Segment (Details) $ in Millions	3 Months Ended
	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2
Segment Reporting Information [Line Items]
Revenue	$ 595.5	$ 616.5
Cost of revenue	310.1	399.3
Gross profit	285.4	217.2
Connected Fitness Products
Segment Reporting Information [Line Items]
Revenue	180.6	204.2
Cost of revenue	174.9	259.8
Gross profit	5.7	(55.6)
Subscription
Segment Reporting Information [Line Items]
Revenue	415	412.3
Cost of revenue	135.2	139.5
Gross profit	$ 279.7	$ 272.8

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Gross Profit	$ 285.4	$ 217.2
Sales and marketing	(146)	(138.7)
General and administrative	(151.1)	(193.5)
Research and development	(78.7)	(88.1)
Impairment expense	(24)	(62.9)
Restructuring expense	(17.8)	(106.9)
Supplier settlements	0	(1.1)
Total other expense, net	(26.2)	(33.7)
Loss before provision for income taxes	$ (158.5)	$ (407.7)

Uncategorized Items - pton-2023

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]