0001639825-20-000122 | 10-K | XBRL Viewer

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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Jun. 30, 2020	Aug. 31, 2020	Dec. 31, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-39058
Entity Registrant Name	Peloton Interactive, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3533761
Entity Address, Address Line One	125 West 25th Street, 11th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	866
Local Phone Number	679-9129
Title of 12(b) Security	Class A common stock, $0.000025 par value per share
Trading Symbol	PTON
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 6,281,462,442
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders, or Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Parts II and III. Except with respect to information specifically incorporated by reference in this Annual Report, the Proxy Statement shall not be deemed to be filed as part hereof.
Entity Central Index Key	0001639825
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		239,427,396
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		49,261,234

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 1,035.5	$ 162.1
Marketable securities	719.5	216.0
Accounts receivable, net	34.6	18.5
Inventories, net	244.5	136.6
Prepaid expenses and other current assets	124.5	48.4
Total current assets	2,158.6	581.7
Property and equipment, net	242.3	249.7
Intangible assets, net	16.0	19.5
Goodwill	39.1	4.3
Restricted cash	1.5	0.8
Right-of-use assets, net	492.5
Other assets	31.8	8.5
Total assets	2,981.8	864.5
Current liabilities:
Accounts payable	135.8	92.2
Accrued expenses	225.9	104.5
Customer deposits and deferred revenue	363.6	90.8
Current portion of lease liabilities and other current liabilities	46.9	3.3
Total current liabilities	772.2	290.8
Deferred rent		23.7
Build-to-suit liability		147.1
Long term lease liabilities, net	508.2
Other non-current liabilities	23.4	0.4
Total liabilities	1,303.8	462.0
Commitments and contingencies (Note 13)
Redeemable convertible preferred stock, $0.000025 par value, zero and 215,443,468 shares authorized; zero and 210,640,629 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively.	0.0	941.1
Stockholders’ equity (deficit)
Common stock, $0.000025 par value; 2,500,000,000 and zero Class A shares authorized, 237,518,574 and zero shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively; 2,500,000,000 and 400,000,000 Class B shares authorized, 50,538,538 and 25,301,604 shares issued and outstanding as of June 30, 2020 and June 30, 2019, respectively.	0.0	0.0
Additional paid-in capital	2,361.8	90.7
Accumulated other comprehensive income	10.1	0.2
Accumulated deficit	(693.9)	(629.5)
Total stockholders’ equity (deficit)	1,678.0	(538.6)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)	$ 2,981.8	$ 864.5

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Redeemable convertible preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Redeemable convertible preferred stock, shares authorized (in shares)	0	215,443,468
Redeemable convertible preferred stock, shares issued (in shares)	0	210,640,629
Redeemable convertible preferred stock, shares outstanding (in shares)	0	210,640,629
Current portion of lease liabilities and other current liabilities	$ 46.9	$ 3.3
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	0
Common stock, shares issued (in shares)	237,518,574	0
Common stock, shares outstanding (in shares)	237,518,574	0
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	400,000,000
Common stock, shares issued (in shares)	50,538,538	25,301,604
Common stock, shares outstanding (in shares)	50,538,538	25,301,604

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Revenue	$ 1,825.9	$ 915.0	$ 435.0
Cost of revenue	989.1	531.4	245.4
Gross profit	836.7	383.6	189.6
Operating expenses:
Sales and marketing	477.0	324.0	151.4
General and administrative	351.6	207.0	62.4
Research and development	89.0	54.8	23.4
Total operating expenses	917.6	585.8	237.1
Loss from operations	(80.8)	(202.3)	(47.5)
Other income, net:
Interest income, net	16.2	7.0	(0.3)
Other expense, net	(3.8)	(0.3)	0.0
Total other income (expense), net	12.4	6.7	(0.3)
Loss before provision for income taxes	(68.4)	(195.6)	(47.8)
Income tax expense	3.3	0.1	0.1
Net loss	(71.6)	(195.6)	(47.9)
Net loss attributable to Class A and Class B common stockholders	$ (71.6)	$ (245.7)	$ (47.9)
Net loss per share attributable Class A and Class B common stockholders (in dollars per share)	$ (0.32)	$ (10.72)	$ (2.18)
Weighted-average Class A and Class B common shares outstanding, basic and diluted (in shares)	220,952,237	22,911,764	21,934,228
Other comprehensive income:
Net unrealized gains on marketable securities	$ 3.9	$ 0.2	$ 0.0
Change in foreign currency translation adjustment	6.0	0.0	0.0
Total other comprehensive income	9.9	0.2	0.0
Comprehensive loss	(61.7)	(195.4)	(47.9)
Connected Fitness Products
Revenue	1,462.2	733.9	354.7
Cost of revenue	833.5	427.8	199.9
Subscription
Revenue	363.7	181.1	80.3
Cost of revenue	$ 155.7	$ 103.7	$ 45.5

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net loss	$ (71.6)	$ (195.6)	$ (47.9)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	40.2	21.7	6.6
Stock-based compensation expense	88.8	89.5	8.5
Non-cash operating lease expense	47.7
Other non-cash items	6.4	(1.4)	1.0
Changes in operating assets and liabilities:
Accounts receivable	11.3	(9.1)	(4.1)
Inventories	(96.8)	(111.3)	(9.6)
Prepaid expenses and other current assets	(33.1)	(30.3)	(12.1)
Other assets	(22.1)	(5.5)	1.4
Accounts payable and accrued expenses	133.4	117.3	41.0
Customer deposits and deferred revenue	272.3	2.2	63.0
Operating lease liabilities, net	(23.6)
Other liabilities	23.5	13.8	1.9
Net cash provided by (used in) operating activities	376.4	(108.6)	49.7
Cash Flows from Investing Activities:
Purchases of marketable securities	(1,199.6)	(249.8)	0.0
Maturities of marketable securities	435.4	36.0	0.0
Sales of marketable securities	224.3	0.0	0.0
Cash paid for cost method investment	(0.1)	(0.6)	0.0
Acquisition of business, net of cash acquired	(45.0)	(0.1)	(28.7)
Purchases of property and equipment	(156.4)	(83.0)	(28.0)
Net cash used in investing activities	(741.3)	(297.5)	(56.7)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock upon initial public offering, net of offering costs	1,195.7	0.0	0.0
Repurchase of common and convertible preferred stock, including issuance costs	0.0	(130.3)	0.0
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	0.0	539.1	0.0
Proceeds from employee stock purchase plan withholdings	7.0	0.0	0.0
Repayments of debt	0.0	0.0	(3.1)
Debt issuance costs	0.0	(0.9)	(1.2)
Proceeds from exercise of stock options	37.4	9.3	7.4
Net cash provided by financing activities	1,240.2	417.2	3.1
Effect of exchange rate changes	(1.2)	0.2	0.0
Net change in cash, cash equivalents, and restricted cash	874.0	11.3	(3.9)
Cash, cash equivalents and restricted cash — Beginning of period	163.0	151.6	155.5
Cash, cash equivalents and restricted cash — End of period	1,037.0	163.0	151.6
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	1.9	1.1	0.3
Cash paid for income taxes	4.1	0.0	0.0
Supplemental Disclosures of Non-Cash Investing and Financing Information:
Conversion of convertible preferred stock to common stock	(941.1)	0.0	0.0
Property and equipment accrued but unpaid	18.2	12.6	4.3
Building - build-to-suit asset		147.1	0.0
Stock-based compensation capitalized for software development costs	$ 2.2	$ 0.8	$ 0.3

CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Redeemable Convertible Preferred Stock	Common Stock Class A and Class B Common Stock	Additional Paid-In Capital	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment	Other Comprehensive Income	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Jun. 30, 2017			176,300,000
Beginning balance at Jun. 30, 2017			$ 406.3
Ending balance (in shares) at Jun. 30, 2018			176,300,000
Ending balance at Jun. 30, 2018			$ 406.3
Beginning balance (in shares) at Jun. 30, 2017				20,200,000
Beginning balance at Jun. 30, 2017	$ (281.6)			$ 0.0	$ 6.1	$ 0.5	$ 0.0	$ (287.7)	$ (0.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)				5,700,000
Exercise of stock options	5.3				5.3
Activity related to stock-based compensation	8.6				8.6
Other comprehensive income	0.0
Net loss	(47.9)							(47.9)
Ending balance (in shares) at Jun. 30, 2018				25,900,000
Ending balance at Jun. 30, 2018	$ (315.6)			$ 0.0	20.5		0.0	(336.1)
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Series F redeemable convertible preferred stock, net (in shares)			38,100,000
Issuance of Series F redeemable convertible preferred stock, net			$ 539.1
Repurchase of common and preferred stock (in shares)			(3,800,000)
Repurchase of common and preferred stock			$ (4.3)
Ending balance (in shares) at Jun. 30, 2019	210,640,629		210,600,000
Ending balance at Jun. 30, 2019	$ 941.1		$ 941.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)				4,200,000
Exercise of stock options	8.2				8.2
Activity related to stock-based compensation	62.1				62.1
Repurchase of common and preferred stock (in shares)				(4,800,000)
Repurchase of common and preferred stock	(97.8)							(97.8)
Other comprehensive income	0.2						0.2
Net loss	(195.6)							(195.6)
Ending balance (in shares) at Jun. 30, 2019				25,300,000
Ending balance at Jun. 30, 2019	$ (538.6)	$ 7.2		$ 0.0	90.7		0.2	(629.5)	$ 7.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201602Member
Conversion of redeemable convertible preferred stock to common stock (in shares)			(210,600,000)
Conversion of redeemable convertible preferred stock to common stock			$ (941.1)
Ending balance (in shares) at Jun. 30, 2020	0		0
Ending balance at Jun. 30, 2020	$ 0.0		$ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	7,815,137
Activity related to stock-based compensation (in shares)				8,500,000
Activity related to stock-based compensation	$ 130.7				130.7
Initial public offering, net of issuance costs (in shares)				43,400,000
Initial public offering, net of issuance costs	1,195.7				1,195.7
Conversion of redeemable convertible preferred stock to common stock (in shares)				210,600,000
Conversion of redeemable convertible preferred stock to common stock	941.1				941.1
Issuance of common stock under employee stock purchase plan (in shares)				200,000
Issuance of common stock under employee stock purchase plan	3.7				3.7
Other comprehensive income	9.9						9.9
Net loss	(71.6)							(71.6)
Ending balance (in shares) at Jun. 30, 2020				288,100,000
Ending balance at Jun. 30, 2020	$ 1,678.0			$ 0.0	$ 2,361.8		$ 10.1	$ (693.9)

CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) $ in Millions	12 Months Ended
	Jun. 30, 2020 USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 6.3

Description of Business and Basis of Presentation	12 Months Ended
Description of Business and Basis of Presentation	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Description and Organization Peloton Interactive, Inc. ("Peloton" or the “Company”) is the largest interactive fitness platform in the world with a loyal community of Members, which we define as any individual who has a Peloton account through a paid Connected Fitness Subscription or a paid Peloton Digital Subscription. The Company pioneered connected, technology-enabled fitness with the creation of its interactive fitness equipment ("Connected Fitness Products") and the streaming of immersive, instructor-led boutique classes to its Members anytime, anywhere. The Company makes fitness entertaining, approachable, effective and convenient while fostering social connections that encourage its Members to be the best versions of themselves. During the fourth quarter of fiscal 2020, following its annual strategy setting and budgeting process, the Company's chief operating decision maker (“CODM”) changed how they assess performance and allocate resources. Based on this change, in the fourth quarter of fiscal 2020, the Company determined it has two operating and reportable segments: Connected Fitness Products and Subscription. The Company revised prior comparative periods to conform to the current period segment presentation. See Note 19 of the notes to the consolidated financial statements for further discussion of the Company's segment reporting structure. In September 2019, the Company closed its initial public offering ("IPO") and a concurrent private placement, in which it issued and sold 43,448,275 shares of its Class A common stock. The price per share to the public in the IPO and in the concurrent private placement was $29.00 per share. The Company received aggregate proceeds of $1.2 billion, net of the underwriting discount and offering costs. Prior to the closing of the IPO, all shares of the Company's common stock then outstanding were redesignated into 25,301,604 shares of Class B common stock, and upon the closing of the IPO, all shares of the Company's then outstanding preferred stock automatically converted into 210,640,629 shares of Class B common stock on a one-to-one basis. Basis of Presentation and Consolidation The accompanying 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"). The consolidated financial statements include the accounts of Peloton Interactive, Inc. and its subsidiaries in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated. 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.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all cash and short-term investments purchased with maturities of three months or less when acquired to be cash equivalents. As of June 30, 2020 and 2019, the Company’s cash and cash equivalents were primarily held in money market and operating accounts. At various times during the fiscal years ended June 30, 2020 and 2019, the balances of cash at financial institutions exceeded the federally insured limit. The Company has not experienced any losses in such accounts and believes its cash and cash equivalents are not subject to any significant credit risk. Restricted Cash Restricted cash primarily consists of cash held in reserve accounts related to operating lease obligations. Accounts Receivable, Net of Allowances The Company's accounts receivable primarily represent amounts due from third-party sales processors. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, which to date have not been material, and provides allowances, as necessary, for doubtful accounts. Revenue Recognition On July 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 and all subsequent amendments. The Company elected to apply the standard and all related ASUs retrospectively to each prior reporting period presented. The adoption of the new standard had no material impact on the measurement or recognition of revenue, resulting in no adjustments to the prior periods. Additional disclosures, however, have been added in accordance with ASU 2014-09. Refer to Note 3, Revenue. Inventories Inventories consist of finished goods, work-in-process and raw materials. Finished goods are manufactured by us and purchased from contract manufacturers. Connected Fitness Product, accessories, and apparel inventories are stated at the lower of cost or net realizable value on a weighted-average cost basis. The Company assesses the valuation of inventory and periodically adjusts the value for estimated excess and obsolete inventory based upon estimates of future demand and market conditions, as well as damaged or otherwise impaired goods. Spare parts are recorded as inventory and recognized in cost of goods sold as consumed. Marketable Securities The Company classifies its marketable debt securities as available-for-sale and, accordingly, records them at fair value. Marketable securities with original maturities of greater than three months and remaining maturities of less than one year are classified as current investments. Investments with maturities beyond one year may be classified as current based on their highly liquid nature. Unrealized holding gains and losses, are excluded from earnings and are reported net of tax in other comprehensive income until realized. Dividend and interest income is recognized when earned. Realized gains and losses, are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. For leasehold improvements, the useful life is the lesser of the applicable lease term or the expected asset life. Charges for repairs and maintenance that do not improve or extend the lives of the respective assets are expensed as incurred. The Company capitalizes the cost of pre-production tooling which it owns during a supply arrangement. Pre-production tooling, including the related engineering costs the Company will not own or will not be used in producing products under long-term supply arrangements are expensed as incurred. Internal-Use Software The Company capitalizes certain qualified costs incurred in connection with the development of internal-use software. 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. Goodwill and Intangible Assets Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest, if any, over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company has no intangible assets with indefinite useful lives. Intangible assets other than goodwill are comprised of acquired developed technology. At initial recognition, intangible assets acquired in a business combination are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset. The Company reviews goodwill for impairment annually on April 1 of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting its annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting unit is less than its carrying amount, the Company performs a quantitative assessment and the fair value of the reporting unit is determined by analyzing the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The Company assesses the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted net future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds fair value. Cost of Revenue Connected Fitness Products Cost of revenue consists of product costs, including manufacturing costs, duties and other applicable importing costs, shipping and handling costs, packaging, warranty replacement costs, fulfillment costs, warehousing costs, and certain allocated costs related to management, facilities, and personnel-related expenses associated with supply chain logistics. Subscription Subscription cost of revenue includes costs associated with content creation and cost to stream content to Members across the Company’s platform. These costs consist of both fixed costs, including studio rent and overhead costs and instructor and production personnel costs, as well as variable costs, including music royalty fees, content costs for past use, third-party platform streaming costs, and payment processing fees for monthly subscription billings. Music Royalty Fees The Company recognizes music royalty fees on all music it streams to Members as these fees are incurred in accordance with the terms of the relevant license agreement with the music rights holder. The incurrence of the royalties is primarily driven by content usage by the Company’s Members through the use of a paid subscription, or as part of a free-trial offer and it is classified as subscription cost of revenue or sales and marketing expense, respectively, within the Company’s statement of operations and comprehensive loss. The Company’s license agreements with music rights holders generally include provisions for advance royalties as well as minimum guarantees. When a minimum guarantee is paid in advance, the guarantee is recorded as a cost to fulfill or prepaid asset and amortized over the shorter of the period consumed or the term of the agreement. As the Company executes music license agreements with various music rights holders for go-forward usage, the Company may also simultaneously enter into a settlement agreement whereby the Company is released from all potential licensor claims regarding the Company’s alleged past use of copyrighted material in exchange for a negotiated payment. These are referred to as “content costs for past use” and are recorded within subscription cost of revenue. The Company has entered into agreements with music rights holders who represent all the music catalogs that the Company needs to operate its service, however, given the uncertain and opaque nature of music rights ownership, the Company’s archived library may continue to include music for which certain rights or fractional interests have not been accurately determined or fully licensed. Prior to the execution of a music license agreement, the Company estimates and records a charge based upon license agreements previously entered into and the respective music rights holdings. Income Taxes The Company utilizes the asset and liability method for computing its income tax provision. Deferred tax assets and liabilities reflect the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities as well as operating loss, capital loss, and tax credit carryforwards, using enacted tax rates. Management makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits, which to date have not been material, are recognized within income tax expense. Advertising Costs Advertising and other promotional costs to market the Company's products are expensed as incurred. Advertising expenses were $302.8 million, $218.8 million and $101.4 million for the fiscal years ended June 30, 2020, 2019 and 2018, respectively, and are included within sales and marketing expenses in the consolidated statement of operations. Research and Development Costs Research and development expenses consist primarily of personnel- and facilities-related expenses, consulting and contractor expenses, tooling and prototype materials and software platform expenses. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses are expensed as incurred. We capitalize certain qualified costs incurred in connection with the development of internal-use software. Stock-Based Compensation In August 2019, the Company's Board of Directors ("Board of Directors") adopted the 2019 Employee Stock Purchase Plan ("ESPP"), which was subsequently approved by the Company’s stockholders in September 2019. The Company recognizes stock-based compensation expense related to shares issued pursuant to its ESPP on a straight-line basis over the offering period, which is twenty-four months. The ESPP allows employees to purchase shares of the Company's Class A common stock at a 15 percent discount. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. 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. Stock-based awards are measured at the grant date based on the fair value of the award and are recognized as expense, net of actual forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. For performance-based awards issued, the value of the instrument is measured at the grant date as the fair value of the award and expensed over the vesting term under an accelerated attribution method when the performance targets are considered probable of being achieved. The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The determination of the grant date fair value of stock awards issued is affected by a number of variables, including the fair value of the Company’s common stock, the expected common stock price volatility over the expected life of the awards, the expected term of the stock option, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The Company derives its volatility from the average historical stock volatilities of several peer public companies over a period equivalent to the expected term of the awards. The Company estimates the expected term based on the simplified method for employee stock options considered to be “plain vanilla” options, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant. Expected dividend yield is 0.0% as the Company has not paid and does not currently anticipate paying dividends on its common stock. Generally, the 2019 Plan permits the early exercise of stock options granted prior to the IPO. The unvested portion of shares exercised is recorded as a liability on the Company’s balance sheet and reclassified to equity as vesting occurs. Defined Contribution Plan The Company maintains a 401(k) savings plan covering all employees. Participating employees may contribute a portion of their salary into the savings plan, subject to certain limitations. The Company matches 100% of each employee's contributions, up to a maximum of 4% of the employee's eligible earnings. For the fiscal years ended June 30, 2020, 2019, and 2018, the Company's matching contributions totaled $8.4 million, $4.3 million, and $1.6 million, respectively, and were expensed as contributed. Common Stock Valuations The Company has historically granted stock options at exercise prices equal to the fair value as determined by the Board of Directors on the date of grant. Prior to the Company's IPO, in the absence of a public trading market, the Board of Directors, with input from management, exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the Company’s common stock as of the date of each stock option grant, including: •relevant precedent transactions involving the Company’s capital stock; •the liquidation preferences, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to the common stock; •the Company’s actual operating and financial performance; •current business conditions and projections; •the Company’s stage of development; •the likelihood and timing of achieving a liquidity event for the shares of common stock underlying the stock options, such as an initial public offering, given prevailing market conditions; •any adjustment necessary to recognize a lack of marketability of the common stock underlying the granted options; •recent secondary stock sales and tender offers; •the market performance of comparable publicly traded companies; and •U.S. and global capital market conditions. In addition, prior to the Company's IPO, the Board of Directors considered the independent valuations completed by a third-party valuation consultant. The valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Subsequent to the IPO, the fair value of the common stock is the closing stock price of the Company's Class A common stock as reported on the Nasdaq Global Select Market. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss or states that such an estimate cannot be made. Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurement or assumptions that market participants would use in pricing the assets or liabilities, such as inherent risk, transfer restrictions, and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. •Level 2 inputs are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s material financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, and accrued expenses. The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses approximated their fair values at June 30, 2020 and 2019, due to the short period of time to maturity or repayment. Earnings (Loss) Per Share The Company computes earnings (loss) per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s redeemable convertible preferred stock, restricted stock awards, and common stock issued upon early exercise of stock options are participating securities. The Company considers any shares issued upon early exercise of stock options, subject to repurchase, to be participating securities because holders of such shares have non-forfeitable dividend rights in the event a cash dividend is declared on common stock. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities. Basic earnings (loss) per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings (loss) per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options, ESPP shares to be issued, and vesting of restricted stock awards. During the fiscal year ended June 30, 2019, the excess of the repurchase price of preferred stock over its carrying value (see Note 18) has been recorded as an increase to net loss to determine net loss attributable to common stockholders. Use of Estimates The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to revenue related reserves, the realizability of inventory, content costs for past use reserve, fair value measurements including common stock valuations, the incremental borrowing rate associated with lease liabilities, useful lives of property and equipment, product warranty, goodwill and finite-lived intangible assets, accounting for income taxes, stock-based compensation expense, transaction price estimates, the fair values of assets acquired and liabilities assumed in business combinations, contingent consideration, and commitments and contingencies. Actual results may differ from these estimates. Recently Issued Accounting Pronouncements Accounting Pronouncements Recently Adopted ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases, which introduced and codified new lease accounting guidance under Accounting Standards Codification No. 842, Leases ("ASC 842"). ASC 842 requires a lessee to separate the lease components from the non-lease components in a contract and recognize in the statement of financial position a lease payment liability and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted this ASU and related amendments as of July 1, 2019 under the modified retrospective approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients and, as permitted, the Company did not assess whether existing contracts are or contain leases, the lease classification for any existing leases, and identification of initial direct costs for any existing leases. In addition, the Company elected to apply the practical expedient that allows for the combination of lease and non-lease components. Adoption of the new standard resulted in the recognition of right-of-use assets and operating lease liabilities on the Company's consolidated balance sheet. In addition, the Company de-recognized a build-to-suit arrangement in accordance with the transition requirements, which resulted in an adjustment to retained earnings. The standard did not materially impact the Company's consolidated statements of operations and comprehensive loss. See Note 11 for further discussion of the Company's accounting for leases under ASC 842. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The standard is effective for public entities for annual or any interim goodwill impairment tests in annual reporting years beginning after December 15, 2019. For all other entities, including emerging growth companies, the standard is effective for annual or any interim goodwill impairment tests in annual reporting years beginning after December 15, 2021. Early adoption of this standard is permitted. The Company adopted this ASU on July 1, 2019. The standard did not materially impact the Company's consolidated financial statements. ASU 2018-07 In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company adopted this ASU on July 1, 2019. The standard did not materially impact the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This standard changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which may result in earlier recognition of allowances for losses, and require expected credit losses to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The Company has completed its assessment and adopted this standard on July 1, 2020. The standard did not materially impact the Company's consolidated financial statements. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which amends ASC Topic 740, Income Taxes. This ASU simplifies the accounting for income taxes by modifying the treatment of intraperiod tax allocation in certain circumstances, eliminating an exception to recognizing deferred tax liabilities for outside basis differences for foreign equity method investments and foreign subsidiaries when ownership or control changes, and modifying interim period tax calculations when a loss is forecast. In addition, this ASU also requires that enacted changes in tax laws or rates be included in the annual effective rate determination in the period that includes the enactment date and clarifies the tax accounting of a step up in tax basis of goodwill. The Company has completed its assessment and adopted this standard on July 1, 2020. The standard did not materially impact the Company's consolidated financial statements. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of adopting this new accounting guidance, but does not expect the adoption of the standard to have a material impact on its consolidated financial statements.

Revenue

12 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

The Company’s primary source of revenue is from sales of its Connected Fitness Products and associated recurring Subscription revenue.

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue is recognized when control of the promised goods or services 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 and discounts, as a reduction of the transaction price. The Company estimates its liability for product returns based on historical return trends by product category, impact of seasonality, and an evaluation of current economic and market conditions and records the expected customer refund liability as a reduction to revenue, and the expected inventory right of recovery as a reduction of cost of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur.

Some of the Company’s contracts with customers contain multiple performance obligations. For customer contracts that include multiple performance obligations, the Company accounts for individual performance obligations if they are distinct. The transaction price is then allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling price based on prices charged to customers.

Connected Fitness Products

Connected Fitness Products include the Company’s Bike and Tread, related accessories, branded apparel, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts when the product has been delivered to the customer, except for extended warranty revenue which is recognized over the warranty period. The Company allows customers to return products within thirty days of purchase, as stated in its return policy.

The Company records fees paid to third-party financing partners in connection with its consumer financing program as a reduction of revenue, as it considers such costs to be a customer sales incentive. The Company records payment processing fees for its credit card sales for Connected Fitness Products within Sales and marketing in the Company's consolidated statements of operations and comprehensive loss.

Subscription

The Company’s subscriptions provide unlimited access to content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month basis.

Amounts paid for subscription fees are included within customer deposits and deferred revenue and recognized ratably on a month-to-month basis. The Company records payment processing fees for its monthly subscription charges within cost of subscription revenue in the Company's 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 balance sheet.

Product Warranty

The Company offers a standard product warranty that its Connected Fitness Products will operate under normal, non-commercial use for a period of one year from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs, including costs associated with service of Connected Fitness Products outside of the warranty period, 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 both in-house and by contract manufacturers, and in certain cases, the Company may have recourse to such contract manufacturers.

The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 12 to 27 months.

Revenue and related fees paid to the third-party provider are recognized on a gross basis as the Company has a continuing obligation to perform over the service period. Extended warranty revenue is recognized ratably over the extended warranty coverage period and is included in Connected Fitness Product revenue in the consolidated statements of operations and comprehensive loss.

Disaggregation of Revenue

The Company's revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 19 under the heading "Segment Information".

The Company's revenue disaggregated by geographic region, were as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
North America⁽¹⁾	$	1,743.6	$	897.9	$	435.0
Rest of world ⁽²⁾	82.3		17.1		—
Total revenue	$	1,825.9	$	915.0	$	435.0

_________________________

(1) Consists of United States and Canada.

(2) Consists of United Kingdom and Germany.

The Company's revenue attributable to the United States represented 93%, 97%, and 100% of total revenue for the fiscal years ended June 30, 2020, 2019, and 2018, respectively.

Customer Deposits and Deferred Revenue

Deferred revenue is recorded for nonrefundable cash payments received for the Company’s performance obligation to transfer, or stand ready to transfer, goods or services in the future. Deferred revenue consists of subscription fees billed that have not been recognized. Customer deposits represent payments received in advance before the Company transfers a good or service to the customer and are refundable.

As of June 30, 2020 and June 30, 2019, customer deposits of $341.5 million and $81.3 million, respectively, and deferred revenue of $22.1 million and $9.5 million, respectively, were included in customer deposits and deferred revenue on the Company's consolidated balance sheet.

In the fiscal years ended June 30, 2020 and 2019, the Company recognized $9.5 million and $2.9 million, respectively, of revenue that was included in the deferred revenue balance as of June 30, 2019 and 2018, respectively.

Exemptions and Elections

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 selling and marketing expense.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Investments in Marketable Securities

12 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments in Marketable Securities

The following table summarizes the Company's investments in marketable securities:


	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Corporate bonds	$	397.7	$	2.1	$	(0.2)	$	399.6
U.S. treasury securities	300.5		1.9		—		302.4
Commercial paper	17.4		—		—		17.4
Certificate of deposits	38.6		0.1		—		38.7
	$	754.2	$	4.1	$	(0.2)	$	758.1
Less: Restricted marketable securities ⁽¹⁾							$	38.5
Total marketable securities							$	719.5

_________________________

(1) The Company is required to pledge or otherwise restrict a portion of cash, cash equivalents, and marketable securities as collateral for standby letters of credit. The Company classifies cash, cash equivalents, and marketable securities with use restrictions of less than twelve months as "Prepaid expenses and other current assets" and of twelve months or longer as non-current "Other assets" on its consolidated balance sheets.


	June 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Commercial paper	$	97.6	$	—	$	—	$	97.6
Corporate bonds	61.9		0.1		—		62.0
Certificate of deposits	34.8		—		—		34.8
U.S. treasury securities	29.7		0.1		—		29.8
Total marketable securities ⁽¹⁾	$	224.1	$	0.2	$	—	$	224.3

_________________________

(1) Includes $8.3 million included within cash and cash equivalents

Fair Value Measurements

12 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value MeasurementsThe following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy:


	As of June 30, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Marketable securities:	$	758.1	$	—	$	—	$	758.1
Cost-method investments	—		—		0.7		0.7
Total	$	758.1	$	—	$	0.7	$	758.8

Liabilities
Other current liabilities:
Contingent consideration	$	—	$	—	$	2.5	$	2.5
Other non-current liabilities:
Contingent consideration	—		—		4.6		4.6
Total	$	—	$	—	$	7.1	$	7.1


	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Marketable securities ⁽¹⁾	$	224.3	$	—	$	—	$	224.3
Cost-method investments	—		—		0.6		0.6
Total	$	224.3	$	—	$	0.6	$	224.9

_________________________

(1) Includes $8.3 million included in cash and cash equivalents.

Cash equivalents are highly liquid investments with maturities of three months or less when purchased. These investments are carried at cost, which approximates fair value. All investments classified as available-for-sale are recorded at fair value within marketable securities in the consolidated balance sheets. The Company’s investments classified as Level 1 are based on quoted prices that are available in active markets.

The contingent consideration represents the estimated fair value of cash consideration payable in connection with a recent acquisition that is contingent upon the achievement of certain performance milestones. The Company estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, and applied a discount rate that appropriately captures a market participant's view of risk associated with the obligation, which are considered to be Level 3 inputs. The fair value of the contingent consideration arrangement is sensitive to change in the expected achievement of the applicable milestones and changes in discount rate. The Company remeasures the fair value of the contingent consideration arrangement each reporting period, including the accretion of the discount, if applicable, and changes are recognized in general and administrative expense in the consolidated statements of operations and comprehensive loss. See Note 7 for further discussion of the Company's accounting for the contingent consideration.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventory

12 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventories were as follows:


	As of June 30,
	2020		2019
	(in millions)
Raw materials	$	17.8	$	—

Work-in-process	4.6		—
Finished products	232.5		152.0
Total inventories	254.9		152.0
Less: Reserves	(10.5)		(15.4)
Total inventories, net	$	244.5	$	136.6

Acquisition of Tonic Fitness Technology

12 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisition of Tonic Fitness Technology

In October 2019, the Company completed its previously announced acquisition of Tonic Fitness Technology ("Tonic"), a manufacturing company located in Taiwan, for a purchase price of approximately $45.0 million, net of cash acquired, which was paid in cash. On the acquisition date, Tonic became a wholly-owned subsidiary of the Company. The Company acquired Tonic in order to have more control over its supply chain and to help the Company scale its production. The Company agreed to pay consideration if certain future production milestones are met over the next four years. This contingent consideration was recorded as an earn-out liability on the consolidated balance sheets at its fair value of $6.8 million and is included within the purchase price. The maximum payout of this contingent consideration is $7.5 million.

The operating results of Tonic have been included in the Company's consolidated statements of operations and comprehensive loss since the acquisition date. Actual and pro forma revenue and results of operations for the acquisition have not been presented because they do not have a material impact to the consolidated revenue and results of operations, either individually or in the aggregate.

The Company recognized $0.3 million of acquisition-related costs that were expensed as incurred during the fiscal year ended June 30, 2020. These costs are included in general and administrative expense in the consolidated statements of operations and comprehensive loss.

Purchase Price Allocation

The acquisition was accounted for under the acquisition method. The following table summarizes the final determination of the fair values of assets acquired and liabilities assumed at the closing date:


	As of October 16, 2019
	(in millions)
Inventory	$	11.8
Other current assets	29.1
Property and equipment	20.4
Goodwill	32.3
Other assets	2.2
Total assets	$	95.7
Current liabilities	(49.9)
Other liabilities	(0.8)
Total liabilities	$	(50.7)
Net assets acquired	$	45.0

The purchase price allocation resulted in the recognition of $32.3 million of goodwill, net of any foreign exchange rate impact. Goodwill represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including an experienced workforce and expected future synergies. The Company allocated the goodwill to its Connected Fitness Products reporting segment. None of the goodwill is expected to be deductible for tax purposes.

Property and Equipment

12 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and EquipmentProperty and Equipment consisted of the following:


	As of June 30,
	2020		2019
	(in millions)
Land	$	7.1	$	—
Buildings⁽¹⁾	9.2		149.3
Leasehold Improvements	115.4		47.6
Equipment	35.1		14.9
Furniture and Fixtures	9.8		7.5
Software	32.7		16.0
Construction in Progress	97.1		40.1
Total property and equipment	306.2		275.4
Accumulated depreciation and amortization	(64.0)		(25.6)
Total property and equipment, net	$	242.3	$	249.7

_________________________

(1) Includes zero and $147.1 for the years ended June 30, 2020 and 2019, respectively, for the Company's build-to-suit asset.

As of June 30, 2020, 79% and 11% the Company's total property and equipment, net was attributable to the United States and the United Kingdom, respectively. As of June 30, 2019, 97% of the Company's total property and equipment, net was attributable to the United States. No other country represented more than 10% of the total property and equipment, net as of those periods.

The estimated useful lives of property and equipment are as follows:


Buildings						20 years
Leasehold Improvements						Shorter of remaining lease term or useful life
Equipment						Three to five years
Furniture and Fixtures						Two to ten years
Software						Two to three years

In November 2018, the Company entered into a lease agreement for office space for its new corporate headquarters where the Company was considered, for accounting purposes only, the owner of the construction project under build-to-suit lease accounting. As a result of the adoption of ASC 842 on July 1, 2019, the Company de-recognized all build-to-suit lease assets. Refer to Note 2, Summary of Significant Accounting Policies for further information.

Depreciation and amortization expense amounted to $35.1 million, $16.7 million, and $6.3 million for the fiscal years ended June 30, 2020, 2019, and 2018, respectively, of which $6.8 million, $3.3 million, and $1.2 million related to amortization of capitalized software costs for the fiscal years ended June 30, 2020, 2019, and 2018, respectively.

Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The changes in the carrying value of goodwill are as follows:


	Amount
	(in millions)
June 30, 2018	$	4.2
Acquisition	0.1
June 30, 2019	4.3
Acquisition	32.3
Foreign currency translation	2.6
June 30, 2020	$	39.1

The gross carrying amount and accumulated amortization of the Company's intangible assets, net, as of June 30, 2020 were as follows:


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life (Years)
Acquired developed technology	$	24.8	$	10.3	$	14.5	3.0
Definite-lived intangibles	1.6		0.1		1.5		4.7
Total intangible assets	$	26.4	$	10.4	$	16.0

The gross carrying amount and accumulated amortization of the Company's intangible assets, net, as of June 30, 2019 were as follows:


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life (Years)
Acquired developed technology	$	24.8	$	5.3	$	19.5	4.0

The Company recognized intangible asset amortization in the consolidated statements of operations in the amount of $5.1 million, $5.0 million, and $0.3 million for the fiscal years ended June 30, 2020, 2019, and 2018, respectively.

As of June 30, 2020, estimated amortization related to the Company's identifiable acquisition-related intangible assets in future periods were as follows:


Fiscal Year Ending June 30,	Amount
	(in millions)
2021	$	5.3
2022	5.3
2023	4.9
2024	0.3
2025	0.2
Total	$	16.0

Accrued Expenses

12 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following:


	Fiscal Year Ended June 30,
	2020		2019
	(in millions)
Inventory received but not billed	$	88.6	$	12.8
Accrued music licensing royalties	37.9		25.8
Employee-related liabilities	35.1		9.7
Accrued marketing	5.8		19.3
Other	58.5		36.8
Total accrued expenses	$	225.9	$	104.5

Leases

12 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

The Company leases facilities under operating leases with various expiration dates through 2039. The Company leases space for its corporate headquarters and the operation of its production studio facilities, showrooms, distribution facilities, warehouses, factories, and other office spaces.

Right-of-use assets and lease liabilities are established on the consolidated balance sheets for leases with an expected term greater than one year. As the rate implicit in the lease is not determinable, the Company uses its secured incremental borrowing rate to determine the present value of the lease payments.

Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. The Company has elected to not separate lease and non-lease components.

The Company's lease terms include options to extend or terminate the underlying lease when it is reasonably certain that the Company will exercise that option. The operating lease arrangements included in the measurement of lease liabilities do not reflect options to extend or terminate, as management does not consider the exercise of these options to be reasonably certain.

Variable lease payments include, but are not limited to, percentage of sales, common area charges, taxes paid by the landlord that are charged to the Company, and changes to the consumer price index. Variable lease payments are expensed as incurred.

As of June 30, 2020, the total remaining lease payments included in the measurement of lease liabilities for operating leases were as follows:


Fiscal Year Ending June 30,	Future Minimum Payments
	(in millions)
2021⁽¹⁾	$	48.1
2022⁽²⁾	55.2
2023	68.0
2024	64.4
2025	59.2
Thereafter	522.3
Total	$	817.3

_________________________

(1) Includes $22.8 million in tenant improvement receivable.

(2) Includes $13.3 million in tenant improvement receivable.

Supplemental information related to leases was as follows:


Reconciliation of Lease Liabilities	As of June 30, 2020
	(dollars in millions)
Weighted-average remaining lease term (years)	12.7
Weighted-average discount rate	5.84		%
Total Undiscounted Lease Liability	$	817.3
Less: Imputed interest	(272.1)
Total Discounted Lease Liability	$	545.1
Current portion of lease liability	$	36.9
Non-current portion of lease liability	$	508.2

Supplemental cash flow and other information related to leases was as follows:


Cash Paid For Amounts Included In Measurement of Liabilities	Fiscal Year Ended June 30, 2020
	(in millions)
Operating cash flows from operating leases	$	45.2

Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	356.2

Total operating lease expense was $89.9 million for the fiscal year ended June 30, 2020, of which $11.8 million was attributable to variable lease expense and $1.7 million was attributable to short-term lease expense. During the years ended June 30, 2019 and 2018, rent expense was $35.8 million and $15.1 million, respectively.

Debt and Financing Arrangements	12 Months Ended
Debt and Financing Arrangements	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt and Financing Arrangements	Debt and Financing Arrangements Amended and Restated Credit Agreement In 2019 the Company entered into an amended and restated loan and security agreement (“Amended Credit Agreement”) the Amended Credit Agreement provides for a $250.0 million secured revolving credit facility, including up to the lesser of $150.0 million and the aggregate unused amount of the facility for the issuance of letters of credit. Interest on the Amended Credit Agreement is paid based on LIBOR plus 2.75% or an Alternative Base Rate plus 1.75%. The Company is required to pay an annual commitment fee of 0.375% on a quarterly basis based on the unused portion of the revolving credit facility. The Company incurred total commitment fees of $0.9 million, $0.3 million and $0.2 million during the fiscal years ended June 30, 2020, 2019 and 2018, respectively, which are included in interest expense in the consolidated statements of operations and comprehensive loss. The outstanding balance, if any, is payable in full in June 2024. As of June 30, 2020, the Company has not drawn on the credit facility and did not have outstanding borrowings under the Amended Credit Agreement. In connection with the execution of the Amended Credit Agreement, the Company incurred debt issuance costs of $0.9 million, which are capitalized and presented as other assets on the Company's consolidated balance sheets. These costs are being amortized to interest expense using the effective interest method over the term of the Amended Credit Agreement. The Company has the option to repay its borrowings under the Amended Credit Agreement without premium or penalty prior to maturity. The Amended Credit Agreement contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates, as well as customary covenants that restrict its ability to, among other things, incur additional indebtedness, sell certain assets, guarantee obligations of third parties, declare cash dividends in the entirety or make certain other distributions, and undergo a merger or consolidation or certain other transactions. The Amended Credit Agreement also contains certain financial condition covenants, including maintaining a total level of liquidity of not less than $125.0 million and maintaining certain minimum total revenue ranging from $725.0 million to $1,985.0 million depending on the applicable date of determination. As of June 30, 2020, the Company was in compliance with the covenants under the Amended Credit Agreement. At June 30, 2020, the Company was contingently liable for approximately $4.8 million in standby letters of credit as security for an operating lease obligation.

Commitments and Contingencies

12 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments

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:


	Future Minimum Payments
	(in millions)
2021	$	26.9
2022	13.5
2023	3.2
2024	0.7
Total	$	44.3

Content Costs for Past Use Reserve

To secure the rights to stream music on the Peloton platform, the Company must obtain licenses from, and pay royalties to, copyright owners of both sound recordings and musical compositions. The Company has entered into negotiations with various music rights holders, to pay for any and all uses of musical compositions and sound recordings to date and, at the same time, enter into go-forward license agreements for the use of music in the future.

Prior to the execution of go-forward music license agreements, the Company estimates and records expenses inclusive of estimated content costs for past use as well as normal and recurring music royalty expenses. During the fiscal years ended June 30, 2020, 2019 and 2018, the Company recorded content costs for past use and estimates for normal and recurring royalty expense of $18.7 million, $19.3 million and $15.5 million, respectively. The Company includes both of these components in its reserve. As of June 30, 2020 and 2019, the Company recorded reserves of $25.1 million and $18.9 million, respectively, included in accrued expenses in the accompanying consolidated balance sheets.

Legal 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 business. Some of these proceedings may be based on complex claims involving substantial uncertainties and unascertainable damages, such as litigation that centers around intellectual property claims. Accordingly, except as discussed below, it is not possible to determine the probability of loss or estimate damages, 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. The Company does not believe that the outcome of any existing legal or regulatory proceeding to

which it is a party, either individually or in the aggregate, will have a material adverse effect on its results of operations, financial condition or cash flows.

Downtown Music Publishing, LLC et. al. v. Peloton Interactive, Inc.

On March 19, 2019, Downtown Music Publishing LLC, ole Media Management, L.P., Big Deal Music, LLC, CYPMP, LLC, Peer International Corporation, PSO Limited, Peermusic Ltd., Peermusic III, Ltd., Peertunes, Ltd., Songs of Peer Ltd., Reservoir Media Management, Inc., The Richmond Organization, Inc., Round Hill Music LLC, The Royalty Network, Inc., and Ultra International Music Publishing, LLC filed a lawsuit against the Company in the U.S. District Court for the Southern District of New York, captioned Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc., alleging that the Company engaged in copyright infringement by using certain accused songs in streaming and recorded fitness classes without necessary licenses. The plaintiffs alleged that they are music publishers that own or control the copyrights in numerous musical works that were synchronized by the Company without the plaintiffs’ authorization. The complaint asserted a single claim for copyright infringement.

On April 30, 2019, the Company answered the complaint and filed counterclaims against the original named plaintiffs and National Music Publishers’ Association, Inc., a trade association, alleging that they coordinated to collectively negotiate licenses in violation of the antitrust laws. The counterclaims also asserted that the trade association tortuously interfered with the Company's attempts to engage in direct negotiations with music publishers in violation of state law. The counterclaims sought injunctive relief, monetary damages (to be trebled under applicable statute), and attorneys’ fees and costs. An initial pretrial conference was held on May 9, 2019 and discovery commenced thereafter. An amended complaint filed on May 31, 2019 named additional plaintiffs Greensleeves Publishing Ltd., Me Gusta Music, LLC, Raleigh Music Publishing LLC, STB Music, Inc., and TuneCore, Inc. and identified additional musical works. The Company answered the amended complaint on June 14, 2019. On June 24, 2019, counter-defendants filed a motion to dismiss the counterclaims, to which the Company filed an opposition on August 8, 2019.

On September 27, 2019, the district court granted plaintiffs leave to file a second amended complaint identifying additional musical works and affiliated entities, and requesting injunctive relief, more than $300 million in damages, and attorneys’ fees and costs. The Company answered the second amended complaint and also filed counterclaims on October 11, 2019. On October 25, 2019, counter-defendants filed a motion to dismiss the counterclaims, to which the Company filed an opposition on November 8, 2019. On January 29, 2020, the court granted plaintiffs’ motion to dismiss the Company’s counterclaims. The parties agreed to settle the litigation and executed a confidential settlement agreement on February 24, 2020.

Other

On January 30, 2020, the Company entered into a confidential settlement agreement with Flywheel Sports, Inc. (“Flywheel”) pursuant to which the Company and Flywheel agreed, among other things, to withdraw, and seek dismissal and termination of, a series of ongoing patent litigation matters between the parties.

During the fiscal years ended June 30, 2020, 2019 and 2018, the Company recognized $60.1 million, $12.1 million and $1.5 million, respectively, for litigation and settlement expenses.

Stockholders' Equity (Deficit)	12 Months Ended
Stockholders' Equity (Deficit)	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity (Deficit)	Stockholders' Equity (Deficit) Common Stock In August 2019, the Company implemented a dual class common stock structure by reclassifying all existing shares of common stock into Class B common stock and authorizing a new class of common stock, the Class A common stock. The Class A common stock is entitled to one vote per share and the Class B common stock is entitled to twenty votes per share. The Class A and Class B common stock have the same dividend and liquidation rights, and the Class B common stock converts to Class A common stock at any time at the option of the holder, or automatically upon the date that is the earliest of (i) the date specified by a vote of the holders of 66 2/3% of the then outstanding shares of Class B common stock, (ii) 10 years from the closing date of the IPO, and (iii) the date that the total number of shares of Class B common stock outstanding cease to represent at least 1% of all outstanding shares of the Company's common stock. In addition, each share of Class B common stock will convert automatically into one share of Class A common stock upon any transfer, except for certain transfers described in the Company's restated certificate of incorporation. Upon the creation of the dual class common stock structure, all outstanding options and the warrant to purchase common stock became options and a warrant, respectively, to purchase an equivalent number of shares of Class B common stock. The Board of Directors authorized the issuance of Class A common stock and Class B common stock, each with a par value of $0.000025 per share. As of June 30, 2020, there were 2,500,000,000 shares of Class A common stock and 2,500,000,000 shares of Class B common stock authorized and 237,518,574 shares of Class A common stock and 50,538,538 shares of Class B common stock outstanding. Redeemable Convertible Preferred Stock In September 2019, upon the closing of the Company's IPO, all outstanding shares of redeemable convertible preferred stock were automatically converted into an aggregate of 210,640,629 shares of Class B common stock. Preferred Stock Effective September 2019, the Board of Directors authorized the issuance of undesignated preferred stock, with a par value of $0.000025 per share. As of June 30, 2020, there were 50,000,000 shares of preferred stock authorized and zero shares of preferred stock outstanding.

Equity-Based Compensation

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

2015 Stock Plan

In April 2015, the Board of Directors approved the establishment of the 2015 Stock Plan (the “2015 Plan”) to provide stock award grants to employees, directors, and consultants of the Company. The Board of Directors, or at its sole discretion, a committee of the Board of Directors, is responsible for the administration of the 2015 Plan.

The 2015 Plan requires that the per share exercise price of each stock option shall not be less than 100% of the fair market value of the common stock subject to the stock option on the grant date. Stock option grants shall not be exercisable after the expiration of ten years from the date of its grant or such shorter period as specified in a stock award agreement. For initial grants, vesting generally occurs over four years with the first 25% of the award vesting upon the 12-month anniversary of the vesting commencement date and the remaining 75% vesting monthly over the following 36 months. The 2015 Plan provides that the Board of Directors may, in its sole discretion, impose such limitations on transferability of stock options as the Board of Directors shall determine. In the absence of a determination by the Board of Directors to the contrary, stock options shall not be transferable except by will or by the laws of descent and distribution, and domestic relations orders unless specifically agreed to by the plan administrator.

The 2015 Plan was terminated in connection with the adoption of the Company's 2019 Equity Incentive Plan (the "2019 Plan") in September 2019, and the Company will not grant any additional awards under the 2015 Plan. However, the 2015 Plan will continue to govern the terms and conditions of the outstanding awards previously granted thereunder. Any reserved shares not issued or subject to outstanding grants under the 2015 Plan on the effective date of the 2019 Plan became available for grant under the 2019 Plan and will be issued as Class A common stock.

2019 Equity Incentive Plan

In August 2019, the Board of Directors adopted the 2019 Plan, which was subsequently approved by the Company’s stockholders in September 2019. The Company initially reserved 49,809,576 shares of the Company’s Class A common stock to be issued under the 2019 Plan, which figure includes all shares reserved under the 2015 Plan not issued or subject to outstanding grants under the 2015 Plan as of the effective date of the 2019 Plan. The number of shares reserved for issuance under the 2019 Plan will increase automatically on July 1 of each of 2020 through 2029 by the number of shares of the Company’s Class A common stock equal to 5% of the total outstanding shares of all of the Company’s classes of common stock as of each June 30 immediately preceding the date of increase, or a lesser amount as determined by the Board of Directors.

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, 2019	64,602,124	$	6.71	8.6	$	972.0
Granted	12,086,466	$	27.11
Exercised	(7,815,137)	$	4.12
Forfeited	(2,054,593)	$	11.01
Outstanding — June 30, 2020	66,818,860	$	10.57	8.0	$	3,153.6
Vested and Exercisable— June 30, 2020	27,144,270	$	4.70	6.9	$	1,440.5

Unvested option activity is as follows:


	Options	Weighted-Average Grant Date Fair Value
Unvested - June 30, 2019	46,078,443	$	4.89
Granted	12,086,466	$	12.17
Early exercised unvested	(113,688)	$	3.94
Vested	(16,335,310)	$	4.10
Forfeited	(2,041,321)	$	5.33
Unvested - June 30, 2020	39,674,590	$	7.41

The aggregate intrinsic value of options outstanding, vested and exercisable, were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of June 30, 2020. Prior to the IPO, the fair value of the Company's common stock was determined by the Board of Directors. After the IPO, the fair value of the common stock is the closing stock price of the Company's Class A common stock as reported on the Nasdaq Global Select Market.

As part of the 2015 Plan and 2019 Plan (the "Plans"), the Company issued options to certain key management that vest upon the achievement of certain performance milestones. During the fiscal years ended June 30, 2020, 2019, and 2018, the Company recorded stock-based compensation expense related to the performance based options of $5.2 million, $0.8 million and zero, respectively.

For the fiscal years ended June 30, 2020, 2019 and 2018, the weighted-average grant date fair value per option was $12.17, $6.71, and $1.67 respectively. The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:


	Fiscal Year Ended June 30,
	2020	2019	2018
Weighted average risk-free interest rate⁽¹⁾	1.1%	2.5%	2.4%
Weighted average expected term (in years)	6.2	6.3	6.3
Weighted average expected volatility ⁽²⁾	44.9%	45.0%	55.2%
Expected dividend yield	—	—	—

____________________________

(1) Based on U.S. Treasury seven-year constant maturity interest rate whose term is consistent with the expected term of the option.

(2) Expected volatility is based on an analysis of comparable public company volatilities and adjusted for the Company’s stage of development.

During the year ended June 30, 2020, the holder of a warrant to purchase 240,000 shares of the Company's Class B common stock net exercised the warrant into 238,253 shares of Class B common stock at an exercise price of $0.19 per share. As of June 30, 2020, there were no outstanding warrants.

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, 2019	—	$	—
Granted	706,825	$	32.02
Vested and converted to common stock	(90,712)	$	31.99
Outstanding — June 30, 2020	616,113	$	32.02

Employee Stock Purchase Plan

In August 2019, the Board of Directors adopted, and in September 2019, the Company's stockholders approved, the ESPP, through which eligible employees may purchase shares of the Company's Class A common stock at a discount through accumulated payroll deductions. The ESPP became effective on the date the registration statement, in connection with the Company’s IPO, was declared effective by the SEC (the "Effective Date"). A total of 5,600,000 shares of the Company's Class A common stock are available for issuance and sale to eligible employees under the ESPP. The number of shares of the Company's Class A common stock that will be available for issuance and sale to eligible employees under the ESPP will increase automatically on the first day of each fiscal year of the Company beginning on July 1, 2020 through 2029, equal to 1% of the total number of outstanding shares of all classes of the Company's common stock on the immediately preceding June 30, or such lesser number as may be determined by the Board of Directors or applicable committee in its sole discretion.

Unless otherwise determined by the Board of Directors, each offering period will consist of four six-month purchase periods, provided that the initial offering period commenced on the Effective Date and will end 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. There was an ESPP reset during the year ended June 30, 2020 that resulted in a total modification charge of $2.5 million, which is recognized over the new two-year offering period ending February 28, 2022.

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 included weighted average expected terms of 1.1 years, weighted average expected volatility of

54.8%, and weighted average risk-free rate of 1.5% for the fiscal year ended June 30, 2020. The expected term assumptions were based on each offering period's respective purchase date. Since the Company does not have a historical trading history of its stock, the expected volatility was derived from the average 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. 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 fiscal year ended June 30, 2020, the Company recorded stock-based compensation expense associated with the ESPP of $3.3 million.

During the fiscal year ended June 30, 2020, employees purchased approximately 162,639 shares of Class A common stock, under the ESPP, at a weighted-average price of $22.69. As of June 30, 2020, total unrecognized compensation cost related to the ESPP was $8.6 million, which will be amortized over a weighted-average remaining period of 1.7 years.

Stock-Based Compensation Expense

The Company's total stock-based compensation expense was as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Cost of revenue
Connected Fitness Products	$	3.2	$	0.3	$	—
Subscription	7.5		3.2		0.5
Total cost of revenue	10.7		3.5		0.5
Sales and marketing	15.3		8.4		0.7
General and administrative	52.4		70.5		6.5
Research and development	10.4		7.1		0.8
Total stock-based compensation expense	$	88.8	$	89.5	$	8.5

During the year ended June 30, 2019, the Company recorded a one-time stock-based compensation charge of $61.7 million related to a tender offer completed by the Company in August 2018 to purchase outstanding shares of common stock and preferred stock.

As of June 30, 2020, the Company had $291.1 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 3.3 years.

Concentration of Credit Risk and Major Customers and Vendors	12 Months Ended
	Jun. 30, 2020
Risks and Uncertainties [Abstract]
Concentration of Credit Risk and Major Customers and Vendors	Concentration of Credit Risk and Major Customers and Vendors Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company’s cash and cash equivalents are maintained with high-quality financial institutions, the compositions and maturities of which are regularly monitored by management. For the fiscal years ended June 30, 2020, 2019, and 2018, there were no customers representing greater than 10% of the Company’s total revenue. The Company’s top four vendors accounted for approximately 61% and 91% of total finished goods purchased for the fiscal years ended June 30, 2020 and 2019, respectively. The Company’s top three vendors accounted for approximately 91% of total finished goods purchases for the fiscal year ended June 30, 2018.

Income Taxes

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The components of loss before income taxes are as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
United States	$	(15.6)	$	(164.4)	$	(47.0)
Foreign	(52.8)		(31.2)		(0.8)
Loss from operations before income taxes	$	(68.4)	$	(195.6)	$	(47.8)

The components of income tax expense/(benefit) are as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	1.2		0.1		0.1
Foreign	3.0		0.3		—
	4.2		0.4		0.1
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(0.9)		(0.3)		—
	(0.9)		(0.3)		—
Total	$	3.3	$	0.1	$	0.1

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
Federal income tax rate	21.0	%	21.0	%	28.1	%
Permanent differences	(1.8)		(4.2)		(1.0)
Share based compensation	34.2		—		—
Return to provision	(3.8)		(0.4)		—
Effects of rates different than statutory	—		(0.3)		—
State and local income taxes, net of federal benefit	8.6		3.0		4.5
Franchise tax	(1.2)		—		(0.1)
Change in valuation allowance	(65.6)		(21.0)		3.7
Rate change	(0.5)		(0.4)		(39.3)
Federal credits	4.4		2.3		4.0
Other	(0.1)		—		—
Effective income tax rate	(4.8)	%	—	%	(0.1)	%

The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2020 are due to the change in valuation allowance and permanent differences related to stock compensation. The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2019 are due to the change in valuation allowance and permanent differences related to stock compensation. The primary differences from the U.S. statutory rate and the Company’s effective tax rate for the fiscal year ended June 30, 2018 are due to the rate change on deferred tax assets as a result of the enactment of the Tax Cuts and Jobs Act (“Act”), partially offset by state and local taxes and federal tax credits.

On March 27, 2020, The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law in the United States. The CARES Act and related notices include several significant provisions. The Company does not currently expect the CARES Act to have a material impact on its financial results, including the Company's effective tax rate. The Company will continue to monitor and assess the impact the CARES Act and similar legislation in other countries may have on its business and financial results.

On December 22, 2017, the Act was signed into law making significant changes to the Internal Revenue Code of 1986, as amended. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, a one-time transition tax on the mandatory deemed repatriation of foreign earnings, and numerous domestic and international-related provisions effective in 2018. The Company has estimated its provision for income taxes specifically related to the reduction of the federal corporate tax rate in accordance with the Act and guidance available as of the date of this filing and as a result has recorded $18.0 million of income tax expense, which was offset by a corresponding adjustment for the same amount to the Company’s valuation allowance, for the fiscal year ended June 30, 2018.

On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of GAAP in situations when a company does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. For the fiscal year ended June 30, 2018, the Company recorded $18.0 million of the income tax expense in connection with the re-measurement of certain deferred tax assets and liabilities. As of June 30, 2019, the Company has completed the accounting for all the impacts of the Act with no material changes to the provisional estimate recorded in the prior period.

As of June 30, 2020 and June 30, 2019, the Company’s deferred tax assets were primarily the result of U.S. federal and state net operating losses (“NOLs”), deferred revenue, research and development tax credits, non-qualified stock options, and accrued litigation reserves. A valuation allowance was maintained on substantially all worldwide gross deferred tax asset balances as of June 30, 2020 and 2019. As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. The recognition of deferred tax assets was based on the evaluation of current and estimated future profitability of the operations, reversal of deferred tax liabilities and the likelihood of utilizing tax credit and/or loss carryforwards. As of June 30, 2020 and June 30, 2019, the Company continued to maintain that it is not at the more likely than not standard, wherein deferred taxes will be realized in the United States and United Kingdom due to the recent history of losses and management’s expectation of continued tax losses.

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) are as follows:


	Fiscal Year Ended June 30,
	2020		2019
	(in millions)
Deferred tax assets:
Net operating loss	$	63.9	$	34.4
Accruals and reserves	13.7		10.0
R&D credit	9.2		7.7
Accrued legal and professional fees	5.3		4.8
Non-qualified stock options	20.8		8.8
Restricted stock options	2.5		—
Deferred rent	—		2.9
Property and equipment	—		0.2
Intangible amortization	—		0.9
Inventory capitalization	8.8		5.0
Lease liability	129.6		—
Deferred revenue	8.4		10.4
Tenant Improvement Allowance	—		2.9
Other	1.1		0.6
Total deferred tax assets:	263.3		88.5
Valuation allowance	(128.5)		(86.9)
Deferred tax liabilities:
Prepaid Expenses	(3.1)		(1.4)
Property and equipment	(10.6)		—
Intangible amortization	(2.1)		—
Right-of-use assets	(116.4)		—
Other	(1.0)		—
Total deferred tax liabilities:	(133.2)		(1.4)
Deferred tax assets, net	$	1.6	$	0.3

As of June 30, 2020 and 2019, the Company had federal NOLs of approximately $191.1 million and $112.6 million, respectively, of which $59.3 million will begin to expire in 2036 and the remainder will be carried forward indefinitely. The Company has undergone three ownership changes on November 30, 2015, April 18, 2017, and February 24, 2020 and its NOLs are subject to a Section 382 limitation. The total NOLs subject to a 382 limitation are $169.0 million and $72.3 million as of June 30, 2020 and June 30, 2019. The resulting Section 382 limitations are large enough to avail the Section 382 limited NOLs by June 30, 2022. As of June 30, 2020 and 2019, the Company had state NOLs of approximately $99.6 million and $95.8 million, respectively, which will begin to expire at various dates beginning in 2021 if not utilized. As of June 30, 2020 and 2019, the Company had foreign NOLs of approximately $94.2 million and $26.7 million, respectively, generated from its operations in the United

Kingdom, which will be carried forward indefinitely. As of June 30, 2020 and 2019, the Company had $9.2 million and $7.7 million, respectively, of U.S. research and development credit carryovers that will begin to expire in 2036.

As of June 30, 2020, the Company did not have material undistributed foreign earnings. The Company has not recorded a deferred tax liability for foreign withholding or other foreign local tax on the undistributed earnings from the Company’s international subsidiaries as such earnings are considered to be indefinitely reinvested.

The Company accounts for uncertainty in income taxes using a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate audit settlement. As of June 30, 2020 and 2019, the Company has not recognized any uncertain tax positions.

The Company is subject to taxation in the United States, various state and local jurisdictions, as well as foreign jurisdictions including Canada, Germany, Taiwan, and the United Kingdom. During the year ended June 30, 2020, the Company closed a U.S. IRS audit for the year ended February 25, 2018 with no assessments or adjustments. The tax years ended June 30, 2019, June 30, 2018, February 25, 2018, and February 26, 2017 remain open to examination by tax authorities in various jurisdictions. As of June 30, 2020, there are no income tax audits in process.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Loss Per Share

12 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Loss Per Share

The computation of loss per share is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Basic loss per share:
Net loss	$	(71.6)	$	(195.6)	$	(47.9)
Less: Premium on repurchase of convertible preferred stock	—		(50.1)		—
Net loss attributable to common stockholders	$	(71.6)	$	(245.7)	$	(47.9)
Shares used in computation:
Weighted-average common shares outstanding	220,952,237		22,911,764		21,934,228
Basic loss per share	$	(0.32)	$	(10.72)	$	(2.18)

Basic and diluted loss per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.

The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:


	Year Ended June 30,
	2020	2019	2018
Stock options	41,476,591	20,609,654	12,890,826
Restricted stock and restricted stock units	41,855	—	—
Shares estimated to be purchased under ESPP	66,019	—	—
Warrants	—	234,527	224,903
Redeemable convertible preferred stock	—	210,640,629	176,313,468

Segment Information

12 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

The Company applies ASC 280, Segment Reporting, in determining reportable segments for its financial statement disclosure. The Company has two reportable segments: Connected Fitness Products and Subscription. Segment information is presented in the same manner that the 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. Historically, the Company reported gross margin for three segments: Connected Fitness Products, Subscription and Other, which was reflective of how the Company’s CODM reviewed financial information for purposes of making operating decisions, assessing financial performance and allocating resources. Effective in the fourth quarter of fiscal 2020, following the Company's annual strategy setting and budgeting process, the CODM changed how they assess performance and allocate resources. The Company revised prior comparative periods to conform to the current period segment presentation.

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 Product segment derives revenue from sale of the Bike, Tread 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:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Connected Fitness Products:
Revenue	$	1,462.2	$	733.9	$	354.7
Cost of revenue	833.5		427.8		199.9
Gross profit	$	628.8	$	306.2	$	154.9
Subscription:
Revenue	$	363.7	$	181.1	$	80.3
Cost of revenue	155.7		103.7		45.5
Gross profit	$	208.0	$	77.4	$	34.7




Consolidated:
Revenue	$	1,825.9	$	915.0	$	435.0
Cost of revenue	989.1		531.4		245.4
Gross profit	$	836.7	$	383.6	$	189.6

Reconciliation of Gross Profit

Operating expenditures, interest (income) and other expense, and taxes are not allocated to individual segments as these are managed on an entity wide group basis. The reconciliation between reportable segment gross profit to consolidated loss before tax is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Segment Gross Profit	$	836.7	$	383.6	$	189.6
Sales and marketing	(477.0)		(324.0)		(151.4)
General and administrative	(351.6)		(207.0)		(62.4)
Research and development	(89.0)		(54.8)		(23.4)
Total other income (expense), net	12.4		6.7		(0.3)
Loss before provision for income taxes	$	(68.4)	$	(195.6)	$	(47.8)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Quarterly Financial Data (unaudited)

12 Months Ended

Jun. 30, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (unaudited)

Selected summarized quarterly financial information for the fiscal years ended June 30, 2020 and 2019 was as follows:


	Year ended		Three months ended
	Jun. 30, 2020		Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019		Sept. 30, 2019
			(in millions)
Total revenue	$	1,825.9	$	607.1	$	524.6	$	466.3	$	228.0
Gross profit	836.7		288.8		245.8		197.1		105.1
Income (loss) from operations ⁽¹⁾	(80.8)		90.0		(58.4)		(61.5)		(50.9)
Net income (loss)	(71.6)		89.1		(55.6)		(55.4)		(49.8)
Net income (loss) per share attributable to common stockholders, basic ⁽²⁾	$	(0.32)	$	0.31	$	(0.20)	$	(0.20)	$	(1.29)
Net income (loss) per share attributable to common stockholders, diluted ⁽²⁾	$	(0.32)	$	0.27	$	(0.20)	$	(0.20)	$	(1.29)

_________________________

(1) Net income from operations for the three months ended June 30, 2020, reflects strong demand due to the ongoing COVID-19 pandemic coupled with the pause on the majority of marketing spend.

(2) The sum of the income (loss) per share for the four quarters may differ from annual income (loss) per share due to the required method of computing the weighted average shares in interim periods.


	Year ended		Three months ended
	Jun. 30, 2019		Jun. 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
			(in millions)
Total revenue	$	915.0	$	223.3	$	316.7	$	262.9	$	112.1
Gross profit	383.6		100.1		120.6		111.3		51.5
(Loss) from operations	(202.3)		(49.4)		(41.4)		(56.0)		(55.6)
Net (loss)	(195.6)		(47.4)		(38.6)		(55.1)		(54.5)
Net (loss) per share attributable to common stockholders, basic and diluted ⁽¹⁾	$	(10.72)	$	(2.07)	$	(1.76)	$	(4.83)	$	(2.18)

_________________________

(1) The sum of the income (loss) per share for the four quarters may differ from annual income (loss) per share due to the required method of computing the weighted average shares in interim periods.

Subsequent Events	12 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsRestricted Stock Unit and Option GrantsFollowing June 30, 2020, the Board of Directors approved $95.0 million in value of equity awards consisting of a combination of restricted stock units for the shares of the Company's Class A common stock and stock options to purchase shares of the Company's Class A common stock.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	The accompanying 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.
Consolidation	The consolidated financial statements include the accounts of Peloton Interactive, Inc. and its subsidiaries in which the Company has a controlling financial interest. All significant intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents	The Company considers all cash and short-term investments purchased with maturities of three months or less when acquired to be cash equivalents. As of June 30, 2020 and 2019, the Company’s cash and cash equivalents were primarily held in money market and operating accounts. At various times during the fiscal years ended June 30, 2020 and 2019, the balances of cash at financial institutions exceeded the federally insured limit. The Company has not experienced any losses in such accounts and believes its cash and cash equivalents are not subject to any significant credit risk.
Restricted Cash	Restricted cash primarily consists of cash held in reserve accounts related to operating lease obligations.
Accounts Receivable, Net of Allowances	The Company's accounts receivable primarily represent amounts due from third-party sales processors. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, which to date have not been material, and provides allowances, as necessary, for doubtful accounts.
Revenue Recognition	On July 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 and all subsequent amendments. The Company elected to apply the standard and all related ASUs retrospectively to each prior reporting period presented. The adoption of the new standard had no material impact on the measurement or recognition of revenue, resulting in no adjustments to the prior periods. Additional disclosures, however, have been added in accordance with ASU 2014-09. Refer to Note 3, Revenue. The Company’s primary source of revenue is from sales of its Connected Fitness Products and associated recurring Subscription revenue. The Company determines revenue recognition through the following steps: •Identification of the contract, or contracts, with a customer; •Identification of the performance obligations in the contract; •Determination of the transaction price; •Allocation of the transaction price to the performance obligations in the contract; and •Recognition of revenue when, or as, the Company satisfies a performance obligation. Revenue is recognized when control of the promised goods or services 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 and discounts, as a reduction of the transaction price. The Company estimates its liability for product returns based on historical return trends by product category, impact of seasonality, and an evaluation of current economic and market conditions and records the expected customer refund liability as a reduction to revenue, and the expected inventory right of recovery as a reduction of cost of revenue. If actual return costs differ from previous estimates, the amount of the liability and corresponding revenue are adjusted in the period in which such costs occur. Some of the Company’s contracts with customers contain multiple performance obligations. For customer contracts that include multiple performance obligations, the Company accounts for individual performance obligations if they are distinct. The transaction price is then allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling price based on prices charged to customers. Connected Fitness Products Connected Fitness Products include the Company’s Bike and Tread, related accessories, branded apparel, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts when the product has been delivered to the customer, except for extended warranty revenue which is recognized over the warranty period. The Company allows customers to return products within thirty days of purchase, as stated in its return policy. The Company records fees paid to third-party financing partners in connection with its consumer financing program as a reduction of revenue, as it considers such costs to be a customer sales incentive. The Company records payment processing fees for its credit card sales for Connected Fitness Products within Sales and marketing in the Company's consolidated statements of operations and comprehensive loss. Subscription The Company’s subscriptions provide unlimited access to content in its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month basis. Amounts paid for subscription fees are included within customer deposits and deferred revenue and recognized ratably on a month-to-month basis. The Company records payment processing fees for its monthly subscription charges within cost of subscription revenue in the Company's 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 balance sheet. The Company offers a standard product warranty that its Connected Fitness Products will operate under normal, non-commercial use for a period of one year from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs, including costs associated with service of Connected Fitness Products outside of the warranty period, 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 both in-house and by contract manufacturers, and in certain cases, the Company may have recourse to such contract manufacturers. The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 12 to 27 months. Revenue and related fees paid to the third-party provider are recognized on a gross basis as the Company has a continuing obligation to perform over the service period. Extended warranty revenue is recognized ratably over the extended warranty coverage period and is included in Connected Fitness Product revenue in the consolidated statements of operations and comprehensive loss. 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 selling and marketing expense.
Inventories	Inventories consist of finished goods, work-in-process and raw materials. Finished goods are manufactured by us and purchased from contract manufacturers. Connected Fitness Product, accessories, and apparel inventories are stated at the lower of cost or net realizable value on a weighted-average cost basis. The Company assesses the valuation of inventory and periodically adjusts the value for estimated excess and obsolete inventory based upon estimates of future demand and market conditions, as well as damaged or otherwise impaired goods. Spare parts are recorded as inventory and recognized in cost of goods sold as consumed.
Marketable Securities	The Company classifies its marketable debt securities as available-for-sale and, accordingly, records them at fair value. Marketable securities with original maturities of greater than three months and remaining maturities of less than one year are classified as current investments. Investments with maturities beyond one year may be classified as current based on their highly liquid nature. Unrealized holding gains and losses, are excluded from earnings and are reported net of tax in other comprehensive income until realized. Dividend and interest income is recognized when earned. Realized gains and losses, are included in earnings and are derived using the specific identification method for determining the cost of securities sold.
Property and Equipment	Property and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets. For leasehold improvements, the useful life is the lesser of the applicable lease term or the expected asset life. Charges for repairs and maintenance that do not improve or extend the lives of the respective assets are expensed as incurred. The Company capitalizes the cost of pre-production tooling which it owns during a supply arrangement. Pre-production tooling, including the related engineering costs the Company will not own or will not be used in producing products under long-term supply arrangements are expensed as incurred.
Internal-Use Software	The Company capitalizes certain qualified costs incurred in connection with the development of internal-use software. 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.
Goodwill and Intangible Assets	Goodwill represents the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interest, if any, over the fair value of identifiable assets acquired and liabilities assumed in a business combination. The Company has no intangible assets with indefinite useful lives. Intangible assets other than goodwill are comprised of acquired developed technology. At initial recognition, intangible assets acquired in a business combination are recognized at their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses, if any, and are amortized on a straight-line basis over the estimated useful life of the asset. The Company reviews goodwill for impairment annually on April 1 of each fiscal year or whenever events or changes in circumstances indicate that an impairment may exist. In conducting its annual impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If factors indicate that the fair value of the reporting unit is less than its carrying amount, the Company performs a quantitative assessment and the fair value of the reporting unit is determined by analyzing the expected present value of future cash flows. If the carrying value of the reporting unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal to the excess is recorded. The Company assesses the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Impairment of Long-Lived Assets	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted net future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds fair value.
Cost of Revenue	Connected Fitness Products Cost of revenue consists of product costs, including manufacturing costs, duties and other applicable importing costs, shipping and handling costs, packaging, warranty replacement costs, fulfillment costs, warehousing costs, and certain allocated costs related to management, facilities, and personnel-related expenses associated with supply chain logistics. Subscription Subscription cost of revenue includes costs associated with content creation and cost to stream content to Members across the Company’s platform. These costs consist of both fixed costs, including studio rent and overhead costs and instructor and production personnel costs, as well as variable costs, including music royalty fees, content costs for past use, third-party platform streaming costs, and payment processing fees for monthly subscription billings.
Music Royalty Fees	The Company recognizes music royalty fees on all music it streams to Members as these fees are incurred in accordance with the terms of the relevant license agreement with the music rights holder. The incurrence of the royalties is primarily driven by content usage by the Company’s Members through the use of a paid subscription, or as part of a free-trial offer and it is classified as subscription cost of revenue or sales and marketing expense, respectively, within the Company’s statement of operations and comprehensive loss. The Company’s license agreements with music rights holders generally include provisions for advance royalties as well as minimum guarantees. When a minimum guarantee is paid in advance, the guarantee is recorded as a cost to fulfill or prepaid asset and amortized over the shorter of the period consumed or the term of the agreement. As the Company executes music license agreements with various music rights holders for go-forward usage, the Company may also simultaneously enter into a settlement agreement whereby the Company is released from all potential licensor claims regarding the Company’s alleged past use of copyrighted material in exchange for a negotiated payment. These are referred to as “content costs for past use” and are recorded within subscription cost of revenue. The Company has entered into agreements with music rights holders who represent all the music catalogs that the Company needs to operate its service, however, given the uncertain and opaque nature of music rights ownership, the Company’s archived library may continue to include music for which certain rights or fractional interests have not been accurately determined or fully licensed. Prior to the execution of a music license agreement, the Company estimates and records a charge based upon license agreements previously entered into and the respective music rights holdings.
Income Taxes	The Company utilizes the asset and liability method for computing its income tax provision. Deferred tax assets and liabilities reflect the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities as well as operating loss, capital loss, and tax credit carryforwards, using enacted tax rates. Management makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits, which to date have not been material, are recognized within income tax expense.
Advertising Costs	Advertising and other promotional costs to market the Company's products are expensed as incurred.
Research and Development Costs	Research and development expenses consist primarily of personnel- and facilities-related expenses, consulting and contractor expenses, tooling and prototype materials and software platform expenses. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses are expensed as incurred. We capitalize certain qualified costs incurred in connection with the development of internal-use software.
Stock-Based Compensation and Common Stock Valuations	In August 2019, the Company's Board of Directors ("Board of Directors") adopted the 2019 Employee Stock Purchase Plan ("ESPP"), which was subsequently approved by the Company’s stockholders in September 2019. The Company recognizes stock-based compensation expense related to shares issued pursuant to its ESPP on a straight-line basis over the offering period, which is twenty-four months. The ESPP allows employees to purchase shares of the Company's Class A common stock at a 15 percent discount. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date. 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. Stock-based awards are measured at the grant date based on the fair value of the award and are recognized as expense, net of actual forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. For performance-based awards issued, the value of the instrument is measured at the grant date as the fair value of the award and expensed over the vesting term under an accelerated attribution method when the performance targets are considered probable of being achieved. The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The determination of the grant date fair value of stock awards issued is affected by a number of variables, including the fair value of the Company’s common stock, the expected common stock price volatility over the expected life of the awards, the expected term of the stock option, risk-free interest rates, and the expected dividend yield of the Company’s common stock. The Company derives its volatility from the average historical stock volatilities of several peer public companies over a period equivalent to the expected term of the awards. The Company estimates the expected term based on the simplified method for employee stock options considered to be “plain vanilla” options, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant. Expected dividend yield is 0.0% as the Company has not paid and does not currently anticipate paying dividends on its common stock. Generally, the 2019 Plan permits the early exercise of stock options granted prior to the IPO. The unvested portion of shares exercised is recorded as a liability on the Company’s balance sheet and reclassified to equity as vesting occurs. The Company has historically granted stock options at exercise prices equal to the fair value as determined by the Board of Directors on the date of grant. Prior to the Company's IPO, in the absence of a public trading market, the Board of Directors, with input from management, exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the Company’s common stock as of the date of each stock option grant, including: •relevant precedent transactions involving the Company’s capital stock; •the liquidation preferences, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to the common stock; •the Company’s actual operating and financial performance; •current business conditions and projections; •the Company’s stage of development; •the likelihood and timing of achieving a liquidity event for the shares of common stock underlying the stock options, such as an initial public offering, given prevailing market conditions; •any adjustment necessary to recognize a lack of marketability of the common stock underlying the granted options; •recent secondary stock sales and tender offers; •the market performance of comparable publicly traded companies; and •U.S. and global capital market conditions. In addition, prior to the Company's IPO, the Board of Directors considered the independent valuations completed by a third-party valuation consultant. The valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. Subsequent to the IPO, the fair value of the common stock is the closing stock price of the Company's Class A common stock as reported on the Nasdaq Global Select Market.
Defined Contribution Plan	The Company maintains a 401(k) savings plan covering all employees. Participating employees may contribute a portion of their salary into the savings plan, subject to certain limitations. The Company matches 100% of each employee's contributions, up to a maximum of 4% of the employee's eligible earnings. For the fiscal years ended June 30, 2020, 2019, and 2018, the Company's matching contributions totaled $8.4 million, $4.3 million, and $1.6 million, respectively, and were expensed as contributed.
Commitments and Contingencies	Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If a loss is reasonably possible and the loss or range of loss can be reasonably estimated, the Company discloses the possible loss or states that such an estimate cannot be made.
Fair Value of Financial Instruments	Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurement or assumptions that market participants would use in pricing the assets or liabilities, such as inherent risk, transfer restrictions, and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 inputs are based on quoted prices in active markets for identical assets or liabilities. •Level 2 inputs are based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 inputs are based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s material financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, and accrued expenses. The carrying values of the Company’s accounts receivable, accounts payable and accrued expenses approximated their fair values at June 30, 2020 and 2019, due to the short period of time to maturity or repayment.
Earnings (Loss) Per Share	The Company computes earnings (loss) per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s redeemable convertible preferred stock, restricted stock awards, and common stock issued upon early exercise of stock options are participating securities. The Company considers any shares issued upon early exercise of stock options, subject to repurchase, to be participating securities because holders of such shares have non-forfeitable dividend rights in the event a cash dividend is declared on common stock. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities. Basic earnings (loss) per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings (loss) per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options, ESPP shares to be issued, and vesting of restricted stock awards. During the fiscal year ended June 30, 2019, the excess of the repurchase price of preferred stock over its carrying value (see Note 18) has been recorded as an increase to net loss to determine net loss attributable to common stockholders.
Use of Estimates	The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to revenue related reserves, the realizability of inventory, content costs for past use reserve, fair value measurements including common stock valuations, the incremental borrowing rate associated with lease liabilities, useful lives of property and equipment, product warranty, goodwill and finite-lived intangible assets, accounting for income taxes, stock-based compensation expense, transaction price estimates, the fair values of assets acquired and liabilities assumed in business combinations, contingent consideration, and commitments and contingencies. Actual results may differ from these estimates.
Recently Issued Accounting Pronouncements	Accounting Pronouncements Recently Adopted ASU 2016-02 In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases, which introduced and codified new lease accounting guidance under Accounting Standards Codification No. 842, Leases ("ASC 842"). ASC 842 requires a lessee to separate the lease components from the non-lease components in a contract and recognize in the statement of financial position a lease payment liability and a right-of-use asset representing its right to use the underlying asset for the lease term. The Company adopted this ASU and related amendments as of July 1, 2019 under the modified retrospective approach, whereby all prior periods continue to be reported under previous lease accounting guidance. The Company elected the package of practical expedients and, as permitted, the Company did not assess whether existing contracts are or contain leases, the lease classification for any existing leases, and identification of initial direct costs for any existing leases. In addition, the Company elected to apply the practical expedient that allows for the combination of lease and non-lease components. Adoption of the new standard resulted in the recognition of right-of-use assets and operating lease liabilities on the Company's consolidated balance sheet. In addition, the Company de-recognized a build-to-suit arrangement in accordance with the transition requirements, which resulted in an adjustment to retained earnings. The standard did not materially impact the Company's consolidated statements of operations and comprehensive loss. See Note 11 for further discussion of the Company's accounting for leases under ASC 842. ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment, to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The standard is effective for public entities for annual or any interim goodwill impairment tests in annual reporting years beginning after December 15, 2019. For all other entities, including emerging growth companies, the standard is effective for annual or any interim goodwill impairment tests in annual reporting years beginning after December 15, 2021. Early adoption of this standard is permitted. The Company adopted this ASU on July 1, 2019. The standard did not materially impact the Company's consolidated financial statements. ASU 2018-07 In June 2018, the FASB issued ASU 2018-07 to expand the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company adopted this ASU on July 1, 2019. The standard did not materially impact the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This standard changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which may result in earlier recognition of allowances for losses, and require expected credit losses to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. The Company has completed its assessment and adopted this standard on July 1, 2020. The standard did not materially impact the Company's consolidated financial statements. ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which amends ASC Topic 740, Income Taxes. This ASU simplifies the accounting for income taxes by modifying the treatment of intraperiod tax allocation in certain circumstances, eliminating an exception to recognizing deferred tax liabilities for outside basis differences for foreign equity method investments and foreign subsidiaries when ownership or control changes, and modifying interim period tax calculations when a loss is forecast. In addition, this ASU also requires that enacted changes in tax laws or rates be included in the annual effective rate determination in the period that includes the enactment date and clarifies the tax accounting of a step up in tax basis of goodwill. The Company has completed its assessment and adopted this standard on July 1, 2020. The standard did not materially impact the Company's consolidated financial statements. ASU 2020-04 In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This guidance provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities' financial reporting burdens as the market transitions from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the potential impact of adopting this new accounting guidance, but does not expect the adoption of the standard to have a material impact on its consolidated financial statements.
Customer Deposits and Deferred Revenue	Deferred revenue is recorded for nonrefundable cash payments received for the Company’s performance obligation to transfer, or stand ready to transfer, goods or services in the future. Deferred revenue consists of subscription fees billed that have not been recognized. Customer deposits represent payments received in advance before the Company transfers a good or service to the customer and are refundable.
Leases	Right-of-use assets and lease liabilities are established on the consolidated balance sheets for leases with an expected term greater than one year. As the rate implicit in the lease is not determinable, the Company uses its secured incremental borrowing rate to determine the present value of the lease payments. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. The Company has elected to not separate lease and non-lease components. The Company's lease terms include options to extend or terminate the underlying lease when it is reasonably certain that the Company will exercise that option. The operating lease arrangements included in the measurement of lease liabilities do not reflect options to extend or terminate, as management does not consider the exercise of these options to be reasonably certain. Variable lease payments include, but are not limited to, percentage of sales, common area charges, taxes paid by the landlord that are charged to the Company, and changes to the consumer price index. Variable lease payments are expensed as incurred.

Revenue (Tables)

12 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The Company's revenue disaggregated by geographic region, were as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
North America⁽¹⁾	$	1,743.6	$	897.9	$	435.0
Rest of world ⁽²⁾	82.3		17.1		—
Total revenue	$	1,825.9	$	915.0	$	435.0

_________________________

(1) Consists of United States and Canada.

(2) Consists of United Kingdom and Germany.

Investments in Marketable Securities (Tables)

12 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Investments in Marketable Securities

The following table summarizes the Company's investments in marketable securities:


	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Corporate bonds	$	397.7	$	2.1	$	(0.2)	$	399.6
U.S. treasury securities	300.5		1.9		—		302.4
Commercial paper	17.4		—		—		17.4
Certificate of deposits	38.6		0.1		—		38.7
	$	754.2	$	4.1	$	(0.2)	$	758.1
Less: Restricted marketable securities ⁽¹⁾							$	38.5
Total marketable securities							$	719.5

_________________________


	June 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Commercial paper	$	97.6	$	—	$	—	$	97.6
Corporate bonds	61.9		0.1		—		62.0
Certificate of deposits	34.8		—		—		34.8
U.S. treasury securities	29.7		0.1		—		29.8
Total marketable securities ⁽¹⁾	$	224.1	$	0.2	$	—	$	224.3

_________________________

(1) Includes $8.3 million included within cash and cash equivalents

Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Summary of Assets Measured at Fair Value on a Recurring Basis

The following table summarizes the Company's assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy:


	As of June 30, 2020
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Marketable securities:	$	758.1	$	—	$	—	$	758.1
Cost-method investments	—		—		0.7		0.7
Total	$	758.1	$	—	$	0.7	$	758.8

Liabilities
Other current liabilities:
Contingent consideration	$	—	$	—	$	2.5	$	2.5
Other non-current liabilities:
Contingent consideration	—		—		4.6		4.6
Total	$	—	$	—	$	7.1	$	7.1


	As of June 30, 2019
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets
Marketable securities ⁽¹⁾	$	224.3	$	—	$	—	$	224.3
Cost-method investments	—		—		0.6		0.6
Total	$	224.3	$	—	$	0.6	$	224.9

_________________________

(1) Includes $8.3 million included in cash and cash equivalents.

Inventory (Tables)

12 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories were as follows:


	As of June 30,
	2020		2019
	(in millions)
Raw materials	$	17.8	$	—

Work-in-process	4.6		—
Finished products	232.5		152.0
Total inventories	254.9		152.0
Less: Reserves	(10.5)		(15.4)
Total inventories, net	$	244.5	$	136.6

Acquisition of Tonic Fitness Technology (Tables)

12 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed


	As of October 16, 2019
	(in millions)
Inventory	$	11.8
Other current assets	29.1
Property and equipment	20.4
Goodwill	32.3
Other assets	2.2
Total assets	$	95.7
Current liabilities	(49.9)
Other liabilities	(0.8)
Total liabilities	$	(50.7)
Net assets acquired	$	45.0

Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and Equipment consisted of the following:


	As of June 30,
	2020		2019
	(in millions)
Land	$	7.1	$	—
Buildings⁽¹⁾	9.2		149.3
Leasehold Improvements	115.4		47.6
Equipment	35.1		14.9
Furniture and Fixtures	9.8		7.5
Software	32.7		16.0
Construction in Progress	97.1		40.1
Total property and equipment	306.2		275.4
Accumulated depreciation and amortization	(64.0)		(25.6)
Total property and equipment, net	$	242.3	$	249.7

_________________________

(1) Includes zero and $147.1 for the years ended June 30, 2020 and 2019, respectively, for the Company's build-to-suit asset.

The estimated useful lives of property and equipment are as follows:


Buildings						20 years
Leasehold Improvements						Shorter of remaining lease term or useful life
Equipment						Three to five years
Furniture and Fixtures						Two to ten years
Software						Two to three years

Goodwill and Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Value of Goodwill

The changes in the carrying value of goodwill are as follows:


	Amount
	(in millions)
June 30, 2018	$	4.2
Acquisition	0.1
June 30, 2019	4.3
Acquisition	32.3
Foreign currency translation	2.6
June 30, 2020	$	39.1

Schedule of Intangible Assets, Net

The gross carrying amount and accumulated amortization of the Company's intangible assets, net, as of June 30, 2020 were as follows:


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life (Years)
Acquired developed technology	$	24.8	$	10.3	$	14.5	3.0
Definite-lived intangibles	1.6		0.1		1.5		4.7
Total intangible assets	$	26.4	$	10.4	$	16.0

The gross carrying amount and accumulated amortization of the Company's intangible assets, net, as of June 30, 2019 were as follows:


	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Remaining Useful Life (Years)
Acquired developed technology	$	24.8	$	5.3	$	19.5	4.0

Schedule of Estimated Amortization for Identifiable Acquisition-Related Intangible Assets in Future Periods

As of June 30, 2020, estimated amortization related to the Company's identifiable acquisition-related intangible assets in future periods were as follows:


Fiscal Year Ending June 30,	Amount
	(in millions)
2021	$	5.3
2022	5.3
2023	4.9
2024	0.3
2025	0.2
Total	$	16.0

Accrued Expenses (Tables)

12 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consisted of the following:


	Fiscal Year Ended June 30,
	2020		2019
	(in millions)
Inventory received but not billed	$	88.6	$	12.8
Accrued music licensing royalties	37.9		25.8
Employee-related liabilities	35.1		9.7
Accrued marketing	5.8		19.3
Other	58.5		36.8
Total accrued expenses	$	225.9	$	104.5

Leases (Tables)

12 Months Ended

Jun. 30, 2020

Leases [Abstract]

Schedule of Maturities of Lease Liabilities for Operating Leases

As of June 30, 2020, the total remaining lease payments included in the measurement of lease liabilities for operating leases were as follows:


Fiscal Year Ending June 30,	Future Minimum Payments
	(in millions)
2021⁽¹⁾	$	48.1
2022⁽²⁾	55.2
2023	68.0
2024	64.4
2025	59.2
Thereafter	522.3
Total	$	817.3

_________________________

(1) Includes $22.8 million in tenant improvement receivable.

(2) Includes $13.3 million in tenant improvement receivable.

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental information related to leases was as follows:


Reconciliation of Lease Liabilities	As of June 30, 2020
	(dollars in millions)
Weighted-average remaining lease term (years)	12.7
Weighted-average discount rate	5.84		%
Total Undiscounted Lease Liability	$	817.3
Less: Imputed interest	(272.1)
Total Discounted Lease Liability	$	545.1
Current portion of lease liability	$	36.9
Non-current portion of lease liability	$	508.2

Schedule of Supplemental Cash Flow and Other Information Related to Leases

Supplemental cash flow and other information related to leases was as follows:


Cash Paid For Amounts Included In Measurement of Liabilities	Fiscal Year Ended June 30, 2020
	(in millions)
Operating cash flows from operating leases	$	45.2

Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	356.2

Commitment and Contingencies (Tables)

12 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Minimum Annual Guarantee 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:


	Future Minimum Payments
	(in millions)
2021	$	26.9
2022	13.5
2023	3.2
2024	0.7
Total	$	44.3

Equity-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following summary sets forth the stock option activity under the 2019 Plan:


	Options Outstanding
	Number of Stock Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding — June 30, 2019	64,602,124	$	6.71	8.6	$	972.0
Granted	12,086,466	$	27.11
Exercised	(7,815,137)	$	4.12
Forfeited	(2,054,593)	$	11.01
Outstanding — June 30, 2020	66,818,860	$	10.57	8.0	$	3,153.6
Vested and Exercisable— June 30, 2020	27,144,270	$	4.70	6.9	$	1,440.5

Unvested option activity is as follows:


	Options	Weighted-Average Grant Date Fair Value
Unvested - June 30, 2019	46,078,443	$	4.89
Granted	12,086,466	$	12.17
Early exercised unvested	(113,688)	$	3.94
Vested	(16,335,310)	$	4.10
Forfeited	(2,041,321)	$	5.33
Unvested - June 30, 2020	39,674,590	$	7.41

Summary 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:


	Fiscal Year Ended June 30,
	2020	2019	2018
Weighted average risk-free interest rate⁽¹⁾	1.1%	2.5%	2.4%
Weighted average expected term (in years)	6.2	6.3	6.3
Weighted average expected volatility ⁽²⁾	44.9%	45.0%	55.2%
Expected dividend yield	—	—	—

____________________________

(1) Based on U.S. Treasury seven-year constant maturity interest rate whose term is consistent with the expected term of the option.

(2) Expected volatility is based on an analysis of comparable public company volatilities and adjusted for the Company’s stage of development.

Summary 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, 2019	—	$	—
Granted	706,825	$	32.02
Vested and converted to common stock	(90,712)	$	31.99
Outstanding — June 30, 2020	616,113	$	32.02

Summary of Stock-Based Compensation Expense

The Company's total stock-based compensation expense was as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Cost of revenue
Connected Fitness Products	$	3.2	$	0.3	$	—
Subscription	7.5		3.2		0.5
Total cost of revenue	10.7		3.5		0.5
Sales and marketing	15.3		8.4		0.7
General and administrative	52.4		70.5		6.5
Research and development	10.4		7.1		0.8
Total stock-based compensation expense	$	88.8	$	89.5	$	8.5

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Loss Before Income Taxes

The components of loss before income taxes are as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
United States	$	(15.6)	$	(164.4)	$	(47.0)
Foreign	(52.8)		(31.2)		(0.8)
Loss from operations before income taxes	$	(68.4)	$	(195.6)	$	(47.8)

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense/(benefit) are as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	1.2		0.1		0.1
Foreign	3.0		0.3		—
	4.2		0.4		0.1
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(0.9)		(0.3)		—
	(0.9)		(0.3)		—
Total	$	3.3	$	0.1	$	0.1

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
Federal income tax rate	21.0	%	21.0	%	28.1	%
Permanent differences	(1.8)		(4.2)		(1.0)
Share based compensation	34.2		—		—
Return to provision	(3.8)		(0.4)		—
Effects of rates different than statutory	—		(0.3)		—
State and local income taxes, net of federal benefit	8.6		3.0		4.5
Franchise tax	(1.2)		—		(0.1)
Change in valuation allowance	(65.6)		(21.0)		3.7
Rate change	(0.5)		(0.4)		(39.3)
Federal credits	4.4		2.3		4.0
Other	(0.1)		—		—
Effective income tax rate	(4.8)	%	—	%	(0.1)	%

Schedule of Deferred Tax Assets (Liabilities)


	Fiscal Year Ended June 30,
	2020		2019
	(in millions)
Deferred tax assets:
Net operating loss	$	63.9	$	34.4
Accruals and reserves	13.7		10.0
R&D credit	9.2		7.7
Accrued legal and professional fees	5.3		4.8
Non-qualified stock options	20.8		8.8
Restricted stock options	2.5		—
Deferred rent	—		2.9
Property and equipment	—		0.2
Intangible amortization	—		0.9
Inventory capitalization	8.8		5.0
Lease liability	129.6		—
Deferred revenue	8.4		10.4
Tenant Improvement Allowance	—		2.9
Other	1.1		0.6
Total deferred tax assets:	263.3		88.5
Valuation allowance	(128.5)		(86.9)
Deferred tax liabilities:
Prepaid Expenses	(3.1)		(1.4)
Property and equipment	(10.6)		—
Intangible amortization	(2.1)		—
Right-of-use assets	(116.4)		—
Other	(1.0)		—
Total deferred tax liabilities:	(133.2)		(1.4)
Deferred tax assets, net	$	1.6	$	0.3

Loss Per Share (Tables)

12 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Computation of Loss Per Share

The computation of loss per share is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Basic loss per share:
Net loss	$	(71.6)	$	(195.6)	$	(47.9)
Less: Premium on repurchase of convertible preferred stock	—		(50.1)		—
Net loss attributable to common stockholders	$	(71.6)	$	(245.7)	$	(47.9)
Shares used in computation:
Weighted-average common shares outstanding	220,952,237		22,911,764		21,934,228
Basic loss per share	$	(0.32)	$	(10.72)	$	(2.18)

Schedule of Potentially Diluted Securities Not Included in Calculation of Diluted Shares Outstanding

The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:


	Year Ended June 30,
	2020	2019	2018
Stock options	41,476,591	20,609,654	12,890,826
Restricted stock and restricted stock units	41,855	—	—
Shares estimated to be purchased under ESPP	66,019	—	—
Warrants	—	234,527	224,903
Redeemable convertible preferred stock	—	210,640,629	176,313,468

Segment Information (Tables)

12 Months Ended

Jun. 30, 2020

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:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Connected Fitness Products:
Revenue	$	1,462.2	$	733.9	$	354.7
Cost of revenue	833.5		427.8		199.9
Gross profit	$	628.8	$	306.2	$	154.9
Subscription:
Revenue	$	363.7	$	181.1	$	80.3
Cost of revenue	155.7		103.7		45.5
Gross profit	$	208.0	$	77.4	$	34.7




Consolidated:
Revenue	$	1,825.9	$	915.0	$	435.0
Cost of revenue	989.1		531.4		245.4
Gross profit	$	836.7	$	383.6	$	189.6

Reconciliation of Segment Gross Profit to Consolidated Loss Before Tax

The reconciliation between reportable segment gross profit to consolidated loss before tax is as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
	(in millions)
Segment Gross Profit	$	836.7	$	383.6	$	189.6
Sales and marketing	(477.0)		(324.0)		(151.4)
General and administrative	(351.6)		(207.0)		(62.4)
Research and development	(89.0)		(54.8)		(23.4)
Total other income (expense), net	12.4		6.7		(0.3)
Loss before provision for income taxes	$	(68.4)	$	(195.6)	$	(47.8)

Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Jun. 30, 2020

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Information

Selected summarized quarterly financial information for the fiscal years ended June 30, 2020 and 2019 was as follows:


	Year ended		Three months ended
	Jun. 30, 2020		Jun. 30, 2020		Mar. 31, 2020		Dec. 31, 2019		Sept. 30, 2019
			(in millions)
Total revenue	$	1,825.9	$	607.1	$	524.6	$	466.3	$	228.0
Gross profit	836.7		288.8		245.8		197.1		105.1
Income (loss) from operations ⁽¹⁾	(80.8)		90.0		(58.4)		(61.5)		(50.9)
Net income (loss)	(71.6)		89.1		(55.6)		(55.4)		(49.8)
Net income (loss) per share attributable to common stockholders, basic ⁽²⁾	$	(0.32)	$	0.31	$	(0.20)	$	(0.20)	$	(1.29)
Net income (loss) per share attributable to common stockholders, diluted ⁽²⁾	$	(0.32)	$	0.27	$	(0.20)	$	(0.20)	$	(1.29)

_________________________

(1) Net income from operations for the three months ended June 30, 2020, reflects strong demand due to the ongoing COVID-19 pandemic coupled with the pause on the majority of marketing spend.

(2) The sum of the income (loss) per share for the four quarters may differ from annual income (loss) per share due to the required method of computing the weighted average shares in interim periods.


	Year ended		Three months ended
	Jun. 30, 2019		Jun. 30, 2019		Mar. 31, 2019		Dec. 31, 2018		Sept. 30, 2018
			(in millions)
Total revenue	$	915.0	$	223.3	$	316.7	$	262.9	$	112.1
Gross profit	383.6		100.1		120.6		111.3		51.5
(Loss) from operations	(202.3)		(49.4)		(41.4)		(56.0)		(55.6)
Net (loss)	(195.6)		(47.4)		(38.6)		(55.1)		(54.5)
Net (loss) per share attributable to common stockholders, basic and diluted ⁽¹⁾	$	(10.72)	$	(2.07)	$	(1.76)	$	(4.83)	$	(2.18)

_________________________

(1) The sum of the income (loss) per share for the four quarters may differ from annual income (loss) per share due to the required method of computing the weighted average shares in interim periods.

Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Billions	1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2020 segment	Mar. 31, 2020 segment	Jun. 30, 2020 shares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments \| segment		2	3
Class of Stock [Line Items]
Number of operating segments \| segment		2
Number of reportable segments \| segment		2	3
Common Stock
Class of Stock [Line Items]
Stock converted (in shares)	25,301,604
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629			210,600,000
Class B Common Stock \| Common Stock
Class of Stock [Line Items]
Shares issued after conversion (in shares)	25,301,604
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629
Initial Public Offering
Class of Stock [Line Items]
Aggregate proceeds received from initial public offering, net of underwriters' discounts and commissions \| $	$ 1.2
Initial Public Offering \| Class A Common Stock
Class of Stock [Line Items]
Shares issued in initial public offering (in shares)	43,448,275
Price per share in initial public offering (in dollars per share) \| $ / shares	$ 29.00

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Class of Stock [Line Items]
Advertising expenses	$ 302.8	$ 218.8	$ 101.4
Expected dividend yield	0.00%
Employer matching contribution (as a percent)	100.00%
Employer matching contribution, percent of employee's eligible earnings	4.00%
Employer matching contribution	$ 8.4	$ 4.3	$ 1.6
ESPP
Class of Stock [Line Items]
Expected dividend yield	0.00%
ESPP \| 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Employee stock purchase plan, offering period	24 months
Purchase of common stock, employee discount percentage	15.00%
Internal-Use Software \| Maximum
Class of Stock [Line Items]
Useful life	3 years

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Customer deposits	$ 341.5	$ 81.3
Deferred revenue	22.1	9.5
Revenue recognized that was previously included in deferred revenue	$ 9.5	$ 2.9
United States \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of total revenue	93.00%	97.00%	100.00%
Minimum
Disaggregation of Revenue [Line Items]
Extended product warranty period	12 months
Maximum
Disaggregation of Revenue [Line Items]
Extended product warranty period	27 months

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total revenue	$ 607.1	$ 524.6	$ 466.3	$ 228.0	$ 223.3	$ 316.7	$ 262.9	$ 112.1	$ 1,825.9	$ 915.0	$ 435.0
North America
Disaggregation of Revenue [Line Items]
Total revenue									1,743.6	897.9	435.0
Rest of World
Disaggregation of Revenue [Line Items]
Total revenue									$ 82.3	$ 17.1	$ 0.0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 4
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Investments in Marketable Securities - Schedule of Investments in Marketable Securities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 754.2	$ 224.1
Gross Unrealized Gains	4.1	0.2
Gross Unrealized Losses	(0.2)	0.0
Fair Value	758.1	224.3
Restricted marketable securities	38.5
Total marketable securities	719.5
Cash and Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value		8.3
Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	397.7	61.9
Gross Unrealized Gains	2.1	0.1
Gross Unrealized Losses	(0.2)	0.0
Fair Value	399.6	62.0
U.S. Treasury Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	300.5	29.7
Gross Unrealized Gains	1.9	0.1
Gross Unrealized Losses	0.0	0.0
Fair Value	302.4	29.8
Commercial Paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	17.4	97.6
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	17.4	97.6
Certificates of Deposits
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	38.6	34.8
Gross Unrealized Gains	0.1	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	$ 38.7	$ 34.8

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Assets
Marketable securities	$ 758.1	$ 224.3
Recurring
Assets
Marketable securities	758.1	224.3
Cost-method investments	0.7	0.6
Total	758.8	224.9
Other current liabilities:
Contingent consideration	2.5
Other non-current liabilities:
Contingent consideration	4.6
Total	7.1
Recurring \| Level 1
Assets
Marketable securities	758.1	224.3
Cost-method investments	0.0	0.0
Total	758.1	224.3
Other current liabilities:
Contingent consideration	0.0
Other non-current liabilities:
Contingent consideration	0.0
Total	0.0
Recurring \| Level 2
Assets
Marketable securities	0.0	0.0
Cost-method investments	0.0	0.0
Total	0.0	0.0
Other current liabilities:
Contingent consideration	0.0
Other non-current liabilities:
Contingent consideration	0.0
Total	0.0
Recurring \| Level 3
Assets
Marketable securities	0.0	0.0
Cost-method investments	0.7	0.6
Total	0.7	$ 0.6
Other current liabilities:
Contingent consideration	2.5
Other non-current liabilities:
Contingent consideration	4.6
Total	$ 7.1

Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 17.8	$ 0.0
Work-in-process	4.6	0.0
Finished products	232.5	152.0
Total inventories	254.9	152.0
Less: Reserves	(10.5)	(15.4)
Total inventories, net	$ 244.5	$ 136.6

Acquisition of Tonic Fitness Technology - Narrative (Details) - USD ($)		12 Months Ended
	Oct. 16, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition [Line Items]
Goodwill		$ 39,100,000	$ 4,300,000	$ 4,200,000
Tonic Fitness Technology
Business Acquisition [Line Items]
Purchase price	$ 45,000,000.0
Production milestone recognition period	4 years
Contingent payment recorded as an earn-out liability	$ 6,800,000
Maximum payout of contingent liability	7,500,000
Acquisition related costs		$ 300,000
Goodwill	32,300,000
Amount of goodwill expected to be tax deductible	$ 0

Acquisition of Tonic Fitness Technology - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Jun. 30, 2020	Oct. 16, 2019	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition [Line Items]
Goodwill	$ 39.1		$ 4.3	$ 4.2
Tonic Fitness Technology
Business Acquisition [Line Items]
Inventory		$ 11.8
Other current assets		29.1
Property and equipment		20.4
Goodwill		32.3
Other assets		2.2
Total assets		95.7
Current liabilities		(49.9)
Other liabilities		(0.8)
Total liabilities		(50.7)
Net assets acquired		$ 45.0

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Property and Equipment [Line Items]
Total property and equipment	$ 306.2	$ 275.4
Accumulated depreciation and amortization	(64.0)	(25.6)
Property and equipment, net	242.3	249.7
Land
Property and Equipment [Line Items]
Total property and equipment	7.1	0.0
Buildings
Property and Equipment [Line Items]
Total property and equipment	9.2	149.3
Leasehold Improvements
Property and Equipment [Line Items]
Total property and equipment	115.4	47.6
Equipment
Property and Equipment [Line Items]
Total property and equipment	35.1	14.9
Furniture and Fixtures
Property and Equipment [Line Items]
Total property and equipment	9.8	7.5
Software
Property and Equipment [Line Items]
Total property and equipment	32.7	16.0
Construction in Progress
Property and Equipment [Line Items]
Total property and equipment	$ 97.1	40.1
Build-To-Suit Asset
Property and Equipment [Line Items]
Total property and equipment		$ 147.1

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Property and Equipment [Line Items]
Depreciation and amortization expense	$ 35.1	$ 16.7	$ 6.3
Amortization of capitalized software costs	$ 6.8	$ 3.3	$ 1.2
Property, Plant and Equipment Benchmark \| United Kingdom \| Geographic Concentration Risk
Property and Equipment [Line Items]
Percentage of total property and equipment, net	11.00%
Property, Plant and Equipment Benchmark \| United States \| Geographic Concentration Risk
Property and Equipment [Line Items]
Percentage of total property and equipment, net	79.00%	97.00%

Property and Equipment - Schedule of Useful Lives (Details)	12 Months Ended
	Jun. 30, 2020
Buildings
Property and Equipment [Line Items]
Useful life	20 years
Equipment \| Minimum
Property and Equipment [Line Items]
Useful life	3 years
Equipment \| Maximum
Property and Equipment [Line Items]
Useful life	5 years
Furniture and Fixtures \| Minimum
Property and Equipment [Line Items]
Useful life	2 years
Furniture and Fixtures \| Maximum
Property and Equipment [Line Items]
Useful life	10 years
Software \| Minimum
Property and Equipment [Line Items]
Useful life	2 years
Software \| Maximum
Property and Equipment [Line Items]
Useful life	3 years

Goodwill and Intangible Assets - Schedule of Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Goodwill [Roll Forward]
Beginning balance	$ 4.3	$ 4.2
Acquisition	32.3	0.1
Foreign currency translation	2.6
Ending balance	$ 39.1	$ 4.3

Goodwill and Intangible Assets - Accumulated Amortization of Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 26.4
Accumulated amortization	10.4
Total	16.0	$ 19.5
Intangible asset amortization	5.1	5.0	$ 0.3
Acquired developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	24.8	24.8
Accumulated amortization	10.3	5.3
Total	$ 14.5	$ 19.5
Weighted average remaining useful life (in years)	3 years	4 years
Definite-lived intangibles
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 1.6
Accumulated amortization	0.1
Total	$ 1.5
Weighted average remaining useful life (in years)	4 years 8 months 12 days

Goodwill and Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021	$ 5.3
2022	5.3
2023	4.9
2024	0.3
2025	0.2
Total	$ 16.0	$ 19.5

Accrued Expenses (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Payables and Accruals [Abstract]
Inventory received but not billed	$ 88.6	$ 12.8
Accrued music licensing royalties	37.9	25.8
Employee-related liabilities	35.1	9.7
Accrued marketing	5.8	19.3
Other	58.5	36.8
Accrued expenses	$ 225.9	$ 104.5

Leases - Schedule of Maturities of Lease Liabilities for Operating Leases (Details) $ in Millions	Jun. 30, 2020 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2021	$ 48.1
2022	55.2
2023	68.0
2024	64.4
2025	59.2
Thereafter	522.3
Total	817.3
Tenant improvement receivable in 2021	22.8
Tenant improvement receivable in 2022	$ 13.3

Leases - Schedule of Supplemental Balance Sheet Information (Details) $ in Millions	Jun. 30, 2020 USD ($)
Leases [Abstract]
Weighted-average remaining lease term	12 years 8 months 12 days
Weighted-average discount rate	5.84%
Total	$ 817.3
Less: Imputed interest	(272.1)
Total Discounted Lease Liability	545.1
Current portion of lease liability	36.9
Non-current portion of lease liability	$ 508.2
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	pton:OperatingLeaseAndOtherLiabilitiesCurrent

Leases - Schedule of Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Operating cash flows from operating leases	$ 45.2
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	356.2
Operating lease expense	89.9
Variable lease expense	11.8
Short-term lease expense	$ 1.7
Rent expense		$ 35.8	$ 15.1

Debt and Financing Arrangements (Details) - USD ($)	12 Months Ended
Debt and Financing Arrangements (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Line of Credit Facility [Line Items]
Standby letters of credit outstanding	$ 4,800,000
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 250,000,000.0
Commitment fee percentage		0.375%
Commitment fees incurred	900,000	$ 300,000	$ 200,000
Debt issuance costs		$ 900,000
Covenant, minimum level of liquidity required	125,000,000.0
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement \| Minimum
Line of Credit Facility [Line Items]
Covenant, minimum level of revenue required	725,000,000.0
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement \| Maximum
Line of Credit Facility [Line Items]
Covenant, minimum level of revenue required	$ 1,985,000,000.0
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement \| LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.75%
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement \| Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.75%
Letter of Credit \| Line of Credit \| Amended Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity (or less)		$ 150,000,000.0

Commitments and Contingencies - Minimum Guarantee Royalty Payments Due (Details) - Royalty Guarantees, Commitments $ in Millions	Jun. 30, 2020 USD ($)
Minimum Guarantee Royalty Payments, Fiscal Year Maturity [Abstract]
2021	$ 26.9
2022	13.5
2023	3.2
2024	0.7
Minimum Guarantee Royalty Payments, Total	$ 44.3

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Sep. 27, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Content costs for past use		$ 18.7	$ 19.3	$ 15.5
Content and royalty reserve		25.1	18.9
Loss Contingencies [Line Items]
Litigation and settlement expenses		$ 60.1	$ 12.1	$ 1.5
Downtown Music Publ’g LLC, et. al v. Peloton Interactive, Inc. \| Pending Litigation \| Copyright Infringement
Loss Contingencies [Line Items]
Estimate of potential damages and attorney fees	$ 300.0

Stockholders' Equity (Deficit) (Details)	1 Months Ended	12 Months Ended
Stockholders' Equity (Deficit) (Details)	Sep. 30, 2019 shares	Jun. 30, 2020 vote $ / shares shares	Jun. 30, 2019 $ / shares shares
Class of Stock [Line Items]
Percentage of common stock held		66.67%
Conversion of stock period		10 years
Percentage of common class B shares outstanding to total common shares outstanding (at least)		1.00%
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.000025
Preferred stock, shares authorized (in shares)		50,000,000
Preferred stock, shares outstanding (in shares)		0
Class A Common Stock
Class of Stock [Line Items]
Common stock, number of votes per share \| vote		1
Common stock, par value (in dollars per share) \| $ / shares		$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)		2,500,000,000	0
Common stock, shares outstanding (in shares)		237,518,574	0
Class B Common Stock
Class of Stock [Line Items]
Common stock, number of votes per share \| vote		20
Common stock, par value (in dollars per share) \| $ / shares		$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)		2,500,000,000	400,000,000
Common stock, shares outstanding (in shares)		50,538,538	25,301,604
Class B Common Stock \| Common Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock (in shares)	210,640,629	210,600,000

Equity-Based Compensation - Narrative (Details)	1 Months Ended	12 Months Ended
Equity-Based Compensation - Narrative (Details)	Sep. 30, 2019 period shares	Jun. 30, 2020 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) $ / shares	Jun. 30, 2018 USD ($) $ / shares
Class of Stock [Line Items]
Stock-based compensation expense		$ 88,800,000	$ 89,500,000	$ 8,500,000
Weighted-average grant date fair value per option (in dollars per share) \| $ / shares		$ 12.17	$ 6.71	$ 1.67
Number of vested warrants (in shares) \| shares		240,000
Number of warrants outstanding (in shares) \| shares		0
Expected dividend yield		0.00%
Series F Tender Offer
Class of Stock [Line Items]
Stock-based compensation expense			$ 61,700,000
Employee Stock Options
Class of Stock [Line Items]
Weighted average expected term		6 years 2 months 12 days	6 years 3 months 18 days	6 years 3 months 18 days
Weighted average expected volatility		44.90%	45.00%	55.20%
Weighted-average risk-free interest rate		1.10%	2.50%	2.40%
Expected dividend yield		0.00%	0.00%	0.00%
Unrecognized stock-based compensation expense		$ 291,100,000
Unrecognized stock-based compensation expense, period for recognition		3 years 3 months 18 days
Employee Stock Options \| 2015 Stock Plan
Class of Stock [Line Items]
Expiration period		10 years
Vesting period		4 years
Employee Stock Options \| 2015 Stock Plan \| Vesting Upon the 12-Month Anniversary
Class of Stock [Line Items]
Vesting percentage		25.00%
Employee Stock Options \| 2015 Stock Plan \| Vesting Monthly Over The Following 36 Months
Class of Stock [Line Items]
Vesting percentage		75.00%
Performance Based Options
Class of Stock [Line Items]
Stock-based compensation expense		$ 5,200,000	$ 800,000	$ 0
ESPP
Class of Stock [Line Items]
Stock-based compensation expense		$ 3,300,000
Weighted average expected term		1 year 1 month 6 days
Weighted average expected volatility		54.80%
Weighted-average risk-free interest rate		1.50%
Expected dividend yield		0.00%
Unrecognized stock-based compensation expense		$ 8,600,000
Unrecognized stock-based compensation expense, period for recognition		1 year 8 months 12 days
ESPP \| 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of purchase periods \| period	4
Purchase period	6 months
Commencement of offering period	2 years	2 years
Commencement of purchase period	6 months
Total modification charges to ESPP		$ 2,500,000
Common Stock \| Employee Stock Options \| 2015 Stock Plan
Class of Stock [Line Items]
Exercise price of common stock, percentage of fair market value		100.00%
Class A Common Stock \| 2019 Equity Incentive Plan
Class of Stock [Line Items]
Number of shares available for future issuance (in shares) \| shares	49,809,576
Increase in number of shares authorized, as a percentage of total common stock outstanding	5.00%
Class A Common Stock \| ESPP
Class of Stock [Line Items]
Number of shares purchased under ESPP (in shares) \| shares		162,639
Weighted-average price of shares purchased under ESPP (in dollars per share) \| $ / shares		$ 22.69
Class A Common Stock \| ESPP \| 2019 Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of shares available for future issuance (in shares) \| shares		5,600,000
Increase in number of shares authorized, as a percentage of total common stock outstanding	1.00%
Purchase price of common stock, percentage of fair market value	85.00%
Class B Common Stock
Class of Stock [Line Items]
Number of shares exercised from warrants (in shares) \| shares		238,253
Exercise price of warrants (in dollars per share) \| $ / shares		$ 0.19

Equity-Based Compensation - Summary of Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Stock Options Outstanding
Stock options outstanding, beginning balance (in shares)	64,602,124
Granted (in shares)	12,086,466
Exercised (in shares)	(7,815,137)
Forfeited (in shares)	(2,054,593)
Stock options outstanding, ending balance (in shares)	66,818,860	64,602,124
Stock options vested and exercisable (in shares)	27,144,270
Stock Options Outstanding, Weighted-Average Exercise Price
Stock options outstanding, weighted average exercise price, beginning balance (in shares)	$ 6.71
Granted, weighted-average exercise price (in dollars per share)	27.11
Exercised, weighted-average exercise price (in dollars per share)	4.12
Forfeited, weighted-average exercise price (in dollars per share)	11.01
Stock options outstanding, weighted average exercise price, ending balance (in shares)	10.57	$ 6.71
Stock options vested and exercisable, weighted-average exercise price (in dollars per share)	$ 4.70
Stock options outstanding, weighted-average remaining contractual term	8 years	8 years 7 months 6 days
Stock options vested and exercisable, weighted-average remaining contractual term	6 years 10 months 24 days
Stock options outstanding, aggregate intrinsic value	$ 3,153.6	$ 972.0
Stock options vested and exercisable, aggregate intrinsic value	$ 1,440.5

Equity-Based Compensation - Summary of Unvested Stock Option Activity (Details) - $ / shares	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Unvested Options
Unvested options, beginning balance (in shares)	46,078,443
Granted (in shares)	12,086,466
Early exercised unvested (in shares)	(113,688)
Vested (in shares)	(16,335,310)
Forfeited (in shares)	(2,041,321)
Unvested options, ending balance (in shares)	39,674,590	46,078,443
Unvested Options, Weighted-Average Grant Date Fair Value
Unvested options, weighted-average grant date fair value, beginning balance (in dollars per share)	$ 4.89
Unvested options, weighted-average grant date fair value, granted (in dollars per share)	12.17	$ 6.71	$ 1.67
Unvested options, weighted-average grant date fair value, early exercised unvested (in dollars per share)	3.94
Unvested options, weighted-average grant date fair value, vested (in dollars per share)	4.10
Unvested options, weighted-average grant date fair value, forfeited (in dollars per share)	5.33
Unvested options, weighted-average grant date fair value, ending balance (in dollars per share)	$ 7.41	$ 4.89

Equity-Based Compensation - Summary of Fair Value Assumptions (Details)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average risk-free interest rate	1.10%	2.50%	2.40%
Weighted average expected term	6 years 2 months 12 days	6 years 3 months 18 days	6 years 3 months 18 days
Weighted average expected volatility	44.90%	45.00%	55.20%
Expected dividend yield	0.00%	0.00%	0.00%

Equity-Based Compensation - Summary of Restricted Stock and Restricted Stock Units (Details) - Restricted stock and restricted stock units	12 Months Ended
	Jun. 30, 2020 $ / shares shares
Number of Awards
Outstanding, beginning balance (in shares) \| shares	0
Granted (in shares) \| shares	706,825
Vested and converted to common stock (in shares) \| shares	(90,712)
Outstanding, ending balance (in shares) \| shares	616,113
Weighted-Average Grant Date Fair Value
Outstanding, weighted-average grant date fair value, beginning balance (in dollars per share) \| $ / shares	$ 0
Granted, weighted-average grant date fair value (in dollars per share) \| $ / shares	32.02
Vested and converted to common stock, weighted-average grant date fair value (in dollars per share) \| $ / shares	31.99
Outstanding, weighted-average grant date fair value, ending balance (in dollars per share) \| $ / shares	$ 32.02

Equity-Based Compensation - Summary of Sock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 88.8	$ 89.5	$ 8.5
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	10.7	3.5	0.5
Cost of revenue \| Connected Fitness Products
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3.2	0.3	0.0
Cost of revenue \| Subscription
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	7.5	3.2	0.5
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	15.3	8.4	0.7
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	52.4	70.5	6.5
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 10.4	$ 7.1	$ 0.8

Concentration of Credit Risk and Major Customers and Vendors (Details) - Vendor Concentration Risk - Finished Goods Benchmark	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Top Four Vendors
Concentration Risk [Line Items]
Percentage of total finished goods	61.00%	91.00%
Top Three Vendors
Concentration Risk [Line Items]
Percentage of total finished goods			91.00%

Income Taxes - Schedule of Loss Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
United States	$ (15.6)	$ (164.4)	$ (47.0)
Foreign	(52.8)	(31.2)	(0.8)
Loss before provision for income taxes	$ (68.4)	$ (195.6)	$ (47.8)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Current:
Federal	$ 0.0	$ 0.0	$ 0.0
State	1.2	0.1	0.1
Foreign	3.0	0.3	0.0
Current income tax expense	4.2	0.4	0.1
Deferred:
Federal	0.0	0.0	0.0
State	0.0	0.0	0.0
Foreign	(0.9)	(0.3)	0.0
Foreign	(0.9)	(0.3)	0.0
Total	$ 3.3	$ 0.1	$ 0.1

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	21.00%	28.10%
Permanent differences	(1.80%)	(4.20%)	(1.00%)
Share based compensation	34.20%	0.00%	0.00%
Return to provision	(3.80%)	(0.40%)	0.00%
Effects of rates different than statutory	0.00%	(0.30%)	0.00%
State and local income taxes, net of federal benefit	8.60%	3.00%	4.50%
Franchise tax	(1.20%)	0.00%	(0.10%)
Change in valuation allowance	(65.60%)	(21.00%)	3.70%
Rate change	(0.50%)	(0.40%)	(39.30%)
Federal credits	4.40%	2.30%	4.00%
Other	(0.10%)	0.00%	0.00%
Effective income tax rate	(4.80%)	0.00%	(0.10%)

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2020	Jun. 30, 2019
Operating Loss Carryforwards [Line Items]
Income tax expense related to Tax Cuts and Jobs Act	$ 18.0
Net operating loss carryforward		$ 63.9	$ 34.4
Net operating losses with limitations on use		169.0	72.3
Research and Development
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards		9.2
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards		191.1	112.6
Federal \| Tax Year 2036
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward		59.3
Federal \| Research and Development
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards			7.7
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards		99.6	95.8
Foreign
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards		$ 94.2	$ 26.7

Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Deferred tax assets:
Net operating loss	$ 63.9	$ 34.4
Accruals and reserves	13.7	10.0
R&D credit	9.2	7.7
Accrued legal and professional fees	5.3	4.8
Non-qualified stock options	20.8	8.8
Restricted stock options	2.5	0.0
Deferred rent	0.0	2.9
Property and equipment	0.0	0.2
Intangible amortization	0.0	0.9
Inventory capitalization	8.8	5.0
Lease liability	129.6	0.0
Deferred revenue	8.4	10.4
Tenant Improvement Allowance	0.0	2.9
Other	1.1	0.6
Total deferred tax assets	263.3	88.5
Valuation allowance	(128.5)	(86.9)
Deferred tax liabilities:
Prepaid Expenses	(3.1)	(1.4)
Property and equipment	(10.6)	0.0
Intangible amortization	(2.1)	0.0
Right-of-use assets	(116.4)	0.0
Other	(1.0)	0.0
Total deferred tax liabilities:	(133.2)	(1.4)
Deferred tax assets, net	$ 1.6	$ 0.3

Loss Per Share - Schedule of Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Basic loss per share:
Net loss	$ 89.1	$ (55.6)	$ (55.4)	$ (49.8)	$ (47.4)	$ (38.6)	$ (55.1)	$ (54.5)	$ (71.6)	$ (195.6)	$ (47.9)
Less: Premium on repurchase of convertible preferred stock									0.0	(50.1)	0.0
Net loss attributable to common stockholders									$ (71.6)	$ (245.7)	$ (47.9)
Net loss attributable to common stockholders
Weighted-average common shares outstanding (in shares)									220,952,237	22,911,764	21,934,228
Basic and diluted loss per share (in dollars per share)					$ (2.07)	$ (1.76)	$ (4.83)	$ (2.18)	$ (0.32)	$ (10.72)	$ (2.18)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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Loss Per Share - Schedule of Potentially Diluted Securities Not Included In Calculation of Diluted Shares Outstanding (Details) - shares	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	41,476,591	20,609,654	12,890,826
Restricted stock and restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	41,855	0	0
Shares estimated to be purchased under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	66,019	0	0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	0	234,527	224,903
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted shares outstanding (in shares)	0	210,640,629	176,313,468

Segment Information - Schedule of Key Performance Measures by Segment (Details) $ in Millions	3 Months Ended								9 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) segment	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2020 segment	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment	2								3
Segment Reporting Information [Line Items]
Revenue	$ 607.1	$ 524.6	$ 466.3	$ 228.0	$ 223.3	$ 316.7	$ 262.9	$ 112.1		$ 1,825.9	$ 915.0	$ 435.0
Cost of revenue										989.1	531.4	245.4
Gross profit	$ 288.8	$ 245.8	$ 197.1	$ 105.1	$ 100.1	$ 120.6	$ 111.3	$ 51.5		836.7	383.6	189.6
Connected Fitness Products
Segment Reporting Information [Line Items]
Revenue										1,462.2	733.9	354.7
Cost of revenue										833.5	427.8	199.9
Gross profit										628.8	306.2	154.9
Subscription
Segment Reporting Information [Line Items]
Revenue										363.7	181.1	80.3
Cost of revenue										155.7	103.7	45.5
Gross profit										$ 208.0	$ 77.4	$ 34.7

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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Segment Information - Reconciliation of Segment Gross Profit to Consolidated (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Gross Profit	$ 288.8	$ 245.8	$ 197.1	$ 105.1	$ 100.1	$ 120.6	$ 111.3	$ 51.5	$ 836.7	$ 383.6	$ 189.6
Sales and marketing									(477.0)	(324.0)	(151.4)
General and administrative									(351.6)	(207.0)	(62.4)
Research and development									(89.0)	(54.8)	(23.4)
Total other income (expense), net									12.4	6.7	(0.3)
Loss before provision for income taxes									$ (68.4)	$ (195.6)	$ (47.8)

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 607.1	$ 524.6	$ 466.3	$ 228.0	$ 223.3	$ 316.7	$ 262.9	$ 112.1	$ 1,825.9	$ 915.0	$ 435.0
Gross profit	288.8	245.8	197.1	105.1	100.1	120.6	111.3	51.5	836.7	383.6	189.6
Income (loss) from operations	90.0	(58.4)	(61.5)	(50.9)	(49.4)	(41.4)	(56.0)	(55.6)	(80.8)	(202.3)	(47.5)
Net income (loss)	$ 89.1	$ (55.6)	$ (55.4)	$ (49.8)	$ (47.4)	$ (38.6)	$ (55.1)	$ (54.5)	$ (71.6)	$ (195.6)	$ (47.9)
Net income (loss) per share attributable to common stockholders, basic (in dollars per share)	$ 0.31	$ (0.20)	$ (0.20)	$ (1.29)					$ (0.32)
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share)	$ 0.27	$ (0.20)	$ (0.20)	$ (1.29)					(0.32)
Net income (loss) per share attributable to common stockholders, basic and diluted (in dollars per share)					$ (2.07)	$ (1.76)	$ (4.83)	$ (2.18)	$ (0.32)	$ (10.72)	$ (2.18)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Subsequent Events (Details) $ in Millions	2 Months Ended
Subsequent Events (Details) $ in Millions	Sep. 10, 2020 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Value of shares authorized	$ 95.0