Equity-Based Compensation

12 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

2019 Equity Incentive Plan

In August 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (the “2019 Plan”), which serves as the successor the 2015 Stock Plan. The 2019 Plan provides for the grant of equity-based awards to employees, directors and consultants, including stock options, restricted stock units, and performance stock units.

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, 2025	20,958,757	$	21.51	3.8	$	6.8
Granted	—	$	—
Exercised	(81,817)	$	1.30		$	0.4
Forfeited or expired	(2,162,245)	$	11.16
Outstanding — June 30, 2026	18,714,695	$	22.79	2.6	$	4.3
Vested and Exercisable— June 30, 2026	18,102,794	$	23.28	2.4	$	4.3

Unvested option activity is as follows:


	Options	Weighted-Average Grant Date Fair Value
Unvested - June 30, 2025	1,735,457	$	9.39
Granted	—	$	—
Vested	(1,005,585)	$	11.27
Forfeited or expired	(117,971)	$	8.81
Unvested - June 30, 2026	611,901	$	6.39

The aggregate intrinsic value of options outstanding and vested and exercisable, were calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of June 30, 2026. The fair value of the common stock is the closing stock price of Class A common stock as reported on The Nasdaq Global Select Market. The aggregate intrinsic value of exercised options was $0.4 million, $9.2 million, and $12.7 million for the fiscal years ended June 30, 2026, 2025, and 2024, respectively.

No stock options were granted during the fiscal year ended June 30, 2026. For the fiscal years ended June 30, 2025 and 2024, the weighted-average grant date fair value per option was $5.53, and $2.46, 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,
	2025		2024
Weighted average risk-free interest rate (1)	4.3	%	4.5	%
Weighted average expected term (in years) (1)	5.5		3.6
Weighted average expected volatility (1)	87.0	%	87.5	%
Expected dividend yield (1)	—		—

____________________________

(1) Refer to 2019 Equity Incentive Plan within Note 2, Summary of Significant Accounting Policies for further details regarding how these assumptions are calculated.

Restricted Stock Units

The following table summarizes the activity related to the Company's restricted stock units:


	Restricted Stock Units Outstanding
	Number of Awards	Weighted-Average Grant Date Fair Value
Outstanding — June 30, 2025 (1)	54,154,272	$	5.92
Granted	23,136,469	$	6.44
Vested and converted to shares	(29,512,773)	$	6.10
Cancelled	(11,033,217)	$	6.07
Outstanding — June 30, 2026	36,744,751	$	6.06

____________________________

(1) During the fiscal year ended June 30, 2026, the Company updated its equity-based compensation disclosures to separately present the activity of RSUs and PSUs. Outstanding awards as of June 30, 2025, and weighted-average grant-date fair values for the prior year have been reclassified to conform to the current-year presentation. This change in presentation had no impact on previously reported consolidated net loss, total cash flows, or financial position.

For the fiscal years ended June 30, 2026, 2025, and 2024, the weighted-average grant date fair value per restricted stock unit was $6.44, $5.18, and $5.46, respectively.

Performance Stock Units

The following table summarizes the activity related to the Company's performance stock units, inclusive of awards with performance conditions and market conditions:


	Performance Stock Units Outstanding
	Number of Awards	Weighted-Average Grant Date Fair Value
Outstanding — June 30, 2025 (1)	1,147,446	$	5.76
Granted	5,242,805	$	7.30
Performance adjustment	1,719,709	$	6.79
Vested and converted to shares	(1,999,524)	$	5.77
Cancelled	(321,267)	$	7.58
Outstanding — June 30, 2026	5,789,169	$	7.36

____________________________

For the fiscal years ended June 30, 2026 and 2025, the weighted-average grant date fair value per performance stock unit was $7.30 and $5.76, respectively. There were no PSU awards granted prior to fiscal year 2025.

Stock-Based Compensation Expense

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


	Fiscal Year Ended June 30,
	2026		2025		2024
	(in millions)
Cost of revenue
Connected Fitness Products	$	8.9	$	9.3	$	10.1
Subscription	40.8		36.3		39.3
Total cost of revenue	49.6		45.7		49.5
Sales and marketing	25.1		16.4		19.7
General and administrative	77.5		121.9		177.1
Research and development	45.6		44.8		58.8
Restructuring expense	0.8		0.8		6.6
Total stock-based compensation expense	$	198.6	$	229.6	$	311.7

As of June 30, 2026, the Company had $222.9 million of unrecognized stock-based compensation expense related to unvested stock-based awards that is expected to be recognized over a weighted-average period of 2.1 years.

During the fiscal year ended June 30, 2026, three employees who were eligible to participate in the Company’s Severance and Change in Control Plan (the “Severance Plan”) terminated employment. Certain modifications were made to their equity awards, including the extension of the post-termination period during which the employees could exercise their outstanding stock options from 90 days to one year (or the option expiration date, if earlier). In one instance during the fiscal year ended June 30, 2026, the employee transitioned to a non-executive advisory role. As a result of these modifications, the Company recognized incremental stock-based compensation expense of $1.2 million within General and administrative expense in the Consolidated Statements of Operations and Comprehensive Income (Loss).

During the fiscal year ended June 30, 2025, five employees who were eligible to participate in the Company’s Severance Plan terminated employment. Certain modifications were made to their equity awards, including the extension of the post-termination period during which the employees could exercise their outstanding stock options from 90 days to one year (or the option expiration date, if earlier). In two instances during the fiscal year ended June 30, 2025, the employees transitioned to non-executive advisory roles. As a result of these modifications, the Company recognized incremental stock-based compensation expense of $4.2 million within General and administrative expense in the Consolidated Statements of Operations and Comprehensive Income (Loss).

During the fiscal year ended June 30, 2024, certain modifications were made to equity awards for four employees, who were eligible to participate in the Severance Plan, excluding the impact separately disclosed below, of the Company’s former President and Chief Executive Officer (“CEO”) who was also covered under the Severance Plan. For the fiscal year ended June 30, 2024, this included the extension of the post-termination period during which an employee may exercise outstanding stock options from 90 days to one year (or the option expiration date, if earlier). In one instance during the fiscal year ended June 30, 2024, the post-termination period during which an employee may exercise outstanding stock options was extended from 90 days to the earlier of the original expiration date or 3 years. This employee transitioned to a non-executive advisory role. As a result of these modifications, the Company recognized incremental stock-based compensation expense of $5.6 million for the fiscal year ended June 30, 2024 within Restructuring expense in the Consolidated Statements of Operations and Comprehensive Income (Loss).

On February 7, 2022, the Board of Directors granted the Company’s former President and CEO, 8,000,000 shares of the Class A common stock (the "Option Award"). The Option Award had an exercise price of $38.77 per share, equal to the closing price of the Class A common stock on the CEO Commencement Date of February 9, 2022. The awards were to vest and become exercisable over four years, with 1/48th vesting on each monthly anniversary of the CEO Commencement Date, subject to the provision of the CEO’s continued service to the Company through each vesting date. The awards were to be exercisable through February 8, 2032. On May 2, 2024, Mr. McCarthy transitioned to a non-executive, strategic advisory role and was granted a new option award (the "Advisory Award") that vested in equal monthly installments through December 31, 2024. Mr. McCarthy also received one year of accelerated vesting on all outstanding stock options (other than the Advisory Award), which will remain exercisable until December 31, 2027. During the fiscal year ended June 30, 2024, in connection with the CEO transition, the Company recognized stock-based compensation expense of $41.9 million for the one year of accelerated vesting of the Option Award, which had an exercise price of $38.77 per share and a grant date fair value of approximately $167.6 million. In addition, the Company recognized incremental stock-based compensation expense of $5.4 million for the modification of stock option awards related to the extension of the exercise window through December 31, 2027. These expenses were recognized within General and administrative expense in the Consolidated Statements of Operations and Comprehensive Income (Loss).