Restructuring

9 Months Ended

Mar. 31, 2026

Restructuring and Related Activities [Abstract]

4. Restructuring

The Company’s current restructuring efforts began with the implementation of a restructuring plan approved by the Company’s Board of Directors (“Board of Directors”) and announced in 2022, which was subsequently expanded upon and replaced by a new plan approved by the Board of Directors and announced in 2024 (collectively, the “2024 Restructuring Plan”).

In August 2025, the Company announced a subsequent restructuring plan (the “2025 Restructuring Plan” and, together with the 2024 Restructuring Plan, the “Restructuring Plans”), which includes a reduction in global headcount and is intended to continue to improve the Company’s cost structure, operating efficiency, and profitability, while providing the opportunity to return to growth by reinvesting savings into Peloton’s differentiating capabilities. The 2024 Restructuring Plan has been substantially completed and any remaining charges or actions under that plan have been incorporated into the 2025 Restructuring Plan. The Company expects the Restructuring Plans to be substantially implemented by the end of fiscal year 2026, which is subject to change.

In connection with the 2025 Restructuring Plan, the Company estimates that it will incur additional cash restructuring charges of approximately $15.0 million, primarily comprising location strategy costs, lease termination costs, and other exit costs. Additionally, the Company expects to recognize additional non-cash restructuring charges of approximately $5.0 million, primarily comprising asset write-downs and write-offs in connection with the continued exit of the Company’s retail and other leased locations. The Company expects these charges to be substantially incurred by the end of fiscal year 2026, which is subject to change.

Due to the actions taken pursuant to the Restructuring Plans, the Company tested certain long-lived assets (asset groups) for recoverability by comparing the carrying values of the asset group to estimates of their future undiscounted cash flows, which were generally the liquidation value, or for operating lease right-of-use assets, income from a sublease arrangement. Based on the results of the recoverability tests, the Company determined that during the three and nine months ended March 31, 2026 and 2025, the undiscounted cash flows of certain assets (asset groups) were below their carrying values, indicating impairment. The assets were written down to their estimated fair values, which were determined based on their estimated liquidation or sales value, or for operating lease right-of-use assets, discounted cash flows of a sublease arrangement.

As a result of the Restructuring Plans, the Company incurred the charges shown in the following table. Asset write-downs and write-offs are included within Impairment expense, and the remaining charges incurred during the relevant periods are included within Restructuring expense, in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2026		2025		2026		2025
Cash restructuring charges:(1)	(in millions)
Severance and other personnel costs	$	1.5	$	0.2	$	0.3	$	0.3
Exit and disposal costs and professional fees	2.5		2.2		10.1		8.3
Total cash restructuring charges	4.1		2.4		10.4		8.6

Non-cash restructuring charges:(1)
Asset write-downs and write-offs	$	3.7	$	1.7	$	11.6	$	22.4
Stock-based compensation expense	—		—		0.8		—


Total non-cash restructuring charges	3.7		1.7		12.4		22.4

Total	$	7.8	$	4.1	$	22.8	$	31.0

_________________________

(1) All cash and non-cash restructuring charges for the three and nine months ended March 31, 2026 related to the 2025 Restructuring Plan. All cash and non-cash restructuring charges for the three and nine months ended March 31, 2025 related to the 2024 Restructuring Plan.

The following table presents a roll-forward of cash restructuring-related liabilities, which are included within Accounts payable and accrued expenses in the Condensed Consolidated Balance Sheets:


	Severance and other personnel costs		Exit and disposal costs and professional fees		Total
	(in millions)
Balance as of December 31, 2024	$	1.0	$	2.6	$	3.6
Cash restructuring charges(1)	0.2		2.2		2.4
Cash payments	(0.4)		(3.1)		(3.5)
Balance as of March 31, 2025	$	0.8	$	1.7	$	2.5

Balance as of December 31, 2025	$	14.1	$	1.0	$	15.2
Cash restructuring charges(1)	1.5		2.5		4.1
Cash payments	(8.6)		(1.1)		(9.7)
Balance as of March 31, 2026	$	7.0	$	2.5	$	9.5

_________________________

(1) All cash restructuring charges for the three months ended March 31, 2026 related to the 2025 Restructuring Plan. All cash restructuring charges for the three months ended March 31, 2025 related to the 2024 Restructuring Plan.


	Severance and other personnel costs		Exit and disposal costs and professional fees		Total
	(in millions)
Balance as of June 30, 2024	$	12.7	$	4.3	$	17.0
Cash restructuring charges(1)	0.3		8.3		8.6
Cash payments	(12.2)		(10.9)		(23.1)
Balance as of March 31, 2025	$	0.8	$	1.7	$	2.5

Balance as of June 30, 2025	$	23.8	$	0.8	$	24.6
Cash restructuring charges(1)	0.3		10.1		10.4
Cash payments	(17.0)		(8.4)		(25.4)
Balance as of March 31, 2026	$	7.0	$	2.5	$	9.5

_________________________

(1) All cash restructuring charges for the nine months ended March 31, 2026 related to the 2025 Restructuring Plan. All cash restructuring charges for the nine months ended March 31, 2025 related to the 2024 Restructuring Plan.