v3.24.3
Segment Information
 3 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company applies ASC 280, Segment Reporting, in determining reportable segments. The Company has two reportable segments: Connected Fitness Products and Subscription. Segment information is presented in the same manner that the chief operating decision makers ("CODM"), the Interim Co-Chief Executive Officers, review the operating results in assessing performance and allocating resources. The CODM reviews revenue and gross profit for both of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment.

No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis and, accordingly, the Company does not report asset information by segment.

The Connected Fitness Products segment derives revenue from sale of the Company's portfolio of Connected Fitness Products and related accessories, as well as Precor branded fitness products, delivery and installation services, Bike rental products, extended warranty agreements, branded apparel, and commercial service contracts. The Subscription segment derives revenue from monthly Subscription fees. There are no internal revenue transactions between the Company’s segments.
Key financial performance measures of the segments including Revenue, Cost of revenue, and Gross profit are as follows:
Three Months Ended September 30,
20242023
(in millions)
Connected Fitness Products:
Revenue
$159.6 $180.6 
Cost of revenue
145.0 174.9 
   Gross profit
$14.6 $5.7 
Subscription:
Revenue
$426.3 $415.0 
Cost of revenue
137.2 135.2 
   Gross profit
$289.1 $279.7 
Consolidated:
Revenue
$586.0 $595.5 
Cost of revenue
282.2 310.1 
   Gross profit
$303.8 $285.4 
Reconciliation of Gross Profit
Operating expenditures, interest income and other expense, and taxes are not allocated to individual segments as these are managed on an entity wide group basis. The reconciliation between reportable Segment Gross Profit to consolidated loss before provision for income tax is as follows:
Three Months Ended September 30,
20242023
(in millions)
Segment Gross Profit
$303.8 $285.4 
Sales and marketing(81.9)(146.0)
General and administrative(119.5)(151.1)
Research and development(58.5)(78.7)
Impairment expense(4.9)(24.0)
Restructuring expense(2.9)(17.8)
Supplier settlements(23.5)— 
Total other expense, net
(12.6)(26.2)
Loss before provision for income taxes
$— $(158.5)