Equity-Based Compensation (Tables)

3 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

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, 2024	28,901,489	$	20.14	4.7	$	3.4
Granted	255,145	$	4.63
Exercised	(298,996)	$	3.00		$	0.6
Forfeited or expired	(1,454,932)	$	11.95
Outstanding — September 30, 2024	27,402,706	$	20.62	4.8	$	6.7
Vested and Exercisable — September 30, 2024	22,226,512	$	19.40	4.3	$	6.5

Unvested option activity is as follows:


	Options	Weighted-Average Grant Date Fair Value
Unvested — June 30, 2024	6,348,265	$	17.24
Granted	255,145	$	2.86
Vested	(1,327,270)	$	14.40
Forfeited or expired	(99,946)	$	17.21
Unvested — September 30, 2024	5,176,194	$	17.26

Schedule of Fair Value Assumptions

The fair value of each option was estimated at the grant date using the Black-Scholes method with the following assumptions:


	Three Months Ended September 30,
	2024
Weighted average risk-free interest rate (1)	3.7	%
Weighted average expected term (in years)	3.3
Weighted average expected volatility (2)	90.6	%
Expected dividend yield	—

____________________________

(1) Based on U.S. Treasury yield curve in effect at the time of grant.

(2) Expected volatility is based on the historical volatility of the price of Class A common stock.

Schedule of Restricted Stock and Restricted Stock Units

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


	Restricted Stock Units Outstanding
	Number of Awards	Weighted-Average Grant Date Fair Value
Outstanding — June 30, 2024	55,811,463	$	6.80
Granted	25,936,757	$	4.47
Vested and converted to shares	(4,214,886)	$	9.03
Cancelled	(2,885,825)	$	6.71
Outstanding — September 30, 2024	74,647,509	$	5.87

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The Black-Scholes option pricing model assumptions used to calculate the fair value of shares estimated to be purchased at the commencement of the ESPP offering periods were as follows:


	Three Months Ended September 30,
	2024		2023
Weighted average risk-free interest rate	2.7	%	1.6	%
Weighted average expected term (in years)	1.3		1.3
Weighted average expected volatility	92.4	%	92.4	%
Expected dividend yield	—		—

Schedule of Stock-based Compensation Expense

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


	Three Months Ended September 30,
	2024		2023
	(in millions)
Cost of revenue
Connected Fitness Products	$	2.3	$	2.3
Subscription	8.7		9.7
Total cost of revenue	11.0		12.0
Sales and marketing	3.7		4.7
General and administrative	21.1		35.4
Research and development	11.4		14.9
Restructuring expense	—		7.2
Total stock-based compensation expense	$	47.2	$	74.2