Equity-Based Compensation (Tables)
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6 Months Ended |
Dec. 31, 2024 |
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| Share-Based Payment Arrangement [Abstract] |
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| Schedule 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, 2024 | 28,901,489 | | | $ | 20.14 | | | 4.7 | | $ | 3.4 | | | Granted | 255,145 | | | $ | 4.63 | | | | | | | Exercised | (1,171,580) | | | $ | 3.91 | | | | | $ | 4.8 | | | Forfeited or expired | (2,137,044) | | | $ | 16.14 | | | | | | Outstanding — December 31, 2024 | 25,848,010 | | | $ | 21.05 | | | 3.4 | | $ | 16.3 | | Vested and Exercisable — December 31, 2024 | 24,274,303 | | | $ | 21.68 | | | 3.2 | | $ | 16.2 | |
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 | (4,561,429) | | | $ | 17.25 | | | Forfeited or expired | (468,274) | | | $ | 19.96 | | Unvested — December 31, 2024 | 1,573,707 | | | $ | 14.09 | |
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| 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: | | | | | | | | | Six Months Ended December 31, | | 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.
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| 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 | 31,443,180 | | | $ | 4.88 | | | Vested and converted to shares | (12,328,244) | | | $ | 7.35 | | | Cancelled | (4,863,898) | | | $ | 6.53 | | Outstanding — December 31, 2024 | 70,062,501 | | | $ | 5.86 | |
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| 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: | | | | | | | | | | | | | Six Months Ended December 31, | | 2024 | | 2023 | Weighted average risk-free interest rate | 2.8 | % | | 2.0 | % | Weighted average expected term (in years) | 1.3 | | 1.3 | Weighted average expected volatility | 92.3 | % | | 92.7 | % | Expected dividend yield | — | | | — | |
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| Schedule of Stock-based Compensation Expense |
The Company's total stock-based compensation expense was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | Six Months Ended December 31, | | 2024 | | 2023 | | 2024 | | 2023 | | (in millions) | | Cost of revenue | | | | | | | | | Connected Fitness Products | $ | 2.5 | | | $ | 2.6 | | | $ | 4.7 | | | $ | 4.9 | | | Subscription | 10.3 | | | 10.0 | | | 19.0 | | | 19.7 | | | Total cost of revenue | 12.8 | | | 12.6 | | | 23.8 | | | 24.6 | | | Sales and marketing | 4.8 | | | 6.0 | | | 8.5 | | | 10.7 | | | General and administrative | 31.3 | | | 32.2 | | | 52.4 | | | 67.6 | | | Research and development | 12.6 | | | 15.8 | | | 24.0 | | | 30.7 | | | Restructuring expense | — | | | — | | | — | | | 7.2 | | | Total stock-based compensation expense | $ | 61.5 | | | $ | 66.6 | | | $ | 108.7 | | | $ | 140.8 | |
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