PELOTON INTERACTIVE, INC.PTON
PELOTON INTERACTIVE, INC. Leases Disclosure
Leases
Lessee arrangements
The Company has entered into various non-cancellable operating lease agreements for its corporate headquarter offices, warehouses and distribution facilities, production studio facilities, retail locations, and other office spaces. The Company subleases certain corporate offices, warehouses and distribution facilities, and retail locations to third parties.
Total operating lease expense, net, for the fiscal years ended June 30, 2025, 2024, and 2023 was as follows:
| Total Operating Lease Expense, Net | Fiscal Year Ended June 30, | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Operating lease expense | $ | 81.5 | $ | 98.5 | $ | 113.4 | |||||||||||
| Variable lease expense | 24.7 | 23.8 | 24.3 | ||||||||||||||
| Short-term lease expense | 0.1 | 0.3 | 0.2 | ||||||||||||||
| Total operating lease expense | $ | 106.3 | $ | 122.6 | $ | 138.0 | |||||||||||
| Sublease income | (18.4) | (17.8) | (14.9) | ||||||||||||||
| Variable sublease income | (5.0) | (4.0) | (2.7) | ||||||||||||||
| Total operating lease expense, net | $ | 82.9 | $ | 100.8 | $ | 120.4 | |||||||||||
As of June 30, 2025, the total remaining lease payments included in the measurement of operating lease liabilities were as follows:
| Future Minimum Payments | |||||
| Fiscal Year Ended June 30, | (in millions) | ||||
2026 | $ | 93.0 | |||
| 2027 | 81.7 | ||||
| 2028 | 66.7 | ||||
| 2029 | 58.3 | ||||
| 2030 | 47.3 | ||||
| Thereafter | 268.6 | ||||
| Total | $ | 615.7 | |||
As of June 30, 2025, future minimum lease payments to be received from operating subleases were as follows:
| Fiscal Year Ended June 30, | Future Minimum Payments | ||||
| (in millions) | |||||
| 2026 | $ | 20.4 | |||
| 2027 | 19.7 | ||||
| 2028 | 12.9 | ||||
| 2029 | 7.5 | ||||
| 2030 | 4.0 | ||||
| Thereafter | 21.2 | ||||
| Total | $ | 85.8 | |||
Supplemental information related to operating leases was as follows:
| Reconciliation of Operating Lease Liabilities | As of June 30, | ||||||||||
| 2025 | 2024 | ||||||||||
| (dollars in millions) | |||||||||||
| Weighted-average remaining lease term (years) | 8.8 | 9.0 | |||||||||
| Weighted-average discount rate | 5.57 | % | 5.38 | % | |||||||
| Total Undiscounted Operating Lease Liability | $ | 615.7 | $ | 748.5 | |||||||
| Less: Imputed interest | (138.0) | (169.9) | |||||||||
| Total Discounted Operating Lease Liability | $ | 477.6 | $ | 578.6 | |||||||
| Current portion of operating lease liabilities | $ | 70.1 | $ | 75.3 | |||||||
| Non-current portion of operating lease liabilities | $ | 407.5 | $ | 503.3 | |||||||
Supplemental cash flow and other information related to leases was as follows:
| Fiscal Year Ended June 30, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||
| Operating cash flows from operating leases | $ | 111.5 | $ | 121.7 | $ | 133.3 | |||||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) | $ | 3.0 | $ | 24.9 | $ | 7.0 | |||||||||||
| Right-of-use asset reductions related to operating lease modifications and terminations (non-cash) | $ | (14.4) | $ | (23.0) | $ | (50.2) | |||||||||||
As discussed in Note 7, Property and Equipment, management identified various qualitative factors that collectively indicated that the Company had triggering events for its long-lived assets, including the Company’s operating lease right-of-use assets. The Company recognized impairment charges for the fiscal year ended June 30, 2025, primarily consisting of $15.0 million related to certain corporate office right-of-use assets, $13.5 million related to retail showroom right-of-use assets, and $4.2 million related to other manufacturing right-of-use assets.
For the fiscal year ended June 30, 2024, the Company recognized impairment charges of $16.6 million related to retail showroom right-of-use assets and $7.5 million related to Connected Fitness right-of-use assets. For the fiscal year ended June 30, 2023, the Company recognized impairment charges of $6.4 million related to certain corporate office right-of-use assets, $5.3 million related to Connected Fitness right-of-use assets, $3.0 million related to retail showroom right-of-use assets, and $1.2 million related to other manufacturing right-of-use assets.
As of June 30, 2025, 91% and 7% of the Company's total Operating lease right-of-use assets, net was attributable to the United States and the United Kingdom, respectively. As of June 30, 2024, 91% and 6% of the Company's total Operating lease right-of-use assets, net was attributable to the United States and the United Kingdom, respectively.
Lessor arrangements
As discussed in Note 2, Summary of Significant Accounting Policies, the Company leases Peloton Bike portfolio products under the Peloton Rental program. For the fiscal years ended June 30, 2025, 2024, and 2023, the Company recognized lease revenue on the Peloton Rental program of $45.8 million, $47.3 million and $19.1 million, respectively, within Connected Fitness Products Revenue in the Company’s Consolidated Statements of Operations and Comprehensive Loss.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 7, 2025 | Showing above |
| 2024 | Aug 22, 2024 | |
| 2023 | Aug 23, 2023 | |
| 2022 | Sep 7, 2022 | |
| 2021 | Aug 27, 2021 | |
| 2020 | Sep 11, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.