PELOTON INTERACTIVE, INC.PTON

PELOTON INTERACTIVE, INC. Segments Disclosure

10-KFiled Aug 7, 20252 min read
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 maker ("CODM"), the Chief Executive Officer and President, reviews the operating results in assessing performance and allocating resources. The CODM reviews consolidated revenue and gross profit for both of the reportable segments, primarily by monitoring actual results compared to forecasted results as well as by reviewing year-over-year results and trending historical performance. Gross profit, which is the Company’s measure of segment
profit or loss, is defined as Revenue less Cost of revenue incurred by the segment. No other significant expense categories or performance metrics are regularly provided to the CODM on a disaggregated basis.

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 primarily 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, Peloton Bike portfolio rental products, extended warranty agreements, branded apparel, and commercial service contracts. The Subscription segment primarily 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:
Fiscal Year Ended June 30,
202520242023
(in millions)
Connected Fitness Products:
Revenue
$817.1 $991.7 $1,130.2 
Cost of revenue
705.9 943.0 1,328.8 
   Gross profit
$111.2 $48.8 $(198.6)
Subscription:
Revenue
$1,673.7 $1,708.7 $1,670.1 
Cost of revenue
516.6 551.0 547.9 
   Gross profit
$1,157.1 $1,157.7 $1,122.1 
Consolidated:
Revenue
$2,490.8 $2,700.5 $2,800.2 
Cost of revenue
1,222.5 1,494.0 1,876.7 
   Gross profit
$1,268.3 $1,206.5 $923.5 
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 income taxes is as follows:
Fiscal Year Ended June 30,
202520242023
(in millions)
Segment Gross Profit
$1,268.3 $1,206.5 $923.5 
Sales and marketing(421.6)(658.9)(648.2)
General and administrative(527.3)(651.0)(798.1)
Research and development(234.2)(304.8)(318.4)
Impairment expense(64.1)(57.3)(144.5)
Restructuring expense(33.8)(66.1)(189.4)
Supplier settlements(23.5)2.6 (22.0)
Total other expense, net(79.3)(23.2)(60.9)
Loss before income taxes
$(115.6)$(552.1)$(1,258.0)

Historical Timeline

Fiscal YearFiled
2025Aug 7, 2025Showing above
2024Aug 22, 2024
2023Aug 23, 2023
2022Sep 7, 2022
2021Aug 27, 2021
2020Sep 11, 2020

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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