The Company has entered into various non-cancellable operating lease agreements for its corporate headquarters 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	Fiscal Year Ended June 30,
	2026		2025		2024
	(in millions)
Operating lease expense	$	73.4	$	81.5	$	98.5
Variable lease expense	20.7		24.7		23.8
Short-term lease expense	1.5		0.1		0.3
Total operating lease expense	$	95.7	$	106.3	$	122.6
Sublease income	(23.6)		(18.4)		(17.8)
Variable sublease income	(5.0)		(5.0)		(4.0)
Total operating lease expense, net	$	67.0	$	82.9	$	100.8

As of June 30, 2026, 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)
2027	$	83.0
2028	68.6
2029	60.2
2030	46.6
2031	46.9
Thereafter	219.3
Total	$	524.6


Fiscal Year Ended June 30,	Future Minimum Payments
	(in millions)
2027	$	22.2
2028	19.2
2029	14.0
2030	7.8
2031	7.8
Thereafter	33.7
Total	$	104.5

Supplemental information related to operating leases was as follows:


Reconciliation of Operating Lease Liabilities	As of June 30,
	2026			2025
	(dollars in millions)
Weighted-average remaining lease term (years)	8.4			8.8
Weighted-average discount rate	5.69		%	5.57		%
Total Undiscounted Operating Lease Liability	$	524.6		$	615.7
Less: Imputed interest	(114.4)			(138.0)
Total Discounted Operating Lease Liability	$	410.2		$	477.6
Current portion of operating lease liabilities	$	62.5		$	70.1
Non-current portion of operating lease liabilities	$	347.7		$	407.5


	Fiscal Year Ended June 30,
	2026		2025		2024
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	101.0	$	111.5	$	121.7
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	17.5	$	3.0	$	24.9
Right-of-use asset reductions related to operating lease modifications and terminations (non-cash)	$	(5.7)	$	(14.4)	$	(23.0)

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, 2026, primarily consisting of $10.6 million related to certain corporate office right-of-use assets, and $5.9 million related to retail showroom right-of-use assets.

For the fiscal year ended June 30, 2025, the Company recognized impairment charges 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.

As of June 30, 2026 and 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 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, 2026, 2025, and 2024, the Company recognized lease revenue on the Peloton Rental program of $29.6 million, $45.8 million and $47.3 million, respectively, within Connected Fitness Products Revenue in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).