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Equity-Based Compensation | 12 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Equity-Based Compensation | EQUITY-BASED COMPENSATION A summary of equity-based compensation expense recognized during the years ended September 30, 2023, 2022 and 2021 is as follows:
| Year ended September 30,
| 2023 |  | 2022 |  | 2021
Stock options | $ | 24,276 |  |  | $ | 25,163 |  |  | $ | 20,860 |
Restricted stock units | 3,602 |  |  | 1,067 |  |  | — |
Equity-based compensation expense | $ | 27,878 |  |  | $ | 26,230 |  |  | $ | 20,860 |
Amounts are included in general and administrative expense on the consolidated statements of operations. Income tax benefits of $785, $468 and $1,083 were recognized related to equity-based compensation during the years ended September 30, 2023, 2022, and 2021, respectively. Stock Options In May 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”) under which the Company may grant up to 3,500,000 stock options and other equity-based awards to employees, directors and officers. The number of shares of Class A common stock available for issuance under the 2018 Plan includes an annual increase on the first day of each year, beginning with the 2019 calendar year, equal to 4.0% of the outstanding shares of all classes of the Company's common stock as of the last day of the immediately preceding calendar year, unless the Company’s board of directors determines prior to the last trading day of December of the immediately preceding calendar year that the increase shall be less than 4%. As of September 30, 2023, there were 1,075,549 shares of equity awards available to grant under the 2018 Plan. In September 2020, the Company adopted the 2020 Acquisition Equity Incentive Plan (the “2020 Inducement Plan”) under which the Company may grant up to 1,500,000 stock options and other equity-based awards to individuals that were not previously employees of the Company or its subsidiaries in connection with acquisitions, as a material inducement to the individual's entry into employment with the Company or its subsidiaries within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. In May 2021, the Company amended the 2020 Inducement Plan to increase the number of shares of the Company's Class A common stock available for issuance from 1,500,000 to 3,000,000 shares. As of September 30, 2023, there were 1,154,571 shares of equity awards available for grant under the 2020 Inducement Plan. Share-based compensation expense includes the estimated effects of forfeitures, which will be adjusted over the requisite service period to the extent actual forfeitures differ or are expected to differ from such estimates. The Company has issued stock option awards under the 2018 Plan and the 2020 Inducement Plan. The fair value of the stock option awards during the years ended September 30, 2023 and 2022 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:
| September 30, 2023 |  | September 30, 2022
Expected volatility(1) | 54.9 | % |  | 55.7 | %
Expected dividend yield(2) | — | % |  | — | %
Expected term(3) | 6 years |  | 6 years
Risk-free interest rate(4) | 3.9 | % |  | 1.6 | %
_________________ 1.For the year ended September 30, 2023, expected volatility is based on the volatility of the Company's own share price. For the year ended September 30, 2022, expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term. 2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future. 3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method as details of employee exercise behavior are limited due to limited historical data. 4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term. A summary of stock option activity for the year ended September 30, 2023 is as follows:
| Stock Options |  | Weighted Average Exercise Price
Outstanding at September 30, 2022 | 8,222,322 |  |  | $ | 25.07 |
Granted | 1,286,629 |  |  | 24.13 |
Exercised | (460,760) |  |  | 18.14 |
Forfeited | (471,521) |  |  | 27.69 |
Outstanding at September 30, 2023 | 8,576,670 |  |  | $ | 25.16 |
Exercisable at September 30, 2023 | 5,586,736 |  |  | $ | 24.79 |
The weighted-average grant date fair value of stock options granted during the year ended September 30, 2023 was $13.68. As of September 30, 2023, there were 8,576,670 stock options outstanding, of which 5,586,736 were exercisable. As of September 30, 2023, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $23,395, which is expected to be recognized over a weighted-average period of 2.1 years. The Company's policy is to account for forfeitures of stock-based compensation awards as they occur. The total fair value of stock options that vested during the year ended September 30, 2023 was $24,652. Restricted Stock Units The Company has issued Class A common stock in the form of restricted stock units ("RSUs") under the 2018 Plan. A summary of activity related to restricted stock units as of September 30, 2023 is as follows:
| Restricted Stock Units |  | Weighted Average Exercise Price
Outstanding at September 30, 2022 | 486,652 |  |  | $ | 24.93 |
Granted | 536,882 |  |  | 25.28 |
Vested | (67,854) |  |  | 26.34 |
Forfeited | (81,656) |  |  | 24.09 |
Outstanding at September 30, 2023 | 874,024 |  |  | $ | 24.95 |
The weighted-average grant date fair value of RSUs granted during the year ended September 30, 2023 was $25.28. As of September 30, 2023, total unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures, was $12,126, which is expected to be recognized over a weighted average period of 3.1 years.

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