XML 32 R20.htm IDEA: XBRL DOCUMENT v3.25.1
EQUITY-BASED COMPENSATION
 6 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
EQUITY-BASED COMPENSATION EQUITY-BASED COMPENSATION
A summary of equity-based compensation expense for continuing operations recognized during the three and six months ended March 31, 2025 and 2024 is as follows:
Three Months Ended March 31,Six Months Ended March 31,
2025202420252024
Stock options$1,572 $4,078 $3,988 $8,314 
Restricted stock units2,360 944 3,758 2,066 
Equity-based compensation expense$3,932 $5,022 $7,746 $10,380 
In connection with the sale of the Merchant Services Business, $755 and $1,905 of the Company's equity-based compensation expense was classified within "net income from discontinued operations" in the accompanying condensed consolidated statements of operations during three and six months ended March 31, 2024.
Amounts are included in other costs of services and in selling, general and administrative expense on the condensed consolidated statements of operations. Current and deferred income tax expense for continuing operations of $1,378 and $767 was recognized during the three and six months ended March 31, 2025, respectively, and current and deferred income tax benefit of $816 and $1,713 during the three and six months ended March 31, 2024, 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 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 4.0%. As of March 31, 2025, equity awards with respect to 2,233,833 shares of the Company's Class A common stock were available for 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 March 31, 2025, equity awards with respect to 1,567,739 shares of the Company's Class A common stock were 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.
A summary of stock option activity for the six months ended March 31, 2025 is as follows:
Stock OptionsWeighted Average Exercise Price
Outstanding at September 30, 20249,120,944 $24.48 
Granted50,000 24.11 
Exercised(400,965)21.86 
Forfeited(78,343)26.89 
Outstanding at March 31, 20258,691,636 $24.58 
Exercisable at March 31, 20257,370,339 $25.11 
The weighted-average grant date fair value of stock options granted during the six months ended March 31, 2025 was $13.07.
As of March 31, 2025, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $12,072, which is expected to be recognized over a weighted-average period of 2.5 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 three and six months ended March 31, 2025 was $6,822 and $10,031, respectively.
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 for the six months ended March 31, 2025 is as follows:
Restricted Stock UnitsWeighted Average Grant Date Fair Value
Outstanding at September 30, 2024771,214 $22.71 
Granted691,849 26.28 
Vested(171,343)23.73 
Forfeited(36,022)23.07 
Outstanding at March 31, 20251,255,698 $24.45 
As of March 31, 2025, total unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures, was $21,428, which is expected to be recognized over a weighted average period of 3.0 years.
The total fair value of RSUs that vested during the three and six months ended March 31, 2025 was $3,658 and $4,066, respectively