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Stock-Based Compensation and Equity Grants (Tables)
 6 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-based Compensation Expense
Stock-based compensation expense shown in the table below, is recorded in general and administrative expenses in our consolidated statements of operations as follows (in thousands):

Three Months EndedSix Months Ended
March 31,March 31,
2025202420252024
DLH employees (a)$403 $774 $416 $1,314 
Non-employee directors (b)130 180 309 259 
Total stock option expense$533 $954 $725 $1,573 

(a) Included in this amount are equity grants of restricted stock units ("RSU") to Executive Officers, which were issued in accordance with the DLH long-term incentive compensation policy in this fiscal year, and stock option grants to employees during prior fiscal years. The RSUs issued and outstanding totaled 697,384 and 429,320 shares at March 31, 2025 and 2024, respectively.
Unrecognized stock-based compensation expense is presented in the table below (in thousands):
March 31,
 20252024
Unrecognized expense for DLH employees (a)$4,567 $7,026 
Unrecognized expense for non-employee directors309 359 
Total unrecognized expense$4,876 $7,385 

(a) On a weighted average basis, the unrecognized expense as of March 31, 2025 is expected to be recognized within the next 2.42 years.
Summary of Performance Vesting Critera
Volatility
50%
Grant Date
Vesting Base
 Vesting Criteria
(Years)Fair Value
December 20, 2024RevenueRevenue increase at the end of the measurement period as compared to the year ended September 30, 20273$0.65 
December 20, 2024Stock price
Stock price is at least $23.04 per share average for the 30 days prior to the end of the performance period
3$1.67 
December 15, 2023RevenueRevenue increase at the end of the measurement period as compared to the year ended September 30, 20233$3.82 
December 15, 2023Stock price
Stock price is at least $25.65 per share average for the 30 days prior to the end of the performance period
3$5.36 
Notes:
Results based on 100,000 simulations

(b) Equity grants of RSUs were made in accordance with DLH compensation policy for non-employee directors and a total of 67,615 and 61,525 restricted stock units were issued and outstanding at March 31, 2025 and 2024, respectively. These grants have service-based vesting criteria and vest at the end of this fiscal year.
Schedule of Stock Option Activity A summary of the Company's stock option awards is as follows:
(in years)
Weighted
WeightedAverage(in thousands)
(in thousands)AverageRemainingAggregate
Number ofExerciseContractualIntrinsic
SharesPriceTermValue
Options outstanding, September 30, 2024
1,237 $9.28 6.1$1,313 
Granted— — — — 
Exercised
— — — — 
Cancelled(100)13.43 — — 
Options outstanding, March 31, 2025
1,137 $9.25 5.50$— 
Vested and exercisable, March 31, 2025
1,077 $8.99 5.37$— 
Schedule of Option Shares Outstanding, Vested and Expected to Vest
Stock option shares outstanding, vested and unvested balance as follows (in thousands):
March 31,September 30,
20252024
Vested and exercisable1,077 1,177 
Unvested (a)60 60 
Options outstanding1,137 1,237 
(a) Certain awards vest upon satisfaction of certain performance criteria.