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Stock-Based Compensation and Equity Grants (Tables) | 9 Months Ended
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Jun. 30, 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 Ended |  | Nine Months Ended |
|  | June 30, |  | June 30, |
|  | 2025 |  | 2024 |  | 2025 |  | 2024 |
DLH employees (a) |  | $ | 405 |  |  | $ | 537 |  |  | $ | 821 |  |  | $ | 1,851 |  |
Non-employee directors (b) |  | 155 |  |  | 180 |  |  | 464 |  |  | 439 |  |
Total stock option expense |  | $ | 560 |  |  | $ | 717 |  |  | $ | 1,284 |  |  | $ | 2,290 |  |
(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 June 30, 2025 and 2024, respectively. Unrecognized stock-based compensation expense is presented in the table below (in thousands):
|  | June 30, |
|  | 2025 |  | 2024 |
Unrecognized expense for DLH employees (a) |  | $ | 4,003 |  |  | $ | 6,119 |  |
Unrecognized expense for non-employee directors |  | 155 |  |  | 180 |  |
Total unrecognized expense |  | $ | 4,158 |  |  | $ | 6,299 |  |
(a) On a weighted average basis, the unrecognized expense as of June 30, 2025 is expected to be recognized within the next 2.29 years.
Summary of Performance Vesting Critera |
|  |  |  |  |  | Volatility |
|  |  |  |  |  | 50% |
Grant Date | Vesting Base | Vesting Criteria |  | (Years) |  | Fair Value |
December 20, 2024 | Revenue | Revenue increase at the end of the measurement period as compared to the year ended September 30, 2024 |  | 3 |  | $ | 0.65 |  |
December 20, 2024 | Stock 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, 2023 | Revenue | Revenue increase at the end of the measurement period as compared to the year ended September 30, 2023 |  | 3 |  | $ | 3.82 |  |
December 15, 2023 | Stock 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 June 30, 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 |  |  |
|  |  |  | Weighted |  | Average |  | (in thousands) |
|  | (in thousands) |  | Average |  | Remaining |  | Aggregate |
|  | Number of |  | Exercise |  | Contractual |  | Intrinsic |
|  | Shares |  | Price |  | Term |  | Value |
Options outstanding, September 30, 2024 |  | 1,237 |  |  | $ | 9.28 |  |  | 6.1 |  | $ | 1,313 |  |
Granted |  | — |  |  | — |  |  | — |  |  | — |  |
Exercised |  | — |  |  | — |  |  | — |  |  | — |  |
Cancelled |  | (250) |  |  | 8.85 |  |  | — |  |  | — |  |
Options outstanding, June 30, 2025 |  | 987 |  |  | $ | 9.77 |  |  | 5.8 |  | $ | 15 |  |
Vested and exercisable, June 30, 2025 |  | 927 |  |  | $ | 9.51 |  |  | 5.7 |  | $ | 15 |  |
Schedule of Option Shares Outstanding, Vested and Expected to Vest | Stock option shares outstanding, vested and unvested balance as follows (in thousands):
|  |  | June 30, |  | September 30, |  |
|  |  | 2025 |  | 2024 |  |  |  |
Vested and exercisable |  |  | 927 |  |  | 1,177 |  |  |  |  |
Unvested (a) |  |  | 60 |  |  | 60 |  |  |  |  |
Options outstanding |  |  | 987 |  |  | 1,237 |  |  |  |  |
(a) Certain awards vest upon satisfaction of certain performance criteria.

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