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Stock-Based Compensation and Equity Grants (Tables) | 3 Months Ended
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Dec. 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 Ended |
|  |  | December 31, |
|  |  |  |  | 2025 |  | 2024 |
DLH employees (a) |  |  |  |  | $ | 550 |  |  | $ | 13 |  |
Non-employee directors (b) |  |  |  |  | 97 |  |  | 180 |  |
Total stock compensation expense |  |  |  |  | $ | 647 |  |  | $ | 193 |  |
(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 959,582 and 708,325 shares at December 31, 2025 and 2024, respectively. During the three months ended December 31, 2025 and 2024, the Company granted 427,046 and 312,906 shares of restricted stock units, respectively. During the three months ended December 31, 2025, 380,338 shares of the RSUs granted have performance-based vesting criteria and the remaining 46,708 shares have service-based vesting criteria. During the three months ended December 31, 2024, 156,453 shares of the RSUs granted have performance-based vesting criteria and the remaining 156,453 shares have service-based vesting criteria. Unrecognized stock-based compensation expense is presented in the table below (in thousands):
|  | December 31, |
|  | 2025 |  | 2024 |
Unrecognized expense for DLH employees (a) |  | 3,783 |  |  | 5,302 |  |
Unrecognized expense for non-employee directors |  | 290 |  |  | 539 |  |
Total unrecognized expense |  | $ | 4,073 |  |  | $ | 5,841 |  |
(a) On a weighted average basis, the unrecognized expense as of December 31, 2025 is expected to be recognized within the next 2.84 years.
Summary of Performance Vesting Criteria and Restricted Stock Unit Activity |
|  |  |  |  |  | Volatility |
|  |  |  |  |  | 50% |
Grant Date | Performance Vesting Base | Performance Vesting Criteria |  | (Years) |  | Fair Value |
December 17, 2025 | Revenue | Revenue increase at the end of the performance period as compared to the year ended September 30, 2028 |  | 3 |  | $ | 1.38 |  |
December 17, 2025 | Stock price | Stock price is at least $12.62 per share average for the 30 days prior to the end of the performance period |  | 3 |  | $ | 1.74 |  |
December 20, 2024 | Revenue | Revenue increase at the end of the performance period as compared to the year ended September 30, 2027 |  | 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 |  |
Notes: |  |  |  |  |  |  |
Results based on 100,000 simulations |  |  |  |  |
Restricted stock unit activity for the three months ended December 31, 2025
|  | Performance Vesting |  | Service Vesting |  | Total
Outstanding, September 30, 2025 |  | 232,461 |  |  | 232,460 |  |  | 464,921 |
Granted |  | 380,338 |  |  | 114,323 |  |  | 494,661 |
Vested |  | — |  |  | — |  |  | — |
Cancelled |  | — |  |  | — |  |  | — |
Outstanding, December 31, 2025 |  | 612,799 |  |  | 346,783 |  |  | 959,582 |
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, 2025 |  | 937 |  |  | $ | 9.65 |  |  | 5.4 |  | $ | 10 |  |
Granted |  | 250 |  |  | — |  |  | — |  |  | — |  |
Exercised |  | — |  |  | — |  |  | — |  |  | — |  |
Cancelled |  | — |  |  | — |  |  | — |  |  | — |  |
Options outstanding, December 31, 2025 |  | 1,187 |  |  | $ | 8.85 |  |  | 6.30 |  | $ | 10 |  |
Vested and exercisable, December 31, 2025 |  | 902 |  |  | $ | 9.59 |  |  | 5.30 |  | $ | 10 |  |
Schedule of Option Shares Outstanding, Vested and Expected to Vest | Stock option shares outstanding, vested and unvested balance as follows (in thousands):
|  |  | December 31, |  | September 30, |  |
|  |  | 2025 |  | 2025 |  |  |  |
Vested and exercisable |  |  | 902 |  |  | 902 |  |  |  |  |
Unvested (a) |  |  | 285 |  |  | 35 |  |  |  |  |
Options outstanding |  |  | 1,187 |  |  | 937 |  |  |  |  |
(a) Certain awards vest upon satisfaction of certain performance criteria.

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