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Stock-Based Compensation and Equity Grants (Tables)

3 Months Ended

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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