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Stock-Based Compensation and Equity Grants (Tables)
 9 Months Ended
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 EndedNine Months Ended
June 30,June 30,
2025202420252024
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,
 20252024
Unrecognized expense for DLH employees (a)$4,003 $6,119 
Unrecognized expense for non-employee directors155 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, 2024RevenueRevenue increase at the end of the measurement period as compared to the year ended September 30, 20243$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 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
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(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,
20252024
Vested and exercisable927 1,177 
Unvested (a)60 60 
Options outstanding987 1,237 
(a) Certain awards vest upon satisfaction of certain performance criteria.