Stock-based Compensation

9 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

15. Stock-based Compensation

Stock-based Compensation Expense

Total stock-based compensation expense recognized were as follows:


	Three months ended June 30,				Nine months ended June 30,
(in thousands)	2026		2025		2026		2025
Cost of revenues	$	1,480	$	2,061	$	4,447	$	5,340
Research and development	1,700		921		5,436		7,188
Selling, general and administrative	14,996		13,075		40,502		35,848
Total stock-based compensation expense	$	18,176	$	16,057	$	50,385	$	48,376

An immaterial amount of stock-based compensation expense was capitalized to property and equipment related to capitalized software development costs for the three and nine months ended June 30, 2026 and June 30, 2025.

Restricted Stock Units

A summary of the Company’s restricted stock unit activity excluding the performance-based restricted stock units during the nine months ended June 30, 2026 was as follows:


(in thousands, except per share data)	Shares	Weighted average grant date fair value per share
Nonvested shares at September 30, 2025	1,882	$	37.21
Granted	1,647	32.92
Vested/Issued	(772)	34.95
Forfeited	(154)	37.23
Nonvested shares at June 30, 2026	2,603	$	35.17

As of June 30, 2026, there was $85.9 million of total unrecognized compensation cost related to these awards that is expected to be recognized over a weighted average period of 2.8 years. The total grant date fair value of the restricted stock units excluding performance-based restricted units awarded during the nine months ended June 30, 2026 was $54.2 million.

Performance-based Restricted Stock Units

During the nine months ended June 30, 2026, the Company granted additional performance-based restricted stock units to executives and employees that will vest upon achievement of multiple year revenues, gross margin, and profitability metrics as determined by the board of directors. Stock compensation expense for these awards is recorded over the vesting period based on the grant date fair value of the awards and probability of the achievement of specified performance targets. The grant date fair value is equal to the closing share price of the Company’s common stock on the date of grant. These awards vest from a minimum of 22 months to a maximum of 46 months service period following the grant date, provided that the recipient is a Company employee at the time of vesting and the performance targets applicable to each award are achieved. The percentage of these awards that vest will depend on the achievement of specified performance targets at the end of the performance period and can range from 0% to 150% of the number of units granted.

A summary of the Company’s performance-based restricted stock units activity during the nine months ended June 30, 2026 was as follows:


(in thousands, except per share data)	Shares	Weighted average grant date fair value per share
Nonvested shares at September 30, 2025	1,934	$	37.85
Granted	961	27.58
Vested/Issued	(419)	22.10
Forfeited	(82)	42.86
Nonvested shares at June 30, 2026	2,394	$	36.32

Stock-based compensation expense for performance-based restricted stock units is recorded over the requisite service period based on the grant date fair value and management's assessment of the probability that the specified performance conditions will be achieved. As of June 30, 2026, the unrecognized compensation costs related to these awards was $39.3 million based on the maximum achievement of the performance targets. The Company expects to recognize those costs over a weighted average period of 1.5 years. The total grant date fair value of performance-based restricted stock units awarded during the nine months ended June 30, 2026 was $26.5 million.

Options

A summary of the Company’s options including the performance-based stock options during the nine months ended June 30, 2026 was as follows:


(in thousands, except per share and contractual term data)	Shares	Weighted average exercise price per share		Weighted average remaining contractual term (years)	Aggregate intrinsic value
Outstanding at September 30, 2025	1,276	$	30.80	3.59	$	6,616
Forfeited	(7)	43.42		—	—
Exercised	(270)	21.75		—	10,767
Outstanding at June 30, 2026	999	$	33.15	2.91	$	70,282
Vested and exercisable at June 30, 2026	999	$	33.15	2.91	$	70,282

2018 Employee Stock Purchase Plan

The number of shares of the Company's common stock reserved for issuance under the 2018 Employee Stock Purchase Plan ("ESPP") as of June 30, 2026 was as follows:


(in thousands)						Shares available
As of September 30, 2025						716
Additional shares authorized						249
Shares issued during the period						(104)
As of June 30, 2026						861

During the three and nine months ended June 30, 2026, the Company recorded ESPP expenses of $0.5 million and $1.6 million, respectively. During the three and nine months ended June 30, 2025, the Company recorded ESPP expenses of $0.6 million and $1.7 million, respectively.