Stock-Based Compensation (Tables)

6 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

The following table shows stock-based compensation expense that is included in the consolidated results of operations (in thousands):

	Three months ended March 31,				Six months ended March 31,
	2023		2022		2023		2022
Cost of sales	$	161	$	131	$	303	$	217
Sales and marketing	1,072		678		1,923		1,168
Research and development	469		317		917		639
General and administrative	1,763		1,116		3,190		2,235
Stock-based compensation before income taxes	3,465		2,242		6,333		4,259
Income tax benefit	(737)		(470)		(1,336)		(900)
Stock-based compensation after income taxes	$	2,728	$	1,772	$	4,997	$	3,359

Schedule of Stock Option Activity

The following table summarizes our stock option activity (in thousands, except per common share amounts):

	Options Outstanding	Weighted Average Exercise Price	Weighted Average Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance on September 30, 2022	1,790	$17.29
Granted	66	40.67
Exercised	(114)	15.24
Forfeited / Canceled	(34)	20.69
Balance on March 31, 2023	1,708	$18.23	4.5	$	15,189
Exercisable on March 31, 2023	1,012	$15.60	3.6	$	11,090

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on our closing stock price of $33.68 as of March 31, 2023, which would have been received by the option holders had all option holders exercised their options as of that date.

14. STOCK-BASED COMPENSATION (CONTINUED)

The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. The total intrinsic value of all options exercised during the six months ended March 31, 2023 and 2022 was $2.6 million and $13.9 million, respectively.

Schedule of Valuation Assumptions

The following table shows the weighted average fair value, which was determined based upon the fair value of each option on the grant date utilizing the Black-Scholes option-pricing model and the related assumptions:

	Six months ended March 31,
	2023	2022
Weighted average per option grant date fair value	$19.92	$10.23
Assumptions used for option grants:
Risk free interest rate minimum	3.77% - 3.98%	1.25% - 1.82%
Expected term	6.00 years	6.00 years
Expected volatility minimum	46%	45% - 46%
Weighted average volatility	46%	46%
Expected dividend yield	—	—

Schedule of Nonvested Restricted Stock Units

The following table presents a summary of our non-vested restricted stock units and performance stock units as of March 31, 2023 and changes during the six months then ended (in thousands, except per common share amounts):

	RSUs			PSUs
	Number of Awards	Weighted Average Grant Date Fair Value		Number of Awards	Weighted Average Grant Date Fair Value
Nonvested on September 30, 2022	742	$	19.14	27	$	22.69
Granted	440	40.41		113	40.66
Vested	(258)	17.42		(5)	22.93
Canceled	(32)	26.51		—	—
Nonvested on March 31, 2023	892	$	29.86	135	$	37.72