"Law firms held the line on equity partner ranks in the first half of 2025 as revenue increased, helping profits per equity partner increase 13.7% from the same period last year, according to a six-month survey of mostly larger firms by Wells Fargo's Legal Specialty Group. The number of equity partners increased by only 0.7% in the first half of the year, compared to the same time last year."
"Nonequity partners are the fastest growing category of lawyers in firms, increasing more than 5% from the same period last year, according to the survey. Overall, lawyer head count was up 3.4%. Increases in standard billing rates, up 9.2% from the first six months of 2024, are the primary reason for revenue growth. On the downside, demand for legal services decreased 2.1% in the year's first half, well below the 3.2% growth forecasted by firms in January."
Profits per equity partner rose 13.7% in the first half of 2025. Equity partner ranks increased only 0.7% year-over-year while firm revenue rose 11.3% and net income grew 14.5%. Nonequity partners increased more than 5%, making them the fastest-growing lawyer category, and total lawyer headcount rose 3.4%. Standard billing rates climbed 9.2% from the first half of 2024, driving revenue growth despite a 2.1% decline in demand for legal services, below firms' earlier 3.2% growth forecast. Lawyer compensation increased 10.4% and overhead costs rose 8.6%. More than 130 firms participated, including top-grossing and Am Law Second Hundred firms.
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