Law Firms
Equity partner profits jump 13.7% in first half of 2025 amid rising law firm revenue
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. (Image from Shutterstock)
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. At the same time, firm revenue increased 11.3% and net income increased 14.5%, Wells Fargo said Tuesday in a summary of the findings.
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.
The increase in nonequity partners contributed to lawyer compensation growth of 10.4%. Overhead costs, which include professional staff salaries and general expenses, were up 8.6%.
More than 130 firms took part in the survey, including 67 of the nation’s 100 top-grossing firms and 46 firms with gross revenues putting them in the Am Law Second Hundred.
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