Law Firms
US law firms see overall profits rise in 2025, but mergers and acquisitions decline
U.S. law firms saw profits surge in the fourth quarter of 2025, increasing 14.1%, according to the Thomson Reuters Institute’s Law Firm Financial Index released Tuesday. (Image from Shutterstock)
U.S. law firms saw profits surge in the fourth quarter of 2025, increasing 14.1%, according to the Thomson Reuters Institute’s Law Firm Financial Index released Tuesday.
The increase was the highest since the COVID-19 pandemic boom of 2021 and early 2022. Analysts called 2025 a “spectacular year” for the legal industry, according to a story by Investing.com.
But there is trouble on the horizon. Demand for mergers and acquisitions work decreased significantly in the fourth quarter, according to Investing.com.
In addition, bankruptcy demand increased substantially in December, potentially indicating “an upcoming decline in the U.S. economy,” according to Investing.com.
The Law Firm Financial Index analyzes quarterly financial metrics from 195 large and midsize U.S. firms, examining demand, productivity, billing rates and expenses, according to Investing.com.
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