'Very strong performance' reported for law firms in 2024, with revenue increasing 12.5%
Growth in billing rates contributed to a 12.5% increase in law firm revenue in 2024, up from 6% in 2023, according to a year-end survey. (Image from Shutterstock)
Growth in billing rates contributed to a 12.5% increase in law firm revenue in 2024, up from 6% in 2023, according to a year-end survey by Wells Fargo’s Legal Specialty Group.
The 2024 increase was topped only by a 14% increase in revenue reported in 2021.
“The law firm industry experienced very strong performance in 2024,” Wells Fargo reported in a media summary.
More than 130 firms, most of them among the nation’s 200 top-grossing firms, participated in the survey.
Other survey findings for 2024 included:
• Standard billing rates increased 9.1%, up from an 8.3% increase in 2023.
• Average profits per equity partner increased 16.9% as firms kept “tight control” over the size of equity partner ranks, which increased by only 0.3%.
• Demand, measured by billable hours, increased 3.5% for the year, up from 0.7% in 2023.
• Total expenses increased 9%, up from 6% in 2023. The number likely reflected higher associate bonuses and more year-end expense prepayments.
Firms among the Am Law 50, representing the nation’s 50 highest-grossing firms, did better than the rest. They had growth of 13.9% for revenue, 10% for billing rates, 3.9% for demand and 18.9% for profits per equity partner.
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