Billable hours at larger law firms ‘did not quite live up to expectations’ in first quarter
Law Firms
Billable hours at larger law firms ‘did not quite live up to expectations’ in first quarter
Revenue at larger law firms increased by 11.3% in the first quarter of 2025, compared to the same period last year, according to a survey by Wells Fargo’s Legal Specialty Group. (Image from Shutterstock)
Revenue at larger law firms increased by 11.3% in the first quarter of 2025, compared to the same period last year, according to a survey by Wells Fargo’s Legal Specialty Group.
The revenue growth is largely due to an increase in the standard billing rate for lawyers of 9.5% in the first quarter, according to the survey.
“Buoyed by persistent rate growth, law firms continued to see revenues increase in early 2025,” said Matt Anderson, who leads Wells Fargo’s Legal Specialty Group, in a press release.
Demand, measured by lawyer billable hours, had a more modest increase of 1.7%.
First quarter demand “did not quite live up to expectations,” Anderson said. “Yet early indications suggest that law firms remain cautiously optimistic for a successful 2025.”
Eating into the bottom line was a 9.9% increase in expenses, likely fueled by a 3.4% increase in lawyer head count and a 4.3% increase in professional staff.
The numbers essentially mean that attorney hiring surpassed demand for their work, said Les Starck, a senior consultant with Wells Fargo’s Legal Specialty Group, in an interview with Law.com.
More than 100 firms responded to the survey of the nation’s 200 top-grossing firms, including 67 of the 100 top-grossing firms and 38 of the Second Hundred firms.
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