The top 200 law firms in the US saw revenue rise 12.6% in 2025, matching the pace of growth seen over the previous 12 months, according to a Wells Fargo report.
The Wells Fargo Legal Speciality Group year-end survey showed that growth was led by Am Law top 50 firms, rising 13.3% compared to 11.9% for second fifty firms and 8.9% for second hundred firms.
That overall performance was driven by continued billing rate growth, with average standard rates growing 9.6% in 2025 compared to 9.1% in 2024. That rate growth was also much higher for Am Law top 50 firms, rising 10.4% compared to 7.6% for second fifty firms and 7.3% for second hundred firms.
Demand, as measured by billable hours logged, also contributed to 2025’s revenue growth, increasing 3.5%, more or less in line with 2024’s level (3.6%). Demand growth was only marginally higher at top 50 firms (3.6%), compared to 3.7% for second fifty firms and 3% for second hundred firms.
Wells Fargo said that demand was robust across many practice areas, particularly megacap M&A, debt capital markets, investment funds, litigation, employment, infrastructure, trade and real estate. Mid-market M&A also made a recovery in the fourth quarter, having lagged for much of the year.
At the same time, lawyer headcount rose 3.6%, though productivity was flat overall at 1,589 hours per lawyer, with a slight decrease in productivity for top 50 firms.
Net income grew 15.5%, a decline on 2024’s pace of 17.2%, in part due to slower collections and rising expenses. Profit per equity partner growth also slowed to 14.8% from 16.9% in 2024.
Inventory – unbilled work – grew 15.9% overall, led by top 50 firms which saw a 17.8% rise. That was notably higher than second fifty firms (10%) and second hundred firms (12.7%). Because inventory rose faster than revenue, inventory collection cycles – the number of days it takes to collect fees once work is completed – slowed by 3.5 days overall and five days for top 50 firms.
Wells Fargo said: “We were not surprised to see a slowdown in the collections cycle given the disproportionate buildup of unbilled inventory at the nine-month mark along with the accelerating pace of deal-related work in the fourth quarter, awaiting closing. What was surprising was the faster collections cycle (two days) for the second fifty, with firm-specific factors accounting for this aberration.”
Expenses rose 10.2%, up from a 9.1% rise in 2024. Wells Fargo said this was driven by lawyer growth and higher leverage, especially from more expensive non-equity partners and technology-related initiatives. Top 50 firms saw the fastest pace of expense growth, rising 10.9%.
The survey is based on responses from more than 130 law firms in the Am Law 200.
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