THE CHEETAH BRIEF – 26th Edition
Despite rising expenses and a continued slowdown in transactional work, law firms are seeing strong financial performance in 2025, according to Citi’s latest survey. Demand grew 1.1% industrywide in the first half of the year, with revenue up 10.9% and inventory up more than 12%, leaving firms well-positioned for the second half. Growth has come from areas like litigation, bankruptcy, restructuring, and private credit, supported by higher billing rates. However, expenses rose 8.5% due to investments in talent and technology, and collections cycles lengthened amid client cash management strategies and complex e-billing. Even so, Citi reports firms are optimistic, projecting stronger demand and revenue growth by year-end.
MARKET MOVEMENTS
Weil adds new Global Chair of ITC and Cross-Border IP Enforcement, Eric Namrow, after recent IP partner laterals.
Seyfarth Shaw adds NYC real estate partner, Varuna Bhattacharyya, as law firms beef up RE offerings.
Gibson Dunn hires Latham partner, Najla Al-Gadi, to strengthen Saudi capital markets presence.
King & Spalding adds IP partners, Andrew Ong and Amadou Diaw, on both coasts from Goodwin.
FIRM SPOTLIGHT - FRIED, FRANK, HARRIS, SHRIVER & JACOBSON, LLP
Fried Frank, an international law firm with 800 lawyers across New York, London, Frankfurt, Brussels, and Washington, DC, advises leading corporations, investment funds, and financial institutions on complex legal and business matters. Founded in the late 19th century by German-Jewish lawyers, the firm grew from its New York roots to Washington, DC, with influential figures like Walter J. Fried, a real estate pioneer, and Hans J. Frank, an international tax expert who fled Nazi Germany. Known for civic-minded partners such as Sam Harris, a Nuremberg prosecutor, and Sargent Shriver, founder of the Peace Corps, the firm has built a reputation for excellence. Today, it is especially recognized for its top-ranked real estate practice and strong M&A and private equity work, while also prioritizing employee wellness through counseling, fitness reimbursements, and holistic health programs.
INDUSTRY INSIGHTS
Nearly 50% of clients would prefer to work with law firms that use AI, believing it helps offer better, more efficient legal services. More than 79% of legal professionals currently use AI.
55.9% of Am Law 200 firms use a flexible hybrid work policy, while another 39.5% manage attendance with a fixed hybrid work policy.
Some of the highest-demand fields are corporate law, intellectual property law, healthcare law, and technology law. Additionally, cybersecurity and data privacy lawyers are increasingly sought after due to rising digital threats and regulatory changes. Immigration and labor law also see high demand, especially in regions with evolving workforce policies.
Law firms posted record hourly rate increases of 7.4% in the second quarter, but their realization rates dropped. Clients are also moving more work to lower cost firms as shown by a .6% contraction in demand for Am Law 100 firms, while midsize firms saw gains of 3.5%.
INDUSTRY NEWS
Top Law Firms Losing Potential Revenue to Billing and Collection Inefficiencies
Law firms across the Am Law 200, including some in the Am Law 50, are losing 15–25% of potential revenue due to inefficient billing and collections practices such as poor timekeeping, self-imposed discounts, and late client payments. These problems are compounded by longer collections cycles, increasingly complex e-billing systems, and outdated reliance on partners rather than professional collections teams. Many firms also fail to hold partners accountable for delays, often settling for less than full payment at year’s end. To combat revenue leakage, some firms are becoming more selective with clients, tightening billing procedures, and establishing dedicated collections departments. Still, experts emphasize there is no one-size-fits-all solution, and the legal industry has considerable room to improve profitability through stronger financial discipline.
DLA Piper Boosts Office Mandate for Corporate Lawyers
DLA Piper has raised its in-office attendance requirement from three to four days a week for U.S. corporate attorneys, making it one of the few Big Law firms to impose stricter mandates on a specific practice group. The firm, which ranked No. 3 on the Am Law 100 with over $4.2 billion in 2024 revenue, says the move is intended to boost collaboration, mentorship, and professional growth, and attendance will now factor into associate evaluations. While it’s unclear if other groups will be affected, many peer firms — including Davis Polk, Latham, Paul Weiss, and Skadden — already require four days in-office, with Sullivan & Cromwell mandating five.
