The legal industry had an “unexpectedly prosperous” second quarter, as an uptick in countercyclical practices like litigation offset a slowdown in M&A demand — and smaller firms gained ground on the Am Law 100 — according to a new report by Thomson Reuters.
The Law Firm Financial Index’s quarterly update, dubbed “The Eye of the Hurricane,” states that the average demand increased 1.6% for law firms, and worked rates were up 7.4%.
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But, as the report states, the “picture becomes even more complicated when we look at each law firm segment.”
The Am Law 100 saw a 0.6% decline in demand growth, with the downturn most notable in their corporate practices. Meanwhile, the Second Hundred and midsize firms “greatly accelerated their demand performance across most practices,” according to the report.
Thomson Reuters notes that these metrics indicate a “potential shift in client preferences towards more specialized or cost-effective legal solutions.”
Q2 2025 LFFI: The Eye of the Hurricane [Thomson Reuters]
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Jeremy Barker is the director of content marketing for Breaking Media. Feel free to email him with questions or comments and to connect on LinkedIn.