Mid-market law firm benchmarking report 2025-2026
Against a backdrop of economic uncertainty, evolving client demands and continued technological change, mid‑market law firms delivered a more stable and resilient performance in 2025. Our mid‑market law firm benchmarking report 2025–2026 explores how mid-sized firms are adapting their strategies, restoring balance to their cost base and positioning themselves for sustainable growth.
Based on publicly available financial information, anonymised client data and insights from our latest law firm benchmarking survey, this year’s report focuses on the themes that matter most to law firm leaders: profitable growth, talent retention, cost control, cash discipline and strategic investment.
Firms are grouped into three revenue bands:
- £10 million-£25 million
- £25 million-£50 million
- £50 million-£100 million
Stronger growth, driven by productivity rather than headcount
Following a volatile period, revenue growth strengthened across the mid‑market. Average fee income rose by 10.3% in 2025, with nearly two‑thirds of firms reporting year‑on‑year growth. Larger firms continued to outperform, benefiting from scale, stronger pricing power and access to more complex mandates. Importantly, growth was driven less by rapid headcount expansion and more by improvements in utilisation and productivity.
A more balanced cost base and stabilising profitability
After a period of significant cost inflation, firms made progress in restoring balance to their cost structures. Staff costs remained the largest expense but fell to 38% of revenue, supported by slower recruitment and easing wage pressure. At the same time, firms continued to invest selectively – particularly in technology, cyber security and higher‑quality office space – to support resilience, culture and long‑term competitiveness.
Talent, cash and strategic priorities
Despite signs that the ‘war for talent’ is cooling, retention remains a key issue. Staff turnover increased to 27%, driven by continued movement at junior levels and mid-level PQE, alongside growing alternative career models at the senior end. Firms are increasingly recognising the importance of flexible working, targeted reward structures and clear progression pathways to protect capacity and control people costs.
Encouragingly, cash discipline improved across all revenue bands. Lock‑up days fell, balance sheets strengthened and net assets returned to pre‑2024 levels, enhancing financial resilience at a time when uncertainty remains.
Looking ahead
Technology and AI, cyber security, growth planning and alternative pricing models continue to shape strategic decision‑making across the sector. Firms that combine financial discipline with smart investment in people, systems and data will be best placed to sustain growth and protect profitability in the years ahead.
The full benchmarking report provides detailed analysis and comparative insights to help law firm leaders understand how their firm performed relative to peers, and where focus and action may be needed.
Mid-market law firm benchmarking report 2025-2026
How we support law firms
Moore Kingston Smith works closely with law firms across the mid-market, providing bespoke benchmarking, partner remuneration and capital structuring advice, strategic growth support, technology and compliance risk advisory, and financial planning for partners.
We have access to a wide range of data and can provide bespoke, tailored benchmarking reports for your individual law firm and expand on further interesting KPIs. If this would be of interest to you, please contact us.
