The Texas law firm sector underperformed the broader US market in terms of revenue and profit growth during 2024, as indicated by a year-end report from the Citi Global Wealth at Work Law Firm Group. The report highlighted that the downturn was largely due to an atypical performance in 2023 when Texas firms saw significant contingency fee revenues, which distorted year-over-year comparisons. Despite this, the region managed to control expense growth and increase its number of lawyers, setting a solid foundation to leverage strong demand in 2025 industry sectors.
According to Michael McKenney, senior client advisor and managing director at Citi Law Firm Group, the unusual financial performance of 2023 contributed to distorted comparisons with 2024. This anomaly underscores the potential for steadier growth moving into 2025. For further details, explore the original report on Texas Lawyer.