Nearly 90% of firms report increased write-offs, discounts, and write-downs in the past 12 months.
Half cite aged WIP as the primary reason for cash-flow pressure, and 90% report year-over-year increases in lockup.
Nearly two-thirds report a decrease in billable hours, but 99% plan to increase billable-hour targets.
Only 46% of firms use advanced business intelligence systems, a 2% increase from 2025.
96% of firms raised rates in the past 12 months, and most plan to again in 2026. However, 89% reported year-over-year increases in write-offs, with 88% expecting further increases.
Price increases are being eroded by write-offs, discounting, and aged WIP. Headline revenue growth is out of step with realized profit. Clients are also pushing back, demanding clearer evidence of value to justify rate hikes.
26% of firms now cite cash-flow predictability as their top financial concern, surpassing profitability in 2025.
Revenue may look strong, but the conversion of work into cash is slowing. Aged WIP, write-downs, and write-offs are growing issues that increase the need for real-time visibility into matter profitability before profit is put at risk.
Only 32% of firms offer targeted development programs to help lawyers build confidence in commercial conversations.
To support cross-selling & business development initiatives, firms can strengthen sustainable profitability and enhance client satisfaction by empowering lawyers to build deeper, longer-term relationships.
This report's message is clear: our industry is at a crossroads. Relying solely on billable hours and rate increases is no longer enough to ensure sustainable growth.
Attorneys are advancing to partnership without the commercial acumen or operational discipline required to effectively drive profitability.
