US surge drives Freshfields to £2.25bn as costs continue to rise

Freshfields posted a year of steady top-line growth last year, with revenue climbing to £2.25 billion in 2024/25, according to its latest accounts - which also show that rising costs continue to bite.

The figures, which cover the year to 30 April 2025, mark a 6% increase on the £2.12 billion the firm reported the year before. But the latest accounts also show a sharp rise in employment costs, up 10% to £1.2 billion, reflecting the inflationary pressures facing law firms of all shapes.

US momentum continues

The standout in the numbers is Freshfields’ US business, where revenue jumped 20% year-on-year to £473 million. The US now accounts for 21% of global revenue, up from just 11% five years ago, underlining the scale and pace of the firm’s transatlantic push.

The growth follows several years of heavy lateral hiring and investment in the US, a strategy that is now starting to show more clearly in the firm’s financials and is likely to feature even more prominently in next year’s numbers given the momentum built over the past 12 months.

Costs up, profits per partner harder to read

Profit available to be divided between the firm’s partners fell to £648 million from £665 million. Freshfields has not published a profit per equity partner figure since 2023 when it said it would stop releasing headline financial results beyond its statutory accounts.

In the Magic Circle pecking order, the revenue numbers leave Freshfields behind Clifford Chance, which reported £2.4 billion for the year, and Linklaters at £2.32 billion, with both posting stronger growth rates at or near 10%. A&O Shearman, meanwhile, posted £2.9 billion in its first full set of results following its merger.