LEAP Legal Software has released the Profitability in Law: Global Report 2026, a quantitative study designed to examine the perceptions and priorities on profitability of legal practices across different markets. The report surveyed over 700 legal professionals across Australia, New Zealand, United States, Canada, United Kingdom and Ireland.
The report reveals the industry’s strong focus on profitability when making business decisions. At the same time, firms favour a measured path, using both growth and cost efficiency levers to boost profits. A significant portion of AU/NZ firms stand out for their growth-oriented stance, showing a preference for revenue expansion over cost reduction compared to their peers in other markets.
Key stats you need to know
- 7 in 10 legal practices see profitability as the top or among the top drivers of business decisions.
- 45% of firms opt for a balanced approach between increasing revenue and cutting costs to boost profits.
- Regional nuances are apparent, with more AU/NZ firms more keen on growing market share compared to firms in the UK/IE and US/CA markets.
Profitability remains central to decision-making in legal firms
- Globally, 18% of legal firms place profitability as their number one priority, making it the single most important consideration.
- More than half (53%) consider profitability as a high priority.
- Firms in the US/CA market are 1.5x more likely to rank profitability as a top priority compared to firms in AU/NZ and UK/IE markets.
More than 1 in 2 (53%) legal firms across AU/NZ, US/CA, and UK/IE markets rank profitability as a high priority when making business decisions. A further 18% say that it is their number one consideration, highlighting how profitability is central in shaping the strategic direction of legal firms.
Profitability is a priority across all three markets, but US/CA-based firms are more likely to rank it as their top concern (23%), compared to 15% in AU/NZ and 16% in UK/IE, suggesting a more profit-driven stance in North America.
“Profitability remains the anchor of decision-making for legal firms globally,” said Michael Johnson, Director at Agile Market Intelligence.
“With 53% ranking it as a high priority, and nearly one in five placing it above all else, financial performance continues to shape how firms set direction and allocate resources.”
Firms favour a balanced path toward profitability; AU/NZ-based firms skews towards growth over cost control
- Nearly half (45%) of legal practices say that both revenue and cost need equal attention to boost profits.
- Almost 1 in 3 (32%) prefer generating more revenue while 22% prefer reducing expenses.
- Firms in the AU/NZ market prefer revenue growth (41%) compared to cost-cutting strategies (12%), decidedly different from UK/IE and US/CA markets where preference is almost equal.
45% of firms believe improving profitability requires equal attention to both revenue generation and cost management. A further 32% prioritise growing revenue, while 22% focus primarily on reducing expenses.
In AU/NZ, firms are markedly growth-oriented, with 41% prioritising revenue generation compared to just 12% focusing on cost reduction. In contrast, US/CA-based firms demonstrate a more balanced stance, with 48% favouring equal attention, nearly double the proportion prioritising either profit lever.
“Firms broadly recognise that profitability requires balancing revenue and cost,” said Michael Johnson.
“However, the nuance lies in the regions with a significant number of AU/NZ firms leaning toward revenue growth, while other markets take a more evenly weighted approach.”
About the research
LEAP Legal Software’s Profitability in Law: Global Report 2026 is based on quantitative research conducted by Agile Market Intelligence, reflecting the sentiments of 700 legal professionals across Australia, New Zealand, the United Kingdom, Ireland, the United States, and Canada, and collected between 10 and 28 November 2025. The report outlines how strategy, people, technology and AI drive profitability in legal practice, with data-driven recommendations on how to close the gap between profitability potential and execution.
You can download the report here.
